|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Market
Value
|
|
|
|
|
|
COMMON STOCKS (Continued)
|
|
|
|
|
|
Real Estate Investment Trusts (Continued)
|
|
|
155,000
|
|
|
Weyerhaeuser Co.
|
|
$
|
3,268,400
|
|
|
$
|
4,312,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,559,036
|
|
|
|
4,538,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail 2.6%
|
|
|
|
|
|
|
|
|
|
110,000
|
|
|
Aarons Inc.
|
|
|
583,437
|
|
|
|
3,110,800
|
|
|
140,000
|
|
|
AutoNation Inc.
|
|
|
1,163,144
|
|
|
|
5,558,000
|
|
|
106,000
|
|
|
Barnes & Noble Inc.
|
|
|
1,295,447
|
|
|
|
1,599,540
|
|
|
20,000
|
|
|
Coldwater Creek Inc.
|
|
|
90,612
|
|
|
|
96,200
|
|
|
111,000
|
|
|
Costco Wholesale Corp.
|
|
|
5,655,834
|
|
|
|
10,963,470
|
|
|
380,000
|
|
|
CVS Caremark Corp.
|
|
|
12,801,137
|
|
|
|
18,373,000
|
|
|
102,000
|
|
|
HSN Inc.
|
|
|
2,067,176
|
|
|
|
5,618,160
|
|
|
50,000
|
|
|
Krispy Kreme Doughnuts Inc.
|
|
|
360,134
|
|
|
|
469,000
|
|
|
2,400,000
|
|
|
Lianhua Supermarket Holdings Ltd., Cl. H
|
|
|
4,406,205
|
|
|
|
2,297,554
|
|
|
200,000
|
|
|
Macys Inc.
|
|
|
3,263,628
|
|
|
|
7,804,000
|
|
|
40,000
|
|
|
Safeway Inc.
|
|
|
853,004
|
|
|
|
723,600
|
|
|
58,000
|
|
|
The Cheesecake Factory Inc.
|
|
|
1,715,610
|
|
|
|
1,897,760
|
|
|
39,000
|
|
|
The Home Depot Inc.
|
|
|
1,211,856
|
|
|
|
2,412,150
|
|
|
70,000
|
|
|
The Kroger Co.
|
|
|
423,375
|
|
|
|
1,821,400
|
|
|
30,000
|
|
|
Walgreen Co.
|
|
|
982,036
|
|
|
|
1,110,300
|
|
|
44,000
|
|
|
Wal-Mart Stores Inc.
|
|
|
2,225,443
|
|
|
|
3,002,120
|
|
|
58,000
|
|
|
Whole Foods Market Inc.
|
|
|
1,368,623
|
|
|
|
5,297,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,466,701
|
|
|
|
72,154,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Chemicals 1.2%
|
|
|
39,000
|
|
|
Airgas Inc.
|
|
|
2,546,127
|
|
|
|
3,560,310
|
|
|
10,000
|
|
|
Ashland Inc.
|
|
|
167,400
|
|
|
|
804,100
|
|
|
75,184
|
|
|
Chemtura Corp.
|
|
|
1,055,745
|
|
|
|
1,598,412
|
|
|
480,000
|
|
|
Ferro Corp.
|
|
|
4,426,454
|
|
|
|
2,006,400
|
|
|
110,000
|
|
|
General Chemical Group Inc. .
|
|
|
365,584
|
|
|
|
2,970
|
|
|
68,000
|
|
|
H.B. Fuller Co.
|
|
|
503,681
|
|
|
|
2,367,760
|
|
|
110,000
|
|
|
International Flavors & Fragrances Inc.
|
|
|
4,927,855
|
|
|
|
7,319,400
|
|
|
40,000
|
|
|
Material Sciences Corp.
|
|
|
266,497
|
|
|
|
361,200
|
|
|
1,800
|
|
|
NewMarket Corp.
|
|
|
191,887
|
|
|
|
471,960
|
|
|
400,000
|
|
|
OMNOVA Solutions Inc.
|
|
|
1,095,242
|
|
|
|
2,804,000
|
|
|
8,500
|
|
|
Praxair Inc.
|
|
|
864,326
|
|
|
|
930,325
|
|
|
257,000
|
|
|
Sensient Technologies Corp.
|
|
|
4,897,260
|
|
|
|
9,138,920
|
|
|
3,000
|
|
|
SGL Carbon SE
|
|
|
124,442
|
|
|
|
118,994
|
|
|
65,000
|
|
|
Zep Inc.
|
|
|
735,432
|
|
|
|
938,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,167,932
|
|
|
|
32,423,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications 2.6%
|
|
|
85,000
|
|
|
AT&T Inc.
|
|
|
2,025,702
|
|
|
|
2,865,350
|
|
|
40,000
|
|
|
CenturyLink Inc.
|
|
|
699,241
|
|
|
|
1,564,804
|
|
|
1,360,000
|
|
|
Cincinnati Bell Inc.
|
|
|
5,148,790
|
|
|
|
7,452,800
|
|
|
347,000
|
|
|
Deutsche Telekom AG, ADR
|
|
|
5,752,093
|
|
|
|
3,942,614
|
|
|
16,000
|
|
|
France Telecom SA, ADR
|
|
|
226,838
|
|
|
|
176,800
|
|
|
30,000
|
|
|
Hellenic Telecommunications Organization SA
|
|
|
435,110
|
|
|
|
201,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Market
Value
|
|
|
25,000
|
|
|
Hellenic Telecommunications Organization SA, ADR
|
|
$
|
111,368
|
|
|
$
|
85,700
|
|
|
9,000
|
|
|
Level 3 Communications Inc.
|
|
|
192,407
|
|
|
|
207,990
|
|
|
64,500
|
|
|
Loral Space & Communi cations Inc.
|
|
|
2,342,437
|
|
|
|
3,525,570
|
|
|
118,000
|
|
|
NII Holdings Inc.
|
|
|
2,296,594
|
|
|
|
841,340
|
|
|
195,015
|
|
|
Oi SA, ADR
|
|
|
1,403,677
|
|
|
|
782,010
|
|
|
215,000
|
|
|
Portugal Telecom SGPS SA
|
|
|
2,121,375
|
|
|
|
1,063,932
|
|
|
670,000
|
|
|
Sprint Nextel Corp.
|
|
|
2,265,056
|
|
|
|
3,798,900
|
|
|
3,100,000
|
|
|
Telecom Italia SpA
|
|
|
1,732,489
|
|
|
|
2,794,747
|
|
|
180,000
|
|
|
Telecom Italia SpA, ADR
|
|
|
1,254,946
|
|
|
|
1,629,000
|
|
|
46,500
|
|
|
Telefonica Brasil SA, ADR
|
|
|
911,624
|
|
|
|
1,118,790
|
|
|
285,001
|
|
|
Telefonica SA, ADR
|
|
|
3,393,694
|
|
|
|
3,844,664
|
|
|
1,122,610
|
|
|
Telephone & Data Systems Inc.
|
|
|
22,139,780
|
|
|
|
24,854,585
|
|
|
94,000
|
|
|
tw telecom inc.
|
|
|
1,694,127
|
|
|
|
2,394,180
|
|
|
200,000
|
|
|
Verizon Communications Inc.
|
|
|
5,623,085
|
|
|
|
8,654,000
|
|
|
50,000
|
|
|
VimpelCom Ltd., ADR
|
|
|
701,510
|
|
|
|
524,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,471,943
|
|
|
|
72,324,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation 0.6%
|
|
|
330,000
|
|
|
GATX Corp.
|
|
|
8,374,749
|
|
|
|
14,289,000
|
|
|
4,000
|
|
|
Kansas City Southern
|
|
|
7,317
|
|
|
|
333,920
|
|
|
46,000
|
|
|
Providence and Worcester Railroad Co.
|
|
|
710,155
|
|
|
|
639,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,092,221
|
|
|
|
15,262,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Communications 0.8%
|
|
|
125,000
|
|
|
America Movil SAB de CV, Cl. L, ADR
|
|
|
381,970
|
|
|
|
2,892,500
|
|
|
54,000
|
|
|
Millicom International Cellular SA, SDR
|
|
|
4,942,679
|
|
|
|
4,670,813
|
|
|
2,500
|
|
|
NTT DoCoMo Inc.
|
|
|
3,573,391
|
|
|
|
3,578,231
|
|
|
21,857
|
|
|
Tim Participacoes SA, ADR
|
|
|
157,720
|
|
|
|
433,206
|
|
|
190,000
|
|
|
United States Cellular Corp.
|
|
|
9,055,037
|
|
|
|
6,695,600
|
|
|
110,000
|
|
|
Vodafone Group plc, ADR
|
|
|
2,839,143
|
|
|
|
2,770,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,949,940
|
|
|
|
21,041,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
1,322,099,160
|
|
|
|
2,780,464,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED STOCKS 0.0%
|
|
|
|
|
|
Health Care 0.0%
|
|
|
31,580
|
|
|
The Phoenix Companies Inc., 7.450% Pfd
|
|
|
674,937
|
|
|
|
678,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIGHTS 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care 0.0%
|
|
|
|
|
|
|
|
|
|
20,000
|
|
|
American Medical Alert Corp.(a)
|
|
|
0
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes
to financial statements.
12
The Gabelli Asset Fund
Schedule of Investments (Continued) December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Cost
|
|
|
Market
Value
|
|
|
|
|
|
WARRANTS 0.0%
|
|
|
|
|
|
Automotive: Parts and Accessories 0.0%
|
|
|
14,727
|
|
|
Federal-Mogul Corp., expire 12/27/14
|
|
$
|
411,720
|
|
|
$
|
339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities 0.0%
|
|
|
|
|
|
|
300,000
|
|
|
Kinder Morgan Inc., expire 05/25/17
|
|
|
343,263
|
|
|
|
1,134,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels and Gaming 0.0%
|
|
|
|
|
|
|
200,000
|
|
|
Indian Hotels Co. Ltd., expire 06/16/14(b)
|
|
|
298,980
|
|
|
|
230,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL WARRANTS
|
|
|
1,053,963
|
|
|
|
1,364,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS 100.2%
|
|
$
|
1,323,828,060
|
|
|
|
2,782,507,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets and Liabilities (Net) (0.2)%
|
|
|
|
|
|
|
(6,514,436
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS 100.0%
|
|
|
$
|
2,775,993,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about
the company and reviewing the valuation of comparable securities and other factors on a regular basis. At December 31, 2012, the market value of fair valued securities amounted to $2,264 or 0.00% of total investments.
|
(b)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31, 2012, the market value of Rule 144A securities amounted to $6,222,500 or 0.22% of net assets.
|
(c)
|
Security purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of
the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At December 31, 2012, the
market value of the Regulation S security amounted to $5,992,500 or 0.22% of net assets, which was valued under methods approved by the Board of Trustees as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
Shares
|
|
Issuer
|
|
Acquisition
Date
|
|
Acquisition
Cost
|
|
|
12/31/12
Carrying
Value
Per
Unit
|
|
8,500
|
|
Samsung Electronics Co. Ltd., GDR
|
|
7/15/04
|
|
$
|
1,523,151
|
|
|
$
|
705.0000
|
|
|
Non-income producing security.
|
ADR
|
American Depositary Receipt
|
GDR
|
Global Depositary Receipt
|
SDR
|
Swedish Depositary Receipt
|
REIT
|
Real Estate Investment Trust
|
See accompanying notes
to financial statements.
13
The Gabelli Asset Fund
Statement of Assets and Liabilities
December 31, 2012
|
|
|
|
|
Assets:
|
|
|
|
|
Investments, at value (cost $1,323,828,060)
|
|
$
|
2,782,507,500
|
|
Foreign currency, at value (cost $28)
|
|
|
29
|
|
Receivable for investments sold
|
|
|
11,595,696
|
|
Receivable for Fund shares sold
|
|
|
5,728,366
|
|
Dividends receivable
|
|
|
2,453,767
|
|
Prepaid expenses
|
|
|
123,178
|
|
|
|
|
|
|
Total Assets
|
|
|
2,802,408,536
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Payable to custodian
|
|
|
12,731
|
|
Payable for investments purchased
|
|
|
785,137
|
|
Payable for Fund shares redeemed
|
|
|
6,524,431
|
|
Payable for investment advisory fees
|
|
|
2,356,631
|
|
Payable for distribution fees
|
|
|
589,221
|
|
Payable for accounting fees
|
|
|
3,750
|
|
Line of credit payable
|
|
|
15,336,000
|
|
Other accrued expenses
|
|
|
807,571
|
|
|
|
|
|
|
Total Liabilities
|
|
|
26,415,472
|
|
|
|
|
|
|
Net Assets
|
|
|
|
|
(applicable to 53,567,074 shares outstanding)
|
|
$
|
2,775,993,064
|
|
|
|
|
|
|
Net Assets Consist of:
|
|
|
|
|
Paid-in capital
|
|
$
|
1,335,755,192
|
|
Distributions in excess of net investment income
|
|
|
(889,674
|
)
|
Distributions in excess of net realized gain on investments and foreign currency transactions
|
|
|
(17,548,539
|
)
|
Net unrealized appreciation on investments
|
|
|
1,458,679,440
|
|
Net unrealized depreciation on foreign currency translations
|
|
|
(3,355
|
)
|
|
|
|
|
|
Net Assets
|
|
$
|
2,775,993,064
|
|
|
|
|
|
|
Shares of Beneficial Interest, each at $0.01 par value; unlimited number of shares authorized:
|
|
|
|
|
Class AAA:
|
|
|
|
|
Net Asset Value, offering, and redemption price per share ($2,487,368,087 ÷ 47,950,942 shares outstanding)
|
|
$
|
51.87
|
|
|
|
|
|
|
Class A:
|
|
|
|
|
Net Asset Value and redemption price per share ($74,713,035 ÷ 1,450,193 shares outstanding)
|
|
$
|
51.52
|
|
|
|
|
|
|
Maximum offering price per share (NAV ÷ 0.9425, based on maximum sales charge of 5.75% of the offering price)
|
|
$
|
54.66
|
|
|
|
|
|
|
Class C:
|
|
|
|
|
Net Asset Value and offering price per share ($54,545,486 ÷ 1,090,584 shares outstanding)
|
|
$
|
50.01
|
(a)
|
|
|
|
|
|
Class I:
|
|
|
|
|
Net Asset Value, offering, and redemption price per share ($159,366,456 ÷ 3,075,355 shares outstanding)
|
|
$
|
51.82
|
|
|
|
|
|
|
(a)
|
Redemption price varies based on the length of time held.
|
Statement of Operations
For the Year Ended December 31, 2012
|
|
|
|
|
Investment Income:
|
|
|
|
|
Dividends (net of foreign withholding taxes of $1,706,015)
|
|
$
|
66,909,882
|
|
Interest
|
|
|
11,686
|
|
|
|
|
|
|
Total Investment Income
|
|
|
66,921,568
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Investment advisory fees
|
|
|
28,432,473
|
|
Distribution fees - Class AAA
|
|
|
6,432,739
|
|
Distribution fees - Class A
|
|
|
189,178
|
|
Distribution fees - Class B*
|
|
|
31
|
|
Distribution fees - Class C
|
|
|
494,963
|
|
Shareholder services fees
|
|
|
2,063,507
|
|
Shareholder communications expenses
|
|
|
521,624
|
|
Custodian fees
|
|
|
384,250
|
|
Trustees fees
|
|
|
190,245
|
|
Legal and audit fees
|
|
|
137,573
|
|
Registration expenses.
|
|
|
110,255
|
|
Accounting fees
|
|
|
45,000
|
|
Interest expense.
|
|
|
11,701
|
|
Miscellaneous expenses.
|
|
|
180,464
|
|
|
|
|
|
|
Total Expenses
|
|
|
39,194,003
|
|
|
|
|
|
|
Less:
|
|
|
|
|
Advisory fee reduction on unsupervised assets (Note 3)
|
|
|
(20,162
|
)
|
Custodian fee credits
|
|
|
(141
|
)
|
|
|
|
|
|
Total Reductions and Credits
|
|
|
(20,303
|
)
|
|
|
|
|
|
Net Expenses
|
|
|
39,173,700
|
|
|
|
|
|
|
Net Investment Income
|
|
|
27,747,868
|
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
|
|
|
|
|
Net realized gain on investments
|
|
|
156,099,954
|
|
Net realized loss on foreign currency transactions
|
|
|
(16,101
|
)
|
|
|
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
156,083,853
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation:
|
|
|
|
|
on investments
|
|
|
232,485,258
|
|
on foreign currency translations
|
|
|
(5,688
|
)
|
|
|
|
|
|
Net change in unrealized appreciation on investments and foreign currency translations .
|
|
|
232,479,570
|
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency
|
|
|
388,563,423
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
416,311,291
|
|
|
|
|
|
|
*
|
Class B Shares were fully redeemed and closed on September 5, 2012.
|
See accompanying notes to
financial statements.
14
The Gabelli Asset Fund
Statement of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
Year Ended
December 31, 2011
|
|
Operations:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
27,747,868
|
|
|
$
|
10,901,710
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
156,083,853
|
|
|
|
49,221,792
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency translations
|
|
|
232,479,570
|
|
|
|
(84,565,220
|
)
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Resulting from Operations
|
|
|
416,311,291
|
|
|
|
(24,441,718
|
)
|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
Class AAA
|
|
|
(23,418,245
|
)
|
|
|
(9,612,866
|
)
|
Class A
|
|
|
(705,300
|
)
|
|
|
(291,548
|
)
|
Class C
|
|
|
(180,970
|
)
|
|
|
|
|
Class I
|
|
|
(1,964,146
|
)
|
|
|
(607,472
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(26,268,661
|
)
|
|
|
(10,511,886
|
)
|
|
|
|
|
|
|
|
|
|
Net realized gain
|
|
|
|
|
|
|
|
|
Class AAA
|
|
|
(127,652,942
|
)
|
|
|
(48,142,032
|
)
|
Class A
|
|
|
(3,825,581
|
)
|
|
|
(1,259,602
|
)
|
Class B
|
|
|
|
|
|
|
(116
|
)
|
Class C
|
|
|
(2,890,990
|
)
|
|
|
(787,744
|
)
|
Class I
|
|
|
(8,399,405
|
)
|
|
|
(1,802,732
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(142,768,918
|
)
|
|
|
(51,992,226
|
)
|
|
|
|
|
|
|
|
|
|
Total Distributions to Shareholders
|
|
|
(169,037,579
|
)
|
|
|
(62,504,112
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Beneficial Interest Transactions:
|
|
|
|
|
|
|
|
|
Class AAA
|
|
|
(268,301,992
|
)
|
|
|
32,525,762
|
|
Class A
|
|
|
1,904,822
|
|
|
|
46,813,670
|
|
Class B*
|
|
|
(6,201
|
)
|
|
|
4,748
|
|
Class C
|
|
|
9,721,823
|
|
|
|
25,834,821
|
|
Class I
|
|
|
55,796,134
|
|
|
|
60,784,272
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets from Shares of Beneficial Interest Transactions
|
|
|
(200,885,414
|
)
|
|
|
165,963,273
|
|
|
|
|
|
|
|
|
|
|
Redemption Fees
|
|
|
8,340
|
|
|
|
11,664
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets
|
|
|
46,396,638
|
|
|
|
79,029,107
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
2,729,596,426
|
|
|
|
2,650,567,319
|
|
|
|
|
|
|
|
|
|
|
End of period (including undistributed net investment income of $0 and $0, respectively)
|
|
$
|
2,775,993,064
|
|
|
$
|
2,729,596,426
|
|
|
|
|
|
|
|
|
|
|
*
|
Class B Shares were fully redeemed and closed on September 5, 2012.
|
See accompanying notes to financial statements.
15
The Gabelli Asset Fund
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
from Investment Operations
|
|
|
Distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net
Assets/
Supplemental
Data
|
|
Period Ended December 31
|
|
Net Asset
Value,
Beginning
of Period
|
|
|
Net
Investment
Income
(Loss)(a)
|
|
|
Net
Realized
and
Unrealized
Gain (Loss)
on
Investments
|
|
|
Total from
Investment
Operations
|
|
|
Net
Investment
Income
|
|
|
Net
Realized
Gain on
Investments
|
|
|
Total
Distributions
|
|
|
Redemption
Fees (a)(b)
|
|
|
Net Asset
Value,
End of
Period
|
|
|
Total
Return
|
|
|
Net Assets End
of Period (in
000s)
|
|
|
Net
Investment
Income
(Loss)
|
|
|
Operating
Expenses
|
|
|
Portfolio
Turnover
Rate
|
|
Class AAA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
$47.60
|
|
|
|
$0.50
|
|
|
|
$ 7.10
|
|
|
|
$ 7.60
|
|
|
|
$(0.52)
|
|
|
|
$(2.81)
|
|
|
|
$(3.33)
|
|
|
|
$0.00
|
|
|
$
|
51.87
|
|
|
|
16.0
|
%
|
|
$
|
2,487,368
|
|
|
|
0.97
|
%
|
|
|
1.38
|
%
|
|
|
4
|
%
|
2011
|
|
|
48.93
|
|
|
|
0.19
|
|
|
|
(0.41)
|
|
|
|
(0.22)
|
|
|
|
(0.18)
|
|
|
|
(0.93)
|
|
|
|
(1.11)
|
|
|
|
0.00
|
|
|
|
47.60
|
|
|
|
(0.4
|
)
|
|
|
2,527,218
|
|
|
|
0.39
|
|
|
|
1.37
|
|
|
|
8
|
|
2010
|
|
|
40.21
|
|
|
|
0.15
|
|
|
|
9.13
|
|
|
|
9.28
|
|
|
|
(0.15)
|
|
|
|
(0.41)
|
|
|
|
(0.56)
|
|
|
|
0.00
|
|
|
|
48.93
|
|
|
|
23.1
|
|
|
|
2,571,513
|
|
|
|
0.35
|
|
|
|
1.38
|
|
|
|
7
|
|
2009
|
|
|
31.01
|
|
|
|
0.25
|
|
|
|
9.22
|
|
|
|
9.47
|
|
|
|
(0.27)
|
|
|
|
|
|
|
|
(0.27)
|
|
|
|
0.00
|
|
|
|
40.21
|
|
|
|
30.5
|
|
|
|
2,107,979
|
|
|
|
0.74
|
|
|
|
1.40
|
|
|
|
7
|
|
2008
|
|
|
49.81
|
|
|
|
0.22
|
|
|
|
(18.76)
|
|
|
|
(18.54)
|
|
|
|
(0.23)
|
|
|
|
(0.03)
|
|
|
|
(0.26)
|
|
|
|
0.00
|
|
|
|
31.01
|
|
|
|
(37.2
|
)
|
|
|
1,721,697
|
|
|
|
0.52
|
|
|
|
1.38
|
|
|
|
14
|
|
Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
$47.30
|
|
|
|
$0.50
|
|
|
|
$ 7.05
|
|
|
|
$ 7.55
|
|
|
|
$(0.52)
|
|
|
|
$(2.81)
|
|
|
|
$(3.33)
|
|
|
|
$0.00
|
|
|
$
|
51.52
|
|
|
|
16.0
|
%
|
|
$
|
74,713
|
|
|
|
0.98
|
%
|
|
|
1.38
|
%
|
|
|
4
|
%
|
2011
|
|
|
48.65
|
|
|
|
0.21
|
|
|
|
(0.42)
|
|
|
|
(0.21)
|
|
|
|
(0.21)
|
|
|
|
(0.93)
|
|
|
|
(1.14)
|
|
|
|
0.00
|
|
|
|
47.30
|
|
|
|
(0.4
|
)
|
|
|
66,330
|
|
|
|
0.43
|
|
|
|
1.37
|
|
|
|
8
|
|
2010
|
|
|
40.01
|
|
|
|
0.15
|
|
|
|
9.07
|
|
|
|
9.22
|
|
|
|
(0.17)
|
|
|
|
(0.41)
|
|
|
|
(0.58)
|
|
|
|
0.00
|
|
|
|
48.65
|
|
|
|
23.0
|
|
|
|
23,280
|
|
|
|
0.34
|
|
|
|
1.38
|
|
|
|
7
|
|
2009
|
|
|
30.85
|
|
|
|
0.25
|
|
|
|
9.17
|
|
|
|
9.42
|
|
|
|
(0.26)
|
|
|
|
|
|
|
|
(0.26)
|
|
|
|
0.00
|
|
|
|
40.01
|
|
|
|
30.5
|
|
|
|
13,216
|
|
|
|
0.75
|
|
|
|
1.40
|
|
|
|
7
|
|
2008
|
|
|
49.59
|
|
|
|
0.23
|
|
|
|
(18.69)
|
|
|
|
(18.46)
|
|
|
|
(0.25)
|
|
|
|
(0.03)
|
|
|
|
(0.28)
|
|
|
|
0.00
|
|
|
|
30.85
|
|
|
|
(37.2
|
)
|
|
|
11,522
|
|
|
|
0.55
|
|
|
|
1.38
|
|
|
|
14
|
|
Class C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
$46.05
|
|
|
|
$0.13
|
|
|
|
$ 6.82
|
|
|
|
$ 6.95
|
|
|
|
$(0.18)
|
|
|
|
$(2.81)
|
|
|
|
$(2.99)
|
|
|
|
$0.00
|
|
|
$
|
50.01
|
|
|
|
15.1
|
%
|
|
$
|
54,546
|
|
|
|
0.27
|
%
|
|
|
2.13
|
%
|
|
|
4
|
%
|
2011
|
|
|
47.53
|
|
|
|
(0.15
|
)
|
|
|
(0.40)
|
|
|
|
(0.55)
|
|
|
|
|
|
|
|
(0.93)
|
|
|
|
(0.93)
|
|
|
|
0.00
|
|
|
|
46.05
|
|
|
|
(1.1
|
)
|
|
|
41,146
|
|
|
|
(0.32
|
)
|
|
|
2.12
|
|
|
|
8
|
|
2010
|
|
|
39.25
|
|
|
|
(0.17
|
)
|
|
|
8.86
|
|
|
|
8.69
|
|
|
|
|
|
|
|
(0.41)
|
|
|
|
(0.41)
|
|
|
|
0.00
|
|
|
|
47.53
|
|
|
|
22.1
|
|
|
|
17,240
|
|
|
|
(0.40
|
)
|
|
|
2.13
|
|
|
|
7
|
|
2009
|
|
|
30.31
|
|
|
|
(0.01
|
)
|
|
|
9.00
|
|
|
|
8.99
|
|
|
|
(0.05)
|
|
|
|
|
|
|
|
(0.05)
|
|
|
|
0.00
|
|
|
|
39.25
|
|
|
|
29.6
|
|
|
|
8,916
|
|
|
|
(0.03
|
)
|
|
|
2.15
|
|
|
|
7
|
|
2008
|
|
|
48.68
|
|
|
|
(0.09
|
)
|
|
|
(18.25)
|
|
|
|
(18.34)
|
|
|
|
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
0.00
|
|
|
|
30.31
|
|
|
|
(37.7
|
)
|
|
|
6,419
|
|
|
|
(0.21
|
)
|
|
|
2.13
|
|
|
|
14
|
|
Class I
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
$47.56
|
|
|
|
$0.67
|
|
|
|
$ 7.06
|
|
|
|
$ 7.73
|
|
|
|
$(0.66)
|
|
|
|
$(2.81)
|
|
|
|
$(3.47)
|
|
|
|
$0.00
|
|
|
$
|
51.82
|
|
|
|
16.3
|
%
|
|
$
|
159,366
|
|
|
|
1.30
|
%
|
|
|
1.13
|
%
|
|
|
4
|
%
|
2011
|
|
|
48.90
|
|
|
|
0.34
|
|
|
|
(0.44)
|
|
|
|
(0.10)
|
|
|
|
(0.31)
|
|
|
|
(0.93)
|
|
|
|
(1.24)
|
|
|
|
0.00
|
|
|
|
47.56
|
|
|
|
(0.2
|
)
|
|
|
94,896
|
|
|
|
0.69
|
|
|
|
1.12
|
|
|
|
8
|
|
2010
|
|
|
40.18
|
|
|
|
0.27
|
|
|
|
9.11
|
|
|
|
9.38
|
|
|
|
(0.25)
|
|
|
|
(0.41)
|
|
|
|
(0.66)
|
|
|
|
0.00
|
|
|
|
48.90
|
|
|
|
23.4
|
|
|
|
38,532
|
|
|
|
0.62
|
|
|
|
1.13
|
|
|
|
7
|
|
2009
|
|
|
30.97
|
|
|
|
0.33
|
|
|
|
9.24
|
|
|
|
9.57
|
|
|
|
(0.36)
|
|
|
|
|
|
|
|
(0.36)
|
|
|
|
0.00
|
|
|
|
40.18
|
|
|
|
30.9
|
|
|
|
6,080
|
|
|
|
0.99
|
|
|
|
1.15
|
|
|
|
7
|
|
2008(c)
|
|
|
47.26
|
|
|
|
0.33
|
|
|
|
(16.25)
|
|
|
|
(15.92)
|
|
|
|
(0.34)
|
|
|
|
(0.03)
|
|
|
|
(0.37)
|
|
|
|
0.00
|
|
|
|
30.97
|
|
|
|
(33.6
|
)
|
|
|
3,753
|
|
|
|
0.84
|
(d)
|
|
|
1.13
|
(d)
|
|
|
14
|
|
|
Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including
reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized.
|
(a)
|
Per share amounts have been calculated using the average shares outstanding method.
|
(b)
|
Amount represents less than $0.005 per share.
|
(c)
|
From the commencement of offering Class I Shares on January 11, 2008 through December 31, 2008.
|
See
accompanying notes to financial statements.
16
The Gabelli Asset Fund
Notes to Financial Statements
1. Organization.
The Gabelli Asset
Fund was organized on November 25, 1985 as a Massachusetts business trust. The Fund is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The
Funds primary objective is growth of capital. The Fund commenced investment operations on March 3, 1986.
2. Significant
Accounting Policies.
The Funds financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), which may require the use of management estimates and assumptions. Actual results could
differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security Valuation.
Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available
are valued at the last quoted sale price or a markets official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and
asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if
the Board of Trustees (the Board) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the Adviser).
Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities fair value, in which case these securities will be
fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted
on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar
securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies
and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of
foreign securities with the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.
17
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
The inputs and valuation techniques used to measure fair value of the Funds investments are
summarized into three levels as described in the hierarchy below:
|
|
|
Level 1 quoted prices in active markets for identical securities;
|
|
|
|
Level 2 other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit
risk, etc.); and
|
|
|
|
Level 3 significant unobservable inputs (including the Funds determinations as to the fair value of investments).
|
A financial instruments level within the fair value hierarchy is based on the lowest level of any input both
individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of
the Funds investments in securities by inputs used to value the Funds investments as of December 31, 2012 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs
|
|
|
|
|
|
|
Level 1
Quoted Prices
|
|
|
Level 2 Other Significant
Observable Inputs
|
|
|
Level 3 Significant
Unobservable Inputs
|
|
|
Total Market Value
at 12/31/12
|
|
INVESTMENTS IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcasting
|
|
|
$ 47,344,316
|
|
|
|
|
|
|
|
$ 4
|
|
|
|
$ 47,344,320
|
|
Consumer Products
|
|
|
134,622,272
|
|
|
|
$ 30
|
|
|
|
|
|
|
|
134,622,302
|
|
Energy and Utilities
|
|
|
194,195,750
|
|
|
|
|
|
|
|
0
|
|
|
|
194,195,750
|
|
Equipment and Supplies
|
|
|
206,247,601
|
|
|
|
|
|
|
|
2,060
|
|
|
|
206,249,661
|
|
Specialty Chemicals
|
|
|
32,420,381
|
|
|
|
|
|
|
|
2,970
|
|
|
|
32,423,351
|
|
Other Industries (a)
|
|
|
2,165,629,239
|
|
|
|
|
|
|
|
|
|
|
|
2,165,629,239
|
|
Total Common Stocks
|
|
|
2,780,459,559
|
|
|
|
30
|
|
|
|
5,034
|
|
|
|
2,780,464,623
|
|
Preferred Stocks (a)
|
|
|
678,338
|
|
|
|
|
|
|
|
|
|
|
|
678,338
|
|
Rights (a)
|
|
|
|
|
|
|
|
|
|
|
200
|
|
|
|
200
|
|
Warrants (a)
|
|
|
1,134,339
|
|
|
|
230,000
|
|
|
|
|
|
|
|
1,364,339
|
|
TOTAL INVESTMENTS IN SECURITIES ASSETS
|
|
$
|
2,782,272,236
|
|
|
|
$230,030
|
|
|
|
$5,234
|
|
|
|
$2,782,507,500
|
|
(a)
|
Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
|
The Fund did not have transfers between Level 1 and Level 2 during the year ended December 31, 2012. The Funds policy is to recognize
transfers among Levels as of the beginning of the reporting period.
Additional Information to Evaluate Qualitative Information.
General.
The Fund uses recognized industry pricing services approved by the Board and unaffiliated with
the Adviser to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity
securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied
by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a
broker/dealer that trades that security or similar securities.
18
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
Fair Valuation.
Fair valued securities may be common and
preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are
not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of
valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures
continue to apply.
The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures.
These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of
derivative financial instruments for the purposes of increasing the income of the Fund or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain
derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the
Advisers prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of
default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks.
Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may
have a negative impact on the Funds ability to pay distributions.
The Funds derivative contracts held at December 31,
2012, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.
Forward Foreign Exchange Contracts.
The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with
respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market
value is included in unrealized appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying prices of the Funds portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the value of the currency increase. During the year ended December 31, 2012, the Fund held no investments in forward foreign exchange contracts.
19
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
Foreign Currency Translations.
The books and records of the Fund are maintained in
U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate
prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on
investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities
transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.
Foreign Securities.
The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in
securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover,
securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign Taxes.
The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries
as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Restricted Securities.
The Fund may invest up to 10% of its net assets in securities for which the markets are restricted. Restricted
securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling
expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on
resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is
not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted securities the Fund held as of December 31, 2012, refer to the Schedule of Investments.
Securities Transactions and Investment Income.
Securities transactions are accounted for on the trade date with realized gain or loss
on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.
Determination of Net Asset Value and Calculation of Expenses.
Certain administrative expenses are common to, and allocated
among, various affiliated funds. Such allocations are made on the basis of each funds average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board.
20
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
In calculating the NAV per share of each class, investment income, realized and unrealized gains
and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by
the class incurring the expense.
Custodian Fee Credits and Interest Expense.
When cash balances are maintained in the
custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any,
shown as Custodian fee credits. When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the federal funds rate on outstanding balances. This amount, if any, would be included in the Statement of
Operations.
Distributions to Shareholders.
Distributions to shareholders are recorded on the ex-dividend date.
Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to
differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment
income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the
appropriate capital accounts in the period when the differences arise. Permanent differences were primarily due to the tax treatment of currency gains and losses, reclassifications of distributions on investments in real estate investment trusts,
and the utilization of the tax accounting practice known as equalization. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2012, reclassifications were made to decrease distributions in excess of
net investment income by $1,804,129 and increase distributions in excess of net realized gain on investments and foreign currency transactions by $11,667,126, with an offsetting adjustment to paid-in capital.
The tax character of distributions paid during the years ended December 31, 2012 and December 31, 2011 was as follows:
|
|
|
|
|
|
|
Year Ended
December 31, 2012*
|
|
Year Ended
December 31, 2011
|
Distributions paid from:
|
|
|
|
|
Ordinary income
|
|
|
|
|
(inclusive of short-term capital gains)
|
|
$ 30,465,943
|
|
$ 14,203,016
|
Net long-term capital gains.
|
|
152,070,167
|
|
48,301,096
|
|
|
|
|
|
Total distributions paid.
|
|
$ 182,536,110
|
|
$ 62,504,112
|
|
|
|
|
|
*
|
Total distributions paid differs from the Statement of Changes in Net Assets due to the utilization of equalization.
|
Provision For Income Taxes.
The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended (the Code). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company
taxable income and net capital gains. Therefore, no provision for federal income taxes is required.
21
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
As of December 31, 2012, the components of accumulated earnings/losses on a tax basis were as
follows:
|
|
|
|
|
Undistributed long-term gains.
|
|
$
|
1,161,036
|
|
Net unrealized appreciation on investments and foreign currency translations
|
|
|
1,439,076,836
|
|
|
|
|
|
|
Total.
|
|
$
|
1,440,237,872
|
|
|
|
|
|
|
Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward for an
unlimited period capital losses incurred in years beginning after December 22, 2010. As a result of the rule, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses
rather than being considered all short-term as under previous law.
At December 31, 2012, the differences between book basis and tax
basis net unrealized appreciation were primarily due to mark-to-market adjustments on investments no longer considered a passive foreign investment company, deferral of losses from wash sales for tax purposes, basis adjustments on investments in
partnerships, and mark-to-market adjustments on investments in a passive foreign investment company.
The following summarizes the tax
cost of investments and the related net unrealized appreciation at December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
Gross
Unrealized
Appreciation
|
|
|
Gross
Unrealized
Depreciation
|
|
|
Net Unrealized
Appreciation
|
|
Investments
|
|
$
|
1,343,427,413
|
|
|
$
|
1,505,555,430
|
|
|
$
|
(66,475,239
|
)
|
|
$
|
1,439,080,191
|
|
The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the
Funds tax returns to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in
the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the year ended December 31, 2012, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2012, the
Adviser has reviewed all open tax years and concluded that there was no impact to the Funds net assets or results of operations. Tax years ended December 31, 2009 through December 31, 2012 remain subject to examination by the
Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Funds tax positions to determine if adjustments to this conclusion are necessary.
3. Investment Advisory Agreement and Other Transactions.
The Fund has entered into an investment advisory agreement (the Advisory
Agreement) with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% of the value of its average daily net assets. In accordance with the Advisory Agreement, the
Adviser provides a continuous investment program for the Funds portfolio, oversees the administration of all aspects of the Funds business and affairs, and pays the compensation of all Officers and Trustees of the Fund who are affiliated
persons of the Adviser.
There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio holdings, i.e.,
unsupervised assets, of the Fund with respect to which the Adviser transferred dispositive and voting control to the Funds Proxy Voting Committee. During the year ended December 31, 2012, the Funds Proxy Voting Committee exercised
control and discretion over all rights to vote or consent with respect to such securities, and the Adviser reduced its fee with respect to such securities by $20,162.
22
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
The Fund pays each Trustee who is not considered an affiliated person an annual retainer of
$18,000 plus $2,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended and the Chairman of the Audit
Committee and the Lead Trustee each receive an annual fee of $2,000. The Chairman of the Proxy Voting Committee and Nominating Committee each receive $1,000 annually. A Trustee may receive a single meeting fee, allocated among the participating
funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.
4. Distribution Plan.
The Funds Board has adopted a distribution plan (the Plan) for each class of shares, except for Class
I Shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Class AAA, Class A, and Class C Share Plans, payments are authorized to G.distributors, LLC (the Distributor), an affiliate of the Fund, at annual rates of 0.25%, 0.25%,
and 1.00%, respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such payments are accrued daily and paid monthly.
5. Portfolio Securities.
Purchases and sales of securities during the year ended December 31, 2012, other than short-term securities and U.S. Government obligations, aggregated $118,862,535 and
$449,177,281, respectively.
6. Transactions with Affiliates.
During the year ended December 31, 2012, the Fund paid
brokerage commissions on security trades of $283,026 to Gabelli & Company, Inc., an affiliate of the Fund. Additionally the Distributor retained a total of $40,360 from investors representing commissions (sales charges and underwriting
fees) on sales and redemptions of Fund shares.
The cost of calculating the Funds NAV per share is a Fund expense pursuant to the
Advisory Agreement. During the year ended December 31, 2012, the Fund paid or accrued $45,000 to the Adviser in connection with the cost of computing the Funds NAV.
7. Line of Credit.
The Fund participates in an unsecured line of credit of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes.
Borrowings under this arrangement bear interest at the higher of the sum of the overnight LIBOR rate plus 100 basis points or the sum of the federal funds rate plus 100 basis points at the time of borrowing. This amount, if any, would be included in
interest expense in the Statement of Operations. At December 31, 2012, borrowings outstanding under the line of credit amounted to $15,336,000.
The average daily amount of borrowings outstanding under the line of credit during the year ended December 31, 2012 was $1,107,511 with a weighted average interest rate of 1.09%. The maximum amount borrowed at
any time during the year ended December 31, 2012 was $27,092,000.
8. Shares of Beneficial Interest.
The Fund offers four
classes of shares Class AAA Shares, Class A Shares, Class C Shares, and Class I Shares. Class AAA Shares are offered without a sales charge only to investors who acquire them directly from the Distributor, through selected
broker/dealers, or the transfer agent. Class I Shares are offered without a sales charge, solely to certain institutions, directly through the Distributor, or brokers that have entered into selling agreements specifically with respect to Class I
Shares. Class A Shares are subject to a maximum front-end sales charge of 5.75%. Class C Shares are subject to a 1.00% contingent deferred sales charge for one year after purchase. Class B Shares were fully redeemed and closed on
September 5, 2012.
23
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
The Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or
exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Fund as an increase in paid-in capital. The redemption fees
retained by the Fund during the years ended December 31, 2012 and December 31, 2011 amounted to $8,340 and $11,664, respectively.
Transactions
in shares of beneficial interest were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
Year Ended
December 31, 2011
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
Class AAA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
4,807,279
|
|
|
$
|
246,367,187
|
|
|
|
8,415,820
|
|
|
$
|
419,968,817
|
|
Shares issued upon reinvestment of distributions
|
|
|
2,784,478
|
|
|
|
143,539,981
|
|
|
|
1,158,479
|
|
|
|
54,599,274
|
|
Shares redeemed
|
|
|
(12,733,311
|
)
|
|
|
(658,209,160
|
)
|
|
|
(9,036,639
|
)
|
|
|
(442,042,329
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
|
|
|
(5,141,554
|
)
|
|
$
|
(268,301,992
|
)
|
|
|
537,660
|
|
|
$
|
32,525,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
664,165
|
|
|
$
|
33,557,026
|
|
|
|
1,293,140
|
|
|
$
|
64,496,462
|
|
Shares issued upon reinvestment of distributions
|
|
|
79,301
|
|
|
|
4,060,214
|
|
|
|
30,486
|
|
|
|
1,427,643
|
|
Shares redeemed
|
|
|
(695,743
|
)
|
|
|
(35,712,418
|
)
|
|
|
(399,635
|
)
|
|
|
(19,110,435
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
47,723
|
|
|
$
|
1,904,822
|
|
|
|
923,991
|
|
|
$
|
46,813,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
|
|
|
|
|
|
|
|
92
|
|
|
$
|
4,663
|
|
Shares issued upon reinvestment of distributions
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
85
|
|
Shares redeemed
|
|
|
(127
|
)
|
|
$
|
(6,201
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
|
|
|
(127
|
)
|
|
$
|
(6,201
|
)
|
|
|
94
|
|
|
$
|
4,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
339,602
|
|
|
$
|
16,789,412
|
|
|
|
624,349
|
|
|
$
|
30,266,783
|
|
Shares issued upon reinvestment of distributions
|
|
|
46,274
|
|
|
|
2,300,264
|
|
|
|
13,453
|
|
|
|
613,574
|
|
Shares redeemed
|
|
|
(188,899
|
)
|
|
|
(9,367,853
|
)
|
|
|
(106,892
|
)
|
|
|
(5,045,536
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
196,977
|
|
|
$
|
9,721,823
|
|
|
|
530,910
|
|
|
$
|
25,834,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares sold
|
|
|
2,057,126
|
|
|
$
|
106,292,895
|
|
|
|
1,503,179
|
|
|
$
|
74,969,630
|
|
Shares issued upon reinvestment of distributions
|
|
|
180,004
|
|
|
|
9,270,235
|
|
|
|
46,104
|
|
|
|
2,171,041
|
|
Shares redeemed
|
|
|
(1,157,150
|
)
|
|
|
(59,766,996
|
)
|
|
|
(341,858
|
)
|
|
|
(16,356,399
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
|
|
|
1,079,980
|
|
|
$
|
55,796,134
|
|
|
|
1,207,425
|
|
|
$
|
60,784,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Class B Shares were fully redeemed and closed on September 5, 2012.
|
9. Indemnifications.
The Fund enters into contracts that contain a variety of indemnifications. The Funds maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds existing contracts and expects the risk of loss to be remote.
10. Other Matters.
On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding prior frequent
trading in shares of the GAMCO Global Growth Fund (the Global Growth Fund) by one investor who was banned from the Global Growth Fund in August 2002. Under the terms of the settlement,
24
The Gabelli Asset Fund
Notes to Financial Statements (Continued)
the Adviser, without admitting or denying the SECs findings and allegations, paid $16 million (which included a $5 million civil monetary penalty). On the same day, the SEC filed a civil
action in the U.S. District Court for the Southern District of New York against the Executive Vice President and Chief Operating Officer of the Adviser, alleging violations of certain federal securities laws arising from the same matter. The
officer, who also is an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO complex, including this Fund, denies the allegations and is continuing in his positions with the Adviser and the funds. The settlement by the Adviser did
not have, and the resolution of the action against the officer is not expected to have, a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement.
11. Subsequent Events.
Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial
statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
25
The Gabelli Asset Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
The Gabelli Asset Fund:
In our opinion, the
accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial
position of The Gabelli Asset Fund (hereafter referred to as the Fund) at December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and
the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial
statements) are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of securities at December 31, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2013
26
The Gabelli Asset Fund
Additional Fund Information (Unaudited)
The business and affairs of the Fund are
managed under the direction of the Funds Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Funds Statement of Additional Information includes additional information about the
Funds Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli Asset Fund at One Corporate Center, Rye, NY 10580-1422.
|
|
|
|
|
|
|
|
|
Name,
Position(s)
Address
1
and Age
|
|
Term of Office
and Length of
Time Served
2
|
|
Number of Funds in
Fund
Complex
Overseen by Trustee
|
|
Principal Occupation(s)
During Past Five Years
|
|
Other Directorships
Held by
Trustee
4
|
|
|
|
|
|
INTERESTED
TRUSTEES
3
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mario J. Gabelli, CFA
Trustee and
Chief Investment
Officer
Age: 70
|
|
Since 1986
|
|
27
|
|
Chairman, Chief Executive Officer, and Chief
Investment OfficerValue Portfolios of GAMCO
Investors, Inc. and Chief Investment
Officer
Value Portfolios of Gabelli Funds, LLC, and
GAMCO Asset Management Inc.; Director/
Trustee or Chief Investment Officer of other
registered investment companies in the
Gabelli/GAMCO
Funds Complex; Chief
Executive Officer of GGCP, Inc.
|
|
Director of Morgan Group Holdings, Inc.
(holding company); Chairman of the
Board and Chief Executive Officer of LICT
Corp. (multimedia and communication
services company);
Director of CIBL, Inc.
(broadcasting and wireless
communications); Director of RLJ
Acquisition Inc. (blank check
company)(2011-2012)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
John D. Gabelli
Trustee
Age: 68
INDEPENDENT
TRUSTEES
5
:
|
|
Since 1999
|
|
10
|
|
Senior Vice President of Gabelli & Company,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anthony J. Colavita
Trustee
Age: 77
|
|
Since 1989
|
|
35
|
|
President of the law firm of Anthony J. Colavita, P.C.
|
|
|
|
|
|
|
|
|
|
|
|
James P. Conn
Trustee
Age: 74
|
|
Since 1992
|
|
19
|
|
Former Managing Director and Chief
Investment Officer of Financial Security
Assurance Holdings Ltd. (1992-1998)
|
|
Director of First Republic Bank (banking)
through January 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kuni Nakamura
Trustee
Age: 44
|
|
Since 2009
|
|
13
|
|
President of Advanced Polymer, Inc.
(chemical wholesale company)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anthony R. Pustorino
Trustee
Age: 87
|
|
Since 1986
|
|
13
|
|
Certified Public Accountant; Professor
Emeritus, Pace University
|
|
Director of The LGL Group, Inc.
(diversified manufacturing)
(2002-2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Werner J. Roeder, MD
Trustee
Age: 72
|
|
Since 2001
|
|
22
|
|
Medical Director of Lawrence Hospital and
practicing private physician
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anthonie C. van Ekris
Trustee
Age: 78
|
|
1986-1989
1992-present
|
|
20
|
|
Chairman of BALMAC International, Inc.
(commodities and futures trading)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salvatore J. Zizza
Trustee
Age: 67
|
|
1986-1996
2000-present
|
|
29
|
|
Chairman (since 1978) of Zizza & Associates
Corp. (financial consulting); Chairman (since
2005) of Metropolitan Paper Recycling, Inc.
(recycling); Chairman (since 2009) of E-Corp
English
(business services)
|
|
Chairman of Harbor BioSciences, Inc.
(biotechnology); Director of Trans-Lux
Corporation (business services);
Chairman of Bion Environmental
Technologies
(technology)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
The Gabelli Asset Fund
Additional Fund Information (Continued) (Unaudited)
|
|
|
|
|
|
|
Name, Position(s)
Address
1
and
Age
|
|
Term of Office
and Length of
Time Served
2
|
|
Principal Occupation(s)
During Past Five Years
|
|
|
|
|
|
|
OFFICERS:
|
|
|
|
|
|
|
|
|
|
|
Bruce N. Alpert
|
|
|
|
Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988;
|
|
|
President, Secretary, and
|
|
Since 1994
|
|
Officer of all of the registered investment companies in the Gabelli/GAMCO Funds
|
|
|
Acting Chief Compliance
|
|
Since November
|
|
Complex; Director of Teton Advisors, Inc. 1998-2012; Chairman of Teton Advisors, Inc.
|
|
|
Officer
|
|
2011
|
|
2008-2010; President of Teton Advisors, Inc. 1998-2008; Senior Vice President of GAMCO
|
|
|
Age: 61
|
|
|
|
Investors, Inc. since 2008
|
|
|
|
|
|
|
Agnes Mullady
|
|
Since 2006
|
|
President and Chief Operating Officer of the Open-End Fund Division of Gabelli Funds, LLC
|
|
|
Treasurer
|
|
|
|
since September 2010; Senior Vice President of GAMCO Investors, Inc. since 2009; Vice
|
|
|
Age: 54
|
|
|
|
President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment
|
|
|
|
|
|
|
companies in the Gabelli/GAMCO Funds Complex
|
|
|
1
|
Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
|
2
|
Each Trustee will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Trustee and until the election and qualification of his or her successor, if any, elected at such meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is removed by the Board of
Trustees or shareholders, in accordance with the Funds By-Laws and Articles of Incorporation. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and
qualified.
|
3
|
Interested person of the Fund as defined in the 1940 Act. Messrs. Gabelli are each considered an interested person because of their
affiliation with Gabelli Funds, LLC which acts as the Funds investment adviser. Mario J. Gabelli and John D. Gabelli are brothers.
|
4
|
This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public
companies, or other investment companies registered under the 1940 Act.
|
5
|
Trustees who are not interested persons are considered Independent Trustees.
|
2012 TAX NOTICE TO SHAREHOLDERS
(Unaudited)
For the year ended December 31, 2012, the Fund paid to shareholders ordinary income distributions (comprised of
net investment income and short-term capital gains) totaling $0.5605, $0.5631, $0.2209, and $0.7021 per share for Class AAA, Class A, Class C, and Class I, respectively, and long-term capital gains totaling $152,070,167, or the maximum
allowable. The distribution of long-term capital gains has been designated as a capital gain dividend by the Funds Board of Trustees. For the year ended December 31, 2012, 100% of the ordinary income distribution qualifies for the
dividends received deduction available to corporations. The Fund designates 100% of the ordinary income distribution as qualified dividend income pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 0.02% of the
ordinary income distribution as qualified interest income pursuant to the Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010. The Fund designates 8.35% of the ordinary income distribution as qualified short-term gain pursuant to
the American Jobs Creation Act of 2004.
U.S. Government Income:
The percentage of the ordinary income distribution paid by the Fund during the year ended December 31, 2012
which was derived from U.S. Treasury securities was 0.02%. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a
mutual fund has invested at least 50% of its assets at the end of each quarter of the Funds fiscal year in U.S. Government securities. The Gabelli Asset Fund did not meet this strict requirement in 2012. The percentage of U.S. Government
securities held as of December 31, 2012 was 0.00%. Due to the diversity in state and local tax law, it is recommended that you consult your personal tax adviser as to the applicability of the information provided to your specific situation.
All designations are based on financial information available as of the date of this annual
report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
28
Gabelli/GAMCO Funds and Your Personal Privacy
Who are we?
The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the
Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a
variety of clients.
What kind of non-public information do we collect about you if you become a fund shareholder?
If you apply to open an account directly with us, you will be giving us some non-public information about yourself.
The non-public information we collect about you is:
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Information you give us on your application form.
This could include your name, address, telephone number, social security number, bank account number,
and other information.
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Information about your transactions with us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you.
This would include information about the shares that you buy or redeem. If we hire someone else to provide services like a transfer agent we will also have information about the transactions that you conduct through them.
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What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to anyone other than
our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in
volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.
What do we do to protect your personal information?
We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the fund and to ensure that we are complying with the laws
governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.
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GABELLI/GAMCO
FAMILY OF FUNDS
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VALUE
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Gabelli Asset Fund
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Seeks to invest primarily in a diversified portfolio of common stocks selling at significant discounts to their private market value. The Funds
primary objective is growth of capital.
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(Multiclass)
Team Managed
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Gabelli Dividend Growth Fund
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Seeks to invest at least 80% of its net assets in dividend
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paying stocks.
(Multiclass)
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Portfolio Manager: Barbara G. Marcin, CFA
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TETON Westwood Equity Fund
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Seeks to invest primarily in the common stock of well seasoned companies that have recently reported positive earnings surprises and are trading below
Westwoods proprietary growth rate estimates. The Funds primary objective is capital appreciation.
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(Multiclass)
Team Managed
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FOCUSED VALUE
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Gabelli Focus Five Fund
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Seeks to invest up to 50% of its net assets in the equity
securities of five companies with the remaining net assets invested in ten to twenty other companies or in short-term high grade investments
or cash and cash equivalents.
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(Multiclass)
Team Managed
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Gabelli Value Fund
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Seeks to invest in securities of companies believed to be undervalued. The Funds primary objective is long-term capital appreciation.
(Multiclass) Team
Managed
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SMALL CAP
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Gabelli Small Cap Growth Fund
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Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time of investment of $2 billion or less) believed to have rapid
revenue and earnings growth potential. The Funds primary objective is capital appreciation.
(Multiclass)
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Portfolio Manager: Mario J. Gabelli, CFA
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TETON Westwood SmallCap Equity Fund
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Seeks to invest primarily in smaller capitalization equity
securities market caps of $2.5 billion or less. The Funds
primary objective is long-term capital appreciation.
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(Multiclass)
Portfolio Manager: Nicholas F. Galluccio
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GROWTH
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GAMCO Growth Fund
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Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects for earnings growth. The Funds primary objective is
capital appreciation.
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(Multiclass) Portfolio Manager: Howard F. Ward, CFA
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GAMCO International Growth Fund
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Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The Fund offers investors global
diversification.
(Multiclass)
Portfolio Manager: Caesar Bryan
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AGGRESSIVE GROWTH
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GAMCO Global Growth Fund
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Seeks capital appreciation through a disciplined investment program focusing on the globalization and interactivity of the worlds marketplace.
The Fund invests in companies at the forefront of accelerated growth. The Funds primary objective is capital appreciation.
(Multiclass)
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Team Managed
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MICRO-CAP
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TETON Westwood Mighty Mites
SM
Fund
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Seeks to invest in micro-cap companies that have market capitalizations of $500 million or less. The Funds primary objective is long-term capital
appreciation.
(Multiclass)
Team Managed
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EQUITY INCOME
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Gabelli Equity Income Fund
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Seeks to invest primarily in equity securities with above
average market yields. The Fund pays monthly distributions
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and seeks a high level of total return with an emphasis on
income.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
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TETON Westwood Balanced Fund
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Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The Funds primary objective is both capital appreciation and current income.
(Multiclass)
Team Managed
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TETON Westwood Income Fund
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Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income securities.
(Multiclass) Portfolio Manager: Barbara G. Marcin, CFA
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SPECIALTY EQUITY
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GAMCO Vertumnus Fund
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Seeks to invest principally in common stock and convertible securities of domestic and foreign companies. The Funds primary objective is total return
through a combination of current income and capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
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GAMCO Global Opportunity Fund
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Seeks to invest in common stock of companies which have rapid growth in revenues and earnings and potential for above average capital appreciation or are
undervalued. The Funds primary objective is capital appreciation.
(Multiclass)
Team Managed
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Gabelli SRI Green Fund
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Seeks to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and manufacturers of alcohol,
abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change, energy security and independence, natural resource shortages, organic living, and urbanization). The Funds primary objective is capital
appreciation
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(Multiclass) Team Managed
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SECTOR
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GAMCO Global Telecommunications Fund
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Seeks to invest in telecommunications companies throughout the world targeting undervalued companies with strong earnings and cash flow dynamics. The
Funds primary objective is capital appreciation.
(Multiclass)Team Managed
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Gabelli Gold Fund
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Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The Funds objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a variety of worldwide economic, financial, and political factors.
(Multiclass)
Portfolio Manager:
Caesar Bryan
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Gabelli Utilities Fund
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Seeks to provide a high level of total return through a combination of capital appreciation and current income.
(Multiclass)
Portfolio Manager: Mario J.
Gabelli, CFA
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MERGER AND ARBITRAGE
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Gabelli ABC Fund
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Seeks to invest in securities with attractive opportunities for appreciation or investment income. The Funds primary objective is total return in various
market conditions without excessive risk of capital loss.
(No-load) (Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
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Gabelli Enterprise Mergers and Acquisitions Fund
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Seeks to invest in securities believed to be likely acquisition targets within 1218 months or in arbitrage transactions of publicly announced mergers or
other corporate reorganizations. The Funds primary objective is capital
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appreciation.
(Multiclass)
Portfolio Manager
: Mario J. Gabelli,
CFA
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CONTRARIAN
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GAMCO Mathers Fund
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Seeks long-term capital appreciation in various market conditions without excessive risk of capital loss.
(No-load) Portfolio Manager: Henry Van der Eb, CFA
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Comstock Capital Value Fund
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Seeks capital appreciation and current income. The Fund may use either long or short positions to achieve its objective.
(Multiclass)
Portfolio Managers: Charles L. Minter Martin Weiner, CFA
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FIXED INCOME
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TETON Westwood Intermediate Bond Fund
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Seeks to invest in a diversified portfolio of bonds with various maturities. The Funds primary objective is total return.
(Multiclass) Portfolio
Manager
: Mark R. Freeman, CFA
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CASH MANAGEMENT-MONEY MARKET
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Gabelli U.S. Treasury Money Market Fund
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Seeks to invest exclusively in short-term U.S. Treasury securities. The Funds primary objective is to provide high current income consistent with the
preservation of principal and liquidity.
(No-load)
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Co-Portfolio Managers: Judith A. Raneri
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Ronald S. Eaker
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An investment in the above Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
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The Funds may invest in foreign securities which involve risks not ordinarily associated with investments in domestic issues,including
currencyfluctuation,economic,and political risks.
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To receive a prospectus, call 800-GABELLI (800-422-3554). Investors should carefully consider the
investment objectives, risks, charges, and expenses of a fund before investing. The prospectus contains more information about these and other matters and should be read carefully before investing.
Distributed by G.distributors, LLC, One Corporate Center, Rye, NY 10580.
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THE GABELLI ASSET FUND
One Corporate Center
Rye, New York
10580-1422
t
800-GABELLI (800-422-3554)
f
914-921-5118
e
info@gabelli.com
GABELLI.COM
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Net Asset Value per share available daily
by calling 800-GABELLI after 7:00 P.M.
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BOARD OF TRUSTEES
Mario J. Gabelli, CFA
Chairman and
Chief Executive Officer,
GAMCO Investors, Inc.
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
James P. Conn
Former Chief Investment
Officer,
Financial Security Assurance
Holdings Ltd.
John D. Gabelli
Senior Vice President,
Gabelli & Company, Inc.
Kuni Nakamura
President,
Advanced Polymer, Inc.
Anthony R. Pustorino
Certified Public Accountant,
Professor Emeritus,
Pace University
Werner J. Roeder, MD
Medical Director,
Lawrence Hospital
Anthonie C. van Ekris
Chairman,
BALMAC International, Inc.
Salvatore J. Zizza
Chairman,
Zizza & Associates Corp.
OFFICERS
Bruce N. Alpert
President, Secretary, and
Acting Chief Compliance
Officer
Agnes Mullady
Treasurer
DISTRIBUTOR
G.distributors, LLC
CUSTODIAN, TRANSFER
AGENT, AND
DIVIDEND
DISBURSING AGENT
State Street
Bank and Trust
Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher &
Flom LLP
This report is submitted for the general information of the shareholders of The Gabelli Asset Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
Overall Morningstar Rating
TM
Morningstar
®
rated The Gabelli Asset Fund Class
AAA Shares 5 stars overall, 5 stars for the three and ten year periods, and 4 stars for the five year period ended December 31, 2012 among 1,506, 1,506, 836, and 1,324 Large Blend funds, respectively. Morningstar
TM
is based on risk-adjusted returns.
GAB405Q412AR