UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05715
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The Gabelli Convertible and Income Securities Fund Inc.
------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31, 2004
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Date of reporting period: September 30, 2004
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule of Investments is attached herewith.
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2004 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
--------- ------
CONVERTIBLE CORPORATE BONDS -- 29.2%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 6.2%
$2,200,000 Pep Boys - Manny, Moe & Jack, Cv.,
4.250%, 06/01/07 ............. $ 2,189,000
6,900,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09 ............. 6,831,000
-----------
9,020,000
-----------
AVIATION: PARTS AND SERVICES -- 3.8%
1,600,000 GenCorp Inc., Sub. Deb. Cv.,
5.750%, 04/15/07 ............. 1,644,000
4,028,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12 ............. 3,917,230
-----------
5,561,230
-----------
BROADCASTING -- 0.6%
950,000 Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
4.875%, 07/15/18 ............. 865,687
-----------
BUSINESS SERVICES -- 4.4%
900,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)(c) ..... 0
3,000,000 Franklin Resources Inc., Cv.,
Zero Coupon, 05/11/31+ ....... 1,923,750
500,000 Navistar Financial Corp.,
Sub. Deb. Cv.,
4.750%, 04/01/09 ............. 495,000
Trans-Lux Corp., Sub. Deb. Cv.,
2,600,000 8.250%, 03/01/12 ............. 2,518,750
1,500,000 7.500%, 12/01/06 ............. 1,503,750
-----------
6,441,250
-----------
CABLE -- 1.5%
400,000 Adelphia Communications Corp.,
Sub. Deb. Cv.,
3.250%, 05/01/21+ (c) ........ 110,000
2,500,000 Charter Communications Inc., Cv.,
4.750%, 06/01/06 ............. 2,150,000
-----------
2,260,000
-----------
COMMUNICATIONS EQUIPMENT -- 3.8%
1,900,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09 ............. 1,911,875
200,000 Corning Inc., Deb. Cv.,
Zero Coupon, 11/08/15+ ....... 157,000
1,000,000 Lucent Technologies Inc.,
Sub. Deb. Cv.,
8.000%, 08/01/31 ............. 1,087,500
2,500,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 ............. 2,425,000
-----------
5,581,375
-----------
PRINCIPAL MARKET
AMOUNT VALUE*
--------- ------
CONSUMER PRODUCTS -- 0.1%
$ 100,000 Church & Dwight Co. Inc., Cv.,
5.250%, 08/15/33 (b) ......... $ 117,750
-----------
ELECTRONICS -- 3.1%
10,000 Artesyn Technologies, Sub. Deb. Cv.,
5.500%, 08/15/10 (b) ......... 15,775
1,995,000 Cypress Semiconductor Inc.,
Sub. Deb. Cv.,
3.750%, 07/01/05 ............. 1,980,037
1,000,000 Oak Industries Inc., Sub. Deb. Cv.,
4.875%, 03/01/08 ............. 1,033,750
1,500,000 TriQuint Semiconductor Inc.,
Sub. Deb. Cv.,
4.000%, 03/01/07 ............. 1,451,250
-----------
4,480,812
-----------
ENERGY AND UTILITIES -- 1.2%
500,000 Devon Energy Corp., Deb. Cv.,
4.950%, 08/15/08 ............. 544,375
1,500,000 Mirant Corp., Deb. Cv.,
2.500%, 06/15/21+ (c) ........ 952,500
257,000 Moran Energy Inc., Sub. Deb. Cv.,
8.750%, 01/15/08 ............. 253,145
-----------
1,750,020
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EQUIPMENT AND SUPPLIES -- 0.9%
1,272,000 Robbins & Myers Inc., Sub. Deb. Cv.,
8.000%, 01/31/08 ............. 1,335,600
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FOOD AND BEVERAGE -- 0.4%
1,000,000 Parmalat Capital, Cv.,
Zero Coupon, 12/31/05+ (c) ... 220,692
1,000,000 Parmalat Netherlands BV, Cv.,
Zero Coupon, 06/30/21+ (c) ... 366,391
-----------
587,083
-----------
HEALTH CARE -- 0.3%
100,000 Apogent Technologies Inc., Cv.,
2.250%, 10/15/21 ............. 108,000
400,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 (b) ......... 398,000
150,000 Sabratek Corp., Sub. Deb. Cv.,
6.000%, 04/15/05+ (a)(c) ..... 0
-----------
506,000
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HOTELS AND GAMING -- 0.0%
10,000 Wynn Resorts, Sub. Deb. Cv.,
6.000%, 07/15/15 (b) ......... 24,125
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MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.1%
100,000 Fleetwood Enterprises Inc., Cv.,
5.000%, 12/15/23 (b) ......... 156,375
-----------
2
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
--------- ------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
REAL ESTATE -- 1.0%
$1,550,000 Palm Harbor Homes Inc., Cv.,
3.250%, 05/15/24 (b) ......... $ 1,486,063
-----------
RETAIL -- 0.0%
60,000 Costco Companies Inc., Sub. Deb. Cv.,
Zero Coupon, 08/19/17+ ....... 57,000
-----------
TELECOMMUNICATIONS -- 0.4%
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23 (b) ......... 50,563
500,000 Rogers Communications Inc., Deb. Cv.,
2.000%, 11/26/05 ............. 483,125
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533,688
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TRANSPORTATION -- 0.4%
500,000 GATX Corp., Cv.,
7.500%, 02/01/07 (b) ......... 570,000
-----------
WIRELESS COMMUNICATIONS -- 1.0%
1,500,000 Nextel Communications Inc., Cv.,
5.250%, 01/15/10 ............. 1,501,875
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TOTAL CONVERTIBLE
CORPORATE BONDS .............. 42,835,933
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SHARES
------
CONVERTIBLE PREFERRED STOCKS -- 14.6%
AEROSPACE -- 0.7%
8,000 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B ...... 1,048,000
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AUTOMOTIVE -- 0.5%
3,000 Ford Motor Co. Capital Trust II,
6.500% Cv. Pfd. .............. 156,840
General Motors Corp.,
12,000 5.250% Cv. Pfd., Ser. B ...... 286,920
9,000 4.500% Cv. Pfd., Ser. A ...... 228,690
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672,450
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AVIATION: PARTS AND SERVICES -- 3.7%
49,000 Coltec Capital Trust,
5.250% Cv. Pfd. .............. 2,192,750
33,500 Sequa Corp.,
$5.00 Cv. Pfd. ............... 3,232,750
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5,425,500
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MARKET
SHARES VALUE*
------ ------
BROADCASTING -- 3.4%
100 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C (a) .. $ 1,020,000
100,000 Sinclair Broadcast Group Inc.,
6.000% Cv. Pfd., Ser. D ...... 4,023,000
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5,043,000
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BUSINESS SERVICES -- 0.8%
15,133 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A (a) .. 1,222,722
20,000 Key3Media Group,
5.500% Cv. Pfd. (a) .......... 117
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1,222,839
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CABLE AND SATELLITE -- 0.9%
65,000 CVC Equity Securities Trust I,
6.500% Cv. Pfd. .............. 1,356,550
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COMMUNICATIONS EQUIPMENT -- 0.7%
800 Lucent Technologies Capital Trust I,
7.750% Cv. Pfd. .............. 960,000
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DIVERSIFIED INDUSTRIAL -- 0.3%
WHX Corp.,
52,100 $3.75 Cv. Pfd., Ser. B+ ...... 260,500
28,000 6.500% Cv. Pfd., Ser. A+ ..... 137,200
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397,700
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ENERGY AND UTILITIES -- 0.4%
6,000 AES Trust III,
6.750% Cv. Pfd. .............. 265,740
500 Cinergy Corp.,
9.500% Cv. Pfd. .............. 30,530
4,000 FPL Group Inc.,
8.500% Cv. Pfd. .............. 227,600
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523,870
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ENTERTAINMENT -- 1.8%
2,000 Metromedia International Group Inc.,
7.250% Cv. Pfd.+ ............. 29,400
76,900 Rainbow Equity Securities Trust II,
6.250% Cv. Pfd. .............. 1,724,867
45,000 Six Flags Inc.,
7.250% Cv. Pfd. .............. 927,000
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2,681,267
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TELECOMMUNICATIONS -- 1.0%
4,000 ALLTEL Corp.,
7.750% Cv. Pfd. .............. 207,040
15,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B ...... 630,000
12,000 Philippine Long Distance Telephone Co.,
$3.50 Cv. Pfd., Ser. III ..... 599,700
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1,436,740
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3
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
MARKET
SHARES VALUE*
------ ------
CONVERTIBLE PREFERRED STOCKS (CONTINUED)
TRANSPORTATION -- 0.2%
2,700 GATX Corp.,
$2.50 Cv. Pfd. ............... $ 337,500
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WIRELESS COMMUNICATIONS -- 0.2%
2,000 Andrew Corp.,
7.750% Cv. Pfd., Ser. A ...... 342,000
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TOTAL CONVERTIBLE
PREFERRED STOCKS ............. 21,447,416
-----------
COMMON STOCKS -- 24.2%
AEROSPACE -- 0.5%
55,000 Titan Corp.+ ................... 768,350
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AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.8%
30,000 Genuine Parts Co. .............. 1,151,400
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AVIATION: PARTS AND SERVICES -- 0.0%
5,000 Kaman Corp., Cl. A ............. 59,700
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CABLE AND SATELLITE -- 0.9%
30,000 Cox Communications Inc.,
Cl. A+ ....................... 993,900
5,000 DIRECTV Group Inc.+ ............ 87,950
5,000 EchoStar Communications
Corp., Cl. A+ ................ 155,600
19,500 Loral Space &
Communications Ltd.+ ......... 975
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1,238,425
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ENERGY AND UTILITIES -- 6.3%
8,000 BP plc, ADR .................... 460,240
3,000 CH Energy Group Inc. ........... 137,400
8,000 ConocoPhillips ................. 662,800
50,000 Duke Energy Corp. .............. 1,144,500
25,000 Exxon Mobil Corp. .............. 1,208,250
10,000 FPL Group Inc. ................. 683,200
20,000 Great Plains Energy Inc. ....... 583,000
10,000 KeySpan Corp. .................. 392,000
10,000 NiSource Inc. (SAILS)+ ......... 25,500
40,000 Northeast Utilities ............ 775,600
10,000 Progress Energy Inc., CVO+ ..... 1,600
20,000 Royal Dutch Petroleum Co. ...... 1,032,000
10,000 SEMCO Energy Inc. .............. 54,900
8,000 SJW Corp. ...................... 264,160
40,000 Unisource Energy Corp. ......... 974,000
50,000 Xcel Energy Inc. ............... 866,000
-----------
9,265,150
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FINANCIAL SERVICES -- 1.5%
32,000 Alliance Capital Management
Holding LP ................... 1,136,000
12,000 Argonaut Group Inc.+ ........... 224,040
20,000 Citigroup Inc. ................. 882,400
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2,242,440
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MARKET
SHARES VALUE*
------ ------
FOOD AND BEVERAGE -- 4.0%
3,000 Allied Domecq plc, ADR ......... $ 102,840
5,000 Cadbury Schweppes plc, ADR ..... 154,550
8,000 Coca-Cola Co. .................. 320,400
65,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A ......... 5,198,115
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5,775,905
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HEALTH CARE -- 2.1%
12,000 Bristol-Myers Squibb Co. ....... 284,040
6,000 Eli Lilly & Co. ................ 360,300
20,000 Merck & Co. Inc. ............... 660,000
45,000 Pfizer Inc. .................... 1,377,000
18,000 Schering-Plough Corp. .......... 343,080
-----------
3,024,420
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HOTELS AND GAMING -- 0.8%
100,000 Hilton Group plc ............... 500,796
60,000 Prime Hospitality Corp.+ ....... 730,200
-----------
1,230,996
-----------
REAL ESTATE -- 0.1%
3,000 LNR Property Corp. ............. 185,730
-----------
REAL ESTATE INVESTMENT TRUSTS -- 1.9%
42,500 Rouse Co. ...................... 2,842,400
-----------
RETAIL -- 0.7%
25,000 Albertson's Inc. ............... 598,250
20,000 Safeway Inc.+ .................. 386,200
-----------
984,450
-----------
TELECOMMUNICATIONS -- 1.1%
20,000 AT&T Corp. ..................... 286,400
3,000 BellSouth Corp. ................ 81,360
15,000 Manitoba Telecom Services Inc. . 503,022
10,000 MCI Inc. ....................... 167,500
5,000 SBC Communications Inc. ........ 129,750
10,000 Verizon Communications Inc. .... 393,800
-----------
1,561,832
-----------
WIRELESS COMMUNICATIONS -- 3.5%
350,000 AT&T Wireless Services Inc.+ ... 5,173,000
49 Winstar Communications Inc.+ ... 0
-----------
5,173,000
-----------
TOTAL COMMON STOCKS ............ 35,504,198
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4
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
MARKET
SHARES VALUE*
------ ------
PREFERRED STOCKS -- 1.3%
BROADCASTING -- 0.6%
2,127 Granite Broadcasting Corp.,
12.750% Pfd.+ ................$ 872,070
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EQUIPMENT AND SUPPLIES -- 0.5%
30,000 Fedders Corp.,
8.600% Pfd., Ser. A .......... 709,500
------------
PUBLISHING -- 0.2%
9,777 News Corp. Ltd., Pfd., ADR ..... 306,313
------------
TELECOMMUNICATIONS -- 0.0%
3,773 PTV Inc., 10.000% Pfd., Ser. A . 19,714
------------
TOTAL PREFERRED STOCKS ......... 1,907,597
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PRINCIPAL
AMOUNT
--------
CORPORATE BONDS -- 1.0%
DIVERSIFIED INDUSTRIAL -- 1.0%
$ 2,000,000 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a) ......... 1,377,950
------------
TELECOMMUNICATIONS -- 0.0%
80,000 Amnex Inc., Sub. Deb.,
Zero Coupon, 09/25/49+ (b)(c) 0
------------
TOTAL CORPORATE BONDS .......... 1,377,950
------------
SHARES
------
WARRANTS -- 0.4%
BUSINESS SERVICES -- 0.0%
87,500 Interep National Radio
Sales Inc.+ .................. 0
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CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp., expires
11/24/09+ .................... 1
------------
DIVERSIFIED INDUSTRIAL -- 0.4%
250,000 GP Strategies Corp.,
expires 08/14/08+ (a) ........ 637,065
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TOTAL WARRANTS ................. 637,066
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PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 29.3%
$42,899,000 U.S. Treasury Bills,
1.116% to 1.705%++,
10/07/04 to 12/30/04 ......... 42,846,442
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $144,809,837) ...................... 146,556,602
LIABILITIES IN EXCESS OF OTHER ASSETS ...... (1,624,465)
------------
PREFERRED STOCK
(991,800 preferred shares outstanding) ... (49,770,000)
------------
NET ASSETS -- COMMON STOCK
(11,640,691 common shares outstanding) ...$ 95,162,137
============
NET ASSET VALUE PER COMMON SHARE
($95,162,137 / 11,641,449
shares outstanding) ...................... $8.17
=====
--------------
For Federal tax purposes:
Aggregate cost ....................$145,345,396
============
Gross unrealized appreciation .....$ 6,987,167
Gross unrealized depreciation ..... (5,775,961)
------------
Net unrealized appreciation
(depreciation) ..................$ 1,211,206
============
--------------
(a) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At September 30, 2004,
the market value of fair valued securities amounted to $4,257,854 or
2.9% 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
September 30, 2004, the market value of Rule 144A securities amounted to
$2,818,651 or 1.9% of total investments. At September 30, 2004, the Fund
held investments in restricted and illiquid securities that were valued
under approved methods by the Board, as follows:
ACQUISITION
SHARES ISSUER DATE COST VALUE
------ ------ ----------- ------ ------
10,000 Artesyn Technologies,
Sub. Deb. Cv.,
5.500%, 08/15/10 ............ 08/15/03 $ 10,715 $ 15,775
400,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 ............ 09/21/01 348,353 398,000
10,000 Wynn Resorts,
Sub. Deb. Cv.,
6.000%, 07/15/15 ............ 07/14/03 10,263 24,125
100,000 Fleetwood Enterprises
Inc., Cv.,
5.000%, 12/15/23 ............ 12/17/03 100,000 156,375
50,000 Commonwealth Telephone
Enterprises Inc.,
Cv., 3.250%, 07/15/23 ....... 07/29/03 49,642 50,563
--------
TOTAL RESTRICTED SECURITIES
(0.44% OF TOTAL INVESTMENTS) .............................. $644,838
========
(c) Bond in default.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
CVO - Contingent Value Obligation.
SAILS - Stock Appreciation Income Linked Securities.
* Portfolio securities are valued at the last quoted sale price or closing
values. If this is unavailable, then the average of the closing bid and
asked prices is used. If there is no asked price, the security is valued
at the closing bid price on that day. Debt instruments are valued at the
average of the closing bid and asked prices. If the security matures in
60 days or less and is not credit-impaired, it is valued at amortized
cost. All securities and assets for which market quotations are not
readily available or any security that the Board determines does not
reflect its fair market value are valued in good faith under procedures
established by the Board.
5
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Gabelli Convertible and Income Securities Fund Inc.
-------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date November 26, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal
Executive Officer & Principal
Financial Officer
Date November 26, 2004
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.