The Gabelli Convertible and Income Securities Fund Inc.
Schedule of Investments (Continued) June 30, 2020 (Unaudited)
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Shares
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Cost
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Market
Value
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COMMON STOCKS (Continued)
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Communications Equipment 1.6%
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8,113
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American Tower Corp., REIT
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$
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941,239
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$
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2,097,535
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Computer Hardware 0.2%
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1,800
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International Business Machines Corp.
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159,709
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217,386
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Computer Software and Services 1.4%
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8,987
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Alibaba Group Holding Ltd., ADR
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1,344,455
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1,938,496
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Consumer Products 0.7%
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14,000
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Swedish Match AB
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298,399
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984,096
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Energy and Utilities 0.2%
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515,000
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Bristow Group Inc., Escrow(c)
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0
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0
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1,000
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Chevron Corp.
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57,120
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89,230
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12,000
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The AES Corp.
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138,517
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173,880
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195,637
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263,110
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Equipment and Supplies 0.0%
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1,200
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Mueller Industries Inc.
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40,848
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31,896
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Financial Services 2.7%
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2,500
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American Express Co.
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221,594
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238,000
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4,500
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Bank of America Corp.
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126,347
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106,875
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1,700
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Citigroup Inc.
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93,772
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86,870
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2,000
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JPMorgan Chase & Co.
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88,838
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188,120
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5,000
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Julius Baer Group Ltd.
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144,028
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209,246
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2,000
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Morgan Stanley
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64,227
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96,600
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9,000
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State Street Corp.
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413,587
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571,950
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20,000
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The Bank of New York Mellon Corp.
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533,344
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773,000
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9,500
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The PNC Financial Services Group Inc.
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496,575
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999,495
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14,000
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Wells Fargo & Co.
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429,273
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358,400
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2,611,585
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3,628,556
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Food and Beverage 0.4%
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6,000
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Maple Leaf Foods Inc.
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115,566
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126,002
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1,500
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Pernod Ricard SA
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130,352
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236,018
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1,500
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Remy Cointreau SA
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141,963
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204,251
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387,881
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566,271
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Health Care 1.2%
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2,000
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Bristol-Myers Squibb Co
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114,260
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117,600
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500,000
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Elite Pharmaceuticals Inc.
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66,824
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41,500
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1,000
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Johnson & Johnson
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111,887
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140,630
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1,500
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Merck & Co. Inc.
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49,950
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115,995
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28,500
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Roche Holding AG, ADR
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705,354
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1,236,330
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1,048,275
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1,652,055
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Retail 0.2%
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800
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Costco Wholesale Corp.
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34,140
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242,568
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Shares
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Cost
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Market
Value
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Telecommunications 0.8%
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1,000
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Swisscom AG
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$
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366,379
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$
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523,405
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10,000
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Verizon Communications Inc.
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461,829
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551,300
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828,208
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1,074,705
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Transportation 0.1%
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1,000
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GATX Corp.
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33,964
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60,980
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Wireless Communications 1.8%
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22,566
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T-Mobile US Inc.
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953,116
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2,350,249
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TOTAL COMMON STOCKS
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9,132,318
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15,412,263
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RIGHTS 0.0%
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Wireless Communications 0.0%
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22,566
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T-Mobile US Inc., expire 07/27/20
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0
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3,791
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Principal
Amount
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U.S. GOVERNMENT OBLIGATIONS 5.7%
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$7,705,000
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U.S. Treasury Bills,
0.050% to 0.164%, 08/20/20 to 09/24/20
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7,703,247
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7,703,195
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TOTAL INVESTMENTS 100.0%
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$
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118,725,019
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134,718,438
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Other Assets and Liabilities (Net)
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407,475
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PREFERRED STOCK
(337,600 preferred shares outstanding)
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(33,760,000
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)
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NET ASSETS COMMON STOCK
(18,821,385 common shares outstanding)
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$
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101,365,913
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NET ASSET VALUE PER COMMON SHARE
($101,365,913 ÷ 18,821,385 shares
outstanding)
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$
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5.39
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(a)
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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.
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(b)
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Mandatory convertible securities are required to be converted on the dates listed; they generally may be
converted prior to these dates at the option of the holder.
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(c)
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Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value
hierarchy.
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Non-income producing security.
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Represents annualized yields at dates of purchase.
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ADR
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American Depositary Receipt
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REIT
|
Real Estate Investment Trust
|
See accompanying notes to
financial statements.
7
The Gabelli Convertible and Income Securities Fund Inc.
Statement of Assets and Liabilities
June 30, 2020 (Unaudited)
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Assets:
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Investments, at value (cost $118,725,019)
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$
|
134,718,438
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|
Foreign currency, at value (cost $596)
|
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|
601
|
|
Cash
|
|
|
2,797
|
|
Deposit at brokers
|
|
|
50
|
|
Dividends and interest receivable
|
|
|
500,998
|
|
Deferred offering expense
|
|
|
238,934
|
|
Prepaid expenses
|
|
|
1,674
|
|
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Total Assets
|
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|
135,463,492
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|
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Liabilities:
|
|
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Distributions payable
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|
18,756
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|
Payable for investment advisory fees
|
|
|
110,933
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|
Payable for payroll expenses
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|
|
21,700
|
|
Payable for accounting fees
|
|
|
11,250
|
|
Series E Cumulative Preferred Stock (4.00%, $100 liquidation value, $0.001 par value, 350,000 shares
authorized with 337,600 shares issued and outstanding) (See Notes 2 and 5)
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|
33,760,000
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|
Other accrued expenses
|
|
|
174,940
|
|
|
|
|
|
|
Total Liabilities
|
|
|
34,097,579
|
|
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Net Assets Attributable to Common Stockholders
|
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$
|
101,365,913
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Net Assets Attributable to Common Stockholders Consist of:
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|
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Paid-in capital
|
|
$
|
85,702,247
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Total distributable earnings
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|
15,663,666
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|
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Net Assets
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$
|
101,365,913
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Net Asset Value per Common Share:
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($101,365,913 ÷ 18,821,385 shares outstanding at $0.001 par value; 998,000,000 shares
authorized)
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|
$5.39
|
|
Statement of Operations
For the Six Months Ended June 30, 2020 (Unaudited)
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|
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Investment Income:
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|
|
|
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Dividends (net of foreign withholding taxes of $14,972)
|
|
$
|
905,915
|
|
Interest
|
|
|
729,495
|
|
|
|
|
|
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Total Investment Income
|
|
|
1,635,410
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Investment advisory fees
|
|
|
667,217
|
|
Interest expense on preferred stock
|
|
|
694,076
|
|
Stockholder communications expenses
|
|
|
47,106
|
|
Directors fees
|
|
|
40,528
|
|
Payroll expenses
|
|
|
38,477
|
|
Legal and audit fees
|
|
|
35,123
|
|
Stockholder services fees
|
|
|
28,559
|
|
Accounting fees
|
|
|
22,500
|
|
Shelf registration expense
|
|
|
16,169
|
|
Custodian fees
|
|
|
7,726
|
|
Interest expense
|
|
|
106
|
|
Miscellaneous expenses
|
|
|
44,627
|
|
|
|
|
|
|
Total Expenses
|
|
|
1,642,214
|
|
|
|
|
|
|
Less:
|
|
|
|
|
Expenses paid indirectly by broker (See Note 3)
|
|
|
(1,012
|
)
|
|
|
|
|
|
Net Expenses
|
|
|
1,641,202
|
|
|
|
|
|
|
Net Investment Loss
|
|
|
(5,792
|
)
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
|
|
|
|
|
Net realized gain on investments
|
|
|
4,920,245
|
|
Net realized gain on foreign currency transactions
|
|
|
236
|
|
|
|
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
4,920,481
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation:
|
|
|
|
|
on investments
|
|
|
(5,878,545
|
)
|
on foreign currency translations
|
|
|
181
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency
translations
|
|
|
(5,878,364
|
)
|
|
|
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency
|
|
|
(957,883
|
)
|
|
|
|
|
|
Net Decrease in Net Assets Attributable to Common Stockholders Resulting from
Operations
|
|
$
|
(963,675
|
)
|
|
|
|
|
|
See accompanying notes to
financial statements.
8
The Gabelli Convertible and Income Securities Fund Inc.
Statement of Changes in Net Assets Attributable to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
2020
(Unaudited)
|
|
Year
Ended
December 31, 2019
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
Net investment income/(loss)
|
|
|
$
|
(5,792
|
)
|
|
|
$
|
1,188,946
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
|
4,920,481
|
|
|
|
|
8,528,052
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency
translations
|
|
|
|
(5,878,364
|
)
|
|
|
|
16,444,591
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Resulting from Operations
|
|
|
|
(963,675
|
)
|
|
|
|
26,161,589
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Preferred Stockholders
|
|
|
|
|
|
|
|
|
(1,275,360
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from
Operations
|
|
|
|
(963,675
|
)
|
|
|
|
24,886,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
|
(4,517,132
|
)*
|
|
|
|
(8,396,913
|
)
|
Return of capital
|
|
|
|
|
|
|
|
|
(606,699
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Distributions to Common Stockholders
|
|
|
|
(4,517,132
|
)
|
|
|
|
(9,003,612
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from common shares issued upon reinvestment of distributions
|
|
|
|
|
|
|
|
|
360,817
|
|
Offering costs for common shares charged to paid-in
capital
|
|
|
|
|
|
|
|
|
58,236
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets from Fund Share Transactions
|
|
|
|
|
|
|
|
|
419,053
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders
|
|
|
|
(5,480,807
|
)
|
|
|
|
16,301,670
|
|
|
|
|
Net Assets Attributable to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
106,846,720
|
|
|
|
|
90,545,050
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period
|
|
|
$
|
101,365,913
|
|
|
|
$
|
106,846,720
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Based on year to date book income. Amounts are subject to change and recharacterization at year end.
|
See accompanying notes to
financial statements.
9
The Gabelli Convertible and Income Securities Fund Inc.
Statement of Cash Flows
For the Six Months Ended
June 30, 2020 (Unaudited)
|
|
|
|
|
Net decrease in net assets attributable to common stockholders resulting from operations
|
|
$
|
(963,675
|
)
|
|
Adjustments to Reconcile Net Decrease in Net Assets Resulting from Operations to Net
Cash from Operating Activities:
|
|
Purchase of long term investment securities.
|
|
|
(40,662,401
|
)
|
Proceeds from sales of long term investment securities
|
|
|
43,341,743
|
|
Net purchases of short term investment securities
|
|
|
3,442,088
|
|
Net realized gain on investments
|
|
|
(4,920,245
|
)
|
Net change in unrealized appreciation/depreciation on investments
|
|
|
5,878,545
|
|
Net amortization of discount
|
|
|
19,918
|
|
Increase in receivable for investments sold.
|
|
|
212,081
|
|
Decrease in dividends and interest receivable
|
|
|
73,460
|
|
Decrease in deferred offering expense
|
|
|
16,169
|
|
Increase in prepaid expenses
|
|
|
(359
|
)
|
Increase in payable for investments purchased
|
|
|
(1,748,749
|
)
|
Decrease in distributions payable
|
|
|
(688
|
)
|
Increase in payable for investment advisory fees
|
|
|
2,925
|
|
Decrease in payable for payroll expenses
|
|
|
(7,395
|
)
|
Increase in other accrued expenses
|
|
|
63,485
|
|
|
|
|
|
|
Net cash provided by operating activities:
|
|
|
4,746,902
|
|
|
|
|
|
|
Net decrease in net assets resulting from financing activities:
|
|
|
|
|
Distributions to Common Stockholders.
|
|
|
(4,517,132
|
)
|
Redemption of Series E 4.000% Cumulative Preferred Stock
|
|
|
(1,240,000
|
)
|
|
|
|
|
|
Net cash provided used in financing activities
|
|
|
(5,757,132
|
)
|
|
|
|
|
|
Net decrease in cash
|
|
|
(1,010,230
|
)
|
|
|
|
|
|
Cash (including foreign currency):
|
|
|
|
|
Beginning of year
|
|
|
1,013,678
|
|
|
|
|
|
|
End of period
|
|
$
|
3,448
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information:
|
|
|
|
|
Interest paid on preferred stock
|
|
$
|
694,764
|
|
Interest paid on bank overdrafts
|
|
$
|
106
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of cash, cash held at broker, and foreign currency
reported within the Statement of Assets and Liabilities that sum to the total of the same amount above at June 30, 2020:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,797
|
|
Foreign currency, at value
|
|
|
601
|
|
Cash held at broker
|
|
|
50
|
|
|
|
|
|
|
|
|
$
|
3,448
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
10
The Gabelli Convertible and Income Securities Fund Inc.
Financial Highlights
Selected data for a common share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
|
Year Ended December 31,
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Operating Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
|
|
|
|
$
|
5.68
|
|
|
|
|
|
|
$
|
4.83
|
|
|
|
|
|
|
$
|
5.57
|
|
|
|
|
|
|
$
|
5.30
|
|
|
|
|
|
|
$
|
5.30
|
|
|
|
|
|
|
$
|
6.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
0.06
|
|
|
|
|
|
|
|
0.09
|
|
|
|
|
|
|
|
0.09
|
|
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
|
0.07
|
|
Net realized and unrealized gain/(loss) on investments, securities sold short, swap contracts, and
foreign currency transactions
|
|
|
|
|
|
|
0.16
|
|
|
|
|
|
|
|
1.34
|
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
0.77
|
|
|
|
|
|
|
|
0.39
|
|
|
|
|
|
|
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
|
|
1.40
|
|
|
|
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
0.86
|
|
|
|
|
|
|
|
0.51
|
|
|
|
|
|
|
|
(0.21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Preferred Stockholders: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
(0.01
|
)
|
Net realized gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from
Operations
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
|
|
1.33
|
|
|
|
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
0.75
|
|
|
|
|
|
|
|
0.41
|
|
|
|
|
|
|
|
(0.31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
(0.05
|
)*
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
(0.05
|
)
|
Net realized gain
|
|
|
|
|
|
|
(0.43
|
)*
|
|
|
|
|
|
|
(0.37
|
)
|
|
|
|
|
|
|
(0.38
|
)
|
|
|
|
|
|
|
(0.36
|
)
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.32
|
)
|
Return of capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to common stockholders
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
(0.41
|
)
|
|
|
|
|
|
|
(0.48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in net asset value from common share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)(b)
|
Decrease in net asset value from common shares issued in rights offering
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset value from common shares issued upon reinvestment of distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering costs for common shares charged to paid-in
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fund share transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
(b)
|
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Attributable to Common Stockholders, End of Period
|
|
|
|
|
|
$
|
5.39
|
|
|
|
|
|
|
$
|
5.68
|
|
|
|
|
|
|
$
|
4.83
|
|
|
|
|
|
|
$
|
5.57
|
|
|
|
|
|
|
$
|
5.30
|
|
|
|
|
|
|
$
|
5.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV total return
|
|
|
|
|
|
|
(0.20
|
)%
|
|
|
|
|
|
|
28.40
|
%
|
|
|
|
|
|
|
(5.08
|
)%
|
|
|
|
|
|
|
14.59
|
%
|
|
|
|
|
|
|
8.34
|
%
|
|
|
|
|
|
|
(5.39
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period
|
|
|
|
|
|
$
|
5.12
|
|
|
|
|
|
|
$
|
5.85
|
|
|
|
|
|
|
$
|
4.39
|
|
|
|
|
|
|
$
|
5.90
|
|
|
|
|
|
|
$
|
4.69
|
|
|
|
|
|
|
$
|
4.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment total return
|
|
|
|
|
|
|
(8.03
|
)%
|
|
|
|
|
|
|
45.68
|
%
|
|
|
|
|
|
|
(14.12
|
)%
|
|
|
|
|
|
|
37.53
|
%
|
|
|
|
|
|
|
6.97
|
%
|
|
|
|
|
|
|
(14.18
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
11
The Gabelli Convertible and Income Securities Fund Inc.
Financial Highlights (Continued)
Selected data for a common share outstanding throughout each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020
|
|
|
Year Ended December 31,
|
|
|
|
(Unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Ratios to Average net assets and Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets including liquidation value of preferred shares, end of period (in 000s)
|
|
|
$135,126
|
|
|
|
$141,847
|
|
|
|
$114,684
|
|
|
|
$103,445
|
|
|
|
$98,733
|
|
|
|
$98,742
|
|
Net assets attributable to common shares, end of period (in 000s)
|
|
|
$101,366
|
|
|
|
$106,847
|
|
|
|
$90,545
|
|
|
|
$ 79,306
|
|
|
|
$74,594
|
|
|
|
$74,603
|
|
Ratio of net investment income (loss) to average net assets attributable to common shares before
preferred share distributions
|
|
|
(0.01
|
)%(c)
|
|
|
1.17
|
%
|
|
|
1.37
|
%
|
|
|
1.56
|
%
|
|
|
2.37
|
%
|
|
|
1.19
|
%
|
Ratio of operating expenses to average net assets attributable to common shares before fees waived
(d)(e)
|
|
|
3.32
|
%(c)(f)
|
|
|
2.06
|
%(f)
|
|
|
1.89
|
%
|
|
|
1.96
|
%
|
|
|
1.95
|
%(g)(h)
|
|
|
1.88
|
%(g)
|
Ratio of operating expenses to average net assets attributable to common shares net of advisory fee
reduction, if any (d)(i)
|
|
|
3.32
|
%(c)(f)
|
|
|
2.06
|
%(f)
|
|
|
1.60
|
%
|
|
|
1.96
|
%
|
|
|
1.95
|
%(g)(h)
|
|
|
1.59
|
%(g)
|
Portfolio turnover rate
|
|
|
26
|
%
|
|
|
45
|
%
|
|
|
42
|
%
|
|
|
27
|
%
|
|
|
71
|
%
|
|
|
24
|
%
|
Cumulative Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000% Series B Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000s)
|
|
|
|
|
|
|
|
|
|
|
$ 24,139
|
|
|
|
$ 24,139
|
|
|
|
$24,139
|
|
|
|
$24,139
|
|
Total shares outstanding (in 000s)
|
|
|
|
|
|
|
|
|
|
|
966
|
|
|
|
966
|
|
|
|
966
|
|
|
|
966
|
|
Liquidation preference per share
|
|
|
|
|
|
|
|
|
|
|
$ 25.00
|
|
|
|
$ 25.00
|
|
|
|
$ 25.00
|
|
|
|
$ 25.00
|
|
Average market value (j)
|
|
|
|
|
|
|
|
|
|
|
$ 25.91
|
|
|
|
$ 26.45
|
|
|
|
$ 26.52
|
|
|
|
$ 25.81
|
|
Asset coverage per share
|
|
|
|
|
|
|
|
|
|
|
$ 118.78
|
|
|
|
$ 107.14
|
|
|
|
$102.26
|
|
|
|
$102.26
|
|
4.000% Series E Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000s)
|
|
|
$ 33,760
|
|
|
|
$ 35,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares outstanding (in 000s)
|
|
|
338
|
|
|
|
350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation preference per share
|
|
|
$ 100.00
|
|
|
|
$ 100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average market value (k)
|
|
|
$ 100.00
|
|
|
|
$ 100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per share
|
|
|
$ 400.25
|
|
|
|
$ 405.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Coverage
|
|
|
400
|
%
|
|
|
405
|
%
|
|
|
475
|
%
|
|
|
429
|
%
|
|
|
409
|
%
|
|
|
409
|
%
|
|
Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share
on the ex-dividend dates. Total return for a period of less than one year is not annualized.
|
|
Based on market value per share, adjusted for reinvestment of distributions at prices determined under the
Funds dividend reinvestment plan. Total return for a period of less than one year is not annualized.
|
*
|
Based on year to date book income. Amounts are subject to change and recharacterization at year end.
|
(a)
|
Calculated based on average common shares outstanding on the record dates throughout the years.
|
(b)
|
Amount represents less than $0.005 per share.
|
(d)
|
The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all
periods presented there was no impact on the expense ratios.
|
(e)
|
Ratio of operating expenses to average net assets including liquidation value of preferred shares before fee
waived for the six months ended June 30, 2020 and years ended December 31, 2019, 2018, 2017, 2016, and 2015 would have been 2.46%, 1.61%, 1.47%, 1.50%, 1.46%, and 1.46%, respectively.
|
(f)
|
The Fund incurred interest expense on the Series E Preferred Shares issued October 16, 2019. (see Footnotes
2 and 5).
|
(g)
|
The Fund incurred dividend expenses on securities sold short. If this expense had not been incurred, the expense
ratios for the year ended December 31, 2015 would have been 1.87% attributable to common shares before fees waived, 1.57% attributable to common shares net of advisory fee reduction, 1.44% including liquidation value of preferred shares before
fees waived, and 1.22% including liquidation value of preferred shares net of advisory fee reduction. For the year ended December 31, 2016, the impact was minimal.
|
(h)
|
During the year ended December 31, 2016, the Fund received a one time reimbursement of custody expenses
paid in prior years. Had such reimbursement been included in this period, the expenses ratios would have been 1.69% attributable to common shares before fees waived, 1.69% attributable to common shares net of advisory fee reduction, 1.26% including
liquidation value of preferred shares before fees waived, and 1.26% including liquidation value of preferred shares net of advisory fee reduction.
|
See accompanying notes to
financial statements.
12
The Gabelli Convertible and Income Securities Fund Inc.
Financial Highlights (Continued)
Selected data for a common share outstanding throughout each period:
(i)
|
Ratio of operating expenses to average net assets including liquidation value of preferred shares net of
advisory fee reduction for the six months ended June 30, 2020 and years ended December 31, 2019, 2018, 2017, 2016, and 2015 would have been 2.46%, 1.61%, 1.24%, 1.50%, 1.46%, and 1.23%, respectively.
|
(j)
|
Based on weekly prices.
|
(k)
|
The Series E Preferred is a private placement and is not listed on an exchange, nor does the Fund expect a
secondary market to develop. The average market price shown is the $100 liquidation preference of the Series E Preferred.
|
See accompanying notes to
financial statements.
13
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited)
1. Organization. The Gabelli Convertible and Income Securities Fund Inc. is a diversified
closed-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act), whose investment objective is to seek a high level of total return through a combination
of current income and capital appreciation by investing in convertible securities. The Fund was incorporated in Maryland on December 19, 1988 as a diversified open-end management investment company and
commenced investment operations on July 3, 1989 as The Gabelli Convertible Securities Fund, Inc. At a special meeting of stockholders held on February 17, 1995, the Board of Directors (the Board) voted to approve the conversion of the Fund
to closed-end status, effective March 31, 1995.
2. Significant Accounting Policies. As an
investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation
of its financial statements. 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 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
obligations 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 securities are valued using the closing bid price, 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. Certain securities are valued principally using dealer quotations. Futures contracts are valued
at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market quotations are readily available will be valued by quotations received from a pricing
service or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in question by the Adviser.
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.
14
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
dollar value American Depositary Receipt 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.
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 Boards 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 June 30, 2020 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs
|
|
|
|
|
|
|
Level 1
Quoted Prices
|
|
|
Level 2 Other Significant
Observable Inputs
|
|
|
Level 3 Significant
Unobservable Inputs
|
|
|
Total Market Value
at 6/30/20
|
|
INVESTMENTS IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible Corporate Bonds (a)
|
|
|
|
|
|
$
|
87,056,772
|
|
|
|
|
|
|
$
|
87,056,772
|
|
Convertible Preferred Stocks (a)
|
|
$
|
3,656,353
|
|
|
|
|
|
|
|
|
|
|
|
3,656,353
|
|
Mandatory Convertible Securities (a)
|
|
|
19,268,707
|
|
|
|
1,617,357
|
|
|
|
|
|
|
|
20,886,064
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities
|
|
|
263,110
|
|
|
|
|
|
|
$
|
0
|
|
|
|
263,110
|
|
Other Industries (a)
|
|
|
15,149,153
|
|
|
|
|
|
|
|
|
|
|
|
15,149,153
|
|
Total Common Stock
|
|
|
15,412,263
|
|
|
|
|
|
|
|
0
|
|
|
|
15,412,263
|
|
Rights (a)
|
|
|
3,791
|
|
|
|
|
|
|
|
|
|
|
|
3,791
|
|
U.S. Government Obligations
|
|
|
|
|
|
|
7,703,195
|
|
|
|
|
|
|
|
7,703,195
|
|
TOTAL INVESTMENTS IN SECURITIES ASSETS
|
|
$
|
38,341,114
|
|
|
$
|
96,377,324
|
|
|
$
|
0
|
|
|
$
|
134,718,438
|
|
(a)
|
Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
|
During the six months ended June 30, 2020, the Fund did not have material transfers into or out of Level 3.
15
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
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 are 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.
Fair Valuation. Fair valued securities may be
common or preferred equities, warrants, options, rights, or 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. A significant change in the unobservable inputs could result in a lower or higher value in
Level 3 securities. 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 may include
backtesting 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 derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its
portfolio securities and in the value of securities it intends to purchase, 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, 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.
Collateral requirements differ by type of derivative. Collateral requirements are set by the
broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter. Securities
pledged to cover obligations of the Fund under derivative contracts are noted in
16
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be
reported separately in the Statement of Assets and Liabilities.
The Funds policy with respect to offsetting is that, absent an event
of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions
between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.
The Funds
derivative contracts held at June 30, 2020, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.
Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of
increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference
swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be
based on the performance of the shares of a stock. Depending on the general state of short term interest rates and the returns on the Funds portfolio securities at the time an equity contract for difference swap transaction reaches its
scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.
Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and
Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt
or payment of a periodic payment or termination of swap agreements. During the six months ended June 30, 2020, the Fund held no investments in equity contract for difference swap agreements.
Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the
Fund may engage in commodity interest transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in
accordance with the rules and regulations of the Commodity Futures Trading Commission (CFTC). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (CEA), the Adviser has filed a notice of exemption from registration as a
commodity pool operator with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable
to the Fund which permit the Fund to engage in commodity interest transactions that include (i) bona fide hedging transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the
Funds assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona
fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Funds existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market
value of the Funds liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Funds commodity interest transactions would not exceed
100% of the market value of the Funds
17
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
liquidating value, after taking into account unrealized profits and unrealized losses on any
such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and
financial futures contracts). As a result, in the future the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and
on the Funds performance.
Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves
selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded
as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Fund records a realized gain or loss when the short
position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates. At
June 30, 2020, there were no short sales outstanding.
Series E Cumulative Preferred Stock. For financial reporting
purposes only, the liquidation value of preferred stock that has a mandatory call date is classified as a liability within the Statement of Assets and Liabilities and the dividends paid on this preferred stock are included as a component of
Interest expense on preferred stock within the Statement of Operations. Offering costs are amortized over the life of the preferred stock.
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.
18
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
Restricted Securities. The Fund may invest up to 15% 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 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. As of June 30, 2020, the Fund did not hold restricted securities.
Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized
gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an 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.
Custodian Fee Credits. 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.
Distributions to Stockholders. Distributions
to common stockholders are recorded on the ex-dividend date. Distributions to stockholders 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. These reclassifications have no impact on the NAV of the Fund.
Distributions to stockholders of the Funds 4.000% Series E Cumulative Preferred Stock (Series E Preferred) are recorded on a daily basis
and are determined as described in Note 5.
The Fund declares and pays quarterly distributions from net investment income, capital gains, and
paid-in capital. The actual source of the distribution is determined after the end of the year. Distributions during the year may be made in excess of required distributions. To the extent such distributions
are made from current earnings and profits, they are considered ordinary income or long term capital gains. Distributions sourced from paid-in capital should not be considered as dividend yield or the total
return from an investment in the Fund. The Board will continue to monitor the Funds distribution level, taking into consideration the Funds NAV and the financial market environment. The Funds distribution policy is subject to
modification by the Board at any time.
19
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
The tax character of distributions paid during the year ended December 31, 2019 was as
follows:
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|
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Common
|
|
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Preferred
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
Ordinary income (inclusive of short term capital gains)
|
|
$
|
2,326,549
|
|
|
$
|
353,366
|
|
Net long term capital gains.
|
|
|
6,070,364
|
|
|
|
921,994
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|
Return of capital
|
|
|
606,699
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions paid
|
|
$
|
9,003,612
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|
|
$
|
1,275,360
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|
|
|
|
|
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|
|
|
|
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.
The following
summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2020:
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Cost
|
|
Gross
Unrealized
Appreciation
|
|
Gross
Unrealized
Depreciation
|
|
Net
Unrealized
Appreciation
|
Investments
|
|
$118,801,082
|
|
$21,640,477
|
|
$(5,723,121)
|
|
$15,917,356
|
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. During the six months ended June 30, 2020, the Fund
did not incur any income tax, interest, or penalties. As of June 30, 2020, the Adviser has reviewed all open tax years and concluded that there was no impact to the Funds net assets or results of operations. The Funds federal and
state tax returns for the prior three years remain open, subject to examination. 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, equal on an annual basis to 1.00% of the value of its average daily net assets including the liquidation value of preferred stock.
In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Funds portfolio and oversees the administration of all aspects of the Funds business and affairs.
During the six months ended June 30, 2020, the Fund paid $3,119 in brokerage commissions on security trades to G.research, LLC, an affiliate
of the Adviser.
During the six months ended June 30, 2020, the Fund received credits from a designated broker who agreed to pay certain
Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,012.
The
cost of calculating the Funds NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. Under the sub-administration agreement with Bank of New York Mellon,
20
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
the fees paid include the cost of calculating the Funds NAV. The Fund reimburses the
Adviser for this service. During the six months ended June 30, 2020, the Fund accrued $22,500 in accounting fees in the Statement of Operations.
As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser
(although the officers may receive incentive based variable compensation from affiliates of the Adviser). During the six months ended June 30, 2020, the Fund accrued $38,477 in payroll expenses in the Statement of Operations.
The Fund pays each Director who is not considered an affiliated person an annual retainer of $3,000 plus $750 for each Board meeting attended.
Each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Nominating
Committee Chairman receives an annual fee of $2,000, and the Lead Director receives an annual fee of $1,000. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf
of multiple funds. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.
4. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2020, other than short term
securities and U.S. Government obligations, aggregated $32,763,873 and $35,390,756, respectively. Purchases and sales of U.S. Government Obligations during the six months ended June 30, 2020, aggregated $28,601,679 and $32,043,767,
respectively.
5. Capital. The charter permits the Fund to issue 998,000,000 shares of common stock (par value $0.001). The Board has
authorized the repurchase of up to 500,000 common shares on the open market when the shares are trading at a discount of 10% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six
months ended June 30, 2020 and year ended December 31, 2019, the Fund did not repurchase any shares of its common stock in the open market.
For the six months ended June 30, 2020 and year ended December 31, 2019, transactions in common stock were as follows:
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Six Months Ended
June 30, 2020
(Unaudited)
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Year Ended
December 31, 2019
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Shares
|
|
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Amount
|
|
|
Shares
|
|
|
Amount
|
|
Net increase from common shares issued upon reinvestment of distributions
|
|
|
|
|
|
|
|
|
|
|
63,861
|
|
|
$
|
360,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase.
|
|
|
|
|
|
|
|
|
|
|
63,861
|
|
|
$
|
360,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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The Funds Articles of Incorporation authorize the issuance of up to 1,995,000 shares of $0.001 par
value Preferred Stock. The Preferred Stock is senior to the common stock and results in the financial leveraging of the common stock. Such leveraging tends to magnify both the risks and opportunities to common stockholders. Dividends on shares of
the Preferred Stock are cumulative. The Fund is required by the 1940 Act and by the Funds Articles Supplementary to meet certain asset coverage tests with respect to the Preferred Stock. If the Fund fails to meet these requirements and does
not correct such failure, the Fund may be required to redeem, in part or in full, the Series E Preferred at a redemption price of $100 per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in
order to meet these requirements.
21
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
Additionally, failure to meet the foregoing asset coverage requirements could restrict the
Funds ability to pay dividends to common stockholders and could lead to sales of portfolio securities at inopportune times. The income received on the Funds assets may vary in a manner unrelated to the fixed and variable rates, which
could have either a beneficial or detrimental impact on net investment income and gains available to common stockholders.
On March 18,
2003, the Fund received net proceeds of $23,994,241 after underwriting discounts of $787,500 and offering expenses of $218,259 from the public offering of 1,000,000 shares of Series B Preferred. On November 18, 2019, the Fund redeemed and
retired all of the remaining outstanding shares of Series B Preferred.
On October 16, 2019, the Fund issued 350,000 shares of Series E
4.00% Cumulative Preferred Stock (Series E Preferred), receiving $34,900,000 after the deduction of estimated offering expenses of $100,000. The Series E has a liquidation value of $100 per share and an annual dividend rate of 4.00%. The Series E
Preferred is subject to mandatory redemption by the Fund on October 16, 2023. At June 30, 2020, 337,600 shares of Series E Preferred were outstanding and accrued dividends amounted to $18,756.
From April 16, 2020 to October 15, 2020 (the First Put Period), the Fund will accept for redemption, in aggregate, up to 10% of the
outstanding Series E Preferred. From October 16, 2020 to October 15, 2021 (the Second Put Period), the Fund will accept for redemption, in aggregate, up to 20% of the outstanding Series E Preferred, with the number of outstanding Series E
Preferred determined as of October 16, 2020. A Series E Preferred stockholder may, after notice to the Fund 30 days prior to the respective put period, submit one redemption request for part or all of such holdings in each put period, subject
to the respective foregoing percentage limitations. The Fund will redeem such Shares at the liquidation preference plus any accumulated and unpaid dividends. If the capacity limitations for the First Put Period or the Second Put Period are exceeded,
the Fund will redeem the Series E Preferred on a pro rata basis.
During the period from October 16, 2021 to October 15, 2022 (the
Third Put Period), a Series E Preferred stockholder may, with notice 45 days prior to the Fund, submit part or all of such Shares without limitation for redemption at the liquidation preference plus any accumulated and unpaid dividends.
On October 16, 2023, the Fund will redeem any Series E Preferred not previously liquidated at the liquidation preference plus any
accumulated and unpaid dividends.
The proceeds from the issuance of the Series E Preferred were used to redeem all of the 965,548 remaining
6.000% Series B Preferred Shares on November 18, 2019 at the liquidation value of $24,138,700, or $25 per share plus accrued and unpaid dividends.
On May 17, 2020, 12,400 of the Series E were put back to the Fund at their liquidation value of $100 per share plus accrued and unpaid
dividends.
The Fund has an effective shelf registration authorizing an additional $100 million of common or preferred stock.
The holders of Preferred Stock generally are entitled to one vote per share held on each matter submitted to a vote of stockholders of the Fund
and will vote together with holders of common stock as a single class. The holders of Preferred Stock voting together as a single class also have the right currently to elect two Directors
22
The Gabelli Convertible and Income Securities Fund Inc.
Notes to Financial Statements (Unaudited) (Continued)
and, under certain circumstances, are entitled to elect a majority of the Board. In addition,
the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred stock, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred
stock, and the approval of two-thirds of each class, voting separately, of the Funds outstanding voting stock must approve the conversion of the Fund from a
closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred stock and a majority (as defined in
the 1940 Act) of the Funds outstanding voting securities are required to approve certain other actions, including changes in the Funds investment objectives or fundamental investment policies.
6. Convertible Securities Concentration. The Fund will invest at least 80% of its net assets, under normal market conditions, in a
combination of convertible securities and income producing securities (the 80% Policy). The Fund expects to continue its practice of focusing on convertible securities to the extent attractive opportunities are available. The 80% Policy may be
changed without stockholder approval. However, the Fund has adopted a policy to provide stockholders with notice at least 60 days prior to the implementation of any change in the 80% Policy.
7. 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.
8. Subsequent Events. Management has evaluated the impact of all subsequent events occurring through the date the financial statements
were issued and has determined that there were no other subsequent events requiring recognition or disclosure in the financial statements.
Stockholder
Meeting May 11, 2020 Final Results
The Funds Annual Meeting of Stockholders was held virtually on May 11,
2020. At that meeting, common and preferred stockholders, voting together as a single class, re-elected Vincent D. Enright, Anthonie C. van Ekris, and Salvatore J. Zizza as Directors of the Fund, with
14,039,123 votes, 13,994,946 votes, and 13,986,314 votes cast in favor of these Directors, and 457,522 votes, 501,698 votes, and 510,330 votes withheld for these Directors, respectively.
In addition, preferred stockholders, voting as a separate class, re-elected Anthony S. Colavita as a
Director of the Fund, with 62,200 votes cast in favor of this Director and no votes withheld for this Director.
Mario J. Gabelli, John
Birch, E. Val Cerutti, Thomas H, Dinsmore, Leslie F. Foley, Daniel D. Harding, Michael J. Melarkey, Kuni Nakamura, and Werner J. Roeder continue to serve in their capacities as Directors of the Fund.
We thank you for your participation and appreciate your continued support.
23
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
Board Consideration and Re-Approval of Investment Advisory Contract (Unaudited)
At its meeting on May 13, 2020, the Board of Directors (Board) of the Fund approved the continuation of the investment advisory contract
with the Adviser for the Fund on the basis of the recommendation by the directors who are not interested persons of the Fund (the Independent Board Members). The following paragraphs summarize the material information and factors
considered by the Independent Board Members as well as their conclusions relative to such factors.
Nature, Extent and Quality of
Services. The Independent Board Members considered information regarding the portfolio managers, the depth of the analyst pool available to the Adviser and the portfolio managers, the scope of supervisory, administrative, stockholder, and other
services supervised or provided by the Adviser and the absence of significant service problems reported to the Board. The Independent Board Members noted the experience, length of service, and reputation of the portfolio managers.
Investment Performance. The Independent Board Members reviewed the performance of the Fund for the one, three, five, and ten year periods
ended March 31, 2020 against a peer group of convertible and total return income oriented funds selected by the Adviser (the Adviser Peer Group) and against a peer group consisting of funds in the Funds Lipper category (the Lipper Peer
Group). The Independent Board Members noted that the Funds performance for these periods generally ranked above or near the median relative to the Adviser Peer Group, but above the median relative to the Lipper Peer Group for the one year,
three year, and five year periods, but below the median for the ten year period.
Profitability. The Independent Board Members
reviewed summary data regarding the profitability of the Fund to the Adviser both with an administrative overhead charge and without such charge. The Board also reviewed materials showing that a portion of the Funds portfolio transactions was
executed by the Advisers affiliated broker, resulting in incremental profits to the broker.
Economies of Scale. The Independent
Board Members considered the major elements of the Advisers cost structure and the relationship of those elements to potential economies of scale. The Independent Board Members noted that the Fund was a
closed-end fund and unlikely to realize any economies of scale potentially available through growth in the absence of additional offerings.
Sharing of Economies of Scale. The Independent Board Members noted that the investment advisory fee schedule for the Fund does not take
into account any potential economies of scale.
Service and Cost Comparisons. The Independent Board Members compared the expense
ratios of the investment advisory fee, other expenses, and total expenses of the Fund with similar expense ratios of the Adviser Peer Group and the Lipper Peer Group and noted that the advisory fee includes substantially all administrative services
of the Fund as well as investment advisory services of the Adviser. The Independent Board Members noted that the Funds expense ratios were above average and the Funds size was below average within the applicable peer groups. The
Independent Board Members noted that the advisory fee reflected by Lipper is the aggregate fee paid by a fund (including fees attributable to both common and preferred shares) as a percentage of the assets attributable to common shares, which
results in the calculation of a higher advisory fee percentage than the stated contractual fee for any funds employing leverage. The Independent Board Members were presented with information comparing the advisory fee to the fee for other types of
accounts managed by the Adviser.
Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced
portfolio management services, good ancillary services, and an acceptable performance record within its relatively conservative
24
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
Board Consideration and Re-Approval of Investment Advisory Contract (Unaudited) (Continued)
stance. The Independent Board Members also concluded that the Funds expense ratios were
acceptable in light of the Funds size, and that, in part due to the Funds structure as a closed-end fund, economies of scale were not a significant factor in their thinking. The Independent Board
Members concluded that the Funds performance and advisory fees were broadly in line with peer funds. The Independent Board Members did not view the potential profitability of ancillary services as material to their decision. On the basis of
the foregoing and without assigning particular weight to any single conclusion, the Independent Board Members determined to recommend continuation of the Advisory Agreement to the full Board.
Based on a consideration of all these factors in their totality, the Board Members, including all of the Independent Board Members, determined
that the Funds advisory fee was appropriate in light of the quality of services provided and in light of the other factors described above that the Board deemed relevant. Accordingly, the Board Members determined to approve the continuation of
the Funds Advisory Agreement. The Board Members based their decision on evaluations of all these factors as a whole and did not consider any one factor as all important or controlling.
25
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|
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THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
AND YOUR PERSONAL PRIVACY
Who are we?
The Gabelli Convertible and Income Securities Fund Inc. is a
closed-end management investment company 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., a publicly held company that has subsidiaries that provide investment advisory services for a variety of clients.
What kind of non-public information do we collect about you if you become a
Fund stockholder?
When you
purchase shares of the Fund on the New York Stock Exchange, you have the option of registering directly with our transfer agent in order, for example, to participate in our dividend reinvestment plan.
● 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.
● Information about your transactions with us. This would include information about the shares that you buy or sell; it may also include information about whether you sell or
exercise rights that we have issued from time to time. 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.
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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THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
One Corporate Center
Rye, NY
10580-1422
Portfolio Management Team Biographies
Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc.
that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham
University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.
James A. Dinsmore, CFA, joined Gabelli Funds, LLC in 2015. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages
several funds within the Fund Complex. Mr. Dinsmore received a BA in Economics from Cornell University and an MBA degree from Rutgers University.
Thomas H. Dinsmore, CFA, joined Gabelli Funds, LLC in 2015. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages
several funds within the Fund Complex. Previously Mr. Dinsmore was Chairman and CEO of Dinsmore Capital Management; CEO and Portfolio Manager of Bancroft Fund Ltd; and CEO, Portfolio Manager, and
co-founder of Ellsworth Growth and Income Fund Ltd. He received a BS in Economics from the Wharton School of Business and an MA degree in Economics from Fairleigh Dickinson University.
Jane D. OKeeffe joined Gabelli Funds, LLC in 2015. She currently serves as a portfolio manager of Gabelli Funds, LLC and manages
several funds within the Fund Complex. Previously Ms. OKeeffe was President and Director of Dinsmore Capital Management where she was also a Portfolio Manager of Bancroft Fund Ltd. and Ellsworth Growth and Income Fund Ltd. Prior to
joining Dinsmore Capital Management, Ms. OKeeffe held positions of increasing responsibilities at IDS Progressive Fund, Soros Fund Management Company, Simms Capital Management, and Fiduciary Trust International. She earned a BA from the
University of New Hampshire and attended the Lubin Graduate School of Business at Pace University.
We have separated the portfolio managers commentary from the financial statements and
investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers commentary is unrestricted. Both the commentary and the financial
statements, including the portfolio of investments, will be available on our website at www.gabelli.com.
The Net Asset Value per
share appears in the Publicly Traded Funds column, under the heading Convertible Securities Funds, in Mondays The Wall Street Journal. It is also listed in Barrons Mutual
Funds/Closed-End Funds section under the heading Convertible Securities Funds.
The Net
Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.
The NASDAQ symbol for the Net Asset Value is XGCVX.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of
1940, as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Funds shares are trading at a discount of 10% or more from the net asset value of the shares.
THE GABELLI CONVERTIBLE AND
INCOME SECURITIES FUND INC.
One Corporate Center
Rye, NY 10580-1422
t
800-GABELLI (800-422-3554)
f 914-921-5118
e info@gabelli.com
GABELLI.COM
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DIRECTORS
Mario J. Gabelli, CFA
Chairman and
Chief Executive Officer,
GAMCO Investors, Inc.
Executive Chairman,
Associated Capital Group, Inc.
John Birch
Partner,
The Cardinal Partners Global
E. Val Cerutti
Chief Executive Officer,
Cerutti Consultants, Inc.
Anthony S. Colavita
President,
Anthony S. Colavita, P.C.
Thomas H. Dinsmore, CFA
Portfolio Manager,
Gabelli Funds LLC
Vincent D. Enright
Former Senior Vice President
and Chief Financial Officer,
KeySpan Corp.
Leslie F. Foley
Attorney
Daniel D. Harding
Managing General Director,
Global Equity Income Fund
Michael J. Melarkey
Of Counsel,
McDonald Carano Wilson LLP
Kuni Nakamura
President,
Advanced Polymer, Inc.
Werner J. Roeder
Former Medical Director,
Lawrence Hospital
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Anthonie C. van Ekris
Chairman,
BALMAC International, Inc.
Salvatore J. Zizza
Chairman,
Zizza & Associates Corp.
OFFICERS
Bruce N. Alpert
President
John C. Ball
Treasurer
Andrea R. Mango
Secretary & Vice President
Richard J. Walz
Chief Compliance Officer
Laurissa M. Martire
Vice President & Ombudsman
Bethany A. Uhlein
Vice President & Ombudsman
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust
Company
COUNSEL
Skadden, Arps, Slate, Meagher &
Flom LLP
TRANSFER AGENT AND
REGISTRAR
Computershare Trust Company, N.A.
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GCV Q2/2020
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