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.
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, NY 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, NY 10580-1422
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(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
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Date of reporting period: March 31, 2005
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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(s) of Investments is attached herewith.
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS
MARCH 31, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
-------- --------
CONVERTIBLE CORPORATE BONDS -- 30.5%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 6.4%
$ 2,780,000 Pep Boys - Manny,
Moe & Jack, Cv.,
4.250%, 06/01/07 .............$ 2,828,650
6,900,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09 ............. 6,417,000
------------
9,245,650
------------
AVIATION: PARTS AND SERVICES -- 3.2%
830,000 GenCorp Inc., Sub. Deb. Cv.,
5.750%, 04/15/07 ............. 926,487
3,692,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12 ............. 3,650,465
------------
4,576,952
------------
BROADCASTING -- 0.7%
1,100,000 Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
4.875%, 07/15/18 ............. 965,250
------------
BUSINESS SERVICES -- 4.6%
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 ........ 2,055,000
500,000 Navistar Financial Corp.,
Sub. Deb. Cv.,
4.750%, 04/01/09 ............. 501,250
Trans-Lux Corp., Sub. Deb. Cv.,
2,600,000 8.250%, 03/01/12 ............. 2,574,000
1,500,000 7.500%, 12/01/06 ............. 1,537,500
------------
6,667,750
------------
CABLE -- 1.0%
400,000 Adelphia Communications Corp.,
Sub. Deb. Cv.,
3.250%, 05/01/21+ (c) ........ 30,000
1,500,000 Charter Communications Inc., Cv.,
4.750%, 06/01/06 ............. 1,428,750
------------
1,458,750
------------
COMMUNICATIONS EQUIPMENT -- 4.8%
2,500,000 Agere Systems Inc.,
Sub. Deb. Cv.,
6.500%, 12/15/09 ............. 2,571,875
600,000 Corning Inc., Deb. Cv.,
Zero Coupon, 11/08/15 ........ 477,000
1,500,000 Lucent Technologies Inc.,
Sub. Deb. Cv.,
8.000%, 08/01/31 ............. 1,558,125
2,500,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 ............. 2,325,000
------------
6,932,000
------------
CONSUMER PRODUCTS -- 0.1%
100,000 Church & Dwight Co. Inc., Deb. Cv.,
5.250%, 08/15/33 (b) ......... 133,500
------------
DIVERSIFIED INDUSTRIAL -- 0.7%
2,000,000 Roper Industries Inc., Cv.,
1.481%, 01/15/34 ............. 965,000
------------
PRINCIPAL MARKET
AMOUNT VALUE*
-------- --------
ELECTRONICS -- 2.1%
$ 10,000 Artesyn Technologies Inc.,
Sub. Deb. Cv.,
5.500%, 08/15/10 (b) .........$ 13,075
1,000,000 Oak Industries Inc.,
Sub. Deb. Cv.,
4.875%, 03/01/08 ............. 1,040,000
2,000,000 TriQuint Semiconductor Inc.,
Sub. Deb. Cv.,
4.000%, 03/01/07 ............. 1,932,500
------------
2,985,575
------------
ENERGY AND UTILITIES -- 1.4%
500,000 Devon Energy Corp., Deb. Cv.,
4.950%, 08/15/08 ............. 576,250
1,400,000 Mirant Corp., Deb. Cv.,
2.500%, 06/15/21+ (c) ........ 1,106,000
257,000 Moran Energy Inc., Sub. Deb. Cv.,
8.750%, 01/15/08 ............. 253,145
100,000 Unisource Energy Corp., Cv.,
4.500%, 03/01/35 ............. 105,500
------------
2,040,895
------------
EQUIPMENT AND SUPPLIES -- 0.9%
1,220,000 Robbins & Myers Inc., Sub. Deb. Cv.,
8.000%, 01/31/08 ............. 1,239,825
------------
FOOD AND BEVERAGE -- 0.4%
600,000 Parmalat Capital, Cv.,
1.000%, 12/31/05+ (c) ........ 163,333
1,000,000 Parmalat Netherlands BV, Cv.,
0.875%, 06/30/21+ (c) ........ 466,666
------------
629,999
------------
HEALTH CARE -- 0.3%
400,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 (b) ......... 402,500
150,000 Sabratek Corp., Sub. Deb. Cv.,
6.000%, 04/15/05+ (a)(c) ..... 0
------------
402,500
------------
HOTELS AND GAMING -- 0.0%
10,000 Wynn Resorts Ltd., Sub. Deb. Cv.,
6.000%, 07/15/15 (b) ......... 30,712
------------
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.1%
100,000 Fleetwood Enterprises Inc., Cv.,
5.000%, 12/15/23 (b) ......... 102,875
------------
METALS AND MINING -- 0.0%
50,000 Inco Ltd., Cv.,
Zero Coupon, 03/29/21 ........ 53,188
------------
REAL ESTATE -- 1.2%
Palm Harbor Homes Inc., Cv.,
450,000 3.250%, 05/15/24 ............. 401,062
1,550,000 3.250%, 05/15/24 (b) ......... 1,381,438
------------
1,782,500
------------
2
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
-------- --------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
RETAIL -- 0.0%
$ 60,000 Costco Wholesale Corp.,
Sub. Deb. Cv.,
Zero Coupon, 08/19/17 ........$ 60,375
------------
TELECOMMUNICATIONS -- 0.7%
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23 (b) ......... 50,375
1,000,000 Rogers Communications
Inc., Deb. Cv.,
2.000%, 11/26/05 ............. 985,000
------------
1,035,375
------------
TRANSPORTATION -- 0.8%
GATX Corp., Cv.,
500,000 7.500%, 02/01/07 (b) ......... 588,125
500,000 7.500%, 02/01/07 ............. 588,125
------------
1,176,250
------------
WIRELESS COMMUNICATIONS -- 1.1%
1,500,000 Nextel Communications Inc., Cv.,
5.250%, 01/15/10 ............. 1,545,000
------------
TOTAL CONVERTIBLE
CORPORATE BONDS .............. 44,029,921
------------
SHARES
------
CONVERTIBLE PREFERRED STOCKS -- 11.7%
AEROSPACE -- 0.7%
8,000 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B ...... 1,040,000
------------
AUTOMOTIVE -- 0.2%
2,000 Ford Motor Co. Capital Trust II,
6.500% Cv. Pfd. .............. 90,680
General Motors Corp.,
2,000 5.250% Cv. Pfd., Ser. B ...... 37,360
6,000 4.500% Cv. Pfd., Ser. A ...... 141,000
------------
269,040
------------
AVIATION: PARTS AND SERVICES -- 3.9%
49,000 Coltec Capital Trust,
5.250% Cv. Pfd. .............. 2,437,750
35,000 Sequa Corp.,
$5.00 Cv. Pfd. ............... 3,272,500
------------
5,710,250
------------
BROADCASTING -- 3.6%
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (a)(b)(d) ............. 1,010,000
100,000 Sinclair Broadcast Group Inc.,
6.000% Cv. Pfd., Ser. D ...... 4,187,500
------------
5,197,500
------------
MARKET
SHARES VALUE*
-------- --------
BUSINESS SERVICES -- 0.3%
15,133 Interep National Radio Sales Inc.,
4.000% Cv. Pfd.,
Ser. A (a)(b)(d) .............$ 453,467
20,000 Key3Media Group Inc.,
5.500% Cv. Pfd., Ser. A+ (a) . 117
------------
453,584
------------
COMMUNICATIONS EQUIPMENT -- 0.6%
800 Lucent Technologies Capital Trust I,
7.750% Cv. Pfd. .............. 808,000
------------
DIVERSIFIED INDUSTRIAL -- 0.2%
WHX Corp.,
54,000 $3.75 Cv. Pfd., Ser. B+ ...... 148,500
28,000 6.500% Cv. Pfd., Ser. A+ ..... 77,000
------------
225,500
------------
ENERGY AND UTILITIES -- 0.2%
6,000 AES Trust III,
6.750% Cv. Pfd. .............. 285,000
1,000 FPL Group Inc.,
8.000% Cv. Pfd., Ser. B ...... 62,010
------------
347,010
------------
ENTERTAINMENT -- 0.7%
2,000 Metromedia International Group Inc.,
7.250% Cv. Pfd.+ ............. 72,000
45,000 Six Flags Inc.,
7.250% Cv. Pfd. .............. 911,250
------------
983,250
------------
HOTELS AND GAMING -- 0.0%
200 Wyndham International Inc.,
9.750% Cv. Pfd., Ser. A ...... 10,000
------------
TELECOMMUNICATIONS -- 1.0%
4,000 ALLTEL Corp.,
7.750% Cv. Pfd. .............. 201,960
15,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B ...... 639,000
12,000 Philippine Long Distance
Telephone Co.,
$3.50 Cv. Pfd., Ser. III ..... 588,000
------------
1,428,960
------------
TRANSPORTATION -- 0.3%
2,700 GATX Corp.,
$2.50 Cv. Pfd. ............... 445,500
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS ............. 16,918,594
------------
COMMON STOCKS -- 28.2%
AEROSPACE -- 0.0%
5,000 Kaman Corp., Cl. A ............. 62,250
------------
3
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE*
-------- --------
COMMON STOCKS (CONTINUED)
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.0%
15,000 Dana Corp. .....................$ 191,850
30,000 Genuine Parts Co. .............. 1,304,700
------------
1,496,550
------------
CABLE AND SATELLITE -- 0.8%
20,000 Cablevision Systems Corp.,
Cl. A+ ....................... 561,000
5,000 DIRECTV Group Inc.+ ............ 72,100
18,000 EchoStar Communications
Corp., Cl. A ................. 526,500
19,500 Loral Space &
Communications Ltd.+ ......... 4,290
------------
1,163,890
------------
COMMUNICATIONS EQUIPMENT -- 0.2%
23,052 Andrew Corp.+ .................. 269,939
------------
CONSUMER PRODUCTS -- 0.8%
20,000 Gillette Co. ................... 1,009,600
10,000 Swedish Match AB ............... 122,333
------------
1,131,933
------------
ELECTRONICS -- 0.2%
20,000 Creo Inc.+ ..................... 321,200
------------
ENERGY AND UTILITIES -- 8.4%
5,000 Anadarko Petroleum Corp. ....... 380,500
10,000 BP plc, ADR .................... 624,000
3,000 CH Energy Group Inc. ........... 137,100
5,000 ConocoPhillips ................. 539,200
2,000 Cooper Cameron Corp.+ .......... 114,420
25,000 Duke Energy Corp. .............. 700,250
30,000 Exxon Mobil Corp. .............. 1,788,000
30,448 FPL Group Inc. ................. 1,222,487
20,000 Great Plains Energy Inc. ....... 611,600
30,000 Kaneb Services LLC ............. 1,279,500
2,000 Kerr-McGee Corp. ............... 156,660
2,000 Murphy Oil Corp. ............... 197,460
2,000 National Fuel Gas Co. .......... 57,180
40,000 Northeast Utilities ............ 770,800
10,000 Progress Energy Inc., CVO+ ..... 1,300
15,000 Public Service Enterprise
Group Inc. ................... 815,850
20,000 Royal Dutch Petroleum Co. ...... 1,200,800
10,000 SEMCO Energy Inc. .............. 57,500
8,000 SJW Corp. ...................... 281,040
10,000 Unocal Corp. ................... 616,900
30,000 Xcel Energy Inc. ............... 515,400
------------
12,067,947
------------
EQUIPMENT AND SUPPLIES -- 0.1%
5,000 Mueller Industries Inc. ........ 140,750
2,000 Tomkins plc, ADR ............... 40,900
------------
181,650
------------
MARKET
SHARES VALUE*
-------- --------
FINANCIAL SERVICES -- 5.1%
32,000 Alliance Capital Management
Holding LP ...................$ 1,508,800
36,000 American Express Co. ........... 1,849,320
10,000 American International
Group Inc. ................... 554,100
12,000 Argonaut Group Inc.+ ........... 254,640
60,000 Citigroup Inc. ................. 2,696,400
30,000 Riggs National Corp. ........... 572,700
------------
7,435,960
------------
FOOD AND BEVERAGE -- 5.1%
10,000 Allied Domecq plc, ADR ......... 406,700
10,000 Cadbury Schweppes plc, ADR ..... 407,000
7,000 Coca-Cola Co. .................. 291,690
70,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A ......... 5,653,900
12,000 General Mills Inc. ............. 589,800
------------
7,349,090
------------
HEALTH CARE -- 3.4%
12,000 Bristol-Myers Squibb Co. ....... 305,520
17,800 Eli Lilly & Co. ................ 927,380
30,000 Merck & Co. Inc. ............... 971,100
90,000 Pfizer Inc. .................... 2,364,300
15,000 Schering-Plough Corp. .......... 272,250
------------
4,840,550
------------
HOTELS AND GAMING -- 0.4%
100,000 Hilton Group plc ............... 568,815
------------
PUBLISHING -- 0.9%
20,000 Pulitzer Inc. .................. 1,274,600
------------
RETAIL -- 0.8%
35,000 Albertson's Inc. ............... 722,750
100,000 JumboSports Inc.+ .............. 0
20,000 Safeway Inc.+ .................. 370,600
------------
1,093,350
------------
SPECIALTY CHEMICALS -- 0.5%
15,000 E.I. du Pont de
Nemours and Co. .............. 768,600
------------
TELECOMMUNICATIONS -- 0.5%
20,000 AT&T Corp. ..................... 375,000
10,000 MCI Inc. ....................... 249,200
5,000 SBC Communications Inc. ........ 118,450
------------
742,650
------------
WIRELESS COMMUNICATIONS -- 0.0%
49 Winstar Communications Inc.+ ... 0
------------
TOTAL COMMON STOCKS ............ 40,768,974
------------
PREFERRED STOCKS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
3,679 PTV Inc., 10.000%
Pfd., Ser. A ................. 13,980
------------
4
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
-------- --------
CORPORATE BONDS -- 0.9%
DIVERSIFIED INDUSTRIAL -- 0.9%
$ 2,000,000 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a)(d) ......$ 1,336,122
------------
TELECOMMUNICATIONS -- 0.0%
80,000 Amnex Inc., Sub. Deb.,
8.500%, 09/25/49+ (b)(c)(d) .. 0
------------
TOTAL CORPORATE BONDS .......... 1,336,122
------------
SHARES
------
WARRANTS -- 0.6%
BUSINESS SERVICES -- 0.0%
87,500 Interep National Radio Sales Inc.,
expires 05/06/07+ (a)(b)(d) .. 0
------------
CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp.,
expires 11/24/09+ (a) ........ 0
------------
DIVERSIFIED INDUSTRIAL -- 0.6%
250,000 GP Strategies Corp.,
expires 08/14/08+ (a)(d) ..... 653,341
379,703 National Patent Development Corp.,
expires 08/14/08+ (a)(d) ..... 167,188
------------
820,529
------------
TOTAL WARRANTS ................. 820,529
------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 28.1%
$40,869,000 U.S. Treasury Bills,
2.379% to 2.823%++,
04/07/05 to 06/23/05 ......... 40,649,905
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $141,952,235) ......................$144,538,025
============
SHARES
------
SECURITIES SOLD SHORT
COMMUNICATIONS EQUIPMENT -- (0.2)%
(23,000) Andrew Corp.+ ..................$ (269,330)
============
--------------
For Federal tax purposes:
Aggregate cost ....................$142,473,815
============
Gross unrealized appreciation .....$ 8,557,651
Gross unrealized depreciation ..... (6,493,441)
------------
Net unrealized appreciation
(depreciation) .................$ 2,064,210
============
--------------
(a) Securities 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 March 31, 2005, the
market value of fair valued securities amounted to $3,620,235 or 2.50%
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 March 31, 2005, the market value of Rule 144A securities amounted to
$4,166,066 or 2.88% of total investments. Except as noted in (d), these
securities are liquid.
(c) Bond in default.
(d) At March 31, 2005, the Fund held investments in restricted and illiquid
securities that were valued under methods approved by the Board, as
follows:
3/31/2005
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
------ ------ --------- ----------- --------------
80,000 Amnex Inc.,
8.500%, 09/25/49 ............. 09/15/97 $ 70,363 $ --
2,000,000 GP Strategies Corp.
6.000%, 08/14/08 ............. 08/14/03 1,362,935 0.6681
250,000 GP Strategies Corp.
Warrants
expire 08/14/08 .............. 08/08/03 657,065 2.6134
100 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C ...... 04/22/02 1,000,000 10,100.0000
15,133 Interep National Radio
Sales Inc.,
4.000% Cv. Pfd., Ser. A ...... 05/03/02 1,514,203 29.9654
87,500 Interep National Radio
Sales Inc.
Warrants expire 05/06/07 ..... 05/03/02 -- --
379,703 National Patent
Development Corp.
Warrants expire 08/08/08 ..... 11/24/05 -- 0.4403
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
CVO - Contingent Value Obligation.
* Portfolio securities are valued at the last quoted sale price or
closing values. If these are 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 have materially affected, or are 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 May 25, 2005
----------------------------------------------------------------------
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)* /s/ Bruce N. Alpert
-----------------------------------------------------
Bruce N. Alpert, Principal Executive Officer and
Principal Financial Officer
Date May 25, 2005
--------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.