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, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: September 30, 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
SEPTEMBER 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
--------- --------
CONVERTIBLE CORPORATE BONDS -- 39.0%
AEROSPACE -- 3.0%
$ 830,000 GenCorp Inc., Sub. Deb. Cv.,
5.750%, 04/15/07 ..............$ 911,962
3,692,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12 .............. 3,535,090
------------
4,447,052
------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 6.2%
3,000,000 Pep Boys - Manny, Moe & Jack, Cv.,
4.250%, 06/01/07 .............. 2,925,000
6,900,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09 .............. 6,141,000
------------
9,066,000
------------
BROADCASTING -- 4.3%
Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
5,000,000 6.000%, 09/15/12 .............. 4,400,000
2,200,000 4.875%, 07/15/18 .............. 1,977,250
------------
6,377,250
------------
BUSINESS SERVICES -- 5.1%
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 ......... 2,373,750
1,200,000 Navistar Financial Corp.,
Sub. Deb. Cv.,
4.750%, 04/01/09 .............. 1,146,000
Trans-Lux Corp.,
Sub. Deb. Cv.,
2,600,000 8.250%, 03/01/12 .............. 2,551,250
1,500,000 7.500%, 12/01/06 .............. 1,496,250
------------
7,567,250
------------
CABLE -- 0.6%
400,000 Adelphia Communications Corp.,
Sub. Deb. Cv.,
3.250%, 05/01/21+ (c) ......... 18,500
800,000 Charter Communications
Inc., Cv.,
4.750%, 06/01/06 .............. 790,000
100,000 Mediacom Communications
Corp., Cv.,
5.250%, 07/01/06 .............. 100,000
------------
908,500
------------
COMMUNICATIONS EQUIPMENT -- 7.9%
2,600,000 Agere Systems Inc.,
Sub. Deb. Cv.,
6.500%, 12/15/09 .............. 2,613,000
600,000 Corning Inc., Deb. Cv.,
Zero Coupon, 11/08/15 ......... 475,848
2,000,000 Lucent Technologies Inc.,
Sub. Deb. Cv.,
8.000%, 08/01/31 .............. 2,075,000
4,700,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 .............. 4,447,375
2,000,000 TriQuint Semiconductor Inc.,
Sub. Deb. Cv.,
4.000%, 03/01/07 .............. 1,947,500
------------
11,558,723
------------
PRINCIPAL MARKET
AMOUNT VALUE*
--------- --------
CONSUMER PRODUCTS -- 0.1%
$ 100,000 Church & Dwight Co. Inc.,
Deb. Cv.,
5.250%, 08/15/33 (b) ..........$ 133,500
------------
DIVERSIFIED INDUSTRIAL -- 2.1%
2,300,000 EDO Corp., Sub. Deb. Cv.,
5.250%, 04/15/07 .............. 2,366,125
1,400,000 Roper Industries Inc., Cv.,
1.481%, 01/15/34 .............. 771,750
------------
3,137,875
------------
ELECTRONICS -- 0.0%
10,000 Artesyn Technologies Inc.,
Sub. Deb. Cv.,
5.500%, 08/15/10 (b) .......... 13,187
------------
ENERGY AND UTILITIES -- 1.9%
500,000 Devon Energy Corp., Deb. Cv.,
4.950%, 08/15/08 .............. 617,500
1,400,000 Mirant Corp., Deb. Cv.,
2.500%, 06/15/21+ (c) ......... 1,449,000
257,000 Moran Energy Inc.,
Sub. Deb. Cv.,
8.750%, 01/15/08 .............. 245,435
400,000 Unisource Energy Corp., Cv.,
4.500%, 03/01/35 (b) .......... 421,000
------------
2,732,935
------------
EQUIPMENT AND SUPPLIES -- 1.0%
1,446,000 Robbins & Myers Inc.,
Sub. Deb. Cv.,
8.000%, 01/31/08 .............. 1,520,108
------------
FINANCIAL SERVICES -- 0.4%
500,000 Conseco Inc., Cv.,
3.500%, 09/30/35 (b) .......... 512,500
------------
FOOD AND BEVERAGE -- 0.4%
500,000 Parmalat Capital, Cv.,
1.000%, 12/31/05+ (c) ......... 168,259
700,000 Parmalat Netherlands BV, Cv.,
0.875%, 06/30/21+ (c) ......... 344,931
------------
513,190
------------
HEALTH CARE -- 0.7%
1,000,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 .............. 1,003,750
150,000 Sabratek Corp.,
Sub. Deb. Cv.,
6.000%, 04/15/06+ (a)(c) ...... 0
------------
1,003,750
------------
HOTELS AND GAMING -- 1.2%
800,000 Hilton Group Finance
Jersey Ltd., Cv.,
3.375%, 10/02/10 .............. 1,789,375
10,000 Wynn Resorts Ltd.,
Sub. Deb. Cv.,
6.000%, 07/15/15 (b) .......... 20,725
------------
1,810,100
------------
2
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE*
--------- --------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.1%
$ 100,000 Fleetwood Enterprises Inc., Cv.,
5.000%, 12/15/23 (b) ..........$ 127,000
------------
METALS AND MINING -- 0.9%
1,000,000 Inco Ltd., Cv.,
Zero Coupon, 03/29/21 ......... 1,262,500
------------
REAL ESTATE -- 1.2%
Palm Harbor Homes Inc., Cv.,
450,000 3.250%, 05/15/24 .............. 406,125
1,550,000 3.250%, 05/15/24 (b) .......... 1,398,875
------------
1,805,000
------------
RETAIL -- 0.0%
60,000 Costco Wholesale Corp.,
Sub. Deb. Cv.,
Zero Coupon, 08/19/17 ......... 59,100
------------
TELECOMMUNICATIONS -- 0.0%
80,000 AMNEX Inc., Sub. Deb. Cv.,
8.500%, 09/25/49+ (a)(b)(c)(d) 0
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23 (b) .......... 52,063
------------
52,063
------------
TRANSPORTATION -- 0.9%
GATX Corp., Cv.,
500,000 7.500%, 02/01/07 (b) .......... 625,000
500,000 7.500%, 02/01/07 .............. 625,000
------------
1,250,000
------------
WIRELESS COMMUNICATIONS -- 1.0%
1,500,000 Nextel Communications Inc., Cv.,
5.250%, 01/15/10 .............. 1,518,750
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TOTAL CONVERTIBLE
CORPORATE BONDS ............... 57,376,333
------------
SHARES
------
CONVERTIBLE PREFERRED STOCKS -- 9.3%
AEROSPACE -- 0.7%
8,000 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B ....... 968,000
------------
AUTOMOTIVE -- 0.1%
2,000 Ford Motor Co. Capital Trust II,
6.500% Cv. Pfd. ............... 72,900
4,000 General Motors Corp.,
4.500% Cv. Pfd., Ser. A ....... 95,320
------------
168,220
------------
MARKET
SHARES VALUE*
------ --------
AVIATION: PARTS AND SERVICES -- 4.0%
49,000 Coltec Capital Trust,
5.250% Cv. Pfd. ...............$ 2,437,750
35,000 Sequa Corp.,
$5.00 Cv. Pfd. ................ 3,412,500
------------
5,850,250
------------
BROADCASTING -- 0.7%
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (a)(b)(d) ............... 1,010,000
------------
BUSINESS SERVICES -- 0.3%
14,001 Interep National Radio Sales Inc.,
4.000% Cv. Pfd.,
Ser. A+ (a)(b)(d) .............. 490,035
20,000 Key3Media Group Inc.,
5.500% Cv. Pfd., Ser. B+ (a) .. 117
------------
490,152
------------
COMMUNICATIONS EQUIPMENT -- 0.6%
800 Lucent Technologies
Capital Trust I,
7.750% Cv. Pfd. ............... 810,000
------------
ENERGY AND UTILITIES -- 0.8%
6,000 AES Trust III,
6.750% Cv. Pfd. ............... 286,200
500 El Paso Corp.,
4.990% Cv. Pfd. (b) ........... 614,482
300 El Paso Corp. Capital Trust I,
4.750% Cv. Pfd., Ser. C ....... 12,120
4,000 FPL Group Inc.,
8.000% Cv. Pfd., Ser. B ....... 284,600
------------
1,197,402
------------
ENTERTAINMENT -- 0.8%
2,000 Metromedia International Group Inc.,
7.250% Cv. Pfd.+ .............. 79,000
45,000 Six Flags Inc.,
7.250% Cv. Pfd., Ser. B ....... 1,075,500
------------
1,154,500
------------
TELECOMMUNICATIONS -- 1.0%
15,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B ....... 655,500
15,000 Philippine Long Distance
Telephone Co.,
$3.50 Cv. Pfd., Ser. III ...... 787,500
------------
1,443,000
------------
TRANSPORTATION -- 0.3%
2,500 GATX Corp.,
$2.50 Cv. Pfd. ................ 493,750
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS .............. 13,585,274
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3
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2005 (UNAUDITED)
MARKET
SHARES VALUE*
------ --------
COMMON STOCKS -- 33.9%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.2%
10,000 Dana Corp. ......................$ 94,100
40,000 Genuine Parts Co. ............... 1,716,000
------------
1,810,100
------------
CABLE AND SATELLITE -- 1.8%
20,000 Cablevision Systems Corp.,
Cl. A+ ......................... 613,400
5,000 DIRECTV Group Inc.+ ............. 74,900
18,000 EchoStar Communications Corp.,
Cl. A .......................... 532,260
19,500 Loral Space &
Communications Ltd.+ ........... 1,365
34,368 Rogers Communications Inc.,
Cl. B .......................... 1,355,818
------------
2,577,743
------------
COMMUNICATIONS EQUIPMENT -- 0.8%
64,413 Corning Inc.+ ................... 1,245,103
------------
COMPUTER HARDWARE -- 0.1%
2,000 International Business
Machines Corp. ................. 160,440
------------
CONSUMER PRODUCTS -- 0.3%
10,000 Action Performance
Companies Inc. ................. 125,000
8,000 Avon Products Inc. .............. 216,000
10,000 Swedish Match AB ................ 119,291
------------
460,291
------------
CONSUMER SERVICES -- 0.3%
20,000 IAC/InterActiveCorp+ ............ 507,000
------------
DIVERSIFIED INDUSTRIAL -- 0.3%
40,926 WHX Corp.+ ...................... 450,188
------------
ENERGY AND UTILITIES -- 9.4%
4,000 Anadarko Petroleum Corp. ........ 383,000
10,000 BP plc, ADR ..................... 708,500
3,000 CH Energy Group Inc. ............ 142,440
20,574 Chevron Corp. ................... 1,331,755
10,000 ConocoPhillips .................. 699,100
2,000 Cooper Cameron Corp.+ ........... 147,860
22,000 Duke Energy Corp. ............... 641,740
30,000 Exxon Mobil Corp. ............... 1,906,200
30,448 FPL Group Inc. .................. 1,449,325
20,000 Great Plains Energy Inc. ........ 598,200
1,500 Murphy Oil Corp. ................ 74,805
4,000 National Fuel Gas Co. ........... 136,800
40,000 Northeast Utilities ............. 798,000
5,000 Occidental Petroleum Corp. ...... 427,150
10,000 Progress Energy Inc., CVO+ ...... 900
10,000 Public Service Enterprise
Group Inc. ..................... 643,600
20,000 Royal Dutch Shell plc,
Cl. A, ADR ..................... 1,312,800
8,500 SJW Corp. ....................... 410,380
25,000 Spinnaker Exploration Co.+ ...... 1,617,250
20,000 Xcel Energy Inc. ................ 392,200
------------
13,822,005
------------
MARKET
SHARES VALUE*
------ --------
EQUIPMENT AND SUPPLIES -- 0.1%
5,000 Mueller Industries Inc. .........$ 138,850
------------
FINANCIAL SERVICES -- 5.3%
32,000 Alliance Capital Management
Holding LP .................... 1,531,200
40,000 American Express Co. ............ 2,297,600
4,000 American International
Group Inc. ..................... 247,840
10,000 Argonaut Group Inc.+ ............ 270,100
55,000 Citigroup Inc. .................. 2,503,600
10,000 Hudson United Bancorp ........... 423,300
20,000 MBNA Corp. ...................... 492,800
------------
7,766,440
------------
FOOD AND BEVERAGE -- 5.4%
10,000 Cadbury Schweppes plc, ADR ...... 407,300
17,000 Coca-Cola Co. ................... 734,230
70,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A .......... 5,746,300
18,000 General Mills Inc. .............. 867,600
2,528 Pernod Ricard SA, ADR ........... 111,933
------------
7,867,363
------------
HEALTH CARE -- 3.4%
10,000 Beverly Enterprises Inc.+ ....... 122,500
12,000 Bristol-Myers Squibb Co. ........ 288,720
19,000 Eli Lilly & Co. ................. 1,016,880
27,000 Merck & Co. Inc. ................ 734,670
82,000 Pfizer Inc. ..................... 2,047,540
15,000 Priority Healthcare Corp.,
Cl. B+ ......................... 417,900
15,000 Schering-Plough Corp. ........... 315,750
------------
4,943,960
------------
HOTELS AND GAMING -- 1.5%
35,000 Argosy Gaming Co.+ .............. 1,644,650
100,000 Hilton Group plc ................ 554,712
------------
2,199,362
------------
RETAIL -- 3.3%
55,000 Albertson's Inc. ................ 1,410,750
100,000 JumboSports Inc.+ ............... 0
30,000 Neiman Marcus Group Inc.,
Cl. A .......................... 2,998,500
15,000 Safeway Inc. .................... 384,000
------------
4,793,250
------------
TELECOMMUNICATIONS -- 0.7%
20,000 AT&T Corp. ...................... 396,000
20,000 MCI Inc. ........................ 507,400
5,000 SBC Communications Inc. ......... 119,850
------------
1,023,250
------------
WIRELESS COMMUNICATIONS -- 0.0%
49 Winstar Communications Inc.+ (a) 0
------------
TOTAL COMMON STOCKS ............. 49,765,345
------------
4
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2005 (UNAUDITED)
MARKET
SHARES VALUE*
------ --------
PREFERRED STOCKS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
3,679 PTV Inc., 10.000% Pfd., Ser. A ..$ 5,427
------------
PRINCIPAL
AMOUNT
-------
CORPORATE BONDS -- 0.9%
DIVERSIFIED INDUSTRIAL -- 0.9%
$ 2,000,000 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a)(d) ....... 1,339,125
------------
SHARES
------
RIGHTS -- 0.0%
DIVERSIFIED INDUSTRIAL -- 0.0%
11,221 WHX Corp., expire 02/28/08+ ..... 29,455
------------
WARRANTS -- 0.7%
BUSINESS SERVICES -- 0.0%
87,500 Interep National Radio Sales Inc.,
expire 05/06/07+ (a)(b)(d) .... 0
------------
CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp.,
expire 11/24/09+ (a) .......... 0
------------
DIVERSIFIED INDUSTRIAL -- 0.7%
250,000 GP Strategies Corp.,
expire 08/14/08+ (a)(d) ....... 929,126
379,703 National Patent Development Corp.,
expire 08/14/08+ (a)(d) ....... 146,241
------------
1,075,367
------------
TOTAL WARRANTS .................. 1,075,367
------------
PRINCIPAL
AMOUNT
-------
U.S. GOVERNMENT OBLIGATIONS -- 16.2%
$23,971,000 U.S. Treasury Bills,
3.152% to 3.508%++,
10/06/05 to 12/29/05 .......... 23,835,344
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $139,779,854) .......................$147,011,670
============
--------------
For Federal tax purposes:
Aggregate cost .....................$140,248,637
============
Gross unrealized appreciation ......$ 12,017,720
Gross unrealized depreciation ...... (5,254,687)
------------
Net unrealized appreciation
(depreciation) ...................$ 6,763,033
============
--------------
(a) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At September 30, 2005,
the market value of fair valued securities amounted to $3,914,644 or
2.66% of total investments.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At September 30, 2005, the market value of Rule 144A securities
amounted to $5,418,367 or 3.69% of total investments. Except as noted
in (d), these securities are liquid.
(c) Bond in default.
(d) At September 30, 2005, the Fund held restricted and illiquid securities
amounting to $3,914,527 or 2.65% of net assets, which were valued under
methods approved by the Board as follows:
ACQUISITION
SHARES/ 09/30/2005
PRINCIPAL ACQUISITION ACQUISITION CARRYING VALUE
AMOUNT 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 0.6696
250,000 GP Strategies Corp. Warrants
expire 08/14/08 .............08/08/03 657,065 3.7165
100 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C .....04/22/02 1,000,000 10,100.0000
14,001 Interep National
Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A .....05/03/02 1,347,183 35.0000
87,500 Interep National
Radio Sales Inc.
Warrants expire 05/06/07 ....05/03/02 -- --
379,703 National Patent
Development Corp.
Warrants expire 08/14/08 ....11/24/05 -- 0.3851
+ 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 November 28, 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 &
Principal Financial Officer
Date November 28, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.