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
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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: September 30, 2007
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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, 100 F Street, NE, Washington, DC
20549. 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.
[LOGO OMITTED]
THE GABELLI
CONVERTIBLE AND
INCOME SECURITIES
FUND INC.
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
Third Quarter Report
September 30, 2007
TO OUR SHAREHOLDERS,
During the third quarter of 2007, The Gabelli Convertible and Income
Securities Fund's (the "Fund") total return was 0.14% on a net asset value
("NAV") basis while the Standard & Poor's ("S&P") 500 Index, the Lehman
Government/Corporate Bond Index, and the Lipper Convertible Securities Fund
Average gained 2.33%, 3.01%, and 2.26%, respectively. The Fund's market price on
September 30, 2007 was $8.67, which equated to a 5.09% premium to its NAV of
$8.25 at the end of the quarter. The Fund's market price, adjusted for
distributions, was down 1.92% during the third quarter of 2007.
Enclosed is the investment portfolio as of September 30, 2007.
COMPARATIVE RESULTS
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AVERAGE ANNUAL RETURNS THROUGH SEPTEMBER 30, 2007 (A)
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SINCE
INCEPTION
QUARTER 1 YEAR 3 YEAR 5 YEAR 10 YEAR 15 YEAR (07/03/89)
------- ------ ------ ------ ------- ------- ----------
GABELLI CONVERTIBLE AND INCOME SECURITIES FUND
NAV TOTAL RETURN (B).......................... 0.14% 12.36% 10.57% 10.38% 6.28% 7.39% 7.94%
INVESTMENT TOTAL RETURN (C)................... (1.92) 9.09 4.44 5.18 8.08 N/A(D) 7.42(D)
S&P 500 Index................................... 2.33 16.78 13.24 15.51 6.60 11.12 11.35(e)
Lehman Brothers Government/Corporate Bond Index. 3.01 5.08 3.66 4.16 6.03 6.33 7.19(e)
Lipper Convertible Securities Fund Average...... 2.26 14.65 10.37 13.02 6.76 9.74 9.98(e)
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE.
WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST
RECENT MONTH END. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE
S&P 500 INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET PERFORMANCE. THE
LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED MARKET
VALUE WEIGHTED INDEX THAT TRACKS THE TOTAL RETURN PERFORMANCE OF FIXED
RATE, PUBLICLY PLACED, DOLLAR DENOMINATED OBLIGATIONS. THE LIPPER AVERAGE
REFLECTS THE AVERAGE PERFORMANCE OF OPEN-END MUTUAL FUNDS CLASSIFIED IN
THIS PARTICULAR CATEGORY. DIVIDENDS AND INTEREST INCOME ARE CONSIDERED
REINVESTED. YOU CANNOT INVEST DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NAV PER SHARE,
REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS AND ARE NET OF EXPENSES. SINCE INCEPTION
RETURN IS BASED ON AN INITIAL NAV OF $10.00.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE, REINVESTMENT OF DISTRIBUTIONS, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS. SINCE INCEPTION RETURN IS BASED ON AN
INITIAL OFFERING PRICE OF $11.25.
(d) THE FUND CONVERTED TO CLOSED-END STATUS ON MARCH 31, 1995 AND HAD NO
OPERATING HISTORY ON THE NEW YORK STOCK EXCHANGE PRIOR TO THAT DATE.
(e) FROM JUNE 30, 1989, THE DATE CLOSEST TO THE FUND'S INCEPTION FOR WHICH DATA
IS AVAILABLE.
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We have separated the portfolio manager's 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 manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com.
--------------------------------------------------------------------------------
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------
CONVERTIBLE CORPORATE BONDS -- 19.9%
AEROSPACE -- 1.6%
$ 1,600,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12............................ $ 2,366,000
------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 4.2%
6,600,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09............................ 6,319,500
------------
BROADCASTING -- 4.0%
1,500,000 Sinclair Broadcast Group Inc.,
Cv. (STEP),
4.875%, 07/15/18............................ 1,423,125
4,800,000 Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
6.000%, 09/15/12............................ 4,488,000
------------
5,911,125
------------
BUSINESS SERVICES -- 0.0%
900,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)....................... 0
------------
CABLE -- 0.0%
400,000 Adelphia Communications Corp.,
Sub. Deb. Cv.,
3.250%, 05/01/21+ .......................... 3,600
------------
COMMUNICATIONS EQUIPMENT -- 4.2%
3,000,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09............................ 3,045,000
3,250,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08............................ 3,205,312
------------
6,250,312
------------
CONSUMER PRODUCTS -- 0.1%
100,000 Church & Dwight Co. Inc., Deb. Cv.,
5.250%, 08/15/33 (b)........................ 155,250
1,500,000 Pillowtex Corp., Sub. Deb. Cv.,
9.000%, 12/15/07 (a)........................ 0
------------
155,250
------------
DIVERSIFIED INDUSTRIAL -- 0.8%
1,400,000 Roper Industries Inc., Cv. (STEP),
1.481%, 01/15/34............................ 1,158,500
------------
ELECTRONICS -- 0.0%
10,000 Artesyn Technologies Inc.,
Sub. Deb. Cv.,
5.500%, 08/15/10 (b)........................ 13,691
------------
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------
ENERGY AND UTILITIES -- 1.2%
$ 500,000 Devon Energy Corp., Deb. Cv.,
4.950%, 08/15/08............................ $ 875,625
257,000 Moran Energy Inc., Sub. Deb. Cv.,
8.750%, 01/15/08............................ 445,895
400,000 Unisource Energy Corp., Cv.,
4.500%, 03/01/35 (b)........................ 395,500
------------
1,717,020
------------
EQUIPMENT AND SUPPLIES -- 0.0%
10,000 Regal-Beloit Corp., Sub. Deb. Cv.,
2.750%, 03/15/24............................ 18,913
------------
FINANCIAL SERVICES -- 1.0%
500,000 Conseco Inc., Cv. (STEP),
3.500%, 09/30/35 (b)........................ 460,625
1,000,000 PrivateBancorp Inc., Cv.,
3.625%, 03/15/27............................ 982,500
------------
1,443,125
------------
HEALTH CARE -- 0.3%
300,000 Advanced Medical Optics Inc.,
Sub. Deb. Cv.,
3.250%, 08/01/26............................ 256,125
100,000 Millipore Corp., Cv.,
3.750%, 06/01/26............................ 108,625
150,000 Sabratek Corp., Sub. Deb. Cv.,
6.000%, 04/15/08+ (a)....................... 0
100,000 Thoratec Corp., Sub. Deb. Cv. (STEP),
1.380%, 05/16/34............................ 71,000
------------
435,750
------------
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.1%
100,000 Fleetwood Enterprises Inc.,
Sub. Deb. Cv.,
5.000%, 12/15/23 (b)........................ 102,500
------------
REAL ESTATE -- 1.3%
Palm Harbor Homes Inc., Cv.,
950,000 3.250%, 05/15/24 ........................... 736,250
1,550,000 3.250%, 05/15/24 (b) ....................... 1,201,250
------------
1,937,500
------------
RETAIL -- 0.1%
60,000 Costco Wholesale Corp.,
Sub. Deb. Cv.,
Zero Coupon, 08/19/17....................... 83,925
100,000 Pier 1 Imports Inc., Cv. (STEP),
6.375%, 02/15/36............................ 80,875
------------
164,800
------------
See accompanying notes to schedule of investments.
2
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
----------- -------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
TELECOMMUNICATIONS -- 0.0%
AMNEX Inc., Sub. Deb. Cv.,
$ 30,000 8.500%, 09/25/49+ (a)(b) ................... $ 0
50,000 8.500%, 09/25/49+ (a)(b)(d) ................ 0
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23............................ 54,852
------------
54,852
------------
WIRELESS COMMUNICATIONS -- 1.0%
1,500,000 Nextel Communications Inc., Cv.,
5.250%, 01/15/10............................ 1,503,750
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TOTAL CONVERTIBLE
CORPORATE BONDS............................. 29,556,188
------------
SHARES
-------
CONVERTIBLE PREFERRED STOCKS -- 3.2%
AEROSPACE -- 0.6%
7,000 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B..................... 1,011,150
------------
AUTOMOTIVE -- 0.0%
1,000 General Motors Corp.,
6.250% Cv. Pfd., Ser. C..................... 24,490
------------
BUSINESS SERVICES -- 0.2%
14,561 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A+ (a)(b)(d).......... 254,819
20,000 Key3Media Group Inc.,
5.500% Cv. Pfd., Ser. B+ (a)................ 117
------------
254,936
------------
COMMUNICATIONS EQUIPMENT -- 0.4%
600 Lucent Technologies Capital Trust I,
7.750% Cv. Pfd.............................. 576,000
------------
ENERGY AND UTILITIES -- 0.7%
6,000 AES Trust III,
6.750% Cv. Pfd.............................. 292,440
500 El Paso Corp.,
4.990% Cv. Pfd. (b)......................... 707,592
300 El Paso Energy Capital Trust I,
4.750% Cv. Pfd., Ser. C..................... 12,357
------------
1,012,389
------------
ENTERTAINMENT -- 0.4%
26,000 Six Flags Inc.,
7.250% Cv. Pfd., Ser. B..................... 544,180
------------
MARKET
SHARES VALUE
-------- -------
FINANCIAL SERVICES -- 0.0%
100 Alleghany Corp., 5.750% Cv. Pfd............... $ 37,125
------------
HEALTH CARE -- 0.1%
100 Elite Pharmaceuticals Inc.,
$2.32 Cv. Pfd. Ser. C+...................... 100,000
------------
TELECOMMUNICATIONS -- 0.4%
14,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B..................... 636,860
------------
TRANSPORTATION -- 0.4%
2,500 GATX Corp.,
$2.50 Cv. Pfd. ............................. 543,750
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS............................ 4,740,880
------------
COMMON STOCKS -- 34.3%
AEROSPACE -- 1.1%
29,453 Kaman Corp.................................... 1,017,905
52,500 Rolls-Royce Group plc+........................ 561,242
------------
1,579,147
------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.1%
33,000 Genuine Parts Co.............................. 1,650,000
------------
BROADCASTING -- 1.2%
45,000 Clear Channel Communications Inc.............. 1,684,800
5,000 Emmis Communications Corp., Cl. A ............ 24,700
------------
1,709,500
------------
BUSINESS SERVICES -- 1.2%
334,100 Trans-Lux Corp.+ (c).......................... 1,754,025
------------
CABLE AND SATELLITE -- 0.2%
8,000 Cablevision Systems Corp., Cl. A+............. 279,520
2,000 Rogers Communications Inc., Cl. B............. 91,060
------------
370,580
------------
COMMUNICATIONS EQUIPMENT -- 0.5%
30,000 Corning Inc................................... 739,500
------------
COMPUTER HARDWARE -- 1.1%
14,000 International Business
Machines Corp. ............................. 1,649,200
------------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
2,000 Microsoft Corp................................ 58,920
------------
CONSUMER PRODUCTS -- 0.5%
4,000 Avon Products Inc............................. 150,120
30,000 Swedish Match AB.............................. 623,827
------------
773,947
------------
See accompanying notes to schedule of investments.
3
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
-------- -------
COMMON STOCKS (CONTINUED)
DIVERSIFIED INDUSTRIAL -- 1.3%
40,000 General Electric Co........................... $ 1,656,000
29,000 WHX Corp.+.................................... 217,500
------------
1,873,500
------------
ELECTRONICS -- 0.3%
20,000 Intel Corp.................................... 517,200
------------
ENERGY AND UTILITIES -- 9.3%
7,000 Anadarko Petroleum Corp....................... 376,250
10,000 BP plc, ADR................................... 693,500
2,000 Cameron International Corp.+.................. 184,580
2,700 CH Energy Group Inc........................... 129,060
15,000 Chevron Corp.................................. 1,403,700
5,000 ConocoPhillips................................ 438,850
2,000 Devon Energy Corp............................. 166,400
2,000 Energy East Corp.............................. 54,100
20,000 Exxon Mobil Corp.............................. 1,851,200
5,000 FPL Group Inc................................. 304,400
25,000 Great Plains Energy Inc....................... 720,250
20,000 Halliburton Co................................ 768,000
42,263 Mirant Corp.+................................. 1,719,259
1,200,000 Mirant Corp., Escrow+ (a)..................... 0
4,000 National Fuel Gas Co.......................... 187,240
15,000 Northeast Utilities........................... 428,550
10,000 Progress Energy Inc., CVO+ (a)................ 3,300
18,000 Royal Dutch Shell plc, Cl. A, ADR ............ 1,479,240
7,000 SJW Corp...................................... 238,980
35,000 TXU Corp...................................... 2,396,450
10,000 Xcel Energy Inc............................... 215,400
------------
13,758,709
------------
EQUIPMENT AND SUPPLIES -- 0.1%
5,000 Mueller Industries Inc........................ 180,700
------------
FINANCIAL SERVICES -- 3.6%
2,000 AllianceBernstein Holding LP.................. 176,140
35,000 American Express Co........................... 2,077,950
60,000 Citigroup Inc................................. 2,800,200
10,000 Marsh & McLennan Companies Inc. .............. 255,000
------------
5,309,290
------------
FOOD AND BEVERAGE -- 3.2%
4,000 Anheuser-Busch Companies Inc.................. 199,960
10,000 Cadbury Schweppes plc, ADR.................... 465,200
23,000 General Mills Inc............................. 1,334,230
213,860 Parmalat SpA, GDR (b)......................... 757,321
958 Pernod-Ricard SA.............................. 209,047
30,000 The Coca-Cola Co.............................. 1,724,100
------------
4,689,858
------------
HEALTH CARE -- 2.6%
5,000 Dade Behring Holdings Inc..................... 381,750
20,000 Eli Lilly & Co................................ 1,138,600
MARKET
SHARES VALUE
-------- -------
8,000 Merck & Co. Inc............................... $ 413,520
70,000 Pfizer Inc.................................... 1,710,100
6,000 UnitedHealth Group Inc........................ 290,580
------------
3,934,550
------------
HOTELS AND GAMING -- 1.6%
273,037 Ladbrokes plc................................. 2,411,894
------------
METALS AND MINING -- 0.8%
12,000 Alcan Inc..................................... 1,200,960
------------
PUBLISHING -- 0.0%
5,000 PRIMEDIA Inc.................................. 70,200
------------
RETAIL -- 0.5%
5,000 Costco Wholesale Corp......................... 306,850
10,000 Wal-Mart Stores Inc........................... 436,500
------------
743,350
------------
TELECOMMUNICATIONS -- 1.2%
8,000 Philippine Long Distance
Telephone Co., ADR.......................... 514,720
27,000 Verizon Communications Inc.................... 1,195,560
------------
1,710,280
------------
TRANSPORTATION -- 0.3%
5,000 GATX Corp..................................... 213,768
5,000 Laidlaw International Inc..................... 176,100
------------
389,868
------------
WIRELESS COMMUNICATIONS -- 2.6%
200,000 Dobson Communications
Corp., Cl. A+ .............................. 2,558,000
30,000 Rural Cellular Corp., Cl. A+.. 1,305,000
49 Winstar Communications Inc.+ (a) ............. 0
------------
3,863,000
------------
TOTAL COMMON STOCKS........................... 50,938,178
------------
PREFERRED STOCKS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
3,679 PTV Inc., 10.000% Pfd., Ser. A ............... 24,281
------------
PRINCIPAL
AMOUNT
-------
CORPORATE BONDS -- 0.2%
DIVERSIFIED INDUSTRIAL -- 0.2%
$ 466,779 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a)(d)..................... 318,145
------------
See accompanying notes to schedule of investments.
4
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007 (UNAUDITED)
MARKET
SHARES VALUE
-------- -------
WARRANTS -- 0.0%
CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp., expire 11/24/09+ (a) ...... $ 0
------------
DIVERSIFIED INDUSTRIAL -- 0.0%
379,703 National Patent Development Corp.,
expire 08/14/08+ (a)(d)..................... 20,259
11,220 WHX Corp., expire 02/28/08+... ............... 2,300
------------
22,559
------------
FOOD AND BEVERAGE -- 0.0%
1,300 Parmalat SpA, GDR,
expire 12/31/15+ (a)(b)(d).................. 2,357
------------
HEALTH CARE -- 0.0%
12,930 Elite Pharmaceuticals Inc.,
expire 04/24/12+............................ 11,352
------------
TOTAL WARRANTS................................ 36,268
------------
PRINCIPAL
AMOUNT
-------
U.S. GOVERNMENT OBLIGATIONS -- 42.4%
U.S. TREASURY BILLS -- 32.1%
$48,128,000 U.S. Treasury Bills,
3.437% to 4.958%++,
10/04/07 to 03/20/08 (e).................... 47,707,554
------------
U.S. TREASURY NOTES -- 10.3%
15,448,000 U.S. Treasury Note,
3.000%, 02/15/08............................ 15,390,085
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ................................ 63,097,639
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $140,576,854)..................................... $148,711,579
============
--------------
Aggregate book cost.............................. $140,900,615
============
Gross unrealized appreciation.................... $ 13,058,379
Gross unrealized depreciation.................... (5,247,415)
------------
Net unrealized appreciation (depreciation) ...... $ 7,810,964
============
MARKET
SHARES VALUE
-------- -------
SECURITIES SOLD SHORT -- (0.8)%
COMMON STOCKS SOLD SHORT -- (0.8)%
AEROSPACE -- (0.8)%
33,000 Kaman Corp.................................... $ 1,140,480
------------
TOTAL SECURITIES SOLD SHORT
(Total proceeds $1,102,683)................. $ 1,140,480
============
--------------
Aggregate proceeds............................... $ 1,102,683
============
Gross unrealized appreciation.................... $ --
Gross unrealized depreciation.................... (37,797)
------------
Net unrealized appreciation (depreciation) ...... $ (37,797)
============
--------------
(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 the valuation of comparable
securities and other factors on a regular basis. At September 30, 2007, the
market value of fair valued securities amounted to $598,997 or 0.40% 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, 2007, the market value of the Rule 144A securities amounted to
$4,050,905 or 2.72% of total investments. Except as noted in (d), these
securities are liquid.
(c) Security considered an affiliated holding because the Fund owns at least 5%
of its outstanding shares.
(d) At September 30, 2007, the Fund held investments in restricted and illiquid
securities amounting to $595,580 or 0.40% of total investments, which were
valued under methods approved by the Board as follows:
ACQUISITION
SHARES/ 09/30/2007
PRINCIPAL ACQUISITION ACQUISITION CARRYING VALUE
AMOUNT ISSUER DATE COST PER UNIT
--------- ------ ----------- ----------- -----------
$ 50,000 AMNEX Inc., 8.500%, 09/25/49 09/15/97 $ 48,801 --
466,779 GP Strategies Corp. Sub Deb.,
6.000%, 08/14/08 ...........08/14/03 318,094 $ 68.1575
14,561 Interep National
Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A ....05/03/02 1,347,184 17.5001
379,703 National Patent
Development Corp.,
Warrants expire 08/14/08 ...11/24/04 -- 0.0534
1,300 Parmalat SpA GDR,
Warrants expire 12/31/15 ...11/09/05 -- 1.8131
(e) At September 30, 2007, $1,500,000 of the principal amount was pledged as
collateral for a security sold short.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
CVO Contingent Value Obligation
GDR Global Depository Receipt
STEP Step coupon bond. The rate disclosed is that in effect at September 30,
2007.
See accompanying notes to schedule of investments.
5
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
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 market's 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.
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 days or less that are not credit
impaired are valued at amortized cost, unless the Board determines such amount
does not reflect the securities' fair value, in which case these securities will
be fair valued as determined by the Board. Debt instruments having a maturity
greater than 60 days for which market quotations are readily available are
valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price.
Securities and assets for which market quotations are not readily available are
fair valued as determined by the Board.
6
DIRECTORS AND OFFICERS
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
GAMCO INVESTORS, INC.
E. Val Cerutti
CHIEF EXECUTIVE OFFICER,
CERUTTI CONSULTANTS, INC.
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
Dugald A. Fletcher
PRESIDENT, FLETCHER & COMPANY, INC.
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR,
LAWRENCE HOSPITAL
Anthonie C. van Ekris
CHAIRMAN, BALMAC INTERNATIONAL, INC.
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
OFFICERS
Bruce N. Alpert
PRESIDENT
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
Laurissa M. Martire
VICE PRESIDENT & OMBUDSMAN
James E. McKee
SECRETARY
Agnes Mullady
TREASURER
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.
STOCK EXCHANGE LISTING
6.00%
Common Preferred
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NYSE-Symbol: GCV GCV PrB
Shares Outstanding: 12,545,406 990,800
The Net Asset Value per share appears in the Publicly Traded Funds column, under
the heading "Convertible Securities Funds," in Monday's The Wall Street Journal.
It is also listed in Barron's 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.
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For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
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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
shares of its common stock in the open market when the Fund's shares are trading
at a discount of 10% or more from the net asset value of the shares. The Fund
may also, from time to time, purchase shares of its Series B Cumulative
Preferred Stock in the open market when the shares are trading at a discount to
the Liquidation Value of $25.00.
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THE GABELLI CONVERTIBLE AND
INCOME SECURITIES FUND INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
THIRD QUARTER REPORT
SEPTEMBER 30, 2007
GCV Q3/2007
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.
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By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date November 15, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date November 15, 2007
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By (Signature and Title)* /s/ Agnes Mullady
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Agnes Mullady,
Principal Financial Officer and Treasurer
Date November 15, 2007
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* Print the name and title of each signing officer under his or her signature.