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: March 31, 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.
First Quarter Report
March 31, 2007
TO OUR SHAREHOLDERS,
During the first quarter of 2007, The Gabelli Convertible and Income
Securities Fund's (the "Fund") total return was up 2.58% 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 0.64%, 1.47%, and 2.61%, respectively. The Fund's market price on
March 31, 2007 was $9.12, which equated to a 9.62% premium to its NAV of $8.32
at the end of the quarter. The Fund's market price, adjusted for distributions,
was up 4.19% during the first quarter of 2007.
Enclosed is the investment portfolio as of March 31, 2007.
COMPARATIVE RESULTS
----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 2007 (A)
-------------------------------------------------
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)........................... 2.58% 12.50% 8.12% 6.42% 6.71% 7.49% 7.94%
INVESTMENT TOTAL RETURN (C) ................... 4.25 8.31 2.37 5.39 9.35 N/A(D) 7.78(D)
S&P 500 Index.................................... 0.64 11.82 10.05 6.26 8.20 10.87 11.16(e)
Lehman Bros. Gov't/Corporate Bond Index.......... 1.47 6.38 2.90 5.57 6.51 6.78 7.25(e)
Lipper Convertible Securities Fund Average....... 2.61 8.26 7.39 8.19 8.03 9.53 9.85(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. PERFORMANCE RETURNS FOR LESS THAN ONE YEAR ARE NOT
ANNUALIZED. 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. 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 OR 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, 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
MARCH 31, 2007 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
CONVERTIBLE CORPORATE BONDS -- 29.8%
AEROSPACE -- 2.6%
$ 830,000 GenCorp Inc., Sub. Deb. Cv.,
5.750%, 04/15/07...................$ 859,050
3,038,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12................... 3,091,165
------------
3,950,215
------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 6.2%
6,600,000 Standard Motor Products Inc.,
Sub. Deb. Cv.,
6.750%, 07/15/09................... 6,468,000
3,000,000 The Pep Boys - Manny, Moe & Jack, Cv.,
4.250%, 06/01/07................... 3,007,500
------------
9,475,500
------------
BROADCASTING -- 4.0%
4,800,000 Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
6.000%, 09/15/12................... 4,698,000
1,500,000 Sinclair Broadcast Group Inc.,
Sub. Deb. Cv. (STEP),
4.875%, 07/15/18................... 1,483,125
------------
6,181,125
------------
BUSINESS SERVICES -- 0.0%
900,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)(d)........... 0
------------
CABLE -- 0.0%
400,000 Adelphia Communications Corp.,
Sub. Deb. Cv.,
3.250%, 05/01/21+ (d).............. 3,600
------------
COMMUNICATIONS EQUIPMENT -- 7.2%
3,000,000 Agere Systems Inc., Sub. Deb. Cv.,
6.500%, 12/15/09................... 3,086,250
2,000,000 Lucent Technologies Inc.,
Sub. Deb. Cv.,
8.000%, 08/01/31................... 2,000,000
6,000,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08................... 5,955,000
------------
11,041,250
------------
CONSUMER PRODUCTS -- 0.1%
100,000 Church & Dwight Co. Inc., Deb. Cv.,
5.250%, 08/15/33 (b)............... 168,250
1,500,000 Pillowtex Corp., Sub. Deb. Cv.,
9.000%, 12/15/07+ (a)(d)........... 0
------------
168,250
------------
PRINCIPAL MARKET
AMOUNT VALUE
--------- -------
DIVERSIFIED INDUSTRIAL -- 0.6%
$ 1,400,000 Roper Industries Inc., Cv. (STEP),
1.481%, 01/15/34...................$ 990,500
------------
ELECTRONICS -- 0.0%
10,000 Artesyn Technologies Inc.,
Sub. Deb. Cv.,
5.500%, 08/15/10 (b)............... 13,691
------------
ENERGY AND UTILITIES -- 0.9%
500,000 Devon Energy Corp., Deb. Cv.,
4.950%, 08/15/08................... 699,375
257,000 Moran Energy Inc., Sub. Deb. Cv.,
8.750%, 01/15/08................... 267,280
400,000 Unisource Energy Corp., Cv.,
4.500%, 03/01/35 (b)............... 451,000
------------
1,417,655
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EQUIPMENT AND SUPPLIES -- 0.0%
10,000 Regal - Beloit Corp., Sub. Deb. Cv.,
2.750%, 03/15/24................... 18,325
------------
FINANCIAL SERVICES -- 0.3%
500,000 Conseco Inc., Cv. (STEP),
3.500%, 09/30/35 (b)............... 479,375
------------
HEALTH CARE -- 5.3%
150,000 Advanced Medical Optics Inc.,
Sub. Deb. Cv.,
3.250%, 08/01/26................... 141,563
8,000,000 ICOS Corp., Sub. Deb. Cv.,
2.000%, 07/01/23................... 7,970,000
150,000 Sabratek Corp., Sub. Deb. Cv.,
6.000%, 04/16/07+ (a)(d)........... 84,763
------------
8,196,326
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HOTELS AND GAMING -- 0.0%
10,000 Hilton Hotels Corp., Cv.,
3.375%, 04/15/23................... 16,313
10,000 Wynn Resorts Ltd.,
Sub. Deb. Cv.,
6.000%, 07/15/15 (b)............... 41,387
------------
57,700
------------
MANUFACTURED HOUSING AND
RECREATIONAL VEHICLES -- 0.1%
100,000 Fleetwood Enterprises Inc.,
Sub. Deb. Cv.,
5.000%, 12/15/23 (b)............... 99,750
------------
REAL ESTATE -- 1.4%
Palm Harbor Homes Inc., Cv.,
1,550,000 3.250%, 05/15/24 (b) .............. 1,300,062
950,000 3.250%, 05/15/24 .................. 796,813
------------
2,096,875
------------
See accompanying notes to schedule of investments.
2
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
-------- -------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
RETAIL -- 0.1%
$ 60,000 Costco Wholesale Corp.,
Sub. Deb. Cv.,
Zero Coupon, 08/19/17..............$ 73,650
100,000 Pier 1 Imports Inc., Cv. (STEP),
6.375%, 02/15/36................... 95,875
------------
169,525
------------
TELECOMMUNICATIONS -- 0.0%
AMNEX Inc., Sub. Deb. Cv.,
30,000 8.500%, 09/25/49+ (a)(b)(c)(d) .... 0
50,000 8.500%, 09/25/49+ (a)(d) .......... 0
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23................... 55,625
------------
55,625
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WIRELESS COMMUNICATIONS -- 1.0%
1,500,000 Nextel Communications Inc., Cv.,
5.250%, 01/15/10................... 1,496,250
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TOTAL CONVERTIBLE
CORPORATE BONDS.................... 45,911,537
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SHARES
------
CONVERTIBLE PREFERRED STOCKS -- 4.2%
AEROSPACE -- 0.7%
7,300 Northrop Grumman Corp.,
7.000% Cv. Pfd., Ser. B............ 1,032,950
------------
BROADCASTING -- 0.7%
100 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C (a)(b)(c).. 1,000,000
------------
BUSINESS SERVICES -- 0.3%
14,561 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A+ (a)(b)(c). 509,637
20,000 Key3Media Group Inc.,
5.500% Cv. Pfd., Ser. B+ (a)....... 117
------------
509,754
------------
COMMUNICATIONS EQUIPMENT -- 0.6%
800 Lucent Technologies Capital Trust I,
7.750% Cv. Pfd..................... 828,600
------------
ENERGY AND UTILITIES -- 0.6%
6,000 AES Trust III,
6.750% Cv. Pfd..................... 301,440
500 El Paso Corp.,
4.990% Cv. Pfd. (b)................ 641,277
300 El Paso Energy Capital Trust I,
4.750% Cv. Pfd., Ser. C............ 12,000
------------
954,717
------------
MARKET
SHARES VALUE
-------- -------
ENTERTAINMENT -- 0.5%
2,000 Metromedia International Group Inc.,
7.250% Cv. Pfd.+...................$ 95,100
29,400 Six Flags Inc.,
7.250% Cv. Pfd., Ser. B............ 687,960
------------
783,060
------------
FINANCIAL SERVICES -- 0.0%
100 Alleghany Corp., 5.750% Cv. Pfd. .... 35,038
------------
TELECOMMUNICATIONS -- 0.4%
14,400 Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B............ 673,200
------------
TRANSPORTATION -- 0.4%
2,500 GATX Corp.,
$2.50 Cv. Pfd. .................... 600,112
------------
TOTAL CONVERTIBLE
PREFERRED STOCKS................... 6,417,431
------------
COMMON STOCKS -- 43.0%
AEROSPACE -- 0.3%
52,500 Rolls-Royce Group plc+............... 510,619
3,108,000 Rolls-Royce Group plc, Cl. B......... 6,269
------------
516,888
------------
AUTOMOTIVE -- 1.8%
100,000 ADESA Inc............................ 2,763,000
------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.1%
35,000 Genuine Parts Co..................... 1,715,000
------------
BROADCASTING -- 0.0%
5,000 Emmis Communications Corp., Cl. A 42,200
------------
BUSINESS SERVICES -- 1.9%
38,700 GP Strategies Corp.+................. 352,170
345,800 Trans-Lux Corp....................... 2,541,630
------------
2,893,800
------------
CABLE AND SATELLITE -- 0.1%
5,000 Rogers Communications Inc., Cl. B ... 163,800
------------
COMMUNICATIONS EQUIPMENT -- 0.4%
30,000 Corning Inc.+........................ 682,200
------------
COMPUTER HARDWARE -- 0.9%
14,000 International Business
Machines Corp. .................... 1,319,640
------------
COMPUTER SOFTWARE AND SERVICES -- 2.2%
65,000 Hyperion Solutions Corp.+............ 3,368,950
2,000 Microsoft Corp....................... 55,740
------------
3,424,690
------------
See accompanying notes to schedule of investments.
3
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
-------- -------
COMMON STOCKS (CONTINUED)
CONSUMER PRODUCTS -- 0.9%
10,000 Avon Products Inc....................$ 372,600
10,000 Swedish Match AB..................... 178,653
20,000 The Scotts Miracle-Gro Co., Cl. A 880,600
------------
1,431,853
------------
DIVERSIFIED INDUSTRIAL -- 1.1%
40,000 General Electric Co.................. 1,414,400
36,000 WHX Corp.+........................... 306,000
------------
1,720,400
------------
ELECTRONICS -- 0.3%
20,000 Intel Corp........................... 382,600
------------
ENERGY AND UTILITIES -- 11.0%
7,000 Anadarko Petroleum Corp.............. 300,860
10,000 BP plc, ADR.......................... 647,500
4,000 Cameron International Corp.+......... 251,160
2,700 CH Energy Group Inc.................. 131,463
17,000 Chevron Corp......................... 1,257,320
5,000 ConocoPhillips....................... 341,750
2,000 Devon Energy Corp.................... 138,440
25,000 Exxon Mobil Corp..................... 1,886,250
6,000 FPL Group Inc........................ 367,020
2,000 Giant Industries Inc.+............... 151,300
25,000 Great Plains Energy Inc.............. 811,250
20,000 Halliburton Co....................... 634,800
10,000 Hydril Co.+.......................... 962,400
30,000 Kinder Morgan Inc.................... 3,193,500
43,000 Mirant Corp.+........................ 1,739,780
1,200,000 Mirant Corp. Escrow+ (a)............. 0
4,000 National Fuel Gas Co................. 173,040
20,000 Northeast Utilities.................. 655,400
10,000 Progress Energy Inc., CVO+........... 3,200
20,000 Royal Dutch Shell plc, Cl. A, ADR ... 1,326,000
7,000 SJW Corp............................. 283,360
23,000 TXU Corp............................. 1,474,300
10,000 Xcel Energy Inc...................... 246,900
------------
16,976,993
------------
EQUIPMENT AND SUPPLIES -- 0.2%
8,000 Mueller Industries Inc............... 240,800
------------
FINANCIAL SERVICES -- 7.4%
4,000 AllianceBernstein Holding LP......... 354,000
35,000 American Express Co.................. 1,974,000
1,500 Ameriprise Financial Inc............. 85,710
45,000 Citigroup Inc........................ 2,310,300
2,000 Compass Bancshares Inc............... 137,600
165,000 Realogy Corp.+....................... 4,885,650
50,000 TD Banknorth Inc..................... 1,608,000
------------
11,355,260
------------
MARKET
SHARES VALUE
-------- -------
FOOD AND BEVERAGE -- 3.1%
4,000 Anheuser-Busch Companies Inc.........$ 201,840
10,000 Cadbury Schweppes plc, ADR........... 513,700
4,000 Dean Foods Co.+...................... 186,960
23,000 General Mills Inc.................... 1,339,060
213,860 Parmalat SpA, GDR+ (b)............... 915,235
958 Pernod-Ricard SA..................... 194,290
30,000 The Coca-Cola Co..................... 1,440,000
------------
4,791,085
------------
HEALTH CARE -- 2.7%
1,000 Biosite Inc.+........................ 83,970
22,000 Eli Lilly & Co....................... 1,181,620
8,000 Merck & Co. Inc...................... 353,360
73,000 Pfizer Inc........................... 1,843,980
15,000 Schering-Plough Corp................. 382,650
6,000 UnitedHealth Group Inc............... 317,820
------------
4,163,400
------------
HOTELS AND GAMING -- 1.4%
273,037 Ladbrokes plc........................ 2,162,610
------------
METALS AND MINING -- 0.0%
1,000 Peabody Energy Corp. ................ 40,240
------------
PUBLISHING -- 0.0%
1,000 Idearc Inc........................... 35,100
------------
REAL ESTATE -- 3.2%
150,000 New Plan Excel Realty Trust.......... 4,954,500
------------
RETAIL -- 0.5%
5,000 Costco Wholesale Corp................ 269,200
5,000 The Home Depot Inc................... 183,700
5,000 Wal-Mart Stores Inc.................. 234,750
------------
687,650
------------
SPECIALTY CHEMICALS -- 0.9%
40,000 MacDermid Inc........................ 1,394,800
------------
TELECOMMUNICATIONS -- 1.2%
12,000 Philippine Long Distance
Telephone Co., ADR................. 633,600
30,000 Verizon Communications Inc........... 1,137,600
------------
1,771,200
------------
TRANSPORTATION -- 0.4%
5,000 GATX Corp............................ 239,021
4,400 General Maritime Corp................ 127,072
5,000 Laidlaw International Inc............ 173,000
------------
539,093
------------
WIRELESS COMMUNICATIONS -- 0.0%
49 Winstar Communications Inc.+ (a)..... 0
------------
TOTAL COMMON STOCKS.................. 66,168,802
------------
See accompanying notes to schedule of investments.
4
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007 (UNAUDITED)
MARKET
SHARES VALUE
-------- -------
PREFERRED STOCKS -- 0.0%
TELECOMMUNICATIONS -- 0.0%
3,679 PTV Inc., 10.000% Pfd., Ser. A ......$ 16,004
------------
PRINCIPAL
AMOUNT
-------
CORPORATE BONDS -- 0.5%
DIVERSIFIED INDUSTRIAL -- 0.5%
$ 1,122,500 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a)(c)............ 755,557
------------
SHARES
--------
WARRANTS -- 0.4%
BUSINESS SERVICES -- 0.0%
87,500 Interep National Radio Sales Inc.,
expire 05/06/07+ (a)(b)(c)......... 0
------------
CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp.,
expire 11/24/09+ (a) .............. 0
------------
DIVERSIFIED INDUSTRIAL -- 0.4%
112,431 GP Strategies Corp.,
expire 08/14/08+ (a)(c)............ 410,837
379,703 National Patent Development Corp.,
expire 08/14/08+ (a)(c)............ 234,381
11,220 WHX Corp., expire 02/28/08+.......... 4,208
------------
649,426
------------
FOOD AND BEVERAGE -- 0.0%
1,300 Parmalat SpA, GDR,
expire 12/31/15+ (a)(b)(c)......... 0
------------
TOTAL WARRANTS....................... 649,426
------------
PRINCIPAL
AMOUNT
--------
U.S. GOVERNMENT OBLIGATIONS -- 22.1%
$34,093,000 U.S. Treasury Bills,
5.009% to 5.153%++,
04/12/07 to 09/06/07............... 33,926,803
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $146,521,450)............................$153,845,560
============
--------------
Aggregate book cost.....................$146,845,211
============
Gross unrealized appreciation...........$ 11,020,165
Gross unrealized depreciation........... (4,019,816)
------------
Net unrealized appreciation
(depreciation) .......................$ 7,000,349
============
--------------
(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 March 31, 2007, the
market value of fair valued securities amounted to $2,995,292 or 1.95% 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, 2007, the market value of Rule 144A securities amounted to $5,619,664
or 3.65% of total investments. Except as noted in (c), these securities
are liquid.
(c) At March 31, 2007, the Fund held investments in restricted and illiquid
securities amounting to $2,910,412 or 1.89% of total investments, which
were valued under methods approved by the Board as follows:
ACQUISITION
SHARES/ 03/31/2007
PRINCIPAL ACQUISITION ACQUISITION CARRYING VALUE
AMOUNT ISSUER DATE COST PER UNIT
-------- ------ ------ ------ --------
$ 50,000 AMNEX Inc.,
8.500%, 09/25/49 ........ 09/15/97 $ 48,800 --
1,122,500 GP Strategies Corp.
Sub Dev.,
6.000%, 08/14/08 ........ 08/14/03 764,947 $ 67.3102
112,431 GP Strategies Corp.
Warrants expire
08/14/08 ................ 08/08/03 272,932 3.6541
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C .................. 04/22/02 1,000,000 10,000.0000
14,561 Interep National
Radio Sales Inc.,
4.000% Cv. Pfd.,
Ser. A .................. 05/03/02 1,347,184 35.0001
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 ................ 11/24/04 -- 0.6173
1,300 Pamalat SpA GDR,
Warrants expire
12/31/15 ................ 11/09/05 -- --
(d) Security in default.
+ 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 March 31, 2007.
See accompanying notes to schedule ofinvestments.
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 OFFICERS
Mario J. Gabelli, CFA Bruce N. Alpert
CHAIRMAN & CHIEF EXECUTIVE OFFICER, PRESIDENT
GAMCO INVESTORS, INC.
Peter D. Goldstein
E. Val Cerutti CHIEF COMPLIANCE OFFICER
CHIEF EXECUTIVE OFFICER,
CERUTTI CONSULTANTS, INC. Laurissa M. Martire
VICE PRESIDENT & OMBUDSMAN
Anthony J. Colavita
ATTORNEY-AT-LAW, James E. McKee
ANTHONY J. COLAVITA, P.C. SECRETARY
Dugald A. Fletcher Agnes Mullady
PRESIDENT, FLETCHER & COMPANY, INC. TREASURER
Anthony R. Pustorino INVESTMENT ADVISER
CERTIFIED PUBLIC ACCOUNTANT, Gabelli Funds, LLC
PROFESSOR EMERITUS, PACE UNIVERSITY One Corporate Center
Rye, New York 10580-1422
Werner J. Roeder, MD
MEDICAL DIRECTOR, CUSTODIAN
LAWRENCE HOSPITAL State Street Bank and Trust Company
Anthonie C. van Ekris COUNSEL
CHAIRMAN, BALMAC INTERNATIONAL, INC. Skadden, Arps, Slate, Meagher & Flom LLP
Salvatore J. Zizza TRANSFER AGENT AND REGISTRAR
CHAIRMAN, ZIZZA & CO., LTD. Computershare Trust Company, N.A.
STOCK EXCHANGE LISTING
Common 6.00% Preferred
------ ---------------
NYSE-Symbol: GCV GCV PrB
Shares Outstanding: 12,396,090 990,800
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.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
THE GABELLI CONVERTIBLE AND
INCOME SECURITIES FUND INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
FIRST QUARTER REPORT
MARCH 31, 2007
GCV Q1/2007
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
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date May 22, 2007
----------------------------------------------------------------------------
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
Date May 22, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady, Principal Financial Officer & Treasurer
Date May 22, 2007
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* Print the name and title of each signing officer under his or her signature.