Original GBL Prospectus - Gabelli

tants and Ñnancial consultants have not been a major source of new institutional Separate Accounts
business for the Company. However, these consultants have signiÑcantly increased their presence among
institutional investors. As a result, the Company intends both to add marketing personnel to target pension
and Ñnancial consultants and to expand its eÅorts through its traditional marketing channels.
‚ Attracting and Retaining Experienced Professionals. Following the OÅering, the availability of publicly
traded Class A Common Stock will enhance the Company's ability to attract and retain top performing
investment professionals. The ability to attract and retain highly experienced investment and other
professionals with a long-term commitment to the Company and its clients has been, and will continue to
be, a signiÑcant factor in its long-term growth. As the Company continues to increase the breadth of its
investment management capabilities, it plans to add portfolio managers and other investment personnel in
order to foster expansion of its products.
‚ Capitalizing on Acquisitions and Strategic Alliances. The Company intends to selectively and opportunistically
pursue acquisitions and alliances that will broaden its product oÅerings and add new sources of
distribution. The Company believes that it will be better positioned to pursue acquisitions and alliances after
the OÅering because it will be one of a relatively few publicly-traded investment management Ñrms. At
present, the Company has no plans, arrangements or understandings relating to any speciÑc acquisitions or
alliances.
Mutual Funds
The Mutual Funds include 23 open-end Mutual Funds and three closed-end funds which had total assets
as of September 30, 1998 of $7.0 billion. The open-end Mutual Funds are available to individuals and
institutions primarily on a no-load basis, while the closed-end funds are listed and traded on the NYSE. At
September 30, 1998, the open-end funds had total assets of $5.5 billion and the closed-end funds had total
assets of $1.5 billion. The assets managed in the closed-end funds represent approximately 21% of the assets in
the Mutual Funds and 11% of the total assets under management of the Company at September 30, 1998.
The Company's assets under management consist of a broad range of U.S. and international stock, bond and
money market mutual funds that meet the varied needs and objectives of its Mutual Fund shareholders. At
September 30, 1998, over two-thirds of the Company's assets under management in open-end, no-load equity
Mutual Funds had been obtained through direct sales relationships.
The Company, through its aÇliates, acts as adviser to all of the Mutual Funds, except with respect to the
Gabelli Capital Asset Fund in which the Company acts as a subadviser and Guardian Investment Services
Corporation, an unaÇliated company, acts as manager. As subadviser, the Company makes day-to-day
investment decisions for the Gabelli Capital Asset Fund.
Funds Adviser, a wholly owned subsidiary of the Company, acts as the investment adviser for all of the
Mutual Funds other than the Gabelli Westwood family of funds and the Treasurer's Funds.
Gabelli Advisers, Inc. acts as investment adviser to the Gabelli Westwood family of funds and has
retained Westwood Management to act as subadviser for Ñve of the six portfolios. Westwood Management is a
wholly owned subsidiary of Southwest Securities Group, Inc., a publicly held securities brokerage Ñrm. In its
capacity as subadviser, Westwood Management makes day-to-day investment decisions and provides the
portfolio management services for Ñve of the six current Gabelli Westwood portfolios. The Gabelli Westwood
Mighty Mites SM Fund, launched in May 1998, is advised solely by Gabelli Advisers, Inc., using a team
investment approach, without any subadvisers. Westwood Management owns 100% of the Class A common
stock of Gabelli Advisers, Inc. (representing 20% of the economic interest), and is not an aÇliate of the
Company. The Company believes that Gabelli Advisers, Inc. will serve as a platform for future growth and
diversiÑcation of the Company's product line.
Gabelli Fixed Income L.L.C. currently manages short-term and short-intermediate term Ñxed income
securities for the Treasurer's Funds as well as for the Separate Accounts. In the future, the Company plans to
further increase and diversify the number of Ñxed income products oÅered by Gabelli Fixed Income L.L.C.
Certain members of senior management of Gabelli Fixed Income L.L.C. own a 19.9% equity interest in it.
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