June 08, 2007
Gabelli Launches New Value-Oriented SRI Fund
by Anne Moore Odell
Gabelli Funds offers its first open SRI Fund, backed up by years of SRI experience working with
Gabelli Funds of Rye, NY, this Tuesday
announced the launch of the Gabelli SRI Fund. The Fund's portfolio will include stocks from a wide
range of companies who met certain social and environmental criteria and that will create
stockowner value. Gabelli Funds, the Fund's advisor, is solely owned by GAMCO Investors (ticker: GBL) with more than $29 billion in assets
under management. GAMCO has nearly twenty years experience in managing socially screened separate
"From our first institutional client with a social mandate in 1987 to
today, we pride ourselves in being able to customize portfolios for clients that meet their goals,
objectives, and social guidelines, regardless of how stringent they may be," said Christopher
Desmarais, Senior Vice President, Director of SRI, and Portfolio Manager for the Gabelli SRI Fund.
"We believe the time is right to offer this historically institutional product to the
mutual fund community in the form of The Gabelli SRI Fund. This Fund will allow the mutual fund
investor - if he or she chooses - to invest with their conscience," Desmarais added.
Securities will be chosen using the resources of the GAMCO organization. The Gabelli SRI
Fund's guidelines, as listed its prospectus, will preclude investments in the top 50 defense
companies, companies involved with abortion, and companies with greater than 5% revenue in tobacco,
gambling and alcohol products and/or services. The Fund will also identify companies that have a
positive overall environmental record.
"Our social screening process has been developed
and refined over these past twenty years. We utilize both our internal research of 29 analysts who
are broken up by industry and follow their companies around the world, thus they have an intimate
understanding of the businesses, as well as an outside service," Desmarais explained. "The outside
service Social Investment Research Service (SIRS) allows us real time access, via the web, to a
database on relevant social issues."
The Fund's investment strategy is to find companies
whose stocks are undervalued relative to their private market value, or, in other words, the value
of a company as if the company's parts were independently traded entities. At least 80% of the
Fund's assets will be in companies that meet the Fund's SRI guidelines.
The Fund is
offered in multi-class shares: No-load Class AAA (ticker: SRIGX), Up-front Load Class A (ticker:
SRIAX), Level-load Class C (ticker: SRICX) and Class I (ticker: SRIDX). Investors can buy the Fund
directly through Gabelli with a no-load option or through brokerage firms in a load form. The
minimum investment is $1,000 with lower minimums for retirement plans and automatic investment