Edgar Filing: GABELLI CONVERTIBLE & INCOME SECURITIES FUND INC

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05715
------------

The Gabelli Convertible and Income Securities Fund Inc.
--------------------------------------------
(Exact name of registrant as specified in charter)

One Corporate Center
Rye, New York 10580-1422
--------------------------------------------
(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
---------------

Date of fiscal year end: December 31
---------------

Date of reporting period: December 31, 2004
--------------------

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
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 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. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

[LOGO OMITTED]

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.

Annual Report
December 31, 2004

TO OUR SHAREHOLDERS,

The Sarbanes-Oxley Act requires a fund's principal executive and financial
officers to certify the entire contents of the semi-annual and annual
shareholder reports in a filing with the Securities and Exchange Commission on
Form N-CSR. This certification would cover the portfolio manager's commentary
and subjective opinions if they are attached to or a part of the financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.

Because we do not want our portfolio managers to eliminate their opinions
and/or restrict their commentary to historical facts, we have separated their
commentary from the financial statements and investment portfolio and have sent
it to you separately. Both the commentary and the financial statements,
including the portfolio of investments, will be available on our website at
www.gabelli.com/funds.

Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2004.

COMPARATIVE RESULTS
--------------------------------------------------------------------------------

AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2004 (A)
----------------------------------------------------
Since
Inception
QUARTER 1 YEAR 3 YEAR 5 YEAR 10 YEAR 15 YEAR (7/3/89)
------- ------ ------ ------ ------- ------- ---------

GABELLI CONVERTIBLE & INCOME SECURITIES FUND
NAV RETURN (B) ............................... 4.30% 2.68% 3.49% 3.34% 6.76% 7.43% 7.60%
INVESTMENT RETURN (C) ........................ (5.60) (4.77) 2.99 6.76 N/A(D) N/A(D) 7.52 (D)

S&P 500 Index .................................. 9.23 10.87 3.58 (2.30) 12.07 10.93 11.43
Lipper Convertible Securities Fund Average ..... 6.92 8.58 8.21 3.41 10.05 10.10 10.03

(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. THE S&P 500 INDEX IS AN UNMANAGED INDICATOR OF STOCK MARKET
PERFORMANCE, WHILE THE LIPPER AVERAGE REFLECTS THE AVERAGE PERFORMANCE OF
OPEN-END MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY. DIVIDENDS ARE
CONSIDERED REINVESTED. PERFORMANCE FOR PERIODS LESS THAN ONE YEAR IS 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 CONSIDER THE INVESTMENT OBJECTIVES,
RISKS AND CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING.

(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET ASSET VALUE
("NAV") AND REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE
AND ADJUSTMENTS FOR RIGHTS OFFERINGS, AND ARE NET OF EXPENSES. SINCE
INCEPTION RETURN BASED ON INITIAL NET ASSET VALUE OF $10.00.

(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN 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.
--------------------------------------------------------------------------------

Sincerely yours,

/s/ Bruce N. Alpert
Bruce N. Alpert
President
February 24, 2005

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)

Under SEC rules, all funds are required to include in their annual and
semi-annual shareholder reports a presentation of portfolio holdings in a table,
chart or graph by reasonably identifiable categories. The following table which
presents portfolio holdings as a percent of total net assets is provided in
compliance with such requirement.

U.S. Government Obligations .......................... 33.5%
Energy and Utilities ................................. 8.5%
Automotive: Parts and Accessories .................... 7.7%
Aviation: Parts and Services ......................... 7.2%
Business Services .................................... 5.0%
Communications Equipment ............................. 4.7%
Food and Beverage .................................... 4.6%
Broadcasting ......................................... 4.5%
Financial Services ................................... 3.8%
Health Care .......................................... 3.1%
Telecommunications ................................... 2.1%
Electronics .......................................... 2.0%
Entertainment ........................................ 2.0%
Cable ................................................ 1.8%
Diversified Industrial ............................... 1.6%
Real Estate .......................................... 1.4%
Wireless Communications .............................. 1.3%
Equipment and Supplies ............................... 1.2%
Aerospace ............................................ 1.0%
Retail ............................................... 0.8%
Transportation ....................................... 0.7%
Hotels and Gaming .................................... 0.4%
Automotive ........................................... 0.4%
Cable and Satellite .................................. 0.4%
Consumer Products .................................... 0.1%
Manufactured Housing and Recreational Vehicles ....... 0.1%
Environmental Services ............................... 0.1%
------
100.0%
======

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC. (THE "FUND") FILES A
COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FIRST AND THIRD
QUARTERS OF EACH FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS FILED FOR THE
QUARTER ENDED SEPTEMBER 30, 2004. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT
WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI (800-422-3554). THE FUND'S
FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE
REVIEWED AND COPIED AT THE COMMISSION'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC.
INFORMATION ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY
CALLING 1-800-SEC-0330.

PROXY VOTING: The Fund files Form N-PX with its complete proxy voting record for
the 12 months ended June 30th, no later than August 31st of each year. A
description of the Fund's proxy voting policies and procedures are available
without charge (i) upon request, by calling 800-GABELLI (800-422-3554); (ii) by
writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and
(iii) by visiting the Securities and Exchange Commission's website at
www.sec.gov.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2004

PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
CONVERTIBLE CORPORATE BONDS -- 29.3%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 6.6%
$2,780,000 Pep Boys - Manny, Moe &
Jack, Cv.,
4.250%, 06/01/07 ...$ 2,766,373 $ 2,842,550
------------- -------------
6,900,000 Standard Motor Products
Inc., Sub. Deb. Cv.,
6.750%, 07/15/09 ... 5,528,804 6,744,750
------------- -------------
8,295,177 9,587,300
------------- -------------
AVIATION: PARTS AND SERVICES -- 3.3%
830,000 GenCorp Inc., Sub. Deb. Cv.,
5.750%, 04/15/07 ... 808,169 911,963
4,028,000 Kaman Corp., Sub. Deb. Cv.,
6.000%, 03/15/12 ... 3,824,532 3,982,685
------------- -------------
4,632,701 4,894,648
------------- -------------
BROADCASTING -- 0.7%
1,100,000 Sinclair Broadcast Group
Inc., Sub. Deb. Cv.,
4.875%, 07/15/18 ... 1,115,117 1,060,125
------------- -------------
BUSINESS SERVICES -- 4.7%
900,000 BBN Corp., Sub. Deb. Cv.,
6.000%,
04/01/12+ (a)(c) ... 882,893 0
3,000,000 Franklin Resources Inc., Cv.,
Zero Coupon,
05/11/31 ........... 1,835,701 2,126,250
500,000 Navistar Financial Corp., Sub.
Deb. Cv., 4.750%,
04/01/09 ........... 450,729 521,875
Trans-Lux Corp.,
Sub. Deb. Cv.,
2,600,000 8.250%, 03/01/12 ... 2,508,414 2,639,000
1,500,000 7.500%, 12/01/06 ... 1,505,321 1,522,500
------------- -------------
7,183,058 6,809,625
------------- -------------
CABLE -- 1.8%
400,000 Adelphia Communications
Corp., Sub. Deb. Cv.,
3.250%,
05/01/21+ (c) ...... 127,000 88,000
2,500,000 Charter Communications Inc.,
Cv., 4.750%,
06/01/06 ........... 1,926,681 2,512,500
------------- -------------
2,053,681 2,600,500
------------- -------------
COMMUNICATIONS EQUIPMENT -- 4.0%
1,900,000 Agere Systems Inc., Sub. Deb.
Cv., 6.500%,
12/15/09 ........... 1,929,607 2,018,750
300,000 Corning Inc., Deb. Cv.,
Zero Coupon,
11/08/15 ........... 228,825 238,500
1,000,000 Lucent Technologies Inc., Sub.
Deb. Cv., 8.000%,
08/01/31 ........... 1,051,409 1,117,500
2,500,000 Nortel Networks Corp., Cv.,
4.250%, 09/01/08 ... 2,434,844 2,443,750
------------- -------------
5,644,685 5,818,500
------------- -------------
CONSUMER PRODUCTS -- 0.1%
100,000 Church & Dwight Co. Inc.,
Deb. Cv., 5.250%,
08/15/33 (b) ....... 100,000 130,875
------------- -------------
ELECTRONICS -- 2.0%
10,000 Artesyn Technologies,
Sub. Deb. Cv.,
5.500%, 08/15/10 (b) 10,673 17,050

PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
$1,000,000 Oak Industries Inc.,
Sub. Deb. Cv.,
4.875%, 03/01/08 ...$ 855,523 $ 1,040,000
2,000,000 TriQuint Semiconductor Inc.,
Sub. Deb. Cv.,
4.000%, 03/01/07 ... 1,941,874 1,945,000
------------- -------------
2,808,070 3,002,050
------------- -------------
ENERGY AND UTILITIES -- 1.3%
500,000 Devon Energy Corp., Deb.
Cv., 4.950%,
08/15/08 ........... 499,780 551,875
1,500,000 Mirant Corp., Deb. Cv.,
2.500%,
06/15/21+ (c) ...... 1,026,728 1,089,375
257,000 Moran Energy Inc.,
Sub. Deb. Cv.,
8.750%, 01/15/08 ... 183,756 255,715
------------- -------------
1,710,264 1,896,965
------------- -------------
EQUIPMENT AND SUPPLIES -- 0.8%
1,098,000 Robbins & Myers Inc.,
Sub. Deb. Cv.,
8.000%, 01/31/08 ... 1,101,508 1,169,370
------------- -------------
FOOD AND BEVERAGE -- 0.5%
1,000,000 Parmalat Capital, Cv.,
Zero Coupon,
12/31/05+ (c) ...... 872,155 274,568
1,000,000 Parmalat Netherlands BV,
Cv., Zero Coupon,
06/30/21+ (c) ...... 938,519 478,456
------------- -------------
1,810,674 753,024
------------- -------------
HEALTH CARE -- 0.3%
400,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 (b) 351,526 402,000
150,000 Sabratek Corp., Sub. Deb. Cv.,
6.000%,
04/15/05+ (a)(c) ... 84,763 0
------------- -------------
436,289 402,000
------------- -------------
HOTELS AND GAMING -- 0.0%
10,000 Wynn Resorts, Sub. Deb. Cv.,
6.000%, 07/15/15 (b) 10,242 30,625
------------- -------------
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 0.1%
100,000 Fleetwood Enterprises Inc.,
Cv., 5.000%,
12/15/23 (b) ....... 100,000 143,125
------------- -------------
REAL ESTATE -- 1.2%
Palm Harbor Homes Inc., Cv.,
350,000 3.250%, 05/15/24 ... 304,095 318,062
1,550,000 3.250%, 05/15/24 (b) 1,531,681 1,408,563
------------- -------------
1,835,776 1,726,625
------------- -------------
RETAIL -- 0.0%
60,000 Costco Companies Inc.,
Sub. Deb. Cv.,
Zero Coupon,
08/19/17 ........... 46,288 66,150
------------- -------------
TELECOMMUNICATIONS -- 0.4%
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23 (b) 49,646 53,250

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004

PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
CONVERTIBLE CORPORATE BONDS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
$ 500,000 Rogers Communications
Inc., Deb. Cv., 2.000%,
11/26/05 ...........$ 471,703 $ 493,750
------------- -------------
521,349 547,000
------------- -------------
TRANSPORTATION -- 0.4%
500,000 GATX Corp., Cv.,
7.500%, 02/01/07 (b) 500,000 586,250
------------- -------------
WIRELESS COMMUNICATIONS -- 1.1%
1,500,000 Nextel Communications Inc.,
Cv., 5.250%,
01/15/10 ........... 1,095,749 1,543,125
------------- -------------
TOTAL CONVERTIBLE
CORPORATE BONDS ..... 41,000,628 42,767,882
------------- -------------
SHARES
--------

CONVERTIBLE PREFERRED STOCKS -- 13.8%
AEROSPACE -- 0.7%
8,000 Northrop Grumman Corp.,
7.000% Cv. Pfd.,
Ser. B ............. 932,160 1,056,080
------------- -------------
AUTOMOTIVE -- 0.4%
2,500 Ford Motor Co. Capital Trust II,
6.500% Cv. Pfd. .... 117,705 131,975
General Motors Corp.,
10,000 5.250% Cv. Pfd.,
Ser. B ............. 250,000 230,700
9,000 4.500% Cv. Pfd.,
Ser. A ............. 225,000 225,810
------------- -------------
592,705 588,485
------------- -------------
AVIATION: PARTS AND SERVICES -- 3.9%
49,000 Coltec Capital Trust,
5.250% Cv. Pfd. .... 2,032,375 2,269,312
35,000 Sequa Corp.,
$5.00 Cv. Pfd. ..... 2,690,370 3,412,500
------------- -------------
4,722,745 5,681,812
------------- -------------
BROADCASTING -- 3.7%
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (a) ......... 1,000,000 1,077,137
100,000 Sinclair Broadcast Group
Inc.,
6.000% Cv. Pfd.,
Ser. D ............. 4,681,250 4,349,000
------------- -------------
5,681,250 5,426,137
------------- -------------
BUSINESS SERVICES -- 0.3%
15,133 Interep National Radio
Sales Inc., 4.000%
Cv. Pfd., Ser. A (a) 1,514,203 502,587
20,000 Key3Media Group, 5.500%
Cv. Pfd., Ser. A+ (a) 500,000 117
------------- -------------
2,014,203 502,704
------------- -------------
COMMUNICATIONS EQUIPMENT -- 0.7%
800 Lucent Technologies Capital
Trust I, 7.750%
Cv. Pfd. ........... 556,750 948,400
------------- -------------
DIVERSIFIED INDUSTRIAL -- 0.2%
WHX Corp.,
52,100 $3.75 Cv. Pfd.,
Ser. B+ ............ 262,338 208,400
28,000 6.500% Cv. Pfd.,
Ser. A+ ............ 216,762 114,800
------------- -------------
479,100 323,200
------------- -------------

MARKET
SHARES COST VALUE
--------- ---- ------
ENERGY AND UTILITIES -- 0.4%
6,000 AES Trust III,
6.750% Cv. Pfd. ....$ 229,530 $ 296,100
500 Cinergy Corp.,
9.500% Cv. Pfd. .... 25,025 31,700
4,000 FPL Group Inc.,
8.500% Cv. Pfd. .... 207,575 246,040
------------- -------------
462,130 573,840
------------- -------------
ENTERTAINMENT -- 2.0%
2,000 Metromedia International
Group Inc., 7.250%
Cv. Pfd.+ .......... 26,611 40,000
76,900 Rainbow Equity Securities
Trust II, 6.250%
Cv. Pfd. ........... 1,551,693 1,923,269
45,000 Six Flags Inc.,
7.250% Cv. Pfd. .... 851,255 995,850
------------- -------------
2,429,559 2,959,119
------------- -------------
TELECOMMUNICATIONS -- 1.0%
4,000 ALLTEL Corp.,
7.750% Cv. Pfd. .... 185,107 211,560
15,000 Cincinnati Bell Inc.,
6.750% Cv. Pfd.,
Ser. B ............. 427,662 611,250
12,000 Philippine Long Distance
Telephone Co.,
$3.50 Cv. Pfd.,
Ser. III ........... 471,755 592,800
------------- -------------
1,084,524 1,415,610
------------- -------------
TRANSPORTATION -- 0.3%
2,700 GATX Corp.,
$2.50 Cv. Pfd. ..... 376,585 405,000
------------- -------------
WIRELESS COMMUNICATIONS -- 0.2%
2,000 Andrew Corp.,
7.750% Cv. Pfd.,
Ser. A(a) .......... 96,350 314,199
------------- -------------
TOTAL CONVERTIBLE
PREFERRED STOCKS .... 19,428,061 20,194,586
------------- -------------

COMMON STOCKS -- 21.8%
AEROSPACE -- 0.3%
5,000 Kaman Corp., Cl. A ... 84,375 63,250
20,000 Titan Corp.+ ......... 437,044 324,000
------------- -------------
521,419 387,250
------------- -------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.1%
20,000 Dana Corp. ........... 364,500 346,600
30,000 Genuine Parts Co. .... 1,119,235 1,321,800
------------- -------------
1,483,735 1,668,400
------------- -------------
BROADCASTING -- 0.1%
10,000 News Corp., Cl. A 145,100 186,600
------------- -------------
CABLE AND SATELLITE -- 0.4%
15,000 DIRECTV Group Inc.+ .. 265,263 251,100
10,000 EchoStar Communications
Corp., Cl. A ....... 316,139 332,400
19,500 Loral Space &
Communications Ltd.+ 3,765 3,315
------------- -------------
585,167 586,815
------------- -------------

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004

MARKET
SHARES COST VALUE
--------- ---- ------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES -- 6.8%
7,000 BP plc, ADR ..........$ 282,583 $ 408,800
3,000 CH Energy Group Inc. . 83,900 144,150
5,000 ConocoPhillips ....... 281,536 434,150
25,000 Duke Energy Corp. .... 472,434 633,250
25,000 Exxon Mobil Corp. .... 912,280 1,281,500
10,000 FPL Group Inc. ....... 631,070 747,500
20,000 Great Plains
Energy Inc. ........ 598,720 605,600
26,300 Kaneb Services LLC ... 1,133,620 1,135,897
40,000 Northeast Utilities .. 722,124 754,000
10,000 Patina Oil & Gas Corp. 369,000 375,000
10,000 Progress Energy
Inc., CVO+ ......... 5,200 1,300
10,000 Public Service Enterprise
Group Inc. ......... 504,550 517,700
18,000 Royal Dutch Petroleum Co. 867,657 1,032,840
10,000 SEMCO Energy Inc. .... 84,410 53,400
8,000 SJW Corp. ............ 222,718 291,200
40,000 Unisource Energy Corp. 984,293 964,400
30,000 Xcel Energy Inc. ..... 504,374 546,000
------------- -------------
8,660,469 9,926,687
------------- -------------
ENVIRONMENTAL SERVICES -- 0.1%
3,900 Ionics Inc.+ ......... 168,925 169,026
------------- -------------
EQUIPMENT AND SUPPLIES -- 0.2%
10,000 Mueller Industries Inc. 441,495 322,000
2,000 Tomkins plc, ADR ..... 38,250 39,580
------------- -------------
479,745 361,580
------------- -------------
FINANCIAL SERVICES -- 3.8%
32,000 Alliance Capital Management
Holding LP ......... 1,076,624 1,344,000
35,000 American Express Co. . 1,835,003 1,972,950
12,000 Argonaut Group Inc.+ . 203,647 253,560
40,000 Citigroup Inc. ....... 1,806,811 1,927,200
------------- -------------
4,922,085 5,497,710
------------- -------------
FOOD AND BEVERAGE -- 4.1%
5,000 Allied Domecq plc, ADR 170,805 199,550
5,000 Cadbury Schweppes
plc, ADR ........... 160,190 188,500
8,000 Coca-Cola Co. ........ 363,555 333,040
65,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A 5,076,642 5,227,950
------------- -------------
5,771,192 5,949,040
------------- -------------
HEALTH CARE -- 2.8%
12,000 Bristol-Myers
Squibb Co. ......... 319,665 307,440
11,000 Eli Lilly & Co. ...... 656,626 624,250
25,000 Merck & Co. Inc. ..... 933,169 803,500
75,000 Pfizer Inc. .......... 2,358,622 2,016,750
15,000 Schering-Plough Corp. 236,353 313,200
------------- -------------
4,504,435 4,065,140
------------- -------------
HOTELS AND GAMING -- 0.4%
100,000 Hilton Group plc ..... 479,570 546,212
------------- -------------
REAL ESTATE -- 0.2%
6,000 LNR Property Corp. ... 372,210 377,460
------------- -------------

MARKET
SHARES COST VALUE
--------- ---- ------
RETAIL -- 0.8%
30,000 Albertson's Inc. .....$ 734,438 $ 716,400
20,000 Safeway Inc.+ ........ 418,380 394,800
------------- -------------
1,152,818 1,111,200
------------- -------------
TELECOMMUNICATIONS -- 0.7%
18,000 AT&T Corp. ........... 326,926 343,080
2,000 BellSouth Corp. ...... 50,680 55,580
8,000 Manitoba Telecom
Services Inc. ...... 267,056 327,171
10,000 MCI Inc. ............. 168,510 201,600
5,000 SBC Communications Inc. 113,100 128,850
------------- -------------
926,272 1,056,281
------------- -------------
WIRELESS COMMUNICATIONS -- 0.0%
49 Winstar Communications
Inc.+ (a) .......... 438 0
------------- -------------
TOTAL COMMON
STOCKS .............. 30,173,580 31,889,401
------------- -------------

PREFERRED STOCKS -- 0.2%
EQUIPMENT AND SUPPLIES -- 0.2%
13,000 Fedders Corp.,
8.600% Pfd., Ser. A 310,700 312,000
------------- -------------
TELECOMMUNICATIONS -- 0.0%
3,679 PTV Inc., 10.000% Pfd.,
Ser. A ............. 0 12,509
------------- -------------
TOTAL PREFERRED
STOCKS .............. 310,700 324,509
------------- -------------
PRINCIPAL
AMOUNT
---------

CORPORATE BONDS -- 0.9%
DIVERSIFIED INDUSTRIAL -- 0.9%
$2,000,000 GP Strategies Corp., Sub. Deb.,
6.000%, 08/14/08 (a) 1,501,071 1,366,796
------------- -------------
TELECOMMUNICATIONS -- 0.0%
80,000 Amnex Inc., Sub. Deb.,
Zero Coupon,
09/25/49+ (a)(b)(c) 71,773 0
------------- -------------
TOTAL CORPORATE
BONDS ............... 1,572,844 1,366,796
------------- -------------
SHARES
--------

WARRANTS -- 0.5%
CONSUMER PRODUCTS -- 0.0%
4,331 Pillowtex Corp., expires
11/24/09+ (a) ...... 120,955 0
------------- -------------
DIVERSIFIED INDUSTRIAL -- 0.5%
250,000 GP Strategies Corp.,
expires
08/14/08+ (a)(d).... 637,065 740,330
379,703 National Patent
Development Corp.,
expires
08/14/08+ (a)(d).... 0 22,270
------------- -------------
637,065 762,600
------------- -------------
TOTAL WARRANTS ....... 758,020 762,600
------------- -------------

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004

PRINCIPAL MARKET
AMOUNT COST VALUE
--------- ---- ------
U.S. GOVERNMENT OBLIGATIONS -- 33.5%
$49,036,000 U.S. Treasury Bills,
1.794% to 2.202%++,
01/20/05 to
03/17/05 .......... $ 48,927,647 $ 48,928,144
------------- -------------
TOTAL INVESTMENTS -- 100.0% ...... $ 142,171,480 146,233,918
=============

OTHER ASSETS IN EXCESS OF LIABILITIES .......... 968,053

PREFERRED STOCK
(991,800 preferred shares outstanding) ....... (49,770,000)
-------------

NET ASSETS -- COMMON STOCK
(11,717,040 common shares outstanding) ....... $ 97,431,971
=============
NET ASSET VALUE PER COMMON SHARE
($97,431,971 / 11,717,040 shares outstanding) $8.32
=====
------------------
For Federal tax purposes:
Aggregate cost ................... $ 142,992,958
=============
Gross unrealized appreciation .... $ 9,432,148
Gross unrealized depreciation .... (6,704,373)
-------------
Net unrealized appreciation
(depreciation) .................. $ 2,727,775
=============
------------------
(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 December 31, 2004, the
market value of fair valued securities amounted to $4,023,436 or 2.8% 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 December
31, 2004, the market value of Rule 144A securities amounted to $2,771,738
or 1.9% of total investments. Of such amount, $1,710,053 were considered
liquid securities and $1,061,685 were investments in restricted and
illiquid securities that were valued under methods approved by the Board of
Directors, as follows:

ACQUISITION 12/31/04
PRINCIPAL ACQUISITION ACQUISITION CARRYING VALUE
AMOUNT ISSUER DATE COST PER UNIT
---------- ------ ----------- ----------- --------------
$ 10,000 Artesyn Technologies,
Sub. Deb. Cv., 5.500%,
08/15/10 .............. 08/15/03 $10,757 $1.7050
100,000 Church & Dwight Co. Inc.,
Deb. Cv., 5.250%,
08/15/33 .............. 08/05/03 100,000 1.3088
50,000 Commonwealth Telephone
Enterprises Inc., Cv.,
3.250%, 07/15/23 ...... 07/29/03 49,638 1.0650
100,000 Fleetwood Enterprises Inc.,
Cv., 5.000%, 12/15/23 . 12/17/03 100,000 1.4313
500,000 GATX Corp., Cv., 7.500%,
02/01/07 .............. 01/28/02 500,000 1.1725
100,000 IVAX Corp., Sub. Deb. Cv.,
4.500%, 05/15/08 ...... 09/21/01 79,000 1.0050
10,000 Wynn Resorts, Sub. Deb. Cv.,
6.000%, 07/15/15 ...... 07/14/03 10,284 3.0625
(c) Bond in default.
(d) At December 31, 2004, the Fund held investments in restricted
securities that were valued under methods approved by the Board as
follows:
12/31/04
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
---------- ------ ----------- ----------- --------------
250,000 GP Strategies Corp.
warrants expire
08/14/08 .............. 08/08/03 $637,065 $2.9613
379,703 National Patent
Development Corp.
warrants expire
08/14/08 .............. 11/24/04 0 0.0587
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
CVO - Contingent Value Obligation.

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.

STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004

ASSETS:
Investments, at value (cost $142,171,480) .... $ 146,233,918
Cash ......................................... 60,354
Dividends and interest receivable ............ 773,185
Unrealized appreciation on swap contracts .... 343,286
Other assets ................................. 7,653
-------------
TOTAL ASSETS ................................. 147,418,396
-------------
LIABILITIES:
Payable for investment advisory fees ......... 82,701
Payable for shareholder communications expense 41,351
Dividends payable ............................ 25,871
Payable for legal and audit fees ............. 22,579
Payable for payroll expenses ................. 16,255
Payable to custodian ......................... 10,845
Payable for shareholder services fees ........ 8,465
Other accrued expenses and liabilities ....... 8,358
-------------
TOTAL LIABILITIES ............................ 216,425
-------------
PREFERRED STOCK:
Series B Cumulative Preferred Stock
(6.00%, $25 liquidation value, $0.001 par
value, 1,000,000 shares
authorized with 990,800 shares issued and
outstanding) ............................... 24,770,000
Series C Cumulative Preferred Stock
(Auction Rate, $25,000 liquidation value,
$0.001 par value, 1,000 shares
authorized with 1,000 shares issued and
outstanding) 25,000,000
-------------
TOTAL PREFERRED STOCK ........................ 49,770,000
-------------
NET ASSETS ATTRIBUTABLE TO
COMMON STOCK SHAREHOLDERS .................. $ 97,431,971
=============
NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS CONSIST OF:
Capital stock, at par value .................. $ 11,717
Additional paid-in capital ................... 94,900,272
Distributions in excess of net
investment income .......................... (207,793)
Accumulated net realized loss on
investments, swap contracts and
foreign currency transactions .............. (1,678,053)
Net unrealized appreciation on investments,
swap contracts and foreign currency
translations ............................... 4,405,828
-------------
TOTAL NET ASSETS ............................. $ 97,431,971
=============

NET ASSET VALUE PER COMMON SHARE:
($97,431,971 / 11,717,040 shares outstanding;
998,000,000 shares authorized of $0.001 par value) $8.32
=====

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004

INVESTMENT INCOME:
Dividends (net of foreign taxes of $16,382) $ 2,520,904
Interest .................................. 3,467,281
-----------
TOTAL INVESTMENT INCOME ................... 5,988,185
-----------
EXPENSES:
Investment advisory fees .................. 1,490,032
Shareholder communications expenses ....... 130,733
Payroll ................................... 106,460
Directors' fees ........................... 68,000
Auction agent fees ........................ 62,400
Legal and audit fees ...................... 59,398
Shareholder services fees ................. 52,833
Custodian fees ............................ 40,981
Miscellaneous expenses .................... 91,989
-----------
TOTAL EXPENSES ............................ 2,102,826
Less: Advisory fee waiver ................. (497,700)
-----------
TOTAL NET EXPENSES ........................ 1,605,126
-----------
NET INVESTMENT INCOME ..................... 4,383,059
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, SWAP CONTRACTS AND
FOREIGN CURRENCY:
Net realized loss on investments .......... (587,953)
Net realized gain on foreign
currency transactions .................... 28,451
Net realized loss on swap contracts ....... (417,507)
-----------
Net realized loss on investments,
swap contracts and foreign
currency transactions .................... (977,009)
Net change in unrealized appreciation/
depreciation on investments, swap
contracts and foreign currency
translations ............................ 615,236
-----------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS, SWAP CONTRACTS AND
FOREIGN CURRENCY ........................ (361,773)
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... 4,021,286

Total Distributions to Preferred
Stock Shareholders ...................... (1,864,559)
-----------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO
COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS ......................... $ 2,156,727
===========

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS

YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2004 2003
------------- -------------

OPERATIONS:
Net investment income ........................................................ $ 4,383,059* $ 3,437,267*
Net realized gain (loss) on investments, swap contracts
and foreign currency transactions .......................................... (977,009)* 1,948,275*
Net change in unrealized appreciation/depreciation
on investments, swap contracts
and foreign currency translations .......................................... 615,236* 11,374,438*
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... 4,021,286 16,759,980
------------- -------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ........................................................ (1,864,559) (1,198,833)
Net realized short term gains on investments and foreign currency transactions -- (21,214)
Net realized long term gains on investments and foreign currency transactions -- (333,018)
------------- -------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS .......................... (1,864,559) (1,553,065)
------------- -------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS
RESULTING FROM OPERATIONS .................................................. 2,156,727 15,206,915
------------- -------------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income ........................................................ (2,086,763) (1,939,172)
Net realized short term gains on investments and foreign currency transactions -- (21,299)
Net realized long term gains on investments and foreign currency transactions -- (319,084)
Return of capital ............................................................ (7,136,741) (6,705,640)
------------- -------------
TOTAL DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS ............................. (9,223,504) (8,985,195)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets from common shares issued upon
reinvestment of dividends and distributions ................................ 2,830,783 2,959,921
Net increase in net assets from repurchase of preferred shares ............... 12,828 --
Offering costs for preferred shares charged to paid-in capital ............... (3,000) (1,297,744)
------------- -------------
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS ...................... 2,840,611 1,662,177
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE
TO COMMON STOCK SHAREHOLDERS ............................................... (4,226,166) 7,883,897
------------- -------------
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS:
Beginning of period .......................................................... 101,658,137 93,774,240
------------- -------------
End of period ................................................................ $ 97,431,971 $ 101,658,137
============= =============

-----------
* As a result of changes in generally accepted accounting principles, the
Fund has reclassified periodic payments made under interest rate swap
agreements, previously included within interest income, as a component of
realized gain (loss) in the statement of operations. The effect of this
reclassification was to increase net investment income and decrease
realized and unrealized gain by $434,726 and $371,093 for the years ended
December 31, 2004 and December 31, 2003, respectively.

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION. The Gabelli Convertible and Income Securities Fund Inc. (the
"Fund") is a closed-end diversified management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), whose
investment objective is to seek a high level of total return through a
combination of current income and capital appreciation by investing in
convertible securities. The Fund was incorporated in Maryland on December 19,
1988 as an open-end diversified management investment company and commenced
investment operations on July 3, 1989 as The Gabelli Convertible Securities
Fund, Inc. The Board of Directors (the "Board"), upon approval at a special
meeting of shareholders held on February 17, 1995, voted to approve the
conversion of the Fund to closed-end status, effective March 31, 1995.

Effective August 1, 2002, the Fund changed its name to The Gabelli
Convertible and Income Securities Fund Inc. The Fund continues to maintain its
investment objective of seeking a high level of total return through a
combination of current income and capital appreciation. Consistent with its new
name, under normal market conditions, the Fund will invest at least 80% of its
net assets in a combination of convertible securities and income producing
securities (the "80% Policy"). The Fund expects to continue its practice of
focusing on convertible securities to the extent attractive opportunities are
available.

The 80% Policy may be changed without shareholder approval. However, the
Fund has adopted a policy to provide shareholders with notice at least 60 days
prior to the implementation of any change in the 80% Policy.

2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements.

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
(the "Adviser").

Portfolio securities primarily traded on foreign markets are generally
valued at the preceding closing values of such securities on their respective
exchanges or if after the close of the foreign markets, but prior to the close
of business on the day the securities are being valued, market conditions change
significantly, certain foreign securities may be fair valued pursuant to
procedures established by the Board. Debt instruments that are not credit
impaired with remaining maturities of 60 days or less are valued at amortized
cost, unless the Board determines such does not reflect the securities' fair
value, in which case these securities will be valued at their fair value 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 latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price. Futures contracts
are valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.

Securities and assets for which market quotations are not readily available
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.

REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the
Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

SWAP AGREEMENTS. The Fund may enter into interest rate swap or cap
transactions. The use of interest rate swaps and caps is a highly specialized
activity that involves investment techniques and risks different from those
associated with ordinary portfolio security transactions. In an interest rate
swap, the Fund would agree to pay to the other party to the interest rate swap
(which is known as the "counterparty") periodically a fixed rate payment in
exchange for the counterparty agreeing to pay to the Fund periodically a
variable rate payment that is intended to approximate the Fund's variable rate
payment obligation on the Series C Preferred Stock. In an interest rate cap, the
Fund would pay a premium to the interest rate cap to the counterparty and, to
the extent that a specified variable rate index exceeds a predetermined fixed
rate, would receive from the counterparty payments of the difference based on
the notional amount of such cap. Interest rate swap and cap transactions
introduce additional risk because the Fund would remain obligated to pay
preferred stock dividends when due in accordance with the Articles Supplementary
even if the counterparty defaulted. Depending on the general state of short term
interest rates and the returns on the Fund's portfolio securities at that point
in time, such a default could negatively affect the Fund's ability to make
dividend payments for the Series C Preferred Stock. In addition, at the time an
interest rate swap or cap transaction reaches its scheduled termination date,
there is a risk that the Fund will not be able to obtain a replacement
transaction or that the terms of the replacement will not be as favorable as on
the expiring transaction. If this occurs, it could have a negative impact on the
Fund's ability to make dividend payments on the Series C Preferred Stock.

The Fund has entered into one interest rate swap agreement with Citibank
N.A. Under the agreement the Fund receives a floating rate of interest and pays
a respective fixed rate of interest on the nominal value of the swap. Details of
the swap at December 31, 2004 are as follows:

NOTIONAL FLOATING RATE* TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE APPRECIATION
----------- ---------- -------------------- ----------- ------------
$25,000,000 3.145% 2.29% April 2, 2008 $343,286

-----------
*Based on Libor (London Interbank Offered Rate).

As a result of a recent FASB Emerging Issues Task Force consensus (and
subsequent related SEC staff guidance), the Fund has reclassified periodic
payments made under interest rate swap agreement, previously included within
interest income, as a component of realized gain (loss) in the statement of
operations. For consistency, similar reclassifications have been made to amounts
appearing in the previous year's statement of changes in net assets and the per
share amounts in prior years financial highlights. Prior years net investment
income ratios in the financial highlights have also been modified accordingly.

This reclassification increased net investment income and decreased net
realized and unrealized gains by $434,726 and $371,093 for the years ended
December 31, 2004 and December 31, 2003, respectively, but had no effect on the
Fund's net asset value, either in total or per share, or its total increase
(decrease) in net assets from operations during any period.

FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose
of hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Such investments will only be made
if they are economically appropriate to the reduction of risks involved in the
management of the Fund's investments. Upon entering into a futures contract, the
Fund is required to deposit with the broker an amount of cash or cash
equivalents equal to a certain percentage of the contract amount. This is known
as the "initial margin." Subsequent payments ("variation margin") are made or
received by the Fund each day, depending on the daily fluctuation of the value
of the contract. The daily changes in the contract are included in unrealized
appreciation/depreciation on investments and futures contracts. The Fund
recognizes a realized gain or loss when the contract is closed. At December 31,
2004, there were no open futures contracts.

There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.

FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund may engage in forward foreign
exchange contracts for hedging a specific transaction with respect to either the
currency in which the transaction is denominated or another currency as deemed
appropriate by the Adviser. Forward foreign exchange contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
included in unrealized appreciation/depreciation on investments and foreign
currency transactions. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.

The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Fund's portfolio securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign exchange contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain/(loss) that
might result should the value of the currency increase. In addition, the Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts. At December 31, 2004, the Fund held no
forward foreign exchange contracts.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign currency translations. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Fund
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.

FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to common
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from that determined under U.S. generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Fund, timing differences and differing characterizations of distributions made
by the Fund. Distributions to shareholders of the Fund's 6.00% Series B
Cumulative Preferred Stock and Series C Auction Rate Cumulative Preferred Stock
("Cumulative Preferred Stock") are accrued on a daily basis and are determined
as described in Note 5.

For the year ended December 31, 2004, reclassifications were made to
decrease accumulated net investment income by $416,684 and to decrease
accumulated net realized loss on investments, swap contracts and foreign
currency transactions by $416,684.

The tax character of distributions paid during the years ended December 31,
2004 and December 31, 2003 was as follows:

YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
------------------------ ------------------------
COMMON PREFERRED COMMON PREFERRED
---------- ---------- ---------- ----------

DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short
term capital gains) ............. $2,086,763 $1,864,559 $1,960,471 $1,220,047
Net long term capital gains ....... -- -- 319,084 333,018
Non-taxable return of capital ..... 7,136,741 -- 6,705,640 --
---------- ---------- ---------- ----------
Total distributions paid .......... $9,223,504 $1,864,559 $8,985,195 $1,553,065
========== ========== ========== ==========

PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended. It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.

As of December 31, 2004, the components of accumulated earnings/(losses) on
a tax basis were as follows:

Net unrealized appreciation ............. $2,727,775
Other ................................... (207,793)
----------
Total accumulated gain .................. $2,519,982
==========

Other is primarily due to dividends payable and defaulted interest.

Differences between amounts reported on a tax basis and those reported on a
book basis are primarily due to timing of recognition of capital gains on
investments held by the Fund.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Fund has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Fund will pay the Adviser a fee, computed daily and paid
monthly, equal on an annual basis to 1.00% of the value of the Fund's average
weekly net assets plus liquidation value of preferred stock. In accordance with
the Advisory Agreement, the Adviser provides a continuous investment program for
the Fund's portfolio and oversees the administration of all aspects of the
Fund's business and affairs. The Adviser has agreed to waive the management fee
on the incremental assets attributable to the Cumulative Preferred Stock if the
total return of the net asset value of the common shares of the Fund, including
distributions and advisory fee subject to reduction, does not exceed the stated
dividend rate or corresponding swap rate of the Cumulative Preferred Stock for
the year.

The Fund's total return on the net asset value of the common shares is
monitored on a monthly basis to assess whether the total return on the net asset
value of the common shares exceeds the stated dividend rate of the Cumulative
Preferred Stock for the period. For the year ended December 31, 2004, the Fund's
total return on the net asset value of the common shares did not exceed the
stated dividend rates and net swap expense of all outstanding preferred stock.
Thus, management fees were waived in the amount of $497,700 with respect to the
liquidation value of the preferred stock assets.

During the year ended December 31, 2004, Gabelli & Company, Inc. ("Gabelli
& Company"), an affiliate of the Adviser, received $93,655 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Fund.

The cost of calculating the Fund's net asset value per share is a Fund
expense pursuant to the Advisory Agreement. During the year ended December 31,
2004, the Fund reimbursed the Adviser $34,800 in connection with the cost of
computing the Fund's net asset value which is included in miscellaneous expenses
in the Statement of Operations.

The Fund is assuming its portion of the allocated cost of the Gabelli
Funds' Chief Compliance Officer in the amount of $1,214 for the period of
October 1, 2004 through December 31, 2004, which is included in payroll expense
in the Statement of Operations.

4. PORTFOLIO SECURITIES. Costs of purchases and proceeds from sales of
securities, other than short term securities, for the year ended December 31,
2004 aggregated $71,128,337 and $55,863,007, respectively.

5. CAPITAL. The charter permits the Fund to issue one billion shares of capital
stock (par value $0.001).

Transactions in common stock were as follows:

YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------------- ------------------------
Shares Amount Shares Amount
--------- ----------- --------- ---------

Shares issued upon reinvestment
of dividends and distributions ...... 295,393 $2,830,783 308,216 $2,959,921
------- ---------- ------- ----------
Net increase ........................... 295,393 $2,830,783 308,216 $2,959,921
======= ========== ======= ==========

The Adviser has been authorized to repurchase on behalf of the Fund up to
500,000 shares of Common Stock of the Fund in the open market, whenever the
shares are trading at a discount of 10% or more from the net asset value of the
shares. For the year ended December 31, 2004, the Fund did not repurchase any
shares of Common Stock. All shares of Common Stock repurchased have been
retired.

In addition, the Fund has been authorized to issue up to 1,200,000 shares
of Preferred Stock, which were originally designated as $0.001 par value 8%
Cumulative Preferred Stock. Currently, outstanding Preferred Stock consists of
6% Series B and Series C Auction Rate Cumulative Preferred Stock. Dividends on
shares of the Cumulative Preferred Stock are cumulative. The Fund is required to
meet certain asset coverage tests with respect to the Cumulative Preferred Stock
as required by the 1940 Act and by the Articles Supplementary. If the Fund fails
to meet these requirements and does not correct such failure, the Fund may be
required to redeem, in part or in full, the 6% Series B and Series C Auction
Rate Cumulative Preferred Stock at a redemption price of $25.00 and $25,000,
respectively, per share plus an amount equal to the accumulated and unpaid
dividends whether or not declared on such shares in order to meet these
requirements. Additionally, failure to meet the foregoing asset coverage
requirement could restrict the Fund's ability to pay dividends to Common
Shareholders and could lead to sales of portfolio securities at inopportune
times. The 8% Cumulative Preferred Stock was callable at the redemption price at
the option of the Fund after May 15, 2002. This Cumulative Preferred Stock
introduced leverage into the capital structure of the Fund. This leverage tends
to magnify both the risks and opportunities to Common Shareholders. On November
12, 2002, the Fund redeemed 50% (600,000 shares) of its outstanding 8%
Cumulative Preferred Stock at the redemption price of $25.00 per Preferred Share
plus accumulated and unpaid dividends through the redemption date of $0.2555 per
Preferred Share. On February 11, 2003, the Fund redeemed the remaining 50%
(600,000 shares) of its outstanding 8.00% Cumulative Preferred Stock at the
redemption price of $25.25 per Preferred Share, which consisted of $25.00 per
Preferred Share plus accumulated and unpaid dividends through the redemption
date of $0.25 per Preferred Share.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

On March 18, 2003, the Fund received net proceeds of $23,996,775 (after
underwriting discounts of $787,500 and offering expenses of $215,725) from the
public offering of 1,000,000 shares of 6.00% Series B Cumulative Preferred
Stock. Commencing March 19, 2008 and thereafter, the Fund, at its option, may
redeem the 6.00% Series B Cumulative Preferred Stock in whole or in part at the
redemption price. The Board has authorized the repurchase in the open market at
prices less than the $25 liquidation value of the Cumulative Preferred Stock.
During the year ended December 31, 2004, the Fund purchased 9,200 shares of 6%
Series B Cumulative Preferred Stock in the open market at a cost of $217,172 and
an average discount of approximately 5.55% from its liquidation value. All
repurchased shares of 6% Series B Cumulative Preferred Stock have been retired.
At December 31, 2004, 990,800 shares of the 6% Series B Cumulative Preferred
Stock were outstanding and accrued dividends amounted to $20,642.

On March 18, 2003, the Fund received net proceeds of $24,534,275 (after
underwriting discounts of $250,000 and offering expenses of $215,725) from the
public offering of 1,000 shares of Series C Auction Rate Cumulative Preferred
Stock. The dividend rate, as set by the auction process, which is generally held
every 7 days, is expected to vary with short-term interest rates. The rates of
Series C Auction Rate Cumulative Preferred Stock ranged from 1.02% to 2.51% for
the year ended December 31, 2004. Existing shareholders may submit an order to
hold, bid or sell such shares on each auction date. Series C Auction Rate
Cumulative Preferred Stock shareholders may also trade shares in the secondary
market. The Fund, at its option, may redeem the Series C Auction Rate Cumulative
Preferred Stock in whole or in part at the redemption price at any time. During
the year ended December 31, 2004, the Fund did not repurchase any shares of
Series C Auction Rate Cumulative Preferred Stock. At December 31, 2004, 1,000
shares of the Series C Auction Rate Cumulative Preferred Stock were outstanding
at the annual dividend rate of 2.51% and accrued dividends amounted to $5,229.

The holders of Cumulative Preferred Stock have voting rights equivalent to
those of the holders of Common Stock (one vote per share) and will vote together
with holders of shares of Common Stock as a single class. In addition, the 1940
Act requires that along with approval of a majority of the holders of Common
Stock, approval of a majority of the holders of any outstanding shares of
Cumulative Preferred Stock, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the Cumulative
Preferred Stock, and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Fund's subclassification as a
closed-end investment company or changes in its fundamental investment
restrictions. The income received on the Fund's assets may vary in a manner
unrelated to the fixed rate, which could have either a beneficial or detrimental
impact on net investment income and gains available to common shareholders.

Under Emerging Issues Task Force (EITF) promulgating Topic D-98,
Classification and Measurement of Redeemable Securities, which was issued on
July 19, 2001, preferred securities that are redeemable for cash or other assets
are to be classified outside of permanent equity to the extent that the
redemption is at a fixed or determinable price and at the option of the holder
or upon the occurrence of an event that is not solely within the control of the
issuer. In accordance with the guidance of the EITF, the Fund's Cumulative
Preferred Stock is classified outside of permanent equity (net assets
attributable to common stock shareholders) in the accompanying financial
statements.

6. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State ofNew York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests. The Fund does not
believe that these matters will have a material adverse effect on the Fund's
financial position or the results of its operations.

7. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications.The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
FINANCIAL HIGHLIGHTS

SELECTED DATA FOR A FUND COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD:

YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
2004(D)(E) 2003(D)(E) 2002 2001 2000
---------- ---------- -------- -------- -------

OPERATING PERFORMANCE:
Net asset value, beginning of period ................... $ 8.90 $ 8.44 $ 9.92 $ 10.02 $ 11.40
-------- -------- -------- -------- --------
Net investment income .................................. 0.34 0.31 0.49 0.68 0.72
Net realized and unrealized gain (loss) on investments . 0.01 1.19 (0.76) 0.32 (0.52)
-------- -------- -------- -------- --------
Total from investment operations ....................... 0.35 1.50 (0.27) 1.00 0.20
-------- -------- -------- -------- --------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income .................................. (0.16) (0.11) (0.28) (0.18) (0.13)
Net realized gain on investments ....................... -- (0.03) -- (0.12) (0.17)
-------- -------- -------- -------- --------
Total distributions to preferred stock shareholders .... (0.16) (0.14) (0.28) (0.30) (0.30)
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO
COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS ........................................ 0.19 1.36 (0.55) 0.70 (0.10)
-------- -------- -------- -------- --------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income .................................. (0.18) (0.17) (0.27) (0.48) (0.57)
Net realized gain on investments ....................... -- (0.03) -- (0.33) (0.73)
Paid-in capital ........................................ (0.62) (0.60) (0.48) -- --
-------- -------- -------- -------- --------
Total distributions to common stock shareholders ....... (0.80) (0.80) (0.75) (0.81) (1.30)
-------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Increase in net asset value from common
share transactions ................................... 0.03 0.02 0.02 0.01 0.02
Decrease in net asset value from shares
issued in rights offering ............................ -- -- (0.20) -- --
Increase in net asset value from repurchase
of preferred shares .................................. 0.00(a) -- -- -- --
Offering costs for preferred shares
charged to paid-in capital ........................... 0.00(a) (0.12) -- -- --
-------- -------- -------- -------- --------
Total capital share transactions ....................... 0.03 (0.10) (0.18) 0.01 0.02
-------- -------- -------- -------- --------
NET ASSET VALUE ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS, END OF PERIOD .......................... $ 8.32 $ 8.90 $ 8.44 $ 9.92 $ 10.02
======== ======== ======== ======== ========
Net asset value total return + ......................... 1.5% 14.5% (7.0)% 7.0% 0.0%(a)
======== ======== ======== ======== ========
Market value, end of period ............................ $ 9.24 $ 10.54 $ 8.55 $ 10.90 $ 9.13
======== ======== ======== ======== ========
Total investment return ++ ............................. (4.8)% 33.9% (14.2)% 29.1% (1.7)%
======== ======== ======== ======== ========
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation
value of preferred shares,
end of period (in 000's) ............................. $147,202 $151,658 $108,774 $110,074 $108,066
Net assets attributable to common
shares, end of period (in 000's) ..................... $ 97,432 $101,658 $ 93,774 $ 80,074 $ 78,066
Ratio of net investment income to
average net assets attributable
to common stock ...................................... 4.41% 3.47% 5.32% 6.58% 6.49%
Ratio of operating expenses to average
net assets attributable
to common stock before fees waived ................... 2.12% 1.93% 1.77% 1.83% 1.82%
Ratio of operating expenses to average
net assets attributable
to common stock net of fees waived ................... 1.61% 1.93% 1.58% 1.46% 1.48%
Ratio of operating expenses to average
total net assets including
liquidation value of preferred
shares before fees waived ............................ 1.41% 1.37% 1.30% 1.34% 1.35%
Ratio of operating expenses to average
total net assets including
liquidation value of preferred
shares net of fees waived ............................ 1.07% 1.37% 1.15% 1.07% 1.10%
Portfolio turnover rate ................................ 57% 39% 56% 59% 169%

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
FINANCIAL HIGHLIGHTS (CONTINUED)

YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
2004(D)(E) 2003(D)(E) 2002 2001 2000
---------- ---------- -------- -------- -------

PREFERRED STOCK:
8.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... -- -- $15,000 $30,000 $30,000
Total shares outstanding (in 000's) ................... -- -- 600 1,200 1,200
Liquidation preference per share ...................... -- -- $25.00 $25.00 $25.00
Average market value (b) .............................. -- -- $25.83 $25.80 $24.31
Asset coverage per share .............................. -- -- $181.29 $91.73 $90.06
6.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... $24,770 $25,000 -- -- --
Total shares outstanding (in 000's) ................... 991 1,000 -- -- --
Liquidation preference per share ...................... $25.00 $25.00 -- -- --
Average market value (b) .............................. $24.90 $25.33 -- -- --
Asset coverage per share .............................. $73.93 $75.83 -- -- --
AUCTION RATE CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... $25,000 $25,000 -- -- --
Total shares outstanding (in 000's) ................... 1 1 -- -- --
Liquidation preference per share ...................... $25,000 $25,000 -- -- --
Average market value (b) .............................. $25,000 $25,000 -- -- --
Asset coverage per share .............................. $73,941 $75,829 -- -- --
ASSET COVERAGE (c) .................................... 296% 303% 725% 367% 360%

-------------------
+ Based on net asset value per share, adjusted for reinvestment of
distributions. Total return for the period of less than one year is not
annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions. Total return for the period of less than one year is not
annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.
(c) Asset coverage is calculated by combining all series of preferred stock.
(d) See Note 2 to Financial Statements (Swap Agreements).
(e) As a result of changes in accounting principles, the Fund has
reclassified periodic payments made under interest rate swap agreements,
previously included within net investment income, to components of
realized and unrealized gain (loss) in the Statement of Operations. The
effect of this reclassification for the years ended December 31, 2004
and December 31, 2003 was net investment income per share increased by
$0.04 and $0.03, respectively, the ratio of net investment income to
average net assets attributable to common shares increased by 0.44% and
0.38%, respectively, the ratio of operating expenses to average net
assets attributable to common shares decreased by 0.44% and 0.38%,
respectively, and the ratio of operating expenses to average total net
assets including liquidation value of preferred shares decreased by
0.30% and 0.26%, respectively.

See accompanying notes to financial statements.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of The Gabelli Convertible and Income
Securities Fund Inc.:

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Convertible and Income
Securities Fund Inc. (the "Fund") at December 31, 2004, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.

PricewaterhouseCoopers LLP
New York, New York
February 28, 2005

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
ADDITIONAL FUND INFORMATION (UNAUDITED)

The business and affairs of the Fund are managed under the direction of
the Fund's Board of Directors. Information pertaining to the Directors and
officers of the Fund is set forth below. The Fund's Statement of Additional
Information includes additional information about The Gabelli Convertible and
Income Securities Fund Inc. Directors and is available, without charge, upon
request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli
Convertible and Income Securities Fund Inc. at One Corporate Center, Rye, NY
10580-1422.

TERM OF NUMBER OF
OFFICE AND FUNDS IN FUND
NAME, POSITION(S) LENGTH OF COMPLEX
ADDRESS 1 TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE SERVED 2 DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR 5
----------------- --------- ------------- ---------------------- -------------------

INTERESTED DIRECTORS 3:
----------------------
MARIO J. GABELLI Since 1989** 24 Chairman of the Board and Chief Executive Director of Morgan
Director and Officer of Gabelli Asset Management Inc. Group Holdings,
Chief Investment Officer and Chief Investment Officer of Gabelli Inc. (holding
Age: 62 Funds, LLC and GAMCO Investors, Inc. company)
Vice Chairman and Chief Executive
Officer of Lynch Interactive Corporation
(multimedia and services)

KARL OTTO POHL Since 1992** 34 Member of the Shareholder Committee of Director of
Director Sal Oppenheim Jr. & Cie (private invest- Gabelli Asset
Age: 75 ment bank); Former President of the Management Inc.
Deutsche Bundesbank and Chairman of its (investment
Central Bank Council (1980-1991) management);
Chairman, Incentive
Capital and
Incentive Asset
Management (Zurich);
Director at Sal
Oppenheim, Jr.
& Cie, Zurich

NON-INTERESTED DIRECTORS:
------------------------
E. VAL CERUTTI Since 1989* 7 Chief Executive Officer of Cerutti Director of Lynch
Director Consultants, Inc.; Former President Corporation
Age: 65 and Chief Operating Officer of (diversified
Stella D'oro Biscuit Company manufacturing)
(through 1992); Adviser, Iona College
School of Business

ANTHONY J. COLAVITA 4 Since 1989*** 36 President and Attorney at Law in the law --
Director firm of Anthony J. Colavita, P.C.
Age: 69

DUGALD A. FLETCHER Since 1989* 2 President, Fletcher & Company, Inc.; Director of
Director Former Director and Chairman and Harris and Harris
Age: 75 Chief Executive Officer of Binnings Group, Inc.
Building Products, Inc. (1997) (venture capital)

ANTHONY R. PUSTORINO Since 1989* 17 Certified Public Accountant; Professor Director of Lynch
Director Emeritus, Pace University Corporation
Age: 79 (diversified
manufacturing)

WERNER J. ROEDER, MD 4 Since 2001** 26 Medical Director of Lawrence --
Director Hospital and practicing private
Age: 64 physician

ANTHONIE C. VAN EKRIS Since 1992*** 20 Managing Director of BALMAC Director of
Director International, Inc. (commodities) Aurado Energy
Inc. (oil & gas operations)
Age: 70

SALVATORE J. ZIZZA Since 1991*** 24 Chairman, Hallmark Electrical Supplies Director of
Director Corp. Hollis Eden
Age: 59 Pharmaceuticals and
Earl Scheib, Inc.
(automotive services)

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
ADDITIONAL FUND INFORMATION (UNAUDITED) (CONTINUED)

OFFICERS:
--------
BRUCE N. ALPERT Since 2003 -- Executive Vice President and Chief Operating Officer --
President and Treasurer of Gabelli Funds, LLC since 1988 and an officer of
Age: 53 all mutual funds advised by Gabelli Funds, LLC
and its affiliates. Director and President of
Gabelli Advisers, Inc.

LAURISSA M. MARTIRE Since 2004 -- Vice President of The Gabelli Convertible and Income --
Vice President Securities Fund Inc. since 2004. Assistant Vice President
Age: 28 of Gabelli Asset Management Company since 2003.
Prior to 2003, Sales Assistant for Gabelli Asset
Management Company.

JAMES E. MCKEE Since 1995 -- Vice President, General Counsel and Secretary of Gabelli --
Secretary Asset Management Inc. since 1999 and GAMCO
Age: 41 Investors, Inc. since 1993; Secretary of all mutual
funds advised by Gabelli Advisers, Inc. and
Gabelli Funds, LLC.

PETER D. GOLDSTEIN Since 2004 -- Director of Regulatory Affairs at Gabelli Asset Management --
Chief Compliance Officer Inc. since February 2004; Vice President of Goldman Sachs
Age: 51 Asset Management from November 2000 through January
2004; Deputy GeneralCounsel at Gabelli Asset Management
Inc. from February 1998 through November 2000

--------------
1 Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2 The Fund's Board of Directors is divided into three classes, each class
having a term of three years. Each year the term of office of one class
expires and the successor or successors elected to such class serve for a
three year term. The three year term for each class expires as follows:
* - Term expires at the Fund's 2006 Annual Meeting of Shareholders and until
their successors are duly elected and qualified.
** - Term expires at the Fund's 2007 Annual Meeting of Shareholders and until
their successors are duly elected and qualified.
*** - Term expires at the Fund's 2005 Annual Meeting of Shareholders and until
their successors are duly elected and qualified.
Each officer will hold office for an indefinite term until the date he or
she resigns or retires or until his or her successor is elected and
qualified.
3 "Interested person" of the Fund as defined in the Investment Company Act of
1940. Messrs. Gabelli and Pohl are each considered an "interested person"
because of their affiliation with Gabelli Funds, LLC which acts as the
Fund's investment adviser.
4 Represents holders of the Fund's Preferred Stock.
5 This column includes only directorships of companies required to report to
the SEC under the Securities and Exchange Act of 1934 (i.e. public
companies) or other investment companies registered under the 1940 Act.

CERTIFICATIONS

The Fund's Chief Executive Officer has certified to the New York Stock
Exchange that, as of June 7, 2004, he was not aware of any violation by the Fund
of applicable NYSE corporate governance listing standards. The Fund reports to
the Securities and Exchange Commission on Form N-CSR which contains
certifications by the Fund's principal executive officer and principal financial
officer that relate to the Fund's disclosure in such reports and that are
required by Rule 30a-2(a) under the Investment Company Act.

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
INCOME TAX INFORMATION (UNAUDITED)
DECEMBER 31, 2004

CASH DIVIDENDS AND DISTRIBUTIONS
TOTAL AMOUNT ORDINARY DIVIDEND
PAYABLE RECORD PAID INVESTMENT RETURN OF REINVESTMENT
DATE DATE PER SHARE (A) INCOME (A) CAPITAL (C) PRICE
------- ------ ------------ ---------- ----------- -----------

COMMON SHARES
03/25/04 03/17/04 $0.2000 $0.0470 $0.1530 $8.720
06/24/04 06/16/04 0.2000 0.0470 0.1530 8.510
09/24/04 09/16/04 0.2000 0.0470 0.1530 8.220
12/27/04 12/16/04 0.2000 0.0470 0.1530 8.280
------- ------- ------- ------
Total Common Stock $0.8000 $0.1880 $0.6120

6.00% PREFERRED SHARES
03/26/04 03/19/04 $0.3750 $0.3750
06/28/04 06/21/04 0.3750 0.3750
09/27/04 09/20/04 0.3750 0.3750
12/27/04 12/17/04 0.3750 0.3750
------- -------
Total Preferred Stock $1.5000 $1.5000

AUCTION RATE PREFERRED SHARES
Auction Rate Preferred Shares pay dividends weekly based on a rate set at
auction, usually held every seven days.

A Form 1099-DIV has been mailed to all shareholders of record for the
distributions mentioned above, setting forth specific amounts to be included in
your 2004 tax returns. Ordinary income distributions include net investment
income and realized net short-term capital gains.

RETURN OF CAPITAL

The amount received as a non-taxable (return of capital) distribution should
be applied to reduce the tax cost of shares. There was a $0.6120 per share
return of capital in 2004 on common shares.

CORPORATE DIVIDENDS RECEIVED DEDUCTION, QUALIFIED DIVIDEND INCOME AND U.S.
TREASURY SECURITIES INCOME

The Fund paid to common shareholders an ordinary income dividend of $0.1880
per share in 2004. The Fund paid to 6.00% Series B preferred shareholders an
ordinary income dividend totalling $1.5000 per share in 2004. The Fund paid
weekly distributions to Series C AuctionRate Preferred shareholders at varying
rates throughout the year. For the fiscal year ended December 31, 2004, 60.03%
of the ordinary dividend qualifies for the dividend received deduction available
to corporations, and 52.31% of the ordinary income distribution was qualifying
dividend income. The percentage of ordinary income dividends paid by the Fund
during 2004 derived from U.S. Treasury Securities was 10.07%. The percentage of
U.S. Treasury Securities held as of December 31, 2004 was 33.23%. However, it
should be noted that the Convertible andIncome Securities Fund did not hold more
than 50% of its assets in U.S. Treasury Securities at the end of each calendar
quarter during 2004.

HISTORICAL DISTRIBUTION SUMMARY

SHORT-TERM LONG-TERM ADJUSTMENT
INVESTMENT CAPITAL CAPITAL RETURN OF TOTAL TO
INCOME (B) GAINS (B) GAINS CAPITAL (C) DISTRIBUTIONS (A) COST BASIS (D)
COMMON STOCK ----------- ----------- --------- ----------- ----------------- --------------

2004 ............................. $ 0.18800 -- -- $0.61200 $ 0.80000 $0.61200
2003 ............................. 0.18800 -- $0.05160 0.56040 0.80000 0.56040
2002 ............................. 0.27170 -- -- 0.47830 0.75000 0.47830
2001 ............................. 0.47550 $0.06950 0.26500 -- 0.81000 --
2000 ............................. 0.56610 0.32670 0.40720 -- 1.30000 --
1999 ............................. 0.38990 0.44590 0.19420 -- 1.03000 --
1998 ............................. 0.38660 0.24130 0.29210 -- 0.92000 --
1997 ............................. 0.39690 0.22850 0.33460 -- 0.96000 --
1996 ............................. 0.49000 0.14160 0.10340 -- 0.73500 --
1995 ............................. 0.55740 0.20410 0.35950 0.02900 1.15000 0.02900
1994 ............................. 0.57300 0.11500 0.21200 -- 0.90000 --
1993 ............................. 0.56100 0.20000 0.66400 -- 1.42500 --
1992 ............................. 0.65400 0.09000 0.13200 -- 0.87600 --
1991 ............................. 0.70600 0.11200 0.04700 -- 0.86500 --
1990 ............................. 0.69000 -- -- -- 0.69000 --
1989 ............................. 0.11500 -- -- -- 0.11500 --

6% PREFERRED STOCK
2004 ............................. $ 1.50000 -- -- -- $ 1.50000 --
2003 ............................. 0.90900 -- 0.24930 -- 1.15830 --

AUCTION RATE PREFERRED SHARES
2004 ............................. $375.08000 -- -- -- $375.08000 --
2003 ............................. 187.32000 -- 51.34000 -- 238.66000 --

-----------------
(a) Total amounts may differ due to rounding.
(b) Taxable as ordinary income for Federal tax purposes.
(c) Non-taxable.
(d) Decrease in cost basis.

AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLAN

ENROLLMENT IN THE PLAN

It is the policy of The Gabelli Convertible and Income Securities Fund Inc.
("Convertible and Income Securities Fund") to automatically reinvest dividends.
As a "registered" shareholder you automatically become a participant in the
Convertible andIncome Securities Fund's Automatic Dividend Reinvestment Plan
(the "Plan"). The Plan authorizes the Convertible andIncome Securities Fund to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Convertible and Income Securities Fund. Plan
participants may send their stock certificates to EquiServe Trust Company
("EquiServe") to be held in their dividend reinvestment account. Registered
shareholders wishing to receive their distribution in cash must submit this
request in writing to:

The Gabelli Convertible and Income Securities Fund Inc.
c/o EquiServe
P.O. Box 43011
Providence, RI 02940-3011

Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan or requesting a copy of the terms of the
Plan may contact EquiServe at (800) 336-6983.

SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe must do
so in writing or by telephone. Please submit your request to the above mentioned
address or telephone number. Include in your request your name, address and
account number. The cost to liquidate shares is $2.50 per transaction as well as
the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions. If your shares are held
in the name of a broker, bank or nominee, you should contact such institution.

If such institution is not participating in the Plan, your account will be
credited with a cash dividend. In order to participate in the Plan through such
institution, it may be necessary for you to have your shares taken out of
"street name" and re-registered in your own name. Once registered in your own
name your dividends will be automatically reinvested. Certain brokers
participate in the Plan. Shareholders holding shares in "street name" at
participating institutions will have dividends automatically reinvested.
Shareholders wishing a cash dividend at such institution must contact their
broker to make this change.

The number of shares of Common Stock distributed to participants in the Plan
in lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Convertible andIncome Securities Fund's Common
Stock is equal to or exceeds net asset value at the time shares are valued for
purposes of determining the number of shares equivalent to the cash dividends or
capital gains distribution, participants are issued shares of Common Stock
valued at the greater of (i) the net asset value as most recently determined or
(ii) 95% of the then current market price of the Convertible and Income
Securities Fund's Common Stock. The valuation date is the dividend or
distribution payment date or, if that date is not a New York Stock Exchange
trading day, the next trading day. If the net asset value of the Common Stock at
the time of valuation exceeds the market price of the Common Stock, participants
will receive shares from the Convertible and Income Securities Fund valued at
market price. If the Convertible and Income Securities Fund should declare a
dividend or capital gains distribution payable only in cash, EquiServe will buy
Common Stock in the open market, or on the New York Stock Exchange or elsewhere,
for the participants' accounts, except that EquiServe will endeavor to terminate
purchases in the open market and cause the Convertible and Income Securities
Fund to issue shares at net asset value if, following the commencement of such
purchases, the market value of the Common Stock exceeds the then current net
asset value.

The automatic reinvestment of dividends and capital gains distributions will
not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.

The Convertible and Income Securities Fund reserves the right to amend or
terminate the Plan as applied to any voluntary cash payments made and any
dividend or distribution paid subsequent to written notice of the change sent to
the members of the Plan at least 90 days before the record date for such
dividend or distribution. The Plan also may be amended or terminated by State
Street on at least 90 days' written notice to participants in the Plan.

VOLUNTARY CASH PURCHASE PLAN

The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Convertible and Income Securities Fund. In
order to participate in the Voluntary Cash Purchase Plan, shareholders must have
their shares registered in their own name.

Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to EquiServe for investments in the Convertible
andIncome Securities Fund shares at the then current market price. Shareholders
may send an amount from $250 to $10,000. EquiServe will use these funds to
purchase shares in the open market on or about the 1st and 15th of each month.
EquiServe will charge each shareholder who participates $0.75, plus a pro rata
share of the brokerage commissions. Brokerage charges for such purchases are
expected to be less than the usual brokerage charge for such transactions. It is
suggested that any voluntary cash payments be sent to EquiServe, P.O. Box 43011,
Providence, RI 02940-3011 such that EquiServe receives such payments
approximately 10 days before the investment date. Funds not received at least
five days before the investment date shall be held for investment until the next
purchase date. A payment may be withdrawn without charge if notice is received
by EquiServe at least 48 hours before such payment is to be invested.

For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Convertible and Income Securities Fund.

--------------------------------------------------------------------------------
The Annual Meeting of The Gabelli Convertible and Income Securities Fund
Inc.'s stockholders will be held at 8:30 A.M. on Monday, May 9, 2005, in
Greenwich, Connecticut.
--------------------------------------------------------------------------------

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 INVESTMENT OFFICER,
GABELLI ASSET MANAGEMENT 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.

Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK

Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR EMERITUS, PACE UNIVERSITY

Werner J. Roeder, MD
MEDICAL DIRECTOR,
LAWRENCE HOSPITAL

Anthonie C. van Ekris
MANAGING DIRECTOR,
BALMAC INTERNATIONAL, INC.

Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.

OFFICERS
Bruce N. Alpert
PRESIDENT &TREASURER

Laurissa M. Martire
VICE PRESIDENT AND OMBUDSMAN

James E. McKee
SECRETARY

A. Hartswell Woodson, III
ASSOCIATE PORTFOLIO MANAGER

Peter D. Goldstein
CHIEF COMPLIANCE OFFICER

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
EquiServe Trust Company

STOCK EXCHANGE LISTING
Common 6.00% Preferred
------ ---------------
NYSE-Symbol: GCV GCV Pr B
Shares Outstanding: 11,717,040 990,800

The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Convertible Securities Funds," in Sunday's The New York Times and 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 may be obtained each day by calling (914) 921-5071.

--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Convertible and Income Securities
Fund may from time to time purchase shares of its common stock in the open
market when the Convertible and Income Securities Fund shares are trading at a
discount of 10% or more from the net asset value of the shares. The
Convertible and Income Securities Fund may also, from time to time, purchase
shares of its 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

PHONE: 800-GABELLI (800-422-3554)

FAX: 914-921-5118 INTERNET: WWW.GABELLI.COM

E-MAIL: CLOSEDEND@GABELLI.COM

GBFCS-AR-12/04

ITEM 2. CODE OF ETHICS.

(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.

(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, and that relates to any element of
the code of ethics description.

(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

As of the end of the period covered by the report, the registrant's Board of
Directors has determined that Anthony R. Pustorino is qualified to serve as an
audit committee financial expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees
----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services that
are normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years are
$34,015 in 2004 and $61,816 in 2003.

Audit-Related Fees
------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant's
financial statements and are not reported under paragraph (a) of this
Item are $7,700 in 2004 and $3,500 in 2003.

Audit-related fees represent services provided in the preparation of
Preferred Shares Reports.

Tax Fees
--------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $2,550 in 2004 and $2,450
in 2003.

Tax fees represent tax compliance services provided in connection with
the review of the Registrant's tax returns.

All Other Fees
--------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
for 2004 and $0 for 2003.

(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of
Regulation S-X.

Pre-Approval Policies and Procedures. The Audit Committee
("Committee") of the registrant is responsible for pre-approving
(i) all audit and permissible non-audit services to be provided by
the independent auditors to the registrant and (ii) all
permissible non-audit services to be provided by the independent
auditors to the Adviser, Gabelli Funds, LLC, and any affiliate of
Gabelli Funds, LLC ("Gabelli") that provides services to the
registrant (a "Covered Services Provider") if the independent
auditors' engagement related directly to the operations and
financial reporting of the registrant. The Committee may delegate
its responsibility to pre-approve any such audit and permissible
non-audit services to the Chairperson of the Committee, and the
Chairperson must report to the Committee, at its next regularly
scheduled meeting after the Chairperson's pre-approval of such
services, his or her decision(s). The Committee may also establish
detailed pre-approval policies and procedures for pre-approval of
such services in accordance with applicable laws, including the
delegation of some or all of the Committee's pre-approval
responsibilities to the other persons (other than Gabelli or the
registrant's officers). Pre-approval by the Committee of any
permissible non-audit services is not required so long as: (i) the
aggregate amount of all such permissible non-audit services
provided to the registrant, Gabelli and any Covered Services
Provider constitutes not more than 5% of the total amount of
revenues paid by the registrant to its independent auditors during
the fiscal year in which the permissible non-audit services are
provided; (ii) the permissible non-audit services were not
recognized by the registrant at the time of the engagement to be
non-audit services; and (iii) such services are promptly brought
to the attention of the Committee and approved by the Committee or
Chairperson prior to the completion of the audit.

(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
are as follows:

(b) 100%

(d) N/A

(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was zero percent (0%).

(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $0 in 2004 and $0 in 2003.

(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant has a separately designated audit committee consisting of the
following members: Anthony J. Colavita, Anthony R. Pustorino and Salvatore J.
Zizza.

ITEM 6. SCHEDULE OF INVESTMENTS

Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

The Proxy Voting Policies are attached herewith.

GABELLI ASSET MANAGEMENT INC. AND AFFILIATES

------------------------------------------------------------------------------

THE VOTING OF PROXIES ON BEHALF OF CLIENTS
------------------------------------------------------------------------------

Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and
Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers
to adopt written policies and procedures governing the voting of proxies on
behalf of their clients.

These procedures will be used by GAMCO Investors, Inc., Gabelli Funds,
LLC and Gabelli Advisers, Inc. (collectively, the "Advisers") to determine how
to vote proxies relating to portfolio securities held by their clients,
including the procedures that the Advisers use when a vote presents a conflict
between the interests of the shareholders of an investment company managed by
one of the Advisers, on the one hand, and those of the Advisers; the principal
underwriter; or any affiliated person of the investment company, the Advisers,
or the principal underwriter. These procedures will not apply where the Advisers
do not have voting discretion or where the Advisers have agreed with a client to
vote the client's proxies in accordance with specific guidelines or procedures
supplied by the client (to the extent permitted by ERISA).

I. PROXY VOTING COMMITTEE

The Proxy Voting Committee was originally formed in April 1989 for the
purpose of formulating guidelines and reviewing proxy statements within the
parameters set by the substantive proxy voting guidelines originally published
by GAMCO Investors, Inc. in 1988 and updated periodically, a copy of which are
appended as Exhibit A. The Committee will include representatives of Research,
Administration, Legal, and the Advisers. Additional or replacement members of
the Committee will be nominated by the Chairman and voted upon by the entire
Committee. As of December 31, 2004, the members are:

Bruce N. Alpert, Chief Operating Officer of Gabelli Funds, LLC

Ivan Arteaga, Portfolio Manager

Caesar M. P. Bryan, Portfolio Manager

Stephen DeTore, Deputy General Counsel

Joshua Fenton, Director of Buy-Side Research

Douglas R. Jamieson, Chief Operating Officer of GAMCO

James E. McKee, General Counsel

Karyn-Marie Prylucki, Director of Proxy Voting Services

William S. Selby, Managing Director of GAMCO

Howard F. Ward, Portfolio Manager

Peter D. Zaglio, Senior Vice President

Peter D. Zaglio currently chairs the Committee. In his absence, the
Director of Research will chair the Committee. Meetings are held on an as needed
basis to form views on the manner in which the Advisers should vote proxies on
behalf of their clients.

In general, the Director of Proxy Voting Services, using the Proxy
Guidelines, recommendations of Institutional Shareholder Corporate Governance
Service ("ISS"), other third-party services and the analysts of Gabelli &
Company, Inc., will determine how to vote on each issue. For non-controversial
matters, the Director of Proxy Voting Services may vote the proxy if the vote is
(1) consistent with the recommendations of the issuer's Board of Directors and
not contrary to the Proxy Guidelines; (2) consistent with the recommendations of
the issuer's Board of Directors and is a non-controversial issue not covered by
the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the
Board of Directors but is consistent with the Proxy Guidelines. In those
instances, the Director of Proxy Voting Services or the Chairman of the
Committee may sign and date the proxy statement indicating how each issue will
be voted.

All matters identified by the Chairman of the Committee, the Director
of Proxy Voting Services or the Legal Department as controversial, taking into
account the recommendations of ISS or other third party services and the
analysts of Gabelli & Company, Inc., will be presented to the Proxy Voting
Committee. If the Chairman of the Committee, the Director of Proxy Voting
Services or the Legal Department has identified the matter as one that (1) is
controversial; (2) would benefit from deliberation by the Proxy Voting
Committee; or (3) may give rise to a conflict of interest between the Advisers
and their clients, the Chairman of the Committee will initially determine what
vote to recommend that the Advisers should cast and the matter will go before
the Committee.

For matters submitted to the Committee, each member of the Committee
will receive, prior to the meeting, a copy of the proxy statement, any relevant
third party research, a summary of any views provided by the Chief Investment
Officer and any recommendations by Gabelli & Company, Inc. analysts. The Chief
Investment Officer or the Gabelli & Company, Inc. analysts may be invited to
present their viewpoints. If the Legal Department believes that the matter
before the committee is one with respect to which a conflict of interest may
exist between the Advisers and their clients, counsel will provide an opinion to
the Committee concerning the conflict. If the matter is one in which the
interests of the clients of one or more of Advisers may diverge, counsel will so
advise and the Committee may make different recommendations as to different
clients. For any matters where the recommendation may trigger appraisal rights,
counsel will provide an opinion concerning the likely risks and merits of such
an appraisal action.

Each matter submitted to the Committee will be determined by the vote
of a majority of the members present at the meeting. Should the vote concerning
one or more recommendations be tied in a vote of the Committee, the Chairman of
the Committee will cast the deciding vote. The Committee will notify the proxy
department of its decisions and the proxies will be voted accordingly.

Although the Proxy Guidelines express the normal preferences for the
voting of any shares not covered by a contrary investment guideline provided by
the client, the Committee is not bound by the preferences set forth in the Proxy
Guidelines and will review each matter on its own merits. Written minutes of all
Proxy Voting Committee meetings will be maintained. The Advisers subscribe to
ISS, which supplies current information on companies, matters being voted on,
regulations, trends in proxy voting and information on corporate governance
issues.

If the vote cast either by the analyst or as a result of the
deliberations of the Proxy Voting Committee runs contrary to the recommendation
of the Board of Directors of the issuer, the matter will be referred to legal
counsel to determine whether an amendment to the most recently filed Schedule
13D is appropriate.

II. SOCIAL ISSUES AND OTHER CLIENT GUIDELINES

If a client has provided special instructions relating to the voting of
proxies, they should be noted in the client's account file and forwarded to the
proxy department. This is the responsibility of the investment professional or
sales assistant for the client. In accordance with Department of Labor
guidelines, the Advisers' policy is to vote on behalf of ERISA accounts in the
best interest of the plan participants with regard to social issues that carry
an economic impact. Where an account is not governed by ERISA, the Advisers will
vote shares held on behalf of the client in a manner consistent with any
individual investment/voting guidelines provided by the client. Otherwise the
Advisers will abstain with respect to those shares.

III. CLIENT RETENTION OF VOTING RIGHTS

If a client chooses to retain the right to vote proxies or if there is
any change in voting authority, the following should be notified by the
investment professional or sales assistant for the client.

- Operations

- Legal Department

- Proxy Department

- Investment professional assigned to the account

In the event that the Board of Directors (or a Committee thereof) of
one or more of the investment companies managed by one of the Advisers has
retained direct voting control over any security, the Proxy Voting Department
will provide each Board Member (or Committee member) with a copy of the proxy
statement together with any other relevant information including recommendations
of ISS or other third-party services.

IV. VOTING RECORDS

The Proxy Voting Department will retain a record of matters voted upon
by the Advisers for their clients. The Advisers' staff may request proxy-voting
records for use in presentations to current or prospective clients. Requests for
proxy voting records should be made at least ten days prior to client meetings.

If a client wishes to receive a proxy voting record on a quarterly,
semi-annual or annual basis, please notify the Proxy Voting Department. The
reports will be available for mailing approximately ten days after the quarter
end of the period. First quarter reports may be delayed since the end of the
quarter falls during the height of the proxy season.

A letter is sent to the custodians for all clients for which the
Advisers have voting responsibility instructing them to forward all proxy
materials to:

[Adviser name]

Attn: Proxy Voting Department

One Corporate Center

Rye, New York 10580-1433

The sales assistant sends the letters to the custodians along with the
trading/DTC instructions. Proxy voting records will be retained in compliance
with Rule 204-2 under the Investment Advisers Act.

V. VOTING PROCEDURES

1. Custodian banks, outside brokerage firms and First Clearing Corporation are
responsible for forwarding proxies directly to GAMCO.

Proxies are received in one of two forms:

o Shareholder Vote Authorization Forms (VAFs) - Issued by ADP. VAFs must be
voted through the issuing institution causing a time lag. ADP is an outside
service contracted by the various institutions to issue proxy materials.
o Proxy cards which may be voted directly.

2. Upon receipt of the proxy, the number of shares each form represents is
logged into the proxy system according to security.

3. In the case of a discrepancy such as an incorrect number of shares, an
improperly signed or dated card, wrong class of security, etc., the issuing
custodian is notified by phone. A corrected proxy is requested. Any arrangements
are made to insure that a proper proxy is received in time to be voted
(overnight delivery, fax, etc.). When securities are out on loan on record date,
the custodian is requested to supply written verification.

4. Upon receipt of instructions from the proxy committee, the votes are cast and
recorded for each account on an individual basis.

Since January 1, 1992, records have been maintained on the Proxy Edge system.
The system is backed up regularly. From 1990 through 1991, records were
maintained on the PROXY VOTER system and in hardcopy format. Prior to 1990,
records were maintained on diskette and in hardcopy format.

PROXY EDGE records include:

Security Name and Cusip Number

Date and Type of Meeting (Annual, Special, Contest)

Client Name

Adviser or Fund Account Number

Directors' Recommendation

How the Adviser voted for the client on each issue

The rationale for the vote when it is appropriate

Records prior to the institution of the PROXY EDGE system include:

Security name

Type of Meeting (Annual, Special, Contest)

Date of Meeting

Name of Custodian

Name of Client

Custodian Account Number

Adviser or Fund Account Number

Directors' recommendation

How the Adviser voted for the client on each issue

Date the proxy statement was received and by whom

Name of person posting the vote

Date and method by which the vote was cast

o From these records individual client proxy voting records are compiled. It
is our policy to provide institutional clients with a proxy voting record
during client reviews. In addition, we will supply a proxy voting record at
the request of the client on a quarterly, semi-annual or annual basis. On
an annual basis, all registered investment companies file their Proxy
Voting History for the period July 1 - June 30 on Form N-PX.

5. VAFs are kept alphabetically by security. Records for the current proxy
season are located in the Proxy Voting Department office. In preparation for the
upcoming season, files are transferred to an offsite storage facility during
January/February.

6. Shareholder Vote Authorization Forms issued by ADP are always sent directly
to a specific individual at ADP.

7. If a proxy card or VAF is received too late to be voted in the conventional
matter, every attempt is made to vote on one of the following manners:

o VAFs can be faxed to ADP up until the time of the meeting. This is followed
up by mailing the original form.

o When a solicitor has been retained, the solicitor is called. At the
solicitor's direction, the proxy is faxed.

8. In the case of a proxy contest, records are maintained for each opposing
entity.

9. Voting in Person

a) At times it may be necessary to vote the shares in person. In this case, a
"legal proxy" is obtained in the following manner:

o Banks and brokerage firms using the services at ADP:
A call is placed to ADP requesting legal proxies. The VAFs are then sent
overnight to ADP. ADP issues individual legal proxies and sends them back
via overnight. A lead-time of at least two weeks prior to the meeting is
needed to do this. Alternatively, the procedures detailed below for banks
not using ADP may be implemented.

o Banks and brokerage firms issuing proxies directly: The bank is called
and/or faxed and a legal proxy is requested.

All legal proxies should appoint:

"REPRESENTATIVE OF [ADVISER NAME] WITH FULL POWER OF SUBSTITUTION."

b) The legal proxies are given to the person attending the meeting along with
the following supplemental material:

o A limited Power of Attorney appointing the attendee an Adviser
representative.

o A list of all shares being voted by custodian only. Client names and account
numbers are not included. This list must be presented, along with the
proxies, to the Inspectors of Elections and/or tabulator at least one-half
hour prior to the scheduled start of the meeting. The tabulator must
"qualify" the votes (i.e. determine if the vote have previously been cast,
if the votes have been rescinded, etc. votes have previously been cast,
etc.).

o A sample ERISA and Individual contract.

o A sample of the annual authorization to vote proxies form.

o A copy of our most recent Schedule 13D filing (if applicable).

APPENDIX A

PROXY GUIDELINES

-------------------------------------------------

PROXY VOTING GUIDELINES

-------------------------------------------------

GENERAL POLICY STATEMENT

It is the policy of GABELLI ASSET MANAGEMENT INC. to vote in the best economic
interests of our clients. As we state in our Magna Carta of Shareholders Rights,
established in May 1988, we are neither FOR nor AGAINST management. We are for
shareholders.

At our first proxy committee meeting in 1989, it was decided that each proxy
statement should be evaluated on its own merits within the framework first
established by our Magna Carta of Shareholders Rights. The attached guidelines
serve to enhance that broad framework.

We do not consider any issue routine. We take into consideration all of our
research on the company, its directors, and their short and long-term goals for
the company. In cases where issues that we generally do not approve of are
combined with other issues, the negative aspects of the issues will be factored
into the evaluation of the overall proposals but will not necessitate a vote in
opposition to the overall proposals.

BOARD OF DIRECTORS

The advisers do not consider the election of the Board of Directors a routine
issue. Each slate of directors is evaluated on a case-by-case basis.

Factors taken into consideration include:

o Historical responsiveness to shareholders
This may include such areas as:

-Paying greenmail

-Failure to adopt shareholder resolutions receiving a majority of
shareholder votes

o Qualifications
o Nominating committee in place
o Number of outside directors on the board
o Attendance at meetings
o Overall performance

SELECTION OF AUDITORS

In general, we support the Board of Directors' recommendation for auditors.

BLANK CHECK PREFERRED STOCK

We oppose the issuance of blank check preferred stock.

Blank check preferred stock allows the company to issue stock and establish
dividends, voting rights, etc. without further shareholder approval.

CLASSIFIED BOARD

A classified board is one where the directors are divided into classes with
overlapping terms. A different class is elected at each annual meeting.

While a classified board promotes continuity of directors facilitating long
range planning, we feel directors should be accountable to shareholders on an
annual basis. We will look at this proposal on a case-by-case basis taking into
consideration the board's historical responsiveness to the rights of
shareholders.

Where a classified board is in place, we will generally not support attempts to
change to an annually elected board.

When an annually elected board is in place, we generally will not support
attempts to classify the board.

INCREASE AUTHORIZED COMMON STOCK

The request to increase the amount of outstanding shares is considered on a
case-by-case basis.

Factors taken into consideration include:

o Future use of additional shares
-Stock split

-Stock option or other executive compensation plan

-Finance growth of company/strengthen balance sheet

-Aid in restructuring

-Improve credit rating

-Implement a poison pill or other takeover defense

o Amount of stock currently authorized but not yet issued or reserved for
stock option plans
o Amount of additional stock to be authorized and its dilutive effect

We will support this proposal if a detailed and verifiable plan for the use of
the additional shares is contained in the proxy statement.

CONFIDENTIAL BALLOT

We support the idea that a shareholder's identity and vote should be treated
with confidentiality.

However, we look at this issue on a case-by-case basis.

In order to promote confidentiality in the voting process, we endorse the use of
independent Inspectors of Election.

CUMULATIVE VOTING

In general, we support cumulative voting.

Cumulative voting is a process by which a shareholder may multiply the number of
directors being elected by the number of shares held on record date and cast the
total number for one candidate or allocate the voting among two or more
candidates.

Where cumulative voting is in place, we will vote against any proposal to
rescind this shareholder right.

Cumulative voting may result in a minority block of stock gaining representation
on the board. When a proposal is made to institute cumulative voting, the
proposal will be reviewed on a case-by-case basis. While we feel that each board
member should represent all shareholders, cumulative voting provides minority
shareholders an opportunity to have their views represented.

DIRECTOR LIABILITY AND INDEMNIFICATION

We support efforts to attract the best possible directors by limiting the
liability and increasing the indemnification of directors, except in the case of
insider dealing.

EQUAL ACCESS TO THE PROXY

The SEC's rules provide for shareholder resolutions. However, the resolutions
are limited in scope and there is a 500 word limit on proponents' written
arguments. Management has no such limitations. While we support equal access to
the proxy, we would look at such variables as length of time required to
respond, percentage of ownership, etc.

FAIR PRICE PROVISIONS

Charter provisions requiring a bidder to pay all shareholders a fair price are
intended to prevent two-tier tender offers that may be abusive. Typically, these
provisions do not apply to board-approved transactions.

We support fair price provisions because we feel all shareholders should be
entitled to receive the same benefits.

Reviewed on a case-by-case basis.

GOLDEN PARACHUTES

Golden parachutes are severance payments to top executives who are terminated or
demoted after a takeover.

We support any proposal that would assure management of its own welfare so that
they may continue to make decisions in the best interest of the company and
shareholders even if the decision results in them losing their job. We do not,
however, support excessive golden parachutes. Therefore, each proposal will be
decided on a case-by- case basis.

NOTE: CONGRESS HAS IMPOSED A TAX ON ANY PARACHUTE THAT IS MORE THAN THREE TIMES
THE EXECUTIVE'S AVERAGE ANNUAL COMPENSATION.

ANTI-GREENMAIL PROPOSALS

We do not support greenmail. An offer extended to one shareholder should be
extended to all shareholders equally across the board.

LIMIT SHAREHOLDERS' RIGHTS TO CALL SPECIAL MEETINGS

We support the right of shareholders to call a special meeting.

CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER

This proposal releases the directors from only looking at the financial effects
of a merger and allows them the opportunity to consider the merger's effects on
employees, the community, and consumers.

As a fiduciary, we are obligated to vote in the best economic interests of our
clients. In general, this proposal does not allow us to do that. Therefore, we
generally cannot support this proposal.

Reviewed on a case-by-case basis.

MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS

Each of the above is considered on a case-by-case basis. According to the
Department of Labor, we are not required to vote for a proposal simply because
the offering price is at a premium to the current market price. We may take into
consideration the long term interests of the shareholders.

MILITARY ISSUES

Shareholder proposals regarding military production must be evaluated on a
purely economic set of criteria for our ERISA clients. As such, decisions will
be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients, we will vote according to
the client's direction when applicable. Where no direction has been given, we
will vote in the best economic interests of our clients. It is not our duty to
impose our social judgment on others.

NORTHERN IRELAND

Shareholder proposals requesting the signing of the MacBride principles for the
purpose of countering the discrimination of Catholics in hiring practices must
be evaluated on a purely economic set of criteria for our ERISA clients. As
such, decisions will be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients, we will vote according to
client direction when applicable. Where no direction has been given, we will
vote in the best economic interests of our clients. It is not our duty to impose
our social judgment on others.

OPT OUT OF STATE ANTI-TAKEOVER LAW

This shareholder proposal requests that a company opt out of the coverage of the
state's takeover statutes. Example: Delaware law requires that a buyer must
acquire at least 85% of the company's stock before the buyer can exercise
control unless the board approves.

We consider this on a case-by-case basis. Our decision will be based on the
following:

o State of Incorporation
o Management history of responsiveness to shareholders
o Other mitigating factors

POISON PILL

In general, we do not endorse poison pills.

In certain cases where management has a history of being responsive to the needs
of shareholders and the stock is very liquid, we will reconsider this position.

REINCORPORATION

Generally, we support reincorporation for well-defined business reasons. We
oppose reincorporation if proposed solely for the purpose of reincorporating in
a state with more stringent anti-takeover statutes that may negatively impact
the value of the stock.

STOCK OPTION PLANS

Stock option plans are an excellent way to attract, hold and motivate directors
and employees. However, each stock option plan must be evaluated on its own
merits, taking into consideration the following:

o Dilution of voting power or earnings per share by more than 10%
o Kind of stock to be awarded, to whom, when and how much
o Method of payment
o Amount of stock already authorized but not yet issued under existing
stock option plans

SUPERMAJORITY VOTE REQUIREMENTS

Supermajority vote requirements in a company's charter or bylaws require a level
of voting approval in excess of a simple majority of the outstanding shares. In
general, we oppose supermajority-voting requirements. Supermajority requirements
often exceed the average level of shareholder participation. We support
proposals' approvals by a simple majority of the shares voting.

LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT

Written consent allows shareholders to initiate and carry on a shareholder
action without having to wait until the next annual meeting or to call a special
meeting. It permits action to be taken by the written consent of the same
percentage of the shares that would be required to effect proposed action at a
shareholder meeting.

Reviewed on a case-by-case basis.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not yet applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Provide the information specified in the table with respect to any purchase made
by or on behalf of the registrant or any "affiliated purchaser" as defined in
Rule 10b-18(a)(3) under the Exchange Act (17CFR 240-10b-18(a)(3)), of shares or
other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).

REGISTRANT PURCHASES OF EQUITY SECURITIES

-----------------------------------------------------------------------------------------------------------------------------------
(C) TOTAL NUMBER OF SHARES (OR (D) MAXIMUM NUMBER (OR APPROXIMATE
(A) TOTAL NUMBER (B) AVERAGE UNITS) PURCHASED AS PART OF DOLLAR VALUE) OF SHARES (OR UNITS) THAT
OF SHARES (OR PRICE PAID PER PUBLICLY ANNOUNCED PLANS OR MAY YET BE PURCHASED UNDER
PERIOD UNITS) PURCHASED SHARE (OR UNIT) PROGRAMS THE PLANS OR PROGRAMS
-----------------------------------------------------------------------------------------------------------------------------------

Month #1 Common - N/A Common - N/A Common - N/A Common - 11,565,235
07/01/04
through
07/31/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Month #2 Common - N/A Common - N/A Common - N/A Common - 11,565,235
08/01/04
through
08/31/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Month #3 Common - N/A Common - N/A Common - N/A Common - 11,565,235
09/01/04
through
09/30/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Month #4 Common - N/A Common - N/A Common - N/A Common - 11,640,690
10/01/04
through
10/31/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Month #5 Common - N/A Common - N/A Common - N/A Common - 11,640,690
11/01/04
through
11/30/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Month #6 Common - N/A Common - N/A Common - N/A Common - 11,640,690
12/01/04
through
12/31/04 Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 990,800
-----------------------------------------------------------------------------------------------------------------------------------
Total Common - N/A Common - N/A Common - N/A N/A

Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
-----------------------------------------------------------------------------------------------------------------------------------

Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:

a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment Company Act
of 1940, as amended.

b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are trading
at a discount of 10% or more from the net asset value of the shares.

Any or all preferred shares outstanding may be repurchased when the Fund's
preferred shares are trading at a discount to the liquidation value of $25.00.

c. The expiration date (if any) of each plan or program - The Fund's repurchase
plans are ongoing.

d. Each plan or program that has expired during the period covered by the table
- The Fund's repurchase plans are ongoing.

e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.

ITEM 11. 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 second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Code of ethics, that is the subject of disclosure required by Item
2, filed as exhibit (a)(1) to the Registrant's Form N-CSR, filed
on March 10, 2004 (Accession No. 0000935069-04-000489).

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 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 March 9, 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 March 9, 2005
----------------------------------------------------------------------------

* Print the name and title of each signing officer under his or her signature.