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  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 3/11/05  Gam Funds Inc                     N-CSR      12/31/04    4:226                                    930413

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Certified Annual Shareholder Report of a            HTML  1,449K 
                          Management Investment Company                          
 2: EX-99.CODE ETH  Miscellaneous Exhibit                           HTML     27K 
 3: EX-99.CERT  Miscellaneous Exhibit                               HTML     19K 
 4: EX-99.906 CERT  Miscellaneous Exhibit                           HTML      8K 

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

GAM Funds, Inc.

GAM INTERNATIONAL FUND

GAM PACIFIC BASIN FUND

GAM EUROPE FUND

GAM AMERICAN FOCUS FUND

GAMERICA CAPITAL FUND

GAM GABELLI LONG/SHORT FUND

GAM FUNDS, INC.

INVESTMENT ADVISERS:

The GAM Group

The GAM group was founded in April 1983 by Gilbert de Botton. GAM’s corporate policy is to attempt to harness the top investment talent in the world, not only in-house but also outside the GAM organization, in order to provide above average, long-term growth. The GAM group currently has in excess of US$37 billion under management and employs a worldwide staff of over 700 people.

For US investors, GAM offers GAM Funds, Inc. (the “Company”) an open-end diversified management investment company registered under the Investment Company Act of 1940, as amended. The Company consists of six open-end mutual funds – GAM International, GAM Pacific Basin, GAM Europe, GAM American Focus, GAMerica Capital and GAM Gabelli Long/Short Funds.

For additional information about the GAM Funds, please contact your financial consultant or call GAM at 1–800–426–4685 (toll-free).

GAM International Fund

FUND MANAGEMENT

Sean Taylor is an Investment Director. He joined GAM in 2004 to manage global mandates. Prior to joining GAM, Mr Taylor was Head of Global Equity at SG Asset Management, where he was also Head of the Emerging Market Desk. Previously he was a fund manager at Capel-Cure Myers and before that he was at HSBC James Capel Investment Management. Until 1992 Mr Taylor served as an officer in the British Army having attended the Royal Military Academy, Sandhurst. He has an MBA from Manchester Business School.

The Fund’s investment objective is to seek long-term capital appreciation, generally through investment in equity securities issued by companies in countries other than the United States, including Canada, the United Kingdom, Continental Europe and the Pacific Basin. However, if the Fund determines that the long-term capital appreciation of debt securities may equal or exceed the return on equity securities, it may be substantially invested in debt securities of companies and governments, their agencies and instrumentalities. Any income realized by the Fund on its investments will be incidental to its goal of long-term capital appreciation.

Investments in securities of foreign issuers involve additional risks and expenses including currency rate fluctuations, political and economic instability, foreign taxes and different accounting and reporting standards.

REPORT TO SHAREHOLDERS (UNAUDITED)

THE FACTS – CLASS A SHARES

Performance is calculated on a total return basis. Class A inception was on 2nd January, 1985, Class B on 26th May, 1998, and Class C on 19th May, 1998. Past performance is not necessarily indicative of future performance. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

GAM International Fund

NOTE: The graph compares the performance results of a hypothetical $10,000 investment in Class A and a comparable index. The performance of Class A is shown after adjustment to reflect the maximum sales load, which is waived for certain investors. The performance of the index does not reflect brokerage commissions and other expenses that would be incurred to acquire a comparable portfolio of securities. The performance tables and graphs do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The MSCI Europe, Australasia and Far East Index is a market value weighted, unmanaged index of the weighted share prices of some 1,093 companies listed on the stock exchanges of Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The combined market capitalization of these companies represents approximately 60% of the aggregate market value of the stock exchanges of the above 20 countries. The percentage change in the value of the index includes dividends reinvested.

AVERAGE ANNUAL TOTAL RETURN – CLASS A

ANNUAL PERFORMANCE – CLASS A

THE FACTS – CLASS B SHARES

THE FACTS – CLASS C SHARES

EXPENSE DISCLOSURE

HYPOTHETICAL $1,000 INVESTMENT

As a shareholder of the Fund, you can incur two types of costs: (1) transaction costs, including sales charges on purchase payments; and (2) ongoing costs, including management fees and other fund expenses. This disclosure is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from 1st July, 2004 to 31st December, 2004.

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period.

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples of other funds in this report or elsewhere. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges. If these transactional costs were included, your costs would have been higher.

THE COMMENT

The Fund’s Class A NAV had a strong year returning 17.68% in USD. The Fund was helped by strong international markets with the MSCI EAFE price index returning 17.59% and the MSCI EAFE total return index returning 20.70% .

During this period most asset classes globally produced positive returns as the Federal reserve held Fed funds at a low nominal and negative real level. In currency terms the US dollar was weak against most other currencies. International stocks outperformed their US counterparts, mainly due to currency. On a regional basis, Europe was the outperformer after a strong 4th quarter rally, helped by a strong Euro, brought the return for the year above 20%.The Pacific region also produced nearly 20% returns with Australia and Hong Kong and Singapore the outperformers and Japan the laggard. The Emerging Markets also had a strong year.

In terms of attribution the Fund was in line with the price index, but lagged the total return index. The equity proportion of the Fund outperformed but performance was detracted from the small cash holding, necessary for liquidity, and fees. According to Morningstar the Fund’s performance during the period was above the average International fund. By June the changes of the new manager had been implemented. The most significant change was to reduce the number of holdings to around 90. In the sixth month period to Dec 04 the Fund’s Class A NAV produced a return of 16.07% versus the MSCI EAFE price index of 14.12% and total return index of 15.10% . The equity portion of the Fund, excluding cash asset allocation, produced a flat contribution whereas stock selection contributed positively. In asset allocation Emerging Markets contributed positively, whereas underweights in Europe and Australia detracted from performance. Stock selection in both Europe and the Pacific were positive contributors. In particular stock selection was strong in Italy, Japan, Singapore and the United Kingdom.

Over the year the best contributors to performance on a stock level were Promina in Australia, AU Optronics Corp in Taiwan, Hyflux in Singapore, Hong Kong Land in Hong Kong, and Aiful in Japan. The main detractors of performance were Jafco, Ricoh and Sanyo in Japan, Rio Tinto in Australia, and Infineon in Germany.

The outlook for 2005 is less clear as the potential for US rates rises increases. On the one hand global growth looks to be robust, even if it is slowing from 2004. On the other hand valuations of international stocks are still relatively attractive.

GAM International Fund

STATEMENT OF INVESTMENTS AS AT 31ST DECEMBER, 2004

GAM Pacific Basin Fund

FUND MANAGEMENT

Lesley Kaye is the Investment Director responsible for GAM's Japan funds and co-manager of GAM's Pacific funds with Michael Lai. She joined GAM in May 2001, prior to which she was a Japanese equity broker for 13 years at ING Barings (formerly Baring Securities). Ms Kaye started her career with Nikko Securities and also spent two years on the Japan desk of Hoare Govett. She holds a BA in Languages from Bristol University. Ms Kaye is based in London.

Michael Lai is the Investment Director responsible for GAM's Asian funds and co-manager of GAM's Pacific funds with Lesley Kaye. Before joining GAM in 1998, he was Senior Vice President at Trust Company of the West (Asia) responsible for Asian portfolios. Prior to this, he was an investment manager at BZW Investment Management (HK). Mr Lai holds an MSc in Econometrics from the London School of Economics and is a CFA charterholder. He is based in Hong Kong.

The Fund’s investment objective is to seek long-term capital appreciation, generally through investment in equity securities issued by companies with principal offices in the Pacific Basin, including Japan, Hong Kong, Singapore, Malaysia, Indonesia, the Philippines, Korea, Taiwan, India, Australia and New Zealand. However, if the Fund determines that the long-term capital appreciation of debt securities may equal or exceed the return on equity securities, it may be invested substantially in debt securities of Pacific Basin companies and their governments, their agencies and instrumentalities. Any income realized by the Fund on its investments will be incidental to its goal of long-term capital appreciation.

Investments in securities of foreign issuers involve additional risks and expenses including currency rate fluctuations, political and economic instability, foreign taxes and different accounting and reporting standards.

REPORT TO SHAREHOLDERS (UNAUDITED)

THE FACTS – CLASS A SHARES

Performance is calculated on a total return basis. Class A inception was on 6th May, 1987, Class B on 26th May, 1998, and Class C on 1st June, 1998. Past performance is not necessarily indicative of future performance. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

NOTE: The graph compares the performance results of a hypothetical $10,000 investment in Class A and a comparable index. The performance of Class A is shown after adjustment to reflect the maximum sales load, which is waived for certain investors. The performance of the index does not reflect brokerage commissions and other expenses that would be incurred to acquire a comparable portfolio of securities. The performance tables and graphs do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The MSCI Pacific Index is an arithmetical average weighted by market value of the performance of some 410 securities listed on the stock exchanges of Australia, Hong Kong, New Zealand, Singapore/Malaysia and Japan. The combined market capitalization of these companies represents approximately 60% of the aggregate market value of the stock exchanges of the above 5 countries. The percentage change in the value of the index includes dividends reinvested.

AVERAGE ANNUAL TOTAL RETURN – CLASS A

ANNUAL PERFORMANCE – CLASS A

GAM Pacific Basin Fund

THE FACTS – CLASS B SHARES

THE FACTS – CLASS C SHARES

EXPENSE DISCLOSURE

HYPOTHETICAL $1,000 INVESTMENT

As a shareholder of the Fund, you can incur two types of costs: (1) transaction costs, including sales charges on purchase payments; and (2) ongoing costs, including management fees and other fund expenses. This disclosure is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from 1st July, 2004 to 31st December, 2004. The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period.

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples of other funds in this report or elsewhere.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges. If these transactional costs were included, your costs would have been higher.

THE COMMENT

The stock markets of the Pacific region posted a return of 19.30% (as measured by the MSCI Pacific index in USD) for the twelve months ended 31st December, 2004.

Japan, which is the largest component of the benchmark at 73.70%, achieved a return of 15.95% for the year, as measured by the MSCI Japan index in US dollar terms. The Fund has continued to underweight Japan throughout the year and its allocation was 49.10% at year-end. There were good performances from the consumer finance and general financial area and in particular, stocks such as Aiful, Credit Saison, JAFCO and Orix. The Japanese market was weaker towards the end of the year, as a result of a continuation of poor economic data releases compounded by the worst typhoon season on record in October followed by the worst earthquake since Kobe in November. However, we are happy with the view that this is a mid-cycle lull. Japan’s cycle is no longer dysfunctional. Domestic sectors were the best performers due to the weakness in the dollar, which at one point caused the yen to spike to 102. In spite of this, corporate earnings were exceptionally good and, for the first time in over 20 years, the market is underpinned by cheap valuations. We used the weakness to add to existing holdings.

Of the other regional markets, Australia was the top performer, up 31.95% for the year, as measured by the MSCI Australia index in US dollar term. The portfolio’s weighting to that market was 11.50% at year-end which is underweight that of the MSCI Pacific index. We continue to hold long-term positions in stocks such as AWB (Australia Wheat Board) and St George Bank and added BHP Billiton later in the year. BHP and Rio Tinto, another of the Fund’s holdings, are benefiting greatly from rising commodity prices.

Hong Kong and Singapore also performed well, with the Hang Seng Index in US dollar terms up 16.80% and the Straits Times Index in US dollar terms up 21.82% . Property is a key theme for the Fund’s Hong Kong exposure. We believe improved consumer confidence and a weaker US dollar may serve to inflate Hong Kong dollar asset prices because of Hong Kong’s currency peg to the US dollar. Recent transactions in the property market suggest that high prices are sustainable, which augurs well for the economy as a whole.

The Fund’s holdings in Singapore are dominated by property, energy and quasi-monopoly-type companies and there are signs that loan growth and the economy in general are improving.

In China, although the economy appears to be in a reasonable shape and consumption may continue to grow, any slowdown in growth may impact cyclical companies. We have focused on stock-specific situations, which have been mostly consumer staples and services companies. We are also continuing to focus on energy via companies in China such as CNOOC, the state-owned oil company.

STATEMENT OF INVESTMENTS AS AT 31ST DECEMBER, 2004

GAM Pacific Basin Fund

GAM Europe Fund

FUND MANAGEMENT

John Bennett is the Investment Director responsible for Europe-an markets. Mr Bennett heads a team of four European equity specialists, running long only and long/short strategies. Prior to joining GAM in 1993, he was a Senior Fund Manager at Ivory & Sime responsible for Continental European equity portfolios. He qualified in 1986 as a Member of the Chartered Institute of Bankers in Scotland.

The Fund’s investment objective is to seek long-term capital appreciation, generally through investment in equity securities issued by companies in Europe. However, if the Fund determines that the long-term capital appreciation of debt securities may equal or exceed the return on equity securities, it may be substantially invested in debt securities of companies and governments, their agencies and instrumentalities. Any income realized by the Fund on its investments will be incidental to its goal of long-term capital appreciation.

Investments in securities of foreign issuers involve additional risks and expenses including currency rate fluctuations, political and economic instability, foreign taxes and different accounting and reporting standards.

REPORT TO SHAREHOLDERS (UNAUDITED)

THE FACTS – CLASS A SHARES

Performance is calculated on a total return basis. Class A inception was on 1st January, 1990, Class B on 26th May, 1998 and Class C on 20th May, 1998. Past performance is not necessarily indicative of future performance. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

GAM Europe Fund

NOTE: The graph compares the performance results of a hypothetical $10,000 investment in Class A and a comparable index. The performance of Class A is shown after adjustment to reflect the maximum sales load, which is waived for certain investors. The performance of the index does not reflect brokerage commissions and other expenses that would be incurred to acquire a comparable portfolio of securities. The performance tables and graphs do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The MSCI Europe Index is a market value weighted, unmanaged index of the weighted share prices of companies listed on the stock exchanges of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. The combined market capitalization of these companies represents approximately 60% of the aggregate market value of the stock exchanges of the above 15 countries. The percentage change in the value of the index includes dividends reinvested.

AVERAGE ANNUAL TOTAL RETURN – CLASS A

ANNUAL PERFORMANCE – CLASS A

THE FACTS – CLASS B SHARES

THE FACTS – CLASS C SHARES

EXPENSE DISCLOSURE

HYPOTHETICAL $1,000 INVESTMENT

As a shareholder of the Fund, you can incur two types of costs: (1) transaction costs, including sales charges on purchase payments; and (2) ongoing costs, including management fees and other fund expenses. This disclosure is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from 1st July, 2004 to 31st December, 2004.

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period.

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples of other funds in this report or elsewhere.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges. If these transactional costs were included, your costs would have been higher.