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 811-08476
The Gabelli Global Multimedia Trust Inc.
--------------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
--------------------------------------------------------
(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, 2004
-----------------
Date of reporting period: June 30, 2004
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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.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI-ANNUAL REPORT
JUNE 30, 2004
GGT PQ2/04
[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
Semi-Annual Report
June 30, 2004
TO OUR SHAREHOLDERS,
During the second quarter of 2004, the Gabelli Global Multimedia Trust's
(the "Trust") total return declined 1.2% on a net asset value ("NAV") basis,
while the Morgan Stanley Capital International All Country ("MSCI AC") World
Free Index rose 0.5% and the Lipper Global Multi-Cap Growth Fund Average
declined 1.2%. For the six-month period ended June 30, 2004, the Trust's NAV
total return rose 2.6% versus gains of 3.6% and 2.3% for the MSCI AC World Free
Index and Lipper Global Multi-Cap Growth Fund Average, respectively, over the
same period. The Trust's market price on June 30, 2004 was $9.16, which equates
to a 15.4% discount to its NAV of $10.83. The Trust's market price fell 1.8%
during the second quarter but rose 1.0% during the six-month period ended June
30, 2004.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2004.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2004 (a)
------------------------------------------------
YEAR TO SINCE
QUARTER DATE 1 YEAR 3 YEAR 5 YEAR INCEPTION (b)
------- ---- ------ ------ ------ -------------
Gabelli Global Multimedia Trust
NAV Return (c) .................................... (1.19)% 2.56% 20.47% (4.10)% (0.93)% 11.61%
Investment Return (d) ............................. (1.82) 0.99 18.19 (4.36) (1.57) 10.29
MSCI AC World Free Index ............................ 0.52 3.57 24.92 1.80 (1.14) 7.35(e)
Nasdaq Composite Index .............................. 2.69 2.22 26.19 (1.78) (5.28) 10.71
Lipper Global Multi-Cap Growth Fund Avg ............. (1.15) 2.34 23.62 (0.01) 1.99 8.18(e)
(a) Returns represent past performance and do not guarantee future results.
Investment returns and the principal value of an investment will
fluctuate. When shares are sold, they may be worth more or less than their
original cost. The Morgan Stanley Capital International (MSCI) All Country
(AC) World Free and Nasdaq Composite Indices are unmanaged indicators 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 except for the Nasdaq
Composite Index. Current performance may be lower or higher than the 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 Trust before investing.
Performance for periods less than one year is not annualized.
(b) From commencement of investment operations on November 15, 1994.
(c) Total returns and average annual returns reflect changes in net asset
value (NAV), reinvestment of distributions at NAV on the ex-dividend date,
adjustments for rights offerings, and are net of expenses. Since inception
return based on initial net asset value of $7.50.
(d) Total returns and average annual returns reflect changes in closing market
values on the New York Stock Exchange, reinvestment of distributions and
adjustments for rights offerings. Since inception return based on initial
offering price of $7.50.
(e) From November 30, 1994, the date closest to the Trust's inception for
which data is available.
--------------------------------------------------------------------------------
SHAREHOLDER MEETING -- MAY 10, 2004 -- FINAL RESULTS
The Annual Meeting of Shareholders was held on May 10, 2004 at the
Greenwich Public Library in Greenwich, Connecticut. At that meeting, common
shareholders and preferred shareholders voting as a single class elected Mario
J. Gabelli and Thomas E. Bratter as Directors of the Trust. There were
13,512,287 votes and 13,508,996 votes cast in favor of these Directors and
147,599 votes and 150,890 votes withheld for these Directors, respectively.
Preferred shareholders voting as a separate class elected Anthony J. Colavita as
a Director of the Trust. There were 957,037 votes cast in favor of this Director
and 5,137 votes withheld for this Director.
James P. Conn, Frank J. Fahrenkopf, Jr., Karl Otto Pohl, Anthony R.
Pustorino, Werner J. Roeder and Salvatore J. Zizza continue to serve in their
capacities as Directors of the Trust.
We thank you for your participation and appreciate your continued support.
WWW.GABELLI.COM
Please visit us on the Internet. Our homepage at www.gabelli.com contains
information about Gabelli Asset Management Inc., the Gabelli Mutual Funds, IRAs,
401(k)s, current and historical quarterly reports, closing prices and other
current news. We welcome your comments and questions via e-mail at
[email protected].
You may sign up for our e-mail alerts at www.gabelli.com and receive early
notice of quarterly report availability, news events, media sightings, mutual
fund prices and performance, and access to the Gabelli & Company, Inc. research
library.
--------------------------------------------------------------------------------
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to new corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately. Both the commentary
and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com/funds.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
A description of the Trust's proxy voting policies and procedures and how the
Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30, 2004 are available (i) without charge, 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) on the Securities
and Exchange Commission's website at www.sec.gov.
--------------------------------------------------------------------------------
2
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS -- 88.8%
COPYRIGHT/CREATIVITY COMPANIES -- 38.3%
BUSINESS SERVICES: ADVERTISING -- 0.5%
8,000 Donnelley (R.H.) Corp.+ ................................ $ 101,139 $ 349,920
20,000 Harte-Hanks Inc. ....................................... 147,611 488,200
4,200 Havas SA ............................................... 20,733 21,871
2,000 Publicis Groupe ........................................ 13,971 59,202
------------ ------------
283,454 919,193
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.0%
46,165 Agere Systems Inc., Cl. B+ ............................. 142,676 99,255
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 2.3%
3,375 Activision Inc.+ ....................................... 6,415 53,663
10,000 America Online Latin
America Inc., Cl. A+ ................................. 43,250 6,900
3,000 Atlus Co. Ltd. ......................................... 17,662 23,342
9,473 CNET Networks Inc.+ .................................... 102,468 104,866
3,230 EarthLink Inc.+ ........................................ 45,250 33,431
1,000 Electronic Arts Inc.+ .................................. 5,588 54,550
25,000 EMC Corp.+ ............................................. 335,174 285,000
10,000 Jupitermedia Corp.+ .................................... 12,067 141,600
25,000 Maxtor Corp.+ .......................................... 231,070 165,750
65,000 Microsoft Corp. ........................................ 1,465,256 1,856,400
2,000 Mobius Management
Systems Inc.+ ........................................ 12,540 12,260
1,000 Pixar Inc.+ ............................................ 39,153 69,510
54,000 Yahoo! Inc.+ ........................................... 808,177 1,961,820
------------ ------------
3,124,070 4,769,092
------------ ------------
CONSUMER PRODUCTS -- 0.2%
6,000 Department 56 Inc.+ .................................... 65,655 92,400
200 eBay Inc.+ ............................................. 6,163 18,390
20,000 Mattel Inc. ............................................ 241,358 365,000
------------ ------------
313,176 475,790
------------ ------------
ELECTRONICS -- 1.6%
5,000 Intel Corp. ............................................ 154,345 138,000
3,570 Royal Philips Electronics
NV, ADR .............................................. 29,368 97,104
10,000 Samsung Electronics Co.
Ltd., GDR (b) ........................................ 1,805,500 2,064,042
22,000 Sony Corp., ADR ........................................ 840,026 837,100
6,000 Zoran Corp.+ ........................................... 93,171 110,100
------------ ------------
2,922,410 3,246,346
------------ ------------
ENTERTAINMENT -- 12.2%
60,000 Canal Plus, ADR ........................................ 10,818 80,298
1,000 Corporacion Interamericana
de Entretenimiento SA
de CV, Cl. B+ ........................................ 2,116 2,124
25,000 Crown Media Holdings
Inc., Cl. A+ ......................................... 146,640 213,000
31,622 EMI Group plc .......................................... 108,730 139,782
30,000 EMI Group plc, ADR ..................................... 394,397 265,224
50,000 Fox Entertainment Group
Inc., Cl. A+ ......................................... 1,259,670 1,335,000
220,000 Gemstar-TV Guide
International Inc.+ .................................. 1,573,597 1,056,000
70,000 GMM Grammy
Public Co. Ltd. ...................................... 55,457 26,195
481 Henley LP+ ............................................. 0 1,443
722,715 Liberty Media Corp., Cl. A+ ............................ 2,239,611 6,497,208
100,000 Shaw Brothers
(Hong Kong) Ltd. ..................................... 145,929 100,003
95,000 Six Flags Inc.+ ........................................ 609,489 689,700
70,000 SMG plc ................................................ 205,497 148,843
85,000 The Walt Disney Co. .................................... 1,972,306 2,166,650
200,000 Time Warner Inc.+ ...................................... 3,192,596 3,516,000
140,000 Viacom Inc., Cl. A ..................................... 2,104,965 5,089,000
120,000 Vivendi Universal SA, ADR+ ............................. 3,659,570 3,348,000
6,000 World Wrestling
Entertainment Inc. ................................... 76,680 76,500
------------ ------------
17,758,068 24,750,970
------------ ------------
FINANCIAL SERVICES -- 0.2%
8,000 H&R Block Inc. ......................................... 162,450 381,440
------------ ------------
HOTELS AND GAMING -- 6.8%
8,000 Aztar Corp.+ ........................................... 40,900 224,000
11,000 Boca Resorts Inc., Cl. A+ .............................. 145,590 218,020
30,000 Caesars Entertainment Inc.+ ............................ 248,132 450,000
8,000 Churchill Downs Inc. ................................... 193,280 325,600
180,000 Gaylord Entertainment Co.+ ............................. 4,625,330 5,650,200
5,000 Greek Organization of
Football Prognostics ................................. 54,100 94,412
16,000 GTECH Holdings Corp. ................................... 150,844 740,960
740,000 Hilton Group plc ....................................... 2,809,249 3,703,890
55,000 Magna Entertainment Corp.,
Cl. A+ ............................................... 358,030 324,500
36,000 MGM Mirage+ ............................................ 1,045,677 1,689,840
6,000 Starwood Hotels & Resorts
Worldwide Inc. ....................................... 185,708 269,100
------------ ------------
9,856,840 13,690,522
------------ ------------
PUBLISHING -- 14.5%
20,000 Arnoldo Mondadori
Editore SpA .......................................... 63,827 189,310
100,000 Belo Corp., Cl. A ...................................... 1,556,990 2,685,000
1,000 Dow Jones & Co. Inc. ................................... 46,722 45,100
20,000 EMAP plc ............................................... 207,970 268,398
12,000 Gannett Co. Inc. ....................................... 644,658 1,018,200
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
PUBLISHING (CONTINUED)
2,833 Golden Books Family
Entertainment Inc.+ .................................. $ 0 $ 9
2,000 Hollinger International Inc.,
Cl. A ................................................ 26,475 33,580
144,400 Independent News &
Media plc ............................................ 193,226 344,341
12,000 Journal Register Co.+ .................................. 193,975 240,000
15,000 Knight-Ridder Inc. ..................................... 659,380 1,080,000
50,000 Lee Enterprises Inc. ................................... 1,107,924 2,400,500
19,000 McClatchy Co., Cl. A ................................... 517,138 1,332,850
20,000 McGraw-Hill
Companies Inc. ....................................... 848,370 1,531,400
23,000 Media General Inc., Cl. A .............................. 1,038,401 1,477,060
27,000 Meredith Corp. ......................................... 636,668 1,483,920
100,000 Nation Multimedia Group ................................ 84,677 38,645
100,000 New Straits Times
Press Berhad+ ........................................ 296,714 102,105
20,000 News Corp. Ltd., ADR ................................... 396,739 708,400
150,000 Oriental Press Group Ltd. .............................. 46,315 53,847
179,800 Penton Media Inc.+ ..................................... 1,157,983 73,718
10,000 Playboy Enterprises Inc.,
Cl. A+ ............................................... 97,125 111,400
974,000 Post Publishing Co. Ltd. ............................... 47,100 135,791
200,000 PRIMEDIA Inc.+ ......................................... 980,335 556,000
47,000 Pulitzer Inc. .......................................... 1,529,619 2,298,300
90,000 Reader's Digest
Association Inc. ..................................... 1,506,323 1,439,100
1,000 Scholastic Corp.+ ...................................... 16,500 29,950
251,520 SCMP Group Ltd. ........................................ 181,457 99,966
33,000 Scripps (E.W.) Co., Cl. A .............................. 2,947,098 3,465,000
252,671 Singapore Press
Holdings Ltd. ........................................ 742,032 610,242
300 SPIR Communication ..................................... 23,329 47,668
15,000 Telegraaf Holdingsmij - CVA ............................ 285,271 334,882
45,000 Thomas Nelson Inc. ..................................... 533,873 1,023,300
84,000 Tribune Co. ............................................ 3,528,623 3,825,360
15,000 United Business
Media plc, ADR ....................................... 123,285 123,750
800 Wiley (John) & Sons Inc.,
Cl. B ................................................ 5,693 25,920
4,000 Wolters Kluwer NV ...................................... 90,625 72,610
------------ ------------
22,362,440 29,305,622
------------ ------------
TOTAL COPYRIGHT/
CREATIVITY
COMPANIES ............................................. 59,419,084 77,638,230
------------ ------------
DISTRIBUTION COMPANIES -- 50.5%
BROADCASTING -- 11.3%
1,560 Asahi Broadcasting Corp. ............................... 62,912 103,080
18,000 CanWest Global
Communications Corp.+ ................................ 156,992 139,950
18,000 CanWest Global
Communications Corp.,
Sub-Voting+ .......................................... 92,011 140,697
6,400 Chubu-Nippon
Broadcasting Co., Ltd. ............................... 46,375 78,009
5,000 Clear Channel
Communications Inc. .................................. 216,657 184,750
8,333 Corus Entertainment Inc.,
Cl. B ................................................ 33,927 161,284
9,000 Cox Radio Inc., Cl. A+ ................................. 55,500 156,420
1,000 Emmis Communications
Corp., Cl. A+ ........................................ 10,489 20,980
30,020 Fisher Communications Inc.+ ............................ 1,574,095 1,510,907
228 Fuji Television Network Inc. ........................... 526,693 522,385
75,000 Granite Broadcasting Corp.+ ............................ 421,275 52,500
100,000 Gray Television Inc. ................................... 1,295,437 1,389,000
10,000 Gray Television Inc., Cl. A ............................ 121,313 125,000
10,000 Grupo Radio Centro,
SA de CV, ADR ........................................ 46,871 59,400
30,000 Hearst-Argyle
Television Inc. ...................................... 302,404 773,400
4,550 Lagardere SCA .......................................... 100,163 284,261
151,000 Liberty Corp. .......................................... 6,950,356 7,089,450
29,000 Lin TV Corp., Cl. A+ ................................... 649,478 614,800
5,140 Media Prima+ (c) ....................................... 0 0
4,000 Metropole TV M6 SA ..................................... 35,208 112,759
1,200 Nippon Broadcasting
System Inc. .......................................... 29,276 60,597
7,000 Nippon Television
Network Corp. ........................................ 1,078,903 1,148,330
4,650 NRJ Group .............................................. 22,694 101,833
1,000 NTN Communications Inc.+ ............................... 862 3,140
120,000 Paxson Communications
Corp.+ ............................................... 861,225 390,000
500 Radio One Inc., Cl. A+ ................................. 5,510 8,055
1,000 Radio One Inc., Cl. D+ ................................. 11,428 16,010
1,500 RTL Group (Brussels) ................................... 76,363 86,686
3,500 RTL Group (New York) ................................... 113,838 204,865
1,906 SAGA Communications Inc.,
Cl. A+ ............................................... 9,709 34,784
70,000 Salem Communications
Corp., Cl. A+ ........................................ 1,060,175 1,899,100
2,000 SBS Broadcasting SA+ ................................... 42,022 61,420
75,000 Sinclair Broadcast Group
Inc., Cl. A .......................................... 827,448 770,250
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
BROADCASTING (CONTINUED)
25,000 Societe Television
Francaise 1 .......................................... $ 249,649 $ 787,476
5,000 Spanish Broadcasting
System Inc., Cl. A+ .................................. 43,950 46,550
50,000 Television Broadcasts Ltd. ............................. 187,673 214,108
110,000 Tokyo Broadcasting
System Inc. .......................................... 1,662,133 1,935,573
258 TV Asahi Corp. ......................................... 434,628 487,082
15,000 TV Azteca, SA de CV .................................... 84,538 129,600
26,000 Ulster Television plc .................................. 105,595 198,506
61,400 Young Broadcasting Inc.,
Cl. A+ ............................................... 1,689,545 807,410
------------ ------------
21,295,320 22,910,407
------------ ------------
BUSINESS SERVICES -- 0.7%
15,000 Carlisle Holdings Ltd.+ ................................ 78,754 98,850
40,000 Cendant Corp. .......................................... 456,338 979,200
500 CheckFree Corp.+ ....................................... 5,520 15,000
1,000 Convergys Corp.+ ....................................... 17,738 15,400
500 Dun and Bradstreet Corp.+ .............................. 6,320 26,955
8,000 Interactive Data Corp.+ ................................ 52,250 139,360
1,000 Moody's Corp. .......................................... 20,012 64,660
2,500 Traffix Inc. ........................................... 12,500 16,450
------------ ------------
649,432 1,355,875
------------ ------------
CABLE AND SATELLITE -- 4.1%
16,578 Austar United
Communications Ltd.+ ................................. 22,427 9,470
200,000 Cablevision Systems Corp.,
Cl. A+ ............................................... 3,179,545 3,930,000
50,000 Charter Communications
Inc., Cl. A+ ......................................... 103,842 196,000
37,350 Comcast Corp., Cl. A+ .................................. 1,104,551 1,046,920
7,000 Comcast Corp., Cl. A,
Special+ ............................................. 53,073 193,270
36,135 Liberty Media International
Inc., Cl. A+ ......................................... 458,709 1,340,608
15,000 Mediacom Communications
Corp., Cl. A+ ........................................ 126,903 117,300
39,000 Shaw Communications Inc.,
Cl. B ................................................ 105,571 650,703
11,000 Shaw Communications Inc.,
Cl. B, Non-Voting .................................... 103,451 184,910
22,680 Telewest Communications
plc+ ................................................. 37,551 362
89,730 UnitedGlobalCom Inc.,
Cl. A+ ............................................... 530,024 651,440
------------ ------------
5,825,647 8,320,983
------------ ------------
CONSUMER SERVICES -- 1.7%
4,000 Bowlin Travel Centers Inc.+ ............................ 3,022 6,400
112,400 InterActiveCorp.+ ...................................... 2,658,200 3,387,736
2,000 Martha Stewart Living
Omnimedia Inc., Cl. A+ ............................... 16,500 18,000
4,000 TiVo Inc.+ ............................................. 27,943 28,360
------------ ------------
2,705,665 3,440,496
------------ ------------
DIVERSIFIED INDUSTRIAL -- 1.6%
50,000 Bouygues SA ............................................ 1,426,440 1,674,108
50,000 General Electric Co. ................................... 1,560,750 1,620,000
7,700 Hutchison Whampoa Ltd. ................................. 71,267 52,569
7,908 Malaysian Resources Corp.
Berhad+ .............................................. 41,566 1,488
------------ ------------
3,100,023 3,348,165
------------ ------------
ENERGY AND UTILITIES -- 0.3%
44,000 El Paso Electric Co.+ .................................. 351,452 679,360
------------ ------------
ENTERTAINMENT -- 3.9%
6,000 AMC Entertainment Inc.+ ................................ 11,737 92,220
5,000 Blockbuster Inc., Cl. A ................................ 52,438 75,900
3,150 British Sky Broadcasting
Group plc, ADR ....................................... 56,080 143,357
100,000 GC Companies Inc.+ ..................................... 241,092 55,000
150,000 Grupo Televisa SA, ADR ................................. 5,084,850 6,790,500
68,747 ITV plc ................................................ 143,456 143,997
4,587 ITV plc, Cv.+ .......................................... 4,538 5,157
32,730 Metro-Goldwyn-Mayer Inc.+ .............................. 266,262 396,033
17,000 Regal Entertainment Group,
Cl. A ................................................ 323,000 307,700
------------ ------------
6,183,453 8,009,864
------------ ------------
EQUIPMENT -- 2.3%
11,450 American Tower Corp.,
Cl. A+ ............................................... 134,266 174,040
1,000 Amphenol Corp., Cl. A+ ................................. 7,794 33,320
35,000 Andrew Corp.+ .......................................... 141,088 700,350
416 Avaya Inc.+ ............................................ 9,761 6,569
2,000 CommScope Inc.+ ........................................ 29,407 42,900
90,000 Corning Inc.+ .......................................... 825,299 1,175,400
3,000 Furukawa Electric Co. Ltd.+ ............................ 22,588 12,812
3,000 L-3 Communications
Holdings Inc. ........................................ 33,000 200,400
80,000 Lucent Technologies Inc.+ .............................. 486,490 302,400
60,000 Motorola Inc. .......................................... 748,758 1,095,000
30,000 Nortel Networks Corp.+ ................................. 140,250 149,700
6,000 Qualcomm Inc. .......................................... 31,219 437,880
6,000 Scientific-Atlanta Inc. ................................ 50,804 207,000
20,000 Sycamore Networks Inc.+ ................................ 63,894 84,600
------------ ------------
2,724,618 4,622,371
------------ ------------
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
FOOD AND BEVERAGE -- 0.1%
30,000 Allied Domecq plc ...................................... $ 183,988 $ 255,975
5,282 Compass Group plc ...................................... 37,648 32,233
------------ ------------
221,636 288,208
------------ ------------
HEALTH CARE -- 0.0%
200 Trestle Holdings Inc.+ ................................. 2,500 700
------------ ------------
SATELLITE -- 2.0%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR ................................... 5,693 5,055
80,000 DIRECTV Group Inc.+ .................................... 1,347,414 1,368,000
28,000 EchoStar Communications
Corp., Cl. A+ ........................................ 91,970 861,000
10,000 Lockheed Martin Corp. .................................. 278,625 520,800
3,000 Loral Space &
Communications Ltd.+ ................................. 510 435
20,000 PanAmSat Corp.+ ........................................ 299,008 464,400
25,000 Pegasus Communications
Corp., Cl. A+ ........................................ 404,943 611,500
6,000 PT Indosat Tbk, ADR .................................... 58,079 127,200
30 SKY Perfect
Communications Inc. .................................. 15,472 34,642
------------ ------------
2,501,714 3,993,032
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.2%
30,000 AT&T Corp. ............................................. 890,847 438,900
1,000 Embratel Participacoes
SA, ADR .............................................. 4,150 13,830
35,000 Philippine Long Distance
Telephone Co., ADR+ .................................. 597,989 730,100
65,000 Sprint Corp. ........................................... 1,136,075 1,144,000
1,000 Startec Global
Communications Corp.+ ................................ 4,645 5
1,666 Talk America Holdings Inc.+ ............................ 2,529 12,778
------------ ------------
2,636,235 2,339,613
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 5.0%
10,000 BT Group plc, ADR ...................................... 428,060 366,000
36,000 Cable & Wireless plc, ADR+ ............................. 606,777 255,240
5,000 China Telecom Corp.
Ltd., ADR ............................................ 126,250 176,450
5,000 China Unicom Ltd., ADR ................................. 38,450 39,500
40,000 Compania de
Telecomunicaciones de
Chile SA, ADR ........................................ 665,851 487,600
162,000 Deutsche Telekom
AG, ADR+ ............................................. 2,279,995 2,869,020
50,000 Elisa Corp.+ ........................................... 527,900 669,157
3,000 France Telecom SA, ADR ................................. 48,120 78,840
3,305 Hellenic Telecommunications
Organization SA ...................................... 39,578 42,945
500 Magyar Tavkozlesi Rt, ADR .............................. 9,650 10,155
20 Nippon Telegraph &
Telephone Corp. ...................................... 123,433 106,860
4,320 PT Telekomunikasi
Indonesia, ADR ....................................... 18,512 67,176
6,000 Rostelecom, ADR ........................................ 41,408 77,520
45,000 Swisscom AG, ADR ....................................... 1,217,835 1,494,900
2,000 Telecom Corp. of New
Zealand Ltd., ADR .................................... 31,000 59,600
58,000 Telefonica SA, ADR ..................................... 1,382,739 2,588,540
19,000 Telefonos de Mexico SA de
CV, Cl. L, ADR ....................................... 177,884 632,130
18,172 TeliaSonera AB ......................................... 51,070 76,953
2,400 Telstra Corp. Ltd., ADR ................................ 30,324 42,432
------------ ------------
7,844,836 10,141,018
------------ ------------
TELECOMMUNICATIONS: REGIONAL -- 7.0%
4,266 Aliant Inc. ............................................ 39,187 87,722
6,000 Allegiance Telecom Inc.+ ............................... 28,659 28
7,000 ALLTEL Corp. ........................................... 372,121 354,340
9,557 ATX Communications Inc.+ ............................... 24,550 573
40,000 BCE Inc. ............................................... 839,129 801,600
4,000 Brasil Telecom Participacoes
SA, ADR .............................................. 231,474 122,800
47,000 CenturyTel Inc. ........................................ 1,440,777 1,411,880
2,000 Choice One
Communications Inc.+ ................................. 700 420
125,000 Cincinnati Bell Inc.+ .................................. 1,055,808 555,000
143,000 Citizens Communications
Co.+ ................................................. 1,663,753 1,730,300
50,000 Commonwealth Telephone
Enterprises Inc.+ .................................... 1,136,673 2,238,500
3,000 Metromedia International
Group Inc.+ .......................................... 345 1,260
350,646 Qwest Communications
International Inc.+ .................................. 2,051,890 1,258,819
120,345 Rogers Communications Inc.,
Cl. B, New York ...................................... 1,077,724 2,181,855
9,655 Rogers Communications Inc.,
Cl. B, Toronto ....................................... 148,207 173,909
6,000 SBC Communications Inc. ................................ 145,321 145,500
18,432 Tele Norte Leste
Participacoes SA, ADR ................................ 252,380 234,639
10,000 Telecom Argentina Stet
France Telecom SA, ADR+ .............................. 26,440 90,400
45,000 TELUS Corp. ............................................ 810,821 732,016
15,000 TELUS Corp., Non-Voting ................................ 347,478 225,322
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS: REGIONAL (CONTINUED)
4,000 Time Warner Telecom Inc.,
Cl. A+ ............................................... $ 25,000 $ 16,760
50,000 Verizon Communications Inc. ............................ 1,934,890 1,809,500
------------ ------------
13,653,327 14,173,143
------------ ------------
WIRELESS COMMUNICATIONS -- 9.3%
35,000 America Movil SA de CV,
Cl. L, ADR ........................................... 537,115 1,272,950
250,000 AT&T Wireless
Services Inc.+ ....................................... 3,330,833 3,580,000
240,000 Jasmine International
Public Co. Ltd.+ (c) ................................. 5,040 4,931
80,000 Leap Wireless
International Inc.+ .................................. 27,600 1,440
29,600 mm02 plc, ADR+ ......................................... 264,820 497,280
500 NTT DoCoMo Inc. ........................................ 762,806 893,553
31,500 Price Communications Corp.+ ............................ 293,906 464,940
80,000 Rogers Wireless
Communications Inc.,
Cl. B+ ............................................... 1,042,658 2,164,000
10,800 Rural Cellular Corp., Cl. A+ ........................... 22,788 95,796
37,000 SK Telecom Co. Ltd., ADR ............................... 828,800 776,630
1,650 Tele Celular Sul
Participacoes SA, ADR ................................ 26,379 21,285
5,500 Tele Centro Oeste Celular
Participacoes SA, ADR ................................ 16,487 50,435
330 Tele Leste Celular
Participacoes SA, ADR+ ............................... 8,827 4,349
825 Tele Nordeste Celular
Participacoes SA, ADR ................................ 12,175 18,975
330 Tele Norte Celular
Participacoes SA, ADR ................................ 5,098 2,986
350,000 Telecom Italia Mobile SpA .............................. 1,680,518 1,984,354
825 Telemig Celular
Participacoes SA, ADR ................................ 23,843 24,338
68,000 Telephone & Data
Systems Inc. ......................................... 4,836,192 4,841,600
6,600 Telesp Celular
Participacoes SA, ADR+ ............................... 211,036 52,008
15,000 Total Access
Communications plc+ .................................. 66,339 38,850
17,500 United States Cellular Corp.+ .......................... 564,709 674,625
6,000 Vimpel-Communications,
ADR+ ................................................. 103,613 578,700
12,650 Vodafone Group plc, ADR ................................ 203,637 279,565
16,000 Western Wireless Corp.,
Cl. A+ ............................................... 50,272 462,560
------------ ------------
14,925,491 18,786,150
------------ ------------
TOTAL DISTRIBUTION
COMPANIES ............................................. 85,456,304 102,409,385
------------ ------------
TOTAL COMMON
STOCKS ................................................ 144,875,388 180,047,615
------------ ------------
PREFERRED STOCKS -- 4.3%
BROADCASTING -- 0.8%
1,063 Granite Broadcasting Corp.,
12.750% Pfd.+ ........................................ 439,682 597,938
100 Gray Television Inc.,
8.000% Cv. Pfd., Ser. C (c) .......................... 1,000,000 1,010,000
------------ ------------
1,439,682 1,607,938
------------ ------------
BUSINESS SERVICES -- 0.6%
10,809 Interep National Radio
Sales Inc.,
4.000% Cv. Pfd., Ser. A (c) .......................... 1,081,573 1,080,906
------------ ------------
PUBLISHING -- 1.8%
112,207 News Corp. Ltd., Pfd., ADR ............................. 2,809,502 3,689,366
------------ ------------
TELECOMMUNICATIONS: REGIONAL -- 1.1%
45,000 Citizens Communications Co.,
5.000% Cv. Pfd. ...................................... 2,161,913 2,250,000
------------ ------------
TOTAL PREFERRED
STOCKS ................................................ 7,492,670 8,628,210
------------ ------------
PRINCIPAL
AMOUNT
--------
CORPORATE BONDS -- 0.4%
BUSINESS SERVICES -- 0.4%
$ 50,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)(c) ............................. 49,458 0
Trans-Lux Corp., Sub. Deb. Cv.,
300,000 8.250%, 03/01/2012 ................................... 291,870 289,500
500,000 7.500%, 12/01/2006 ................................... 502,500 506,875
------------ ------------
843,828 796,375
------------ ------------
PUBLISHING -- 0.0%
66,560 Golden Books Family
Entertainment Inc., PIK,
10.750%, 12/31/04+ (a) ............................... 59,865 0
------------ ------------
TOTAL CORPORATE
BONDS ................................................. 903,693 796,375
------------ ------------
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2004 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
RIGHTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad
expires 07/18/08+ ................................... $ 1,353 $ 1,041
------------ ------------
PRINCIPAL
AMOUNT
--------
U.S. GOVERNMENT OBLIGATIONS -- 6.5%
$13,319,000 U.S. Treasury Bills,
0.949% to 1.116%++,
07/01/04 to 10/14/04 ................................. 13,284,522 13,276,048
------------ ------------
SHARES
--------
WARRANTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad+ .................................... 135 994
------------ ------------
BUSINESS SERVICES -- 0.0%
62,500 Interep National Radio
Sales Inc.+ .......................................... 0 0
------------ ------------
PUBLISHING -- 0.0%
25,000 Nation Multimedia Group+ ............................... 0 1,859
------------ ------------
TOTAL WARRANTS ......................................... 135 2,853
------------ ------------
TOTAL INVESTMENTS -- 100.0% ......................................... $163,229,306 202,752,142
============ ===========
OTHER ASSETS IN EXCESS OF LIABILITIES ............................... 830,381
PREFERRED STOCK
(994,100 preferred shares outstanding) ............................ (49,827,500)
------------
NET ASSETS -- COMMON STOCK
(14,197,853 common shares outstanding) ............................ $153,755,023
============
NET ASSET VALUE PER COMMON SHARE
($153,755,023 / 14,197,853 shares outstanding) ................... $ 10.83
============
MARKET
VALUE
------------
----------
For Federal tax purposes:
Aggregate cost ......................................... $166,557,761
============
Gross unrealized appreciation .......................... $ 46,293,940
Gross unrealized depreciation .......................... (10,099,559)
------------
Net unrealized appreciation ............................ $ 36,194,381
============
----------
(a) Security in default.
(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 June 30,
2004, the Rule 144A securities are considered liquid and the market value
amounted to $2,064,042 or 1.0% of total net assets.
(c) 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 June 30, 2004, the
market value of fair valued securities amounted to $2,095,837 or 1.0% of
total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
GDR - Global Depository Receipt.
PIK - Paid in Kind.
% OF
MARKET MARKET
VALUE VALUE
------ ------
GEOGRAPHIC DIVERSIFICATION
North America ............... 75.2% $152,491,572
Europe ...................... 12.5 25,301,750
Asia/Pacific ................ 4.9 9,978,055
Latin America ............... 4.3 8,737,400
Japan ....................... 3.1 6,243,365
----- ------------
Total Investments ........... 100.0% $202,752,142
===== ============
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2004 (UNAUDITED)
ASSETS:
Investments, at value (cost $163,229,306) ................. $ 202,752,142
Foreign currency, at value (cost $5,745) .................. 624
Dividends and interest receivable ......................... 291,556
Unrealized appreciation on swap contracts ................. 810,694
-------------
TOTAL ASSETS .............................................. 203,855,016
-------------
LIABILITIES:
Dividends payable ......................................... 13,421
Payable for Trust shares acquired ......................... 6,349
Unrealized depreciation on forward foreign
exchange contracts ...................................... 50
Payable for investment advisory fees ...................... 125,766
Interest payable on swap contract ......................... 46,200
Payable for shareholder communications fees ............... 23,363
Payable for payroll expense ............................... 8,770
Payable for audit and legal fees .......................... 41,329
Other accrued expenses and liabilities .................... 7,245
-------------
TOTAL LIABILITIES ......................................... 272,493
-------------
PREFERRED STOCK:
Series B Cumulative Preferred Stock (6.00%, $25
liquidation value, $0.001 par value, 1,000,000
shares authorized with 993,100 shares issued
and outstanding) ........................................ 24,827,500
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 ..................................... 49,827,500
-------------
NET ASSETS ATTRIBUTABLE TO COMMON
STOCK SHAREHOLDERS ...................................... $ 153,755,023
=============
NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS CONSIST OF:
Capital stock, at par value ............................... $ 14,198
Additional paid-in capital ................................ 117,991,203
Accumulated net investment income ......................... 772,361
Accumulated net realized loss on investments, swap
contracts and foreign currency transactions ............. (5,355,732)
Net unrealized appreciation on investments, swap
contracts and foreign currency transactions ............. 40,332,993
-------------
TOTAL NET ASSETS .......................................... $ 153,755,023
=============
NET ASSET VALUE PER COMMON SHARE
($153,755,023 / 14,197,853 shares outstanding;
200,000,000 shares authorized of $0.001 par value) ........ $10.83
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $72,401) ............... $ 2,220,032
Interest .................................................. 91,820
-------------
TOTAL INVESTMENT INCOME ................................... 2,311,852
-------------
EXPENSES:
Investment advisory fees .................................. 740,928
Shareholder communications expenses ....................... 89,744
Payroll ................................................... 72,935
Shareholder services fees ................................. 37,332
Custodian fees ............................................ 30,609
Directors' fees ........................................... 30,588
Legal and audit fees ...................................... 28,821
Accounting fees ........................................... 17,400
Miscellaneous expenses .................................... 79,505
-------------
TOTAL EXPENSES ............................................ 1,127,862
-------------
NET INVESTMENT INCOME ..................................... 1,183,990
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
SWAP CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments .......................... 822,927
Net realized loss on foreign currency transactions ........ (5,132)
Net realized loss on swap contracts ....................... (326,325)
-------------
Net realized gain on investments, swap contracts
and foreign currency transactions ....................... 491,470
-------------
Net change in unrealized appreciation/depreciation on
investments, swap contracts and foreign
currency transactions ................................... 2,955,355
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
SWAP CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS ............................................ 3,446,825
-------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................................... 4,630,815
-------------
Total Distributions to Preferred Stock Shareholders ....... (882,332)
-------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON
STOCK SHAREHOLDERS RESULTING FROM OPERATIONS ............ $ 3,748,483
=============
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
SIX MONTHS ENDED
JUNE 30, 2004 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2003
---------------- -----------------
OPERATIONS:
Net investment income (loss) ........................................................ $ 1,183,990 $ (451,971)*
Net realized gain on investments and foreign currency transactions .................. 491,470 1,626,336*
Net change in unrealized appreciation/depreciation on investments, swap contracts
and foreign currency transactions ................................................. 2,955,355 43,268,251
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................ 4,630,815 44,442,616
------------- -------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ............................................................... (882,332) --
Net realized long-term gains on investments and foreign currency transactions ....... -- (1,815,651)
------------- -------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS ................................. (882,332) (1,815,651)
------------- -------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS
RESULTING FROM OPERATIONS ......................................................... 3,748,483 42,626,965
------------- -------------
TRUST SHARE TRANSACTIONS:
Net decrease from repurchase of common shares ....................................... (196,583) (522,334)
Net increase from repurchase of preferred shares .................................... 8,254 --
Offering costs for preferred shares charged to paid-in capital ...................... -- (1,442,569)
------------- -------------
NET DECREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ............................ (188,329) (1,964,903)
------------- -------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS ................ 3,560,154 40,662,062
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS:
Beginning of period ................................................................. 150,194,869 109,532,807
------------- -------------
End of period (including undistributed net investment income of
$772,361 and $0, respectively) .................................................... $ 153,755,023 $ 150,194,869
============= =============
----------
* As a result of recent changes in generally accepted accounting principles,
the Multimedia Trust 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 gain by $470,703.
See accompanying notes to financial statements.
10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Multimedia Trust Inc. ("Multimedia Trust")
is a closed-end, non-diversified management investment company organized as a
Maryland corporation on March 31, 1994 and registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), whose primary objective is
long-term growth of capital with income as a secondary objective. The Multimedia
Trust had no operations prior to November 15, 1994, other than the sale of
10,000 shares of common stock for $100,000 to The Gabelli Equity Trust Inc. (the
"Equity Trust"). Investment operations commenced on November 15, 1994.
Effective August 1, 2002, the Multimedia Trust modified its
non-fundamental investment policy to increase, from 65% to 80%, the portion of
its assets that it will invest, under normal market conditions, in common stock
and other securities, including convertible securities, preferred stock, options
and warrants of companies in the telecommunications, media, publishing and
entertainment industries (the "80% Policy").
The 80% Policy may be changed without shareholder approval. However, the
Multimedia Trust has adopted a policy to provide shareholders with at least 60
days' notice of 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 of Directors (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, 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 official 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.
11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
REPURCHASE AGREEMENTS. The Multimedia Trust may enter into repurchase
agreements with primary government securities dealers recognized by the Federal
Reserve Bank of New York, 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 of Directors. Under the terms of a typical
repurchase agreement, the Multimedia Trust takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Multimedia Trust to resell, the obligation at an agreed-upon price and time,
thereby determining the yield during the Multimedia Trust's holding period. The
Multimedia Trust 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 Multimedia Trust in each agreement. The Multimedia
Trust 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 Multimedia
Trust may be delayed or limited.
SWAP AGREEMENTS. The Multimedia Trust 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 Multimedia Trust 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
Multimedia Trust periodically a variable rate payment that is intended to
approximate the Multimedia Trust's variable rate payment obligation on the
Series C Preferred Stock. In an interest rate cap, the Multimedia Trust 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 Multimedia Trust 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 Multimedia Trust's portfolio securities at that
point in time, such a default could negatively affect the Multimedia Trust'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 Multimedia Trust 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 Multimedia Trust's ability to make dividend payments on
the Series C Preferred Stock.
The Trust has entered into two interest rate swap agreements with Citibank
N.A. Under the agreement the Trust 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 June 30, 2004 are as follows:
NOTIONAL FLOATING RATE* TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE APPRECIATION
-------- ---------- -------------------- ----------- ------------
$10,000,000 4.32% 1.13% April 4, 2013 $447,015
$15,000,000 3.27% 1.13% April 4, 2008 $363,679
----------
*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 agreements, previously included within
interest income, as a component of realized gain (loss) in the statement of
operations. For consistency, similar reclassifications
12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
have been made to amounts appearing in the previous year's statement of changes
in net assets and the per share amounts in prior year financial highlights.
Prior year net investment income ratios in the financial highlights have also
been modified accordingly. This reclassification increased (decreased) net
investment income and increased (decreased) net realized gains for the year(s)
ended December 31, 2003 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.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Multimedia Trust 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
Multimedia Trust 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 Multimedia Trust'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 Multimedia Trust could be exposed to risks if the counterparties
to the contracts are unable to meet the terms of their contracts.
FOREIGN CURRENCY TRANSACTIONS. The books and records of the Multimedia
Trust 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 transactions. 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 Multimedia Trust 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.
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 shareholders
are recorded on the ex-dividend date. Distributions to shareholders of the
Multimedia Trust'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. Income
distributions and capital gain distributions are determined in accordance with
Federal income tax regulations which may differ from accounting principles
generally accepted in the United States.
For the year ended December 31, 2003, reclassifications were made to
increase accumulated net investment loss for $922,674 and to increase
accumulated net realized loss on investments and foreign currency transactions
for $632,926, with an offsetting adjustment to additional paid-in capital.
13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The tax characteristics of distributions paid during the fiscal year ended
December 31, 2003 was as follows:
YEAR ENDED
DECEMBER 31, 2003
-----------------
PREFERRED
-----------------
DISTRIBUTIONS PAID FROM:
Net long term capital gain ......................................................... $ 1,815,651
------------
Total distributions paid ........................................................... $ 1,815,651
============
PROVISION FOR INCOME TAXES. The Trust intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended the "Code". It is the Fund's policy to comply with the
requirements of the 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, 2003, the components of accumulated earnings/(losses)
on a tax basis were as follows:
Net unrealized appreciation on investments ......................................... $ 32,005,552
Net unrealized appreciation on foreign currency transactions ....................... 21,629
Other - dividends payable .......................................................... (26,042)
------------
$ 32,001,139
============
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Multimedia Trust has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Multimedia Trust will pay the Adviser on the
first business day of each month a fee for the previous month equal on an annual
basis to 1.00% of the value of the Multimedia Trust's average weekly net assets
including the liquidation value of preferred stock. In accordance with the
Advisory Agreement, the Adviser provides a continuous investment program for the
Multimedia Trust's portfolio and oversees the administration of all aspects of
the Multimedia Trust's business and affairs. The Adviser has agreed to reduce
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 Multimedia Trust, 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 Trust'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 six months ended June 30, 2004, the
Multimedia Trust'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 not earned on these assets.
During the six months ended June 30, 2004, Gabelli & Company, Inc.
received $16,876 in brokerage commissions as a result of executing agency
transactions in portfolio securities on behalf of the Multimedia Trust.
The cost of calculating the Trust's net asset value per share is a Trust
expense pursuant to the Investment Advisory Agreement between the Trust and the
Adviser. During the six months ended June 30, 2004, the Multimedia Trust
reimbursed the Adviser $17,400 in connection with the cost of computing the
Trust's net asset value.
4. PORTFOLIO SECURITIES. Cost of purchases and proceeds from sales of
securities, other than short-term securities, for the six months ended June 30,
2004 aggregated $7,850,674 and $3,547,086 respectively.
5. CAPITAL. The charter permits the Multimedia Trust to issue 196,750,000 shares
of common stock (par value $0.001). The Board of Directors of the Multimedia
Trust has authorized the repurchase of up to 1,000,000 shares of the Multimedia
14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Trust's outstanding common stock. During the six months ended June 30, 2004, the
Multimedia Trust repurchased 21,100 shares of its common stock in the open
market at a cost of $196,583 and an average discount of approximately 14.68%
from its net asset value. During the year ended December 31, 2003, the
Multimedia Trust repurchased 66,000 shares of its common stock in the open
market at a cost of $522,334 and an average discount of approximately 14.57%
from its net asset value. All shares of common stock repurchased have been
retired.
Transactions in capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2004 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2003
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
--------- --------- --------- ---------
Net decrease from repurchase of
common shares ................................ (21,100) $(196,583) (66,000) $(522,334)
------- --------- ------- ---------
Net decrease ................................... (21,100) $(196,583) (66,000) $(522,334)
======= ========= ======= =========
The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to 2,000,000 shares of $0.001 par value Cumulative Preferred Stock. The
Cumulative Preferred Stock is senior to the common stock and results in the
financial leveraging of the common stock. Such leveraging tends to magnify both
the risks and opportunities to Common Shareholders. Dividends on shares of the
Cumulative Preferred Stock are cumulative. The Multimedia Trust is required to
meet certain asset coverage tests as required by the 1940 Act and by the shares'
Articles Supplementary with respect to the Cumulative Preferred Stock. If the
Multimedia Trust fails to meet these requirements and does not correct such
failure, the Multimedia Trust may be required to redeem, in part or in full, the
6.00% 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 requirements could restrict the Multimedia Trust's ability to
pay dividends to Common Shareholders and could lead to sales of portfolio
securities at inopportune times.
The Multimedia Trust, as authorized by the Board of Directors, redeemed
the remaining 75% (926,025 shares) of its outstanding 7.92% Cumulative Preferred
Stock. The redemption date was April 2, 2003 and the redemption price was
$25.033 per Preferred Share, which consisted of $25.00 per share of Preferred
Stock (the liquidation value), plus accumulated and unpaid dividends through the
redemption date of $0.033 per Preferred Share. The Preferred Shares were
callable at any time at the liquidation value of $25.00 per share plus accrued
dividends following the expiration of the five-year call protection on June 1,
2002.
On March 31, 2003, the Multimedia Trust received net proceeds of
$24,009,966 (after underwriting discounts of $787,500 and offering expenses of
$202,534) from the public offering of 1,000,000 shares of 6.00% Series B
Cumulative Preferred Stock. Commencing April 2, 2008 and thereafter, the
Multimedia Trust, at its option, may redeem the 6.00% Series B Cumulative
Preferred Stock in whole or in part at the liquidation value price. The Board of
Directors has authorized the repurchase of the 6.00% Series B Cumulative
Preferred Stock in the open market at prices less than the $25 liquidation value
of the Cumulative Preferred Stock. During the six months ended June 30, 2004,
the Multimedia Trust repurchased 6,900 shares of 6.00% Series B Cumulative
Preferred Stock in the open market at a cost of $164,246 and an average discount
of approximately 4.86% from its liquidation value of $25.00 per share. All
repurchased shares of 6.00% Series B Cumulative Preferred Stock have been
retired. At June 30, 2004, 993,100 shares of the 6.00% Series B Cumulative
Preferred Stock were outstanding and accrued dividends amounted to $12,414.
15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
On March 31, 2003, the Multimedia Trust received net proceeds of
$24,547,465 (after underwriting discounts of $250,000 and offering expenses of
$202,535) 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 1.45% for the six months ended June 30, 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 Multimedia Trust, at its option,
may redeem the Series C Auction Rate Cumulative Preferred Stock in whole or in
part at the liquidation value price at any time. During the six months ended
June 30, 2004, the Multimedia Trust did not repurchase any shares of Series C
Auction Rate Cumulative Preferred Stock. At June 30, 2004, 1,000 shares of the
Series C Auction Rate Cumulative Preferred Stock were outstanding with an
annualized dividend rate of 1.45% per share and accrued dividends amounted to
$1,007.
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 Multimedia Trust's
subclassification as a closed-end investment company or changes in its
fundamental investment restrictions.
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. INDUSTRY CONCENTRATION. Because the Multimedia Trust primarily invests in
common stocks and other securities of foreign and domestic companies in the
telecommunications, media, publishing and entertainment industries, its
portfolio may be subject to greater risk and market fluctuations than a
portfolio of securities representing a broad range of investments.
7. OTHER MATTERS. On October 7, 2003, the Trust's Adviser received a subpoena
from the Attorney General of the State of New York requesting information on
mutual fund shares trading practices. The Adviser has also received requests for
information from the SEC regarding mutual fund trading practices and valuation
of portfolio securities. The Adviser has responded to the requests. The Trust
does not believe that these matters will have a material adverse effect on the
Trust's financial position or the results of its operations.
8. INDEMNIFICATIONS. The Multimedia Trust enters into contracts that contain a
variety of indemnifications. The Multimedia Trust's maximum exposure under these
arrangements is unknown. However, the Multimedia Trust has not had prior claims
or losses pursuant to these contracts and expects the risk of loss to be remote.
16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SELECTED DATA FOR A MULTIMEDIA TRUST COMMON SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
SHARE OUTSTANDING THROUGHOUT EACH PERIOD: JUNE 30, 2004 ------------------------------------------------------
(UNAUDITED) 2003(d) 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
OPERATING PERFORMANCE:
Net asset value, beginning of period .................... $10.56 $ 7.67 $10.52 $12.21 $19.90 $12.20
------ ------ ------ ------ ------ ------
Net investment income (loss) ............................ 0.08 (0.03) (0.00)(a) (0.02) 0.21 (0.05)
Net realized and unrealized gain (loss) on investments .. 0.25 3.14 (2.68) (1.44) (4.74) 11.54
------ ------ ------ ------ ------ ------
Total from investment operations ........................ 0.33 3.11 (2.68) (1.46) (4.53) 11.49
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ................................... (0.06) -- -- -- (0.02) --
Net realized gain on investments ........................ -- (0.13) (0.17) (0.17) (0.18) (0.23)
------ ------ ------ ------ ------ ------
Total distributions to preferred stock shareholders ..... (0.06) (0.13) (0.17) (0.17) (0.20) (0.23)
------ ------ ------ ------ ------ ------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE
TO COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS ....................................... 0.27 2.98 (2.85) (1.63) (4.73) 11.26
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income ................................... -- -- -- (0.00)(a) (0.16) --
Net realized gain on investments ........................ -- -- -- (0.06) (1.41) (3.62)
In excess of net investment income and/or net realized
gain on investments ................................... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions to common stock shareholders ........ -- -- -- (0.06) (1.57) (3.62)
------ ------ ------ ------ ------ ------
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net asset value from common
stock share transactions .............................. 0.00(a) 0.01 0.00(a) -- (1.35) 0.06
Offering expenses charged to paid-in capital ............ -- (0.10) -- -- (0.04) --
------ ------ ------ ------ ------ ------
Total capital share transactions ........................ 0.00(a) (0.09) 0.00(a) -- (1.39) 0.06
------ ------ ------ ------ ------ ------
NET ASSET VALUE ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS, END OF PERIOD ........................... $10.83 $10.56 $ 7.67 $10.52 $12.21 $19.90
====== ====== ====== ====== ====== ======
Net asset value total return+ ........................... 2.6% 37.7% (27.1)% (13.3)% (24.9)% 96.6%
====== ====== ====== ====== ====== ======
Market value, end of period ............................. $ 9.16 $ 9.07 $ 6.40 $ 9.01 $10.31 $18.75
====== ====== ====== ====== ====== ======
Total investment return++ ............................... 0.1% 41.7% (29.0)% (12.1)% (35.0)% 106.6%
====== ====== ====== ====== ====== ======
----------
+ Based on net asset value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. 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) Annualized.
See accompanying notes to financial statements.
17
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2004 --------------------------------------------------------
(UNAUDITED) 2003(d) 2002 2001 2000 1999
----------- -------- -------- -------- -------- --------
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation value of preferred
shares, end of period (in 000's) .................... $203,583 $200,195 $132,683 $181,539 $205,893 $246,488
Net assets attributable to common shares,
end of period (in 000's) ............................ $153,755 $150,195 $109,533 $150,672 $175,026 $215,238
Ratio of net investment income (loss) to average
net assets attributable to common shares ............ 1.53%(e) (0.36)% (0.04)% (0.18)% 1.36% (0.30)%
Ratio of operating expenses to average net assets
attributable to common shares ....................... 1.46%(e) 1.82% 1.46% 1.34% 1.46% 1.56%
Ratio of operating expenses to average total net assets
including liquidation value of preferred shares ..... 1.10%(e) 1.35% 1.18% 1.13% 1.27% 1.32%
Portfolio turnover rate ............................... 2% 10.9% 16.6% 25.4% 29.9% 43.1%
PREFERRED STOCK:
7.92% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... -- -- $ 23,151 $ 30,868 $ 30,868 $ 31,250
Total shares outstanding (in 000's) ................... -- -- 926 1,235 1,235 1,250
Liquidation preference per share ...................... -- -- $ 25.00 $ 25.00 $ 25.00 $ 25.00
Average market value (b) .............................. -- -- $ 25.75 $ 25.50 $ 23.54 $ 25.13
Asset coverage per share .............................. -- -- $ 143.28 $ 147.03 $ 166.76 $ 197.19
6.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... $ 24,828 $ 25,000 -- -- -- --
Total shares outstanding (in 000's) ................... 993 1,000 -- -- -- --
Liquidation preference per share ...................... $ 25.00 $ 25.00 -- -- -- --
Average market value (b) .............................. $ 24.82 $ 25.28 -- -- -- --
Asset coverage per share .............................. $ 102.14 $ 100.10 -- -- -- --
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 .............................. $102,144 $100,097 -- -- -- --
ASSET COVERAGE (c) .................................... 409% 400% 573% 588% 667% 789%
----------
+ Based on net asset value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. 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) Annualized.
See accompanying notes to financial statements.
18
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF INVESTMENT OFFICER,
GABELLI ASSET MANAGEMENT INC.
Dr. Thomas E. Bratter
PRESIDENT, JOHN DEWEY ACADEMY
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR & CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
VICE PRESIDENT/MEDICAL AFFAIRS
LAWRENCE HOSPITAL CENTER
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT & TREASURER
Peter W. Latartara
VICE PRESIDENT
Steven D. LaRosa
Vice President
James E. McKee
SECRETARY
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust Company
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
COUNSEL
Willkie Farr & Gallagher LLP
STOCK EXCHANGE LISTING
Common 6.00% Preferred
------ ---------------
NYSE-Symbol: GGT GGT PrB
Shares Outstanding: 14,197,853 993,100
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity 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 "Specialized Equity 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: [email protected]
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Multimedia Trust may, from time to
time, purchase shares of its common stock in the open market when the Multimedia
Trust shares are trading at a discount of 10% or more from the net asset value
of the shares. The Multimedia Trust 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.
--------------------------------------------------------------------------------
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
=============================================================================================================================
(D) MAXIMUM NUMBER (0R
(C) TOTAL NUMBER OF SHARES APPROXIMATE DOLLAR VALUE) OF SHARES
(A) TOTAL NUMBER (B) AVERAGE (OR UNITS) PURCHASED AS PART (0R UNITS) THAT MAY YET BE
OF SHARES (OR PRICE PAID PER OF PUBLICLY ANNOUNCED PLANS PURCHASED UNDER THE PLANS OR
PERIOD UNITS) PURCHASED SHARE (OR UNIT) OR PROGRAMS PROGRAMS
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 14,218,953
01/01/04
through 01/31/04 Preferred Series B Preferred Preferred Series B - N/A Preferred Series B - 1,000,000
- N/A Series B - N/A
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 14,218,953
02/01/04
through 02/29/04 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - 1,000,000
=============================================================================================================================
Month #3 Common - N/A Common - N/A Common - N/A Common - 14,218,953
03/01/04
through 03/31/04 Preferred - N/A Preferred - N/A Preferred - N/A Preferred - 1,000,000
=============================================================================================================================
Month #4 Common - 5,000 Common - Common - 5,000 Common - 14,218,953 - 5,000 =
04/01/04 $9.8908 14,213,953
through 04/30/04 Preferred Series B Preferred Series B - 1,300
- 1,300 Preferred Preferred Series B - 1,000,000 - 1,300
Series B - = 998,700
$24.5077
=============================================================================================================================
Month #5 Common - N/A Common - N/A Common - N/A Common - 14,213,953
05/01/04
through 05/31/04 Preferred Series B Preferred Preferred Series B - 5,500 Preferred Series B - 998,700 - 5,500 =
- 5,500 Series B - 993,200
$23.6307
=============================================================================================================================
Month #6 Common - 16,100 Common - Common - 16,100 Common - 14,213,953 - 16,100 =
06/01/04 $9.1322 14,197,855
through 06/30/04 Preferred Series B Preferred Series B - 100
- 100 Preferred Preferred Series B - 993,200 - 100 =
Series B - 993,100
$24.1500
=============================================================================================================================
Total Common - 21,600 Common - $9.3120 Common - 21,600 N/A
Preferred Series B Preferred Preferred Series B - 6,900
- 6,900 Series B -
$23.8038
=============================================================================================================================
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 9. 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 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(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(a) 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 Global Multimedia Trust Inc.
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By (Signature and Title)* /s/ BRUCE N. ALPERT
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Bruce N. Alpert, Principal Executive Officer
Date September 7, 2004
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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
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Bruce N. Alpert, Principal Executive Officer and
Principal Financial Officer
Date September 7, 2004
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* Print the name and title of each signing officer under his or her signature.