<PAGE> 1
(LOGO)
1994
ANNUAL REPORT
<PAGE> 2
ANOTHER SATISFIED SHAREHOLDER...
[FIGURE]
Sent to us from six year old T.J. Connelly who lives with his parents,
Lieutenant and Mrs. Kevin T. Connelly, currently stationed with the U.S.
Military in Saudi Arabia*.
INVESTMENT OBJECTIVE: THE GABELLI GLOBAL MULTIMEDIA TRUST INC. IS A
CLOSED-END, NON-DIVERSIFIED MANAGEMENT INVESTMENT COMPANY
WHOSE PRIMARY OBJECTIVE IS LONG-TERM GROWTH OF CAPITAL,
WITH INCOME AS A SECONDARY OBJECTIVE.
* The Multimedia Trust trades on the New York Stock Exchange and as
such, shares may only be purchased in the open market at the current
market price. Shares are not issued by the Multimedia Trust except in
connection with the Multimedia Trust's Automatic Dividend Reinvestment
Plan and Voluntary Cash Purchase Plan, or by Prospectus.
THIS REPORT IS PRINTED ON RECYCLED PAPER.
<PAGE> 3
MJG Picture
The Gabelli Global Multimedia Trust Logo
To our Shareholders,
In this, our initial report to shareholders, we would like to thank
you for the confidence you have expressed in our investing abilities. The
Gabelli Global Multimedia Trust Inc. (the "Multimedia Trust") commenced
operations on November 15, 1994 with an initial net asset value of $7.50.
The Multimedia Trust began trading on the New York Stock Exchange on a
when-issued basis at $7.50 per share on October 11, 1994 under the symbol
GGT. It started trading on the NYSE on a regular way basis on November 16,
1994, with a closing price on that day of $8.00 per share.
The Multimedia Trust's net asset value closed the year at $7.51 on
December 31, 1994, an increase of 0.8% after adjusting for the initial
dividend of $0.05 per share.
WHY THE SPIN-OFF
While The Gabelli Equity Trust Inc. (the "Equity Trust") is a
non-diversified investment company, it has historically pursued a more
diversified portfolio structure than originally contemplated. This is in
large part due to measures taken by the Board of Directors to seek to
reduce or eliminate any market discount from the Equity Trust's net asset
value per share. In particular, as a consequence of the adoption of the
Equity Trust's 10% pay-out policy, we managed the Equity Trust's portfolio
to consistently achieve a return commensurate with this policy, thus
leading to greater diversification in the Equity Trust.
At the same time, we continue to be attracted to the opportunities for
long-term growth presented in the global telecommunications, media,
publishing and entertainment industries. The Multimedia Trust was created
and was spun-off from the Equity Trust in order to enable shareholders to
participate more directly in these global opportunities.
The Multimedia Trust will seek, as its primary investment objective,
long-term growth of capital by investing in common stock and other
securities of companies involved in the telecommunications, media,
publishing and entertainment industries on a global basis. Income is the
secondary objective of the Multimedia Trust.
COMMENTARY - INTERVIEW WITH MARIO GABELLI
We thought that we would share with you excerpts from Bloomberg
Personal's December 1994 interview with our Chief Investment Officer,
reprinted with permission from Bloomberg and edited by us.
[GRAPHIC]
Channel surfers rejoice! Mario Gabelli, one of the best-known
investment advisors on Wall Street, has designed a [sector] just for you:
the Interactive Couch Potato(TM)(C). [We] invest in companies such as America
Online and Blockbuster that reach people in their homes. In other words,
stocks for the era of the couch potato, defined by the NTC Mass Media
Dictionary as a "heavy user of television...plopped before the television
set like a vegetable with eyes."
Don't laugh. The silver-haired Gabelli has been trucking down the
information superhighway since it was a pair of ruts in a farmer's field.
He's been early on so many media company takeovers that supporters call
him "Super Mario" after the Nintendo game. General Cinema, to name one,
was a Gabelli pick before its 1991 merger with Harcourt Brace Jovanovich,
when the stock stood between $18 and $22; recently it was $36.
Here are his thoughts on the market, some good movies and his best
stock picks:
<PAGE> 4
BLOOMBERG PERSONAL: WHAT DOES THE TERM "INFORMATION SUPERHIGHWAY" MEAN
TO YOU?
GABELLI: It's what reaches the consumer at home. It's everything the
consumer wants for entertainment or information. Everyone has a different
need to access something. It's like a movie theater with ten screens. My
sixteen year old might be doing games, while my twenty two year old might
be on the Internet. There's no simple answer.
Q: HOW HAVE THINGS CHANGED IN COMMUNICATIONS?
GABELLI: Today we've accelerated both the content and the delivery of
that content. The content is print, film, records and everything in
between. The delivery system is both wired and wireless.
Q: COMPETITION IS FIERCE ISN'T IT?
GABELLI: Yes, but I don't think it's a game where the pizza pie is
divided into only eight slices. The pizza pie can go from eight to sixteen
slices. These companies are providing goods and services we never had
before. Filmed entertainment at the box office is now five billion. So
it's grown. On the other side of the coin, you've had Blockbuster
Entertainment Corp. (acquired by Viacom this year) come up out of nowhere.
Then you have pay-per-view television. So you have new windows using the
same software, which is film.
Q: YOU'RE SAYING IT COULD BE A WIN-WIN SITUATION?
GABELLI: Bottom line, if you deliver to the consumer what the consumer
wants at a cost that's efficient, you'll make money. If you do it
inefficiently or you're ahead of the curve, you'll lose money. Like any
highway, there are going to be potholes, there are going to be detours and
there are people who are going to be roadkill.
Q: ARE YOU SEEING A LOT OF BARGAINS IN THIS CATEGORY?
GABELLI: This is a growth area, and you're going to see real bargains.
One of the best cable companies in the world is located in Denver. It's
called United International Holdings. Then there are companies in Hong
Kong, like South China Morning Post Holdings, the English - speaking
newspaper. It's a way to participate in the whole database movement in
China. There's a company out of Jackson Hole, WY., called Data
Broadcasting Corp. But it's tough. You've got to work to find bargains in
a bull market...The world is changing dramatically. Whether it's CD - ROM
based or through the television or whatever, there's a whole new
generation of consumers who want more. The twenty two year old who repairs
a car in the year 2000 will be able to access parts on the Internet or
through her personal computer, using the modem and sitting at home. It's
the electronic catalog. Today you're seeing a very archaic form of this
kind of merchandising. It's clumsy, it's cumbersome, and it's best known
as QVC (it markets consumer products with televised shopping programs). In
five or ten years you're really going to say, "Wow was that crude," much
the way a catalog from 100 years ago now looks to us.
Q: WILL WE SEE TAKE-OVERS IN THESE INDUSTRIES?
GABELLI: There will be consolidation, particularly in some of the
small television outlet companies. Citicasters, which is the old Great
American Communications Co., recently sold network stations to New World
Communications Group. We think CBS will merge. We think there will be a
mating game among the networks in the U.S. and there will be some
consolidation in Europe. But I can't make a case that the German telephone
company, which is just being spawned by the government, will be taken
over. Or that the Italian telephone company will merge. There will be
affiliations and partnering.
Q: WHAT DO YOU THINK OF WALT DISNEY CO. RIGHT NOW?
GABELLI: We are nibbling at Disney. We think (chief executive officer)
Michael Eisner has done a good job. Eisner plus Jeffrey Katzenberg
(recently departed head of Disney's studio operations) would have been
terrific. Eisner has to beef up perceptions about management changes, but
I think he's capable of doing that. We are starting to take a fresh look
at Mickey Mouse. I think Disney could own NBC if it could get the network
at the right price.
<PAGE> 5
Q: WHAT ABOUT GAMING COMPANIES?
GABELLI: Global gaming ties in to multimedia. Unfortunately and
regrettably, there have been problems with some states (Kansas and
Connecticut) rejecting video lotteries. But there are lots of companies
trying to create reasonably informed, prudent kinds of gaming with limits,
so people don't go to excess. We think that gaming at home will happen. We
think that people will bet on the Kentucky Derby and the races at Santa
Anita. They may even migrate to sporting events.
Q: HOW ABOUT THE U.S. BROADCAST INDUSTRY?
GABELLI: In the U.S. 25 years ago, the networks were bashed by every
political power. Today, they are blessed by them, because people realize
they have plenty of competition and that regulation has been going the
wrong way.
Q: ARE WE GOING TO SEE THE DAY WHEN [WE] CAN BUY STOCKS ON TELEVISION
THE WAY [WE] NOW BUY CUBIC ZIRCONIA?
GABELLI: The National Association of Securities Dealers and the
Securities and Exchange Commission are way behind the curve on that one.
How should I know? I'm a money manager. Someone else will have to fight
that battle.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund's
investments. Favorable EBITDA prospects do not necessarily translate into
higher stock prices, but they do express a positive trend which we believe
will develop over time.
Telecom Italia (TELI.MA - $2.60 - Milan) formerly SIP (Societa
Italiana per L'Esercizio delle Telecomunicazioni p.a.) completed the first
phase of the restructuring process of the Italian telecommunications
sector in 1994. The company now provides basic local telephone service to
more than 24 million access lines, domestic and international long
distance service, and cellular service to more than 1.6 million
subscribers. Telecom Italia is currently undervalued at less than 4 times
EBITDA. We believe the remaining stages of the restructuring process,
including the spinoff of the cellular telephone operations into a separate
publicly traded company will act as a catalyst for enhancing shareholder
value. This spinoff is expected to occur in the third quarter of 1995.
Completion of privatization is also expected in 1995. However, the timing
of this event is less certain.
Time Warner, Inc. (TWX - $35.125 - NYSE) is one of the largest
diversified media and publishing companies in the world with a market
capitalization of over $15 billion. Warner Brothers Studios, the company's
filmed entertainment subsidiary, was ranked number one at the box office
for the third consecutive year. Time Warner is restructuring its business
into copyright and creativity (notably publishing, music and filmed
entertainment) on one side and distribution (mostly cable) on the other.
Capital Cities/ABC, Inc. (CCB - $85.25 - NYSE), one of the large U.S.
network television broadcasters, is in our opinion best positioned for
superior growth in the broadcasting industry over the next several years.
The company is a strong cash flow generator, has a balanced mix in radio
and publishing to complement its core television business, an attractive
international base of assets, and is evolving into more of a copyright
creator with its continued development of program production. As the
advertising environment improves, its market dominance in its individually
owned and operated television stations should prove positive to earnings.
Management continues to increase shareholder value through share
repurchases and cost controls and we believe the stock is worth north of
$110.00 per share.
BC Telecom, Inc. (BCTL - $17.12 - TSE) is a full service
telecommunications company operating in British Columbia. Its major
investor is GTE Corporation (GTE - $30.375 - NYSE), which owns 52% of the
company. We estimate the value of BC Tel at $50 per share. Its basic
telephone operations provide service to more than two million telephone
lines and are growing at 2 times the Canadian industry average. BC Tel
also
<PAGE> 6
operates a very attractive cellular phone company which currently serves
more than 150,000 subscribers. We expect BC Tel to take advantage of the
deregulatory trend in Canada by entering new businesses, as they are
allowed to participate.
AT&T Corporation (T - $50.25 - NYSE) is the second largest telephone
company in the world. AT&T is attractively valued relative to its growth
potential at 7.5 times EBITDA. It is well positioned to benefit from the
above average long term growth of the global telecommunications industry.
Its strategy includes taking advantage of its strong global franchise,
including brand name, broad product offering and an international customer
base. The company expects to take advantage of the growing demand for a
tailored approach to telecommunications services. AT&T will satisfy
communication needs by packaging its broad array of products including its
global wired and wireless telecommunications services, telecommunications
equipment and financial services. We expect earnings growth in 1995 to be
above 15% with an EPS estimate of $3.55.
QVC Inc. (QVCN - $42.125 - NASDAQ) agreed to accept a sweetened $46
per share offer by Comcast (CMCSA - $15.75 - NASDAQ) and
Tele-Communications Inc. (TCOMA - $22.188 - NASDAQ) for the 65% of QVCN
shares that the two cable giants do not own. CMCSA and TCOMA have notified
the FTC of their intention to consummate the $46 tender offer at any time
after 5pm on February 6, 1995 provided all conditions have been satisfied.
We hold a large position.
Hilton Hotels Corp. (HLT - $67.375 - NYSE) is a major lodging and
gaming company. Hilton Hotels owns and manages about 240 hotels throughout
the United States and franchises the Hilton name to other hotel operators.
Hilton Hotels include the Waldorf-Astoria (New York), the Beverly Hilton
(Los Angeles), the Chicago Hilton and a 50% interest in Hilton Hawaiian
Village. HLT's international hotel business is operated under the Conrad
Hotels name. Hotels bearing the Hilton name outside the U.S. are
properties of the British company Ladbroke, plc. HLT operates gaming
properties, primarily in Nevada with two casino/hotels in Las Vegas, two
in Reno and one in Laughlin. HLT's Nevada properties have about 11,000
rooms and more than 350,000 square feet of gaming space. HLT has engaged
investment banking firm Smith Barney to study strategic alternatives for
enhancing shareholder value, such alternatives include the sale of the
entire company, a spin-off of one or more businesses, recapitalization, a
business combination or a share repurchase program. The charter of the
Hilton Foundation, a major shareholder, incorporates a provision that
precludes sale of the company for less than $75 per share. The recent
announcement by Promus Companies of a plan to spin-off its hotel
properties (Embassy Suites and Hampton Inns) to its shareholders,
retaining it's Harrah's casino/hotels, may provide a model for Hilton to
follow.
Telefonica de Argentina (TAR - $53.00 - NYSE) is a full service
provider in the southern half of Argentina including parts of Buenos
Aires. TAR's stock performance has been negatively impacted by the Mexican
currency crisis. Although short-term volatility may continue, we remain
attracted to Telefonica de Argentina's fundamentals. TAR is now valued at
a discount to US Regional Bell EBITDA multiples, while maintaining growth
in high double digits. We are also attracted to TAR's favorable
competitive position, as its monopoly position will likely be maintained
until 2002.
Caesars World, Inc. (CAW - $66.75 - NYSE) signed a definitive
agreement to be acquired by ITT Corporation (ITT - $86.875 - NYSE) through
a $67.50 cash tender offer. ITT needs the approval of regulators in
Nevada, New Jersey and Canada to consummate the merger. These approvals
are expected by February 1, 1995. ITT is also addressing potential
problems the merger might create with the NBA and the NHL. (ITT is buying
the N.Y. Knicks and the N.Y. Rangers from Viacom.) Their league policies
prohibit franchise owners from having an interest in a sports-betting
operation. (CAW runs the largest sports book in Las Vegas.) ITT
anticipates all issues in this regard will be resolved promptly. The
Caesars World acquisition would be a major boost to ITT's plan to become a
forceful presence in entertainment-related industries.
LIN Broadcasting Corp. (LINB - $133.50 - NASDAQ) is among the largest
and most attractive cellular telephone operators in the U.S. with
controlling interests in the New York, Los Angeles, Dallas and Houston
markets. McCaw Cellular Communications, which was itself acquired by AT&T
in 1994 controls 52% of LIN and is contractually bound to purchase the
rest of LIN or to put all of LIN up for sale in a process which begins in
January 1995. We expect McCaw (AT&T) will purchase the balance of LIN for
a price between $140 and $150 per share in 1995.
<PAGE> 7
Sprint Corporation (FON - $27.625 - NYSE) remains very attractive in
light of its very low valuation and prospects for earnings acceleration.
It trades at 59% of our $67 estimate of private market value. We expect
the telephone and cellular operations to be the main contributors to
operations due to the continuation of strong customer growth. We point out
subscriber growth of 67% in cellular last year. The long distance
operations should maintain less spectacular call volume growth at the
industry average of approximately 8%. Sprint's high cost structure also
provides an opportunity for earnings acceleration through further cost
restructuring. An alliance with a multinational communications partner
also appears imminent and will provide Sprint with the critical mass
necessary to position itself strategically as a dominant player in the
multinational telecommunications market.
DISTRIBUTION POLICY
The distribution policy of the Multimedia Trust is to distribute
substantially all of its net investment income and capital gains to
shareholders at year end. As a regulated investment company under the
Internal Revenue Code, the Multimedia Trust will not be subject to U.S.
federal income tax on its investment company taxable income that it
distributes to shareholders, provided that at least 90% of its investment
company taxable income is distributed to its shareholders.
The Fund recently paid its year end distribution of $0.05 per share on
December 28, 1994. The next distribution is scheduled for payment in
December of 1995.
IN CONCLUSION
In closing, we thank you again for the trust you have shown in our
investment abilities and express our dedication to achieving our shared
financial goal: to increase the value of the assets you have entrusted to
us.
Sincerely,
/s/ Mario J. Gabelli
------------------------
Mario J. Gabelli, CFA
President and Chief Investment Officer
February 1, 1995
TOP TEN HOLDINGS
DECEMBER 31, 1994
Caesars World, Inc. Hilton Hotels Corporation
QVC. Inc. Time Warner Inc.
Sprint Corporation CBS, Inc.
Capital Cities/ABC Inc. Tele-Communications, Inc.
LIN Broadcasting Corp. AT&T Corporation
<PAGE> 8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 1994
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
----------- -----------
<C> <S> <C> <C>
COMMON STOCKS --
20.48%
CABLE -- 0.59%
1,000 Bell Cablemedia plc
ADR+............... 20,050 20,250
1,000 BET Holdings
Inc.+ ............. 15,425 15,125
500 Cablemaxx, Inc.+ ... 2,275 1,938
1,000 Comcast Cable
Corporation of
U.K.+ ............. 15,612 16,000
1,000 International
Cablecasting
Technologies
Inc.+ ............. 28,300 27,750
7,000 Media General Inc.
Cl. A.............. 198,850 198,625
2,000 Multimedia,
Inc.+ ............. 56,250 57,000
500 People's Choice TV
Corporation+....... 7,837 7,875
500 Preferred
Entertainment
Inc.+.............. 5,525 5,500
1,000 Shaw Communications,
Inc. .............. 7,129 7,133
1,000 Telewest
Communications plc
ADR+............... $ 27,925 $ 26,500
----------- -----------
385,178 383,696
----------- -----------
CONSUMER PRODUCTS --
0.32%
4,000 General Electric
Company............ 192,950 204,000
----------- -----------
ENTERTAINMENT --
1.70%
3,000 Bay Meadows
Operating
Company............ 48,150 43,125
540 Fisher Companies
Inc. .............. 120,940 132,840
4,000 Gaylord
Entertainment
Company............ 94,950 91,000
6,000 GC Companies
Inc.+.............. 156,650 157,500
10,000 GTECH Holdings
Corporation+....... 169,281 203,750
200 PolyGram NV ADR..... 8,735 9,225
2,500 Savoy Pictures
Entertainment+..... 16,038 16,250
50,000 Shaw Brothers (Hong
Kong) Ltd. ........ 82,217 76,893
1,000 THORN EMI PLC ADR... 15,750 16,192
7,500 Time Warner Inc. ... 253,750 263,438
1,500 Viacom Inc. Cl.
A+................. 61,575 62,438
500 Walt Disney
Company............ 21,713 23,062
----------- -----------
1,049,749 1,095,713
----------- -----------
FINANCIAL SERVICES --
0.06%
1,000 H&R Block Inc. ..... 35,675 37,125
----------- -----------
HOTELS/CASINOS --
4.97%
40,000 Caesars World,
Inc.+ ............. 2,528,276 2,670,000
7,000 Hilton Hotels
Corporation........ 412,037 471,625
25,000 Ladbroke Group
plc................ 63,360 66,904
----------- -----------
3,003,673 3,208,529
----------- -----------
<CAPTION>
MARKET
SHARES COST VALUE
----------- -----------
<C> <S> <C> <C>
INTERACTIVE SOFTWARE
& SERVICES -- 0.19%
2,000 Microsoft
Corporation+....... 121,625 122,250
----------- -----------
LONG DISTANCE
TELEPHONE
COMPANIES -- 2.39%
6,000 AT&T Corporation.... 311,300 301,500
45,000 Sprint
Corporation........ 1,276,625 1,243,125
----------- -----------
1,587,925 1,544,625
----------- -----------
MEDIA -- 6.38%
500 ACS Enterprises,
Inc.+.............. $ 3,838 $ 4,375
3,000 BHC Communications
Inc. Cl. A+........ 225,875 220,500
3,000 British Sky
Broadcasting
ADR+............... 72,400 72,000
500 Canal Plus Spons.
ADR................ 16,750 16,021
7,500 Capital Cities/ABC
Inc. .............. 618,125 639,375
8,000 CBS, Inc. .......... 454,900 443,000
5,000 Chris-Craft
Industries,
Inc.+.............. 171,500 172,500
7,000 Citicasters
Inc.+ ............. 166,000 173,250
10,000 Data Broadcasting
Corporation+....... 43,156 41,250
1,000 Flextech plc+....... 6,364 6,260
6,500 Grupo Televisa SA... 212,346 206,375
1,000 Havas SA ADR........ 20,500 19,534
2,000 International Family
Entertainment
Inc.+ ............. 26,225 25,250
2,000 LIN Television
Corporation+....... 47,258 45,500
5,000 Outlet
Communications Inc.
Cl. A+............. 82,500 83,750
30,000 QVC, Inc.+ ......... 1,259,791 1,263,750
20,000 Tele-Communications,
Inc. Cl. A+........ 450,744 435,000
10,000 Television
Broadcasting
Ltd. .............. 42,191 39,933
10,000 Tokyo Broadcasting
System............. 163,130 165,846
900 United Television
Inc.+.............. 47,066 49,050
----------- -----------
4,130,659 4,122,519
----------- -----------
MEDIA SERVICES --
0.10%
10,000 Ackerley
Communications,
Inc.+.............. 66,500 67,500
----------- -----------
PUBLISHING -- 0.87%
10,000 American Media, Inc.
Cl. A.............. 155,287 162,500
4,000 Independent
Newspapers plc..... 17,708 17,090
10,000 Ming Pao Enterprise
Corp. Ltd. ........ 6,039 6,009
3,000 News Corporation
Ltd. ADR........... 48,878 46,875
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 9
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 1994 (CONTINUED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
----------- -----------
<C> <S> <C> <C>
1,000 News Corporation Ltd.
ADR Preference
Shares+.............. $ 13,847 $ 13,875
10,000 Oriental Press
Group................ 5,192 4,685
10,000 Playboy Enterprises,
Inc. Cl. B+.......... 98,000 93,750
500 Readers Digest
Association, Inc. Cl.
B.................... 22,150 22,375
10,000 South China Morning
Post Holdings........ 5,932 5,848
20,000 Western Publishing
Group, Inc.+......... 227,889 190,000
----------- -----------
600,922 563,007
----------- -----------
REGIONAL/LOCAL
TELEPHONE
SERVICES -- 0.05%
1,000 Pacific Telecom,
Inc. ................ 30,175 30,000
----------- -----------
TELEPHONE NETWORKS --
1.38%
3,000 BC TELECOM Inc. ...... 56,238 51,355
1,000 Compania Telefonos de
Chile SA ADR......... 79,850 78,750
1,100 PT Indonesia
Satellite+........... 36,493 39,325
4,000 Telecomunicacoes
Brasileiras SA
(Telebras) Spons.
ADR+................. 176,805 179,500
1,000 Telecom Argentina SA
ADR.................. 47,289 51,750
100,000 Telecom Italia SpA+... 252,000 260,253
1,000 Telefonica de
Argentina SA ADR..... 48,894 53,000
1,000 Telefonica de Espana
SA ADR............... 33,550 35,125
3,500 Telefonos De Mexico
Cl. L ADR............ 147,737 143,500
----------- -----------
878,856 892,558
----------- -----------
WIRELESS
COMMUNICATIONS --
1.48%
1,500 AirTouch
Communications
Inc.+................ 42,075 43,688
1,000 All American
Communications
Inc.+................ 6,982 6,250
1,000 BCE Mobile
Communications
Inc.+................ 31,255 31,740
2,000 Cellular
Communications, Inc.
Cl. A+............... 104,862 107,000
5,000 COMSAT Corporation.... 94,500 93,125
4,000 LIN Broadcasting
Corporation+......... 520,817 534,000
<CAPTION>
PRINCIPAL
AMOUNT MARKET
OR SHARES COST VALUE
- - ----------- ----------- -----------
<C> <S> <C> <C>
6,000 NEXTEL Communications
Inc. Cl. A+.......... $ 95,833 $ 86,250
1,000 Rogers Cantel Mobile
Communications Cl.
B+................... 28,250 29,155
600 Telephone and Data
Systems Inc. ........ 24,880 27,675
----------- -----------
949,454 958,883
----------- -----------
TOTAL COMMON STOCKS... 13,033,341 13,230,405
----------- -----------
CONVERTIBLE CORPORATE
BONDS -- 0.46%
ENTERTAINMENT -- 0.43%
200,000 Time Warner Inc. Sub.
Deb. Cv. 8.75%,
01/10/15............. 188,322 189,000
100,000 Viacom International
Inc. Sub. Deb. Cv.
8.00%, 07/07/06...... 84,677 85,750
----------- -----------
272,999 274,750
----------- -----------
MEDIA SERVICES --
0.03%
$ 22,000 Trans-Lux Corp. Sub.
Deb. Cv. 9.00%,
12/01/05............. 22,027 21,560
----------- -----------
TOTAL CONVERTIBLE
CORPORATE BONDS...... 295,026 296,310
----------- -----------
U.S. GOVERNMENT
OBLIGATIONS -- 84.38%
54,790,000 U.S. Treasury Bills,
4.66% to 5.29% due
01/05/95 to
02/16/95............. 54,519,604 54,519,604
----------- -----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.......... 54,519,604 54,519,604
----------- -----------
TOTAL INVESTMENTS --
105.32%............... $67,847,971* 68,046,319
==========
LIABILITIES, IN EXCESS
OF OTHER
ASSETS -- (5.32)%.... (3,440,207)
-----------
NET ASSETS -- 100.00%
(8,607,411 SHARES
OUTSTANDING)......... $64,606,112
==========
NET ASSET VALUE
PER SHARE............ $ 7.51
==========
</TABLE>
- - ---------------------
+ Non-income producing security.
* For Federal income tax purposes:
<TABLE>
<S> <C>
Aggregate cost...... $67,847,971
==========
Gross unrealized
appreciation....... $ 374,843
Gross unrealized
depreciation....... (176,495)
----------
Net unrealized
appreciation....... $ 198,348
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE> 10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
- - ------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(Cost $67,847,971)..................... $68,046,319
Cash.................................... 91,681
Dividends receivable.................... 4,889
Accrued interest receivable............. 4,544
Deferred organizational expenses........ 340,991
Other assets............................ 19,200
-----------
Total assets.......................... 68,507,624
-----------
LIABILITIES:
Payable for investments purchased....... 3,449,154
Payable to Advisor...................... 54,767
Dividend payable........................ 104,368
Organizational expenses payable......... 252,807
Other accrued expenses.................. 40,416
-----------
Total liabilities..................... 3,901,512
-----------
NET ASSETS for 8,607,411 shares
outstanding......................... $64,606,112
===========
NET ASSETS CONSIST OF:
Capital Stock, at par value............. $ 8,607
Additional paid-in capital.............. 64,503,525
Distributions in excess of net
investment income..................... (73,058)
Distributions in excess of net realized
gains................................. (31,310)
Net unrealized appreciation on
investments........................... 198,348
-----------
Net assets............................ $64,606,112
===========
NET ASSET VALUE ($64,606,112 / 8,607,411
shares outstanding)..................... $ 7.51
===========
(200,000,000 shares authorized
of $0.001 par value)
</TABLE>
STATEMENT OF OPERATIONS -- FOR THE PERIOD NOVEMBER 15, 1994 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1994
- - ------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest................................... 393,282
Dividends (Net of foreign tax of $102)..... $ 13,254
--------
Total income............................. 406,536
--------
EXPENSES:
Investment advisory fee.................... 83,054
Legal and audit fees....................... 19,500
Transfer & shareholder servicing agent..... 10,000
Printing & mailing......................... 9,460
Amortization of organization expenses...... 9,009
Custodian fees & expenses.................. 7,600
Registration fees.......................... 3,625
Directors' fees and expenses............... 2,043
Miscellaneous.............................. 346
--------
Total expenses........................... 144,637
--------
Investment income -- net................... 261,899
--------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on futures
transactions............................. 20,609
Net change in unrealized appreciation...... 198,348
--------
Net increase in net assets resulting from
operations................................ $480,856
=========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS -- NOVEMBER 15, 1994 (COMMENCEMENT OF
OPERATIONS) THROUGH DECEMBER 31, 1994
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INCREASE IN NET ASSETS:
Investment income -- net............................................................................ $ 261,899
Net realized gain................................................................................... 20,609
Change in unrealized appreciation -- net............................................................ 198,348
-----------
Net increase in net assets resulting from operations.............................................. 480,856
-----------
Distributions from net investment income............................................................ (261,899)
Distributions from net realized gains............................................................... (20,609)
Distributions in excess of net investment income.................................................... (73,058)
Distributions in excess of net realized gains....................................................... (31,310)
Distributions from paid in capital.................................................................. (43,009)
-----------
(429,885)
-----------
Share transactions -- net........................................................................... 64,455,141
-----------
Net increase in net assets........................................................................ 64,506,112
NET ASSETS:
Beginning of period................................................................................. 100,000
-----------
End of period....................................................................................... $64,606,112
===========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
<PAGE> 11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Gabelli Global Multimedia Trust Inc. (the "Multimedia Trust") is a
newly organized closed-end, non-diversified management investment company
organized as a Maryland corporation and registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). 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"). On November
15, 1994, the Equity Trust contributed $64,382,764 in exchange for 8,587,702
shares of the Multimedia Trust and immediately thereafter distributed to its
shareholders all the shares it held of the Multimedia Trust. Investment
operations commenced on November 15, 1994.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Multimedia Trust in the preparation of its financial statements.
Security Valuation. Portfolio securities which are traded on a stock
exchange or NASDAQ National Market System are valued at the last sale price as
of the close of business on the day the securities are being valued, or lacking
any sales, at the mean of closing bid and asked prices. Other over-the-counter
securities are valued at the average of the bid and asked prices as obtained
from one or more dealers that make markets in the securities. Portfolio
securities which are traded both in the over-the-counter market and on a stock
exchange are valued according to the broadest and most representative market, as
determined by Gabelli Funds, Inc. (the "Advisor"). Securities traded primarily
on foreign exchanges are valued at the closing price of such securities on their
respective exchanges or markets immediately prior to the close of the New York
Stock Exchange. Securities and assets for which market quotations are not
readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Multimedia Trust. Options
are generally valued at the last sale price or, in the absence of a last sale
price, the average of the bid and asked price. Short-term investments that
mature in more than 60 days are valued at the highest bid price obtained from a
dealer maintaining an active market on that security. Short-term investments
that mature in 60 days or fewer are valued at amortized cost, unless the Board
of Directors determines that such valuation does not constitute fair value.
Repurchase Agreements. The Multimedia Trust may engage in repurchase
agreement transactions. Under the terms of a typical repurchase agreement, the
Multimedia Trust takes possession of an underlying debt obligation for a
relatively short period (usually not more than one week) 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. This arrangement results in a
fixed rate of return that is not subject to market fluctuations during the
Multimedia Trust's holding period. The value of the collateral is at least equal
at all times to the total amount of the repurchase obligation, including
interest. The Multimedia Trust bears a risk of loss in the event that the other
party to a repurchase agreement defaults on its obligations and the Multimedia
Trust is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value of
the underlying securities during the period while the Multimedia Trust seeks to
assert its rights. The Advisor, acting under the supervision of the Board of
Directors, reviews the value of the collateral and the creditworthiness of those
banks and dealers with which the Multimedia Trust enters into repurchase
agreements to evaluate potential risks.
Option Accounting. The Multimedia Trust may purchase or write listed call
or put options on securities to hedge the value of the Multimedia Trust's
portfolio. Upon the purchase of a put or call option by the Multimedia Trust,
the premium paid is recorded as an investment, the value of which is
<PAGE> 12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
marked-to-market daily. When a purchased option expires, the Multimedia Trust
will realize a loss in the amount of the cost of the option. When the Multimedia
Trust enters into a closing sale transaction, the Multimedia Trust will realize
a gain or loss depending on whether the sales proceeds from the closing sale
transaction are greater or less than the cost of the option. When the Multimedia
Trust exercises a put option, it will realize a gain or loss from the sale of
the underlying security and the proceeds from such sale will be decreased by the
premium originally paid. When the Multimedia Trust exercises a call option, the
cost of the security which the Multimedia Trust purchases upon exercise will be
increased by the premium originally paid.
When the Multimedia Trust writes an option, an amount equal to the premium
received by the Multimedia Trust is recorded as a liability, the value of which
is marked-to-market daily. When a written option expires, the Multimedia Trust
realizes a gain equal to the amount of the premium received. When the Multimedia
Trust enters into a closing purchase transaction, the Multimedia Trust realizes
a gain (or loss if the cost of the closing purchase transaction exceeds the
premium received when the option was sold) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such option is
eliminated. When a written call option is exercised, the Multimedia Trust
realizes a gain or loss from the sale of the underlying security and the
proceeds from such sale are increased by the premium originally received. When a
written put option is exercised, the amount of the premium originally received
will reduce the cost of the security which the Multimedia Trust purchased upon
exercise.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that the Multimedia Trust
may forego the opportunity of profit if the market price of the underlying
security increases and the option is exercised. The risk in writing a put option
is that the Multimedia Trust may incur a loss if the market price of the
underlying security decreases and the option is exercised. In addition, there is
a risk that the Multimedia Trust may not be able to enter into a closing
transaction because of an illiquid secondary market.
Futures Contracts. The Multimedia Trust may engage in futures contracts
for the purpose of hedging against changes in the value of its portfolio
securities and in the value of securities it intends to purchase. Such
investments will only be made if they are, in the opinion of Multimedia Trust
management, economically appropriate to the reduction of risks involved in the
management of the Multimedia Trust. Upon entering into a futures contract, the
Multimedia Trust is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Multimedia Trust each day, depending on the daily fluctuation
of the value of the contract. The daily changes in the contract are recorded as
unrealized gains or losses. The Multimedia Trust recognizes a realized gain or
loss when the contract is closed. The net unrealized appreciation/depreciation
is shown in the financial statements.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Multimedia Trust may not be able to enter into a closing transaction because
of an illiquid secondary market.
Forward Foreign Exchange Contracts. The Multimedia Trust may hold
currencies to meet settlement requirements for foreign securities and may engage
in currency exchange transactions to hedge against changes in exchange rates.
The forward foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded by the Multimedia
Trust as an unrealized gain or loss. When the contract is closed, the Multimedia
Trust
<PAGE> 13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 currency 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 currency contracts limit the risk of loss due
to a decline in the value of the hedged currency, they also limit any potential
gain 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. 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 on the respective dates of such
transactions. Unrealized gains or losses which result from changes in the value
of foreign currencies and net other assets have been included in unrealized
appreciation/depreciation of net other assets. Net realized currency gains and
losses 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 Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuation arising from changes in market prices of securities held. Such
fluctuation are included with the net realized and unrealized gain or loss from
investments.
Securities Transactions and Investment Income. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined using specific identification as the cost method. Interest income
(including amortization of premium and discount) is recorded as earned.
Dividends and Distributions to Shareholders. Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Multimedia Trust,
temporary differences and differing characterization of distributions made by
the Multimedia Trust. Tax basis return of capital distributions have been
recorded as an adjustment to paid-in-capital.
Organization Expenses. The organization expenses of the Multimedia Trust
are being amortized on a straight-line basis over a period of 60 months.
Federal Income Taxes. The Multimedia Trust has qualified and intends to
continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended. As a result, a Federal income tax
provision is not required.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Multimedia Trust has an investment advisory agreement (the "Advisory
Agreement") with the Advisor. Pursuant to the Advisory Agreement, the Multimedia
Trust pays the Advisor a fee computed weekly and paid monthly at the annual rate
of 1.00 percent of the value of the Multimedia Trust's average weekly net
assets.
During the period ended December 31, 1994, Gabelli & Company, Inc.
("Gabelli & Company"), an affiliate of the Advisor, received $2,595 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Multimedia Trust.
<PAGE> 14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. PORTFOLIO SECURITIES
Cost of purchases and proceeds from sales of securities, other than
short-term securities, aggregated $13,328,367 and $0.00, respectively, for the
period ended December 31, 1994.
5. CAPITAL
The articles of incorporation, dated April 6, 1994, permit the Multimedia
Trust to issue 200,000,000 shares (par value $0.001). Common stock transactions
were as follows:
<TABLE>
<CAPTION>
NOVEMBER 15, 1994
(COMMENCEMENT OF
OPERATIONS)
THROUGH
DECEMBER 31, 1994
--------------------------
SHARES AMOUNT
--------- ------------
<S> <C> <C>
Balance at November 15, 1994 (See note 1).............................................. 10,000 $ 100,000
Issued via spin-off from The Gabelli Equity Trust Inc.*................................ 8,587,702 64,382,764
Issued due to reinvestment of dividends and distributions.............................. 9,709 72,377
--------- ------------
Net increase........................................................................... 8,607,411 $ 64,555,141
========= ===========
</TABLE>
- - ---------------
* On November 15, 1994 The Gabelli Equity Trust Inc. distributed one share of
the Multimedia Trust for each ten shares of the Equity Trust outstanding to
shareholders of record on October 17, 1994.
------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout the period November 15,
1994 (Commencement of Operations) through December 31, 1994:
<TABLE>
<S> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period.......................................................... $ 7.50+
-------
Net investment income......................................................................... 0.03
Net realized and unrealized gain on securities................................................ 0.03
-------
Total from Investment operations.............................................................. 0.06
-------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income......................................................................... (0.03)
Distributions in excess of net investment income and net realized gains....................... (0.01)
Paid-in-capital............................................................................... (0.01)
-------
Total distributions........................................................................... (0.05)
-------
Net asset value, end of period........................................................................ $ 7.51
========
Market value, end of year............................................................................. $ 7.375
========
Total Investment Return....................................................................... (7.91)%(a)
========
Net Asset Value Total Return.................................................................. 0.80%(b)
========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets end of period (in thousands)....................................................... $64,606
Ratio of operating expenses to average net assets............................................. 1.74%*
Ratio of net investment income to average net assets.......................................... 3.15%*
Portfolio turnover rate....................................................................... 0%
</TABLE>
- - ------------------
* Annualized.
+ Represents net asset value of shares on November 15, 1994.
(a) Based on market value per share at date of issuance of $8.0625, adjusted for
reinvestment of all distributions.
(b) Based on net asset value per share, adjusted for reinvestment of all
distributions.
The accompanying notes are an integral part of the financial highlights.
<PAGE> 15
REPORT OF INDEPENDENT ACCOUNTANTS
- - --------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Global Multimedia Trust
Inc. (the "Multimedia Trust") at December 31, 1994, and the results of its
operations, the changes in its net assets and the financial highlights for the
period November 15, 1994 (commencement of operations) through December 31, 1994,
in conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Multimedia Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at December
31, 1994 by correspondence with the custodian and brokers, and the application
of alternative auditing procedures where confirmations from brokers were not
received, provides a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
February 9, 1995
<PAGE> 16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
CALENDAR YEAR 1994
CASH DIVIDENDS AND DISTRIBUTIONS
<TABLE>
<CAPTION>
TOTAL AMOUNT ORDINARY RETURN LONG-TERM DIVIDEND
PAYABLE RECORD PAID INVESTMENT OF CAPITAL REINVESTMENT
DATE DATE PER SHARE INCOME CAPITAL GAINS PRICE
- - --------- --------- ------------- ---------- -------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
12/28/94 12/27/94 $ 0.0500 $ 0.0315 $ 0.0171 $ 0.0014 $ 7.4547
</TABLE>
- - ---------------
A Form 1099-DIV has been mailed to all shareholders of record for the
distributions mentioned above, setting forth specific amounts to be included in
the 1994 tax returns. Ordinary income distributions include net investment
income and realized net short-term capital gains.
RETURN OF CAPITAL
The amount received as a non-taxable (return of capital) distribution
should be applied to reduce the tax cost of shares. This amount will be
reflected on Form 1099-DIV. If the amount of the non-taxable portion exceeds
your tax basis, the excess will be taxable as a capital gain.
CORPORATE DIVIDENDS RECEIVED DEDUCTION AND U.S. TREASURY SECURITIES INCOME
The Trust paid to shareholders ordinary income dividends of $0.0315 per
share on December 28, 1994. The percentage of such dividends that qualifies for
the dividends received deduction available to corporations is 1.48%. The
percentage of the ordinary income dividends paid by the Trust during 1994
derived from U.S. Treasury Securities was 96.34%.
DISTRIBUTION SUMMARY
<TABLE>
<CAPTION>
TAXES PAID
SHORT- LONG- UNDISTRIBUTED ON
TERM TERM LONG-TERM UNDISTRIBUTED ADJUSTMENT
ANNUAL INVESTMENT CAPITAL CAPITAL RETURN OF CAPITAL CAPITAL TOTAL TO
SUMMARY INCOME(A) GAINS(A) GAINS CAPITAL(B) GAINS GAINS(C) DISTRIBUTIONS COST BASIS
- - ---------------- ---------- -------- -------- ---------- ------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1994............ $0.0305 $0.0010 $ 0.0014 $ 0.0171 -- -- $ 0.05 $ 0.0171-
</TABLE>
- - ---------------
(a) Taxable as ordinary income for Federal tax purposes.
(b) Non-taxable.
(c) Net Asset Value is reduced by this amount on the last business day of the
year.
- Decrease in cost basis.
<PAGE> 17
AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Multimedia
Trust") to automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Multimedia Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Multimedia Trust to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Multimedia Trust. Plan participants may send
their stock certificates to State Street Bank and Trust Company to be held in
their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:
The Gabelli Global Multimedia Trust Inc.
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street Bank and Trust
Company at 1 (800) 426-5523.
Shareholders wishing to liquidate reinvested shares held at State Street
Bank and Trust Company must do so in writing. Please submit your request to the
above mentioned address. Include in your request your name, address and account
number. The cost to liquidate shares is $2.50 per transaction as well as the
brokerage commission incurred. Brokerage charges are expected to be less than
the usual brokerage charge for such transactions.
If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at such institution will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the
Plan in lieu of cash dividends is determined in the following manner. Under the
Plan, whenever the market price of the Multimedia Trust's Common Stock is equal
to or exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Multimedia Trust's Common Stock. The
valuation date is the dividend or distribution payment date or, if that date is
not a New York Stock Exchange trading day, the next trading day. If the net
asset value of the Common Stock at the time of valuation exceeds the market
price of the Common Stock, participants will receive shares from the Multimedia
Trust valued at market price. If the Multimedia Trust should declare a dividend
or capital gains distribution payable only in cash, State Street will buy Common
Stock in the open market, or on the New York Stock Exchange or elsewhere, for
the participants' accounts, except that State Street will endeavor to terminate
purchases in the open market and cause the Multimedia Trust to issue shares at
net asset value if, following the commencement of such purchases, the market
value of the Common Stock exceeds net asset value.
<PAGE> 18
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Multimedia Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan
at least 90 days before the record date for such dividend or distribution. The
Plan also may be amended or terminated by State Street on at least 90 days'
written notice to participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Multimedia Trust. In order to
participate in the Voluntary Cash Purchase Plan, shareholders must have their
shares registered in their own name and participate in the Dividend Reinvestment
Plan.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to State Street Bank and Trust Company for investments
in the Multimedia Trust's shares at the then current market price. Shareholders
may send an amount from $250 to $3,000. State Street Bank and Trust Company will
use these funds to purchase shares in the open market on or about February 15
and August 15 of each year. State Street Bank and Trust Company will charge each
shareholder who participates $0.75, plus a pro rata share of the brokerage
commissions. Brokerage charges for such purchases are expected to be less than
the usual brokerage charge for such transactions. It is suggested that any
voluntary cash payments be sent to State Street Bank and Trust Company, P.O. Box
8200, Boston, MA 02266-8200, such that State Street receives such payments
approximately 10 days before February 15 or August 15. A payment may be
withdrawn without charge if notice is received by State Street Bank and Trust
Company at least 48 hours before such payment is to be invested.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Multimedia Trust.
<PAGE> 19
OFFICERS AND DIRECTORS
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1434
Directors Investment Advisor
Mario J. Gabelli, CFA, Chairman Gabelli Funds, Inc.
Paul R. Ades One Corporate Center
Attorney-at-Law Rye, New York 10580-1434
Partner, Murov & Ades
Dr. Thomas E. Bratter Custodian, Transfer Agent and
President, John Dewey Academy Registrar
State Street Bank and Trust Company
Bill Callaghan Counsel
President, Bill Callaghan Associates Willkie Farr & Gallagher
Felix J. Christiana
Former Senior Vice President, Stock Exchange Listing
Dollar Dry Dock Savings Bank NYSE-Symbol: GGT
James P. Conn
Managing Director/Chief Investment Shares Outstanding: 8,607,411
Officer,
Financial Security Assurance
Karl Otto Pohl The Net Asset Value appears in
Former President, Deutsche Bundesbank the Publicly Traded Funds
column, under the heading
Anthony R. Pustorino "Specialized Equity Funds," in
Certified Public Accountant Saturday's The New York Times and
Professor, Pace University Monday's The Wall Street Journal.
It is also listed in Barron's
Salvatore J. Zizza Mutual Funds/Closed End Funds
Chairman & Chief Executive Officer section under the heading
The Lehigh Group, Inc. "Specialized Equity Funds."
Officers The Net Asset Value may be obtained
each day by calling (914) 921-5070.
Mario J. Gabelli, CFA
President &
Chief Investment Officer For general information about
the Gabelli Funds, call
Bruce N. Alpert 1-800-GABELLI
Vice President & Treasurer (1-800-422-3554), fax us at
914-921-5118 or, visit our Internet
Marc S. Diagonale homepage at:
Vice President http://networth.galt.com/gabelli
J. Hamilton Crawford, Jr.
Secretary
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 capital 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.
<PAGE> 20
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER RYE, NY 10580-1434
PHONE: 1-800-GABELLI (1-800-422-3554)
FAX: 914-921-5118 INTERNET: HTTP://NETWORTH.GALT.COM/GABELLI
