First Quarter Report
[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
March 31, 1997
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[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
Our cover icon represents the underpinnings of Gabelli. The Teton mountains in
Wyoming represent what we believe in in America -- that creativity, ingenuity,
hard work and a global uniqueness provide enduring values. They also stand out
in an increasingly complex, interconnected and inter-dependent economic world.
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.
This report is printed on recycled paper.
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To Our Shareholders,
The stock market roared out of the blocks in January, but quickly lost
momentum as inflation jitters and a slumping bond market muddied the track. In
late March, a rate hike by the Federal Reserve and much stronger than expected
economic data stampeded equities investors, eroding most of the market's earlier
gains. The Dow Jones Industrial Average and Standard & Poor's 500 Index closed
the quarter with modest gains of 1.7% and 2.7% respectively. Smaller stocks
continued to lag as evidenced by the Russell 2000 Index's 5.2% decline.
[PHOTO]
[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
For the twelve months ended March 31, 1997, The Gabelli Global Multimedia
Trust Inc.'s ("Multimedia Trust") net asset value per share increased 6.2% to
$8.23 on March 31, 1997. This compares to the average 11.9% increase of the 30
open-end Global Funds tracked by Lipper Analytical Services. For the first
quarter ended March 31, 1997, the Fund increased 1.7%. Since its inception on
November 15, 1994, the Multimedia Trust's net asset value has achieved a 27.8%
total return after adjusting for the rights offering and all distributions. This
equates to a 10.9% average annual return.
The Multimedia Trust's common shares ended the first quarter at $6.875 per
share on the New York Stock Exchange, unchanged for the quarter and an increase
of 5.4% for the year. The common shares have increased 0.2% since inception
after adjusting for all distributions and the rights offering.
What We Do
We do what is described as bottom up research: we read annual reports; we
visit the competition; we talk to customers; we go belly to belly with
management. In past reports, we have tried to articulate our investment
philosophy and methodology. The following graphic further illustrates the
interplay among the four components of our valuation approach.
[GRAPHIC OMITTED]
Our focus is on free cash flow; earnings before interest, taxes,
depreciation and amortization (EBITDA) minus the capital expenditures necessary
to grow the business. We believe free cash flow is the best barometer of a
business' value. Rising free cash flow often foreshadows net earnings
improvement. We also look at earnings per share trends. Unlike Wall Street's
ubiquitous earnings momentum players, we do not try to forecast earnings with
accounting precision and then trade stocks based on quarterly expectations and
realities. We simply try to position ourselves in front of long-term earnings
uptrends. In addition, we analyze on and off balance sheet assets and
liabilities such as plant and equipment, inventories, receivables, and legal,
environmental and health care issues. We want to know everything and anything
that will add to or detract from our private market value (PMV) estimates.
Finally, we look for a catalyst; something happening in the company's industry
or indigenous to the company itself that will surface value. In the case of the
independent telephone stocks, the catalyst is a regulatory change. In the
agricultural equipment business, it is the increasing world-wide demand for
American food and feed
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crops. In other instances, it may be a change in management, sale or spin-off of
a division or the development of a profitable new business.
Once we identify securities that qualify as fundamental and conceptual
bargains, we then become patient investors. This has been a proven long-term
method for preserving and enhancing wealth in the U.S. securities market. At the
margin, our new investments are focused on businesses that are well-managed and
will benefit from sustainable long-term economic dynamics. These include macro
trends, such as globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as increased focus on productivity
enhancing goods and services.
THE PORTFOLIO OVERVIEW
Global Allocation
The chart at the right represents the Multimedia Trust's holdings by
geographic region as of March 31, 1997. The geographic alloca tion will change
based on current global market conditions. Countries and/or regions and
companies represented in the chart and below may or may not be included in the
Multimedia Trust's portfolio in the future.
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE GRAPH IN THE PRINTER MATERIAL]
HOLDINGS BY GEOGRAPHIC REGION - 3/31/97
United States 64.8%
Europe 11.1%
Latin America 9.0%
Canada 7.5%
Asia/Pacific Rim 7.6%
Equity Mix
The Multimedia Trust's investment premise falls within the context of two
main investment universes: 1) companies involved in creativity, as it relates to
the development of intellectual property rights (copyrights); and 2) companies
involved in distribution, as it relates to the delivery of these copyrights.
Additionally, this includes the broad scope of communications-related services
such as basic voice and data.
The chart to the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of March 31, 1997.
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE GRAPH IN THE PRINTER MATERIAL]
Copyright/Creativity 42.3%
Distribution 57.7%
Commentary
The Economy and the Stock Market: Too Much of a Good Thing
Once again, the economy confounded the Wall Street economists by growing
much faster than consensus expectations. Although inflation has not yet shown up
in the Producer Price and Consumer Price indices, Federal Reserve Chairman Alan
Greenspan and bond investors decided to err on the side of caution by taking
short- and long-term interest rates higher.
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We applaud Fed Chairman Greenspan's preemptive strike against inflation.
We believe he will continue to take the steps necessary to combat inflation and,
in the process, provide confidence in Soft Landing - Part II. Over the
short-term, this may not be pleasant for equities investors. However, with the
elimination of some of the speculative excesses, the market will be on much
better fundamental footing going forward. We do not believe this is the
beginning of a secular bear market, but rather a healthy correction that is
arguably long overdue.
What can we expect over the balance of this year? We should continue to
see a volatile market as skittish investors wrestle with the latest economic
data trying to determine if inflation is a real threat. While the jury may still
be out on inflation, higher interest rates are a reality and will be problematic
for stocks on several levels. Higher interest rates might trim the economy and
restrain corporate earnings growth putting consensus estimates of 9% to 10%
gains for 1997 in jeopardy. Higher rates also boost the U.S. dollar, further
crimping the U.S. dollar value of international earnings. Whether you are
looking at stocks on the basis of asset values or using a dividend discount
model, public prices of equities tend to decline as interest rates rise, all
else constant. So, price/cash flow and price/earnings multiples do contract,
should interest rates rise.
The wild card will be how investors react to any sustained decline in
stock prices. A tremendous amount of money has flowed into the equities market
in the last three years. Will it back out at the first sign of serious trouble?
It may not be how the great unwashed public reacts, but rather how the great
unwashed professional investors--those twenty and thirty something mutual fund
managers who have never experienced even a substantial market
correction--respond to the perceived crisis. Will they see the glass half empty
or half full? We don't know.
While we are dwelling on things on our watch list, we should also mention
the strong dollar. Despite the enormous advances in the quality of American made
goods in a wide variety of industries, the strong dollar will restrain exports
and currency translation will have an adverse impact on the earnings of U.S.
based multi-national companies. Longer term, we must also be sensitive to the
fact that substantial cost reductions and productivity gains in American
industry over the last five years may be close to running their course. In other
words, profit margins are unlikely to advance further.
We don't view a market correction as bad news. In general, we are not
exposed to those sectors and individual companies that have benefited most from
investor euphoria and which are, therefore, most vulnerable to a dramatic change
in investor sentiment. If anything, a market correction should provide a more
level playing field for disciplined investors focusing on the fundamental value
of individual stocks. We are just now emerging from a two year period in which
fundamentals mattered much less than market momentum. We are entering what may
prove to be an extended period in which stock pickers excel.
To Index or not Index - The New Rhetoric
In 1995 and 1996, the S&P 500 Index proved to be a difficult benchmark for
active managers of all stripes. It has been a particularly tough hurdle for
value investors who have been unwilling to pay sky high price/earnings multiples
for the mega-cap market darlings that have such an enormous impact on S&P 500
returns.
There are several dynamics that have favored the largest S&P 500 stocks
over the last several years. The first is the growth of S&P 500 Index funds
themselves. S&P 500 Index mutual funds have grown at four times the rate
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of actively managed mutual funds over the last five years. So, we have seen an
increasing amount of money chasing a finite number of large cap stocks and thus,
on a pure supply/demand basis, indexing has been a self fulfilling prophecy. In
addition, the substantial foreign money coming into the market is largely
devoted to the big cap, household name stocks that dominate the S&P. Finally,
active portfolio managers who have been under increasing pressure to be fully
invested regardless of their concerns over equity valuations have pumped money
into the large liquid stocks that comprise the S&P so that if something does go
wrong, they can get out in a hurry. Finally, stocks like Microsoft, Intel, P&G,
Coca-Cola and General Electric do benefit from faster growth in developing
economies.
With all of these factors favoring S&P 500 indexing, why bother doing
anything else? We offer two answers. The first is that longer term, valuations
do matter. Supply and demand are powerful forces in the market, but at some
stage, economic reality always asserts itself. In the early 1970's the "Nifty
Fifty", a group of terrific large cap growth companies, dominated the market.
The consensus was that these were "one decision" stocks which you simply had to
own and didn't ever have to worry about selling. At the peak, these stocks sold
at ludicrous multiples relative to their economic value. When the fertilizer hit
the market fan in 1973-74, they fell off a cliff. Even after one of the great
long-term bull markets in history, some of these original "nifty-fifty" stocks
still have market capitalizations below their 1972-73 peaks. We have not yet
witnessed that level of speculative excess in today's market favorites, but we
are seeing heady multiples that don't make economic sense. At some point,
investors will come to their senses and realize that even the best (soft drink,
household product, software, semi-conductor, movie company--pick one or more) is
not worth a price/earnings multiple two to three times its annual earnings
growth rate. Moreover, if earnings do not expand faster than revenues, and
interest rates continue to provide present "real" rates of return, then overall
stocks are unlikely to generate double-digit returns to investors.
Our second response is simply that what has gone up the most is likely to
fall the farthest with a major shift in investor sentiment. If and when we do
see net cash outflows from equities mutual funds, we suspect index funds will
get hit the hardest. Supply and demand is a two way street.
Must Carry
In an upset rivaling the University of Arizona's victory over Kentucky in
the 1997 NCAA basketball championship, the Supreme Court voted 5 to 4 to uphold
the "must carry" provision for local broadcast companies. The must carry rule
specified that cable television systems must make one-third of their channel
capacity available free to local broadcasters. Led by Ted Turner, the cable
television industry had challenged the rule on the grounds that it violated
their first amendment rights. The industry's economic goal was to free up
channel capacity for new cable television networks providing more popular
programming and paying the cable operator for channel space. The consensus of
the lawyers on both sides of the issue was the cable guys would win. However,
the Supreme Court decided that allowing cable operators to exclude local
broadcast channels would create undue economic hardship for many broadcasters
and threaten the survival of weaker independents.
Who are the winners and losers? The broadcasters, particularly those with
extensive UHF properties, get a renewed lease on life as they maintain and in
some cases add to their cable audience. The entrenched cable television
networks, like International Family Entertainment, Inc. (FAM - $20.375 - NYSE),
BET Holdings, Inc. (BTV - $29.625 - NYSE), Gaylord Entertainment Company (GET -
$21.50 - NYSE), HSN, Inc. (HSNI - $25.375 - NASDAQ) and Tele-Communications,
Inc./Liberty Media Group (LBTYA - $19.9375 - NASDAQ), benefit
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because with cable channel capacity still restrained, the value of their "slots"
with cable operators increase in value. For example, the prospective value of
International Family Entertainment to a News Corporation Limited (NWS - $18.00 -
NYSE), which is trying to expand distribution of its programming, increases
substantially. The biggest losers are the cable television network wannabes who
will have to wait until cable operators complete upgrades to their systems
before channel space is available.
In This Corner Wearing the Red Trunks . . .
A heavyweight battle is unfolding between Hilton Hotels Corporation (HLT -
$24.25 - NYSE) CEO Stephen Bollenbach and ITT Corporation (ITT - $58.875 - NYSE)
Chairman Rand Araskog. Bollenbach landed the first punch with an unsolicited $56
per share offer for ITT. Araskog responded by selling off non-core assets like
ITT's 50% ownership of MSG (Madison Square Garden, the Knicks, and the Rangers)
to partner Cablevision Systems Corporation (CVC - $29.75 - ASE) and ITT's 6%
stake in French telecommunications giant Alsthom SA (ALA - $23.75 - NYSE). ITT's
Educational Services and Worldwide Yellow Pages businesses are also on the
block. For the time being, Bollenbach is circling the ring waiting for Araskog
to counter-attack. What does this wily veteran of many takeover battles have up
his sleeve? Our guess is that, aside from serving K-rations to corporate staff,
he will further build up his cash reserves for a self tender in the $60 plus per
share range. If this happens, we expect Bollenbach to wade in looking for a
merger. It's still too early in what should be a full fifteen rounder to predict
the winner. We're betting that shareholders of both these firms will benefit
from these corporate heavyweights slugging it out.
Preferred Stock - Q & A
The Board of Directors of The Gabelli Global Multimedia Trust Inc. has
authorized management to consider an offering of preferred stock. The actual
amount of capital to be raised, the dividend rate and the timing of the offering
have not been determined and would be announced at a later date. The proceeds
raised would be used for investment purposes and the offering would be made only
by means of a prospectus. We thought we would discuss some questions about
preferred stock.
Q: What is Preferred Stock?
Preferred stock is a form of equity investment which has certain rights
that differ from those of common stock. In our case, the Preferred Stock would
typically be issued at $25 per share with a fixed dividend rate. The Trust is
obligated to pay this dividend to the Preferred Shareholders before any
dividends are paid to the common shares. Thereafter, any return earned in excess
of this dividend rate would work to benefit the Common Shareholders.
Q: How would Preferred Shares benefit Common Shareholders?
Through March 31, 1997, the Multimedia Trust has earned a 10.9% average
annual return. The only obligation that the Trust would have to the Preferred
Shareholders is to pay the stated dividend rate. Given the current market
environment, we feel that this is an opportunity to take advantage of relatively
low long-term interest rates and to earn an excess return for our Common
Shareholders consistent with our conservative investment approach. We expect
that the Preferred Shares will be issued with a dividend rate which is less than
the Trust's 10.9% average annual return. Any return earned in excess of the
stated dividend rate would directly benefit Common Shareholders; however, any
shortfall from the stated rate would impact the Common Shareholder in the
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opposite fashion. Therefore, by taking advantage of the current relatively low
interest rate environment and achieving our investment objectives, a Preferred
Share issuance offers what we believe is a conservative method of adding wealth
for our Common Shareholders.
As an additional benefit, since a Preferred Offering would increase the
Trust's overall capital base, fixed costs of the Trust would be spread over more
assets. Thus, a lower expense ratio would work to benefit Common Shareholders.
Furthermore, Common Shareholders stand to receive certain tax benefits as
a result of a Preferred Stock offering. Since taxable income is allocated to the
Preferred Shareholders before Common Shareholders, taxable distributions to
Common Shareholders would not be required to the extent they would be if the
Preferred Shares were not outstanding. Common Shareholders would avoid having to
pay taxes on that portion of taxable income that previously would have been
distributed to them. By deferring these taxable distributions and taxes
associated therewith, the net asset value of the common shares would grow at a
faster rate.
Q: Why is the Trust considering Preferred Shares?
Right now, long-term interest rates are at relatively low levels. The
dividend rate that the Trust would be required to pay on the Preferred Shares is
directly related to long-term rates. In this environment, we have a great
opportunity to create value by earning a return in excess of the Preferred's
dividend rate over the long term. Therefore, we believe this represents an
opportunistic time for the Trust to take advantage of these low rates.
Q: Will Gabelli Funds, Inc. be paid a management fee on the Preferred Capital?
If such an offering was completed, the Adviser has agreed to waive the
management fee on the incremental assets if the return on the Trust does not
exceed the stated dividend rate on the preferred shares.
Let's Talk Stocks
The following are stock specifics on selected holdings of the Multimedia
Trust. Favorable EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) prospects do not necessarily trans late into higher stock prices,
but they do express a positive trend which we believe will develop over time.
BC TELECOM Inc. (BCT - $21.85 - TSE) is a full-service telecommunications
company operating in British Columbia, Canada. Its major investor is GTE
Corporation (GTE - $45.50 - NYSE), which owns 52% of the company. We estimate
the private market value of BCT to be $50 per share. Its basic telephone
operations provide service to more than two million telephone lines and are
growing at twice the Canadian industry average. BCT's crown jewel is a rapidly
growing cellular phone company which currently serves 324,850 subscribers. We
expect BCT to take advantage of the deregulatory trend in Canada by entering new
businesses in which they are now allowed to participate.
Grupo Televisa S.A. (TV - $24.24 - NYSE) is a Mexican-based entertainment
company that dominates the Spanish speaking world through its fully integrated
mix of content and distribution. The stock has suffered in line with the Mexican
market and economy. Nevertheless, it remains an excellent vehicle for accessing
the growth in disposable
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income among the Spanish speaking population on a global basis. Its business mix
includes film, music, cable television and broadcasting. Grupo Televisa also has
valuable holdings in PanAmSat Corporation (SPOT - $28.75 - NASDAQ) and Univision
Communications Inc. (UVN - $32.625 - NYSE).
Pacific Telecom, Inc. is a Vancouver, WA-based telecommunications company, whose
primary business is delivering local exchange services to rural and suburban
markets across the western and mid-western states. Pacific Telecom also has
cellular telephone interests in 29 rural and metropolitan markets representing
about two million POPS. Effective September 27, 1995, Pacific Telecom's majority
shareholder, PacifiCorp., acquired the remaining shares it did not previously
own at a price of $30.00. We believe the intrinsic value of Pacific Telecom to
be in excess of $50.00 and are seeking dissenters rights to capture this value
for our shareholders. We placed PacifiCorp in our Hall of Shame for the way it
froze out minority shareholders.
Seagram Company Ltd. (VO - $38.25 - NYSE), with its 1995 purchase of an 80%
interest in MCA from Matsushita Electric Industrial Co. for $5.7 billion,
operates two global businesses: beverages and entertainment/ communications.
Seagram produces and markets distilled spirits, wines, fruit juices and mixers.
Major beverage brands include Chivas Regal, Absolut, Martell, Mumm, Crown Royal,
Seagram's Gin and Tropicana and Dole fruit juices. MCA's film and entertainment
activities feature Universal Studios. MCA also has music and recreation
operations. Seagram owns about 14.7% of Time Warner common stock. We estimate
that Seagram's PMV exceeds $50 per share.
Telecomunicacoes Brasileiras SA (Telebras) (TBR - $102.375 - NYSE) is the
Brazilian government-controlled monopoly telecommunications holding company
consisting of 28 subsidiaries serving more than 14 million telephone lines and
two million cellular customers in a country with a population of 160 million.
The penetration rate is less than 9% for telephone and 1% for cellular. The
stock is attractively priced at less than five times our estimate of 1997 cash
flow. Future opportunities include the prospects of privatization, strong line
growth and improvements in efficiency. The company is benefiting from an
improved rate structure which allows the company to recoup inflation-related
cost increases on a more consistent basis.
Tele-Communications, Inc./Liberty Media Group (LBTYA - $19.9375 - NASDAQ) owns a
collection of interests in some of the most powerful programming entities in the
world. Liberty Media is the second largest investor in Time Warner (TWX - $43.25
- - NYSE), the world's largest media company. Liberty Media, News Corporation Ltd.
(NWS - $18.00 - NYSE), and Tele-Communications International, Inc. (TINTA -
$12.875 - NASDAQ) have created a global sports joint-venture, called Fox Sports,
that will offer an integrated package of sports programming across network
broadcast, national cable, and regional cable channels. Liberty's 49% owned
Discovery Communications is a major advertiser-supported basic cable network
that includes the flagship Discovery Channel, The Learning Channel, and
developing businesses such as Discovery Europe and Animal Planet. We consider
Liberty Media to be ideally positioned to benefit from expanding distribution
channels, including direct broadcast satellite ventures like DirecTV and the
Internet.
Telefonica de Espana (TEF - $71.75 - NYSE) is a diversified telecommunications
service provider offering services to more than 15 million lines. The company
also services a fast growing cellular subscriber base which now exceeds two
million subscribers. We consider TEF an ideal way to invest in Latin America,
with a diversified portfolio of telecommunication operations in the region. Its
portfolio of publicly-traded Latin American companies
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includes: Compania Telefonos Chile, Telefonica de Argentina S.A. and Compania
Peruana de Telefonos. TEF also holds interests in non-public Latin American
telecom operations in Mexico, Colombia, Puerto Rico, Uruguay and Venezuela. The
company's long-term strategy is to create a Pan-American network, leveraging the
Spanish-speaking world. TEF jump-started this effort with its decision to form a
global alliance with British Telecom/MCI's Concert plc, which is gaining
momentum in the race to become the dominant provider of one-stop shopping for
full-service, global telecommunications products.
Time Warner Inc. (TWX - $43.25 - NYSE), having completed its acquisition of
Turner Broadcasting in the fourth quarter of 1996, is the world's largest
diversified media and publishing company. The combined companies have more than
$23 billion in revenues and over $4.5 billion in EBITDA. Together they control a
host of powerful media brands, such as CNN, Warner Brothers film, HBO, Cinemax
and Time and People magazines. Under the leadership of Chairman Gerald Levin and
Vice-Chairman Ted Turner, Time Warner is now focused on reducing its almost $13
billion debt and simplifying its capital structure. Achievement of both goals
would be greatly aided by a successful restructuring of the Time Warner
Entertainment partnership with U.S. West Media Group.
Viacom Inc. (VIA - $32.625 - ASE; VIA'B - $33.125 - ASE), long a major provider
of entertainment "content", has evolved into one of the world's dominant media
companies. Following its acquisitions of Paramount Communications and
Blockbuster Entertainment, the company is now divesting non-core assets to
reduce debt and is focusing on the global expansion of its media franchises. The
company has divested its cable systems subsidiary in a transaction with
Tele-Communications, Inc. which has reduced Viacom's debt by $1.7 billion and
the number of common shares outstanding by about 4%. Its radio group, Evergreen
Media, is being sold for $1.1 billion in cash. Viacom is well-positioned in
music (notably MTV) and cable networks such as Nickelodeon, USA (50% interest)
and the Sci-Fi Channel.
Multimedia Trust Share Repurchase
At a special meeting of the Board of Directors on July 3, 1996, the Board
authorized the repurchase of up to 500,000 shares of the Multimedia Trust's
outstanding shares. On February 26, 1997, the Board voted to increase the
authorized shares which may be repurchased to 750,000 shares. The Multimedia
Trust may from time to time purchase shares of its capital stock in the open
market when the shares are trading at a discount of 10% or more from the net
asset value of the shares. Through March 31, 1997, 400,000 shares were
repurchased in the open market.
Internet
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, quarterly reports, closing prices, IRAs, 401(k)s and other
current news. You can also send us e-mail at [email protected].
In Conclusion
In our year-end 1996 letter to you, we expressed our doubts about the
market's ability to duplicate its substantial gains in 1995 and 1996. After
getting off to a strong start, the market lost momentum and then sputtered badly
at the end of the first quarter of 1997 as strong economic data re-ignited
inflationary fears. As we write, the jury is still out on inflation, but long
interest rates are above 7%, providing sizeable "real" rates of return. Looking
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ahead, we anticipate a continually volatile stock market that will have many
investors on the edge of their seats. We rest somewhat more comfortably having
been through such uneasy times before and having faith that our value oriented
discipline will sustain us as it has in the past.
In closing, we thank you for your confidence in our investing abilities
and will strive to achieve our shared investment objective of strong
risk-adjusted returns.
Sincerely,
/s/ Mario J. Gabelli
Mario J. Gabelli, CFA
President and Chief Investment Officer
May 1, 1997
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Top Ten Holdings
March 31, 1997
--------------
Time Warner, Inc. Viacom, Inc.
Telecomunicacoes Brasileiras SA (Telebras) Pacific Telecom, Inc.
Telefonica de Espana Seagram Company Ltd.
Tele-Communications, Inc./Liberty Media Group BC Telecom, Inc.
International Family Entertainment Grupo Televisa S.A.
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NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period of this report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
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The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS - 76.9%
COPYRIGHT/CREATIVITY COMPANIES - 32.2%
Advertising - 0.0%
200 Havas Advertising, SA ........................... $ 23,814
200 Publicis SA ..................................... 21,041
-----------
44,855
-----------
Cable Programmers - 7.9%
3,000 BET Holdings, Inc., Class A+ .................... 88,875
15,000 CANAL+, Sponsored ADR ........................... 590,444
25,000 Flextech plc+ ................................... 256,043
30,000 Gaylord Entertainment Company,
Class A ...................................... 645,000
50,000 HSN, Inc.+ ...................................... 1,268,750
100,000 International Family Entertainment, Inc.,
Class B+ ..................................... 2,037,500
112,500 Tele-Communications, Inc./Liberty
Media Group, Class A+ ........................ 2,242,969
-----------
7,129,581
-----------
Diversified Publishers - 10.9%
10,000 American Media Inc., Class A+ ................... 58,750
10,000 Arnoldo Mondadori Editore SpA ................... 62,837
25,000 Belo (A.H.) Corporation, Class A ................ 925,000
2,500 Central Newspapers, Inc., Class A ............... 125,312
4,000 Dow Jones & Company Inc. ........................ 162,500
700 Filipacchi Medias ............................... 186,351
30,000 Golden Books Family
Entertainment, Inc.+ ......................... 277,500
22,000 Harcourt General, Inc. .......................... 1,023,000
13,000 Harte-Hanks Communications Inc. ................. 378,625
2,000 Houghton Mifflin Company ........................ 108,000
60,639 Independent Newspapers Ltd., ORD ................ 326,580
11,000 Knight-Ridder, Inc. ............................. 438,625
9,000 K-III Communications Corp.+ ..................... 101,250
20,000 Lee Enterprises, Incorporated ................... 485,000
12,000 Media General, Inc., Class A .................... 340,500
36,000 Meredith Corporation ............................ 832,500
60,000 Nation Multimedia Group plc ..................... 172,221
100,000 New Straits Times Press Berhad .................. 613,336
100,000 Oriental Press Group ORD ........................ 40,007
10,000 Playboy Enterprises, Inc., Class A .............. 146,250
80,000 Post Publishing Company Ltd. .................... 127,915
30,000 Pulitzer Publishing Company ..................... 1,297,500
3,000 Reader's Digest Association, Inc.,
Class B ...................................... 81,000
40,000 Singapore Press Holdings, Ltd. .................. 728,280
500,000 South China Morning Post Holdings ORD ........... 425,878
300 SPIR Communication .............................. 28,097
5,000 Thomas Nelson Inc. .............................. 52,500
4,000 Times Mirror Company, Class A ................... 218,500
50,000 Times Publishing Ltd. ........................... 109,034
200 Wiley (John) & Sons, Inc., Class A .............. 6,125
1,000 Wolters Kluwer NV ............................... 120,230
-----------
9,999,203
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Entertainment Production - 1.5%
22,000 All American Communications Inc.,
Class B+ ..................................... 233,750
7,000 Ascent Entertainment Group Inc.+ ................ 74,375
4,000 Cinergi Pictures Entertainment Inc.+ ............ 5,500
2,000 DMX Inc.+ ....................................... 3,438
13,000 EMI Group plc, Sponsored ADR .................... 230,750
7,000 Grammy Entertainment plc+ ....................... 94,124
3,500 Granada Group plc ............................... 52,705
10,000 GTECH Holdings Corporation+ ..................... 301,250
1,000 Harvey Entertainment Company+ ................... 7,562
10,000 Katz Media Group Inc.+ .......................... 63,750
1,000 Lancit Media Productions, Ltd.+ ................. 5,250
300 NRJ SA .......................................... 41,159
877 People's Choice TV Corporation+ ................. 2,302
100,000 Shaw Brothers (Hong Kong) Ltd. .................. 103,243
20,000 Spelling Entertainment Group, Inc.+ ............. 115,000
3,250 THORN plc, ADR+ ................................. 36,156
1,700 Tring International Group ....................... 321
-----------
1,370,635
-----------
Global Media and Entertainment - 10.2%
69,000 Grupo Televisa SA, GDR .......................... 1,716,375
25,000 Havas, Sponsored ADR ............................ 450,000
21,000 News Corporation Limited, ADS ................... 378,000
2,000 PolyGram NV ..................................... 98,500
48,000 Seagram Company Ltd. ............................ 1,836,000
1,000 Sony Corporation, ADR ........................... 69,125
55,000 Time Warner Inc. ................................ 2,378,750
57,000 Viacom Inc., Class A+ ........................... 1,859,625
7,000 Walt Disney Company ............................. 511,000
-----------
9,297,375
-----------
Hotels/Gaming - 0.8%
2,500 Churchhill Downs Incorporated ................... 94,375
5,000 Hilton Hotels Corporation ....................... 121,250
5,000 ITT Corporation, New+ ........................... 294,375
50,000 Ladbroke Group plc .............................. 184,647
2,500 Quintel Entertainment Inc.+ ..................... 28,125
-----------
722,772
-----------
Information Publishing - 0.2%
2,500 Berlitz International Inc.+ ..................... 55,937
20,000 Data Broadcasting Corporation+ .................. 107,500
1,000 Dun & Bradstreet Corp. .......................... 25,375
1,000 Scholastic Corporation+ ......................... 28,250
-----------
217,062
-----------
10
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (continued)
COPYRIGHT/CREATIVITY COMPANIES (continued)
Software - 0.7%
1,000 Activision Inc.+ ................................ $ 11,250
7,000 BBN Corporation+ ................................ 116,375
1,000 Electronic Arts Inc.+ ........................... 26,625
2,000 Excaliber Technologies Corporation .............. 13,500
8,000 H&R Block Inc. .................................. 235,000
1,000 Intel Corporation ............................... 139,125
1,500 Microsoft Corporation+ .......................... 137,531
200 Netscape Communications Corp.+ .................. 6,012
100 Pixar Inc.+ ..................................... 1,787
-----------
687,205
-----------
TOTAL COPYRIGHT/CREATIVITY COMPANIES .............................. 29,468,688
-----------
DISTRIBUTION COMPANIES - 44.7%
Broadcasting - 10.4%
70,000 Ackerley Group, Inc. ............................ 918,750
1,000 Audiofina ....................................... 43,490
3,000 Baton Broadcasting Inc.+ ........................ 21,677
7,000 BHC Communications, Inc., Class A ............... 736,750
3,000 British Sky Broadcasting Group,
Sponsored ADR ................................ 181,875
18,000 CanWest Global Communications Corp. ............. 265,328
2,000 Carlton Communications plc,
Sponsored ADR ................................ 85,812
17,261 Chris-Craft Industries, Inc. .................... 683,957
2,000 Clear Channel Communications, Inc.+ ............. 85,750
15,000 Cox Radio Inc., Class A+ ........................ 311,250
500 Emmis Broadcasting Corporation,
Class A+ ..................................... 19,344
200 Europe 1 Communication+ ......................... 43,611
750 Evergreen Media Corporation, Class A+ ........... 21,892
500 EZ Communications Inc., Class A+ ................ 19,750
3,560 Fisher Companies Inc. ........................... 430,760
3,000 General Electric Company ........................ 297,750
5,000 Granite Broadcasting Corporation+ ............... 48,125
8,750 Gray Communications Systems, Inc. ............... 159,687
40,000 Gray Communications Systems, Inc.,
Class B ...................................... 680,000
5,000 Grupo Radio Centro, SA de CV, ADR ............... 43,125
2,000 Heritage Media Corporation, Class A+ ............ 36,750
500 Jacor Communications, Inc.+ ..................... 13,812
700 LaGardere Groupe ................................ 22,641
25,000 LIN Television Corporation+ ..................... 906,250
400 Metropole TV M6 SA .............................. 40,590
1,100 Nippon Television Broadcasting .................. 301,650
7,500 NTN Communications Inc.+ ........................ 31,406
42,000 Paxson Communications Corporation,
Class A+ ..................................... 451,500
781 SAGA Communications, Incorporated,
Class A+ ..................................... 16,206
2,000 Scandinavian Broadcasting
System SA+ ................................... 36,000
25,000 Sistem Televisyen Malaysia Berhad ............... 52,456
50,000 Television Broadcasting Ltd. ORD ................ 203,259
2,000 Television Francaise 1 .......................... 200,107
40,000 Tokyo Broadcasting System ....................... 569,487
10,000 United Television, Inc. ......................... 876,250
35,000 Westinghouse Electric Corp. ..................... 621,250
-----------
9,478,297
-----------
Cable - 4.6%
3,000 Bell Cablemedia plc, ADR+ ....................... 47,250
40,000 Cablevision Systems Corporation,
Class A+ ..................................... 1,190,000
5,000 Century Communications Corporation,
Class A+ ..................................... 23,125
8,000 Comcast Corporation, Class A .................... 131,000
1,000 Comcast Corporation, Class A Special ............ 16,875
3,000 Comcast U.K. Cable Partners Limited,
Class A+ ..................................... 33,375
4,000 General Cable plc, ADR+ ......................... 59,500
3,000 NTL Incorporated+ ............................... 64,500
2,000 NYNEX CableComms Group plc, ADR+ ................ 33,250
2,000 Rogers Communications, Inc.,
Class B+ ..................................... 12,500
5,000 Telewest Communications plc,
Sponsored ADR+ ............................... 86,875
80,000 Tele-Communications, Inc., Class A+ ............. 960,000
45,000 Tele-Communications International, Inc.,
Class A+ ..................................... 579,375
95,000 United International Holdings, Inc.,
Class A+ ..................................... 902,500
5,000 Videotron Groupe Ltd. ........................... 41,368
100 Wireless One Inc.+ .............................. 350
-----------
4,181,843
-----------
Consumer Services - 0.2%
3,000 Department 56, Inc.+ ............................ 52,125
12,000 Ticketmaster Group Inc.+ ........................ 153,000
-----------
205,125
-----------
Entertainment Distribution - 2.1%
120,000 Cineplex Odeon Corporation+ ..................... 180,000
22,000 GC Companies, Inc.+ ............................. 863,500
1,500 LodgeNet Entertainment Corporation+ ............. 15,750
19,500 Shaw Communications Inc.,
Class B, Conv. ............................... 137,379
40,000 US WEST Media Group+ ............................ 745,000
-----------
1,941,629
-----------
11
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (continued)
DISTRIBUTION COMPANIES (continued)
Equipment - 0.7%
6,000 General Instrument Corporation+ ................. $ 137,250
7,000 Lucent Technologies, Inc. ....................... 369,250
1,000 Northern Telecom Limited ........................ 65,375
1,000 Philips Electronics N.V., New York .............. 44,500
3,000 Scientific-Atlanta, Inc. ........................ 45,750
-----------
662,125
-----------
Information Services - 0.1%
2,000 Cognizant Corporation ........................... 58,250
-----------
International Telephone - 12.1%
80,000 BC TELECOM Inc. ................................. 1,748,618
15,000 BCE Inc. ........................................ 690,000
5,000 BHI Corporation ................................. 96,875
28,000 Cable & Wireless plc, Sponsored ADR ............. 665,000
48,000 Compania de Telecomunicaciones
de Chile SA, Sponsored ADR ................... 1,380,000
500 CPT Telefonica del Peru, ADR .................... 11,125
200,000 CPT Telefonica del Peru, Class B ................ 443,439
2,000 Deutsche Telekom AG, ADR+ ....................... 43,750
1,000 Esprit Telecom Group plc, ADR+ .................. 11,875
6,000 GST Telecommunications, Inc.+ ................... 45,000
20 Japan Telecom Co., Ltd. ......................... 338,133
10 Nippon Telegraph & Telephone Corp. .............. 70,458
1,000 PT Telekomunikasi Indonesia ..................... 30,125
3,000 Quebec-Telephone ................................ 50,941
1,800 Telecom Argentina Stet-France
Telecom SA, Sponsored ADR .................... 82,800
1,000 Telecom Corporation of New
Zealand Ltd., ADR ............................ 71,000
150,000 Telecom Italia SpA .............................. 374,327
22,000 Telecomunicacoes Brasileiras SA
(Telebras), Sponsored ADR .................... 2,252,250
3,000 Telefonica de Argentina SA,
Sponsored ADR ................................ 88,125
29,000 Telefonica de Espana, Sponsored ADR ............. 2,080,750
14,000 Telefonos De Mexico SA, Class L, ADR ............ 539,000
-----------
11,113,591
-----------
Satellite - 2.4%
100 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR+ ................ 2,563
35,000 COMSAT Corporation, Series 1 .................... 853,125
6,500 EchoStar Communications Corporation,
Class A+ ..................................... 133,250
8,000 General Motors Corporation, Class H ............. 434,000
1,000 Globalstar Telecommunications + ................. 53,500
7,000 Orion Network Systems, Inc.+ .................... 60,375
1,500 PanAmSat Corporation+ ........................... 43,125
1,100 PT Indonesia Satellite, ADR ..................... 29,425
60,000 TCI Satellite Entertainment Inc.,
Class A+ ..................................... 465,000
10,000 U.S. Satellite Broadcasting Co.+ ................ 107,500
-----------
2,181,863
-----------
Telecommunications - 0.9%
2,000 Bruncor Inc. .................................... 43,354
15,000 Frontier Corporation ............................ 268,125
1,000 Hellenic Telecommunication
Organization SA (OTE) ........................ 21,648
6,000 Metromedia International Group Inc.+ ............ 52,125
2,000 MIDCOM Communications Inc.+ ..................... 16,000
3,000 NewTel Enterprises Limited ...................... 52,458
3,000 Philippine Long Distance Telephone
Company ...................................... 179,625
13,500 Tel-Save Holdings, Inc.+ ........................ 195,750
-----------
829,085
-----------
Telecommunications - Long Distance - 1.1%
12,000 AT&T Corp. ...................................... 417,000
50 DDI Corp. ....................................... 315,886
7,000 Sprint Corporation .............................. 318,500
-----------
1,051,386
-----------
US Regional Operators - 4.2%
500 Cincinnati Bell Inc. ............................ 28,250
38,000 C-TEC Corporation, Class B+ ..................... 1,116,250
14,000 GTE Corporation ................................. 652,750
64,200 Pacific Telecom, Inc.(a) ........................ 1,926,000
1,000 Pacific Telesis Group Inc. ...................... 37,750
800 Teleport Communications Group Inc.,
Class A+ ..................................... 18,400
1,000 US WEST Communications Group .................... 34,000
-----------
3,813,400
-----------
Wireless Communications - 5.9%
50,000 Aerial Communications Inc.+ .................... 275,000
10,000 AirTouch Communications Inc.+ ................... 230,000
6,000 American Paging Inc.+ ........................... 21,000
5,000 BCE Mobile Communications Inc.+ ................. 151,740
1,000 CAI Wireless Systems, Inc.+ ..................... 1,719
50,000 Centennial Cellular Corp., Class A+ ............. 518,750
25,000 Century Telephone Enterprises, Inc. ............. 737,500
6,000 CoreComm Inc.+ .................................. 87,000
3,000 Loral Space & Communications Ltd.+ .............. 42,375
10,000 NEXTEL Communications, Inc.,
Class A+ ..................................... 133,750
800 Omnipoint Corporation+ .......................... 7,800
7,000 Palmer Wireless Inc., Class A+ .................. 85,750
2,000 Pittencrieff Communications, Inc.+ .............. 7,125
1,000 Qualcomm, Inc.+ ................................. 56,375
12
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (continued)
DISTRIBUTION COMPANIES (continued)
Wireless Communications (continued)
24,000 Rogers Cantel Mobile Communications,
Inc., Class B+ ............................... $ 441,000
2,000 Rural Cellular Corp., Class A+ .................. 21,000
400,000 Telecom Italia Mobile SpA ....................... 1,149,013
25,000 Telephone and Data Systems, Inc. ................ 959,375
5,000 360(degrees)Communications Company+ ............. 86,250
22,000 Total Access Communications plc ................. 137,500
10,000 U.S. Cellular Corporation+ ...................... 248,750
1,000 WinStar Communications Inc.+ .................... 11,625
-----------
5,410,397
-----------
TOTAL DISTRIBUTION COMPANIES ...................................... 40,926,991
-----------
TOTAL COMMON STOCKS ............................................... 70,395,679
-----------
PREFERRED STOCKS - 2.2%
Broadcasting - 0.2%
4,000 Granite Broadcasting Corporation,
Preference Shares ............................ 196,000
-----------
Cable - 0.1%
2,500 Cablevision Systems Corporation,
Series 1, 8.500%, Conv. Pfd. ................. 51,563
-----------
Entertainment - 0.1%
4,000 AMC Entertainment, Inc.,
$1.75, Conv. Pfd. ............................ 136,000
-----------
Global Media and Entertainment - 1.0%
60,000 News Corporation Limited, Sponsored
ADR Preference Shares ........................ 892,500
-----------
Wireless Communications - 0.8%
14,141 AirTouch Communications Inc.,
Series B, 6.000%, Pfd. ....................... 362,363
8,000 AirTouch Communications Inc.,
Series C, 4.250%, Pfd. ....................... 350,000
-----------
712,363
-----------
TOTAL PREFERRED STOCKS ............................................ 1,988,426
-----------
COMMON STOCK WARRANTS AND RIGHTS - 0.0%
114 Globalstar Telecommunications, Rights,
expires 04/30/1997+ .......................... 3,068
10,000 Oriental Press Group, Warrants,
expires 10/02/1998+ .......................... 490
-----------
TOTAL COMMON STOCK WARRANTS AND RIGHTS ............................ 3,558
-----------
Principal Market
Amount Value
------ -----
CORPORATE BONDS - 2.2%
Cable - 2.0%
$1,500,000 HSN, Inc., Conv. Sub. Deb., 5.875%
due 03/01/2016, 144A(c) . .................... $ 1,612,500
300,000 Tele-Communications International, Inc.,
Conv. Sub. Deb., 4.500%
due 02/15/2006 ............................... 225,750
-----------
1,838,250
-----------
Entertainment Production - 0.1%
100,000 Viacom Inc., Sub. Deb.,
8.000% due 07/07/2006 ........................ 93,500
-----------
Equipment - 0.1%
100,000 Trans-Lux Corporation, Conv. Deb.,
7.500% due 12/01/2006 ........................ 104,750
-----------
TOTAL CORPORATE BONDS ............................................. 2,036,500
-----------
U.S. TREASURY BILLS - 12.5%
11,454,000 4.874% to 5.274%++
due 04/03/1997 - 05/22/1997 .................. 11,434,314
-----------
TOTAL INVESTMENTS (Cost $84,849,473)(b) ................. 93.8% 85,858,477
OTHER ASSETS AND LIABILITIES (NET) ...................... 6.2 5,687,518
----- -----------
NET ASSETS .............................................. 100.0% $91,545,995
===== ===========
NET ASSET VALUE ($91,545,995 / 11,128,848
shares outstanding) ............................ $8.23
=====
- ----------
(a) Security fair valued by the Board of Directors.
(b) Aggregate cost for Federal tax purposes was $76,110,753. Net
unrealized appreciation for Federal tax purposes was $9,747,724 (gross
unrealized appreciation was $13,856,395 and gross unrealized
depreciation was $4,108,671).
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933, as amended. The security may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
The market value of this security at March 31, 1997 was $1,612,500,
representing 1.76% of total net assets.
+ Non-income producing security
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
ADS - American Depositary Share
GDR - Global Depositary Receipt
ORD - Ordinary Share
13
<PAGE>
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) 336-6983.
Shareholders wishing to liquidate reinvested shares held at State Street
Bank and Trust Company must do so in writing or by telephone. Please submit your
request to the above mentioned address or telephone number. Include in your
request your name, address and account number. The cost to liquidate shares is
$2.50 per transaction as well as the brokerage commission incurred. Brokerage
charges are expected to be less than the usual brokerage charge for such
transactions.
If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at such participating institutions will have dividends
automatically reinvested. Shareholders wishing a cash dividend at such
institution must contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the
Plan in lieu of cash dividends is determined in the following manner. Under the
Plan, whenever the market price of the 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
14
<PAGE>
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 divi dend 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 the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The 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 $10,000. State Street Bank and Trust Company
will use these funds to purchase shares in the open market on or about the 15th
of each month. State Street Bank and Trust Company will charge each shareholder
who participates $0.75, plus a pro rata share of the brokerage com missions.
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 the 15th of the month. Funds not received at least five days before
the investment date shall be held for investment in the following month. 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, bro chures are available by calling (914) 921-5070
or by writing directly to the Multimedia Trust.
15
<PAGE>
[THIS PAGE LEFT INTENTIONALLY BLANK]
16
<PAGE>
DIRECTORS AND OFFICERS
THE GABELLI GLOBALMULTIMEDIA TRUST INC.
One Corporate Center, Rye, NY 10580-1434
Directors
Mario J. Gabelli, CFA
Chairman
Dr. Thomas E. Bratter
President, John Dewey Academy
Bill Callaghan
President, Bill Callaghan Associates
Felix J. Christiana
Former Senior Vice President
Dollar Dry Dock Savings Bank
James P. Conn
Managing Director/Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
Karl Otto Pohl
Former President, Deutsche Bundesbank
Anthony R. Pustorino
Certified Public Accountant
Professor, Pace University
Salvatore J. Zizza
Chairman & Chief Executive Officer,
The Lehigh Group, Inc.
Officers
Mario J. Gabelli, CFA
President & Chief Investment Officer
Bruce N. Alpert
Vice President & Treasurer
James E. McKee
Secretary
Investment Advisor
Gabelli Funds, Inc.
One Corporate Center
Rye, New York 10580-1434
Custodian
State Street Bank and Trust Company
Counsel
Willkie Farr & Gallagher
Transfer Agent and Registrar
State Street Bank and Trust Company
Stock Exchange Listing
NYSE-Symbol: GGT
Shares Outstanding 11,128,848
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "General Equity Funds," in Saturday's The New York Times and
"Specialized Equity Funds" 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 1-800-GABELLI
(1-800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: http://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 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>
------------------
THE GABELLI GLOBAL MULTIMEDIA TRUST INC. FIRST CLASS MAIL
One Corporate Center U.S. POSTAGE
Rye, NY 10580-1434 PAID
Internet: http://www.gabelli.com RYE, NY
e-mail: [email protected] PERMIT No. 109
------------------
First Quarter Report
March 31, 1997
03/97
