Third Quarter Report
[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
September 30, 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,
[PHOTO OMITTED]
[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
In the third quarter of 1997, buoyed by low inflation, solid corporate
earnings, and ongoing merger and acquisition activity, stocks posted solid
gains. In the process, the market overcame global currency instability and
attendant concerns regarding the earnings prospects for multi-national consumer
staple companies like Coca-Cola, Gillette, and Proctor and Gamble. As
demonstrated by the Fund's outstanding returns, stock pickers like us were more
than adequately rewarded for our efforts.
For the nine months ended September 30, 1997, The Gabelli Global
Multimedia Trust Inc.'s ("Multimedia Trust") net asset value per share increased
24.7% to $10.09 on September 30, 1997. This compares to the average 18.9%
increase of the 200 Global Funds tracked by Lipper Analytical Services. For the
third quarter ended September 30, 1997, the Fund's net asset value increased
8.7%. Since its inception on November 15, 1994, the Multimedia Trust's net asset
value has achieved a 56.7% total return after adjusting for the rights offering
and all distributions. This equates to a 16.9% average annual return.
The Multimedia Trust's common shares ended the third quarter at $8.5625
per share on the New York Stock Exchange, up 13.2% for the quarter and an
increase of 24.6% for the year. The common shares have increased 24.7% since
inception after adjusting for all distributions and the rights offering.
What We Do
The success of momentum investing in recent years and investors' desire
for instant gratification have combined to make value investing appear dull. At
the risk of being dull, we will once again describe the "boring" value approach
that has seen us through both good and bad markets over the last 3 years at The
Gabelli Global Multimedia Trust and for over 20 years at Gabelli Asset
Management Company. 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
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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 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 stocks 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. equities 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 the globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as an 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 September 30, 1997. The geographic allocation 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.
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 FOLLOWING TABLE WAS DEPICTED AS A PIE GRAPH IN THE PRINTED MATERIAL]
HOLDINGS BY GEOGRAPHIC REGION - 9/30/97
United States 74.7%
Europe 12.3%
Latin America 5.1%
Canada 4.2%
Asia/Pacific Rim 3.7%
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE GRAPH IN THE PRINTED MATERIAL]
Distribution 61.3%
Copyright/Creativity 38.7%
The chart at the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of September 30, 1997.
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COMMENTARY
The Economy and the Stock Market: "Bear Watch"
In view of still favorable economic and investment demographic trends, the
Dow Jones Industrial Average is fairly, if not fully, valued at around 8,000. We
do not see many rampant excesses in the current market, but the margin of safety
is razor thin. As the doctors in charge of your financial health, we are always
looking for things that may cause investor indigestion. Accordingly, we are
keeping a close watch on the following developments that may cause us to change
our economic and market diagnoses.
Inflation Watch
In 1981-82, then President Reagan dealt a knockdown blow to labor by
breaking the air traffic controllers strike. The settlement in the recent UPS
strike may indicate labor is finally getting up off the canvas. Labor represents
about two-thirds of U.S. industries' total costs. If labor is making a comeback,
we may see more inflation than the consensus expects.
Profit Taking
Wall Street was soundly in favor of a reduction in the capital gains tax
rate. Long-term, it is a positive for stocks. However, shorter-term, it may
entice investors to take some profits. Increased profit taking could temporarily
alter the very favorable supply/demand profile stocks have enjoyed for the last
several years.
Currency Turmoil - Asian Flu
Thus far, the currency crises in Thailand, the Philippines, Malaysia, and
Singapore have not spread to the Hong Kong dollar, which is the most stable and
critical currency in the region. The same is true in Latin America, where the
recent run on the Brazilian real has failed to upset the Mexican peso. If this
currency virus were to spread further, world-wide stock markets would likely
experience some vertigo.
Stormy Weather
On the food front, El Nino, the unusual weather pattern that threatens
warm, wet weather throughout the U.S. may play havoc with commodities prices. A
late planting season in the Midwest could send food prices higher. A warm winter
throughout the Northern states could send fuel prices lower while oil continues
to be in short-term imbalance on the supply side. This could impact earnings
patterns for companies in a range of industry groups.
Having listed some of the things that could disrupt a still favorable
backdrop for the economy and stock market, let us acknowledge the positives.
Inflation remains restrained. With a historically large spread between inflation
and interest rates along the yield curve, rates could trend down from current
levels. Corporate earnings should grow by 8% to 9% in 1998. We do not believe
price/earnings multiples are likely to expand substantially in the year ahead,
but earnings progress could push the stock market higher. Specific to the
Multimedia Trust, which
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owns many smaller companies in attractive niche businesses, the lower capital
gains tax rate should help promote even more deal activity in smaller firms
since family managements will be able to keep more of the proceeds from any such
transactions.
Indexing Revisited
In our first quarter 1997 report, we examined the phenomenon of S&P 500
Index fund investing and its impact on the market. In defending active
management in general and our value style in particular, we voiced two concerns
about S&P indexing. First, that valuations do matter and that the valuations for
the mega-cap growth stocks, which have such a disproportionate influence on the
capitalization weighted S&P, were more than a little rich. Second, that what
goes up the most is most vulnerable to any change in investor perception.
Our concerns were validated in August, when Coca-Cola (KO - $61.00 - NYSE)
and Gillette (G - $86.3125 - NYSE) plummeted following warnings of modestly
slowing growth. They took a few other large-cap market favorites with them,
dragging the S&P 500 down 5.6% for the month. Broader market indices held
relatively steady in August, with the mid-cap S&P 400 down just 0.1% and the
Russell 2000 gaining 2.3%.
Does this mean investors are abandoning blue chips with bloated valuations
and once again focusing on the kind of fundamental values more readily available
elsewhere? It's too early to tell. Coke, Gillette and many other mega-cap
branded consumer goods companies have bounced off their lows, and despite still
fanciful valuations, could regain momentum. Of importance is that, for the first
time in years, investors got a taste of what can happen to the S&P 500 when
something goes wrong for a few of its heavily weighted component stocks. It may
be more than just a coincidence that in the week ending September 24, there was
a net outflow from S&P 500 Index funds for the first time in two years.
We will continue to preach for our own church. Valuations do matter and,
over time, investors who buy good companies at bargain prices will generate very
attractive returns. Value investors may not outperform momentum players in an
euphoric market environment like 1995-96; they should, however, excel in flat
and down markets. The tortoise and the hare analogy is valid. We know who wins
the race in the end.
Cable Television Networks: Get Them While They're Hot
When we began accumulating cable television network companies, they were
priced like straw hats in winter. Today, they are hot retail items. Within the
last six months, Fox purchased International Family Entertainment, the Johnson
family and Liberty Media (LBTYA - $29.9375 - NASDAQ) agreed to jointly buy BET
Holdings Inc. (BTV - $52.875 - NYSE), Westinghouse (WX - $27.0625 - NYSE)
announced the acquisition of The Nashville Network and Country Music Channel
from Gaylord Entertainment (GET - $25.8125 - NYSE), and Seagram's (VO - $35.25 -
NYSE) negotiated the purchase of the other 50% of the USA Network from partner
Viacom (VIA - $31.4375 - ASE). All of these deals are being done at cash flow
multiples in the high teens. With the U.S. Supreme Court upholding "must carry"
rules that require cable systems to air local network programming, entrenched
cable networks are of increasing value to entertainment software producers and
distributors, particularly in a "capacity" constrained cable world.
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Most of the smaller independent cable network companies are gone or going
from our portfolio at very nice premiums to our purchase prices. MAY THEY REST
IN PEACE. We still own major cable network operators like Liberty Media (with
stakes in The Discovery Channel, Court TV, Black Entertainment Television, QVC,
Home Shopping Network, Liberty Sports Networks and Time Warner, a
"clearinghouse" of cable network properties), Viacom (MTV, VH1 and Nickelodeon),
Time Warner (TWX - $54.1875 - NYSE) (CNN, CNBC, TNT and the new Cartoon
Channel), Seagram's (soon to be 100% owner of the USA Network) and Cablevision
Systems (CVC - $62.75 -ASE) (Rainbow cable network properties). With the
exception of Liberty Media, these are not pure cable network plays. The relative
success of their other businesses will have a material impact on their stock
prices. However, we do not believe the full value of these companies' cable
network operations are reflected in their current stock prices.
Preferred Stock -- An Investment For The Future
In the first quarter, the Board of Directors of The Gabelli Global
Multimedia Trust authorized management to consider an offering of preferred
stock. On June 4, 1997, the Trust successfully completed its offering of
cumulative preferred stock which was rated 'aaa' by Moody's Investors Service
Inc. Shareholder response has been positive and we appreciate the efforts of
Smith Barney and Gabelli & Company, Inc., the underwriters, and wish to thank
and welcome all those investors who participated.
The Trust issued 1,250,000 Preferred Shares at $25 with an annual dividend
rate of $1.98 per share paying semi-annually starting in December 1997. The
Preferred Shares are trading on the New York Stock Exchange under the symbol GGT
Pr. We thought we would answer 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 was
issued at $25 per share with a fixed dividend rate of $1.98. The Trust is
obligated to pay this dividend to the Preferred Shareholders before any
dividends are paid to the holders of 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?
From its inception on November 15, 1994 through September 30, 1997, the
Multimedia Trust has earned a 16.9% average annual return. The only obligation
that the Trust has to the Preferred Shareholders is to pay the stated dividend
rate. Given the current market environment, we considered this to be an ideal
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. Any return earned in excess of the stated
dividend rate, which is less than the Trust's average annual return, would
directly benefit Common Shareholders; however, any shortfall from the stated
rate would impact the Common Shareholders in the opposite fashion. Therefore, by
taking advantage of the current relatively low interest rate environment and
achieving our investment objectives, the Preferred Share issuance offers what we
believe is a conservative method of adding wealth for our Common Shareholders.
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Furthermore, Common Shareholders stand to receive certain tax benefits as
a result of the Preferred Stock offering. Since taxable income is allocated to
the Preferred Shareholders before Common Shareholders, taxable distributions to
Common Shareholders are not required to the extent they would be if the
Preferred Shares were not outstanding. Common Shareholders thus 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 are likely to
grow at a faster rate.
Q: Why did the Trust consider Preferred Shares?
Right now, long-term interest rates are at relatively low levels. The
dividend rate that the Trust is required to pay on the Preferred Shares is
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?
With the completion of the preferred offering, 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.
Q: What were the offering costs involved with the Preferred Shares?
Consistent with our conservative approach, the Trust issued the Preferred
Shares in a cost efficient manner at less than $0.12 per share. Although this
offering crimped our year-to-date results -- 24.7% versus 26.4% had the
Preferred Shares not been issued -- this modest investment provides the
underpinnings for successful returns in the future.
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 translate into higher stock prices,
but they do express a positive trend which we believe will develop over time.
Ascent Entertainment Group Inc. (GOAL - $11.50 - NASDAQ) operates entertainment,
distribution and production businesses. Ascent owns 57% of On Command Corp. and
owns the Denver Nuggets and the Colorado Avalanche. The Denver Arena Co., a
division of Ascent, is building a new arena in Denver to house these
professional basketball and hockey teams.
Cablevision Systems Corp. (CVC - $62.75 - ASE), based in Woodbury, NY, is a
major cable TV operator serving 2.9 million subscribers, including managed
systems. CVC's cable systems generate average monthly subscriber revenues among
the highest in the industry. CVC has exercised its option to purchase ITT's 50%
stake in MSG (Madison Square Garden) Properties, including the NY Knicks and NY
Rangers. Cablevision is also purchasing Tele-Communications Inc.'s ten New York
area cable properties with roughly 820,000 subscribers by issuing over 12
million shares (a one-third interest in the company) and assuming about $670
million of TCI's debt. The company's new, vigorous activity includes the sale of
a 40% stake in Rainbow Sports to a News Corp./TCI joint venture with the
proceeds used to pay down a significant portion of MSG's debt. With its upgraded
cable systems,
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CVC is well-positioned to offer telephony, high speed data and enhanced video
services.
Gaylord Entertainment Co. (GET - $25.8125 - NYSE) has completed the sale of its
two cable television networks, The Nashville Network (TNN) and Country Music
Television (CMT) to Westinghouse. The company's remaining operations, which
include Opryland USA and an entertainment and convention/resort complex in
Nashville, were spun-off to its shareholders and retain the Gaylord
Entertainment name.
Grupo Televisa SA (TV - $35.8125 - NYSE) is a Mexico-based entertainment company
that dominates the Spanish speaking world through its fully integrated mix of
content and distribution. The company is an excellent vehicle for accessing the
growth in disposable income among the Spanish speaking population on a global
basis. The business mix includes film, music, cable television and broadcasting.
Grupo Televisa also has valuable holdings in PanAmSat (SPOT - $43.125 - NASDAQ)
and Univision Communications (UVN - $54.25 - NYSE). A five year restructuring
plan - "Televisa 2000" - is designed to cut costs by $90 million annually over
the next three years and to raise Televisa's cash flow margin by more than 25%.
LIN Television Corp. (LNTV - $46.625 - NASDAQ) is the subject of a bidding
contest after an initial low ball bid for the company. Hicks, Muse, Tate & Furst
increased its $47.50 bid to acquire LIN to $55 per share plus interest at an
effective rate of 8% per annum from February 15, 1998 through closing. The move
comes as broadcasters buy stations around the country following the enactment of
the new telecommunications law that boosted the percentage of homes TV
broadcasters can reach. The move also gives AT&T, which owns 45% of LIN, a way
to cash out its investment before a 1998 deadline by which it had to either buy
the rest of LIN or put the company up for sale. Hicks Muse is paying a multiple
of over 13 times LIN's broadcast cash flow.
Rhone-Poulenc Rorer Inc. (RPR - $96.6875 - NYSE) announced that its majority
shareholder, Rhone-Poulenc SA, made a $4.5 billion ($97 per share) bid to
acquire the 31.7% stake of Rhone-Poulenc Rorer that it does not already own.
Rhone-Poulenc also said it will combine its chemicals and fibers and polymers
activities into an independent company that will be floated on the stock market
in 1998. The plan is the latest in a series of restructurings that have
transformed the global chemical and pharmaceutical industries during the decade.
Driven by a desire to break up conglomerates, most large groups that once
included both chemicals and pharmaceutical businesses have opted to focus on one
activity or the other.
Tele-Communications Inc./Liberty Media Group (LBTYA - $29.9375 - 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, the world's
largest media company. Liberty Media, News Corp. and Tele-Communications
International Inc. (TINTA - $16.375 - NASDAQ) have created a global sports joint
venture, Fox Sports, that offers 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.
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Telecomunicacoes Brasileiras SA (Telebras) (TBR - $128.75 - NYSE) is the
Brazilian, government-controlled, monopoly telecommunications holding company
consisting of 28 subsidiaries serving more than 14.2 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. In October, the Brazilian Ministry of
Communications announced the breakup of the company into three regional, nine
cellular and one long distance company.
Time Warner Inc. (TWX - $54.1875 - 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, 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 in debt and simplifying its capital structure. Cash flow in 1997 is
demonstrating a substantial increase as the companies reap the synergies of
their merged activities.
Viacom Inc. (VIA - $31.4375 - ASE; VIA'B - $31.625 - 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 divested its cable systems subsidiary in a transaction with
Tele-Communications Inc. which 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. Until the company divests of its
publishing business and Blockbuster, Viacom will remain a loaded laggard. 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. In total, through September 30, 1997, 419,833 shares
were repurchased in the open market.
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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
Little has changed in the favorable economic backdrop for stocks. That
does not necessarily mean there are not potential problems that could upset the
market apple cart. Barring any unexpected economic dilemmas, stocks should
continue to deliver respectable returns. More important, in our view, the market
is broadening and investors once again appear to be focusing on fundamental
value. Already, strong deal activity is gaining momentum. The capital gains tax
cut should encourage smaller niche companies' "urge to merge" in the year ahead.
We close ever mindful of the potholes that will invariably challenge
equities investors, but remain confident the Fund's portfolio is well-positioned
to endure the long investment journey to your financial success.
Sincerely,
/s/ Mario J. Gabelli
Mario J. Gabelli, CFA
President and Chief Investment Officer
October 25, 1997
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Top Ten Holdings
September 30, 1997
Rhone-Poulenc Rorer, Inc. TCI-Liberty Media Group
LIN Television Cablevision Systems Corp.
Ascent Entertainment Corp. Grupo Televisa S.A.
Time Warner, Inc. Telecomunicacoes Brasileiras SA (Telebras)
Viacom, Inc. Gaylord Entertainment Co.
- --------------------------------------------------------------------------------
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 -- September 30, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS -- 72.8%
COPYRIGHT/CREATIVITY COMPANIES -- 28.2%
Advertising -- 0.0%
200 Havas Advertising, SA................................ $ 24,327
200 Publicis SA ......................................... 18,933
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43,260
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Cable Programmers -- 5.8%
4,000 BET Holdings Inc., Class A +......................... 211,500
15,000 CANAL, Sponsored ADR +............................... 534,176
6,000 Flextech plc +....................................... 58,262
83,000 Gaylord Entertainment Co., Class A................... 2,142,438
48,000 HSN Inc. +........................................... 1,950,000
112,500 Tele-Communications Inc./
Liberty Media Group, Class A +..................... 3,367,969
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8,264,345
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Diversified Publishers -- 7.3%
10,000 American Media Inc., Class A +....................... 85,000
10,000 Arnoldo Mondadori Editore SpA........................ 73,318
19,000 Belo (A.H.) Corp., Class A........................... 921,500
2,500 Central Newspapers Inc., Class A .................... 185,625
4,000 Dow Jones & Co. Inc. ................................ 187,000
700 Filipacchi Medias.................................... 140,698
27,000 Golden Books Family Entertainment Inc. +............. 300,375
14,000 Harcourt General Inc................................. 693,875
10,000 Harte-Hanks Communications Inc. ..................... 329,375
4,000 Houghton Mifflin Co.................................. 151,000
58,000 Independent Newspapers Ltd., ORD ................... 337,908
10,000 Knight-Ridder Inc. .................................. 546,250
9,000 K-III Communications Corp. +......................... 108,563
21,000 Lee Enterprises Inc.................................. 595,875
8,000 McGraw-Hill Companies Inc. .......................... 541,500
10,000 Media General Inc., Class A.......................... 396,250
34,000 Meredith Corp........................................ 1,126,250
70,000 Nation Multimedia Group.............................. 62,081
90,000 New Straits Times Press Berhad ...................... 271,677
100,000 Oriental Press Group ORD ........................... 32,308
10,000 Playboy Enterprises Inc., Class A.................... 133,125
80,000 Post Publishing Co. Ltd. ............................ 72,626
26,000 Pulitzer Publishing Co. ............................. 1,469,000
2,000 Reader's Digest Association Inc.,
Class B ........................................... 57,000
30,000 Singapore Press Holdings Ltd. ....................... 441,609
250,000 South China Morning Post Holdings ORD................ 227,772
300 SPIR Communication .................................. 21,406
20,000 Thomas Nelson Inc.................................... 277,500
4,000 Times Mirror Co., Class A............................ 219,750
50,000 Times Publishing Ltd................................. 111,874
10,000 United News & Media plc, ADR......................... 253,125
200 Wiley (John) & Sons Inc., Class A ................... 7,850
1,000 Wolters Kluwer NV.................................... 135,296
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10,514,361
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Entertainment Production -- 4.6%
22,000 All American Communications Inc.,
Class B +.......................................... 500,500
4,450 American Radio Systems Corp. ........................ 211,931
360,000 Ascent Entertainment Group Inc. + ................... 4,140,000
4,000 Cinergi Pictures Entertainment Inc. +................ 8,375
12,523 EMI Group plc, Sponsored ADR......................... 218,553
7,000 Grammy Entertainment plc +........................... 57,486
3,500 Granada Group plc ................................... 49,496
7,000 GTECH Holdings Corp. +............................... 239,313
1,000 Harvey Entertainment Co. +........................... 13,375
85,000 Katz Media Group Inc. +.............................. 871,250
1,000 Lancit Media Productions Ltd. +...................... 3,375
300 NRJ SA............................................... 40,825
2,877 People's Choice TV Corp. +........................... 8,631
100,000 Shaw Brothers (Hong Kong) Ltd........................ 104,032
20,000 Spelling Entertainment Group Inc. +.................. 183,750
1,700 Tring International Group ........................... 295
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6,651,187
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Global Media and Entertainment -- 8.7%
70,000 Grupo Televisa SA, GDR............................... 2,506,875
22,000 Havas, Sponsored ADR ................................ 363,000
21,000 News Corp. Ltd., ADS ................................ 429,188
2,000 PolyGram NV ......................................... 114,875
45,000 Seagram Co. Ltd. .................................... 1,586,250
1,000 Sony Corp., ADR ..................................... 93,938
65,000 Time Warner Inc. .................................... 3,522,188
110,000 Viacom Inc., Class A +............................... 3,458,125
5,000 Walt Disney Co. ..................................... 403,125
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12,477,564
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Hotels/Gaming -- 1.2%
2,500 Churchhill Downs Inc. ............................... 110,000
1,000 Gaming Lottery Corp.................................. 4,078
20,000 ITT Corp., New +..................................... 1,355,000
60,847 Ladbroke Group plc................................... 267,672
2,500 Quintel Entertainment Inc. +......................... 28,750
----------
1,765,500
----------
Information Publishing -- 0.2%
4,000 Berlitz International Inc. +......................... 106,250
25,000 Data Broadcasting Corp. +............................ 168,750
1,000 Dun & Bradstreet Corp................................ 28,375
500 Scholastic Corp. +................................... 19,750
----------
323,125
----------
Software -- 0.4%
1,000 Activision Inc. +.................................... 15,000
500 Electronic Arts Inc. +............................... 19,313
10
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- September 30, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
COPYRIGHT/CREATIVITY COMPANIES (Continued)
Software (Continued)
1,000 Excaliber Technologies Corp.......................... $ 12,250
8,000 H&R Block Inc. ...................................... 309,000
1,000 Intel Corp........................................... 92,313
500 Microsoft Corp. +.................................... 66,156
200 Netscape Communications Corp. +...................... 7,200
100 Pixar Inc. +......................................... 2,363
----------
523,595
----------
TOTAL COPYRIGHT/CREATIVITY COMPANIES................................ 40,562,937
----------
DISTRIBUTION COMPANIES -- 44.6%
Broadcasting -- 10.3%
70,000 Ackerley Group Inc................................... 1,264,375
1,000 Audiofina ........................................... 40,055
3,000 Baton Broadcasting Inc. +............................ 36,910
7,000 BHC Communications Inc., Class A..................... 906,500
3,000 British Sky Broadcasting Group,
Sponsored ADR ..................................... 136,313
18,000 CanWest Global Communications Corp................... 349,774
2,000 Carlton Communications plc,
Sponsored ADR ..................................... 84,000
750 Chancellor Media Corp., Class A +.................... 39,469
27,260 Chris-Craft Industries Inc. ......................... 1,436,261
1,000 Clear Channel Communications Inc. +.................. 64,875
9,000 Cox Radio Inc., Class A +............................ 254,813
500 Emmis Broadcasting Corp., Class A +.................. 23,875
200 Europe 1 Communication +............................. 44,121
3,560 Fisher Companies Inc................................. 430,760
4,000 General Electric Co. ................................ 272,250
5,000 Granite Broadcasting Corp.+.......................... 59,375
8,750 Gray Communications Systems Inc. .................... 220,938
40,000 Gray Communications Systems Inc.,
Class B ........................................... 1,000,000
5,000 Grupo Radio Centro, SA de CV, ADR.................... 86,563
500 Jacor Communications Inc. +.......................... 22,097
700 LaGardere Groupe..................................... 22,282
1,000 Liberty Corp. ....................................... 45,250
100,000 LIN Television Corp. +............................... 4,662,500
400 Metropole TV M6 SA................................... 40,571
1,100 Nippon Television Broadcasting....................... 396,924
4,000 NTN Communications Inc. +............................ 8,500
40,000 Paxson Communications Corp., Class A +............... 465,000
976 SAGA Communications Inc., Class A +.................. 23,668
2,000 Scandinavian Broadcasting System SA +................ 48,000
25,000 Sistem Televisyen Malaysia Berhad ................... 26,798
50,000 Television Broadcasting Ltd. ORD .................... 177,048
2,200 Television Francaise 1 .............................. 190,787
40,000 Tokyo Broadcasting System............................ 708,377
1,000 TV Azteca, S.A. de C.V. +............................ $ 22,500
10,000 United Television Inc. .............................. 1,042,500
----------
14,654,029
----------
Cable -- 5.6%
50,000 Cablevision Systems Corp., Class A +................. 3,137,500
5,000 Century Communications Corp.,
Class A +.......................................... 38,125
6,000 Comcast Corp., Class A............................... 153,750
1,000 Comcast Corp., Class A Special....................... 25,750
3,000 Comcast U.K. Cable Partners Ltd.,
Class A +.......................................... 30,750
2,000 General Cable plc, ADR +............................. 18,500
3,000 NTL Inc. +........................................... 79,125
2,000 Mercom Inc........................................... 18,000
20,000 Rogers Communications Inc., Class B +................ 120,000
52,742 TCI Ventures Group +................................. 1,087,801
10,000 Telewest Communications plc,
Sponsored ADR +.................................... 135,000
57,258 Tele-Communications Inc., Class A + ................. 1,173,791
50,000 Tele-Communications International Inc.,
Class A +.......................................... 818,750
100,000 United International Holdings Inc.,
Class A +.......................................... 1,225,000
5,000 Videotron Groupe .................................... 36,186
100 Wireless One Inc. +.................................. 325
----------
8,098,353
----------
Consumer Services -- 0.5%
1,000 Department 56 Inc. +................................. 28,938
30,000 Ticketmaster Group Inc. +............................ 697,500
----------
726,438
----------
Entertainment Distribution -- 1.7%
120,000 Cineplex Odeon Corp. +............................... 217,500
22,000 GC Companies Inc. +.................................. 946,000
19,500 Shaw Communications Inc.,
Class B, conv. .................................... 180,640
1,500 TCI Music Inc. +..................................... 11,063
50,000 US WEST Media Group +................................ 1,115,625
----------
2,470,828
----------
Equipment -- 0.8%
2,000 CommScope Inc. +..................................... 27,125
1,500 General Semiconductor Inc. +......................... 19,313
3,000 Lucent Technologies Inc.............................. 244,125
2,000 NextLevel Systems Inc. +............................. 33,500
1,000 Northern Telecom Ltd................................. 103,938
1,000 Philips Electronics N.V., New York .................. 84,000
3,000 Scientific-Atlanta Inc............................... 67,875
25,000 Sterling Electronics Corp. +......................... 510,938
----------
1,090,814
----------
11
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- September 30, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Healthcare -- 6.7%
100,000 Rhone-Poulenc Rorer Inc..............................$ 9,668,750
----------
Information Services -- 0.0%
1,000 Cognizant Corp....................................... 40,750
----------
International Telephone -- 7.6%
70,000 BC TELECOM Inc. ..................................... 1,808,576
30,000 BCE Inc. ............................................ 896,250
5,000 BHI Corp............................................. 102,500
28,000 Cable & Wireless plc, Sponsored ADR ................. 724,500
30,000 Compania de Telecomunicaciones de
Chile SA, Sponsored ADR............................ 971,250
500 CPT Telefonica del Peru, ADR ........................ 11,813
200,000 CPT Telefonica del Peru, Class B..................... 469,299
2,000 Deutsche Telekom AG, ADR +........................... 38,125
2,000 Esprit Telecom Group plc, ADR +...................... 11,875
6,000 GST Telecommunications Inc. +........................ 83,250
20 Japan Telecom Co., Ltd............................... 279,360
10 Nippon Telegraph & Telephone Corp. .................. 92,289
1,000 PT Telekomunikasi Indonesia.......................... 22,375
3,000 Quebec-Telephone..................................... 57,536
3,600 Telecom Argentina Stet-France Telecom
SA, Sponsored ADR ................................. 109,575
2,000 Telecom Corp. of New Zealand Ltd., ADR............... 81,000
17,500 Telecomunicacoes Brasileiras SA
(Telebras), Sponsored ADR.......................... 2,253,125
3,000 Telefonica de Argentina SA,
Sponsored ADR ..................................... 109,875
22,000 Telefonica de Espana, Sponsored ADR.................. 2,070,750
14,000 Telefonos De Mexico SA, Class L, ADR ................ 724,500
----------
10,917,823
----------
Satellite -- 0.9%
100 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR +..................... 2,863
6,000 EchoStar Communications Corp.,
Class A +............................................ 145,500
5,000 General Motors Corp., Class H ....................... 330,625
2,000 Globalstar Telecommunications +...................... 105,000
7,000 Orion Network Systems Inc. +......................... 119,875
2,000 PT Indonesia Satellite, ADR ......................... 52,500
70,000 TCI Satellite Entertainment Inc.,
Class A +......................................... 529,375
5,000 U.S. Satellite Broadcasting Co. +.................... 43,125
----------
1,328,863
----------
Telecommunications -- 1.7%
2,000 Bruncor Inc.......................................... 52,108
40,000 Frontier Corp........................................ 920,000
1,075 Hellenic Telecommunication
Organization SA (OTE).............................. $ 27,004
6,000 Metromedia International Group Inc. +................ 72,750
1,000 MIDCOM Communications Inc. +......................... 6,875
3,000 NewTel Enterprises Ltd. ............................. 59,815
6,000 Philippine Long Distance Telephone Co................ 162,750
20,000 Southern New England
Telecommunications Corp............................ 818,750
3,000 Telegroup Inc. +..................................... 31,500
12,000 Tel-Save Holdings Inc. +............................. 288,750
----------
2,440,302
----------
Telecommunications -- Long Distance -- 0.8%
13,000 AT&T Corp. .......................................... 576,063
50 DDI Corp. ........................................... 251,923
7,000 Sprint Corp.......................................... 350,000
----------
1,177,986
----------
US Regional Operators -- 1.7%
1,000 Cincinnati Bell Inc.................................. 28,438
35,000 C-TEC Corp., Class B +............................... 1,721,563
12,000 GTE Corp. ........................................... 544,500
731 SBC Communications Inc............................... 44,865
800 Teleport Communications Group Inc.,
Class A +.......................................... 35,900
1,000 US WEST Communications Group......................... 38,500
----------
2,413,766
----------
Wireless Communications -- 6.3%
62,000 Aerial Communications Inc. +........................ 554,125
5,000 AirTouch Communications Inc. + ...................... 177,188
10,000 American Paging Inc. +............................... 20,625
5,000 BCE Mobile Communications Inc. +..................... 173,150
3,552 Cable & Wireless Communications plc,
ADR................................................ 69,261
1,000 CAI Wireless Systems Inc. +.......................... 1,531
40,000 Centennial Cellular Corp., Class A +................ 685,000
24,000 Century Telephone Enterprises Inc. .................. 1,056,000
35,000 COMSAT Corp. ........................................ 833,438
6,000 CoreComm Inc. +...................................... 99,000
26,000 Iridium World Communications Ltd. ................... 1,072,500
5,000 Loral Space & Communications Ltd. +.................. 103,125
8,000 NEXTEL Communications Inc., Class A +................ 231,000
3,000 Omnipoint Corp. +.................................... 65,625
1,000 Palmer Wireless Inc., Class A +...................... 17,500
2,000 Pittencrieff Communications Inc. +................... 11,500
1,000 Price Communications Corp. .......................... 8,688
1,000 Qualcomm Inc. +...................................... 63,688
23,000 Rogers Cantel Mobile Communications
Inc., Class B +.................................... 406,813
2,000 Rural Cellular Corp., Class A +...................... 23,500
350,000 Telecom Italia Mobile SpA ........................... 1,392,863
12
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- September 30, 1997 (Unaudited)
================================================================================
Principal
Amount or Market
Shares Value
------ -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Wireless Communications (Continued)
25,000 Telephone and Data Systems Inc..................... $ 1,125,000
5,000 360(degree)Communications Co. +.................... 104,375
18,000 Total Access Communications plc ................... 59,400
11,000 U.S. Cellular Corp. +.............................. 405,625
15,000 WinStar Communications Inc. +...................... 287,813
------------
9,048,333
------------
TOTAL DISTRIBUTION COMPANIES...................................... 64,077,035
------------
TOTAL COMMON STOCKS............................................... 104,639,972
------------
PREFERRED STOCKS -- 1.5%
Broadcasting -- 0.2%
4,500 Granite Broadcasting Corp.,
Preference Shares................................ 270,000
------------
Entertainment -- 0.1%
4,000 AMC Entertainment Inc., $1.75,
Conv. Pfd. ...................................... 134,750
------------
Global Media and Entertainment -- 0.8%
62,765 News Corp. Ltd., Sponsored ADR
Preference Shares................................ 1,125,847
------------
Wireless Communications -- 0.4%
13,000 AirTouch Communications Inc.,
Series B, 6.000%, Pfd. .......................... 423,313
3,000 AirTouch Communications Inc.,
Series C, 4.250%, Pfd............................ 169,313
------------
592,626
------------
TOTAL PREFERRED STOCKS............................................ 2,123,223
------------
COMMON STOCK WARRANTS AND RIGHTS -- 0.0%
10,000 Oriental Press Group, Warrants,
expires 10/02/1998 +............................. 322
------------
TOTAL COMMON STOCK WARRANTS AND RIGHTS ........................... 322
------------
CORPORATE BONDS -- 1.6%
Cable -- 1.4%
$ 1,200,000 HSN Inc., Conv. Sub. Deb., 5.875%
due 03/01/2016, 144A (b) ........................ 1,830,000
300,000 Tele-Communications International Inc.,
Conv. Sub. Deb., 4.500% due
02/15/2006 ...................................... 252,375
------------
2,082,375
------------
Entertainment Production -- 0.1%
100,000 Viacom Inc., Sub. Deb., 8.000%
due 07/07/2006 .................................. 100,000
------------
Principal Market
Amount Value
------ -----
Equipment -- 0.1%
$ 100,000 Trans-Lux Corp., Conv. Deb., 7.500%
due 12/01/2006 .................................. $ 123,000
------------
Software -- 0.0%
50,000 BBN Corp., Conv. Sub. Deb., 6.000%
due 4/01/2012 ................................... 48,500
------------
TOTAL CORPORATE BONDS............................................. 2,353,875
------------
U.S. TREASURY BILLS -- 24.6%
35,415,000 4.84% to 5.01% ++
due 10/16/1997 -- 11/28/1997..................... 35,240,522
------------
TOTAL INVESTMENTS (Cost $118,824,768) (a)............. 100.5% 144,357,914
OTHER ASSETS AND LIABILITIES (NET).................... (0.5) (673,898)
----- ------------
NET ASSETS -- COMMON STOCK
(11,056,715 common shares outstanding).......................... 112,434,016
------------
NET ASSETS -- PREFERRED STOCK
(1,250,000 preferred shares outstanding)........................ 31,250,000
------------
TOTAL NET ASSETS...................................... 100.0% $143,684,016
===== ============
NET ASSET VALUE per common share
($111,615,891 / 11,056,715 shares
outstanding) ................................................... $10.09
======
- ----------
(a) Aggregate cost for Federal tax purposes was $118,904,320. Net unrealized
appreciation for Federal tax purposes was $25,453,594 (gross unrealized
appreciation was $27,181,242 and gross unrealized depreciation was
$1,727,648).
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. The security maybe resold in transactions exempt
from registration, normally to qualified institutional buyers. The
market value of this security at September 30, 1997 was $1,830,000,
representing 1.27% 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 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 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 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 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, brochures are available by calling (914) 921-5070
or by writing directly to the Multimedia Trust.
15
<PAGE>
[This page intentionally left blank]
<PAGE>
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA 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
Peter W. Latartara
Assistant Vice President
James E. McKee
Secretary
Investment Adviser
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 11,056,715
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.
One Corporate Center
Rye, NY 10580-1434
Internet: http:/ /www.gabelli.com
e-mail: [email protected]
Third Quarter Report
September 30, 1997
GGT 09/97
