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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
First Quarter Report
March 31, 1998
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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.
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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,
Driven by low inflation, low interest rates, good corporate earnings
gains, deals and liquidity (the continuing strong flow of cash into equities
funds), U.S. and European stock market indices posted strong gains in the first
quarter of 1998. Global multimedia stocks fared particularly well as evidenced
by our Fund's strong absolute and relative performance.
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THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
Investment Performance
For the twelve months ended March 31, 1998, The Gabelli Global Multimedia
Trust Inc.'s ("Multimedia Trust") net asset value per share increased 54.9% to
$11.62 on March 31, 1998. This compares to the average 27.1% increase of the 217
Global Funds tracked by Lipper Analytical Services. For the first quarter ended
March 31, 1998, the Fund's net asset value increased 17.3%. Since its inception
on November 15, 1994, the Multimedia Trust's net asset value has achieved a
97.9% total return after adjusting for the rights offering and all
distributions. This equates to a 22.4% average annual return.
The Multimedia Trust's common shares ended the first quarter at $10.1875
per share on the New York Stock Exchange, up 16.4% for the quarter and an
increase of 62.6% for the twelve-month period ending March 31, 1998. The common
shares have increased 62.8% 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.
[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
<PAGE>
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.
Corporate Governance
The Gabelli Global Multimedia Trust continues to consider actions that may
reduce or eliminate the market discount of its shares. How do we accomplish
this? There are several factors that historically have worked to narrow the
discounts of closed-end funds. One of these is a stock repurchase program, which
we instituted back in July of 1996.
Stock Repurchase Plan - Q & A
Q: What is a stock repurchase plan?
A stock repurchase plan allows a company to buy back its own shares in the
open market (in our case, the New York Stock Exchange). This reduces the total
number of shares outstanding and increases the earnings per share.
Q: When did the Multimedia Trust implement a stock repurchase plan?
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. 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 March 31, 1998, 582,433 shares were repurchased in
the open market.
Back on October 19, 1987, an affiliated closed-end fund, The Gabelli
Equity Trust, was the first company on the New York Stock Exchange to implement
a stock buyback program after the market crash. At the time, the Equity Trust
was trading at a discount to net asset value and represented an excellent value
for the Trust to acquire its own shares. This stock repurchase plan resulted in
the purchase of 800,000 shares in the open market from 1987 to 1988.
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Similarly, the first company on the New York Stock Exchange to announce a
stock repurchase program on October 27, 1997 - a day in which the market
declined 554.26 points, or 7.2% -- was our other affiliated closed-end fund, The
Gabelli Convertible Securities Fund.
Q: What is the benefit of a stock repurchase plan?
When the Multimedia Trust purchases its own shares at a discount to NAV,
the Trust realizes a benefit equal to the difference between the net asset value
and the purchase price. This benefit is credited to the net assets of the
remaining shares, thus boosting the NAV. The larger the discount, the greater
the benefit on the NAV.
The market price is determined by supply and demand factors. If there are
more sellers than buyers the price will decline until buyers enter the market to
establish a sales price. A stock repurchase program increases demand for the
Gabelli Global Multimedia Trust's shares in the open market. This provides a
willing buyer of fund shares which offsets, at least in part, sales of fund
shares.
THE PORTFOLIO OVERVIEW
Global Allocation
The chart at the right represents the Multimedia Trust's holdings by
geographic region as of March 31, 1998. 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.
HOLDINGS BY GEOGRAPHIC REGION - 3/31/98
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States Europe Canada Latin America Asia/Pacific Rim
------------- ------ ------ ------------- ----------------
80.6% 6.5% 5.1% 4.5% 3.3%
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 at the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of March 31, 1998.
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL]
Distribution Copyright/Creativity
------------ --------------------
59.2% 40.8%
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COMMENTARY
Ringing Up Profits
On the whole, the Trust's telecommunications holdings performed quite well
in the first quarter of 1998. Part of the group's move can be explained by
WorldCom and British Telecom's battle over MCI and to a lesser extent, SBC
Communications' (SBC - $43.625 - NYSE) bid for Southern New England Telephone
(SNG - $72.3125 - NYSE), which helped raise the valuation standards in the
industry. However, there are powerful long-term trends that we believe will
continue to fuel selected telephone stocks.
There are three factors that make global telephone stocks appealing. To
compete on the global economic stage, a modern telecommunications system is
essential. So, those companies operating in the less developed countries, (most
notably in our portfolio, Cable & Wireless (CWP - $37.75 - NYSE), which is
majority owner of Hong Kong Telephone, and Telefonica de Espana (TEF - $132.25 -
NYSE), which in addition to its domestic operations in Spain, also owns
significant chunks of Latin American telephone companies), have exceptional
growth potential. The second factor is privatization. Formerly government owned
telephone companies in Europe and Latin America are passing into the hands of
profit oriented investors and are being run more efficiently by private sector
managements. Finally, international boundaries are coming down and everyone is
jockeying for global market share. This will mean continued consolidation in the
industry and an increased number of joint venture partnerships that will surface
value for shareholders.
Cable television operators were also well represented on our performance
list, with General Cable (GCN - $14.00 - NYSE), Metromedia International Group
(MMG - $15.1875 - ASE), Comcast UK Cable (CMCAF - $13.375 -Nasdaq) and United
International Holdings (UIHIA - $16.75 - Nasdaq) standing out. Small group
broadcasters including Scandinavian Broadcasting (SBTVF - $33.00 - Nasdaq),
Ackerley Group (AK - $20.4375 - NYSE) and Paxon Communications (PAX - $11.125 -
ASE) also posted strong gains. These groups have performed particularly well
over the last year or so, but in our opinion, continue to offer value. We don't
think the upside of cable television operators' participation in the internet
transmission business is fully reflected in stock prices. Selected group
broadcasters should continue to perform well as advertising revenues remain
strong in the vibrant U.S. and European economies. Both industry groups will
likely continue to benefit from ongoing consolidation in their industries.
Patience Rewarded
In our 1997 Annual Report, we highlighted Seagram's (VO - $38.1875 - NYSE)
and Viacom (VIA - $53.125 - ASE) as relatively large portfolio holdings that did
not perform well in 1997 in what was quite a good year for the Fund. We reviewed
our assessment of the values, talked about some of the positive events happening
at each company and reaffirmed our commitment to these loaded laggards.
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Our patience has been rewarded with Seagram's stock gaining 18% and Viacom
stock climbing 30% in the first quarter of 1998. In the case of Seagram's, we
cannot isolate any single event responsible for the stock's excellent
performance this quarter. We think Wall Street finally did its homework and came
to the conclusion that the rather complex transaction with Home Shopping Network
and the purchase of the additional 50% of USA Network made good financial and
strategic sense.
The move in Viacom was quite literally "Titanic". This blockbuster will
certainly boost parent company Viacom's 1998 earnings. However, in our opinion,
the turnaround in the other Blockbuster (Blockbuster Entertainment, Viacom's
huge video rental business), will provide even greater benefits for the company
going forward. Especially important, the company continues to pare debt, with a
big paydown coming from the sale of Simon & Schuster's publishing operations.
Preferred Stock -- An Investment For The Future
In the first quarter of 1997, 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" and closed at $26.00 on March 31, 1998. 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 March 31, 1998, the
Multimedia Trust has earned a 22.4% 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,
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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.
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?
Long-term interest rates were at relatively low levels. The dividend rate
that the Trust is required to pay on the Preferred Shares was related to
long-term rates. In this environment, we had 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 represented 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 net asset value total
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 $0.13 per share. This modest
investment provided the underpinnings for successful returns in the future and
incrementally boosted the Trust's twelve month returns to 54.9% with the
preferred offering versus 42.4% had the Preferred Shares not been issued.
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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 - $10.3125 - Nasdaq) operates diversified
media and entertainment production and distribution businesses. Ascent owns 57%
of On Command Corp., the largest provider (by number of hotel rooms served) of
on-demand, in-room video entertainment services to the domestic lodging
industry. Ascent also owns two professional sports franchises: 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. The arena is expected to open for the 1999-2000 NBA and NHL
seasons.
BC Telecom Inc. (BCT - $38.84 - TSE), formerly British Columbia Telephone Co.,
is the second largest telecommunications services company in Canada. A
subsidiary of GTE owns 52% of the company. Its basic telephone operations
provide service to more than 2.5 million telephone lines and are growing at
rates much higher than the Canadian industry average. BCT's crown jewel is a
rapidly growing cellular phone company which currently serves over 407,000
subscribers. We expect BCT to take advantage of the deregulatory trend in Canada
by entering new businesses.
BET Holdings Inc. (BTV - $61.125 - NYSE) is a media and entertainment company
that primarily targets black consumers, a market that was estimated to have
spent over $450 billion in 1997. BTV's core business is Black Entertainment
Television (BET), an advertiser-supported cable television programming service.
Of the 70 million cable households in the U.S., BET reaches over 51 million. BET
on Jazz: The Cable Jazz Channel produced nearly 150 hours of original jazz
programming in 1997. Action Pay-Per-View's subscriber base has grown to over
nine million as the service expands beyond a traditional urban audience. The
company is leveraging its brand identity into markets including pay-per-view
movies, direct merchandising and magazine publishing. The $48 per share offer
from a group led by founder Robert Johnson to take BTV private has been
increased to $63 per share.
Cablevision Systems Corp. (CVC - $65.75 - ASE), based in Woodbury, NY, is a
major cable TV operator serving 2.9 million subscribers, including managed
systems. CVC's revenue per subscriber is the highest in the cable 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 has also
purchased Tele-Communications Inc.'s ten New York area cable properties with
roughly 820,000 subscribers by issuing over 12.2 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, CVC is
well-positioned to offer telephony, high speed data and enhanced video services.
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Grupo Televisa SA (TV - $36.625 - 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 - $60.875 - Nasdaq)
and Univision Communications (UVN - $37.25 - 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%.
Tele-Communications Inc./Liberty Media Group (LBTYA - $34.375 - 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. 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.
Telephone and Data Systems Inc. (TDS - $47.50 - ASE) is a domestic provider of
local telephone service to over 500,000 mostly rural access lines and is the
seventh largest cellular telephone company in the U.S. with a fast growing
paging business. TDS is oriented toward creating substantial shareholder value
(as opposed to focusing on near term earnings per share). Operating cash flow is
increasing, driven mainly by internal growth in cellular telephone. We expect
strong growth at TDS to increase its private market value. The company was
active in the PCS auctions and was the high bidder in eight markets with a
combined population of 27 million. TDS has investments in U.S. Cellular
(81%-owned), Aerial Communications (83%-owned) and American Paging (82%-owned).
TDS has announced a restructuring plan which is designed to unlock the value of
its business units.
Time Warner Inc. (TWX - $72.00 - NYSE), having completed its acquisition of
Turner Broadcasting, is the global leader in media and entertainment. The
combined companies have more than $24 billion in revenues and almost $5.4
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 $12 billion in debt and simplifying its
capital structure.
USA Networks, Inc. (USAI - $27.25 - Nasdaq) is a diversified entertainment and
electronic commerce company. Chairman and CEO Barry Diller has brought together
the following assets under one umbrella: the USA Network, the Sci-Fi Channel,
USA Networks Studios, USA Broadcasting, Home Shopping Network and Ticketmaster.
Plans are to integrate these assets, leveraging programming production
capabilities and electronic commerce across its strong distribution platform.
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Viacom Inc. (VIA - $53.125 - 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 its debt
of approximately $10 billion 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 four percent. Its
radio group, Evergreen Media, is being sold for $1.1 billion in cash. Its
publishing business, Simon & Schuster, has been put up for sale. Viacom is
well-positioned in music (notably MTV) and cable networks such as Nickelodeon.
Quips on Management
Our Chief Investment Officer, Mario J. Gabelli, was recently interviewed
by a leading investor relations consulting firm to discuss how we, as securities
analysts, evaluate corporate managements. We would like to share with you
excerpts from this interview . . .
"Ideally, we like to own great companies with great management. Our second
choice is great companies with mediocre management. Occasionally, we will take a
chance on mediocre companies with talented new management that we believe can
dramatically improve the business. Our rationale is simple - we believe a
princess who kisses a frog is more likely to turn into a frog than the frog is
to turn into a prince.
We don't feel we ask too much from corporate managements. We want them to
have vision as to how the world is changing and a sensible plan to position
their companies to take advantage of change rather than be overwhelmed by it. We
want them to be focused on competitive issues in their industry and be proactive
rather than reactive in meeting challenges from their competitors. We expect
CEOs and CFOs, who in our opinion, should be joined at the hip, to know their
companies intimately. If I or another one of our analysts spots something
unusual in an annual report or 10-K, I expect management to be able to explain
it. We want management to be honest with us. We always ask them to detail their
company's strengths and weaknesses. When we hear a lot about the former and
virtually nothing about the latter, we tend to be a little suspicious. Finally,
and most importantly, we expect them to serve the interest of their companies'
real owners - the shareholders. Managements that build a wall around themselves
and their companies' values are betraying shareholders.
We are not for or against corporate managements. We are for shareholders -
our clients. We don't encourage managements to run their companies to maximize
short-term returns and sacrifice long-term value. In fact, we respect managers
that are willing to suffer through a few bad quarters for the greater long-term
good of their companies. Unlike many Wall Street research teams, we don't ask
management to assess the value of their companies or to forecast future cash
flows and earnings. That's our job. We ask only that they do their jobs--build
the value of their businesses in a manner that benefits long-term shareholders."
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Dividends
The Trust recently distributed a dividend of $0.85 per share to Common
Shareholders on December 26, 1997. Our Preferred Shareholders were paid a
dividend of $1.1165 per share on December 26, 1997. This initial distribution
for Preferred Shareholders represents the accrual period from June 4 through
December 26, 1997. The next semi-annual dividend of $0.99 per share for the
Preferred Shareholders will be paid on June 26, 1998.
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, IRAs, 401(k)s, quarterly reports, closing prices and other
current news. You can send us e-mail at [email protected].
In Conclusion
In the first quarter of 1998, global multimedia stocks continued to
outperform their respective stock market indices. We don't believe this will be
a short-term phenomenon. We think these industries will continue to play a
pivotal role in the further evolution of the global village and that a portfolio
concentrated in the best companies in these industries can deliver very
attractive long-term returns.
Sincerely,
/s/ Mario J. Gabelli
Mario J. Gabelli, CFA
President and Chief Investment Officer
April 30, 1998
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Top Ten Holdings
March 31, 1998
----------------
Viacom Inc. Ascent Entertainment Corp.
TCI-Liberty Media Group BC Telecom Inc.
Cablevision Systems Corp. Time Warner Inc.
BET Holdings Inc. Grupo Televisa S.A.
USA Networks Inc. Telephone & Data Systems
---------------------------------------------------------------
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 -- March 31, 1998 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS -- 73.7%
COPYRIGHT/CREATIVITY COMPANIES -- 30.3%
Advertising -- 0.0%
200 Havas Advertising SA ...................... $ 30,127
200 Publicis SA ............................... 21,901
-----------
52,028
-----------
Cable Programmers -- 3.0%
15,000 CANAL+, Sponsored ADR+ .................... 563,180
6,000 Flextech plc+ ............................. 54,238
155,000 USA Networks Inc.+ ........................ 4,223,750
-----------
4,841,168
-----------
Diversified Publishers -- 7.5%
10,000 American Media Inc., Cl. A+ ............... 78,750
10,000 Arnoldo Mondadori Editore SpA ............. 115,116
16,000 Belo (A.H.) Corp., Cl. A .................. 880,000
2,500 Central Newspapers Inc., Cl. A ............ 177,656
8,000 Dow Jones & Co. Inc. ...................... 423,500
700 Filipacchi Medias ......................... 177,808
25,000 Golden Books Family
Entertainment Inc.+ ..................... 287,500
8,000 Harcourt General Inc. ..................... 443,000
20,000 Harte-Hanks Communications Inc. ........... 475,000
4,000 Houghton Mifflin Co. ...................... 127,500
58,000 Independent Newspapers Ltd., ORD .......... 350,474
10,000 Knight-Ridder Inc. ........................ 558,750
21,000 Lee Enterprises Inc. ...................... 704,813
12,000 McClatchy Newspapers Inc., Cl. A .......... 357,750
7,000 McGraw-Hill Companies Inc. ................ 532,437
5,000 Media General Inc., Cl. A ................. 245,938
24,000 Meredith Corp. ............................ 1,011,000
100,000 Nation Multimedia Group ................... 41,296
100,000 New Straits Times Press Berhad ............ 156,164
100,000 Oriental Press Group ORD .................. 25,682
10,000 Playboy Enterprises Inc., Cl. A+ .......... 160,938
110,900 Post Publishing Co. Ltd. .................. 126,823
9,000 PRIMEDIA Inc.+ ............................ 132,187
26,000 Pulitzer Publishing Co. ................... 2,076,750
9,000 Reader's Digest Association Inc., Cl. A ... 245,813
8,000 Reader's Digest Association Inc., Cl. B ... 215,000
38,280 Singapore Press Holdings Ltd. ............. 438,366
250,000 South China Morning
Post Holdings ORD ....................... 167,770
300 SPIR Communication ........................ 22,498
20,000 Thomas Nelson Inc. ........................ 275,000
4,000 Times Mirror Co., Cl. A ................... 253,500
50,000 Times Publishing Ltd. ..................... 99,660
10,000 United News & Media plc, ADR .............. 276,250
200 Wiley (John) & Sons Inc., Cl. A ........... 10,975
1,000 Wolters Kluwer NV ......................... 142,751
-----------
11,814,415
-----------
Entertainment Production -- 9.1%
5,450 American Radio Systems Corp.+ ............. 345,734
300,000 Ascent Entertainment Group Inc.+ .......... 3,093,750
70,000 BET Holdings Inc., Cl. A+ ................. 4,278,750
2,523 EMI Group plc ............................. 20,947
10,000 EMI Group plc, Sponsored ADR .............. 170,000
7,000 Grammy Entertainment plc+ ................. 35,934
3,500 Granada Group plc ......................... 62,926
7,000 GTECH Holdings Corp.+ ..................... 272,125
1,000 Harvey Entertainment Co.+ ................. 13,875
1,000 Lancit Media Productions Ltd.+ ............ 891
300 NRJ SA .................................... 51,770
2,877 People's Choice TV Corp.+ ................. 2,877
6,000 Princeton Video Image, Inc.+ .............. 48,750
100,000 Shaw Brothers (Hong Kong) Ltd. ............ 65,817
30,000 Spelling Entertainment Group Inc.+ ........ 270,000
165,000 Tele-Communications Inc./Liberty
Media Group, Cl. A+ ..................... 5,671,875
4,000 Tring International Group+ ................ 502
-----------
14,406,523
-----------
Global Media and Entertainment -- 8.8%
65,000 Grupo Televisa SA, GDR+ ................... 2,380,625
22,000 Havas, Sponsored ADR ...................... 459,250
21,000 News Corp. Ltd., ADS ...................... 565,688
2,000 PolyGram NV ............................... 92,750
38,000 Seagram Co. Ltd. .......................... 1,451,125
1,000 Sony Corp., ADR ........................... 85,063
34,000 Time Warner Inc. .......................... 2,448,000
115,000 Viacom Inc., Cl. A+ ....................... 6,109,375
3,000 Walt Disney Co. ........................... 320,250
-----------
13,912,126
-----------
Hotels and Gaming -- 1.3%
2,500 Churchhill Downs Inc. ..................... 142,500
1,000 Gaming Lottery Corp.+ ..................... 4,000
43,000 Gaylord Entertainment Co., Cl. A .......... 1,537,250
60,847 Ladbroke Group plc ........................ 340,460
1,000 Powerhouse Technologies Inc.+ ............. 14,250
2,500 Quintel Entertainment Inc.+ ............... 13,750
-----------
2,052,210
-----------
Information Publishing -- 0.2%
4,000 Berlitz International Inc.+ ............... 108,250
25,000 Data Broadcasting Corp.+ .................. 143,750
1,000 Dun & Bradstreet Corp. .................... 34,188
500 Scholastic Corp.+ ......................... 21,125
-----------
307,313
-----------
Software -- 0.4%
1,000 Activision Inc.+ .......................... 10,750
1,000 EarthLink Network Inc.+ ................... 56,438
500 Electronic Arts Inc.+ ..................... 23,469
1,000 Excaliber Technologies Corp.+ ............. 11,625
11
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1998 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
COPYRIGHT/CREATIVITY COMPANIES (Continued)
Software (Continued)
8,000 H&R Block Inc. ............................ $ 380,500
1,000 Intel Corp ................................ 78,062
1,000 Microsoft Corp.+ .......................... 89,500
200 Netscape Communications Corp.+ ............ 3,638
100 Pixar Inc.+ ............................... 3,487
-----------
657,469
-----------
TOTAL COPYRIGHT/CREATIVITY COMPANIES 48,043,252
-----------
DISTRIBUTION COMPANIES -- 43.4%
Broadcasting -- 7.5%
70,000 Ackerley Group Inc. ....................... 1,430,625
1,000 Audiofina ................................. 40,447
3,000 Baton Broadcasting Inc.+ .................. 53,928
1,000 BHC Communications Inc., Cl. A ............ 141,125
3,000 British Sky Broadcasting Group,
Sponsored ADR ........................... 135,000
18,000 CanWest Global Communications Corp. ....... 345,776
2,000 Carlton Communications plc,
Sponsored ADR ........................... 80,125
1,500 Chancellor Media Corp., Cl. A+ ............ 68,813
28,078 Chris-Craft Industries Inc. ............... 1,654,835
1,000 Clear Channel Communications Inc.+ ........ 98,000
9,000 Cox Radio Inc., Cl. A+ .................... 436,500
500 Emmis Broadcasting Corp., Cl. A+ .......... 26,375
200 Europe 1 Communication+ ................... 53,157
16,320 Fisher Companies Inc. ..................... 1,044,480
2,500 General Electric Co. ...................... 215,469
8,750 Gray Communications Systems Inc. .......... 253,750
40,000 Gray Communications
Systems Inc., Cl. B ..................... 1,160,000
1,000 Groupe AB SA, ADR+ ........................ 6,250
5,000 Grupo Radio Centro, SA de CV, ADR ......... 70,938
500 Jacor Communications Inc.+ ................ 29,500
15,000 King World Productions, Inc.+ ............. 438,750
700 LaGardere Groupe .......................... 28,224
2,000 Liberty Corp. ............................. 102,000
400 Metropole TV M6 SA ........................ 53,544
1,100 Nippon Television Broadcasting ............ 325,895
4,000 NTN Communications Inc.+ .................. 3,000
3,000 Pathe SA .................................. 612,047
60,000 Paxson Communications Corp., Cl. A+ ....... 667,500
976 SAGA Communications Inc., Cl. A+ .......... 20,374
2,000 Scandinavian Broadcasting System SA+ ...... 66,000
43,000 Sistem Televisyen Malaysia Berhad ......... 23,562
5,000 Telemundo Group Inc.+ ..................... 209,375
50,000 Television Broadcasting Ltd. ORD .......... 131,635
2,500 Television Francaise 1 .................... 310,459
40,000 Tokyo Broadcasting System ................. 459,029
1,000 TV Azteca, S.A. de C.V.+ .................. 19,625
10,000 United Television Inc. .................... 1,083,750
-----------
11,899,862
-----------
Business Services -- 0.1%
2,000 Computer Sciences Corp.+ .................. 110,000
-----------
Cable -- 8.1%
8,750 Cable Michigan Inc.+ ...................... 223,125
80,000 Cablevision Systems Corp., Cl. A+ ......... 5,260,000
25,000 Century Communications Corp., Cl. A+ ...... 320,313
5,000 Comcast Corp., Cl. A ...................... 173,437
1,000 Comcast Corp., Cl. A Special .............. 35,313
4,000 Comcast U.K. Cable Partners Ltd., Cl. A+ .. 53,500
2,000 General Cable plc, ADR+ ................... 28,000
3,000 NTL Inc.+ ................................. 129,750
5,000 Mercom Inc. ............................... 51,250
21,000 Rogers Communications Inc., Cl. B+ ........ 122,063
100,000 TCI Ventures Group+ ....................... 1,756,250
13,000 Telewest Communications plc,
Sponsored ADR+ .......................... 195,000
55,000 Tele-Communications Inc., Cl. A+ .......... 1,710,160
50,000 Tele-Communications
International Inc., Cl. A+ .............. 1,006,250
100,000 United International Holdings Inc., Cl. A+ 1,675,000
10,000 Videotron Groupe .......................... 125,128
500 Wireless One Inc.+ ........................ 484
-----------
12,865,023
-----------
Consumer Services -- 1.3%
10,000 Allied Domecq plc ......................... 98,013
1,000 Department 56 Inc.+ ....................... 38,000
23,000 N2K Inc.+ ................................. 687,132
42,500 Ticketmaster Group Inc.+ .................. 1,280,313
-----------
2,103,458
-----------
Entertainment Distribution -- 2.3%
120,000 Cineplex Odeon Corp.+ ..................... 202,500
22,000 GC Companies Inc.+ ........................ 1,150,875
19,500 Shaw Communications Inc., Cl. B, Conv. .... 290,737
3,000 TCI Music Inc.+ ........................... 23,531
57,000 US WEST Media Group+ ...................... 1,980,750
------------
3,648,393
------------
Equipment -- 0.4%
2,000 CommScope Inc.+ ........................... 28,875
3,000 Lucent Technologies Inc. .................. 383,625
2,000 Northern Telecom Ltd. ..................... 129,250
1,000 Philips Electronics N.V., New York ........ 73,438
3,000 Scientific-Atlanta Inc. ................... 58,687
------------
673,875
------------
Information Services -- 0.0%
1,000 Cognizant Corp ............................ 57,375
------------
12
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1998 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
International Telephone -- 8.1%
70,000 BC TELECOM Inc. ........................... $ 2,718,974
35,000 BCE Inc. .................................. 1,461,250
5,000 BHI Corp. ................................. 177,500
3,551 Cable & Wireless plc, Sponsored ADR ....... 117,627
29,000 Compania de Telecomunicaciones
de Chile SA, Sponsored ADR .............. 799,313
500 CPT Telefonica del Peru SA,
Sponsored ADR ........................... 10,781
200,000 CPT Telefonica del Peru, Cl. B ............ 428,444
2,000 Deutsche Telekom AG, ADR+ ................. 44,000
2,000 Esprit Telecom Group plc, ADR+ ............ 36,250
1,000 France Telecom SA, Sponsored ADR+ ......... 53,250
45,000 GST Telecommunications Inc.+ .............. 677,813
50 Japan Telecom Co., Ltd. ................... 382,524
500 Matav Rt., Sponsored ADR+ ................. 15,562
10 Nippon Telegraph & Telephone Corp. ........ 83,255
8,000 Philippine Long Distance Telephone Co. .... 223,000
4,000 PT Indosat ADR ............................ 61,750
1,000 PT Telekomunikasi Indonesia ............... 9,812
3,000 Quebec-Telephone .......................... 76,134
1,000 Rostelecom, Sponsored ADR ................. 19,875
3,600 Telecom Argentina Stet-France
Telecom SA, Sponsored ADR ............... 128,925
2,000 Telecom Corp. of New Zealand
Ltd., ADR ............................... 76,875
16,500 Telecomunicacoes Brasileiras SA
(Telebras), Sponsored ADR ............... 2,141,906
3,000 Telefonica de Argentina SA,
Sponsored ADR ........................... 114,188
16,500 Telefonica de Espana, Sponsored ADR ....... 2,182,125
14,000 Telefonos De Mexico SA, Cl. L, ADR ........ 789,250
600 Telstra Corporation Ltd., ADR+ ............ 30,900
------------
12,861,283
------------
Satellite -- 0.6%
300 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR+ ........... 6,037
6,000 EchoStar Communications Corp., Cl. A+ ..... 132,000
1,000 General Motors Corp., Cl. H ............... 45,250
2,000 Globalstar Telecommunications+ ............ 126,750
70,000 TCI Satellite Entertainment Inc., Cl. A + . 498,750
5,000 U.S. Satellite Broadcasting Co.+ .......... 45,937
------------
854,724
------------
Telecommunications -- 3.1%
2,000 Bruncor Inc. .............................. 69,790
2,500 Electric Lightwave Inc., Cl. A+ ........... 50,000
40,000 Frontier Corp ............................. 1,302,500
1,175 Hellenic Telecommunication
Organization SA (OTE) ................... 29,412
7,000 Metromedia International Group Inc.+ ...... 106,313
1,000 MIDCOM Communications Inc.+ ............... 30
3,000 NewTel Enterprises Ltd. ................... 86,708
29,000 RCN Corporation+ .......................... 1,453,625
20,000 Southern New England
Telecommunications Corp. ................ 1,446,250
3,000 Telegroup Inc.+ ........................... 60,750
12,000 Tel-Save Holdings Inc.+ ................... 273,000
------------
4,878,378
------------
Telecommunications-Long Distance -- 1.5%
20,000 AT&T Corp. ................................ 1,312,500
12,000 MCI Communications Corp. .................. 594,000
7,000 Sprint Corp. .............................. 473,813
2,000 STARTEC Global Communications
Corp.+ .................................. 50,000
------------
2,430,313
------------
US Regional Operators -- 1.1%
1,000 Cincinnati Bell Inc. ...................... 35,625
30,225 Citizens Utilities Co., Cl. B+ ............ 319,252
22,000 Commonwealth Telephone
Enterprises Inc.+ ....................... 607,750
11,000 GTE Corp. ................................. 658,625
1,462 SBC Communications Inc. ................... 63,780
800 Teleport Communications
Group Inc., Cl. A+ ...................... 47,000
1,000 US WEST Communications Group+ ............. 54,750
------------
1,786,782
------------
Wireless Communications -- 9.3%
80,000 Aerial Communications Inc.+ .............. 620,000
2,000 AirTouch Communications Inc.+ ............. 97,875
5,000 BCE Mobile Communications Inc.+ ........... 149,625
38,000 Cable & Wireless Communications
plc, ADR ................................ 1,434,500
1,000 CAI Wireless Systems Inc.+ ................ 400
33,000 Centennial Cellular Corp., Cl. A + ........ 867,281
22,000 Century Telephone Enterprises Inc. ........ 1,344,750
40,000 COMSAT Corp. .............................. 1,377,500
10,000 CoreComm Inc.+ ............................ 166,563
24,000 Iridium World Communications Ltd. ......... 1,497,000
10,008 Loral Space & Communications Ltd.+ ........ 279,599
8,447 NEXTEL Communications Inc., Cl. A+ ........ 285,086
3,000 Omnipoint Corp.+ .......................... 88,500
1,250 Price Communications Corp.+ ............... 20,000
1,000 Qualcomm Inc.+ ............................ 53,500
35,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ ............. 398,125
2,000 Rural Cellular Corp., Cl. A+ .............. 34,000
5,000 SK Telecom Co. Ltd., ADR .................. 39,688
13
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- March 31, 1998 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Wireless Communications (Continued)
300,000 Telecom Italia Mobile SpA ................. $ 1,610,799
50,000 Telephone and Data Systems Inc. ........... 2,375,000
8,000 Teligent Inc., Cl. A+ ..................... 246,000
25,000 360(degrees)Communications Co.+ ........... 781,250
18,000 Total Access Communications plc ........... 21,240
10,000 U.S. Cellular Corp.+ ...................... 339,375
500 Vimpel-Communications,
Sponsored ADR+ .......................... 22,250
12,000 WinStar Communications Inc.+ .............. 513,000
------------
14,662,906
------------
TOTAL DISTRIBUTION COMPANIES .......................... 68,832,372
------------
TOTAL COMMON STOCKS ................................... 116,875,624
------------
PREFERRED STOCKS -- 2.9%
Broadcasting -- 0.3%
8,000 Granite Broadcasting Corp., Pfd. .......... 455,000
------------
Entertainment -- 0.1%
4,000 AMC Entertainment Inc., $1.75,
Conv. Pfd. .............................. 164,000
------------
Global Media and Entertainment -- 0.9%
62,765 News Corp. Ltd., Sponsored ADR
Preference Shares ....................... 1,443,595
------------
US Regional Operators -- 1.1%
35,000 Citizens Utilities Co., 5.00%, Pfd. ....... 1,715,000
------------
Wireless Communications -- 0.5%
13,000 AirTouch Communications Inc.,
Series B, 6.00%, Pfd. ................... 536,250
3,000 AirTouch Communications Inc.,
Series C, 4.25%, Pfd. ................... 213,000
------------
749,250
------------
TOTAL PREFERRED STOCKS ................................ 4,526,845
------------
COMMON STOCK WARRANTS AND RIGHTS -- 0.0%
10,000 Oriental Press Group, Warrants,
expires 10/02/1998+ ..................... 18
------------
Principal
Amount
------
CORPORATE BONDS -- 0.4%
Cable -- 0.2%
$300,000 Tele-Communications International Inc.,
Conv. Sub. Deb., 4.50% due 02/15/06 ..... 274,125
------------
Global Media and Entertainment -- 0.1%
100,000 Viacom Inc., Sub. Deb.,
8.00% due 07/07/06 ...................... 102,750
------------
Equipment -- 0.1%
90,000 Trans-Lux Corp., Conv. Deb.,
7.50% due 12/01/06 ...................... 103,163
------------
Software -- 0.0%
50,000 BBN Corp., Conv. Sub.
Deb., 6.00% due 4/01/12 (b) ............. 48,500
------------
TOTAL CORPORATE BONDS ................................. 528,538
------------
U.S. TREASURY BILLS -- 23.3%
37,217,000 5.131% to 5.300%++
due 04/16/98 -- 05/28/98 ................ 37,104,673
------------
TOTAL INVESTMENTS
(Cost $112,494,695) (a) .................. 100.3% 159,035,698
OTHER ASSETS, LIABILITIES AND
LIQUIDATION VALUE OF CUMULATIVE
PREFERRED STOCK ......................... (20.0%) (31,772,163)
------ ------------
NET ASSETS -- COMMON STOCK
(10,894,115 common shares outstanding) .. 80.3% 127,263,535
------ ------------
NET ASSETS -- CUMULATIVE PREFERRED STOCK
(1,250,000 preferred shares outstanding) . 19.7% 31,250,000
------ ------------
TOTAL NET ASSETS .......................... 100.0% $158,513,535
====== ============
NET ASSET VALUE PER COMMON SHARE
($126,617,285 / 10,894,115 shares outstanding) ...... $11.62
======
- ----------
(a) For Federal tax purposes:
Aggregate cost $112,549,604
============
Gross unrealized appreciation $ 48,810,888
Gross unrealized depreciation (2,324,794)
------------
Net unrealized appreciation $ 46,486,094
============
+ Non-income producing security
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
ADS - American Depositary Share
GDR - Global Depositary Receipt
HKD - Hong Kong Dollars
ORD - Ordinary Share
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
Unrealized
Expiration Appreciation/
Date (Depreciation)
---- --------------
Forward Foreign Exchange Contracts to Deliver
474,896,025 Hong Kong Dollars
in exchange for
USD 264,566 ................. 04/03/98 $ (4,242)
3,300,000 U.S. Dollars
in exchange for
HKD 419,794 ................. 08/26/98 3,360
--------
Total Net Unrealized Depreciation
on Forward Foreign Exchange Contracts ................ $ (882)
========
14
<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 value of the Common Stock at the time of valuation exceeds the market
price of the Common Stock, participants will receive
15
<PAGE>
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.
16
<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
Executive Vice President,
FMG Group
Officers
Mario J. Gabelli, CFA
President & Chief Investment Officer
Bruce N. Alpert
Vice President & Treasurer
Peter W. Latartara
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 10,894,115
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 [GRAPHIC OMITTED]
Internet: http:/ /www.gabelli.com
e-mail: [email protected]
First Quarter Report
March 31, 1998
GGT 03/98
- --------------------------------------------------------------------------------
