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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
Semi-Annual Report
June 30, 1999
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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
interdependent economic world.
* * * * *
Morningstar rated(TM) The Gabelli Global Multimedia Trust Inc.
5 stars overall and for the three year period ended 6/30/99
among 49 domestic equity funds.
Investment Objective:
The Gabelli Global Multimedia Trust Inc. is a closed-end, non-diversified
management investment company whose primary objective is long-term growth of
capital, with income as a secondary objective. The Fund seeks opportunities for
long-term growth within the context of two main investment universes: companies
involved in creativity, as it relates to the development of intellectual
property rights (copyrights); and companies involved in distribution, as it
relates to the delivery of these copyrights. Additionally, the Fund will invest
in companies participating in emerging technological advances in interactive
services and products.
This report is printed on recycled paper.
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To Our Shareholders,
Global telecommunications and media stocks continued to reward investors
generously in the second quarter of 1999. All the forces driving this
group--technological advances, new services, deregulation, and
consolidation--remain intact. Also, the economic and stock market recovery in
emerging market Asia translated into exceptional gains for most of the region's
telecommunications providers.
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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
Investment Performance
For the second quarter ended June 30, 1999, The Gabelli Global Multimedia
Trust Inc.'s ("Multimedia Trust") net asset value (NAV) per share increased
18.7% to $16.79. This compares to the average 7.6% increase of the 274 Global
Funds tracked by Lipper Inc. over this period. The Lipper average is an
unmanaged indicator of investment performance. For the twelve months ended June
30, 1999, the Multimedia Trust appreciated 52.5% after adjusting for the $0.80
per share in distributions paid during this period. This compares to the average
10.7% increase of the Lipper Inc. Global Fund Average over the same period.
Since its inception on November 15, 1994, the Multimedia Trust's net asset value
has achieved a 209.1% total return after adjusting for the rights offering and
all distributions. This equates to a 27.6% average annual return.
The Multimedia Trust's common shares ended the second quarter at $15.00
per share on the New York Stock Exchange, up 27.0% for the quarter and an
increase of 60.1% for the twelve-month period ending June 30, 1999. The common
shares have increased 159.1% 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 4 years at The
Gabelli Global Multimedia Trust and for over 21 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.
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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
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position ourselves in front of long-term earnings uptrends. In addition, we
analyze on and off balance sheet assets and liabilities such as plant and
equipment, inventories, receivables, and legal, environmental and health care
issues. We want to know everything and anything that will add to or detract from
our private market value (PMV) estimates. Finally, we look for a catalyst;
something happening in the company's industry or indigenous to the company
itself that will surface value. In the case of the independent telephone stocks,
the catalyst is a regulatory change. In the agricultural equipment business, it
is the increasing world-wide demand for American food and feed 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 June 30, 1999. 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: a) companies involved in creativity, as it relates to
the development of intellectual property rights (copyrights); and b) 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 June 30, 1999.
HOLDINGS BY GEOGRAPHIC REGION - 6/30/99
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[The following table was depicted as a pie chart in the printed material.]
United States 79.5%
Europe 6.9%
Canada 5.8%
Asia/Pacific Rim 5.0%
Latin America 2.8%
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[The following table was depicted as a pie chart in the printed material.]
Distribution 58.0%
Copyright/Creativity 42.0%
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Commentary
The Americanization of the European Telecommunications Industry
America refined the art of the deal. We were early to recognize the
economic benefits of consolidation and our investment bankers pioneered
sophisticated financial packages and strategies to facilitate economically
sensible mergers and acquisitions. Europe is now catching on.
We were delighted to see Deutsche Telekom compete with Olivetti for
Telecom Italia. This was the first true takeover battle in the European
telecommunications industry. Importantly, rather than pulling in its horns
following Olivetti's victory, Deutsche Telekom is issuing a pile of new stock to
finance what appears to be an acquisition war chest. The gloves are coming off
in Europe and we expect to see more duels for attractive telecommunications
assets.
We are seeing some friendly deals as well. The proposed merger of Sweden's
Telia with Norway's Telenor is currently being reviewed by European regulatory
authorities. We think it will be approved and in the process, provide guidelines
that will accelerate telecommunications consolidation in Europe.
Now that we are seeing "cross border" transactions in Europe, will major
"cross continent" telephone deals follow? We have seen deals in the cellular
business, most notably Vodafone's acquisition of AirTouch, and British Telecom's
unsuccessful bid for MCI. Now, Bermuda based Global Crossing is vying with Qwest
for U.S. West and Frontier Corp. If they win, it will be interesting to see if
this emboldens one of the European giants like Deutsche Telekom to aggressively
pursue a major U.S. telco.
The upshot of the initial stages of what we believe will be a major
consolidation in Europe is that European telcos are now receiving stock market
valuations similar, if not equal, to those enjoyed by leading American
telecommunications companies.
Hardware Kicks In
In recent years, a lot of investment attention has focused on the build
out of the Internet transmission highway and the advent of new interactive
services. Cable television stocks have soared as investors recognized the
enormous potential of their Internet pipeline business. Telecommunications
companies and information/entertainment software producers have also done quite
well with the realization that the age of interactivity was upon us. This
quarter it was the hardware manufacturers' turn to be in the limelight. One of
the industry leaders in the set-top box/cable modem business,
Scientific-Atlanta, finally got some recognition for the contributions the
company is making in developing the hardware that is further enhancing
interactive services. We believe this is just the beginning of what should be
some very productive years for leading interactive hardware producers.
The Broadband Wars
After exceptional performance over the last two years, leading cable
stocks like Cablevision and Time Warner cooled off this quarter. Investors
appeared to shift their focus away from the cable guys to telephone companies
rolling out new digital service line networks (DSLs) to provide higher speed
Internet access. The new DSLs do not match the speed of cable lines and modems,
and are also more expensive. But, DSLs are a big improvement over Internet
transmission via regular telephone lines. This is not a "winner take all"
proposition. We still believe cable will ultimately be the Internet transmission
vehicle of choice and that their success will continue to drive cable company
valuations. However, DSL's will help the telco's hold on to a meaningful market
share in this fast growth business and provide incremental revenues and profits.
We are also seeing increasing investor interest in wireless data
transmission companies, which were given up for dead several years ago. MCI
WorldCom and Paul Allen's Vulcan Ventures have made a $600 million investment in
Metracom, and there is rampant speculation that MCI WorldCom may make a bid for
Nextel.
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AT&T Liberty Media Group is buying Associated Group, which is a 40% owner of
Teligent. Sprint is investing in some wireless cable companies. We think a third
front is opening in the war for Internet and other data transmission business.
We will be monitoring developments closely.
A Broadcast Recovery?
In general, U.S. broadcasters suffered through a dismal 1998. They
continued to loose eyeballs and advertising dollars to cable television
operators, and the Internet captured a bigger piece of many companies'
advertising budgets. However, the tide may be turning. Although the national and
local spot markets remain soft, up-front advertising sales are up 13%. Buoyed by
spending by pharmaceutical companies, which are now allowed to market their
prescription products on television, Internet companies that are spending most
of their IPO proceeds on advertising to establish their brand names, and big new
ad campaigns planned for the millennium, broadcasters' ad revenues should trend
higher. They will get an additional boost in the upcoming election year as
politicians open campaign treasure chests to win the hearts and minds of
American voters.
This quarter, our broadcast holdings were mixed. Paxson Communications
posted strong gains. But, Chris-Craft Industries was flat, while Gray
Communications declined. We believe that when investors start focusing on next
year's numbers, they will begin tuning in to our broadcast laggards.
A final wild card for broadcasters is the increasing focus by technology
giants on the ubiquitous nature of television. The "Holy Grail" is to develop a
two way interactive and transaction driven economic model for old fashioned
"POTS" (Plain Old Television Stations).
Corporate Governance - Stock Repurchase Plan
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 1996.
The Board of Directors authorized the repurchase of up to 500,000 shares
of the Multimedia Trust's outstanding shares at a special meeting on July 3,
1996. On February 26, 1997, the Board voted to increase the authorized shares
which may be repurchased to 750,000 and on May 13, 1998, the Board increased the
authorized shares which may be repurchased by another 250,000 shares to
1,000,000 shares. 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.
Pursuant to this stock repurchase plan, 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 June 30, 1999, 642,733 shares were repurchased in the open
market.
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. Further, 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.
Preferred Stock -- An Investment For The Future
On June 4, 1997, the Trust successfully completed its offering of
cumulative preferred stock which is rated `aaa' by Moody's Investors Service,
Inc. The Trust issued 1,250,000 Preferred Shares at $25 per share ($31.25
million) with an annual dividend rate of $1.98 per share paying quarterly. The
Preferred Shares are trading on
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the New York Stock Exchange under the symbol "GGT Pr" and closed at $25.125 on
June 30, 1999.
How would Preferred Shares benefit Common Shareholders? From its inception
on November 15, 1994 through June 30, 1999, the Multimedia Trust has earned a
27.6% average annual return. The Preferred Shares were issued with an annual
dividend rate of 7.92%. 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 potentially 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. With the completion of the preferred
offering, the Adviser has agreed to waive the management fee on the incremental
assets during any year in which the net asset value total return on the Trust
does not exceed the stated dividend rate on the Preferred Shares.
Let's Talk Stocks
The following are stock specifics on selected holdings of the Multimedia
Trust. Favorable EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) prospects do not necessarily translate into higher stock prices,
but they do express a positive trend which we believe will develop over time.
AT&T Corp. (T - $55.8125 - NYSE), the world's second-largest telephone company,
is a global provider of communications services. Chairman Michael Armstrong is
positioning the company to participate more dynamically in the growth of the
telecommunications industry. AT&T has completed a merger with cable operator TCI
and has announced a strategy to leverage cable assets with telephone services.
The company recently bid for another cable operator, MediaOne Group (UMG -
$74.375 - NYSE), endeavoring to become a major provider of high-speed Internet
access via cable. The introduction of the Digital One rate for its wireless
service has created momentum in its cellular and PCS segments with revenues
growing more than 40%.
Liberty Media Group (LMG'A - $36.75 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available media formats, and businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in
globally-branded entertainment networks such as Discovery Channel, USA, QVC,
Encore and STARZ!. Liberty's assets also include interests in international
video distribution businesses; international telephony and domestic wireless;
plant and equipment manufacturers; and other businesses related to broadband
services. Liberty Media Group Class A and Class B common stock are tracking
stocks of AT&T Corp. (T - $55.8125 - NYSE) and are now traded on the New York
Stock Exchange.
MediaOne Group Inc. (UMG - $74.375 - NYSE) is one of the nation's leading
broadband services companies. UMG provides more than five million subscribers in
17 states with basic and premium cable television services and has recently
introduced high speed Internet access, telephone services and digital television
in some of its service areas. MediaOne was created from the 1996 union of
telecommunications company MediaOne Group (formerly US West Media Group) and
Continental Cablevision. Headquartered in Englewood, Colorado, the company is
conducting a national upgrade of its hybrid fiber optic/coaxial cable ("HFC")
network to broadband technology which improves traditional cable service and
enables next-generation products and services. The
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Group's investment interests include 25% of Time Warner Entertainment (which
includes Warner Brothers Studio and Home Box Office), 24% of PCS Prime Co. and
almost 27% of TeleWest plc. The number three U.S. cable television company
recently agreed to be acquired by AT&T Corp. (T - $55.8125 - NYSE) for $54
billion.
Omnipoint Corp. (OMPT - $28.9375 - Nasdaq) is a leading personal communications
services ("PCS") carrier in the U.S. with licenses covering major metropolitan
areas containing nearly 100 million people. On June 23, 1999, Omnipoint agreed
to be acquired by VoiceStream Wireless (VSTR - $28.4375 - Nasdaq) for $32 per
share in cash and stock. The combined company will have PCS licenses covering
about 190 million points of presence ("POPs") and will become a major PCS
carrier.
Rogers Communications Inc. (RG - $16.1875 - NYSE) is a Canadian company engaged
in cable operations, cellular (through its 81%-owned Rogers Cantel Mobile
cellular provider) and media. Through Rogers@Home, the company will be one of
the major beneficiaries of the growing penetration of cable high speed access to
the Internet in Canadian homes.
Telephone & Data Systems Inc. (TDS - $73.0625 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to three million customers
in 35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $53.50 -
AMEX), the nation's seventh largest cellular telephone company. It also owns
82.4% of Aerial Communications Inc. (AERL - $13.50 - Nasdaq), TDS's PCS
subsidiary which owns the licenses to provide PCS service in six major trading
areas ("MTAs") encompassing approximately 27.6 million population equivalents.
On December 8, 1998, TDS announced its intent to spin-off its Aerial stake to
existing TDS shareholders on a tax-free basis and focus on its core wireline and
cellular operations. The transaction is expected to close by the end of the
year.
Time Warner Inc. (TWX - $73.50 - NYSE), with its 1996 acquisition of Turner
Broadcasting System, became entrenched as the global leader in media and
entertainment with interests in filmed entertainment, television production and
broadcasting, recorded music, cable television programming, magazine and book
publishing, direct marketing and cable television systems. The combined
companies have almost $27 billion in revenues and $4.5 billion in EBITDA. Time
Warner controls a host of powerful brands, such as Warner Brothers, CNN, HBO,
Cinemax and Time and People magazines. Under the leadership of Chairman Gerald
Levin and Vice Chairman Ted Turner, the company is focused on reducing its debt
(now approximately $11 billion) and simplifying its capital structure.
USA Networks Inc. (USAI - $40.125 - Nasdaq), through its subsidiaries, engages
in diversified media and electronic commerce businesses that include: electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella: the USA Network, the
Sci-Fi Channel, USA Networks Studios, USA Broadcasting, The Home Shopping
Network and the Ticketmaster Group. The plan is to integrate these assets,
leveraging programming, production capabilities and electronic commerce across
this strong distribution platform.
Viacom Inc. (VIA'A - $44.125 - AMEX), long a major provider of entertainment
"content", has evolved into one of the world's dominant media companies. The
addition of Paramount Communications, Blockbuster Entertainment (acquired in
1994), along with publisher Simon & Schuster, makes Viacom one of the largest
entertainment and publishing companies. Non-core assets are being divested and
debt has been reduced to approximately $8 billion. Viacom is focusing on global
expansion of its media franchises. Viacom is particularly well-positioned in
music (notably MTV) and cable networks (such as Nickelodeon).
Shareholder Meeting - May 17, 1999 - Final Results
The Annual Meeting of Shareholders was held on May 17, 1999 at the
Greenwich Hyatt Regency in Greenwich, Connecticut. At that meeting, Common and
Preferred Shareholders elected Bill Callaghan and
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Salvatore J. Zizza as Directors of the Multimedia Trust. A total of 10,426,822
votes and 10,425,524 votes were cast in favor of each Director and 132,121 votes
and 133,419 votes were withheld for each Director, respectively.
Mario J. Gabelli, Thomas E. Bratter, Felix J. Christiana, James P. Conn,
Karl Otto Pohl and Anthony R. Pustorino continue to serve in their capacities as
Directors of the Multimedia Trust.
In addition, Common and Preferred Shareholders elected
PricewaterhouseCoopers LLP as the independent accountants for the Multimedia
Trust for the year ending December 31, 1999. 10,431,284 votes were cast in favor
of the approval of this proposal, 68,606 votes were cast against the proposal
and 59,053 votes abstained.
We thank you for your participation and appreciate your continued support.
Dividends
The Trust recently distributed a dividend of $0.55 per share to Common
Shareholders on December 28, 1998. For the twelve months ended June 30, 1999,
the Trust distributed a total of $0.80 per share to Common Shareholders. Our
Preferred Shareholders were recently paid a dividend of $0.495 per share on June
28, 1999. For the twelve months ended June 30, 1999, the Preferred Shareholders
received a total distribution of $1.98 per share, which is the annual dividend
rate on the Preferred Shares.
In Conclusion
We created the Gabelli Global Multimedia Trust in 1994, believing that the
interactive revolution was gaining momentum. Our vision has been grandly
rewarded. While it may be optimistic to expect the kind of returns we have
achieved in recent years to continue indefinitely, we remain confident that
companies with innovative interactive products and services worldwide still
represent excellent investment opportunities.
Sincerely,
/s/ Mario J. Gabelli
Mario J. Gabelli, CFA
President and Chief Investment Officer
July 30, 1999
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Top Ten Holdings
June 30, 1999
-------------
Liberty Media Group Cablevision Systems Corp.
USA Networks Inc. MediaOne Group Inc.
Viacom Inc. Ascent Entertainment Group Inc.
Telephone & Data Systems Inc. Time Warner Inc.
Omnipoint Corp. AT&T Corp.
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NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. 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 -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS - 87.3%
COPYRIGHT/CREATIVITY COMPANIES - 36.6%
Advertising -- 0.1%
4,000 Bowlin Outdoor Advertising & Travel
Inc. ............................... $ 20,162 $ 24,000
200 Havas Advertising SA ................. 19,126 43,048
100 Lamar Advertising Co. ................ 3,279 4,094
200 Publicis SA .......................... 13,971 42,244
----------- ------------
56,538 113,386
----------- ------------
Cable Programmers -- 5.3%
15,000 CANAL+, Sponsored ADR+ ............... 431,000 792,063
6,000 Flextech plc+ ........................ 37,551 96,608
257,000 USA Networks Inc.+ ................... 4,668,335 10,312,125
----------- ------------
5,136,886 11,200,796
----------- ------------
Computer Software and Services -- 0.7%
1,000 Activision Inc.+ ..................... 6,415 14,562
180 America Online Inc.+ ................. 2,800 19,890
3,000 Atlus Co. Ltd. ....................... 17,662 37,205
3,400 Barnesandnoble.com Inc.+ ............. 54,825 61,200
5,000 CDnow Inc.+ .......................... 50,715 88,125
2,000 EarthLink Network Inc.+ .............. 45,250 122,875
500 Electronic Arts Inc.+ ................ 11,176 27,125
14,000 H&R Block Inc. ....................... 491,661 700,000
1,000 Intel Corp. .......................... 16,250 59,500
2,000 Microsoft Corp.+ ..................... 15,510 180,375
4,000 Mobius Management Systems+ ........... 32,040 33,000
100 Pixar Inc.+ .......................... 2,200 4,313
12,000 Talk.com Inc.+ ....................... 55,770 135,000
500 Ticketmaster Online - City Search
Inc.+ .............................. 7,000 15,125
----------- ------------
809,274 1,498,295
----------- ------------
Consumer Products -- 0.0%
1,000 Mattel Inc. .......................... 22,238 26,438
----------- ------------
Diversified Publishers -- 8.2%
10,000 Arnoldo Mondadori Editore SpA ...... 63,827 173,099
30,000 Belo (A.H.) Corp., Cl. A ............. 373,506 590,625
5,000 Central Newspapers Inc., Cl. A ....... 71,479 188,125
2,000 Dow Jones & Co. Inc. ................. 93,444 106,125
7,000 EMAP plc ............................. 147,169 122,585
700 Hachette Filipacchi Medias ........... 87,284 162,641
18,700 Harcourt General Inc. ................ 917,935 964,219
15,000 Harte-Hanks Communications Inc. ...... 166,250 406,875
1,000 Hollinger International Inc. ......... 16,175 11,875
4,500 Houghton Mifflin Co. ................. 98,156 211,781
58,000 Independent Newspapers Ltd., ORD ..... 172,446 277,885
7,000 Knight-Ridder Inc. ................... 199,215 384,562
22,000 Lee Enterprises Inc. ................. 443,075 671,000
20,000 McClatchy Newspapers Inc., Cl. A ..... 546,094 662,500
8,000 McGraw-Hill Companies Inc. ........... 205,450 431,500
20,000 Media General Inc., Cl. A ............ 915,096 1,020,000
18,000 Meredith Corp. ....................... 231,638 623,250
115,000 Nation Multimedia Group .............. 110,028 64,712
100,000 New Straits Times Press Berhad ....... 296,714 227,632
125,000 Oriental Press Group ORD ............. 46,315 20,139
103,000 Penton Media Inc. .................... 1,487,125 2,497,750
10,000 Playboy Enterprises Inc., Cl. A+ ..... 97,125 235,000
110,900 Post Publishing Co. Ltd.+ ............ 238,915 150,373
9,000 PRIMEDIA Inc.+ ....................... 90,000 152,438
26,000 Pulitzer Publishing Co. .............. 397,674 1,262,625
68,000 Reader's Digest Association Inc.,
Cl. B .............................. 1,566,798 2,550,000
34,452 Singapore Press Holdings Ltd. 446,286 587,020
250,000 South China Morning Post
Holdings ORD ....................... 172,312 140,167
300 SPIR Communication ................... 23,329 22,008
50,000 Thomas Nelson Inc. ................... 595,437 556,250
4,500 Times Mirror Co., Cl. A .............. 106,131 266,625
50,000 Times Publishing Ltd. ................ 126,892 111,046
15,000 Tribune Co. .......................... 869,206 1,306,875
11,300 United News & Media plc, ADR ......... 268,402 219,644
800 Wiley (John) & Sons Inc., Cl. A ...... 5,693 14,900
4,000 Wolters Kluwer NV .................... 90,625 159,086
2,000 Ziff-Davis Inc. ...................... 21,288 30,875
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11,804,534 17,583,812
----------- ------------
Entertainment Production -- 10.3%
271,700 Ascent Entertainment Group Inc.+ ..... 3,236,698 3,837,762
2,522 EMI Group plc ........................ 12,682 20,234
20,000 EMI Group plc, Sponsored ADR ......... 317,997 340,000
7,000 Grammy Entertainment plc+ ............ 55,457 23,539
3,500 Granada Group plc .................... 35,566 64,934
7,000 GTECH Holdings Corp.+ ................ 118,256 164,938
2,000 Harvey Entertainment Co.+ ............ 20,022 9,625
See accompanying notes to financial statements.
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The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
COPYRIGHT/CREATIVITY COMPANIES (Continued)
Entertainment Production (Continued)
465,000 Liberty Media Group Cl. A+ ........... $ 3,503,336 $ 17,088,750
300 NRJ SA ............................... 22,694 67,478
14,877 People's Choice TV Corp.+ ............ 24,320 141,796
2,000 Powerhouse Technologies Inc. ......... 20,875 39,000
3,000 Princeton Video Image Inc.+ .......... 21,000 13,594
100,000 Shaw Brothers (Hong Kong) Ltd. ....... 145,929 68,311
5,000 TV Guide Inc.+ ....................... 101,620 183,125
----------- ------------
7,636,452 22,063,086
----------- ------------
Global Media and Entertainment -- 9.1%
481 Boston Celtics Ltd. .................. 4,267 5,712
35,000 Fox Entertainment Group Inc. ......... 787,500 942,812
52,000 Grupo Televisa SA, GDR+ .............. 1,219,367 2,330,250
21,000 News Corp. Ltd., ADS ................. 413,278 741,563
50,000 Seagram Co. Ltd. ..................... 2,025,129 2,518,750
1,000 Sony Corp., ADR ...................... 54,114 110,375
52,000 Time Warner Inc.+ .................... 950,588 3,822,000
194,000 Viacom Inc., Cl. A+ .................. 3,018,752 8,560,250
9,000 Walt Disney Co. ...................... 205,313 277,312
----------- ------------
8,678,308 19,309,024
----------- ------------
Hotels and Gaming -- 2.6%
10,000 Aztar Corp.+ ......................... 51,125 91,875
5,000 Churchhill Downs Inc. ................ 102,432 172,500
115,000 Gaylord Entertainment Co., Cl. A ..... 3,071,349 3,450,000
143 GLC Limited+ ......................... 4,727 769
20,000 Hilton Hotels Corp. .................. 241,666 283,750
300,000 Ladbroke Group plc ................... 1,292,939 1,190,463
8,000 Mirage Resorts Inc.+ ................. 122,650 134,000
4,630 MGM Grand Inc.+ ...................... 47,485 84,497
10,000 Park Place Entertainment Corp.+ ...... 61,344 96,875
2,500 Quintel Entertainment Inc.+ .......... 12,500 3,750
4,000 Starwood Hotels and Resorts
Worldwide Inc. ..................... 81,825 122,250
----------- ------------
5,090,042 5,630,729
----------- ------------
Information Publishing -- 0.3%
25,000 Berlitz International Inc.+ .......... 688,500 459,375
8,000 Data Broadcasting Corp.+ ............. 52,250 84,500
1,000 Dun & Bradstreet Corp. ............... 26,332 35,438
500 Scholastic Corp.+ .................... 16,500 25,312
----------- ------------
783,582 604,625
----------- ------------
TOTAL COPYRIGHT/CREATIVITY COMPANIES .............. 40,017,854 78,030,191
----------- ------------
DISTRIBUTION COMPANIES -- 50.7%
Broadcasting -- 8.6%
70,000 Ackerley Group Inc. .................. 385,687 1,273,125
8,550 American Tower Systems, Cl. A ........ 126,876 205,200
2,500 Audiofina SA ......................... 118,223 119,830
2,000 BHC Communications Inc., Cl. A ....... 209,550 260,000
2,000 British Sky Broadcasting Group,
Sponsored ADR ...................... 47,975 112,250
18,000 CanWest Global Communications Corp. .. 92,012 244,927
2,000 Carlton Communications plc,
Sponsored ADR ...................... 63,625 85,750
5,000 CBS Corporation ...................... 140,042 217,187
1,000 Chancellor Media Corp., Cl. A+ ....... 7,157 55,125
45,219 Chris-Craft Industries Inc. .......... 1,745,026 2,130,945
1,078 Clear Channel Communications Inc.+ ... 10,483 74,315
4,000 Cox Radio Inc., Cl. A+ ............... 74,000 217,000
4,000 CTV Inc.+ ............................ 33,592 61,079
500 Emmis Broadcasting Corp., Cl. A+ ..... 10,489 24,687
20,120 Fisher Companies Inc. ................ 1,082,695 1,267,560
1,000 General Electric Co. ................. 29,306 113,000
13,125 Gray Communications Systems Inc. ..... 172,625 262,500
60,000 Gray Communications Systems Inc.,
Cl. B .............................. 810,063 847,500
7,000 Groupe AB SA, ADR+ ................... 42,850 22,750
5,000 Grupo Radio Centro, SA de CV, ADR .... 42,938 26,250
38,000 Hearst-Argyle Television Inc.+ ....... 378,726 912,000
3,000 Infinity Broadcasting Corp.+ ......... 61,500 89,250
33,000 King World Productions Inc.+ ......... 923,838 1,148,813
700 LaGardere S.C.A ...................... 12,878 26,037
42,100 Liberty Corp. ........................ 1,912,311 2,294,450
400 Metropole TV M6 SA ................... 35,208 84,035
1,100 Nippon Television Network ............ 323,764 454,733
5,000 NTN Communications Inc.+ ............. 24,063 4,687
17,400 Pathe SA ............................. 1,112,375 2,086,830
55,000 Paxson Communications Corp., Cl. A+ .. 445,751 742,500
500 Radio One Inc.+ ...................... 16,938 23,250
1,220 SAGA Communications Inc., Cl. A+ ..... 9,710 22,723
2,000 SBS Broadcasting SA+ ................. 42,022 64,500
See accompanying notes to financial statements.
9
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Broadcasting (Continued)
43,000 Sistem Televisyen Malaysia Berhad .... $ 41,566 $ 28,855
50,000 Television Broadcasting Ltd., ORD .... 187,673 234,578
2,500 Television Francaise 1 ............... 249,649 582,148
55,000 Tokyo Broadcasting System ............ 812,002 795,783
3,000 TV Azteca, SA de C.V.+ ............... 36,350 15,563
10,500 United Television Inc. ............... 817,885 1,101,187
----------- ------------
12,689,423 18,332,902
----------- ------------
Business Services -- 0.5%
15,000 Carlisle Holdings Ltd. ............... 78,754 217,500
1,000 CheckFree Holdings Corp. ............. 11,040 27,562
20,000 Convergys Corp.+ ..................... 339,649 385,000
2,000 IMS Health Inc. ...................... 2,109 62,500
3,333 Nielsen Media Research Inc. .......... 52,518 97,490
9,400 R.H. Donnelley Corp. ................. 119,636 183,888
----------- ------------
603,706 973,940
----------- ------------
Cable -- 6.3%
60,000 Cablevision Systems Corp., Cl. A+ .... 600,333 4,200,000
30,000 Century Communications Corp. Cl. A+ .. 521,502 1,380,000
5,000 Comcast Corp., Cl. A ................. 35,039 179,062
7,000 Comcast Corp., Cl. A Special ......... 53,073 269,063
55,000 MediaOne Group Inc. .................. 1,179,636 4,090,625
10,000 Mercom Inc.+ ......................... 101,075 120,000
4,498 NTL Inc.+ ............................ 115,937 387,671
12,000 Telewest Communications plc,
Sponsored ADR+ ..................... 163,829 549,000
31,000 United International Holdings Inc.,
Cl. A+ ............................. 521,869 2,096,375
10,000 Videotron Groupe ..................... 94,010 158,127
1,000 Wireless One Inc.+ ................... 2,204 2,625
----------- ------------
3,388,507 13,432,548
----------- ------------
Consumer Services -- 0.8%
10,000 Allied Domecq plc .................... 98,592 96,467
60,000 Cendant Corp. ........................ 1,048,699 1,230,000
15,000 Lillian Vernon Corp. ................. 223,875 195,000
2,000 Lowe's Companies Inc. ................ 72,475 113,375
500 Department 56 Inc.+ .................. 8,775 13,437
6,000 Travel Services Intl. Inc. ........... 133,889 72,000
----------- ------------
1,586,305 1,720,279
----------- ------------
Entertainment Distribution -- 1.2%
6,896 AMC Entertainment Inc. ............... 105,737 131,886
32,500 GC Companies Inc.+ ................... 986,413 1,161,875
10,000 Loews Cineplex Entertainment+ ........ 137,500 108,750
5,500 Shaw Communications Inc.+ ............ 120,244 218,625
19,500 Shaw Communications Inc., Cl. B
(Toronto)+ ......................... 122,708 771,530
2,000 TCI Music Inc.+ ...................... 11,205 70,750
----------- ------------
1,483,807 2,463,416
----------- ------------
Equipment -- 1.0%
5,000 Advanced Micro Devices+ .............. 104,125 90,313
33,000 Allen Telecom Inc.+ .................. 230,588 354,750
2,100 Amphenol Corp.+ ...................... 65,030 83,475
2,000 CommScope Inc.+ ...................... 29,407 61,500
2,000 Gemstar International Group Ltd. ..... 39,408 130,500
920 Koninklijke Philips Electronics N.V. . 33,672 92,805
2,500 L-3 Communications Hldgs Inc. ........ 55,000 120,781
6,000 Lucent Technologies Inc. ............. 156,875 404,625
2,000 Nortel Networks Corp. ................ 34,956 173,625
150,000 Oak Technology Inc.+ ................. 561,572 543,750
3,000 Scientific-Atlanta Inc. .............. 50,804 108,000
----------- ------------
1,361,437 2,164,124
----------- ------------
International Telephone -- 6.1%
36,000 BCE Inc. ............................. 724,362 1,775,250
45,000 BCT.Telus Communications Inc. ........ 810,821 1,081,099
12,000 BCT.Telus Communications Inc., Cl. A . 217,254 283,814
38,000 Cable & Wireless plc, Sponsored ADR .. 841,650 1,505,750
27,000 Compania de Telecomunicaciones
de Chile SA, Sponsored ADR ......... 490,841 668,250
210,000 CPT Telefonica del Peru, Cl. B ....... 430,392 315,709
500 CPT Telefonica del Peru SA,
Sponsored ADR ...................... 10,250 7,563
2,000 Deutsche Telekom AG, ADR+ ............ 37,780 84,500
15,000 Embratel Participacoes SA+ ........... 315,908 208,125
1,000 France Telecom SA, Sponsored ADR ..... 34,488 77,000
38,000 GST Telecommunications Inc.+ ......... 427,131 501,125
90 Japan Telecom Co. Ltd. ............... 992,218 1,279,868
500 Magyar Tavkozlesi Rt, Sponsored ADS .. 9,650 13,750
10 Nippon Telegraph & Telephone Corp. ... 81,575 116,577
See accompanying notes to financial statements.
10
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
International Telephone (Continued)
22,000 Philippine Long Distance
Telephone Co. ...................... $ 558,673 $ 662,750
7,000 PT Indosat ADR ....................... 84,423 136,500
4,320 PT Telekomunikasi Indonesia .......... 18,513 53,730
6,000 Quebec-Telephone ..................... 44,083 63,726
4,000 Rostelecom, Sponsored ADR ............ 29,778 39,250
3,300 Tele Centro Sul Participacoes SA+ .... 191,758 183,150
3,000 Telecom Argentina Stet France
Telecom SA, Sponsored ADR .......... 54,442 80,250
1,000 Telecom Corp. of New Zealand
Ltd., ADR .......................... 29,688 34,938
16,500 Telecomunicacoes Brasileiras
SA (Telebras) Sponsored ADR ........ 1,268 1,031
3,000 Telefonica de Argentina SA,
Sponsored ADR ...................... 64,387 94,125
14,280 Telefonica de Espana,
Sponsored ADR ...................... 676,219 2,100,945
12,000 Telefonos De Mexico SA, Cl. L, ADR ... 378,945 969,750
16,500 Tele Norte Leste Participacoes SA+ ... 252,380 306,281
16,500 Telesp Participacoes SA .............. 618,902 377,438
600 Telestra Corp., ADR+ ................. 30,324 69,300
----------- ------------
8,458,103 13,091,544
----------- ------------
Satellite -- 2.0%
300 Asia Satellite Telecommunications
Holdings Ltd Sponsored ADR ......... 5,693 6,919
40,000 COMSAT Corp. ......................... 809,110 1,300,000
4,000 EchoStar Communications Corp., Cl. A+ 105,808 613,750
10,000 General Motors Corp., Cl. H .......... 497,526 562,500
4,000 Globalstar Telecommunications+ ....... 13,663 92,750
15,008 Loral Space & Communications Ltd. .... 217,918 270,144
20,000 Pegasus Communications Corp.+ ........ 417,155 788,750
45,000 TCI Satellite Entertainment Inc.,
Cl. A+ ............................. 382,696 132,187
25,000 U.S. Satellite Broadcasting Co.+ ..... 301,855 450,000
----------- ------------
2,751,424 4,217,000
----------- ------------
Telecommunications -- 3.6%
8,745 Aliant Inc.+ ......................... 79,253 133,237
2,000 Allegiance Telecom Inc. .............. 28,500 109,750
3,000 Alltel Corp. ......................... 126,385 214,500
15,000 CoreComm Ltd. ........................ 152,100 723,750
10,000 Electric Lightwave Inc., Cl. A+ ...... 91,165 130,000
20,000 Frontier Corp ........................ 352,000 1,180,000
1,500 Global Telesystems Group Inc. ........ 8,705 121,500
1,305 Hellenic Telecommunication
Organization SA (OTE) .............. 18,163 27,938
10,000 Metromedia International Group Inc.+ . 83,550 75,000
45,000 RCN Corporation+ ..................... 394,119 1,873,125
9,655 Rogers Communications Inc., Cl. B+ ... 148,207 154,965
169,000 Rogers Communications Inc.,
Cl. B, ADR+ ........................ 1,449,096 2,735,688
3,000 Telegroup Inc.+ ...................... 30,000 30
6,500 Time Warner Telecom Inc.+ ............ 91,000 188,500
3,000 USN Communications Inc. .............. 12,165 30
----------- ------------
3,064,408 7,668,013
----------- ------------
Telecommunications -- Long Distance -- 2.8%
65,000 AT&T Corp. ........................... 1,386,120 3,627,812
5,800 MCI Worldcom Inc. .................... 167,754 499,163
12,000 Sprint Corp. ......................... 129,824 633,750
3,000 STARTEC Global Communications Corp.+ . 28,646 36,375
22,000 Viatel Inc. .......................... 228,733 1,234,750
----------- ------------
1,941,077 6,031,850
----------- ------------
U.S. Regional Operators -- 2.0%
5,000 Cincinnati Bell Inc. ................. 53,743 124,687
60,428 Citizens Utilities Co., Cl. B+ ....... 574,139 672,262
48,834 Commonwealth Telephone Enterprises
Inc.+ .............................. 846,619 1,982,350
11,000 GTE Corp. ............................ 377,300 833,250
10,000 SBC Communications Inc. .............. 225,042 580,000
2,000 US WEST Communications Group ......... 51,308 117,500
----------- ------------
2,128,151 4,310,049
----------- ------------
Utilities -- 1.0%
10,000 Cilcorp Inc. ......................... 609,250 625,000
50,000 El Paso Electric Co.+ ................ 396,002 446,875
10,000 New England Electric System .......... 484,117 501,250
10,000 Orange & Rockland Utilities Inc. ..... 547,433 584,375
----------- ------------
2,036,802 2,157,500
----------- ------------
See accompanying notes to financial statements.
11
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Wireless Communications -- 14.8%
220,000 Aerial Communications Inc.+ .......... $ 1,495,254 $ 2,970,000
10,000 BCE Mobile Communications Inc.+ ...... 293,302 304,987
3,000 Cable & Wireless Communications plc,
ADR ................................ 62,688 145,500
10,000 Cellular Comm of Puerto Rico ......... 149,033 285,000
37,000 CenturyTel Inc. ...................... 500,752 1,470,750
10,000 CommNet Cellular Inc.+ ............... 107,964 262,500
20,000 Iridium World Communications Ltd. .... 399,125 213,750
14,800 Leap Wireless International Inc. ..... 113,509 299,700
1,000 Libertel N.V.+ ....................... 21,874 19,577
8,447 NEXTEL Communications Inc. Cl. A+ .... 94,069 423,934
20 NTT Mobile Communications Network
Inc. ............................... 152,561 271,186
80 NTT Mobile Communications
Network Inc., New Shares ........... 610,244 1,071,517
180,000 Omnipoint Corp.+ ..................... 2,056,861 5,208,750
18,600 Price Communications Corp.+ .......... 81,009 279,000
2,000 Qualcomm Inc.+ ....................... 41,625 287,000
100,500 Rogers Cantel Mobile Communications
Inc., Cl. B+ ....................... 1,263,997 1,651,969
40,000 Rural Cellular Corp., Cl. A+ ......... 440,097 800,000
31,480 SK Telecom Co. Ltd., ADR ............. 309,663 535,160
3,500 Sprint Corp. (PCS Group) ............. 19,162 199,937
1,650 Tele Celular Sul Participacoes SA .... 26,379 35,784
5,500 Tele Centro Oeste Celular
Participacoes SA+ .................. 16,487 21,656
300,000 Telecom Italia Mobile SpA ............ 365,095 1,789,718
330 Tele Leste Celular Participacoes SA .. 8,827 9,817
825 Tele Nordeste Celular
Participacoes SA ................... 12,175 22,275
330 Tele Norte Celular Participacoes SA .. 5,098 8,931
117,000 Telephone and Data Systems Inc. ...... 5,059,287 8,548,312
6,000 Teligent Inc., Cl. A+ ................ 136,200 358,875
825 Telemig Celular Participacoes SA+ .... 23,843 20,316
3,300 Tele Sudeste Celular Participacoes
SA+ ................................ 104,503 95,700
6,600 Telesp Celular Participacoes SA+ ..... 211,036 176,550
18,000 Total Access Communications plc ...... 113,625 57,600
20,000 U.S. Cellular Corp.+ ................. 618,283 1,070,000
3,500 Vimpel-Communications, Sponsored
ADR+ ............................... 66,238 81,156
6,045 Vodafone AirTouch plc, Sponsored
ADR ................................ 1,190,865 1,190,865
15,000 VoiceStream Wireless Corp.+ .......... 129,274 426,563
16,000 Western Wireless Corp.+ .............. 167,000 432,000
9,000 WinStar Communications Inc.+ ......... 125,660 438,750
----------- ------------
16,592,664 31,485,085
----------- ------------
TOTAL DISTRIBUTION COMPANIES ...................... 58,085,814 108,048,250
----------- ------------
TOTAL COMMON STOCKS ............................... 98,103,668 186,078,441
----------- ------------
PREFERRED STOCKS -- 2.3%
Broadcasting -- 0.2%
9,000 Granite Broadcasting Corp.,
1.9375% Cv. Pfd. ................... 452,535 339,750
----------- ------------
Consumer Services -- 0.1%
6,000 Cendant Corp., 1.30% Cv. Pfd. ........ 152,738 174,750
----------- ------------
Global Media and Entertainment -- 0.9%
62,765 News Corp. Ltd., Sponsored ADR,
Pfd. ............................... 986,187 1,981,020
----------- ------------
U.S. Regional Operators -- 0.9%
41,000 Citizens Utilities Co., 5.00% Cv.
Pfd. ............................... 1,961,348 1,993,625
----------- ------------
Wireless Communications -- 0.2%
3,000 AirTouch Communications Inc., Ser.
C, 4.25% Cv. Pfd. ................. 133,293 443,063
----------- ------------
TOTAL PREFERRED STOCKS ............................ 3,686,101 4,932,208
----------- ------------
See accompanying notes to financial statements.
12
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Portfolio of Investments (Continued) -- June 30, 1999 (Unaudited)
================================================================================
Market
Shares Cost Value
------ ---- -----
COMMON STOCK WARRANTS AND RIGHTS -- 0.0%
200 Havas Advertising, Warrants,
expires 05/13/01 ................... $ 0 $ 534
600 Talk.com Inc., Rights,
expires 02/12/00 ................... 0 0
----------- ------------
TOTAL COMMON STOCK WARRANTS AND RIGHTS ............ 0 534
----------- ------------
Principal
Amount
------
CORPORATE BONDS -- 0.3%
Computer Software and Services -- 0.0%
50,000 BBN Corp., Sub. Deb. Cv., 6.00%
due 04/01/12 (b) ................... 49,391 48,500
----------- ------------
Equipment -- 0.1%
100,000 Trans-Lux Corp., Deb. Cv., 7.50%
due 12/01/06 ....................... 99,187 89,875
----------- ------------
Global Media and Entertainment -- 0.1%
20,000 Boston Celtics, Deb., 6.00%
due 06/30/38 ....................... 11,977 12,325
100,000 Viacom Inc., Sub. Deb., 8.00%
due 07/07/06 ....................... 89,181 103,000
----------- ------------
101,158 115,325
----------- ------------
Hotels and Gaming -- 0.1%
300,000 Hilton Hotels Corp., Deb. Cv.,
5.00% due 05/15/06 ................. 253,198 272,250
----------- ------------
TOTAL CORPORATE BONDS ............................. 502,934 525,950
----------- ------------
U.S. TREASURY BILLS -- 10.1%
21,780,000 3.15% to 4.61%++
due 07/01/99 to 09/23/99 ........... 21,611,762 21,611,341
----------- ------------
TOTAL INVESTMENTS -- 100.0% ....................... 123,904,465(a) 213,148,474
=========== ============
OTHER ASSETS, LIABILITIES AND LIQUIDATION
VALUE OF CUMULATIVE PREFERRED STOCK -- (14.7%) ............... (31,228,755)
------------
NET ASSETS -- COMMON STOCK
(10,833,815 common shares outstanding) -- 85.3% .............. 181,919,719
------------
NET ASSETS -- CUMULATIVE PREFERRED STOCK
(1,250,000 preferred shares outstanding) -- 14.7% ............ $ 31,250,000
------------
TOTAL NET ASSETS -- 100.0% ..................................... 213,169,719
============
NET ASSET VALUE PER COMMON SHARE
($181,919,719 / 10,833,815 shares outstanding ) .............. $16.79
======
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
Settlement Unrealized
Date Appreciation
---------- ------------
Forward Foreign Contracts to Deliver
3,592,510(c) Hong Kong Dollars in exchange for
USD $283,840 ..................... 08/24/99 $ 472
------------
- ---------------
(a) For Federal tax purposes:
Aggregate cost $123,904,465
============
Gross unrealized appreciation $ 91,561,504
Gross unrealized depreciation (2,317,495)
------------
Net unrealized appreciation $ 89,244,009
============
(b) Security fair valued as determined by the Board of Directors.
(c) Principal amount denoted in Hong Kong dollars.
+ Non-income producing security
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
ADS - American Depositary Share
USD - United States Dollars
ORD - Ordinary Share
GDR - Global Depositary Receipt
% of
Market Market
Value Value
----- -----
Geographic Diversification
United States ...................................... 79.5% $169,517,387
Europe ............................................. 6.9 14,611,119
Canada ............................................. 5.8 12,278,177
Asia/Pacific Rim ................................... 5.0 10,767,027
Latin America ...................................... 2.8 5,974,764
----- ------------
Net Assets ....................................... 100.0% $213,148,474
===== ============
See accompanying notes to financial statements.
13
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Statement of Assets and Liabilities
June 30, 1999 (Unaudited)
================================================================================
Assets:
Investments at value (Cost $123,904,465) .................. $ 213,148,474
Cash and foreign currency, at value
(Cost $80,298) .......................................... 80,039
Dividends and interest receivable ......................... 135,637
Receivable for investments sold ........................... 1,359,375
Unrealized appreciation on forward
foreign exchange contract ............................... 472
Unamortized organization costs ............................ 26,008
-------------
Total assets .......................................... 214,750,005
-------------
Liabilities:
Dividends payable ......................................... 20,625
Payable for investments purchased ......................... 1,190,865
Payable for investment advisory fees ...................... 169,487
Payable to custodian ...................................... 10,030
Accrued expenses and other payables ....................... 189,279
-------------
Total liabilities ..................................... 1,580,286
-------------
Net assets ............................................ $ 213,169,719
=============
Net Assets Consist of:
Cumulative Preferred Stock (7.92%, $25
liquidation value, $0.001 par value,
2,000,000 shares authorized with
1,250,000 shares issued and outstanding) ................ $ 31,250,000
Capital stock, at par value ............................... 10,834
Additional paid-in capital ................................ 76,025,754
Accumulated net investment loss ........................... (278,325)
Accumulated net realized gain on investments
and foreign currency transactions ....................... 16,917,234
Net unrealized appreciation on investments
and foreign currency transactions ....................... 89,244,222
-------------
Total Net Assets ...................................... $ 213,169,719
=============
Net Asset Value
($181,919,719 / 10,833,815 shares outstanding;
200,000,000 shares authorized
of $0.001 par value) .................................... $ 16.79
=============
Statement of Operations
For the Six Months Ended June 30, 1999 (Unaudited)
================================================================================
Investment Income:
Dividends (net of foreign witholding taxes
of $16,498) ............................................. $ 579,080
Interest .................................................. 478,832
-------------
Total Investment Income ............................... 1,057,912
-------------
Expenses:
Investment advisory fees .................................. 942,932
Shareholder communications expenses ....................... 155,618
Shareholder services fees ................................. 81,908
Legal and audit fees ...................................... 52,365
Amortization of organization costs ........................ 35,062
Payroll ................................................... 30,000
Custodian fees ............................................ 25,830
Directors' fees ........................................... 24,766
-------------
Total Expenses ........................................ 1,348,481
-------------
Net Investment Loss ......................................... (290,569)
-------------
Net Realized and Unrealized Gain / (Loss)
on Investments and Foreign Currency
Transactions:
Net realized gain on investments ........................ 18,427,487
Net realized loss on foreign currency
transactions .......................................... (13,982)
Net realized gain on investments
and foreign currency transactions ................... 18,413,505
-------------
Net unrealized appreciation on investments and
foreign currency transactions:
Beginning of period ................................... 56,434,020
End of period ......................................... 89,244,222
Change in net unrealized appreciation
on investments and foreign currency
transactions ........................................ 32,810,202
-------------
Net Realized and Unrealized Gain on Investments
and Foreign Currency Transactions ......................... 51,223,707
-------------
Net Increase in Net Assets Resulting from Operations ........ $ 50,933,138
=============
Statement of Changes in Net Assets
================================================================================
Six Months
Ended 6/30/99 Year Ended
(Unaudited) 12/31/98
------------- ------------
Operations:
Net investment loss ........................... $ (290,569) $ (381,417)
Net realized and unrealized gain on
investments and foreign currency
transactions ................................ 18,413,505 11,439,702
Net change in unrealized appreciation on
investments and foreign currency
transaction ................................. 32,810,202 24,982,337
------------ ------------
Net increase in net assets resulting
from operations ............................. 50,933,138 36,040,622
------------ ------------
Distributions to common stock shareholders:
Net realized gain on investment
transactions and futures contracts .......... -- (8,750,516)
------------ ------------
Total distributions to common stock
shareholders .............................. -- (8,750,516)
------------ ------------
Distributions to preferred stock shareholders:
Net realized gain on investment
transactions and futures contracts .......... (1,237,500) (2,475,000)
------------ ------------
Total distributions to preferred stock
shareholders .............................. (1,237,500) (2,475,000)
------------ ------------
Net decrease in net assets from Multimedia
Trust share transactions ...................... (268,345) (1,488,747)
------------ ------------
Net increase in net assets .................... 49,427,293 23,326,359
Net Assets:
Beginning of period ........................... 163,742,426 140,416,067
------------ ------------
End of period ................................. $213,169,719 $163,742,426
============ ============
See accompanying notes to financial statements.
14
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Notes to Financial Statements (Unaudited)
================================================================================
1. Organization. The Gabelli Global Multimedia Trust Inc. ("Multimedia Trust")
is a closed-end, non-diversified management investment company organized as a
Maryland corporation and registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), whose primary objective is long-term growth of capital
with income as a secondary objective. Investment operations commenced on
November 15, 1994. The Multimedia Trust had no operations prior to November 15,
1994, other than the sale of 10,000 shares of common stock for $100,000 to The
Gabelli Equity Trust Inc. (the "Equity Trust").
2. Significant Accounting Policies. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Multimedia Trust in the preparation of its financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers ("Nasdaq") or traded on foreign exchanges are valued at the last sale
price on that exchange as of the close of business on the day the securities are
being valued (if there were no sales that day, the security is valued at the
average of closing bid and asked prices or, if there were no asked prices quoted
on that day, then the security is valued at the closing bid price on that day).
All other portfolio securities for which over-the-counter market quotations are
readily available are valued at the latest average of the bid and asked prices.
Portfolio securities traded on more than one national securities exchange or
market are valued according to the broadest and most representative market, as
determined by Gabelli Funds, LLC (formerly Gabelli Funds, Inc.) (the "Adviser").
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board of Directors.
Short-term debt securities with remaining maturities of 60 days or less are
valued at amortized cost, unless the Directors determine such does not reflect
the securities' fair value, in which case these securities will be valued at
their fair value as determined by the Directors. Short-term debt instruments
having a greater maturity are valued at the highest bid price obtained from a
dealer maintaining an active market in those securities.
Repurchase Agreements. The Multimedia Trust may enter into repurchase
agreements with government securities dealers recognized by the Federal Reserve
Board, with member banks of the Federal Reserve System or with other brokers or
dealers that meet credit guidelines established by the Directors. Under the
terms of a typical repurchase agreement, the Multimedia Trust takes possession
of an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Multimedia Trust to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Multimedia Trust's
holding period. The Multimedia Trust will always receive and maintain securities
as collateral whose market value, including accrued interest, will be at least
equal to 100% of the dollar amount invested by the Multimedia Trust in each
agreement. The Multimedia Trust will make payment for such securities only upon
physical delivery or upon evidence of book entry transfer of the collateral to
the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to maintain the adequacy of the collateral. If the seller defaults
and the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Multimedia Trust may be delayed or limited.
Futures Contracts. The Multimedia Trust may engage in futures contracts
for the purpose of hedging against changes in the value of its portfolio
securities and in the value of securities it intends to purchase. Such
investments will
15
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
only be made if they are economically appropriate to the reduction of risks
involved in the management of the Multimedia Trust's investments. Upon entering
into a futures contract, the Multimedia Trust is required to deposit with the
broker an amount of cash or cash equivalents equal to a certain percentage of
the contract amount. This is known as the "initial margin." Subsequent payments
("variation margin") are made or received by the Multimedia Trust each day,
depending on the daily fluctuation of the value of the contract. The daily
changes in the contract are recorded as unrealized gains or losses. The
Multimedia Trust recognizes a realized gain or loss when the contract is closed.
The net unrealized appreciation/depreciation is shown in the financial
statements.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk the
Multimedia Trust may not be able to enter into a closing transaction because of
an illiquid secondary market.
Forward Foreign Exchange Contracts. The Multimedia Trust may engage in
forward foreign currency exchange contracts in an effort to reduce the level of
volatility caused by changes in foreign currency exchange rates. The Multimedia
Trust may use forward foreign exchange contracts to facilitate transactions in
foreign securities and to manage Multimedia Trust's currency exposure. Forward
foreign exchange contracts are valued at the forward exchange rate and are
marked-to-market daily. The change in market value is included in unrealized
appreciation/depreciation on investments and foreign currency transactions. When
the contract is closed, the Multimedia Trust records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Multimedia Trust's securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain
that might result should the value of the currency increase. In addition, the
Multimedia Trust could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts.
Foreign Currency. The books and records of the Multimedia Trust are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated on the respective dates of such
transactions. Unrealized gains and losses not relating to securities which
result from changes in foreign currency exchange rates have been included in
unrealized appreciation/depreciation on investments. Unrealized gains and losses
of securities, which result from changes in foreign exchange rates as well as
changes in market prices of securities, have been included in unrealized
appreciation/depreciation of investment securities. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date on
investment securities transactions, foreign currency transactions and the
difference between the amounts of interest and dividends recorded on the books
of the Multimedia Trust and the amounts actually received. The portion of
foreign currency gains and losses related to fluctuation in exchange rates
between the initial trade date and subsequent sale trade date is included in
realized gain/(loss) from investment securities sold.
Securities Transactions and Investment Income. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined using specific identification as the cost method. Interest income
(including amortization of premium and accretion of discount) is recorded as
earned. Dividend income is recorded on the ex-dividend date.
16
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
Dividends and Distributions to Shareholders. Distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various investment
securities held by the Multimedia Trust, timing differences and differing
characterization of distributions made by the Multimedia Trust. Distributions to
shareholders of 7.92% Cumulative Preferred Stock ("Preferred Stock") are accrued
on a daily basis and are determined as described in note 5.
Provision for Income Taxes. The Multimedia Trust has qualified and intends
to continue to qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code of 1986, as amended. As a result, a Federal income tax
provision is not required.
Dividends and interest from non-U.S. sources received by the Multimedia
Trust are generally subject to non-U.S. withholding taxes at rates ranging up to
30%. Such withholding taxes may be reduced or eliminated under the terms of
applicable U.S. income tax treaties, and the Multimedia Trust intends to
undertake any procedural steps required to claim the benefits of such treaties.
If the value of more than 50% of the Multimedia Trust's total net assets at the
close of any taxable year consists of stocks or securities of non-U.S.
corporations, the Multimedia Trust is permitted and may elect to treat any
non-U.S. taxes paid by it as paid by its shareholders.
Deferred Organization Expenses. A total of $350,000 was incurred in
connection with the organization of the Multimedia Trust. These costs have been
deferred and are being amortized on a straight-line basis over a period of 60
months from the date the Multimedia Trust commenced investment operations.
3. Agreements and Transactions with Affiliates. The Multimedia Trust has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Multimedia Trust will pay the Adviser on the
first business day of each month a fee for the previous month at the annual rate
of 1.00% of the Multimedia Trust's average weekly net assets. In accordance with
the Advisory Agreement, the Adviser manages the Multimedia Trust's portfolio,
makes investment decisions for the Multimedia Trust, places orders to purchase
and sell securities of the Multimedia Trust and oversees the administration of
all aspects of the Multimedia Trust's business and affairs. The Adviser has
agreed to reduce the management fee on the incremental assets attributable to
the Preferred Stock if the total return of the net asset value of the common
shares of the Multimedia Trust, including distributions and advisory fee subject
to reduction, does not exceed the stated dividend rate of the Preferred Stock.
For the six months ended June 30, 1999, total return of the net asset value of
the common shares of the Multimedia Trust exceeded the stated dividend rate of
the Preferred Stock and thus, such management fees were earned.
During the six months ended June 30, 1999, Gabelli & Company, Inc.
("Gabelli & Company") and its affiliates received $39,704 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Multimedia Trust.
4. Portfolio Securities. Cost of purchases and proceeds from sales of
securities, other than short-term securities, aggregated $44,236,142 and
$67,045,259, respectively, for the six months ended June 30, 1999.
5. Capital. The Board of Directors of the Multimedia Trust has authorized the
repurchase of up to 1,000,000 shares of the Multimedia Trust's outstanding
common stock. For the six months ended June 30, 1999, the Multimedia Trust
repurchased 21,900 shares of its common stock in the open market at a cost of
$268,345 and an average discount of approximately 16.20% from its net asset
value. All shares repurchased have been retired.
17
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
Common stock transactions were as follows:
Six months ended Year ended
June 30, 1999 December 31, 1998
--------------------- -----------------------
Shares Amount Shares Amount
-------- ---------- --------- -----------
Shares repurchased by
the Multimedia Trust ..... (21,900) $(268,345) (156,700) $(1,488,747)
------- --------- -------- -----------
Net decrease ............... (21,900) $(268,345) (156,700) $(1,488,747)
------- --------- -------- -----------
The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to 2,000,000 shares of $0.001 par value preferred stock. On June 4, 1997, the
Multimedia Trust received net proceeds of $29,836,000 (after offering costs and
underwriting discounts of $1,414,000) from the public offering of 1,250,000
shares of Preferred Stock. The Preferred Stock is senior to the common stock and
results in the financial leveraging of the common stock. Such leveraging tends
to magnify both the risks and opportunities to Common Shareholders. Dividends on
shares of the Preferred Stock are cumulative. The Multimedia Trust is required
to meet certain asset coverage tests with respect to the Preferred Stock. If the
Multimedia Trust fails to meet these requirements and does not correct such
failure, the Multimedia Trust may be required to redeem, in part or in full, the
Preferred Stock at a redemption price of $25.00 per share plus an amount equal
to the accumulated and unpaid dividends whether or not declared on such shares
in order to meet these requirements. Additionally, failure to meet the foregoing
asset requirements could restrict the Multimedia Trust's ability to pay
dividends to Common Shareholders and could lead to sales of portfolio securities
at inopportune times. Commencing June 1, 2002 and thereafter, the Multimedia
Trust, at its option, may redeem the Preferred Stock in whole or in part at the
redemption price. At June 30, 1999, 1,250,000 shares of the Preferred Stock were
outstanding at the fixed dividend rate of 7.92 percent per share and accrued
dividends amounted to $20,625. The income received on the Multimedia Trust's
assets may vary in a manner unrelated to the fixed rate, which could have either
a beneficial or detrimental impact on net investment income and gains available
to Common Shareholders.
The holders of Preferred Stock have voting rights equivalent to those of
the holders of common stock (one vote per share) and will vote together with
holders of shares of common stock as a single class. In addition, the 1940 Act
requires that along with approval of the holders of a majority of any
outstanding shares of Preferred Stock, voting separately as a class would be
required to (a) adopt any plan of reorganization that would adversely affect the
Preferred Stock, and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Trust's subclassification as a
closed-end investment company or changes in its fundamental investment
restrictions.
6. Industry Concentration. Because the Multimedia Trust primarily invests in
common stocks and other securities of foreign and domestic companies in the
telecommunications, media, publishing and entertainment industries, its
portfolio may be subject to greater risk and market fluctuations than a
portfolio of securities representing a broad range of investments.
18
<PAGE>
The Gabelli Global Multimedia Trust Inc.
Financial Highlights
================================================================================
Selected data for a share of capital stock outstanding throughout each period.
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1999 ---------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994*
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operating Performance
Net asset value, beginning of period ....... $ 12.20 $ 9.91 $ 8.10 $ 7.81 $ 7.51 $ 7.50
-------- -------- -------- ------- ------- -------
Net investment income/(loss) ............... (0.03) (0.03) 0.01 0.01 0.08 0.03
Net realized and unrealized gain
on investments ........................... 4.73 3.33 2.85 0.63 0.98 0.03
-------- -------- -------- ------- ------- -------
Total from investment operations ........... 4.70 3.30 2.86 0.64 1.06 0.06
-------- -------- -------- ------- ------- -------
Increase/(decrease)in net asset
value from share transactions ............ -- 0.02 0.06 0.02 (0.46) --
Offering expenses charged to
capital surplus .......................... -- -- (0.13) -- (0.05) --
Distributions to common stock
shareholders:
Net investment income ...................... -- -- (0.01) (0.01) (0.08) (0.03)
Net realized gains ......................... -- (0.80) (0.84) (0.36) (0.17) --
Distributions in excess of net
investment income and/or net
realized gains ........................... -- -- (0.00)(a) (0.00)(a) (0.00)(a) (0.01)
Paid-in capital ............................ -- -- -- -- -- (0.01)
Distributions to preferred stock
shareholders:
Net investment income ...................... -- -- (0.00)(a) -- -- --
Net realized gains ......................... (0.11) (0.23) (0.13) -- -- --
-------- -------- -------- ------- ------- -------
Total distributions ........................ (0.11) (1.03) (0.98) (0.37) (0.25) (0.05)
-------- -------- -------- ------- ------- -------
Net asset value, end of period ............. $ 16.79 $ 12.20 $ 9.91 $ 8.10 $ 7.81 $ 7.51
======== ======== ======== ======= ======= =======
Market value, end of period ................ $ 15.000 $ 10.938 $ 8.750 $ 6.875 $ 6.760 $ 7.375
======== ======== ======== ======= ======= =======
Net Asset Value Total Return** ............. 37.6% 33.0% 34.4% 9.4% 14.1% 0.8%
======== ======== ======== ======= ======= =======
Total Return*** ............................ 37.1% 35.1% 39.6% 7.4% 0.4% (7.9)%
======== ======== ======== ======= ======= =======
Ratios to average net assets
available to common stock
shareholders/supplemental data:
Net assets, end of period (in 000's) ....... $213,170 $163,742 $140,416 $91,462 $89,580 $64,606
Net assets attributable to common
shares, end of period (in 000's) ......... $181,920 $132,492 $109,166 $91,461 $89,580 $84,606
Ratio of net investment
income/(loss) to average
net assets ............................... (0.31)%+ (0.32)% 0.07% 0.13% 1.24% 3.15%+
Ratio of operating expenses to
average net assets attributable
to common stock .......................... 1.71%+ 2.53% 2.09% 1.87% 2.04% 1.74%+
Ratio of operating expenses to
average total net assets ................. 1.43%+ 2.01% 1.77% 1.87% 2.04% 1.74%+
Portfolio turnover rate .................... 25.6% 44.6% 96.1% 32.1% 86.0% 0.0%
Preferred Stock:
Liquidation value, end of period
(in 000's) ............................... $ 31,250 $ 31,250 $ 31,250
Total shares outstanding (in 000's) ........ 1,250 1,250 1,250
Asset coverage ............................. 682% 524% 443%
Liquidation preference per share ........... $ 25.00 $ 25.00 $ 25.00
Average market value (b) ................... $ 25.81 $ 25.96 $ 25.59
</TABLE>
- ----------
* The Fund commenced operations on November 15, 1994.
** Based on net asset value per share, adjusted for reinvestments of all
distributions and rights offering in 1995. Total return for the period of
less than one year is not annualized.
*** Based on market value per share, adjusted for reinvestments of all
distributions and rights offering in 1995. Total return for the period of
less than one year is not annualized.
+ Annualized.
(a) Amount represents less than $.005 per share.
(b) Based on weekly prices.
See accompanying notes to financial statements.
19
<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 NYSE trading day, the next trading day. If the net asset value of the
Common Stock at the time of valuation exceeds the market price of the Common
Stock, participants will receive shares from the Multimedia Trust valued at
market price. If the Multimedia Trust should declare a dividend or capital gains
distribution payable only in cash, State Street will buy Common Stock in the
open market, or on the NYSE 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 1st
and 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.
20
<PAGE>
DIRECTORS AND OFFICERS
THE GABELLI GLOBALMULTIMEDIA TRUST INC.
One Corporate Center, Rye, NY 10580-1434
Directors
Mario J. Gabelli, CFA
Chairman & Chief Investment Officer
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
Former 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, The Bethlehem Corp.
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 Advisor
Gabelli Funds, LLC
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
Common 7.92% Preferred
------ ---------------
NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 10,833,815 1,250,000
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity Funds," in Sunday's The New York Times and
"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>
[GRAPHIC OMITTED]
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
One Corporate Center
Rye, NY 10580-1434
(914) 921-5070
http://www.gabelli.com
Semi-Annual Report
June 30, 1999
GBFMT 06/99
