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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
SEMI-ANNUAL REPORT
JUNE 30, 2000
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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.
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MORNINGSTAR RATED(TM) GABELLI
GLOBAL MULTIMEDIA TRUST 5 STARS OVERALL
AND FOR THE THREE- AND FIVE-YEAR PERIOD ENDED
06/30/00 AMONG 54 AND 51 DOMESTIC
EQUITY FUNDS, RESPECTIVELY.
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#1 SECTOR FUND!
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LIPPER INC. RANKED GABELLI
GLOBAL MULTIMEDIA TRUST #1 FOR THE
THREE-YEAR PERIOD ENDED 06/30/00 AMONG
15 CLOSED-END SECTOR EQUITY FUNDS.
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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. 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,
In 1999, the Trust excelled in what investment pundits christened the
"TMT" (Technology, Media, Telecommunications) stock market. In the second
quarter of 2000, "TMT" did not ignite. Technology stocks corrected sharply and
media and telecommunications stocks drifted lower. After recent years'
exceptionally strong performance, the Trust took a small step back as we saw
widespread profit taking in all sub-sectors of the multimedia industry.
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, The Gabelli Global Multimedia
Trust's (the "Multimedia Trust") net asset value ("NAV") decreased 10.66%. The
Morgan Stanley Capital International World Free Index of global equity markets
and Lipper Global Fund Average declined 3.81% and 4.73% respectively, over the
same period. The Morgan Stanley World Free Index is an unmanaged indicator of
stock market performance, while the Lipper Average reflects the average
performance of mutual funds classified in this particular category.
The Multimedia Trust was up 34.09% over the trailing twelve-month period
after adjusting for the $3.695 per share in distributions during this period.
The Morgan Stanley World Free Index and Lipper Global Fund Average rose 12.37%
and 21.96%, respectively, over the same twelve-month period.
For the five-year period ended June 30, 2000, the Multimedia Trust's total
return averaged 31.21% annually, including adjustments of $6.4275 per share in
distributions during this period, versus average annual total returns of 16.62%
and 17.03% for the Morgan Stanley World Free Index and Lipper Global Fund
Average, respectively. Since inception on November 15, 1994 through June 30,
2000, the Multimedia Trust had a cumulative total return of 314.48%, including
adjustments of $6.4775 per share in distributions, which equates to an average
annual total return of 28.73%.
The Multimedia Trust's common shares ended the second quarter at $13.75
per share on the New York Stock Exchange, a decline of 21.99% for the second
quarter. The Multimedia Trust's common shares rose 10.96% over the trailing
twelve-month period after adjusting for all distributions.
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AVERAGE ANNUAL RETURNS - JUNE 30, 2000
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NAV Average Average Annual
Annual Return Investment Return(A)
------------- -----------------
1 Year ................................... 34.09% 10.96%
5 Year ................................... 31.21% 24.93%
Life of Fund (SINCE NOVEMBER 15, 1994) ... 28.73% 20.63%
(A) BASED ON INITIAL OFFERING PRICE OF $7.50
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RIGHTS OFFERING 2000 - AN OUTSTANDING SUCCESS - THANK YOU
The Multimedia Trust Rights Offering proved once again to be an
overwhelming success. Rights offerings have historically been a fair and
efficient method to raise additional capital. This method is widely used in
England. The traditional rights offering allows an issuer's shareholders to
participate directly in the growth of that issuer by purchasing additional
common shares at a set subscription price.
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Pyramid text as follows:
EPS
PMV
MANAGEMENT
CASH FLOW
RESEARCH
Shareholders of record on June 19, 2000 were issued one Right for each
share of the Multimedia Trust. Three Rights were required to purchase one
additional share of the Multimedia Trust at $13 per share without incurring
commission costs. Shareholders remitted over $85 million in subscription
requests, of which the Trust retained $46.8 million for the 3,598,938 shares
offered. This compares to our 1995 Rights Offering where the Trust's
shareholders remitted approximately $44 million in subscription requests and
$18.6 million in additional capital was raised.
Furthermore, since these Rights were transferable, shareholders who chose
not to exercise their Rights, could sell their Rights. The market value of the
Rights during the subscription period was such that sellers of the Rights would
have regained a portion of the ultimate decline in the value of their holdings
that resulted from the Offering. Our subscription agent, EquiServe, sold Rights
in the open market through Gabelli & Company, Inc. at a nominal commission
through July 25, 2000.
We appreciate the efforts of the brokerage community in explaining the
offering to their clients, resulting in a high level of participation.
GLOBAL ALLOCATION
The accompanying chart presents the Trust's holdings by geographic region
as of June 30, 2000. The geographic allocation will change based on current
global market conditions. Countries and/or regions represented in the chart and
below may or may not be included in the Trust's future portfolio.
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY GEOGRAPHIC REGION - 6/30/00
United States 68.5%
Asia/Pacific Rim 10.2%
Europe 9.8%
Canada 8.3%
Latin America 3.2%
2
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EQUITY MIX
The Multimedia Trust's investment premise falls within the context of two
main investment themes: 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 and
commerce-related services such as basic voice, data and the Internet.
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
HOLDINGS BY CLASSIFICATION - 6/30/00
Distribution 61.0%
Copyright/Creativity 39.0%
The accompanying chart depicts the equity mix of the copyright/creativity
and distribution companies in the Trust's portfolio as of June 30, 2000.
COMMENTARY
A WELL EARNED NAP
Although we saw isolated earnings disappointments, multimedia companies
generally met or exceeded earnings expectations from the first quarter of 2000.
So why did investors suddenly lose interest in one of the best performing
industry sectors in recent years? The answer is valuations and a reversal in
investor sentiment. The stock prices of leading multimedia companies had become
somewhat extended relative to trailing earnings and short-term earnings
projections. Justifiably, investors began to worry that these stocks were ahead
of themselves. Additionally, the fear spawned by the sharp technology stock
correction spilled over into other top performing groups including multimedia.
With the rise of momentum investing--buying stocks simply because they are
going up in price--stocks in spotlight industries such as technology and
multimedia will periodically become overvalued and vulnerable to a correction.
We tend to ignore this kind of short-term market commotion. We want to own good
businesses with the potential to grow in value over the long term. As long as
our portfolio holdings are living up to our fundamental expectations, we are
willing to tolerate short-term market turbulence.
We do not see any change in what we believe to be a very bright outlook
for quality companies in multimedia businesses. The Interactive Age is still in
its infancy. Going forward, quality distribution (wired and wireless
telecommunications systems and cable television and broadcast networks) and
information and entertainment content (publishers and film and television
production companies) will be among the world's most prized assets.
Multimedia stocks may continue to tread water over the short term.
However, ongoing consolidation in the industry should produce headlines that
reawaken investor interest in the sector and help multimedia stocks regain
momentum in the year ahead.
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DEALS...DEALS...AND MORE DEALS
A component of our investment methodology is to identify industry and
sector trends and themes ahead of the curve and position ourselves to take
advantage of these developments. Consolidation in a particular industry is one
such dynamic. As we have shared with you in previous quarterly letters, the
continued high level of activity in mergers and acquisitions contributed
significantly to the solid performance of our Multimedia Trust. The accompanying
table illustrates how deal activity surfaced value in a small sample of the
portfolio holdings.
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<TABLE>
<CAPTION>
2000 COMPLETED DEALS
NUMBER AVERAGE COST CLOSING
FUND HOLDING OF SHARES (a) PER SHARE (b) PRICE (c) CLOSING DATE %RETURN (d)
------------ ------------- ------------- --------- ------------ -----------
FIRST QUARTER 2000 ANNOUNCED DEALS
----------------------------------
<S> <C> <C> <C> <C> <C>
CommNet Cellular Inc. 75,000 $28.19 $32.38 01/06/00 14.86%
Aliant Inc. 8,745 9.06 19.02 01/28/00 109.93%
Ascent Entertainment Group Inc. 250,000 11.95 15.25 03/28/00 27.62%
SECOND QUARTER 2000 ANNOUNCED DEALS
-----------------------------------
Times Mirror Co., Cl. A 4,500 23.58 94.94 04/18/00 302.63%
Aerial Communications Inc. 55,000 12.97 49.63 05/04/00 282.65%
EarthLink Network Inc. 3,230 14.01 18.44 05/09/00 31.62%
Cable & Wireless Communications plc 3,000 20.90 69.38 05/11/00 231.96%
Hachette Filipacchi Medias 3,500 24.94 76.57 05/19/00 207.02%
Flextech plc 6,000 6.26 13.79 05/22/00 120.29%
CTV Inc. 4,000 8.40 38.50 05/26/00 358.33%
Mirage Resorts Inc. 10,000 14.81 20.94 05/31/00 41.39%
Quebec-Telephone 6,000 7.35 15.53 06/05/00 111.29%
NRJ SA 300 75.65 610.02 06/16/00 706.37%
</TABLE>
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(a) Number of shares held by the Fund on the final day of trading for the
issuer.
(b) Average purchase price of issuer's shares held by the Fund on the final day
of trading for the issuer.
(c) Closing price on the final day of trading for the issuer or the tender price
on the closing date of the tender offer.
(d) Represents average estimated return based on average cost per share and
closing price per share.
NOTE: SEE THE PORTFOLIO OF INVESTMENTS FOR A COMPLETE LISTING OF HOLDINGS.
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INVESTMENT SCOREBOARD
Over the past several years, we have had a terrific portfolio batting
average, enhanced by the buoyant multimedia stock market. This quarter, in a
market that has temporarily abandoned almost everything with a multimedia label,
we did not reach base safely as often as in previous quarters.
Other than the generally poor performance of our telecommunications
holdings, especially wireless communications stocks, there was no discernible
industry group pattern among our winners and losers. Some of our broadcasting
company holdings performed well (Young Broadcasting, Meredith, Infinity
Broadcasting, Clear Channel Communications and Chris-Craft). Some performed
poorly (Ackerley Group, British Sky Broadcasting and Gray Communications). One
of our largest cable television holdings (Cablevision) produced a double-digit
return,
4
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but other cable investments (UnitedGlobalCom, Rogers Communications and Comcast)
disappointed. Among the multimedia giants, Viacom excelled while News Corp and
Time Warner languished. This pattern repeated itself through virtually all the
multimedia sub-sectors represented in the portfolio.
THE NEXT BIG MEDIA DEAL
The partnering of Viacom/CBS, AOL/Time Warner, Vivendi/Canal Plus/Seagram,
Liberty Media Group/UnitedGlobalCom show that media industry mergers marrying
content to distribution are accelerating. There are still plenty of attractive
singles looking to partner up and the band is not ready for a break. The big
multimedia wolves are there, with News Corp's Rupert Murdoch circling the dance
hall, Viacom's Sumner Redstone and Mel Karmazin positioned by the punch bowl,
and AOL/Time Warner's Steve Case and Gerald Levin and Liberty Media's John
Malone catching their breath by the bandstand. Look, there's Chris-Craft's Herb
Siegel snapping his fingers and looking like he's finally ready to cut the rug
with somebody. And, off in the corner is NBC's Bob Wright wondering if GE's Jack
Welch will set him free to pursue another liaison. USA Network's Barry Diller is
flirting with everyone while trying to decide on the appropriate partner. The
whole place is a flutter with the rumor that AT&T's Michael Armstrong may be
showing up later.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Trust.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
CABLEVISION SYSTEMS CORP. (CVC - $67.875 - NYSE) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
spans state-of-the-art, high-speed multimedia delivery, subscription cable
television services, championship professional sports teams and national cable
television networks. Headquartered in Bethpage, N.Y., Cablevision serves nearly
3 million cable customers in the most important cable TV market - New York.
Cablevision is a leader in delivering cutting-edge technological innovation such
as high-speed cable, to the home. Through its Rainbow Media Holdings subsidiary,
which the company is in the process of spinning-off to shareholders, Cablevision
manages recognized content offerings such as American Movie Classics, Bravo and
The Independent Film Channel. Cablevision owns and operates New York City's
famed Madison Square Garden, which includes the arena complex, the N.Y. Knicks,
the N.Y. Rangers and the MSG network. Cablevision also operates Radio City
Entertainment and holds a long term lease for Radio City Music Hall, home of the
world-famous Rockettes.
CHRIS-CRAFT INDUSTRIES INC. (CCN - $66.0625 - NYSE), through its 80% ownership
of BHC Communications (BHC - $152.00 - AMEX), is primarily a television
broadcaster. BHC owns and operates UPN affiliated stations in New York (WWOR),
Los Angeles (KCOP) and Portland, Oregon (KPTV). BHC also owns 58% of United
Television (UTVI - $128.75 - Nasdaq), which operates an NBC affiliate, an ABC
affiliate and five UPN affiliates. Chris-Craft's television stations constitute
one of the nation's largest television station groups, reaching approximately
22% of U.S. households. Chris-Craft is a major beneficiary of the recent FCC
ruling allowing television duopoly, or ownership of two stations in a single
market. The Chris-Craft complex is debt free, with roughly $1.5 billion in cash
and marketable securities. On August 14, News Corp. (NWS - $54.50 - NYSE)
announced that it would purchase Chris-Craft (along with BHC and United
Television) in a deal worth $5.35 billion. According to the terms of the deal,
CCN shareholders will receive a package of cash and securities having an
"initial" stated value of $85 per share.
5
<PAGE>
LIBERTY CORP. (LC - $42.00 - NYSE), headquartered in Greenville, S.C., is a
holding company with operations in broadcasting and insurance. Liberty's Cosmos
Broadcasting owns and operates eleven network affiliated television stations in
the Southeast and Midwest. Six stations are affiliated with NBC, three with ABC
and two with CBS. These stations serve more than four million households.
Liberty Life is a regional insurer, with North Carolina, South Carolina and
Louisiana accounting for more than 50% of its premium volume. The insurance
segment specializes in providing agency (home service) and mortgage protection,
life and health insurance. In February 1999, Liberty hired an investment banker
and began a strategic review which may result in a spinoff. In June, Liberty
announced it will sell its insurance operations to Royal Bank of Canada for $650
million, refocusing the company on its broadcasting operations. The company's
Cosmos Broadcasting unit is also buying Civic Communications for $204 million,
bringing the number of television stations to 15.
LIBERTY MEDIA GROUP (LMG'A - $24.25 - NYSE) is engaged in businesses which
provide programming services (including production, acquisition and distribution
through all media formats) as well as businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in
globally-branded entertainment networks such as Discovery Channel, USA Network,
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.
NEWS CORP. LTD. (NWS - $54.50 - NYSE; NCP - $13.76 - AUSTRALIAN STOCK EXCHANGE),
together with its subsidiaries, is a diversified international communications
company, engaged in the production and distribution of motion pictures and
television programming; television satellite and cable broadcasting; the
publication of newspapers, magazines and books; the production and distribution
of promotional and advertising products and services; the development of digital
broadcasting; the development of conditional access and subscriber management
systems; and the provision of computer information services. The activities of
News Corp. are conducted principally in the United States, the United Kingdom
and Australia and the Pacific Basin. News Corp. has also entered into joint
ventures to provide direct broadcast satellite ("DBS") television services in
Latin America. On August 14, News Corp. announced it would purchase Chris-Craft
(along with BHC and United Television) in a deal initially valued at $5.35
billion.
SEAGRAM CO. (VO - $58.00 - NYSE) operates two global businesses: beverages and
entertainment. The beverage group's major brands include Chivas Regal, Martell,
Mumm, Crown Royal and Seagram's Gin. With its $10.4 billion December acquisition
of Polygram, Seagram has created the world's leading music company, the
Universal Music Group. Seagram's entertainment business includes the Universal
Motion Pictures Group, the Universal Studios Recreation Group and a 46% interest
in USA Networks (USAI - $21.625 - Nasdaq). On June 20th, Seagram, Vivendi and
Canal Plus agreed to merge, creating a fully integrated global media and
communications company for the wired and wireless world.
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TELEPHONE & DATA SYSTEMS INC. (TDS - $100.25 - AMEX) is a diversified
telecommunications service company with cellular telephone, local telephone and
personal communications services ("PCS") operations. TDS serves 3.7 million
customers in 35 states. TDS conducts the vast majority of its cellular
operations through its 81% owned United States Cellular Corp. (USM - $63.00 -
AMEX) and conducts its telephone operations through its wholly-owned TDS
Telecommunications Corp. ("TDS Telecom") subsidiary, a full-service local
exchange carrier. Having completed a merger of its 82%-owned PCS subsidiary
Aerial Communications with VoiceStream Wireless (VSTR - $116.30 - Nasdaq), TDS
now owns 35.6 million shares of VSTR valued at over $5.0 billion.
USA NETWORKS INC. (USAI - $21.625 - 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 - $68.375 - NYSE), long a major provider of entertainment
"content", has evolved into one of the world's dominant media companies.
Non-core assets are being divested and debt has been reduced to approximately $8
billion. Viacom is focusing on the global expansion of its media franchises.
Viacom is particularly well-positioned in music (notably MTV) and cable networks
(such as Nickelodeon). On May 3, Viacom closed the merger with CBS in a $49.6
billion transaction.
VOICESTREAM WIRELESS CORP. (VSTR - $116.30 - NASDAQ) is one of the three U.S.
independent wireless service providers with licenses covering over 200 million
POPS ("Point of Presence"). VSTR was spun-off from Western Wireless about
fourteen months ago and is the only national carrier utilizing GSM ("Global
System for Mobile Communication") technology, a standard which dominates in
Europe. VSTR's high growth rates and experienced management team, as well as its
national licenses, make the company an attractive acquisition target for major
global telecommunications companies, many of which lack a U.S. presence. On July
24, 2000, Deutsche Telekom (DT - $56.75 - NYSE) announced that it would purchase
VoiceStream in a deal with an initial value of $50.5 billion.
SHAREHOLDER MEETING - MAY 15, 2000 - FINAL RESULTS
The Annual Meeting of Shareholders was held on May 15, 2000 at the
Greenwich Library in Greenwich, Connecticut. At that meeting, common
shareholders and preferred shareholders voting as a single class elected Frank
J. Fahrenkopf, Jr., Karl Otto Pohl, Anthony R. Pustorino and Werner J. Roeder as
Directors of the Multimedia Trust. A total of 10,496,918 votes, 10,468,746
votes, 10,507,006 votes and 10,513,889 votes were cast in favor of each Director
and 172,796 votes, 200,968 votes, 162,708 votes and 155,825 votes were withheld
for each Director, respectively. Preferred shareholders voting as a separate
class elected James P. Conn as a Director of the Multimedia Trust. A total of
1,165,507 votes were cast in favor of this Director and 7,570 votes were
withheld for this Director, respectively.
Mario J. Gabelli, Thomas E. Bratter, Felix J. Christiana and Salvatore J.
Zizza continue to serve in their capacities as Directors of the Multimedia
Trust.
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<PAGE>
Additionally, shareholders ratified the selection of PricewaterhouseCoopers LLP
as the independent accountants of the Multimedia Trust for the fiscal year
ending December 31, 2000. 10,550,338 votes were cast in favor of this proposal,
51,489 votes were cast against this proposal and 67,888 votes abstained.
We thank you for you participation and appreciate your continued support.
STOCK REPURCHASE PLAN
The Gabelli Global Multimedia Trust is authorized to repurchase up to
1,000,000 shares of the Multimedia Trust's outstanding shares. 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, 2000, 679,733 shares have been repurchased in the open market
under this stock repurchase plan.
7.92% CUMULATIVE PREFERRED STOCK - DIVIDENDS
The Multimedia Trust's 7.92% Cumulative Preferred Stock paid a cash
distribution on June 26, 2000 of $0.495 per share. For the twelve-months ended
June 30, 2000, Preferred Stock shareholders received distributions totaling
$1.98, the annual dividend rate per share of Preferred Stock. The next
distribution is scheduled for September 2000.
WWW.GABELLI.COM
Please visit us on the Internet. Our home page at http://www.gabelli.com
contains information about Gabelli Asset Management 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].
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IN CONCLUSION
For the first quarter since the global hedge fund debacle of late summer
1998; the Multimedia Trust took a step backwards. We do not believe this signals
an end to what has been a terrific market for multimedia stocks. Fundamentals in
multimedia industries remain stable, strong secular growth trends remain intact,
and we believe merger and acquisition activity will accelerate as media
companies seek to improve their competitive positions through marrying content
with distribution and extending their global franchises. Call this quarter a
well-deserved breather after a long and impressive run. We expect multimedia
stocks and the Trust to regain momentum in the year ahead.
Sincerely,
/S/ SIGNATURE
MARIO J. GABELLI, CFA
President and Chief Investment Officer
August 14, 2000
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TOP TEN HOLDINGS
JUNE 30, 2000
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Liberty Media Group Chris-Craft Industries Inc.
Viacom Inc. Seagram Co.
Telephone & Data Systems Inc. VoiceStream Wireless Corp.
USA Networks Inc. Cablevision Systems Corp.
Liberty Corp. News Corp. Ltd.
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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, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 92.0%
COPYRIGHT/CREATIVITY COMPANIES -- 35.9%
ADVERTISING -- 0.1%
4,000 Bowlin Outdoor Advertising
& Travel Centers Inc.+ ........ $ 20,162 $ 25,500
4,000 Havas Advertising SA ........... 19,126 91,465
100 Lamar Advertising Co. .......... 3,279 4,331
200 Publicas SA .................... 13,971 78,480
------------ ------------
56,538 199,776
------------ ------------
CABLE PROGRAMMERS -- 3.9%
60,000 Canal Plus, ADR+ ............... 431,000 2,216,625
320,000 USA Networks Inc.+ ............. 3,027,842 6,920,000
------------ ------------
3,458,842 9,136,625
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 0.8%
1,000 Activision Inc.+ ............... 6,415 6,500
360 America Online Inc.+ ........... 2,800 18,990
3,000 Atlus Co. Ltd. ................. 17,662 37,891
1,000 Barnesandnoble.com Inc.+ ....... 15,875 6,531
10,000 Block (H&R) Inc. ............... 319,962 323,750
2,000 CDNow Inc.+ .................... 12,446 6,187
3,230 EarthLink Inc.+ ................ 45,250 49,863
500 Electronic Arts Inc.+ .......... 11,176 36,469
70,000 Genuity Inc.+ .................. 715,050 640,938
40,000 Homegrocer.com Inc.+ ........... 480,000 241,250
500 Intel Corp. .................... 8,125 66,844
3,000 Internet.com Corp.+ ............ 43,125 59,062
1,000 Microsoft Corp.+ ............... 7,755 80,000
2,000 Mobius Management
Systems+ ...................... 12,540 9,125
8,000 NBC Internet Inc., Cl. A+ ...... 337,144 100,000
100 Pixar Inc.+ .................... 2,200 3,525
10,600 Talk.com Inc.+ ................. 56,803 61,612
1,000 Ticketmaster Online-City
Search Inc.+ .................. 17,125 15,937
400 Via Net.Works Inc.+ ............ 8,400 6,175
------------ ------------
2,119,853 1,770,649
------------ ------------
CONSUMER PRODUCTS -- 0.0%
4,000 Mattel Inc. .................... 64,200 52,750
------------ ------------
DIVERSIFIED PUBLISHERS -- 8.9%
10,000 Arnoldo Mondadori
Editore SpA ................... 63,827 225,798
40,000 Belo (A.H.) Corp., Cl. A ....... 534,006 692,500
28,000 Central Newspapers Inc.,
Cl. A ......................... 1,535,848 1,771,000
1,000 Dow Jones & Co. Inc. ........... 46,722 73,250
10,000 EMAP plc ....................... 191,883 160,842
MARKET
SHARES COST VALUE
------ ---- ------
2,833 Golden Books Family
Entertainment Inc.+ ........... $ 0 $ 2,302
20,000 Harcourt General Inc. .......... 788,970 1,087,500
15,000 Harte-Hanks
Communications Inc. ........... 166,250 375,000
1,000 Hollinger International Inc. ... 16,175 13,625
4,500 Houghton Mifflin Co. ........... 98,156 210,094
57,000 Independent News
& Media plc, Dublin ........... 84,531 209,520
57,000 Independent News
and Media plc, Dublin,
New Shares .................... 84,532 209,520
7,000 Knight-Ridder Inc. ............. 199,215 372,312
55,000 Lee Enterprises Inc. ........... 1,204,236 1,282,187
20,000 McClatchy Newspapers
Inc., Cl. A ................... 546,094 662,500
8,000 McGraw-Hill
Companies Inc. ................ 205,450 432,000
20,000 Media General Inc., Cl. A ...... 910,175 971,250
15,000 Meredith Corp. ................. 194,075 506,250
115,000 Nation Multimedia Group+ ....... 110,028 57,243
100,000 New Straits Times Press
Berhad ........................ 296,714 236,842
125,000 Oriental Press Group ........... 46,315 20,044
95,000 Penton Media Inc. .............. 1,361,350 3,325,000
10,000 Playboy Enterprises Inc.,
Cl. A+ ........................ 97,125 117,500
113,400 Post Publishing Co. Ltd.+ ...... 240,906 92,630
40,000 PRIMEDIA Inc.+ ................. 480,497 910,000
28,000 Pulitzer Inc. .................. 484,774 1,181,250
60,000 Reader's Digest Association
Inc., Cl. B ................... 1,353,117 2,193,750
34,452 Singapore Press Holdings Ltd. .. 446,286 538,624
385,000 South China Morning Post
Holdings ...................... 273,458 298,794
300 SPIR Communication ............. 23,329 22,513
15,000 Telegraaf Holdingsmij - CVA .... 285,271 343,710
50,000 Thomas Nelson Inc. ............. 595,437 428,125
30,000 Tribune Co. .................... 869,206 1,050,000
11,300 United News & Media
plc, ADR ...................... 268,402 314,281
800 Wiley (John) & Sons Inc.,
Cl. B ......................... 5,692 18,800
4,000 Wolters Kluwer NV .............. 90,625 106,550
2,000 Ziff-Davis Inc. ................ 21,287 18,000
------------ ------------
14,219,964 20,531,106
------------ ------------
ENTERTAINMENT PRODUCTION -- 8.5%
2,522 EMI Group plc .................. 12,682 22,896
20,000 EMI Group plc, ADR ............. 317,997 371,206
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
ENTERTAINMENT PRODUCTION (CONTINUED)
7,000 Grammy Entertainment plc+ ...... $ 55,457 $ 17,869
7,000 Granada Group plc .............. 35,566 69,905
7,000 GTECH Holdings Corp.+ .......... 118,256 158,812
2,000 Harvey Entertainment Co.+ ...... 20,022 6,250
680,000 Liberty Media Group, Cl. A+ .... 2,375,460 16,490,000
1,000 Martha Stewart Living
Inc., Cl. A+ .................. 18,000 22,000
40,710 Metro-Goldwyn-Mayer Inc.+ ...... 795,271 1,063,549
10,000 Premier Parks Inc. ............. 250,181 227,500
3,000 Princeton Video Image Inc.+ .... 21,000 17,250
100,000 Shaw Brothers
(Hong Kong) Ltd. .............. 145,929 103,906
35,000 TV Guide Inc., Cl. A+ .......... 808,776 1,198,750
2,000 World Wrestling Federation
Entertainment Inc.+ ........... 28,750 41,625
------------ ------------
5,003,347 19,811,518
------------ ------------
GLOBAL MEDIA AND ENTERTAINMENT -- 11.1%
481 Boston Celtics L.P. ............ 4,267 4,720
60,000 Disney (Walt) Co. .............. 1,560,349 2,328,750
40,000 Fox Entertainment Group Inc. ... 902,750 1,215,000
38,000 Grupo Televisa SA, GDR+ ........ 862,619 2,619,625
21,000 News Corp. Ltd., ADR ........... 413,278 1,144,500
75,000 Seagram Co. .................... 3,711,922 4,350,000
5,000 Sony Corp., ADR ................ 279,157 471,562
38,000 Time Warner Inc. ............... 702,383 2,888,000
155,000 Viacom Inc., Cl. A+ ............ 2,342,809 10,598,125
------------ ------------
10,779,534 25,620,282
------------ ------------
HOTELS AND GAMING -- 2.5%
10,000 Aztar Corp.+ ................... 51,125 155,000
6,000 Churchill Downs Inc. ........... 125,432 140,250
120,000 Gaylord Entertainment Co. ...... 3,194,412 2,580,000
700,000 Hilton Group plc ............... 2,699,063 2,457,274
5,000 MGM Grand Inc. ................. 97,035 160,625
10,000 Park Place
Entertainment Corp.+ .......... 61,344 121,875
2,500 Quintel Entertainment Inc.+ .... 12,500 7,656
4,000 Starwood Hotels &
Resorts Worldwide Inc. ........ 81,825 130,250
------------ ------------
6,322,736 5,752,930
------------ ------------
INFORMATION PUBLISHING -- 0.1%
15,000 Berlitz International Inc.+ .... 280,750 135,000
8,000 Data Broadcasting Corp.+ ....... 52,250 50,500
MARKET
SHARES COST VALUE
------ ---- ------
1,000 Dun & Bradstreet Corp. ......... $ 26,332 $ 28,625
500 Scholastic Corp.+ .............. 16,500 30,562
------------ ------------
375,832 244,687
------------ ------------
TOTAL COPYRIGHT/
CREATIVITY
COMPANIES ..................... 42,400,846 83,120,323
------------ ------------
DISTRIBUTION COMPANIES -- 56.1%
BROADCASTING -- 12.6%
90,000 Ackerley Group Inc. ............ 690,687 1,057,500
8,550 American Tower Corp., Cl. A+ ... 126,876 356,428
1,000 AMFM Inc.+ ..................... 7,157 69,000
2,500 Audiofina ...................... 118,223 320,796
3,500 BHC Communications Inc.,
Cl. A ......................... 431,750 532,000
12,000 CanWest Global
Communications Corp. .......... 141,007 132,750
18,000 CanWest Global
Communications Corp.,
Sub-Voting .................... 92,012 200,676
2,000 Carlton Communications
plc, ADR ...................... 63,625 130,000
76,150 Chris-Craft Industries Inc.+ ... 3,365,816 5,030,659
500 Clear Channel
Communications Inc.+ .......... 6,012 37,500
8,333 Corus Entertainment Inc.,
Cl. B+ ....................... 33,927 222,401
9,000 Cox Radio Inc., Cl. A+ ......... 55,500 252,000
4,000 Crown Media Holdings
Inc., Cl. A+ .................. 56,250 61,250
1,000 Emmis Communications
Corp., Cl. A+ ................. 10,489 41,375
20,120 Fisher Companies Inc. .......... 1,082,695 1,539,180
3,000 General Electric Co. ........... 29,306 159,000
92,500 Granite Broadcasting Corp.+ .... 912,235 682,187
13,125 Gray Communications
Systems Inc. .................. 172,625 128,789
65,000 Gray Communications
Systems Inc., Cl. B ........... 861,750 633,750
7,000 Groupe AB SA, ADR+ ............. 42,850 85,750
5,000 Grupo Radio Centro,
SA de CV, ADR ................. 42,937 56,875
36,000 Hearst-Argyle Television Inc.+ . 359,949 702,000
1,500 Infinity Broadcasting Corp.+ ... 30,750 54,656
4,550 LaGardere S.C.A. ............... 100,163 347,529
150,000 Liberty Corp. .................. 6,909,056 6,300,000
4,000 Metropole TV M6 SA ............. 35,208 242,888
1,500 Nippon Television Network ...... 253,971 975,541
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
BROADCASTING (CONTINUED)
1,500 Nippon Television Network,
New Shares .................... $ 253,971 $ 978,368
4,650 NRJ Groupe+ .................... 22,694 226,419
5,000 NTN Communications Inc.+ ....... 24,062 12,187
67,000 Paxson Communications
Corp., Cl. A+ ................. 617,351 569,500
500 Radio One Inc.+ ................ 5,510 14,781
1,000 Radio One Inc., Cl. D+ ......... 11,428 22,062
1,525 SAGA Communications
Inc., Cl. A ................... 9,710 33,550
25,000 Salem Communications
Corp., Cl. A+ ................. 484,750 232,031
2,000 SBS Broadcasting SA+ ........... 42,022 109,000
5,000 Sinclair Broadcast Group Inc.+ . 42,687 55,000
43,000 Sistem Televisyen
Malaysia Berhad ............... 41,566 28,063
1,000 Spanish Broadcasting
System Inc., Cl. A+ ........... 20,000 20,562
50,000 Television Broadcasting
Ltd. .......................... 187,673 333,526
25,000 Television Francaise 1 ......... 249,649 1,742,418
55,000 Tokyo Broadcasting
System Inc. ................... 812,002 2,374,287
3,000 TV Azteca, SA de C.V.+ ......... 36,350 39,562
12,600 United Television Inc. ......... 1,066,682 1,622,250
500 Wink Communications Inc.+ ...... 8,000 15,250
20,000 Young Broadcasting Inc.,
Cl. A+ ........................ 563,894 513,750
------------ ------------
20,532,827 29,295,046
------------ ------------
BUSINESS SERVICES -- 1.2%
15,000 Carlisle Holdings Ltd.+ ........ 78,754 110,156
4,000 Cendant Corp.+ ................. 79,700 56,000
500 CheckFree Holdings Corp.+ ...... 5,520 25,781
1,000 Convergys Corp.+ ............... 17,737 51,875
9,400 Donnelley (R.H.) Corp. ......... 119,636 182,125
2,000 IMS Health Inc. ................ 1,899 36,000
26,100 Vivendi ........................ 1,112,375 2,303,758
------------ ------------
1,415,621 2,765,695
------------ ------------
CABLE -- 4.3%
6,000 Austar United
Communications Ltd.+ .......... 21,083 20,252
65,000 Cablevision Systems
Corp., Cl. A+ ................. 958,333 4,411,875
20,000 Charter Communications
Inc., Cl. A+ .................. 308,750 328,750
MARKET
SHARES COST VALUE
------ ---- ------
5,000 Comcast Corp., Cl. A ........... $ 35,039 $ 194,375
7,000 Comcast Corp., Cl. A,
Special ....................... 53,073 283,500
30,000 Mediacom Communications
Corp.+ ........................ 302,500 461,250
10,000 Mercom Inc.+ (b) ............... 101,075 120,000
10,517 NTL Inc.+ ...................... 315,049 629,705
22,680 Telewest Communications
plc+ .......................... 37,551 78,243
13,090 Telewest Communications
plc, ADR+ ..................... 201,579 484,330
58,000 UnitedGlobalCom Inc.,
Cl. A+ ........................ 493,368 2,711,500
10,000 Videotron Groupe ............... 94,010 232,432
------------ ------------
2,921,410 9,956,212
------------ ------------
CONSUMER SERVICES -- 0.2%
10,000 Allied Domecq plc .............. 57,688 52,958
5,000 Department 56 Inc.+ ............ 55,230 55,000
3,000 Hotel Reservations Inc.,
Cl. A+ ........................ 48,000 89,250
15,000 Lillian Vernon Corp. ........... 223,875 157,500
------------ ------------
384,793 354,708
------------ ------------
ENERGY AND UTILITIES -- 0.2%
50,000 El Paso Electric Co.+ .......... 396,002 559,375
------------ ------------
ENTERTAINMENT DISTRIBUTION -- 1.9%
6,000 AMC Entertainment Inc.+ ........ 91,999 29,250
225,000 Blockbuster Inc., Cl. A ........ 3,155,237 2,179,687
39,500 GC Companies Inc.+ ............. 1,126,545 883,813
4,000 Liberty Digital Inc.+ .......... 61,966 120,000
5,000 Loews Cineplex
Entertainment Corp.+ .......... 68,750 15,938
39,000 Shaw Communications
Inc., Cl. B ................... 105,571 961,824
11,000 Shaw Communications
Inc., Cl. B, Non-Voting+ ...... 103,451 271,563
------------ ------------
4,713,519 4,462,075
------------ ------------
EQUIPMENT -- 3.8%
35,000 Allen Telecom Inc.+ ............ 247,869 619,063
2,000 Amphenol Corp., Cl. A+ ......... 31,075 132,375
2,000 CommScope Inc.+ ................ 29,407 82,000
1,000 Furukawa Electric Co. Ltd. ..... 15,169 20,878
4,000 Gemstar International
Group Ltd.+ ................... 39,407 245,813
7,700 Hutchison Whampoa Ltd. ......... 71,267 96,799
3,680 Philips Electronics NV, ADR .... 33,672 174,800
See accompanying notes to financial statements.
12
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
EQUIPMENT (CONTINUED)
2,500 L-3 Communications
Holdings Inc.+ ................ $ 55,000 $ 142,656
3,000 Lucent Technologies Inc. ....... 90,075 177,750
50,000 Nortel Networks Corp. .......... 2,803,131 3,412,500
150,000 Oak Technology Inc.+ ........... 670,763 3,234,375
6,000 Scientific-Atlanta Inc. ........ 50,804 447,000
2,000 TiVo Inc.+ ..................... 32,000 70,000
------------ ------------
4,169,639 8,856,009
------------ ------------
INTERNATIONAL TELEPHONE -- 8.1%
40,000 BCE Inc. ....................... 864,662 952,500
500 British Telecommunications
plc, ADR ...................... 85,775 66,125
78,312 Cable & Wireless plc, ADR ...... 2,203,290 3,920,495
27,000 Compania de
Telecomunicaciones
de Chile SA, ADR .............. 490,841 489,375
2,000 Deutsche Telekom
AG, ADR+ ...................... 37,780 113,500
10,000 Embratel Participacoes
SA, ADR+ ...................... 210,605 236,250
1,000 France Telecom SA, ADR ......... 34,488 142,500
18,000 GST Telecommunications
Inc.+ ......................... 178,169 17,156
90 Japan Telecom Co. Ltd. ......... 992,218 3,902,163
500 Magyar Tavkozlesi Rt, ADR ...... 9,650 17,219
10 Nippon Telegraph &
Telephone Corp. ............... 81,575 132,900
20,000 Philippine Long Distance
Telephone Co., ADR ............ 494,291 355,000
7,000 PT Indonesia Satellite, ADR .... 84,423 79,625
4,320 PT Telekomunikasi
Indonesia, ADR ................ 18,513 29,970
4,000 Rostelecom, ADR ................ 29,778 54,500
1,000 Sonera Group Oyj ............... 23,506 45,589
20,000 Swisscom AG, ADR ............... 679,969 705,000
3,300 Tele Centro Sul
Participacoes SA, ADR ......... 191,758 241,106
18,432 Tele Norte Leste
Participacoes SA, ADR ......... 252,380 435,456
3,000 Telecom Argentina Stet
France Telecom SA, ADR ........ 54,442 82,500
1,000 Telecom Corp. of
New Zealand Ltd., ADR ......... 29,688 28,125
16,500 Telecomunicacoes de Sao
Paulo SA (Telesp), ADR ........ 618,902 305,250
MARKET
SHARES COST VALUE
------ ---- ------
3,000 Telefonica de Argentina SA,
Cl. B, ADR .................... $ 64,387 $ 95,250
500 Telefonica del Peru, ADR ....... 6,494 5,688
250,000 Telefonica del Peru, Cl. B ..... 483,171 359,857
41,000 Telefonica SA, ADR ............. 639,579 2,626,563
24,000 Telefonos de Mexico SA,
Cl. L, ADR .................... 378,945 1,371,000
2,400 Telstra Corp. Ltd., ADR ........ 30,324 49,650
45,000 TELUS Corp. .................... 810,821 1,201,014
20,000 TELUS Corp., Non-Voting ........ 408,424 533,108
10,000 TELUS Corp., Non-Voting,
ADR ........................... 238,538 266,554
------------ ------------
10,727,386 18,860,988
------------ ------------
SATELLITE -- 1.8%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR ............ 5,693 10,275
2,000 British Sky Broadcasting
Group, ADR .................... 47,975 232,250
10,000 COMSAT Corp. ................... 259,826 246,875
28,000 EchoStar Communications
Corp., Cl. A+ ................. 91,970 927,063
10,000 General Motors Corp., Cl. H+ ... 497,526 877,500
4,000 Globalstar
Telecommunications Ltd.+ ...... 13,663 36,000
15,008 Loral Space &
Communications Ltd.+ .......... 217,918 104,118
26,000 Pegasus Communications
Corp.+ ........................ 432,199 1,275,625
45,000 TCI Satellite Entertainment
Inc., Cl. A+ .................. 382,696 390,938
------------ ------------
1,949,466 4,100,644
------------ ------------
TELECOMMUNICATIONS -- 4.2%
4,266 Aliant Inc.+ ................... 39,187 104,200
3,000 Allegiance Telecom Inc.+ ....... 28,500 192,000
3,000 ALLTEL Corp. ................... 126,385 185,813
10,000 BroadWing Inc.+ ................ 191,493 259,375
2,000 Choice One
Communications Inc.+ .......... 40,000 81,625
130,000 Citizens Communications Co. .... 1,484,271 2,242,500
36,750 CoreComm Ltd.+ ................. 242,006 716,625
5,000 Eircom plc ..................... 21,813 12,829
9,000 Electric Lightwave Inc.,
Cl. A+ ........................ 77,728 168,188
10,000 Global Crossing Ltd.+ .......... 173,070 263,125
3,000 Global Telesystems
Group Inc.+ ................... 8,705 36,188
See accompanying notes to financial statements.
13
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
1,305 Hellenic Telecommunications
Organization SA ............... $ 18,163 $ 31,973
1,000 Jazztel plc, ADR+ .............. 17,447 26,250
10,000 Metromedia International
Group Inc.+ ................... 83,550 47,500
35,000 RCN Corp.+ ..................... 307,406 888,125
9,655 Rogers Communications
Inc., Cl. B+ .................. 148,207 273,667
125,345 Rogers Communications
Inc., Cl. B, ADR+ ............. 1,143,419 3,572,333
5,500 Time Warner Telecom
Inc., Cl. A+ .................. 77,000 354,063
3,000 USN Communications Inc.+ ....... 12,165 90
6,000 WorldCom Inc.+ ................. 115,693 275,250
------------ ------------
4,356,208 9,731,719
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.3%
55,850 AT&T Corp. ..................... 1,901,325 1,766,256
12,000 Sprint Corp.+ .................. 129,824 612,000
3,000 Startec Global
Communications Corp.+ ......... 28,646 32,063
22,000 Viatel Inc.+ ................... 228,733 628,375
------------ ------------
2,288,528 3,038,694
------------ ------------
U.S. REGIONAL OPERATORS -- 2.0%
24,434 Commonwealth Telephone
Enterprises Inc.+ ............. 528,513 1,149,925
24,400 Commonwealth Telephone
Enterprises Inc., Cl. B+ ...... 318,107 1,159,000
25,000 GTE Corp. ...................... 1,280,188 1,556,250
5,000 SBC Communications Inc. ........ 112,521 216,250
5,000 US West Inc. ................... 296,344 428,750
------------ ------------
2,535,673 4,510,175
------------ ------------
WIRELESS COMMUNICATIONS-- 14.5%
50,000 AT&T Wireless Group+ ........... 1,475,000 1,393,750
40,000 CenturyTel Inc. ................ 584,902 1,150,000
22,000 Iridium World
Communications
Ltd., Cl. A+ .................. 48,814 14,266
13,000 Leap Wireless
International Inc.+ ........... 114,811 611,000
5,000 Libertel NV+ ................... 94,590 76,141
16,894 Nextel Communications
Inc., Cl. A+ ................. 94,069 1,033,702
MARKET
SHARES COST VALUE
------ ---- ------
100 NTT Mobile
Communications
Network Inc. .................. $ 762,806 $ 2,705,123
18,000 Price Communications Corp.+ .... 79,176 424,125
6,000 Qualcomm Inc.+ ................. 31,219 360,000
77,000 Rogers Cantel Mobile
Communications Inc.,
Cl. B+ ........................ 928,173 2,589,125
12,200 Rural Cellular Corp., Cl. A+ ... 134,888 934,063
38,680 SK Telecom Co. Ltd., ADR ....... 380,367 1,404,568
7,000 Sprint Corp. (PCS Group)+ ...... 19,162 416,500
1,650 Tele Celular Sul
Participacoes SA, ADR ......... 26,379 74,663
5,500 Tele Centro Oeste Celular
Participacoes SA, ADR ......... 16,487 66,000
330 Tele Leste Celular
Participacoes SA, ADR ......... 8,827 14,603
825 Tele Nordeste Celular
Participacoes SA, ADR ......... 12,175 57,131
330 Tele Norte Celular
Participacoes SA, ADR ......... 5,098 16,748
3,300 Tele Sudeste Celular
Participacoes SA, ADR ......... 104,503 100,650
380,000 Telecom Italia Mobile SpA ...... 861,292 3,892,896
825 Telemig Celular
Participacoes SA, ADR ......... 23,843 58,988
85,000 Telephone & Data
Systems Inc. .................. 3,653,968 8,521,250
6,600 Telesp Celular
Participacoes SA, ADR ......... 211,036 296,175
6,000 Teligent Inc., Cl. A ........... 136,200 141,750
18,000 Total Access
Communications plc+ ........... 113,625 72,360
20,000 U.S. Cellular Corp.+ ........... 1,152,336 1,260,000
3,500 Vimpel-Communications,
ADR+ .......................... 66,238 77,438
18,000 Vodafone AirTouch plc,
ADR ........................... 446,795 745,875
38,025 VoiceStream Wireless Corp.+ .... 673,885 4,422,189
2,000 Western Wireless Corp.,
Cl. A+ ........................ 19,810 109,000
15,000 WinStar
Communications Inc.+ .......... 216,768 508,125
------------ ------------
12,497,242 33,548,204
------------ ------------
TOTAL DISTRIBUTION
COMPANIES .................... 68,888,314 130,039,544
------------ ------------
TOTAL COMMON
STOCKS ........................ 111,289,160 213,159,867
------------ ------------
See accompanying notes to financial statements.
14
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
PREFERRED STOCKS -- 2.5%
BUSINESS SERVICES -- 0.0%
6,000 Cendant Corp.,
1.30% Cv. Pfd. ................ $ 152,738 $ 117,750
------------ ------------
GLOBAL MEDIA AND ENTERTAINMENT -- 1.3%
62,765 News Corp. Ltd.,
Pfd., ADR ..................... 986,187 2,981,338
------------ ------------
U.S. REGIONAL OPERATORS -- 1.2%
40,000 Citizens Communications Co.,
5.00% Cv. Pfd. ................ 1,914,413 2,695,000
------------ ------------
TOTAL PREFERRED
STOCKS ........................ 3,053,338 5,794,088
------------ ------------
PRINCIPAL
AMOUNT
---------
CORPORATE BONDS -- 0.2%
BUSINESS SERVICES -- 0.1%
$295,000 Trans-Lux Corp., Sub. Deb. Cv.
7.50%, 12/01/06 ............... 278,401 237,844
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
50,000 BBN Corp., Sub. Deb. Cv.
6.00%, 04/01/12 (b) ........... 49,391 48,375
------------ ------------
DIVERSIFIED PUBLISHERS -- 0.0%
58,000 Golden Books Family
Entertainment Inc., PIK
10.75%, 12/31/04 .............. 54,528 24,360
------------ ------------
GLOBAL MEDIA AND ENTERTAINMENT -- 0.0%
20,000 Boston Celtics L.P., Sub. Deb. Cv.
6.00%, 06/30/38 ............... 12,183 10,550
------------ ------------
HOTELS AND GAMING -- 0.1%
200,000 Hilton Hotels Corp., Sub. Deb. Cv.
5.00%, 05/15/06 ............... 154,907 159,000
------------ ------------
TOTAL CORPORATE
BONDS ......................... 549,410 480,129
------------ ------------
SHARES
------
WARRANTS -- 0.0%
ADVERTISING -- 0.0%
200 Havas Advertising SA, Warrants,
expire 05/13/01 ............... 0 2,673
------------ ------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 5.1%
$11,857,000 U.S. Treasury Bills,
5.71% to 5.99%++,
due 07/06/00 to 09/28/00 ...... 11,777,369 11,778,090
------------ ------------
MARKET
COST VALUE
---- ------
TOTAL INVESTMENTS -- 99.8% ............... $126,669,277 $231,214,847
============
OTHER ASSETS, LIABILITIES,
AND LIQUIDATION VALUE OF
CUMULATIVE PREFERRED STOCK -- (13.1)% ................. (30,390,850)
------------
NET ASSETS -- COMMON STOCK -- 86.7%
(10,796,815 common shares outstanding) ................ 200,823,997
------------
NET ASSETS -- PREFERRED STOCK -- 13.3%
(1,235,700 preferred shares outstanding) .............. 30,892,500
------------
TOTAL NET ASSETS-- 100.0% ............................... $231,716,497
============
NET ASSET VALUE PER COMMON SHARE
($200,823,997 / 10,796,815 shares outstanding) ........ $18.60
======
FORWARD FOREIGN EXCHANGE CONTRACTS
PRINCIPAL SETTLEMENT NET UNREALIZED
AMOUNT DATE DEPRECIATION
--------- ---------- --------------
19,646,294 (c) Deliver Hong Kong Dollars
in exchange for
USD 3,592,510 ................. 08/24/00 $(5,050)
=======
--------------------
(a) For Federal tax purposes:
Aggregate cost .................................. $126,669,277
============
Gross unrealized appreciation ................... $111,047,233
Gross unrealized depreciation ................... (6,501,663)
------------
Net unrealized appreciation ..................... $104,545,570
============
(b) Security fair valued under procedures established 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
USD - United States Dollars
GDR - Global Depositary Receipt
% of
Market Market
Value Value
------ ------
GEOGRAPHIC DIVERSIFICATION
United States .............................. 68.5% $158,310,191
Asia/Pacific Rim ........................... 10.2 23,519,210
Europe ..................................... 9.8 22,698,503
Canada ..................................... 8.3 19,276,646
Latin America .............................. 3.2 7,410,297
----- ------------
Total Investments .......................... 100.0% $231,214,847
===== ============
See accompanying notes to financial statements.
15
<PAGE>
THE GABELLI GLOBALMULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
ASSETS:
Investments, at value (Cost $126,669,277) $231,214,847
Cash and foreign currency, at value
(Cost $752,577) ...................... 745,924
Dividends and interest receivable ....... 203,455
Receivable for investments sold ......... 3,097,005
------------
TOTAL ASSETS ............................ 235,261,231
------------
LIABILITIES:
Payable for investments purchased ....... 3,008,885
Dividends payable ....................... 33,982
Payable for investment advisory fees .... 158,772
Payable for custodian fees .............. 6,200
Unrealized depreciation on forward foreign
exchange contracts ................... 5,050
Other accrued expenses .................. 331,845
------------
TOTAL LIABILITIES ....................... 3,544,734
------------
NET ASSETS .............................. $231,716,497
============
NET ASSETS CONSIST OF:
Cumulative Preferred Stock (7.92%, $25.00
liquidation value, $0.001 par value, 2,000,000
shares authorized, 1,235,700 shares issued
and outstanding) ..................... $ 30,892,500
Trust shares, at par value .............. 10,797
Additional paid-in capital .............. 75,542,967
Accumulated net investment income ....... 1,282,971
Accumulated net realized gain on investments and
foreign currency transactions ........ 19,455,486
Net unrealized appreciation on investments
and foreign currency transactions .... 104,531,776
------------
TOTAL NET ASSETS ........................ $231,716,497
============
NET ASSET VALUE
($200,823,997 / 10,796,815 shares
outstanding; 200,000,000 shares
authorized of $0.001 par value) ....... $18.60
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes
of $28,831) ......................... $ 3,525,113
Interest ............................... 575,330
------------
TOTAL INVESTMENT INCOME ................ 4,100,443
------------
EXPENSES:
Investment advisory fees ............... 1,013,387
Shareholder services fees .............. 226,265
Shareholder communications expenses .... 95,134
Payroll expenses ....................... 78,130
Legal and audit fees ................... 67,360
Custodian fees ......................... 40,207
Directors' fees ........................ 35,981
Miscellaneous expenses ................. 37,665
------------
TOTAL EXPENSES ......................... 1,594,129
------------
NET INVESTMENT INCOME .................. 2,506,314
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments ....... 19,874,654
Net realized loss on foreign
currency transactions ............... (9,846)
------------
Net realized gain on investments and
foreign currency transactions ....... 19,864,808
------------
Net change in unrealized appreciation
on investments and foreign currency
transactions ........................ (34,501,770)
------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS ............... (14,636,962)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $(12,130,648)
============
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 (UNAUDITED) DECEMBER 31, 1999
------------------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ....................................... $ 2,506,314 $ (530,929)
Net realized gain on investments, futures contracts
and foreign currency transactions ............................... 19,864,808 42,777,957
Net change in unrealized appreciation on investments
and foreign currency transactions ............................... (34,501,770) 82,599,526
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .... (12,130,648) 124,846,554
------------ ------------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net realized gain on investments, futures contracts
and foreign currency transactions ............................... (809,856) (39,124,967)
------------ ------------
TOTAL DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS ................... (809,856) (39,124,967)
------------ ------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income .............................................. (1,223,343) --
Net realized gain on investments, futures contracts
and foreign currency transactions ............................... -- (2,475,000)
------------ ------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS ................ (1,223,343) (2,475,000)
------------ ------------
TRUST SHARE TRANSACTIONS:
Net decrease in net assets from Multimedia Trust share transactions (276,212) (501,046)
Net decrease from repurchase of preferred stock .................... (331,411) --
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS .............................. (14,771,470) 82,745,541
NET ASSETS:
Beginning of period ................................................ 246,487,967 163,742,426
------------ ------------
End of period ...................................................... $231,716,497 $246,487,967
============ ============
</TABLE>
See accompanying notes to financial statements.
16
<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 Automated Quotations, Inc. ("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 the 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, except for open short positions, which are
valued at the last asked price). 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
(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. Debt instruments
having a maturity greater than 60 days 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
Bank of New York, with member banks of the Federal Reserve System or with other
brokers or dealers that meet credit guidelines established by the Adviser and
reviewed by the Board of 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.
17
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
SECURITIES SOLD SHORT. A short sale involves selling a security which the
Multimedia Trust does not own. The proceeds received for short sales are
recorded as liabilities and the Multimedia Trust records an unrealized gain or
loss to the extent of the difference between the proceeds received and the value
of the open short position on the day of determination. The Multimedia Trust
records a realized gain or loss when the short position is closed out. By
entering into a short sale, the Multimedia Trust bears the market risk of an
unfavorable change in the price of the security sold short. Dividends on short
sales are recorded as an expense by the Multimedia Trust on the ex-dividend date
and interest expense is recorded on the accrual basis.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Multimedia Trust may engage in
forward foreign exchange contracts for hedging a specific transaction with
respect to either the currency in which the transaction is denominated or
another currency as deemed appropriate by the Adviser. Forward foreign exchange
contracts are valued at the forward 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 portfolio
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/(loss) 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 TRANSLATION. 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 at the exchange
rate prevailing on the respective dates of such transactions. Unrealized gains
and losses, which result from changes in foreign exchange rates and/or changes
in market prices of securities, have been included in unrealized
appreciation/depreciation on investments and foreign currency transactions. 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) on investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified 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.
18
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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 the Multimedia Trust's 7.92% Cumulative Preferred Stock
("Cumulative Preferred Stock") are accrued on a daily basis and are determined
as described in Note 5.
PROVISION FOR INCOME TAXES. The Multimedia Trust 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.
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 equal on an annual
basis to 1.00% of the value of the Multimedia Trust's average weekly net assets.
In accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Multimedia Trust's portfolio 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 Cumulative 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 Cumulative Preferred Stock. For the six months ended June
30, 2000, the Multimedia Trust's total return on the net asset value of the
common shares did not exceed the stated dividend rate of the Cumulative
Preferred Stock. Thus, such management fees were not earned.
During the six months ended June 30, 2000, Gabelli & Company, Inc. and its
affiliates received $29,348 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, for the six months ended June 30,
2000 aggregated $30,212,512 and $41,218,106, respectively.
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. During the six months ended June 30, 2000, the Multimedia Trust
repurchased 16,500 shares of its common stock in the open market at a cost of
$276,212 and an average discount of approximately 18.63% from its net asset
value. During the fiscal year ended December 31, 1999, the Fund repurchased
42,400 shares of its common stock in the open market at a cost of $501,046 and
an average discount of approximately 15.84% from its net asset value. All shares
repurchased have been retired.
19
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 (UNAUDITED) DECEMBER 31, 1999
------------------------- ---------------------
Shares Amount Shares Amount
------- --------- ------- ---------
<S> <C> <C> <C> <C>
Shares repurchased by the Multimedia Trust ................ (16,500) $(276,212) (42,400) $(501,046)
------- --------- ------- ---------
Net decrease .............................................. (16,500) $(276,212) (42,400) $(501,046)
======= ========= ======= =========
</TABLE>
The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to 2,000,000 shares of $0.001 par value 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. During the six months ended June 30, 2000, the Multimedia Trust
repurchased 14,300 shares of Cumulative Preferred Stock at a cost of $331,411
and at an average price of $23.176 per share. At June 30, 2000, 1,235,700 shares
of the Preferred Stock were outstanding at the fixed dividend rate of 7.92
percent per share and accrued dividends amounted to $33,982. 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 Cumulative 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 a majority of the holders of common
stock, approval of a majority of the holders of any outstanding shares of
Cumulative Preferred Stock, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the Cumulative
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.
20
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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.
7. SUBSEQUENT EVENT. On June 19, 2000, the Multimedia Trust distributed one
transferable right for each of the 10,796,814 common shares outstanding to
shareholders of record on that date. Three rights were required to purchase one
additional common share at the subscription price of $13.00 per share. The
subscription period expired on July 26, 2000. The rights offering was fully
subscribed resulting in the issuance of 3,598,938 common shares and proceeds of
$46,786,194 to the Multimedia Trust, prior to the deduction of estimated
expenses of $445,000.
21
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR AN MULTIMEDIA TRUST COMMON SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
SHARE OUTSTANDING THROUGHOUT EACH PERIOD: JUNE 30, 2000 -------------------------------------------------------
OPERATING PERFORMANCE: (UNAUDITED) 1999 1998 1997 1996 1995
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 19.90 $ 12.20 $ 9.91 $ 8.10 $ 7.81 $ 7.51
-------- -------- -------- -------- -------- --------
Net investment income (loss) ................ 0.23 (0.05) (0.03) 0.01 0.01 0.08
Net realized and unrealized gain (loss)
on investments ............................ (1.34) 11.54 3.33 2.85 0.63 0.98
-------- -------- -------- -------- -------- --------
Total from investment operations ............ (1.11) 11.49 3.30 2.86 0.64 1.06
-------- -------- -------- -------- -------- --------
Increase (decrease) in net asset value from
Multimedia Trust share transactions ....... -- 0.06 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)
Net realized gain on investments ............ (0.08) (3.62) (0.80) (0.84) (0.36) (0.17)
In excess of net investment income and/or net
realized gain on investments .............. -- -- -- (0.00)(a) (0.00)(a) (0.00)
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ....................... (0.11) -- -- (0.00)(a) -- --
Net realized gain on investments ............ -- (0.23) (0.23) (0.13) -- --
-------- -------- -------- -------- -------- --------
Total distributions ......................... (0.19) (3.85) (1.03) (0.98) (0.37) (0.25)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD .............. $ 18.60 $ 19.90 $ 12.20 $ 9.91 $ 8.10 $ 7.81
======== ======== ======== ======== ======== ========
Market value, end of period ................. $ 13.75 $ 18.75 $ 10.94 $ 8.75 $ 6.88 $ 6.76
======== ======== ======== ======== ======== ========
Net asset value total return+ ............... (6.1)% 96.6% 33.0% 34.4% 9.4% 14.1%
======== ======== ======== ======== ======== ========
Total investment return+ .................... (26.3)% 106.6% 35.1% 39.6% 7.4% 0.4%
======== ======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON
STOCK SHAREHOLDERS AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........ $231,716 $246,488 $163,742 $140,416 $91,462 $89,580
Net assets attributable to common shares,
end of period (in 000's) .................. $200,824 $215,238 $132,492 $109,166 $91,462 $89,580
Ratio of net investment income (loss) to
average net assets attributable
to common stock ........................... 2.41% (0.30)% (0.32)% 0.07% 0.13% 1.24%++
Ratio of operating expenses to average net assets
attributable to common stock .............. 1.53% 1.56% 2.53% 2.09% 1.87% 2.04%++
Ratio of operating expenses to average
total net assets (c) ...................... 1.33% 1.32% 2.01% 1.77% 1.87% --
Portfolio turnover rate ..................... 13.3% 43.1% 44.6% 96.1% 32.1% 86.0%
PREFERRED STOCK:
Liquidation value, end of period (in 000's) . $ 30,893 $ 31,250 $ 31,250 $ 31,250 -- --
Total shares outstanding (in 000's) ......... 1,236 1,250 1,250 1,250 -- --
Asset coverage .............................. 750% 789% 524% 443% -- --
Liquidation preference per share ............ $ 25.00 $ 25.00 $ 25.00 $ 25.00 -- --
Average market value (b) .................... $ 22.94 $ 25.13 $ 25.96 $ 25.59 -- --
</TABLE>
--------------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
++ Annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.
(c) Amounts are attributable to both common and preferred stock assets. Prior to
1997, there was no preferred stock outstanding.
See accompanying notes to financial statements.
22
<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
23
<PAGE>
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 investment date. Funds not received at least
five days before the investment date shall be held for investment until the next
purchase date. 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.
24
<PAGE>
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1434
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN AND CHIEF INVESTMENT OFFICER,
GABELLI ASSET MANAGEMENT INC.
Dr. Thomas E. Bratter
PRESIDENT, JOHN DEWEY ACADEMY
Felix J. Christiana
FORMER SENIOR VICE PRESIDENT,
DOLLAR DRY DOCK SAVINGS BANK
James P. Conn
FORMER MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR, LAWRENCE HOSPITAL
Salvatore J. Zizza
CHAIRMAN, THE BETHLEHEM CORP.
OFFICERS
Mario J. Gabelli, CFA
PRESIDENT & CHIEF INVESTMENT OFFICER
Bruce N. Alpert
VICE PRESIDENT & TREASURER
Brandon J. McCue
VICE PRESIDENT
James E. McKee
SECRETARY
INVESTMENT ADVISOR
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1434
CUSTODIAN, TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
COUNSEL
Willkie Farr & Gallagher
STOCK EXCHANGE LISTING
Common 7.92% Preferred
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NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 10,796,815 1,235,700
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 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.
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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]
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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 common 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. The Multimedia Trust may also, from time to time, purchase shares of its
Cumulative Preferred Stock in the open market when the shares are trading at a
discount to the Liquidation Value of $25.00.
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<PAGE>
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, 2000
GBFMT 06/00
