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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
FIRST QUARTER REPORT
MARCH 31, 2000
<PAGE>
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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.
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MORNINGSTAR RATED(TM) GABELLI GLOBAL
MULTIMEDIA TRUST INC. 5 STARS OVERALL
AND FOR THE THREE- AND FIVE-YEAR PERIOD
ENDED 03/31/00 AMONG 56
DOMESTIC EQUITY FUNDS.
---------------------------------------
---------------------------------------
#1 SECTOR FUND!
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LIPPER INC. RANKED GABELLI GLOBAL
MULTIMEDIA TRUST INC. #1 FOR THE THREE-
AND FIVE-YEAR PERIOD ENDED 03/31/00
AMONG 15 AND 14 CLOSED-END SECTOR
EQUITY FUNDS, RESPECTIVELY.
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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.
<PAGE>
TO OUR SHAREHOLDERS,
In general, multimedia stocks performed quite well in the volatile stock
markets of the first quarter of 2000. We continue to see strong merger and
acquisition and restructuring activity surfacing value in all media industries.
The media landscape continues to change as new technologies create new products
and services and as companies seek to improve their competitive positions by
marrying content and creativity with more effective distribution.
Last year, virtually every sector of the global multimedia industry
excelled. In the first quarter of 2000, performance was not as uniformly
stellar. In general, telecommunications, publishing and entertainment software
stocks excelled. International cable television operators and broadcasters also
performed well, but domestic companies in these sectors faltered. Although our
stock picking batting average was lower this quarter--a reflection of disparate
performance geographically and in the different sectors of the industry--the
Trust still posted solid gains.
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THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2000, The Gabelli Global Multimedia
Trust Inc.'s ("Multimedia Trust") net asset value (NAV) per share increased
5.08% to $20.82. This compares to the average 3.63% increase of the 265 Global
Funds tracked by Lipper Inc. over this period. The Lipper average is an
unmanaged indicator of investment performance. For the twelve months ended March
31, 2000, the Multimedia Trust appreciated 78.23% after adjusting for the $3.695
per share in distributions paid during this period. This compares to the average
37.71% increase of the Lipper Inc. Global Fund Average over the same period.
The three- and five-year average annual returns of the Multimedia Trust
were 53.69% and 35.13%, respectively. Since inception on November 15, 1994
through March 31, 2000, the Multimedia Trust achieved a 363.95% total return
which represents an average annual return of 33.00%.
The Multimedia Trust's common shares ended the first quarter at $17.625
per share on the New York Stock Exchange, down 5.59% for the quarter and an
increase of 80.60% for the twelve-month period ending March 31, 2000. The common
shares have increased 268.43% since inception after adjusting for all
distributions and the rights offering.
RIGHTS OFFERING 2000
Your Board of Directors has announced a transferable rights offering for
2000. The offering is being made to shareholders by means of a prospectus. The
Multimedia Trust is offering shareholders one transferable right for each share
of common stock held as of the record date. Three rights will be required to
purchase one additional share at a discounted price to net asset value and free
of commission. Shareholders who fully exercise their primary subscription rights
may oversubscribe for any additional amount of shares they wish. These
oversubscription shares will be distributed based on a pro-rata allocation
formula.
<PAGE>
WHAT'S RIGHT ABOUT RIGHTS
To raise additional capital, rights offerings have historically been a
fair and efficient method. 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. We thought we would discuss some of the basic issues
of rights offerings and how they relate to the Trust in a question and answer
format.
RIGHTS OFFERING -- Q&A
Q: WHAT ARE RIGHTS?
Rights are privileges granted to existing shareholders of a corporation
(in our case the Multimedia Trust) to subscribe to shares of a new issue of
common stock. These rights represent short-term options granted by the
corporation which the shareholder has the option of exercising.
Q: WHAT IS THE HISTORY OF RIGHTS OFFERINGS?
Rights offerings have been used in Europe since the late 17th century
after the commencement of the London Stock Exchange. In England, rights
offerings are commonplace and represent an integral part of its capital markets
and are well-regarded by shareholders. While underwritten public offerings have
been the preferred method of raising capital in the U.S., rights offerings have
become more understood and more widely used. Today, rights offerings are even
more common in the U.S. and we expect that their frequency and effectiveness
will increase.
Q: WHAT IS A RIGHTS OFFERING AS IT RELATES TO CLOSED-END FUNDS?
A rights offering is an opportunity for shareholders to purchase
additional shares of a publicly traded company or mutual fund at a specified
price--the "subscription price"--with a nominal commission. To attract
shareholder interest, the subscription price is set at a discount to the current
market price. Although shareholders are not required to purchase additional
shares, they are given the opportunity, or "right", to purchase shares based on
the number of underlying shares they own on the record date. Rights may either
be transferable or non-transferable and the offering may or may not be
underwritten with a commitment by the underwriter to buy what is not subscribed
for.
Q: WHAT ARE TRANSFERABLE RIGHTS VERSUS NON-TRANSFERABLE RIGHTS?
Non-transferable rights have no value other than that they may be
exercised and are not tradable on any exchange.
Transferable rights may trade on an exchange and afford the
non-subscribing shareholder the option of selling their rights on the exchange
or through the transfer agent. Selling the rights allows a non-subscribing
shareholder to recoup much of the dilution which would otherwise occur. A
non-transferable rights offering does not permit such an offset so that
non-subscribing shareholders would experience full dilution.
Q: HOW IS A RIGHTS OFFERING BENEFICIAL TO SHAREHOLDERS?
The Multimedia Trust shareholder benefits from the opportunity to purchase
additional shares with no commission if shares are held directly or, in some
instances, with a nominal charge from their broker. Thus, an
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investor is able to put more financial assets to work in an investment
discipline in which she or he believes and which has performed well over an
extended period of time. The additional capital that is raised by the Trust is
used to position the portfolio to more fully take advantage of new investment
opportunities. Increasing the size of the Trust may also result in lowering the
Trust's expenses as a percentage of average net assets.
Q: HOW IS THE MULTIMEDIA TRUST'S RIGHTS OFFERING BETTER THAN OTHER RIGHTS
OFFERINGS BY CLOSED-END FUNDS?
There are two types of rights offerings a closed-end fund can use to raise
additional capital: the direct offering method and the firm-underwritten method.
The Multimedia Trust is utilizing a direct offering method to realize the
relative cost advantages associated with this method as compared to a
firm-underwritten method. A direct offering avoids costly underwriting and
distribution services which lessen shareholder value.
Q: WHAT IF MY TOTAL NUMBER OF RIGHTS IS NOT EVENLY DIVISIBLE BY THREE?
The Trust will automatically round up shareholders' rights so that the
total number of rights a shareholder is granted is evenly divisible by three.
Q: ARE THE SHAREHOLDERS IN FAVOR OF RIGHTS OFFERINGS?
We have received numerous requests from the shareholders of the Trust to
offer rights offerings. Our shareholders have been overwhelmingly in favor of
rights offerings and look forward to future ones. This interest was evidenced by
the oversubscribed rights offering that the Multimedia Trust had in 1995. This
interest was further confirmed with the response to the Gabelli Equity Trust
(from which the Multimedia Trust spun-off from in 1994) shareholder vote in 1993
in which shareholders voted 90% in favor to provide rights offerings.
Q: WHY DO MEMBERS OF THE NEWS MEDIA SAY THAT A RIGHTS OFFERING IS DILUTIVE?
Dilution is experienced by shareholders who do not fully exercise their
rights. The dilution is the result of issuing new shares below the then current
net asset value. This causes the number of shares outstanding to increase at a
percentage rate greater than the increase in the Fund's assets. To avoid
dilution, a shareholder should fully subscribe to all shares made available
based on the subscription ratio. If a shareholder does not exercise his or her
rights, and sells the rights at their intrinsic value, the shareholder will not
experience dilution. However, a failure to sell rights or a sale below intrinsic
value will result in dilution.
Q. HOW DID THE TRUST FARE IN ITS PREVIOUS RIGHTS OFFERING?
This is the second rights offering for our Fund. The following compares
the total subscriptions received with the amount sought for the previous rights
offering:
Amount Subscriptions
Sought Received
Year (millions) (millions)
---- ------------- ---------------
1995 $18.6 $44.0
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<PAGE>
Q. WERE SHAREHOLDERS ABLE TO SELL THEIR RIGHTS IN THE PAST RIGHTS OFFERING?
Registered shareholders of the Multimedia Trust had the option of selling
all or a portion of their rights by designating this desire on the Subscription
Certificate which accompanied the Prospectus. The certificate must have been
returned to State Street Bank and Trust Company by the end of the offering
period at the designated address.
Those who held shares through a broker could simply have made the broker
aware of their desire to sell or exercise the rights. The broker should fulfill
the remainder of the order.
Q. WHAT WERE THE TRANSACTION COSTS ON THE SALE OF THE GGT RIGHTS?
Multimedia Trust rights were sold through State Street Bank and Trust with
no fees and only a nominal commission; however, certain brokerage firms may have
charged a transaction fee to sell rights.
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 5 years at The
Gabelli Global Multimedia Trust and for over 23 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.
[TRIANGLE GRAPHIC OMITTED; TEXT AS FOLLOWS:]
EPS
PMV
MANAGEMENT
CASH FLOW
RESEARCH
Our focus is on free cash flow: earnings before interest, taxes,
depreciation and amortization (EBITDA) minus the capital expenditures necessary
to grow the business. We believe free cash flow is the best barometer of a
business' value. Rising free cash flow often foreshadows net earnings
improvement. We also look at earnings per share trends. Unlike Wall Street's
ubiquitous earnings momentum players, we do not try to forecast earnings with
accounting precision and then trade stocks based on quarterly expectations and
realities. We simply try to position ourselves in front of long-term earnings
uptrends. In addition, we analyze on and off balance sheet assets and
liabilities such as plant and equipment, inventories, receivables, and legal,
environmental and health care issues. We want to know everything and anything
that will add to or detract from our private market value (PMV) estimates.
Finally, we look for a catalyst: something happening in the company's industry
or indigenous to the company itself that will surface value. In the case of the
independent telephone stocks, the catalyst is a regulatory change. In the
agricultural equipment business, it is the increasing world-wide demand for
American food and feed 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
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<PAGE>
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 March 31, 2000. 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.
[2 PIE CHARTS OMITTED, DEPICTING HOLDINGS BY
GEOGRAPHIC REGION AS OF 3/31/00--PLOT POINTS AS FOLLOWS]
(FIRST CHART)
UNITED STATES 66.5%
EUROPE 12.2%
ASIA/PACIFIC RIM 10.5%
CANADA 7.5%
LATIN AMERICA 3.3%
(SECOND CHART)
DISTRIBUTION 63.8%
COPYRIGHT/CREATIVITY 36.2%
The chart at the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of March 31, 2000.
COMMENTARY
THE GREAT WHITE NORTH
The announced restructuring of BCE reflects many of the trends that have
helped propel telecommunications stocks in recent years and illustrates the kind
of value still available in the market place. BCE is surfacing value by spinning
off its stake in a leading telecommunications equipment maker, Nortel Networks.
It is broadening its geographic reach and increasing its exposure to new
technologies and services by increasing its ownership interest in Teleglobe.
Finally, BCE is attempting to marry its distribution with content through an
unsolicited bid for CTV, a Canadian broadcaster with strong news and sports
programming assets. We believe BCE is making all the right strategic moves and
value the company at more than double its current stock price. We also note that
U.S. "Baby Bell" SBC Communications owns 20% of BCE subsidiary Bell Canada. If
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Canadian foreign ownership restrictions are repealed, SBC or some other large
U.S. or foreign telecommunications concern could seek to acquire BCE outright.
TIME WARNER AND AOL--THE SHAPE OF DEALS TO COME
The impending marriage of Time Warner and America Online combines the old
economy with the new (content with distribution)--a merger trend that we believe
will gain momentum in the years ahead. Wall Street is struggling over how to
value the bride and the groom prior to the wedding. Analysts following AOL were
accustomed to looking primarily at top line revenue growth and making
assumptions regarding future operating margins. Analysts covering Time Warner
(including yours truly) looked primarily at cash flow growth, and now must come
up with a different yardstick to assess value.
As evidenced by the decline in both stocks shortly after the merger was
announced, both camps were disappointed with the deal. AOL loyalists did not
like the fact that the addition of Time Warner would slow revenue growth and
Time Warner enthusiasts saw healthy operating profits being diluted. Both stocks
have rebounded since, and as we write, Time Warner is at a 52-week high.
Backing away from the problem of valuing two very different companies and
taking a longer-term view, the marriage of quality products and terrific
distribution makes economic sense. Sometimes it will take the form of mutually
rewarding joint venture arrangements, but we also expect to see more deals with
content and distribution companies finding synergistic partners. This trend
should further intensify already strong merger and acquisition activity,
providing an additional tailwind for the Fund.
THE SCORECARD
As previously stated, telecommunications stocks were performance leaders
this quarter. Our leader board was dominated by wired and wireless
telecommunications providers from around the globe including Telemig Celular,
Tele Centro Oeste Celular, Rostelecom, France Telecom, Cable & Wireless, BCE and
its Canadian neighbor QuebecTel, and good old AT&T. Publishers such as
Independent News & Media, Post Publishing, PRIMEDIA, Times Mirror (now engaged
to Tribune Co.) and TV Guide also posted measurable gains. Filmed entertainment
companies including Disney, Seagram and Time Warner brightened our performance
screen.
Domestic cable television operators such as Cablevision Systems and
Comcast retreated, due in part to reduced merger and acquisition activity in the
sector. Small U.S. broadcasters such as Granite Broadcasting, Gray
Communications, Meredith Corp. and Paxson Communications showed weak signal
strength.
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 March 31, 2000, 678,233 shares were repurchased in the open market.
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LET'S TALK STOCKS
The following are stock specifics on selected holdings of the Multimedia
Trust. Favorable EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) prospects do not necessarily translate into higher stock prices,
but they do express a positive trend which we believe will develop over time.
BCE INC. (BCE - $125.4375 - NYSE) is Canada's global communications company. BCE
has announced a series of transactions in recent months. The company plans to
spin off the majority of its stake in Nortel Networks Corp. (NT - $126.00 -
NYSE) to BCE shareholders. BCE shareholders will receive 0.78 shares of NT per
BCEshare. Other pending transactions include the acquisition of CTV Inc., a
Canadian broadcaster, and Teleglobe, Inc., a provider of global network
services.
CABLE & WIRELESS PLC (CWP - $56.00 - NYSE) is a United Kingdom-based provider of
global telecommunications network services. Major subsidiaries include Hong Kong
Telecommunications (HKT - $25.75 - NYSE) (54% owned); the publicly traded,
U.K.-based company, Cable & Wireless Communications (CWZ - $85.00 - NYSE) (53%
owned), which is the largest cable system operator in the U.K.; and Cable &
Wireless Optus in Australia. CWZ owns 100% of Mercury Communications, the second
largest provider of telecommunications services in Britain, and is a majority
stakeholder in Bell Cable Media, Nynex CableComms and Videotron Holdings plc. In
August, the company agreed to sell Cable & Wireless Communications' consumer
business to NTL Inc. (NTLI -$92.8125 - Nasdaq) for 8 billion pounds, and will
retain its data assets including Mercury Communications. In late February,
Pacific Century Cyberworks (1186 - $2.3374 - Hong Kong) offered to acquire Cable
& Wireless HKT. Hong Kong Telecom is the dominant telecommunications service
provider in Hong Kong. Cable & Wireless has dramatically expanded its global
Internet presence with its September 1998 acquisition of Internet MCI for $1.75
billion and its recently announced acquisition of 8 Internet service providers
in Europe.
CHRIS-CRAFT INDUSTRIES INC. (CCN - $63.6875 - NYSE), through its 80% ownership
of BHC Communications (BHC - $156.00 - 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 - $132.375 - Nasdaq), which operates an NBC affiliate, an ABC
affiliate and five UPN affiliates. UTVI acquired WRBW, a UPN affiliate in
Orlando, for $60 million in July 1999. 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 and strongly positioned to
expand its operations, with roughly $1.5 billion in cash and marketable
securities.
CITIZENS UTILITIES CO. (CZN - $16.375 - NYSE) provides telecommunications
services and public services to approximately 1.9 million customers in 22
states. Citizens owns 83% of Electric Lightwave Inc. (ELIX - $23.875 - Nasdaq),
a competitive local exchange carrier ("CLEC") serving primarily the western U.S.
Management has authorized the separation of Citizens' telecommunications
businesses and public services businesses into two stand-alone, publicly traded
companies. Recently, CZN announced agreements to acquire
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about 1 million rural access lines in 11 states for $2.8 billion. CZN intends to
finance these transactions by divesting its public services operations. Its
water and waste water operations have been sold for $835 million. The company
has an agreement to sell all its electric and waste water utility operations to
Cap Rock Energy and Kauai Island Electric Company for an aggregate purchase
price of $535 million. The company has sold its 16% stake in Centennial
Communications Corp. (CYCL - $24.3125 - NASDAQ) for approximately $205 million.
Citizens monetized its ownership of Century Communications' (CTYA - $45.625 -
Nasdaq) stock and cable operations through a sale to Adelphia Communications for
approximately $220 million.
LIBERTY CORP. (LC - $37.50 - 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.
LIBERTY MEDIA GROUP (LMG'A - $59.25 - NYSE), owned by AT&T Corp., 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.
TELECOM ITALIA MOBILE SPA (TIM.MI - $12.2758 - MILAN STOCK EXCHANGE), formerly a
subsidiary of Telecom Italia (the provider of wired local and long distance
telephone service in Italy), was spun-off in July 1998 and began trading on the
Milan Stock Exchange as an independent company. Telecom Italia Mobile is the
leading cellular provider in Italy and Europe, with over 18 million Global
Systems for Mobile Communications ("GSM") subscribers. The competitive
environment in which Telecom Italia Mobile operates remains favorable, with only
two competitors, Omnitel and Wind.
TELEPHONE & DATA SYSTEMS INC. (TDS - $111.00 - 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 - $71.00 -
AMEX) and conducts its telephone operations through its wholly owned TDS
Telecommunications Corp. (TDS Telecom) subsidiary, a full-service local exchange
carrier. TDS conducts its broadband PCS operations through 82.3% owned Aerial
Communications Inc. (AERL - $56.8125 - Nasdaq), which provides PCS service in
the Minneapolis, Tampa-St. Petersburg-Orlando, Houston, Pittsburgh, Kansas City
and Columbus Major Trading Areas. On September 20, 1999, VoiceStream Wireless
(VSTR - $128.8125 - Nasdaq) announced the acquisition of Aerial in a $3.3
billion transaction. Pro-forma for this acquisition, TDS will own over 36
million shares of VoiceStream.
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UNITED TELEVISION INC. (UTVI - $132.375 - NASDAQ), headquartered in Beverly
Hills, California, is a television broadcasting group which owns and operates
seven of the stations (one ABC, one NBC and five UPN affiliates) that comprise
Chris-Craft's (CCN - $63.6875 - NYSE) television division. The $60 million
purchase of WRBW, a UPN affiliate in Orlando (the country's 22nd largest and the
fastest growing television market over the past decade), closed on July 7, 1999.
UTVI stations cover approximately nine percent of the U.S. population. UTVI is
58%-owned by BHC Communications (BHC - $156.00 - AMEX). United Television is a
beneficiary of the recent FCC ruling allowing television duopoly, or ownership
of two stations in a single market.
USA NETWORKS INC. (USAI - $22.5625 - 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.
DIVIDENDS
The Trust recently distributed a dividend of $0.075 per share to Common
Shareholders on March 24, 2000. For the twelve months ended March 31, 2000, the
Trust distributed a total of $3.695 per share to Common Shareholders. Our
Preferred Shareholders were recently paid a dividend of $0.495 per share on
March 27, 2000. For the twelve months ended March 31, 2000, the Preferred
Shareholders received a total distribution of $1.98 per share, which is the
annual dividend rate on the Preferred Shares.
DAILY NAVS NOW DISTRIBUTED BY NASDAQ
Since our inception, we have made the net asset value available on nightly
recordings through 1-800-GABELLI. Now, Nasdaq is also disseminating the daily
per share net asset values (NAVs) for the Gabelli Global Multimedia Trust, which
is traded on the New York Stock Exchange. The NAV ticker symbol via Nasdaq is
"XGGTX". The NAVs are available through any stock quote lookup service and on
broker Nasdaq level one terminals. The dissemination of daily NAVs allows
investors and brokers to better track the long-term performance of the Fund's
underlying portfolio. We applaud Nasdaq's efforts in making closed-end funds'
NAVs available on a daily basis.
INTERNET
You can now 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
Our vision, as well as your vision and commitment as an investor, have
been grandly rewarded. Investors continued to enjoy strong investment returns
this quarter, as the interactive revolution maintained its strength. We formed
the Trust in 1994, believing that we were entering a period of accelerated
growth globally. The investment objective of the Trust remains the same.
The Fund's primary objective is capital appreciation achieved through a
disciplined investment program focusing on the globalization and interactivity
of the world's marketplace. The Fund invests in companies at the forefront of
accelerated growth. We strive to find reasonably valued businesses exhibiting
creativity to adapt to the changing environment. Additionally, we look for solid
franchises, ideally with unique copyrights that can add to overall value
creation, and for businesses involved in the ever-evolving communication
revolution.
The multimedia industry continues to experience strong secular growth.
Deals and restructuring activity continue to surface values in media businesses.
As with any industry undergoing significant change, there will be winners and
losers. We remain dedicated to identifying and investing in those multimedia
companies best positioned to prosper in the years ahead.
Sincerely,
/s/signature
MARIO J. GABELLI
President and Chief Investment Officer
April 14, 2000
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 2000
--------------
Liberty Media Group
Telephone & Data Systems Inc.
Viacom Inc.
USA Networks Inc.
Liberty Corp.
Telecom Italia Mobile SpA
Citizens Utilities Co.
UnitedGlobalCom Inc.
Chris-Craft Industries Inc.
Cable & Wireless plc
- --------------------------------------------------------------------------------
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
MARCH 31, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 91.3%
COPYRIGHT/CREATIVITY COMPANIES -- 33.1%
ADVERTISING -- 0.1%
4,000 Bowlin Outdoor Advertising &
Travel Centers Inc.+ ....... $ 20,750
200 Havas Advertising SA ......... 108,203
100 Lamar Advertising Co. ........ 4,550
200 Publicas SA .................. 107,246
------------
240,749
------------
CABLE PROGRAMMERS -- 4.0%
60,000 CANAL+, ADR+ ................. 2,886,124
6,000 Flextech plc+ ................ 173,901
320,000 USA Networks Inc.+ ........... 7,220,000
------------
10,280,025
------------
COMPUTER SOFTWARE AND SERVICES -- 0.7%
1,000 Activision Inc.+ ............. 12,062
360 America Online Inc.+ ......... 24,210
3,000 Atlus Co. Ltd. ............... 61,353
2,000 Barnesandnoble.com Inc.+ ..... 18,875
10,000 Block (H&R) Inc. ............. 447,500
2,000 CDNow Inc.+ .................. 7,562
3,230 EarthLink Inc.+ .............. 62,783
500 Electronic Arts Inc.+ ........ 35,594
40,000 Homegrocer.com Inc.+ ......... 415,000
500 Intel Corp. .................. 65,969
3,000 Internet.com Corp.+ .......... 125,625
1,000 Microsoft Corp.+ ............. 106,250
2,000 Mobius Management Systems+ ... 24,250
3,300 NBC Internet Inc., Cl. A+ .... 142,106
100 Pixar Inc.+ .................. 3,569
10,600 Talk.com Inc.+ ............... 169,600
500 Ticketmaster Online-City
Search Inc.+ ............... 12,531
400 Via Net.Works Inc.+ .......... 10,625
------------
1,745,464
------------
CONSUMER PRODUCTS -- 0.0%
4,000 Mattel Inc. .................. 41,750
------------
DIVERSIFIED PUBLISHERS -- 7.5%
10,000 Arnoldo Mondadori Editore SpA 255,187
40,000 Belo (A.H.) Corp., Cl. A ..... 715,000
5,000 Central Newspapers Inc., Cl. A 168,125
1,000 Dow Jones & Co. Inc. ......... 71,812
10,000 EMAP plc ..................... 178,360
2,833 Golden Books Family
Entertainment Inc.+ ........ 4,958
3,500 Hachette Filipacchi Medias ... 251,357
20,000 Harcourt General Inc. ........ 745,000
15,000 Harte-Hanks Communications Inc. 340,312
MARKET
SHARES VALUE
------ ------
1,000 Hollinger International Inc. . $ 10,750
4,500 Houghton Mifflin Co. ......... 190,969
57,000 Independent News & Media plc,
Dublin ..................... 559,449
7,000 Knight-Ridder Inc. ........... 356,562
55,000 Lee Enterprises Inc. ......... 1,436,875
20,000 McClatchy Newspapers Inc., Cl. A 655,000
8,000 McGraw-Hill Companies Inc. ... 364,000
22,000 Media General Inc., Cl. A .... 1,152,250
15,000 Meredith Corp. ............... 415,312
115,000 Nation Multimedia Group+ ..... 106,425
100,000 New Straits Times Press Berhad 444,737
125,000 Oriental Press Group, ORD .... 37,324
95,000 Penton Media Inc. ............ 2,470,000
10,000 Playboy Enterprises Inc., Cl. A+ 167,500
113,400 Post Publishing Co. Ltd.+ .... 119,937
40,000 PRIMEDIA Inc.+ ............... 1,280,000
28,000 Pulitzer Inc.. ............... 1,144,500
60,000 Reader's Digest Association
Inc., Cl. B ................ 1,717,500
34,452 Singapore Press Holdings Ltd. 549,445
385,000 South China Morning
Post Holdings, ORD ......... 370,832
300 SPIR Communication ........... 33,466
15,000 Telegraaf Holdingsmij - CVA .. 470,396
50,000 Thomas Nelson Inc. ........... 396,875
4,500 Times Mirror Co., Cl. A ...... 418,219
50,000 Times Publishing Ltd. ........ 101,063
30,000 Tribune Co. .................. 1,096,875
11,300 United News & Media plc, ADR . 305,100
800 Wiley (John) & Sons Inc., Cl. B 13,700
4,000 Wolters Kluwer NV ............ 91,925
2,000 Ziff-Davis Inc. .............. 31,250
------------
19,238,347
------------
ENTERTAINMENT PRODUCTION -- 9.0%
2,522 EMI Group plc ................ 27,953
20,000 EMI Group plc, ADR ........... 427,500
7,000 GTECH Holdings Corp.+ ........ 129,937
7,000 Grammy Entertainment plc+ .... 28,689
7,000 Granada Group plc ............ 74,967
2,000 Harvey Entertainment Co.+ .... 9,250
340,000 Liberty Media Group, Cl. A+ .. 20,145,000
1,000 Martha Stewart Living
Inc., Cl. A+ ............... 27,000
35,710 Metro-Goldwyn-Mayer Inc.+ .... 908,373
300 NRJ SA ....................... 222,630
10,000 Premier Parks Inc. ........... 210,000
3,000 Princeton Video Image Inc.+ .. 21,000
100,000 Shaw Brothers (Hong Kong) Ltd. 127,784
10,000 TV Guide Inc., Cl. A+ ........ 480,625
2,000 World Wrestling Federation
Entertainment Inc.+ ........ 35,469
------------
22,876,177
------------
11
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
GLOBAL MEDIA AND ENTERTAINMENT -- 8.8%
481 Boston Celtics L.P. .......... $ 4,780
60,000 Disney (Walt) Co. ............ 2,482,500
40,000 Fox Entertainment Group Inc. . 1,197,500
38,000 Grupo Televisa SA, GDR+ ...... 2,584,000
21,000 News Corp. Ltd., ADR ......... 1,181,250
40,000 Seagram Co. .................. 2,380,000
2,500 Sony Corp., ADR .............. 700,313
38,000 Time Warner Inc. ............. 3,800,000
155,000 Viacom Inc., Cl. A+ .......... 8,282,812
------------
22,613,155
------------
HOTELS AND GAMING -- 2.9%
10,000 Aztar Corp.+ ................. 95,000
6,000 Churchill Downs Inc. ......... 158,250
120,000 Gaylord Entertainment Co. .... 3,255,000
700,000 Hilton Group plc ............. 3,252,286
5,000 MGM Grand Inc. ............... 120,000
10,000 Mirage Resorts Inc.+ ......... 193,750
10,000 Park Place Entertainment Corp.+ 115,625
2,500 Quintel Entertainment Inc.+ .. 14,687
4,000 Starwood Hotels & Resorts
Worldwide Inc. ............. 105,000
------------
7,309,598
------------
INFORMATION PUBLISHING -- 0.1%
15,000 Berlitz International Inc.+ .. 171,562
8,000 Data Broadcasting Corp.+ ..... 61,000
1,000 Dun & Bradstreet Corp. ....... 28,625
500 Scholastic Corp.+ ............ 26,969
------------
288,156
------------
TOTAL COPYRIGHT/CREATIVITY
COMPANIES .................. 84,633,421
------------
DISTRIBUTION COMPANIES -- 58.2%
BROADCASTING -- 10.7%
90,000 Ackerley Group Inc. .......... 1,361,250
8,550 American Tower Corp., Cl. A+ . 422,156
1,000 AMFM Inc.+ ................... 62,125
2,500 Audiofina .................... 309,408
2,900 BHC Communications Inc., Cl. A 452,400
12,000 CanWest Global Communications Corp. 129,000
18,000 CanWest Global Communications Corp.,
Sub-Voting ................. 195,114
2,000 Carlton Communications plc, ADR 117,500
66,950 Chris-Craft Industries Inc.+ . 4,263,878
MARKET
SHARES VALUE
------ ------
500 Clear Channel Communications
Inc.+ ...................... $ 34,531
8,333 Corus Entertainment Inc., Cl. B+ 217,931
3,000 Cox Radio Inc., Cl. A+ ....... 252,000
4,000 CTV Inc.+ .................... 105,712
1,000 Emmis Communications Corp.,
Cl. A+ ..................... 46,500
20,120 Fisher Companies Inc. ........ 1,257,500
1,000 General Electric Co. ......... 155,188
92,500 Granite Broadcasting Corp.+ .. 659,062
13,125 Gray Communications Systems Inc. 155,859
60,000 Gray Communications
Systems Inc., Cl. B ........ 705,000
7,000 Groupe AB SA, ADR+ ........... 86,625
5,000 Grupo Radio Centro, SA de CV, ADR 67,187
36,000 Hearst-Argyle Television Inc.+ 841,500
1,500 Infinity Broadcasting Corp.+ . 48,562
700 LaGardere S.C.A. ............. 56,874
150,000 Liberty Corp. ................ 5,625,000
400 Metropole TV M6 SA ........... 273,476
1,500 Nippon Television Network .... 1,064,907
1,500 Nippon Television Network,
New Shares ................. 1,051,760
5,000 NTN Communications Inc.+ ..... 20,000
67,000 Paxson Communications
Corp., Cl. A+ .............. 519,250
500 Radio One Inc.+ .............. 33,312
1,525 SAGA Communications Inc., Cl. A 29,166
17,000 Salem Communications
Corp., Cl. A+ .............. 202,937
2,000 SBS Broadcasting SA+ ......... 123,000
1,000 Sinclair Broadcast Group Inc.+ 8,937
43,000 Sistem Televisyen Malaysia Berhad 49,337
1,000 Spanish Broadcasting
System Inc., Cl. A+ ........ 23,453
50,000 Television Broadcasting Ltd., ORD 444,677
2,500 Television Francaise 1 ....... 1,843,284
55,000 Tokyo Broadcasting System Inc. 2,169,255
3,000 TV Azteca, SA de C.V.+ ....... 44,250
12,600 United Television Inc. ....... 1,667,925
500 Wink Communications Inc.+ .... 16,687
5,000 Young Broadcasting Inc., Cl. A+ 95,000
------------
27,308,475
------------
BUSINESS SERVICES -- 1.3%
15,000 Carlisle Holdings Ltd.+ ...... 117,187
4,000 Cendant Corp.+ ............... 74,000
500 CheckFree Holdings Corp.+ .... 35,250
1,000 Convergys Corp.+ ............. 38,625
9,400 Donnelley (R.H.) Corp. ....... 159,800
2,000 IMS Health Inc. .............. 33,875
26,100 Vivendi ...................... 3,011,542
------------
3,470,279
------------
12
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
CABLE -- 5.8%
6,000 Austar United Communications
Ltd.+ ...................... $ 30,788
65,000 Cablevision Systems
Corp., Cl. A+ .............. 3,948,750
10,000 Charter Communications
Inc., Cl. A+ ............... 143,281
5,000 Comcast Corp., Cl. A ......... 206,250
7,000 Comcast Corp., Cl. A, Special 303,625
5,000 Mediacom Communications Corp.+ 69,687
43,000 MediaOne Group Inc.+ ......... 3,483,000
10,000 Mercom Inc.+ (b) ............. 120,000
7,027 NTL Inc.+ .................... 652,193
13,090 Telewest Communications
plc, ADR+ .................. 1,106,105
58,000 UnitedGlobalCom Inc., Cl. A+ . 4,353,625
10,000 Videotron Groupe ............. 274,948
------------
14,692,252
------------
CONSUMER SERVICES -- 0.1%
10,000 Allied Domecq plc ............ 52,513
500 Department 56 Inc.+ .......... 7,406
3,000 Hotel Reservations Inc., Cl. A+ 53,250
15,000 Lillian Vernon Corp. ......... 142,500
------------
255,669
------------
ENERGY AND UTILITIES -- 0.2%
50,000 El Paso Electric Co.+ ........ 518,750
------------
ENTERTAINMENT DISTRIBUTION -- 2.0%
6,000 AMC Entertainment Inc.+ ...... 30,375
225,000 Blockbuster Inc., Cl. A ...... 2,250,000
39,500 GC Companies Inc.+ ........... 1,372,625
3,500 Liberty Digital Inc.+ ........ 134,750
5,000 Loews Cineplex Entertainment
Corp.+ ..................... 17,500
39,000 Shaw Communications Inc., Cl. B 1,046,800
11,000 Shaw Communications Inc., Cl. B,
Non-Voting+ ................ 296,312
------------
5,148,362
------------
EQUIPMENT -- 2.1%
35,000 Allen Telecom Inc.+ .......... 557,812
2,100 Amphenol Corp., Cl. A+ ....... 214,725
2,000 CommScope Inc.+ .............. 91,250
1,000 Furukawa Electric Co. Ltd. ... 16,799
4,000 Gemstar International Group
Ltd.+ ...................... 344,000
7,000 Hutchison Whampoa Ltd. ....... 126,308
920 Koninklijke Philips Electronics
NV, ADR .................... 157,608
2,500 L-3 Communications Holdings Inc.+ 130,000
3,000 Lucent Technologies Inc. ..... 182,250
1,000 Nortel Networks Corp. ........ 126,000
150,000 Oak Technology Inc.+ ......... 2,887,502
6,000 Scientific-Atlanta Inc. ...... 380,625
MARKET
SHARES VALUE
------ ------
2,000 TiVo Inc.+ ................... $ 69,250
------------
5,284,129
------------
INTERNATIONAL TELEPHONE -- 9.5%
33,500 BCE Inc. ..................... 4,202,156
45,000 BCT.Telus Communications Inc. 1,331,727
10,000 BCT.Telus Communications
Inc., ADR .................. 295,939
20,000 BCT.Telus Communications
Inc., Cl. A ................ 591,879
500 British Telecommunications
plc, ADR ................... 94,063
76,000 Cable & Wireless plc, ADR .... 4,256,000
27,000 Compania de Telecomunicaciones
de Chile SA, ADR ........... 614,250
2,000 Deutsche Telekom AG, ADR+ .... 160,500
10,000 Embratel Participacoes SA, ADR+ 256,250
1,000 France Telecom SA, ADR ....... 176,938
21,000 GST Telecommunications Inc.+ . 128,625
90 Japan Telecom Co. Ltd. ....... 3,812,631
500 Magyar Tavkozlesi Rt, ADR .... 22,313
10 Nippon Telegraph & Telephone Corp. 158,738
20,000 Philippine Long Distance
Telephone Co., ADR ......... 438,750
7,000 PT Indonesia Satellite, ADR .. 120,313
4,320 PT Telekomunikasi Indonesia, ADR 41,040
6,000 QuebecTel Group Inc. ......... 92,498
4,000 Rostelecom, ADR .............. 95,000
1,000 Sonera Group Oyj ............. 68,273
20,000 Swisscom AG, ADR ............. 763,750
3,300 Tele Centro Sul Participacoes
SA, ADR .................... 267,300
16,500 Tele Norte Leste Participacoes
SA, ADR .................... 439,313
3,000 Telecom Argentina Stet France
Telecom SA, ADR ............ 104,250
1,000 Telecom Corp. of
New Zealand Ltd., ADR ...... 36,688
16,500 Telecomunicacoes de Sao Paulo SA
(Telesp), ADR .............. 489,844
3,000 Telefonica de Argentina SA,
Cl. B, ADR ................. 117,750
500 Telefonica del Peru, ADR ..... 8,500
250,000 Telefonica del Peru, Cl. B ... 423,777
41,000 Telefonica SA, ADR ........... 3,059,625
24,000 Telefonos de Mexico SA,
Cl. L, ADR ................. 1,608,000
2,400 Telstra Corp. Ltd., ADR ...... 56,400
------------
24,333,080
------------
SATELLITE -- 2.6%
300 Asia Satellite Telecommunications
Holdings Ltd., ADR ......... 12,131
2,000 British Sky Broadcasting
Group, ADR ................. 317,875
10,000 COMSAT Corp. ................. 206,250
28,000 EchoStar Communications
Corp., Cl. A+ .............. 2,212,000
13
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
SATELLITE (CONTINUED)
10,000 General Motors Corp., Cl. H+ . $ 1,245,000
4,000 Globalstar Telecommunications
Ltd.+ ...................... 55,500
15,008 Loral Space & Communications Ltd.+ 152,894
11,200 Pegasus Communications Corp.+ 1,576,400
45,000 TCI Satellite Entertainment
Inc., Cl. A+ ............... 860,625
------------
6,638,675
------------
TELECOMMUNICATIONS -- 3.7%
4,266 Aliant Inc.+ ................. 114,504
3,000 Allegiance Telecom Inc.+ ..... 241,875
3,000 ALLTEL Corp. ................. 189,188
4,000 BroadWing Inc.+ .............. 148,750
2,000 Choice One Communications Inc.+ 71,000
33,750 CoreComm Ltd.+ ............... 1,485,000
5,000 Eircom plc ................... 22,287
9,000 Electric Lightwave Inc., Cl. A+ 214,875
8,000 Global Crossing Ltd.+ ........ 327,500
3,000 Global Telesystems Group Inc.+ 61,500
1,305 Hellenic Telecommunications
Organization SA ............ 37,125
1,000 Jazztel plc, ADR+ ............ 80,938
10,000 Metromedia International
Group Inc.+ ................ 56,250
35,000 RCN Corp.+ ................... 1,885,625
9,655 Rogers Communications
Inc., Cl. B+ ............... 285,730
130,345 Rogers Communications Inc.,
Cl. B, ADR+ ................ 3,885,910
5,500 Time Warner Telecom Inc., Cl. A+ 437,250
3,000 USN Communications Inc.+ ..... 240
------------
9,545,547
------------
TELECOMMUNICATIONS: LONG DISTANCE -- 2.4%
17,000 AT&T Corp. ................... 956,250
30,000 Esat Telecom Group plc, ADR+ . 2,996,250
6,000 MCI WorldCom Inc.+ ........... 271,875
12,000 Sprint Corp. ................. 756,000
3,000 Startec Global Communications
Corp.+ ..................... 63,000
22,000 Viatel Inc.+ ................. 1,104,125
------------
6,147,500
------------
U.S. REGIONAL OPERATORS -- 2.5%
130,000 Citizens Utilities Co., Cl. B+ 2,128,750
24,434 Commonwealth Telephone
Enterprises Inc.+ .......... 1,146,871
24,400 Commonwealth Telephone
Enterprises Inc., Cl. B+ ... 1,134,600
20,000 GTE Corp. .................... 1,420,000
5,000 SBC Communications Inc. ...... 210,000
5,000 US West Inc. ................. 363,125
------------
6,403,346
------------
MARKET
SHARES VALUE
------ ------
WIRELESS COMMUNICATIONS -- 15.3%
45,000 Aerial Communications Inc.+ .. $ 2,556,563
3,000 Cable & Wireless Communications
plc, ADR ................... 255,000
37,000 CenturyTel Inc. .............. 1,373,625
22,000 Iridium World Communications
Ltd., Cl. A+ ............... 19,766
13,000 Leap Wireless International
Inc.+ ...................... 1,282,938
5,000 Libertel NV+ ................. 106,767
8,447 Nextel Communications Inc.,
Cl. A+ ..................... 1,252,268
100 NTT Mobile Communications
Network Inc. ............... 4,099,917
18,000 Price Communications Corp.+ 414,000
6,000 Qualcomm Inc.+ ............... 895,875
77,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ 3,113,688
12,200 Rural Cellular Corp., Cl. A+ . 824,263
38,680 SK Telecom Co. Ltd., ADR ..... 1,508,520
7,000 Sprint Corp. (PCS Group)+ .... 457,188
1,650 Tele Celular Sul Participacoes
SA, ADR .................... 82,500
5,500 Tele Centro Oeste Celular
Participacoes SA, ADR ...... 63,938
330 Tele Leste Celular Participacoes
SA, ADR .................... 19,800
825 Tele Nordeste Celular Participacoes
SA, ADR .................... 59,194
330 Tele Norte Celular Participacoes
SA, ADR .................... 20,460
3,300 Tele Sudeste Celular Participacoes
SA, ADR .................... 164,794
380,000 Telecom Italia Mobile SpA .... 4,664,800
825 Telemig Celular Participacoes
SA, ADR .................... 73,064
85,000 Telephone & Data Systems Inc. 9,435,000
6,600 Telesp Celular Participacoes
SA, ADR .................... 374,138
6,000 Teligent Inc., Cl. A ......... 400,875
18,000 Total Access Communications plc+ 57,600
20,000 U.S. Cellular Corp.+ ......... 1,420,000
3,500 Vimpel-Communications, ADR+ .. 148,094
18,000 Vodafone AirTouch plc, ADR ... 1,000,125
16,000 VoiceStream Wireless Corp.+ .. 2,061,000
2,000 Western Wireless Corp., Cl. A+ 91,625
15,000 WinStar Communications Inc.+ . 900,000
------------
39,197,385
------------
TOTAL DISTRIBUTION
COMPANIES .................. 148,943,449
------------
TOTAL COMMON STOCKS .......... 233,576,870
------------
14
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
PREFERRED STOCKS -- 2.2%
BUSINESS SERVICES -- 0.0%
6,000 Cendant Corp., 1.30% Cv. Pfd. $ 147,000
------------
GLOBAL MEDIA AND ENTERTAINMENT -- 1.2%
62,765 News Corp. Ltd., Pfd., ADR ... 2,997,029
------------
U.S. REGIONAL OPERATORS -- 1.0%
40,000 Citizens Utilities Co.,
5.00% Cv. Pfd. ............. 2,500,000
------------
TOTAL PREFERRED STOCKS ....... 5,644,029
------------
PRINCIPAL
AMOUNT
---------
CORPORATE BONDS -- 0.2%
BUSINESS SERVICES -- 0.1%
$275,000 Trans-Lux Corp., Sub. Deb. Cv.
7.50%, 12/01/06 ............ 228,594
------------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
50,000 BBN Corp., Sub. Deb. Cv. (b)
6.00%, 04/01/12 ............ 48,375
------------
DIVERSIFIED PUBLISHERS -- 0.0%
58,000 Golden Books Family
Entertainment Inc., PIK
10.75%, 12/31/04 ........... 34,800
------------
GLOBAL MEDIA AND ENTERTAINMENT -- 0.0%
20,000 Boston Celtics L.P., Sub. Deb. Cv.
6.00%, 06/30/38 ............ 10,650
------------
HOTELS AND GAMING -- 0.1%
200,000 Hilton Hotels Corp., Sub. Deb. Cv.
5.00%, 05/15/06 ............ 153,000
------------
TOTAL CORPORATE BONDS ........ 475,419
------------
SHARES
------
WARRANTS -- 0.0%
ADVERTISING -- 0.0%
200 Havas Advertising SA Warrants
expires 05/13/01 ........... 3,122
------------
TOTAL WARRANTS ............... 3,122
------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 4.3%
$10,989,000 U.S. Treasury Bills, 5.40% to 6.06%++,
due 04/06/00 to 05/18/00 ... 10,944,293
------------
MARKET
VALUE
------
TOTAL INVESTMENTS -- 98.0% (A)
(Cost $118,457,927) ..................... $250,643,733
============
OTHER ASSETS, LIABILITIES AND
LIQUIDATION VALUE OF CUMULATIVE
PREFERRED STOCK -- (10.1)% .............. (25,823,411)
------------
NET ASSETS -- COMMON STOCK -- 87.9%
(10,798,315 common shares outstanding) .. 224,820,322
------------
NET ASSETS -- CUMULATIVE
PREFERRED STOCK -- 12.1%
(1,235,700 preferred shares outstanding) 30,892,500
------------
TOTAL NET ASSETS -- 100.0% ................ $255,712,822
============
NET ASSET VALUE PER COMMON SHARE
($224,820,322 / 10,798,315 shares
outstanding) ............................ $20.82
======
--------------------
(a) For Federal tax purposes:
Aggregate cost .................... $118,457,927
============
Gross unrealized appreciation ..... $137,132,711
Gross unrealized depreciation ..... (4,946,905)
------------
Net unrealized appreciation ....... $132,185,806
============
(b) Security fair valued as determined by the Board of Directors.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
ADS - American Depositary Shares
USD - United States Dollar
ORD - Ordinary Share
GDR - Global Depositary Receipt
% OF
MARKET MARKET
VALUE VALUE
------- ------
GEOGRAPHIC DIVERSIFICATION
United States ................... 66.5% $166,712,496
Europe .......................... 12.2 30,636,827
Asia/Pacific Rim ................ 10.5 26,378,738
Canada .......................... 7.5 18,685,849
Latin America ................... 3.3 8,229,823
------ ------------
Total Investments ............... 100.0% $250,643,733
====== ============
15
<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 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.
16
<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
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
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NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 10,798,315 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
"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.
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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 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. 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
FIRST QUARTER REPORT
MARCH 31, 2000
GBFMT 03/00
