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THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
THIRD QUARTER REPORT
SEPTEMBER 30, 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(TRADE MARK) GABELLI GLOBAL MULTIMEDIA
TRUST 5 STARS OVERALL AND FOR THE THREE AND
FIVE-YEAR PERIOD ENDED 09/30/00
AMONG 52 AND 51 CLOSED-END DOMESTIC
EQUITY FUNDS, RESPECTIVELY.
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#1 SECTOR
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LIPPER INC. RANKED GABELLI GLOBAL
MULTIMEDIA TRUST #1 FOR THE THREE-YEAR PERIOD
ENDED 09/30/00 AMONG 15 CLOSED-END
SECTOR EQUITY FUNDS.
---------------------------------------------
INVESTMENT OBJECTIVE:
The Gabelli Global Multimedia Trust Inc. is a closed-end,
non-diversified management investment company whose primary
objective is long-term growth of capital, with income as a
secondary objective. The Fund seeks opportunities for long-term
growth within the context of two main investment universes:
companies involved in creativity, as it relates to the
development of intellectual property rights (copyrights); and
companies involved in distribution, as it relates to the delivery
of these copyrights. Additionally, the Fund will invest in
companies participating in emerging technological advances in
interactive services and products.
THIS REPORT IS PRINTED ON RECYCLED PAPER.
<PAGE>
TO OUR SHAREHOLDERS,
In the third quarter of 2000, multimedia stocks continued to drift lower.
Profit taking, concern over valuations, a slowdown in headline making deals, and
pricing pressure in the most competitive sectors of the media and
telecommunications industry plagued the group. With rising oil prices and the
plummeting euro threatening economic growth on the Continent, European
multimedia stocks were hit particularly hard.
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INVESTMENT PERFORMANCE
For the third quarter ended September 30, 2000, The Gabelli Global
Multimedia Trust's (the "Multimedia Trust") net asset value ("NAV") decreased
6.58%. The Morgan Stanley Capital International World Free Index of global
equity markets and Lipper Global Fund Average declined 5.42% and 3.02%
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 21.60% over the trailing twelve-month period
after adjusting for the $3.195 per share in distributions and the Rights
Offering during this period. The Morgan Stanley World Free Index and Lipper
Global Fund Average rose 8.01% and 18.93%, respectively, over the same
twelve-month period.
For the five-year period ended September 30, 2000, the Multimedia Trust's
total return averaged 28.00% annually, versus average annual total returns of
14.13% and 15.05% for the Morgan Stanley World Free Index and Lipper Global Fund
Average, respectively. Since inception on November 15, 1994 through September
30, 2000, the Multimedia Trust had a cumulative total return of 287.20%, which
equates to an average annual total return of 25.88%.
The Multimedia Trust's common shares ended the third quarter at $13.50 per
share on the New York Stock Exchange, a total return of 2.43% for the third
quarter. The Multimedia Trust's common shares rose 13.86% over the trailing
twelve-month period after adjusting for all distributions and the Rights
Offering.
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<TABLE>
AVERAGE ANNUAL RETURNS - SEPTEMBER 30, 2000
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<CAPTION>
NAV Average Average Annual
Annual Return Investment Return (A)
------------- ---------------------
<S> <C> <C>
1 Year .......................................... 21.60% 13.86%
5 Year .......................................... 28.00% 26.29%
Life of Fund (SINCE NOVEMBER 15, 1994) .......... 25.88% 20.15%
(A) BASED ON INITIAL OFFERING PRICE OF $7.50
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</TABLE>
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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
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 Multimedia Trust's holdings by
geographic region as of September 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.
HOLDINGS BY GEOGRAPHIC REGION - 9/30/00
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
UNITED STATES 76.4%
ASIA/PACIFIC RIM 7.7%
EUROPE 7.7%
CANADA 6.1%
LATIN AMERICA 2.1%
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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.
HOLDINGS BY CLASSIFICATION - 9/30/00
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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
DISTRIBUTION 61.9%
COPYRIGHT/CREATIVITY 38.1%
The accompanying chart depicts the equity mix of the copyright/creativity
and distribution companies in the Trust's portfolio as of September 30, 2000.
COMMENTARY
TMT
Technology, media, and telecommunications ("TMT") stocks produced
exceptional returns in 1997-99. This year, media and telecommunications stocks
languished. This is partially the result of good old-fashioned profit taking in
stocks that had delivered spectacular returns and momentum investors were
dumping.
However, there are other factors that have temporarily soured investors on
media and telecommunication stocks. Consolidation has slowed as regulators here
and abroad are redefining "competitive" standards. European regulators rejected
Time Warner's proposed acquisition of European recorded music powerhouse EMI.
The WorldCom/Sprint merger was derailed by U.S. regulators. U.S. antitrust
authorities are taking a hard look at the Time Warner/AOL deal. These actions
have put potential international telecommunications acquirers such as Deutsche
Telecom temporarily on hold. Smaller deals without antitrust implications are
being completed. However, these smaller deals do not generate the kind of
headlines that captivate investors. Is this the start of a global regulatory
backlash? We do not think so. Consolidation in these industries makes economic
sense in a truly global marketplace.
The constricted capital markets are also causing disruption. As a result
of the "dot.com" stock massacre, the new issue market appears to be closed for
the season and venture capital firms have pulled in their horns. Internet
start-ups are not the only companies being hurt. Promising young media and
telecommunications companies are just not going to be able to survive without
being able to tap the equity or venture capital markets for cash infusions.
These cash-burn casualties will be absorbed by larger entities at rock-bottom
prices, indiscriminately depressing asset values for more worthy competitors.
For example, Time Warner Telecom scooped up bankrupt competitive local exchange
carrier ("CLEC") GST Telecommunications at a fire sale price. Shortly
thereafter, virtually every CLEC stock got shelled.
Media and telecommunications companies do face serious challenges in the
years ahead. Not all will be up to the task. The Internet is the competitive
tool of the future, but not all media companies will make a successful
transition into the online world. This will be a particularly tough hurdle for
print media companies without a well-planned Internet strategy. The long
distance telephony market is besieged by cutthroat competition and pricing. This
will likely continue
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for the foreseeable future as margins and earnings are sacrificed on the altar
of market share. Technology will bring new entrants and established companies
will have to fight vigorously to preserve their franchises.
All things considered, how do we feel about the media and
telecommunications stocks that have rewarded us so generously over the past
several years, but performed so poorly in 2000? Just fine thank you. There are
going to be winners and losers in these rapidly changing industries. Risk and
reward always go hand in hand. Going forward, stock selection remains the key to
making money in these dynamic industries. The silver lining in the cloud
overhanging the media and telecommunications groups is that we now have more
value oriented opportunities to choose from. We believe if we do our analysis,
we can identify many of the companies that will prosper while avoiding most of
those that will fail. A solid stock picking batting average in these groups
should produce attractive long-term returns.
A MEDIA BASTILLE DAY?
In recent years, regulatory barricades in the media industry have been
coming down. Television and radio station cross-ownership barriers have fallen
and broadcast companies have been allowed to substantially expand their national
footprints. But, there are still walls preventing media companies from realizing
their full potential. Media companies are not permitted to own television
stations and newspapers in the same market. Broadcasters and cable television
companies still have onerous and unnecessary restrictions on the number of
customers they can service. We believe as the Internet Age unfolds--making
information and entertainment instantly available to an increasing percentage of
the American public--media companies will be liberated from largely unnecessary
restrictions. Federal Communications Commission ("FCC") Chairman William Kennard
is retiring after the election. The new FCC boss, whether a Democrat or a
Republican, may promote more market oriented regulation. Eventually, common
sense and economic realities will rise above politics, and media companies will
be unshackled. Our portfolio is well positioned to celebrate a Bastille Day for
the media industry. Content will again be King - just as Cash is again King.
SPECTRUM
America is well behind the rest of the developed world in building
state-of-the-art wireless communications systems. One of the reasons is that the
FCC has kept tight control over the transmission spectrum needed to fully
develop wireless networks. Broadcasters have been allocated large chunks of
spectrum to be used to deliver high definition television ("HDTV"). It now
appears that the demand for HDTV will fall well short of previous expectations.
Currently, there is a debate over whether the FCC should retake control of this
spectrum or allow broadcasters to sell it on the open market. We think the
latter option makes more sense. This is a win/win situation. Broadcasters could
make a bundle by auctioning off spectrum and wireless communications companies
would be able to acquire the spectrum they need to further develop their
systems.
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INVESTMENT SCOREBOARD
Winners outnumbered losers by a significant margin in the third quarter of
2000. Our best performers came from a variety of multimedia niches. We tip our
hats to the television programmers at Paxson Communications, the charming
hostess of Martha Stewart Living Omnimedia, the folks who distribute the seats
to prime events at Ticketmaster Online, and our old friends at Chris-Craft who
boosted their personal fortunes by agreeing to sell their broadcasting company
to News Corp.
Telecommunications stocks dominate our list of losers. Sprint and WorldCom
declined sharply after antitrust regulators spoiled their proposed marriage.
Communications equipment blue chip Lucent Technologies was punished for ongoing
earnings problems. The plunging Euro hit our European investments hard, with
Deutsche Telekom, Swisscom and France Telecom giving back a lot of ground.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
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.
AT&T CORP. (T - $29.375 - NYSE) provides voice, data and video communications
services to large and small businesses, as well as consumers and government
entities. AT&T and its subsidiaries furnish domestic and international long
distance, regional, local and wireless communications services, cable television
and Internet communications services. Recently, the company announced that it
would split into four separate companies. After the restructuring, AT&T Wireless
will be converted from a tracking stock to an independent common stock. AT&T
Broadband, which includes cable, will have an initial public offering (IPO) for
a tracking stock, and within 12 months of the IPO the tracking stock will be
converted into common stock. AT&T Consumer will become a new consumer tracking
stock that will mirror the performance of the companies' residential long
distance and WorldNet Internet access business. AT&T's principal unit would be
AT&T Business, and shareholders would ultimately own all four.
CABLE & WIRELESS PLC (CWP - $42.5625 - NYSE) is a United Kingdom-based provider
of global telecommunications network services. Its key assets include: (1)
ownership in leading voice, data & ISP networks in the U.K. and U.S.; (2)
numerous stakes in undersea telecom network routes; and (3) a strong regional
presence in Asia/Pacific, Europe and the Caribbean/Latin America. Sale of Cable
& Wireless HKT plc to Pacific Century Cyberworks (PCW - $11.00 - NYSE) closed on
August 17, 2000. As a result of this transaction, CWP holds a meaningful
position in PCW.
CABLEVISION SYSTEMS CORP. (CVC - $66.3125 - 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, 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.
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CHRIS-CRAFT INDUSTRIES INC. (CCN - $82.375 - NYSE), through its 80% ownership of
BHC Communications (BHC - $157.375 - 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 - $147.00 - 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 - $56.0625 - 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.
LIBERTY CORP. (LC - $34.625 - 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. In June, Liberty announced it would 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 fifteen.
LIBERTY MEDIA GROUP (LMG'A - $18.00 - NYSE), run by savvy media investor John
Malone, is engaged in businesses that 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 investment portfolio also
includes interests in international video distribution businesses, international
telephony and domestic wireless companies, 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.
SEAGRAM CO. (VO - $57.4375 - 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 - $21.9375 - Nasdaq). On June 20th, Seagram agreed to
merge with French companies Vivendi and Canal Plus, creating a fully integrated
global media and communications company for the wired and wireless world.
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TELEPHONE & DATA SYSTEMS INC. (TDS - $110.70 - 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 - $70.00 -
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 - $116.0625 - Nasdaq), TDS
now owns 35.6 million shares of VSTR valued at over $4.0 billion. VSTR is in the
process of being acquired by Deutsche Telekom (DT - $34.25 - NYSE), a former
German phone monopoly, for 3.2 DT shares plus $30 in cash per VSTR share.
U.S. CELLULAR CORP. (USM - $70.00 - AMEX) is a 81% owned subsidiary of TDS and
is a wireless carrier with cellular licenses covering over 25 million people
primarily in rural and suburban markets. USM currently serves over 2.8 million
subscribers and is an important roaming partner for national wireless carriers
such as ATT Wireless (AWE - $20.875 - NYSE), Verizon Wireless (VZ - $48.4375 -
NYSE), and Sprint PCS (PCS - $35.125 - NYSE).
USA NETWORKS INC. (USAI - $21.9375 - 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.
VERIZON COMMUNICATIONS (VZ - $48.4375 - NYSE) was formed by the merger of Bell
Atlantic and GTE, and a combination of the wireless assets of the combined
company with U.S. assets of Vodafone Group plc (VOD - $37.00 - NYSE). VZ is one
of the world's leading providers of high-growth communications services. Verizon
companies are the largest providers of wireline and wireless communications in
the United States, with 95 million access line equivalents and 25 million
wireless customers. Verizon is also the world's largest provider of print and
on-line directory information. Verizon's global presence extends to 40 countries
in the Americas, Europe, Asia and the Pacific.
VIVENDI (EX.PA - $74.30 - PARIS STOCK EXCHANGE) recently announced plans to
merge with Canal Plus, of France, and Seagram, of Canada. Vivendi has announced
plans to spin-off Vivendi Environment. At the completion of the merger, Vivendi
will have completed its transition from France's largest environmental services
company to a global communications company engaged in film, music and
communications. The group also owns 44% of Cegetel, France's second largest
telecommunications operator.
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VOICESTREAM WIRELESS CORP. (VSTR - $116.0625 - NASDAQ) is one of the remaining
two U.S. independent national wireless service providers with PCS licenses
covering over 220 million people. VSTR was spun-off of Western Wireless about 18
months ago and is the only national carrier utilizing GSM (Global System for
Mobile Communication) technology, a dominant standard in Europe. VSTR is in the
process of being acquired by Deutsche Telekom (DT - $34.25 - NYSE), a former
German phone monopoly, for 3.2 DT shares plus $30 in cash per VSTR share. The
merger is pending regulatory approval and is expected to close in 2001. DT
ownership will provide VSTR with significant financial resources and allow it to
aggressively build out its licensed territory and gain market share in the
growing domestic wireless industry.
STOCK REPURCHASE PLAN
The Gabelli Global Multimedia Trust is authorized to repurchase up to
1,000,000 shares of the Multimedia Trust's outstanding common 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 September 30, 2000, 697,733 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 September 26, 2000 of $0.495 per share. For the twelve-months
ended September 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 December 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
After a long and rewarding run, multimedia stocks have gone from being
market darlings to market discards. In this instance, the market's trash is our
treasure. Media and telecommunications businesses still have exceptional global
growth potential, which we believe will be realized in the years ahead. We
believe the group continues to present a wealth of investment opportunities for
disciplined and selective investors.
Sincerely,
/S/ SIGNATURE
MARIO J. GABELLI, CFA
President and Chief Investment Officer
November 14, 2000
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TOP TEN HOLDINGS
SEPTEMBER 30, 2000
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Liberty Media Group Liberty Corp.
Telephone & Data Systems Inc. Cablevision Systems Corp.
Viacom Inc. VoiceStream Wireless Corp.
USA Networks Inc. Seagram Co.
Chris-Craft Industries Inc. Key3Media Group Inc.
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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
SEPTEMBER 30, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 81.0%
COPYRIGHT/CREATIVITY COMPANIES -- 30.9%
ADVERTISING -- 0.0%
4,000 Bowlin Outdoor Advertising &
Travel Centers Inc.+ ....................... $ 26,500
4,000 Havas Advertising SA ....................... 63,182
100 Lamar Advertising Co. ...................... 3,787
2,000 Publicis Groupe ............................ 61,064
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154,533
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CABLE PROGRAMMERS -- 3.3%
60,000 Canal Plus, ADR+ ........................... 1,796,969
315,000 USA Networks Inc.+ ......................... 6,910,312
-----------
8,707,281
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COMPUTER SOFTWARE AND SERVICES -- 0.6%
1,000 Activision Inc.+ ........................... 15,000
360 America Online Inc.+ ....................... 19,350
10,000 America Online Latin America Inc.+ ......... 78,750
3,000 Atlus Co. Ltd. ............................. 36,646
1,000 Barnesandnoble.com Inc.+ ................... 4,906
5,000 Block (H&R) Inc. ........................... 185,312
3,230 EarthLink Inc.+ ............................ 29,474
1,000 Electronic Arts Inc.+ ...................... 49,375
100,000 Genuity Inc.+ .............................. 653,125
1,000 Intel Corp. ................................ 41,625
3,000 Internet.com Corp.+ ........................ 92,812
3,000 Microsoft Corp.+ ........................... 180,750
2,000 Mobius Management Systems+ ................. 8,625
15,000 NBC Internet Inc., Cl. A+ .................. 98,437
100 Pixar Inc.+ ................................ 3,212
10,600 Talk.com Inc.+ ............................. 46,706
1,000 Ticketmaster Online-City Search Inc.+ ...... 16,937
2,000 Via Net.Works Inc.+ ........................ 19,250
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1,580,292
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CONSUMER PRODUCTS -- 0.8%
10,000 Mattel Inc. ................................ 111,875
100,000 Shaw Industries Inc. ....................... 1,850,000
16,140 Webvan Group Inc.+ ......................... 37,324
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1,999,199
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DIVERSIFIED PUBLISHERS -- 7.8%
20,000 Arnoldo Mondadori Editore SpA .............. 237,902
40,000 Belo (A.H.) Corp., Cl. A ................... 737,500
1,000 Dow Jones & Co. Inc. ....................... 60,500
10,000 EMAP plc ................................... 134,396
10,000 Gannett Co. Inc. ........................... 530,000
2,833 Golden Books Family
Entertainment Inc.+ ...................... 1,416
20,000 Harcourt General Inc. ...................... 1,180,000
MARKET
SHARES VALUE
------ ------
15,000 Harte-Hanks Communications Inc. ............ $ 408,750
1,000 Hollinger International Inc. ............... 16,750
4,500 Houghton Mifflin Co. ....................... 176,625
114,000 Independent News & Media plc,
Dublin, New Shares ....................... 417,476
4,000 Journal Register Co.+ ...................... 66,500
9,000 Knight-Ridder Inc. ......................... 457,312
55,000 Lee Enterprises Inc. ....................... 1,588,125
20,000 McClatchy Newspapers Inc., Cl. A ........... 703,750
8,000 McGraw-Hill Companies Inc. ................. 508,500
21,000 Media General Inc., Cl. A .................. 903,000
15,000 Meredith Corp. ............................. 442,500
115,000 Nation Multimedia Group+ ................... 46,332
100,000 New Straits Times Press Berhad ............. 150,000
150,000 Oriental Press Group ....................... 17,122
92,000 Penton Media Inc. .......................... 2,530,000
10,000 Playboy Enterprises Inc., Cl. A+ ........... 133,750
113,400 Post Publishing Co. Ltd.+ .................. 94,063
40,000 PRIMEDIA Inc.+ ............................. 655,000
30,000 Pulitzer Inc. .............................. 1,288,500
65,000 Reader's Digest Association Inc., Cl. B .... 2,051,562
34,452 Singapore Press Holdings Ltd. .............. 516,697
385,000 South China Morning Post Holdings .......... 293,803
300 SPIR Communication ......................... 22,409
15,000 Telegraaf Holdingsmij - CVA ................ 311,055
50,000 Thomas Nelson Inc. ......................... 409,375
65,000 Tribune Co. ................................ 2,835,625
11,300 United News & Media plc, ADR ............... 226,000
800 Wiley (John) & Sons Inc., Cl. B ............ 18,500
4,000 Wolters Kluwer NV .......................... 81,183
22,000 Ziff-Davis Inc. ............................ 178,750
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20,430,728
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ENTERTAINMENT PRODUCTION -- 5.5%
2,522 EMI Group plc .............................. 20,135
20,000 EMI Group plc, ADR ......................... 320,244
7,000 Grammy Entertainment plc+ .................. 14,931
7,000 GTECH Holdings Corp.+ ...................... 115,937
2,000 Harvey Entertainment Co.+ .................. 2,625
700,000 Liberty Media Group, Cl. A+ ................ 12,600,000
1,000 Martha Stewart Living
Omnimedia Inc., Cl. A+ ................... 26,250
45,710 Metro-Goldwyn-Mayer Inc.+ .................. 1,097,040
3,000 Princeton Video Image Inc.+ ................ 15,094
100,000 Shaw Brothers (Hong Kong) Ltd. ............. 78,236
2,000 World Wrestling Federation
Entertainment Inc.+ ...................... 30,375
-----------
14,320,867
-----------
GLOBAL MEDIA AND ENTERTAINMENT -- 10.0%
481 Boston Celtics L.P. ........................ 4,630
60,000 Disney (Walt) Co. .......................... 2,295,000
10
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
GLOBAL MEDIA AND ENTERTAINMENT (CONTINUED)
32,000 Fox Entertainment Group Inc. ............... $ 848,000
27,005 Gemstar-TV Guide International Inc.+ ....... 2,354,498
5,283 Granada Compass plc+ ....................... 49,442
35,000 Grupo Televisa SA, GDR+ .................... 2,019,062
20,000 News Corp. Ltd., ADR ....................... 1,121,250
75,000 Seagram Co. ................................ 4,307,812
40,000 Six Flags Inc. ............................. 620,000
5,500 Sony Corp., ADR ............................ 555,156
37,000 Time Warner Inc. ........................... 2,895,250
155,000 Viacom Inc., Cl. A+ ........................ 9,067,500
----------
26,137,600
-----------
HOTELS AND GAMING -- 2.8%
10,000 Aztar Corp.+ ............................... 153,750
6,000 Churchill Downs Inc. ....................... 155,250
150,000 Gaylord Entertainment Co. .................. 3,581,250
730,000 Hilton Group plc ........................... 2,093,852
5,000 MGM Grand Inc. ............................. 190,937
10,000 Park Place Entertainment Corp.+ ............ 151,250
2,500 Quintel Entertainment Inc.+ ................ 15,156
30,000 Starwood Hotels & Resorts
Worldwide Inc. ........................... 937,500
----------
7,278,945
----------
INFORMATION PUBLISHING -- 0.1%
15,000 Berlitz International Inc.+ ................ 127,500
8,000 Data Broadcasting Corp.+ ................... 25,500
1,000 Dun & Bradstreet Corp. ..................... 34,437
500 Scholastic Corp.+ .......................... 39,781
-----------
227,218
-----------
TOTAL COPYRIGHT/CREATIVITY
COMPANIES ................................. 80,836,663
-----------
DISTRIBUTION COMPANIES -- 50.1%
BROADCASTING -- 11.2%
90,000 Ackerley Group Inc. ........................ 900,000
8,550 American Tower Corp., Cl. A+ ............... 322,228
1,000 Audiofina .................................. 108,362
5,000 BHC Communications Inc., Cl. A+ ............ 786,875
12,149 CanWest Global Communications Corp. ........ 160,212
18,223 CanWest Global Communications Corp.,
Sub-Voting ............................... 238,595
2,000 Carlton Communications plc, ADR ............ 81,500
76,150 Chris-Craft Industries Inc.+ ............... 6,272,856
1,440 Clear Channel Communications Inc.+ ......... 81,360
8,333 Corus Entertainment Inc., Cl. B+ ........... 238,144
9,000 Cox Radio Inc., Cl. A+ ..................... 156,937
MARKET
SHARES VALUE
------ ------
10,000 Crown Media Holdings Inc., Cl. A+ .......... $ 141,875
1,000 Emmis Communications Corp., Cl. A+ ......... 24,750
20,120 Fisher Companies Inc. ...................... 1,448,640
3,000 General Electric Co. ....................... 173,062
92,500 Granite Broadcasting Corp.+ ................ 424,922
15,125 Gray Communications Systems Inc. ........... 171,102
70,000 Gray Communications
Systems Inc., Cl. B ...................... 730,625
7,000 Groupe AB SA, ADR+ ......................... 115,500
5,000 Grupo Radio Centro, SA de CV, ADR .......... 53,125
36,000 Hearst-Argyle Television Inc.+ ............. 720,000
3,000 Infinity Broadcasting Corp.+ ............... 99,000
4,550 LaGardere S.C.A ............................ 275,632
151,000 Liberty Corp. .............................. 5,228,375
4,000 Metropole TV M6 SA ......................... 199,958
3,000 Nippon Television Network .................. 1,724,042
4,650 NRJ Groupe+ ................................ 183,006
5,000 NTN Communications Inc.+ ................... 13,437
67,000 Paxson Communications Corp., Cl. A+ ........ 770,500
500 Radio One Inc.+ ............................ 4,156
1,000 Radio One Inc., Cl. D+ ..................... 7,062
1,500 RTL Group .................................. 164,131
1,525 SAGA Communications Inc., Cl. A ............ 25,162
40,000 Salem Communications Corp., Cl. A+ ......... 507,500
2,000 SBS Broadcasting SA+ ....................... 79,625
5,000 Sinclair Broadcast Group Inc.+ ............. 54,687
43,000 Sistem Televisyen Malaysia Berhad .......... 17,879
1,000 Spanish Broadcasting
System Inc., Cl. A+ ...................... 11,750
50,000 Television Broadcasting Ltd. ............... 300,120
25,000 Television Francaise 1 ..................... 1,433,942
55,000 Tokyo Broadcasting System Inc. ............. 2,214,048
3,000 TV Azteca, SA de C.V.+ ..................... 38,625
12,600 United Television Inc. ..................... 1,852,200
500 Wink Communications Inc.+ .................. 6,000
20,000 Young Broadcasting Inc., Cl. A+ ............ 628,750
-----------
29,190,257
-----------
BUSINESS SERVICES -- 2.5%
15,000 Carlisle Holdings Ltd.+ .................... 119,063
10,000 Cendant Corp.+ ............................. 108,750
500 CheckFree Corp.+ ........................... 20,945
1,000 Convergys Corp.+ ........................... 38,875
8,000 Donnelley (R.H.) Corp. ..................... 169,000
2,000 IMS Health Inc. ............................ 41,500
377,000 Key3Media Group Inc.+ ...................... 4,123,438
100 SYNAVANT Inc.+ ............................. 669
26,100 Vivendi .................................... 1,939,236
-----------
6,561,476
-----------
11
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
CABLE -- 3.7%
6,000 Austar United Communications Ltd.+ ......... $ 13,485
75,000 Cablevision Systems Corp., Cl. A+ .......... 4,973,438
20,000 Charter Communications Inc., Cl. A+ ........ 325,313
5,000 Comcast Corp., Cl. A ....................... 203,438
7,000 Comcast Corp., Cl. A, Special .............. 286,563
25,000 Mediacom Communications Corp.+ ............. 403,125
10,000 Mercom Inc.+ ............................... 120,000
17,517 NTL Inc.+ .................................. 811,256
22,680 Telewest Communications plc+ ............... 44,263
19,090 Telewest Communications plc, ADR+ .......... 372,255
60,000 UnitedGlobalCom Inc., Cl. A+ ............... 1,800,000
10,000 Videotron Groupe ........................... 296,751
-----------
9,649,887
-----------
CONSUMER SERVICES -- 0.2%
20,000 Allied Domecq plc .......................... 99,651
5,000 Department 56 Inc.+ ........................ 65,938
3,000 Hotel Reservations Inc., Cl. A+ ............ 109,875
15,000 Lillian Vernon Corp. ....................... 146,250
-----------
421,714
-----------
ENERGY AND UTILITIES-- 0.3%
50,000 El Paso Electric Co.+ ...................... 688,500
-----------
ENTERTAINMENT DISTRIBUTION-- 1.3%
6,000 AMC Entertainment Inc.+ .................... 10,500
225,000 Blockbuster Inc., Cl. A .................... 1,982,813
60,000 GC Companies Inc.+ ......................... 180,000
4,000 Liberty Digital Inc.+ ...................... 81,000
39,000 Shaw Communications Inc., Cl. B ............ 894,240
11,000 Shaw Communications Inc., Cl. B,
Non-Voting+ .............................. 249,563
-----------
3,398,116
-----------
EQUIPMENT -- 2.4%
35,000 Allen Telecom Inc.+ ........................ 592,813
2,000 Amphenol Corp., Cl. A+ ..................... 113,875
2,000 CommScope Inc.+ ............................ 49,000
1,000 Furukawa Electric Co. Ltd. ................. 27,624
7,700 Hutchison Whampoa Ltd. ..................... 102,214
2,500 L-3 Communications Holdings Inc.+ .......... 141,250
5,000 Lucent Technologies Inc. ................... 152,813
20,000 Nortel Networks Corp. ...................... 1,191,250
125,000 Oak Technology Inc.+ ....................... 3,421,875
3,570 Philips Electronics NV, ADR ................ 151,725
6,000 Scientific-Atlanta Inc. .................... 381,750
2,000 TiVo Inc.+ ................................. 38,750
-----------
6,364,939
-----------
MARKET
SHARES VALUE
------ ------
INTERNATIONAL TELEPHONE -- 6.1%
40,000 BCE Inc. ................................... $ 935,000
500 British Telecommunications plc, ADR ........ 53,531
75,000 Cable & Wireless plc, ADR .................. 3,192,188
27,000 Compania de Telecomunicaciones
de Chile SA, ADR ......................... 469,125
2,000 Deutsche Telekom AG, ADR+ .................. 68,500
10,000 Embratel Participacoes SA, ADR+ ............ 185,000
1,000 France Telecom SA, ADR ..................... 105,250
10,000 GST Telecommunications Inc.+ ............... 340
90 Japan Telecom Co. Ltd. ..................... 2,598,557
500 Magyar Tavkozlesi Rt, ADR .................. 11,781
10 Nippon Telegraph & Telephone Corp. ......... 98,094
20,000 Philippine Long Distance
Telephone Co., ADR ....................... 342,500
7,000 PT Indonesia Satellite, ADR ................ 56,000
4,320 PT Telekomunikasi Indonesia, ADR ........... 27,000
4,000 Rostelecom, ADR ............................ 35,250
1,000 Sonera Group Oyj ........................... 25,414
20,000 Swisscom AG, ADR ........................... 492,500
18,432 Tele Norte Leste Participacoes SA, ADR421,632
3,000 Telecom Argentina Stet France
Telecom SA, ADR .......................... 64,875
1,000 Telecom Corp. of
New Zealand Ltd., ADR .................... 20,000
58,355 Telefonica SA, ADR ......................... 3,468,475
22,000 Telefonos de Mexico SA, Cl. L, ADR ......... 1,170,125
2,400 Telstra Corp. Ltd., ADR .................... 39,000
45,000 TELUS Corp. ................................ 1,211,261
20,000 TELUS Corp., Non-Voting .................... 519,729
10,000 TELUS Corp., Non-Voting, ADR ............... 259,865
-----------
15,870,992
-----------
SATELLITE -- 2.2%
300 Asia Satellite Telecommunications
Holdings Ltd., ADR ....................... 7,500
2,000 British Sky Broadcasting Group, ADR ........ 188,000
28,000 EchoStar Communications
Corp., Cl. A+ ............................ 1,477,000
45,000 General Motors Corp., Cl. H+ ............... 1,673,100
4,000 Globalstar Telecommunications Ltd.+ ........ 34,500
45,000 Liberty Satellite &
Technology Inc., Cl. A+ .................. 478,125
20,000 Lockheed Martin Corp. ...................... 659,200
15,008 Loral Space & Communications Ltd.+ ......... 91,924
26,000 Pegasus Communications Corp.+ .............. 1,256,125
-----------
5,865,474
-----------
TELECOMMUNICATIONS -- 3.7%
4,266 Aliant Inc. ................................ 105,471
3,000 Allegiance Telecom Inc.+ ................... 111,750
12
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
10,000 ALLTEL Corp. ............................... $ 521,875
3,300 Brasil Telecom Participacoes SA, ADR ....... 192,225
10,000 BroadWing Inc.+ ............................ 255,625
2,000 Choice One Communications Inc.+ ............ 24,375
130,000 Citizens Communications Co. ................ 1,746,875
45,750 CoreComm Ltd.+ ............................. 363,141
5,000 Eircom plc ................................. 11,030
9,000 Electric Lightwave Inc., Cl. A+ ............ 76,500
11,000 Global Crossing Ltd.+ ...................... 341,000
3,000 Global Telesystems Group Inc.+ ............. 13,688
1,305 Hellenic Telecommunications
Organization SA .......................... 25,101
1,000 Jazztel plc, ADR+ .......................... 22,500
10,000 Metromedia International Group Inc.+ ....... 37,400
28,646 Qwest Communications
International Inc.+ ...................... 1,376,798
35,000 RCN Corp.+ ................................. 726,250
9,655 Rogers Communications Inc., Cl. B+ ......... 228,761
125,345 Rogers Communications Inc.,
Cl. B, ADR+ .............................. 2,969,110
5,500 Time Warner Telecom Inc., Cl. A+ ........... 265,719
3,000 USN Communications Inc.+ ................... 53
6,000 WorldCom Inc.+ ............................. 182,250
------------
9,597,497
------------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.0%
60,505 AT&T Corp. ................................. 1,777,334
17,000 Sprint Corp.+ .............................. 498,313
3,000 Startec Global Communications Corp.+ ....... 17,813
22,000 Viatel Inc.+ ............................... 225,500
------------
2,518,960
------------
U.S. REGIONAL OPERATORS -- 1.9%
24,434 Commonwealth Telephone
Enterprises Inc.+ ........................ 901,004
24,400 Commonwealth Telephone
Enterprises Inc., Cl. B+ ................. 982,100
5,000 SBC Communications Inc. .................... 250,000
60,000 Verizon Communications ..................... 2,906,250
------------
5,039,354
------------
WIRELESS COMMUNICATIONS -- 13.6%
90,000 AT&T Wireless Group+ ....................... 1,878,750
47,000 CenturyTel Inc. ............................ 1,280,750
22,000 Iridium World Communications Ltd.,
Cl. A+ ................................... 6,435
13,000 Leap Wireless International Inc.+ .......... 813,313
5,000 Libertel NV+ ............................... 60,446
MARKET
SHARES VALUE
------ ------
54,000 Nextel Communications Inc., Cl. A+ ......... $ 2,524,500
100 NTT DoCoMo Inc.+ ........................... 2,868,777
18,000 Price Communications Corp.+ ................ 352,125
6,000 Qualcomm Inc.+ ............................. 427,500
80,000 Rogers Wireless
Communications Inc., Cl. B+ .............. 2,430,000
12,200 Rural Cellular Corp., Cl. A+ ............... 831,125
38,680 SK Telecom Co. Ltd., ADR ................... 991,175
33,000 Sprint Corp. (PCS Group)+ .................. 1,157,063
1,650 Tele Celular Sul Participacoes
SA, ADR .................................. 49,500
5,500 Tele Centro Oeste Celular Participacoes
SA, ADR .................................. 58,438
330 Tele Leste Celular Participacoes
SA, ADR .................................. 13,303
825 Tele Nordeste Celular Participacoes
SA, ADR .................................. 38,775
330 Tele Norte Celular Participacoes
SA, ADR .................................. 13,200
380,000 Telecom Italia Mobile SpA .................. 3,071,547
825 Telemig Celular Participacoes
SA, ADR .................................. 43,673
85,000 Telephone & Data Systems Inc. .............. 9,409,500
6,600 Telesp Celular Participacoes SA, ADR ....... 217,388
25,000 Teligent Inc., Cl. A+ ...................... 325,000
18,000 Total Access Communications plc+ ........... 60,480
18,000 U.S. Cellular Corp.+ ....................... 1,260,000
3,500 Vimpel-Communications, ADR+ ................ 67,594
18,000 Vodafone Group plc, ADR .................... 666,000
38,025 VoiceStream Wireless Corp.+ ................ 4,413,277
2,000 Western Wireless Corp., Cl. A+ ............. 71,250
20,000 Winstar Communications Inc.+ ............... 310,000
------------
35,710,884
------------
TOTAL DISTRIBUTION
COMPANIES ................................ 130,878,050
------------
TOTAL COMMON STOCKS ........................ 211,714,713
------------
PREFERRED STOCKS -- 1.9%
BUSINESS SERVICES -- 0.0%
6,000 Cendant Corp.,
1.30% Cv. Pfd. ........................... 93,750
------------
GLOBAL MEDIA AND ENTERTAINMENT -- 1.0%
55,000 News Corp. Ltd., Pfd., ADR ................. 2,578,125
------------
U.S. REGIONAL OPERATORS -- 0.9%
40,000 Citizens Communications Co.,
5.00% Cv. Pfd. ........................... 2,170,000
------------
TOTAL PREFERRED STOCKS ..................... 4,841,875
------------
13
<PAGE>
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
------ ------
CORPORATE BONDS -- 0.2%
BUSINESS SERVICES -- 0.1%
$300,000 Trans-Lux Corp., Sub. Deb. Cv.
7.50%, 12/01/06 ............................. $ 234,750
------------
COMPUTER SOFTWARE AND SERVICES -- 0.0%
50,000 BBN Corp., Sub. Deb. Cv.
6.00%, 04/01/12(b) .......................... 48,375
------------
DIVERSIFIED PUBLISHERS -- 0.0%
58,000 Golden Books Family
Entertainment Inc., PIK
10.75%, 12/31/04 ............................ 23,418
------------
GLOBAL MEDIA AND ENTERTAINMENT -- 0.0%
20,000 Boston Celtics L.P., Sub. Deb. Cv.
6.00%, 06/30/38 ............................. 11,413
------------
HOTELS AND GAMING -- 0.1%
300,000 Hilton Hotels Corp., Sub. Deb. Cv.
5.00%, 05/15/06 ............................. 253,125
------------
TOTAL CORPORATE BONDS ......................... 571,081
------------
SHARES
-------
RIGHTS -- 0.0%
WIRELESS COMMUNICATIONS -- 0.0%
660 Telesp Celular Participacoes
SA, ADR, Rights ............................. 0
------------
WARRANTS -- 0.0%
ADVERTISING -- 0.0%
200 Havas Advertising SA, Warrants
expires 05/13/01 ............................ 2,330
------------
PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT OBLIGATIONS -- 17.8%
$46,944,000 U.S. Treasury Bills,
6.05% to 6.26%++,
due 10/05/00 to 12/28/00 .................... 46,592,021
------------
TOTAL INVESTMENTS -- 100.9%
(Cost $176,896,635) ........................................ $263,722,020
============
OTHER ASSETS, LIABILITIES AND
LIQUIDATION VALUE OF CUMULATIVE
PREFERRED STOCK -- (12.7%) ................................. (33,222,777)
------------
MARKET
VALUE
------
NET ASSETS -- COMMON STOCK -- 88.2%
(14,377,753 common shares outstanding) ..................... $230,499,243
------------
NET ASSETS -- PREFERRED STOCK -- 11.8%
(1,235,700 preferred shares outstanding) ................... 30,892,500
------------
TOTAL NET ASSETS -- 100.0% ................................... $261,391,743
============
NET ASSET VALUE PER COMMON SHARE
($230,499,243 (DIVIDE) 14,377,753 shares outstanding) ..... $16.03
======
PRINCIPAL SETTLEMENT UNREALIZED
AMOUNT DATE APPRECIATION
--------- ---------- ------------
FORWARD FOREIGN EXCHANGE CONTRACTS
6,099,988 (c) Deliver Hong Kong Dollars
in exchange for
USD 783,435 ............. 08/03/01 $2,564
======
--------------------
(a) For Federal tax purposes:
Aggregate cost ....................................... $176,896,635
============
Gross unrealized appreciation ........................ $ 96,519,645
Gross unrealized depreciation ........................ (9,694,260)
------------
Net unrealized appreciation .......................... $ 86,825,385
============
(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 ............... 76.4% $201,498,044
Europe ...................... 7.7 20,270,600
Asia/Pacific Rim ............ 7.7 20,203,043
Canada ...................... 6.1 16,235,764
Latin America ............... 2.1 5,514,569
----- ------------
Total Investments ........... 100.0% $263,722,020
===== ============
14
<PAGE>
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLAN
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Multimedia
Trust") to automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Multimedia Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Multimedia Trust to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Multimedia Trust. Plan participants may send
their stock certificates to State Street Bank and Trust Company to be held in
their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:
The Gabelli Global Multimedia Trust Inc.
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200
Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street Bank and Trust
Company at 1 (800) 336-6983.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at State Street Bank
and Trust Company must do so in writing or by telephone. Please submit your
request to the above mentioned address or telephone number. Include in your
request your name, address and account number. The cost to liquidate shares is
$2.50 per transaction as well as the brokerage commission incurred. Brokerage
charges are expected to be less than the usual brokerage charge for such
transactions.
If your shares are held in the name of a broker, bank or nominee, you should
contact such institution. If such institution is not participating in the Plan,
your account will be credited with a cash dividend. In order to participate in
the Plan through such institution, it may be necessary for you to have your
shares taken out of "street name" and re-registered in your own name. Once
registered in your own name your dividends will be automatically reinvested.
Certain brokers participate in the Plan. Shareholders holding shares in "street
name" at such participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the Plan
in lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Multimedia Trust's Common Stock is equal to or
exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Multimedia Trust's Common Stock. The
valuation date is the dividend or distribution payment date or, if that date is
not a 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.
15
<PAGE>
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 GLOBALMULTIMEDIA 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 Latartara
VICE PRESIDENT
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: 14,377,753 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
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
GBFMT 09/00
