UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08476
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The Gabelli Global Multimedia Trust Inc.
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[LOGO OMITTED]
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
Semi-Annual Report
June 30, 2005
TO OUR SHAREHOLDERS,
During the second quarter of 2005, the Gabelli Global Multimedia Trust's
(the "Trust") total return rose 0.1% on a net asset value ("NAV") basis, while
the Morgan Stanley Capital International ("MSCI") World Free Index and the
Lipper Global Multi-Cap Growth Fund Average rose 0.4% and 1.3%, respectively.
For the six-month period ended June 30, 2005, the Trust's NAV total return
declined 3.1% versus declines of 0.7% and 0.3% for the MSCI World Free Index and
Lipper Global Multi-Cap Growth Fund Average, respectively, over the same period.
The Trust's market price on June 30, 2005 was $10.10, which equates to a 13.30%
discount to its NAV of $11.65. The Trust's market price rose 1.6% during the
second quarter but declined 3.2% during the six-month period ended June 30,
2005.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2005.
COMPARATIVE RESULTS
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AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2005 (A)
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Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year (11/15/94)
------- ------- ------ ------ ------ ------- ----------
GABELLI GL. MULTIMEDIA TRUST NAV RETURN (B) .......... 0.09% (3.12)% 9.77% 13.36% (6.43)% 11.49% 11.43%
GABELLI GL. MULTIMEDIA TRUST INVESTMENT RETURN (C) ... 1.58 (3.18) 12.89 13.89 (1.23) 11.16 10.53
MSCI World Free Index ................................ 0.41 (0.70) 10.05 10.04 (2.08) 7.05 7.63(d)
Nasdaq Composite Index ............................... 2.89 (5.45) 0.45 12.02 (12.31) 8.22 9.75
Lipper Global Multi-Cap Growth Fund Average .......... 1.34 (0.29) 10.62 9.36 (8.58) 8.46 9.23
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT
WILL FLUCTUATE. WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE DATA PRESENTED. VISIT WWW.GABELLI.COM FOR
PERFORMANCE INFORMATION AS OF THE MOST RECENT MONTH END. INVESTORS
SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND CHARGES AND
EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. PERFORMANCE FIGURES
FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) WORLD FREE AND NASDAQ COMPOSITE
INDICES ARE UNMANAGED INDICATORS OF STOCK MARKET PERFORMANCE, WHILE
THE LIPPER AVERAGE REFLECTS THE AVERAGE PERFORMANCE OF OPEN-END
MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR CATEGORY. DIVIDENDS ARE
CONSIDERED REINVESTED EXCEPT FOR THE NASDAQ COMPOSITE INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET
ASSET VALUE ("NAV"), REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE
EX-DIVIDEND DATE, ADJUSTMENTS FOR RIGHTS OFFERINGS, AND ARE NET OF
EXPENSES. SINCE INCEPTION RETURN BASED ON AN INITIAL NET ASSET VALUE
OF $7.50.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING
MARKET VALUES ON THE NEW YORK STOCK EXCHANGE, REINVESTMENT OF
DISTRIBUTIONS AND ADJUSTMENTS FOR RIGHTS OFFERINGS. SINCE INCEPTION
RETURN BASED ON INITIAL OFFERING PRICE OF $7.50.
(d) FROM NOVEMBER 30, 1994, THE DATE CLOSEST TO THE TRUST'S INCEPTION
FOR WHICH DATA IS AVAILABLE.
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We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance
regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done
this to ensure that the content of the portfolio manager's commentary is
unrestricted. The financial statements and investment portfolio are mailed
separately. Both the commentary and the financial statements, including
the portfolio of investments, will be available on our website at
www.gabelli.com/funds.
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THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total
investments:
Entertainment ....................... 17.9%
Publishing .......................... 14.4%
Hotels and Gaming ................... 10.3%
Broadcasting ........................ 10.0%
Cable ............................... 8.8%
Telecommunications: Regional ........ 8.4%
Telecommunications: National ........ 4.9%
Computer Software and Services ...... 4.7%
U.S. Treasury Bills ................. 4.2%
Wireless Communications ............. 3.8%
Telecommunications: Long Distance ... 2.4%
Equipment ........................... 2.1%
Satellite ........................... 1.5%
Electronics ......................... 1.4%
Diversified Industrial .............. 1.3%
Consumer Services ................... 1.3%
Business Services ................... 1.1%
Business Services: Advertising ...... 0.5%
Energy and Utilities ................ 0.3%
Financial Services .................. 0.3%
Consumer Products ................... 0.2%
Food and Beverage ................... 0.2%
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100.0%
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THE GABELLI GLOBAL MULTIMEDIA TRUST INC. (THE "TRUST") FILES A COMPLETE SCHEDULE
OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FIRST AND THIRD QUARTERS OF EACH
FISCAL YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED MARCH
31, 2005. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR BY
CALLING THE TRUST AT 800-GABELLI (800-422-3554). THE TRUST'S FORM N-Q IS
AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND
COPIED AT THE COMMISSION'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION
ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING
1-800-SEC-0330.
PROXY VOTING
The Trust files Form N-PX with its complete proxy voting record for the 12
months ended June 30th, no later than August 31st of each year. A description of
the Trust's proxy voting policies and procedures are available without charge,
upon request, (i) by calling 800-GABELLI (800-422-3554); (ii) by writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
SHAREHOLDER MEETING -- MAY 9, 2005 -- FINAL RESULTS
The Annual Meeting of Shareholders was held on May 9, 2005 at the Hyatt
Regency in Old Greenwich, Connecticut. At that meeting, common and preferred
shareholders voting together as a single class elected Frank J. Fahrenkopf, Jr.,
Werner J. Roeder, MD and Salvatore J. Zizza as Directors of the Trust. There
were 12,978,705 votes, 12,954,766 votes and 12,985,336 votes cast in favor of
each Director and 511,504 votes, 505,443 votes and 474,873 votes withheld for
each Director, respectively.
Mario J. Gabelli, Thomas E. Bratter, Anthony J. Colavita, James P. Conn,
Karl Otto Pohl and Anthony R. Pustorino continue to serve in their capacities as
Directors of the Trust.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS -- 94.7%
COPYRIGHT/CREATIVITY COMPANIES -- 45.2%
BUSINESS SERVICES: ADVERTISING -- 0.5%
5,000 Donnelley (R.H.) Corp.+ ........... $ 60,933 $ 309,900
20,000 Harte-Hanks Inc. .................. 147,611 594,600
4,200 Havas SA .......................... 20,733 22,974
2,000 Publicis Groupe ................... 13,971 59,128
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243,248 986,602
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COMPUTER SOFTWARE AND SERVICES -- 4.7%
36,500 Activision Inc.+ .................. 515,276 602,980
5,000 America Online Latin
America Inc., Cl. A+ ............ 2,150 250
60,000 Ask Jeeves Inc.+ .................. 1,739,230 1,811,400
3,000 Atlus Co. Ltd. .................... 17,662 20,476
9,473 CNET Networks Inc.+ ............... 102,468 111,213
3,230 EarthLink Inc.+ ................... 45,250 27,972
10,200 Electronic Arts Inc.+ ............. 506,068 577,422
1,000 EMC Corp.+ ........................ 6,600 13,710
100 Google Inc., Cl. A+ ............... 8,860 29,415
10,000 Jupitermedia Corp.+ ............... 12,067 171,300
1,000 Maxtor Corp.+ ..................... 9,243 5,200
60,000 Microsoft Corp. ................... 1,352,544 1,490,400
13,800 Mobius Management Systems Inc.+ ... 88,365 91,080
1,000 NAVTEQ Corp.+ ..................... 37,295 37,180
2,000 Pixar+ ............................ 39,153 100,100
140,000 Yahoo! Inc.+ ...................... 3,817,112 4,851,000
------------ ------------
8,299,343 9,941,098
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CONSUMER PRODUCTS -- 0.2%
6,000 Department 56 Inc.+ ............... 65,655 61,500
400 eBay Inc.+ ........................ 6,163 13,204
18,000 Mattel Inc. ....................... 205,133 329,400
------------ ------------
276,951 404,104
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ELECTRONICS -- 1.4%
5,000 Freescale Semiconductor Inc.,
Cl. B+ .......................... 54,885 105,900
5,000 Intel Corp. ....................... 154,345 130,300
3,570 Royal Philips Electronics NV,
ADR ............................. 29,368 89,928
10,000 Samsung Electronics Co. Ltd.,
GDR (b) ......................... 1,805,500 2,389,937
8,000 Sony Corp., ADR ................... 228,628 275,520
6,000 Zoran Corp.+ ...................... 93,171 79,740
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2,365,897 3,071,325
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ENTERTAINMENT -- 13.4%
3,600 Aruze Corp. ....................... 97,455 76,116
60,000 Canal Plus, ADR+ .................. 10,818 97,500
MARKET
SHARES COST VALUE
----------- ------------ ------------
1,161 Corporacion Interamericana
de Entretenimiento SA de CV,
Cl. B+ .......................... $ 2,441 $ 2,312
25,000 Crown Media Holdings Inc.,
Cl. A+ .......................... 146,640 235,750
31,622 EMI Group plc ..................... 108,730 143,909
30,000 EMI Group plc, ADR ................ 394,397 273,168
250,000 Gemstar-TV Guide International
Inc.+ ........................... 1,722,197 897,500
70,000 GMM Grammy Public Co. Ltd. ........ 55,457 21,343
481 Henley LP+ (c) .................... 0 1,443
77,843 Liberty Global Inc., Cl. A+ ....... 1,899,677 3,632,955
722,715 Liberty Media Corp., Cl. A+ ....... 2,239,611 7,364,466
100,000 Shaw Brothers (Hong Kong)
Ltd. ............................ 145,929 124,823
90,000 Six Flags Inc.+ ................... 539,353 418,500
70,000 SMG plc ........................... 205,497 119,775
85,000 The Walt Disney Co. ............... 1,972,305 2,140,300
200,000 Time Warner Inc.+ ................. 3,192,596 3,342,000
140,000 Viacom Inc., Cl. A ................ 2,104,965 4,510,800
166,000 Vivendi Universal SA, ADR ......... 5,114,673 5,200,780
4,000 World Wrestling Entertainment
Inc. ............................ 47,930 45,680
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20,000,671 28,649,120
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FINANCIAL SERVICES -- 0.3%
10,000 H&R Block Inc. .................... 258,838 583,500
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HOTELS AND GAMING -- 10.3%
10,000 Argosy Gaming Co.+ ................ 461,905 466,100
8,000 Aztar Corp.+ ...................... 40,900 274,000
13,000 Churchill Downs Inc. .............. 409,690 552,370
165,000 Gaylord Entertainment Co.+ ........ 4,205,403 7,670,850
5,000 Greek Organization of Football
Prognostics SA .................. 54,100 144,734
32,000 GTECH Holdings Corp. .............. 150,844 935,680
5,528 Harrah's Entertainment Inc. ....... 217,460 398,367
850,000 Hilton Group plc .................. 3,416,267 4,359,423
70,000 International Game Technology ..... 2,086,188 1,970,500
10,000 Kerzner International Ltd.+ ....... 487,664 569,500
5,000 Las Vegas Sands Corp.+ ............ 210,000 178,750
55,000 Magna Entertainment Corp., Cl.
A+ ............................. 358,030 310,200
78,000 MGM Mirage+ ....................... 1,210,436 3,087,240
36,900 Pinnacle Entertainment Inc.+ ...... 653,967 721,764
6,000 Starwood Hotels & Resorts
Worldwide Inc. .................. 185,708 351,420
------------ ------------
14,148,562 21,990,898
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See accompanying notes to financial statements.
3
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
PUBLISHING -- 14.4%
20,000 Arnoldo Mondadori Editore SpA ..... $ 63,827 $ 190,599
98,000 Belo Corp., Cl. A ................. 1,532,090 2,349,060
1,000 Dow Jones & Co. Inc. .............. 46,722 35,450
20,000 EMAP plc .......................... 207,970 278,788
15,000 Gannett Co. Inc. .................. 883,908 1,066,950
2,833 Golden Books Family
Entertainment Inc.+ ............. 0 9
2,000 Hollinger International Inc.,
Cl. A ........................... 26,475 20,020
144,400 Independent News & Media plc ...... 193,226 445,603
12,000 Journal Register Co.+ ............. 193,975 210,120
15,000 Knight-Ridder Inc. ................ 659,380 920,100
50,000 Lee Enterprises Inc. .............. 1,107,924 2,004,500
19,000 McClatchy Co., Cl. A .............. 517,138 1,243,360
40,000 McGraw-Hill Companies Inc. ........ 1,243,770 1,770,000
23,000 Media General Inc., Cl. A ......... 1,038,401 1,489,480
27,000 Meredith Corp. .................... 636,668 1,324,620
100,000 Nation Multimedia Group plc ....... 84,677 28,796
100,000 New Straits Times Press Berhad+ ... 296,714 81,053
326,414 News Corp., Cl. A ................. 4,069,172 5,281,379
40,000 News Corp., Cl. B ................. 396,739 674,400
150,000 Oriental Press Group Ltd. ......... 46,315 44,396
100,000 Penton Media Inc.+ ................ 86,720 35,000
10,000 Playboy Enterprises Inc., Cl. A+ .. 97,125 114,850
974,000 Post Publishing plc ............... 47,100 127,274
200,000 PRIMEDIA Inc.+ .................... 980,335 810,000
90,000 Reader's Digest Association Inc. .. 1,506,323 1,485,000
1,000 Scholastic Corp.+ ................. 16,500 38,550
251,520 SCMP Group Ltd. ................... 181,457 110,046
64,000 Scripps (E.W.) Co., Cl. A ......... 2,887,044 3,123,200
252,671 Singapore Press Holdings Ltd. ..... 742,032 644,473
300 Spir Communication ................ 23,329 64,259
15,000 Telegraaf Media Groep NV .......... 285,271 330,372
45,000 Thomas Nelson Inc. ................ 533,873 979,200
84,000 Tribune Co. ....................... 3,528,623 2,955,120
12,353 United Business Media plc ......... 123,285 109,668
10,000 VNU NV ............................ 294,141 279,183
800 Wiley (John) & Sons Inc., Cl. B ... 5,693 31,920
4,000 Wolters Kluwer NV - CVA ........... 90,625 76,579
------------ ------------
24,674,567 30,773,377
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TOTAL COPYRIGHT/CREATIVITY
COMPANIES ....................... 70,268,077 96,400,024
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MARKET
SHARES COST VALUE
----------- ------------ ------------
DISTRIBUTION COMPANIES -- 49.5%
BROADCASTING -- 9.4%
1,560 Asahi Broadcasting Corp. .......... $ 62,912 $ 137,420
18,000 CanWest Global Communications
Corp.+ .......................... 156,992 199,800
18,000 CanWest Global Communications
Corp., Sub-Voting+ ............. 92,011 200,098
6,400 Chubu-Nippon Broadcasting Co.,
Ltd. ............................ 46,375 78,420
5,000 Clear Channel Communications
Inc. ............................ 216,657 154,650
20,000 Cogeco Inc. ....................... 388,830 438,459
8,333 Corus Entertainment Inc., Cl. B ... 33,927 212,882
9,000 Cox Radio Inc., Cl. A+ ............ 55,500 141,750
166 Emmis Communications Corp.,
Cl. A+ .......................... 1,741 2,933
30,020 Fisher Communications Inc.+ ....... 1,574,095 1,419,646
228 Fuji Television Network Inc. ...... 526,693 441,980
60,000 Granite Broadcasting Corp.+ ....... 190,522 13,200
95,000 Gray Television Inc. .............. 1,229,101 1,145,700
10,000 Gray Television Inc., Cl. A ....... 121,313 113,000
10,000 Grupo Radio Centro, SA de CV,
ADR+ ............................ 46,871 72,300
30,000 Hearst-Argyle Television Inc. ..... 302,404 735,000
4,550 Lagardere SCA ..................... 100,163 337,255
151,000 Liberty Corp. ..................... 6,950,356 5,558,310
52,000 Lin TV Corp., Cl. A+ .............. 1,040,310 722,280
5,140 Media Prima Berhad+ ............... 0 2,232
4,000 Metropole Television SA ........... 35,208 101,653
1,200 Nippon Broadcasting System Inc. ... 29,276 67,947
7,000 Nippon Television Network Corp. ... 1,078,903 952,394
4,650 NRJ Group ......................... 22,694 104,554
1,000 NTN Communications Inc.+ .......... 862 1,880
80,000 Paxson Communications Corp.+ ...... 482,626 48,000
500 Radio One Inc., Cl. A+ ............ 5,510 6,365
1,000 Radio One Inc., Cl. D+ ............ 11,428 12,770
1,500 RTL Group (Brussels) .............. 76,363 106,191
3,500 RTL Group (New York) .............. 113,838 247,991
1,906 SAGA Communications Inc., Cl. A+ .. 9,709 26,684
79,000 Salem Communications Corp.,
Cl. A+ .......................... 1,276,370 1,567,360
2,000 SBS Broadcasting SA+ .............. 42,022 94,260
80,000 Sinclair Broadcast Group Inc.,
Cl. A ........................... 824,936 726,400
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
BROADCASTING (CONTINUED)
25,000 Societe Television Francaise 1 .... $ 249,649 $ 664,980
5,000 Spanish Broadcasting System
Inc., Cl. A+ .................... 43,950 49,950
50,000 Television Broadcasts Ltd. ........ 187,673 282,460
110,000 Tokyo Broadcasting System Inc. .... 1,662,133 1,820,936
258 TV Asahi Corp. .................... 434,628 553,638
15,000 TV Azteca, SA de CV, ADR .......... 67,797 114,600
26,000 Ulster Television plc ............. 105,595 218,247
55,000 Young Broadcasting Inc., Cl. A+ ... 1,466,095 228,250
------------ ------------
21,364,038 20,124,825
------------ ------------
BUSINESS SERVICES -- 0.6%
15,000 Carlisle Holdings Ltd. ............ 78,754 93,750
40,000 Cendant Corp. ..................... 433,521 894,800
500 CheckFree Corp.+ .................. 5,520 17,030
1,000 Convergys Corp.+ .................. 17,738 14,220
500 Dun and Bradstreet Corp.+ ......... 6,320 30,825
8,000 Interactive Data Corp. ............ 52,250 166,240
2,000 Moody's Corp. ..................... 20,012 89,920
2,500 Traffix Inc. ...................... 12,500 12,550
------------ ------------
626,615 1,319,335
------------ ------------
CABLE -- 8.8%
16,578 Austar United
Communications Ltd.+ ............ 22,427 12,367
200,000 Cablevision Systems Corp.,
Cl. A+ .......................... 4,048,601 6,440,000
40,000 Charter Communications Inc.,
Cl. A+ .......................... 57,550 47,200
40,400 Cogeco Cable Inc. ................. 828,167 893,601
35,000 Comcast Corp., Cl. A+ ............. 1,005,485 1,074,500
7,000 Comcast Corp., Cl. A, Special+ .... 53,073 209,650
15,000 Mediacom Communications Corp.,
Cl. A+ .......................... 126,904 103,050
260,345 Rogers Communications Inc.,
Cl. B, New York ................. 2,120,383 8,560,144
9,655 Rogers Communications Inc.,
Cl. B, Toronto .................. 148,206 316,790
11,000 Shaw Communications Inc.,Cl. B,
New York ........................ 103,451 228,470
39,000 Shaw Communications Inc., Cl. B,
Toronto ......................... 105,571 811,704
28 Telewest Global Inc.+ ............. 37,282 638
------------ ------------
8,657,100 18,698,114
------------ ------------
MARKET
SHARES COST VALUE
----------- ------------ ------------
CONSUMER SERVICES -- 1.3%
4,000 Bowlin Travel Centers Inc.+ ....... $ 3,022 $ 7,500
112,400 IAC/InterActiveCorp+ .............. 2,658,200 2,703,220
2,000 Martha Stewart Living Omnimedia
Inc., Cl. A+ .................... 16,500 58,360
4,000 TiVo Inc.+ ........................ 27,943 26,720
------------ ------------
2,705,665 2,795,800
------------ ------------
DIVERSIFIED INDUSTRIAL -- 1.3%
42,000 Bouygues SA ....................... 1,074,060 1,741,317
30,000 General Electric Co. .............. 945,500 1,039,500
7,700 Hutchison Whampoa Ltd. ............ 71,267 69,608
7,908 Malaysian Resources Corp.
Berhad+ ......................... 41,566 1,010
------------ ------------
2,132,393 2,851,435
------------ ------------
ENERGY AND UTILITIES -- 0.3%
30,000 El Paso Electric Co.+ ............. 241,314 613,500
------------ ------------
ENTERTAINMENT -- 4.5%
4,000 Blockbuster Inc., Cl. A ........... 41,950 36,480
3,150 British Sky Broadcasting Group
plc, ADR ........................ 56,080 118,251
1,000 DreamWorks Animation SKG Inc.,
Cl. A+ .......................... 28,000 26,200
100,000 GC Companies Inc.+ ................ 241,092 86,000
147,000 Grupo Televisa SA, ADR ............ 5,031,000 9,127,230
15,000 Regal Entertainment Group, Cl. A .. 207,235 283,200
------------ ------------
5,605,357 9,677,361
------------ ------------
EQUIPMENT -- 2.1%
4,000 Agere Systems Inc.+ ............... 102,129 48,000
11,450 American Tower Corp., Cl. A+ ...... 134,266 240,679
1,000 Amphenol Corp., Cl. A ............. 7,794 40,170
30,000 Andrew Corp.+ ..................... 121,405 382,800
416 Avaya Inc.+ ....................... 9,761 3,461
2,000 CommScope Inc.+ ................... 29,407 34,820
90,000 Corning Inc.+ ..................... 825,299 1,495,800
3,000 Furukawa Electric Co. Ltd.+ ....... 22,588 11,631
1,500 L-3 Communications Holdings Inc. .. 16,500 114,870
80,000 Lucent Technologies Inc.+ ......... 486,490 232,800
60,000 Motorola Inc. ..................... 672,385 1,095,600
30,000 Nortel Networks Corp.+ ............ 140,250 78,300
12,000 QUALCOMM Inc. ..................... 29,959 396,120
6,000 Scientific-Atlanta Inc. ........... 50,804 199,620
40,000 Sycamore Networks Inc.+ ........... 136,260 138,000
200 Trestle Holdings Inc.+ ............ 2,500 250
------------ ------------
2,787,797 4,512,921
------------ ------------
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
FOOD AND BEVERAGE -- 0.2%
30,000 Allied Domecq plc ................. $ 183,988 $ 362,819
5,282 Compass Group plc ................. 37,648 22,192
------------ ------------
221,636 385,011
------------ ------------
SATELLITE -- 1.5%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR ............. 5,693 5,283
80,000 DIRECTV Group Inc.+ ............... 1,347,414 1,240,000
40,000 EchoStar Communications Corp.,
Cl. A .......................... 469,187 1,206,000
8,000 Lockheed Martin Corp. ............. 222,900 518,960
3,000 Loral Space &
Communications Ltd.+ ........... 510 870
27,200 Pegasus Communications Corp.,
Cl. A+ ......................... 196,534 106,080
6,000 PT Indosat Tbk, ADR ............... 58,079 171,360
30 SKY Perfect Communications Inc. ... 15,471 22,613
------------ ------------
2,315,788 3,271,166
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 2.4%
30,000 AT&T Corp. ........................ 746,835 571,200
1,000 Embratel Participacoes SA, ADR+ ... 4,150 10,540
35,000 Philippine Long Distance
Telephone Co., ADR ............. 597,989 1,016,750
65,000 Sprint Corp. ...................... 1,136,075 1,630,850
1,000 Startec Global
Communications Corp.+ .......... 4,646 2
1,666 Talk America Holdings Inc.+ ....... 2,529 16,677
605,500 Telecom Italia SpA ................ 1,680,518 1,890,493
------------ ------------
4,172,742 5,136,512
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 4.9%
9,000 BT Group plc, ADR ................. 375,870 374,400
5,000 China Telecom Corp. Ltd., ADR ..... 126,250 178,000
5,000 China Unicom Ltd., ADR ............ 38,450 41,900
40,000 Compania de Telecomunicaciones de
Chile SA, ADR .................. 665,851 406,800
162,000 Deutsche Telekom AG, ADR .......... 2,279,995 2,984,040
50,000 Elisa Oyj, Cl. A .................. 527,900 782,971
3,000 France Telecom SA, ADR ............ 48,120 87,420
3,305 Hellenic Telecommunications
Organization SA+ ............... 39,578 64,153
500 Magyar Telekom, ADR ............... 9,650 10,700
MARKET
SHARES COST VALUE
----------- ------------ ------------
20 Nippon Telegraph & Telephone
Corp. .......................... $ 123,433 $ 85,655
4,320 PT Telekomunikasi Indonesia, ADR .. 18,513 90,072
6,000 Rostelecom, ADR ................... 41,408 72,300
45,000 Swisscom AG, ADR .................. 1,217,835 1,467,900
2,000 Telecom Corp. of New Zealand
Ltd., ADR ...................... 31,000 67,180
57,200 Telefonica SA, ADR ................ 1,349,134 2,797,080
38,000 Telefonos de Mexico SA de CV,
Cl. L, ADR ..................... 177,884 717,820
18,172 TeliaSonera AB .................... 51,070 86,767
2,400 Telstra Corp. Ltd., ADR ........... 30,324 46,440
------------ ------------
7,152,265 10,361,598
------------ ------------
TELECOMMUNICATIONS: REGIONAL -- 8.4%
4,266 Aliant Inc. ....................... 39,187 92,966
7,000 ALLTEL Corp. ...................... 372,121 435,960
9,557 ATX Communications Inc.+ .......... 24,550 109
38,000 BCE Inc. .......................... 807,621 899,840
4,000 Brasil Telecom Participacoes
SA, ADR ........................ 231,475 144,400
45,000 CenturyTel Inc. ................... 1,384,677 1,558,350
2,000 Choice One Communications Inc.+ ... 700 0
110,000 Cincinnati Bell Inc.+ ............. 860,389 473,000
140,000 Citizens Communications Co. ....... 1,635,378 1,881,600
50,000 Commonwealth Telephone
Enterprises Inc. ............... 1,136,673 2,095,500
5,000 MCI Inc. .......................... 129,930 128,550
3,000 Metromedia InternationalGroup
Inc.+ .......................... 345 3,960
345,000 Qwest Communications
International Inc.+ ............ 1,860,549 1,279,950
6,000 SBC Communications Inc. ........... 145,321 142,500
18,432 Tele Norte Leste Participacoes
SA, ADR ........................ 252,380 306,893
10,000 Telecom Argentina SA, Cl. B,
ADR+ ........................... 26,440 119,400
68,000 Telephone & Data Systems Inc. ..... 2,114,041 2,775,080
68,000 Telephone & Data Systems Inc.,
Special ........................ 2,722,150 2,607,120
45,000 TELUS Corp. ....................... 810,821 1,581,538
4,000 Time Warner Telecom Inc., Cl. A+ .. 25,000 23,680
40,000 Verizon Communications Inc. ....... 1,491,890 1,382,000
------------ ------------
16,071,638 17,932,396
------------ ------------
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
MARKET
SHARES COST VALUE
----------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
WIRELESS COMMUNICATIONS -- 3.8%
34,000 America Movil SA de CV,
Cl. L, ADR ..................... $ 531,002 $ 2,026,740
102 Hutchison Telecommunications
International Ltd.+ ............ 79 101
240,000 Jasmine International Public Co.
Ltd.+ (c) ...................... 5,040 3,020
500 NTT DoCoMo Inc. ................... 762,806 739,338
296,000 O2 plc+ ........................... 264,821 722,591
31,500 Price Communications Corp.+ ....... 293,906 544,950
10,800 Rural Cellular Corp., Cl. A+ ...... 22,788 56,700
37,000 SK Telecom Co. Ltd., ADR .......... 828,800 754,800
2,449 Tele Centro Oeste Celular
Participacoes SA, ADR .......... 7,341 24,661
190 Tele Leste Celular
Participacoes SA, ADR+ ......... 5,082 1,511
330 Tele Norte Celular Participacoes
SA, ADR+ ....................... 5,098 2,096
825 Telemig Celular Participacoes SA,
ADR ............................ 23,843 26,936
8,913 Telesp Celular Participacoes SA,
ADR+ ........................... 221,768 38,059
3,178 Tim Participacoes SA, ADR ......... 38,554 50,212
15,000 Total Access Communication plc+ ... 66,339 48,000
30,000 United States Cellular Corp.+ ..... 1,127,335 1,498,200
18,000 Vimpel-Communications, ADR+ ....... 120,775 612,540
12,650 Vodafone Group plc, ADR ........... 203,637 307,648
15,000 Western Wireless Corp., Cl. A+ .... 46,710 634,500
------------ ------------
4,575,724 8,092,603
------------ ------------
TOTAL DISTRIBUTION COMPANIES ...... 78,630,072 105,772,577
------------ ------------
TOTAL COMMON STOCKS ............... 148,898,149 202,172,601
------------ ------------
PREFERRED STOCKS -- 0.7%
BROADCASTING -- 0.6%
1,063 Granite Broadcasting Corp.,
12.750% Pfd.+ (c) .............. 439,683 324,215
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (b)(c)(d) ............... 1,000,000 1,020,000
------------ ------------
1,439,683 1,344,215
------------ ------------
MARKET
SHARES COST VALUE
----------- ------------ ------------
BUSINESS SERVICES -- 0.1%
11,241 Interep National Radio Sales
Inc., 4.000% Cv. Pfd., Ser.
A+ (b)(c)(d) ................... $ 1,081,573 $ 250,144
------------ ------------
TOTAL PREFERRED STOCKS ............ 2,521,256 1,594,359
------------ ------------
RIGHTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad, expire
07/18/08, Zero Coupon, + ....... 1,353 1,332
------------ ------------
WARRANTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad, expire
07/31/08+ ...................... 135 730
------------ ------------
BUSINESS SERVICES -- 0.0%
62,500 Interep National Radio Sales Inc.,
expire 05/06/07+ (b)(d) ........ 0 0
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.0%
541 Lucent Technologies Inc., expire
12/10/07+ ...................... 898 417
------------ ------------
PUBLISHING -- 0.0%
25,000 Nation Multimedia Group plc,
expire 08/22/07+ ............... 0 672
------------ ------------
TOTAL WARRANTS .................... 1,033 1,819
------------ ------------
PRINCIPAL
AMOUNT
-----------
CONVERTIBLE CORPORATE BONDS -- 0.4%
BUSINESS SERVICES -- 0.4%
$ 50,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)(c) ....... 49,458 0
Trans-Lux Corp., Sub. Deb. Cv.,
300,000 8.250%, 03/01/12 ............... 292,930 301,500
500,000 7.500%, 12/01/06 ............... 501,063 499,375
------------ ------------
TOTAL CONVERTIBLE
CORPORATE BONDS ................ 843,451 800,875
------------ ------------
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT COST VALUE
----------- ------------ ------------
SHORT-TERM OBLIGATIONS -- 4.2%
U.S. GOVERNMENT OBLIGATIONS -- 4.2%
$ 9,053,000 U.S. Treasury Bills, 2.681% to
3.049%++, 07/28/05 to
09/22/05 ....................... $ 8,999,806 $ 8,999,069
------------ ------------
TOTAL SHORT-TERM OBLIGATIONS ...... 8,999,806 8,999,069
------------ ------------
TOTAL INVESTMENTS -- 100.0% ..................... $161,265,048 213,570,055
============
OTHER ASSETS IN EXCESS OF LIABILITIES ........... 157,369
PREFERRED STOCK
(994,100 preferred shares outstanding) ........ (49,827,500)
------------
NET ASSETS -- COMMON STOCK
(14,066,253 common shares outstanding) ........ $163,899,924
============
NET ASSET VALUE PER COMMON SHARE
($163,899,924 / 14,066,253 shares
outstanding) .................................. $ 11.65
============
----------
(a) Security in default.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At June 30,
2005, the market value of Rule 144A securities amounted to $3,660,081 or
1.71% of total investments. Except as noted in (d), these securities are
liquid.
(c) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At June 30, 2005, the
market value of fair valued securities amounted to $1,598,822 or 0.75% of
total investments.
(d) At June 30, 2005, the Fund held investments in restricted and illiquid
securities that were valued under methods approved by the Board as
follows:
06/30/05
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
----------- ------ ----------- ----------- --------------
100 Gray Television Inc., 8.000% Cv.
Pfd., Ser. C ..................... 04/22/02 $ 1,000,000 $ 10,200.0000
11,241 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A .......... 05/03/02 1,081,573 22.2528
62,500 Interep National Radio Sales Inc.
Warrants expire 05/06/07 ......... 05/03/02 -- --
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depository Receipt
GDR Global Depository Receipt
% OF
MARKET MARKET
VALUE VALUE
------ -------------
GEOGRAPHIC DIVERSIFICATION
North America ............ 75.9% $ 162,087,658
Europe ................... 13.4 28,667,086
Latin America ............ 5.2 11,165,769
Japan .................... 2.5 5,284,084
Asia/Pacific ............. 3.0 6,365,458
------ -------------
100.0% $ 213,57X0,055
====== =============
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005 (UNAUDITED)
ASSETS:
Investments, at value (cost $161,265,048) ................... $213,570,055
Cash and foreign currency, at value (cost $343,744) ......... 343,767
Dividends and interest receivable ........................... 274,243
Unrealized appreciation on swap contracts ................... 189,702
Other assets ................................................ 4,680
------------
TOTAL ASSETS ................................................ 214,382,447
------------
LIABILITIES:
Dividends payable ........................................... 397,511
Payable for investment advisory fees ........................ 134,902
Payable for shareholder communications fees ................. 45,990
Payable for audit and legal fees ............................ 24,387
Payable for payroll expense ................................. 17,599
Other accrued expenses and liabilities ...................... 34,634
------------
TOTAL LIABILITIES ........................................... 655,023
------------
PREFERRED STOCK:
Series B Cumulative Preferred Stock (6.00%, $25 liquidation
value, $0.001 par value, 1,000,000 shares authorized with
993,100 shares issued and outstanding) ................... 24,827,500
Series C Cumulative Preferred Stock (Auction Rate, $25,000
liquidation value, $0.001 par value, 1,000 shares
authorized with 1,000 shares issued and outstanding) ..... 25,000,000
------------
TOTAL PREFERRED STOCK .......................................... 49,827,500
------------
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS ........ $163,899,924
============
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS CONSIST OF:
Capital stock, at par value ................................. $ 14,066
Additional paid-in capital .................................. 116,392,683
Accumulated net realized loss on investments, swap
contracts and foreign currency transactions ............... (5,000,176)
Net unrealized appreciation on investments and swap
contracts ................................................. 52,494,709
Net unrealized depreciation on foreign currency
translations .............................................. (1,358)
------------
NET ASSETS .................................................. $163,899,924
============
NET ASSET VALUE PER COMMON SHARE:
($163,899,924 / 14,066,253 shares outstanding;
196,750,000 shares authorized of $0.001 par value) ....... $ 11.65
============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $140,055) ................ $ 3,201,338
Interest .................................................... 200,774
------------
TOTAL INVESTMENT INCOME ..................................... 3,402,112
------------
EXPENSES:
Investment advisory fees .................................... 1,046,789
Shareholder communications expenses ......................... 127,042
Payroll expenses ............................................ 71,520
Shareholder services fees ................................... 33,842
Custodian fees .............................................. 33,007
Directors' fees ............................................. 32,649
Auction agent fees .......................................... 31,200
Legal and audit fees ........................................ 27,662
Miscellaneous expenses ...................................... 66,411
------------
TOTAL EXPENSES .............................................. 1,470,122
------------
LESS:
Advisory fee reduction ................................... (247,090)
Custodian fee credits .................................... (540)
------------
TOTAL REDUCTIONS AND CREDITS ............................. (247,630)
------------
TOTAL NET EXPENSES .......................................... 1,222,492
------------
NET INVESTMENT INCOME ....................................... 2,179,620
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, SWAP
CONTRACTS AND FOREIGN CURRENCY:
Net realized gain on investments ............................ 2,134,616
Net realized loss on swap contracts ......................... (128,483)
Net realized loss on foreign currency transactions .......... (12,213)
------------
Net realized gain on investments, swap contracts and
foreign currency transactions ............................. 1,993,920
Net change in unrealized appreciation/depreciation on
investments, swap contracts and foreign currency
translations .............................................. (8,636,451)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS AND FOREIGN CURRENCY .......... (6,642,531)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ........ (4,462,911)
Total Distributions to Preferred Stock Shareholders ......... (1,093,129)
------------
NET DECREASE IN NET ASSETS ATTRIBUTABLE TO COMMON
STOCK SHAREHOLDERS RESULTING FROM OPERATIONS .............. $ (5,556,040)
============
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
SIX MONTHS ENDED
JUNE 30, 2005 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2004
---------------- -----------------
OPERATIONS:
Net investment income ................................................ $ 2,179,620 $ 1,090,976
Net realized gain on investments, swap contracts and foreign currency
transactions ....................................................... 1,993,920 1,177,139
Net change in unrealized appreciation/depreciation on investments,
swap contracts and foreign currency translations ................... (8,636,451) 23,752,164
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... (4,462,911) 26,020,279
---------------- -----------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ................................................ (574,049)* (515,381)
Net realized short-term gain on investments and foreign currency
transactions ....................................................... --* (355,500)
Net realized long-term gain on investments and foreign currency
transactions ....................................................... (519,080)* (996,178)
---------------- -----------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS .................. (1,093,129) (1,867,059)
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS RESULTING FROM OPERATIONS ............................. (5,556,040) 24,153,220
---------------- -----------------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income ................................................ (1,631,021)* --
Net realized long-term gain on investments and foreign currency
transactions ....................................................... (1,474,841)* --
Return of capital .................................................... (278,318)* --
---------------- -----------------
TOTAL DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS ..................... (3,384,180) --
---------------- -----------------
TRUST SHARE TRANSACTIONS:
Net decrease from repurchase of common shares ........................ (1,071,764) (444,435)
Net increase from repurchase of preferred shares ..................... -- 8,254
---------------- -----------------
NET DECREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ............. (1,071,764) (436,181)
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS ....................................................... (10,011,984) 23,717,039
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS:
Beginning of period .................................................. 173,911,908 150,194,869
---------------- -----------------
End of period (including undistributed net investment income of $0 and
$25,450, respectively) ............................................. $ 163,899,924 $ 173,911,908
================ =================
----------
* Amounts are subject to change and recharacterization at fiscal year end.
See accompanying notes to financial statements.
10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Multimedia Trust Inc. (the "Trust") is a
non-diversified closed-end management investment company organized as a Maryland
corporation on March 31, 1994 and registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Trust commenced investment operations on
November 15, 1994. The Trust's primary objective is long-term growth of capital
with income as a secondary objective.
The Trust will invest at least 80% of its assets, under normal market
conditions, in common stock and other securities, including convertible
securities, preferred stock, options and warrants of companies in the
telecommunications, media, publishing and entertainment industries (the "80%
Policy"). The 80% Policy may be changed without shareholder approval. The Trust
will provide shareholders with notice at least 60 days prior to the
implementation of any change in the 80% Policy.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Trust in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Directors (the "Board") so determines, by such other method as the
Board shall determine in good faith, to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on foreign markets are generally
valued at the preceding closing values of such securities on their respective
exchanges or if after the close of the foreign markets, but prior to the close
of business on the day the securities are being valued, market conditions change
significantly, certain foreign securities may be fair valued pursuant to
procedures established by the Board. Debt instruments that are not credit
impaired with remaining maturities of 60 days or less are valued at amortized
cost, unless the Board determines such amount does not reflect the securities'
fair value, in which case these securities will be valued at their fair value as
determined by the Board. Debt instruments having a maturity greater than 60 days
for which market quotations are readily available are valued at the latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price. Futures contracts
are valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
Securities and assets for which market quotations are not readily
available are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Board. Fair
valuation methodologies and procedures may include, but are not limited to:
analysis and review of available financial and non-financial information about
the company; comparisons to the valuation and changes in valuation of similar
securities, including a comparison of foreign securities to the equivalent U.S.
dollar value ADR securities at the close of the U.S. exchange; and evaluation of
any other information that could be indicative of the value of the security.
REPURCHASE AGREEMENTS. The Trust may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the
Board. Under the terms of a typical
11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
repurchase agreement, the Trust takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Trust
to resell, the obligation at an agreed-upon price and time, thereby determining
the yield during the Trust's holding period. The Trust will always receive and
maintain securities as collateral whose market value, including accrued
interest, will be at least equal to 102% of the dollar amount invested by the
Trust in each agreement. The Trust will make payment for such securities only
upon physical delivery or upon evidence of book entry transfer of the collateral
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to maintain the adequacy of the collateral. If the seller defaults
and the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Trust may be delayed or limited.
SWAP AGREEMENTS. The Trust may enter into interest rate swap or cap
transactions. The use of interest rate swaps and caps is a highly specialized
activity that involves investment techniques and risks different from those
associated with ordinary portfolio security transactions. In an interest rate
swap, the Trust would agree to pay to the other party to the interest rate swap
(which is known as the "counterparty") periodically a fixed rate payment in
exchange for the counterparty agreeing to pay to the Trust periodically a
variable rate payment that is intended to approximate the Trust's variable rate
payment obligation on the Series C Preferred Stock. In an interest rate cap, the
Trust would pay a premium to the counterparty and, to the extent that a
specified variable rate index exceeds a predetermined fixed rate, would receive
from the counterparty payments of the difference based on the notional amount of
such cap. Interest rate swap and cap transactions introduce additional risk
because the Trust would remain obligated to pay preferred stock dividends when
due in accordance with the Articles Supplementary even if the counterparty
defaulted. If there is a default by the counterparty to a swap contract, the
Trust will be limited to contractual remedies pursuant to the agreements related
to the transaction. There is no assurance that the swap contract counterparties
will be able to meet their obligations pursuant to the swap contracts or that,
in the event of default, the Trust will succeed in pursuing contractual
remedies. The Trust thus assumes the risk that it may be delayed in or prevented
from obtaining payments owed to it pursuant to the swap contracts. The
creditworthiness of the swap contract counterparties is closely monitored in
order to minimize this risk. Depending on the general state of short-term
interest rates and the returns on the Trust's portfolio securities at that point
in time, such a default could negatively affect the Trust's ability to make
dividend payments for the Series C Preferred Stock. In addition, at the time an
interest rate swap or cap transaction reaches its scheduled termination date,
there is a risk that the Trust will not be able to obtain a replacement
transaction or that the terms of the replacement will not be as favorable as on
the expiring transaction. If this occurs, it could have a negative impact on the
Trust's ability to make dividend payments on the Series C Preferred Stock.
The use of derivative instruments involves, to varying degrees, elements
of market risk in excess of the amount recognized in the Statement of Assets and
Liabilities.
Unrealized gains related to swaps are reported as an asset and unrealized
losses are reported as a liability on the Statement of Assets and Liabilities.
The change in value of swaps, including the accrual of periodic amounts of
interest to be paid or received on swaps is reported as unrealized gains or
losses in the Statement of Operations. A realized gain or loss is recorded upon
payment or receipt of a periodic payment or termination of swap agreements. Swap
agreements involve, to varying degrees, elements of market and counterparty
risk, and exposure to loss in excess of the related amounts reflected in the
Statement of Assets and Liabilities.
12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The Trust has entered into two interest rate swap agreements with Citibank
N.A. Under the agreement the Trust receives a variable rate of interest and pays
a respective fixed rate of interest on the nominal value of the swap. Details of
the swaps at June 30, 2005 are as follows:
UNREALIZED
NOTIONAL VARIABLE RATE* TERMINATION APPRECIATION
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE (DEPRECIATION)
----------- ---------- -------------------- ------------- --------------
$10,000,000 4.32% 3.15% April 4, 2013 $ (87,528)
15,000,000 3.27 3.15 April 4, 2008 277,230
----------
*Based on Libor (London Interbank Offered Rate).
FUTURES CONTRACTS. The Trust may engage in futures contracts for the
purpose of hedging against changes in the value of its portfolio securities and
in the value of securities it intends to purchase. Such investments will only be
made if they are economically appropriate to the reduction of risks involved in
the management of the Trust's investments. Upon entering into a futures
contract, the Trust is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Trust each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are included in
unrealized appreciation/depreciation on investments and futures contracts. The
Trust recognizes a realized gain or loss when the contract is closed. At June
30, 2005, there were no open futures contracts.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. These contracts may involve market
risk in excess of the unrealized gain or loss reflected in the Statement of
Assets and Liabilities. In addition, there is the risk that the Trust may not be
able to enter into a closing transaction because of an illiquid secondary
market.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Trust may engage in forward
foreign exchange contracts for hedging a specific transaction with respect to
either the currency in which the transaction is denominated or another currency
as deemed appropriate by the Adviser. Forward foreign exchange contracts are
valued at the forward rate and are marked-to-market daily. The change in market
value is included in unrealized appreciation/depreciation on investments and
foreign currency translations. When the contract is closed, the Trust records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Trust's portfolio securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain
that might result should the value of the currency increase. These contracts may
involve market risk in excess of the unrealized gain or loss reflected in the
Statement of Assets and Liabilities. In addition, the Trust could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of
their contracts. At June 30, 2005, there were no open forward foreign exchange
contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Trust are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized
13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
appreciation/depreciation on investments and foreign currency translations. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Trust and the amounts actually received. The
portion of foreign currency gains and losses related to fluctuation in exchange
rates between the initial trade date and subsequent sale trade date is included
in realized gain/(loss) on investments.
FOREIGN SECURITIES. The Trust may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to common
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with Federal income tax
regulations, which may differ from that determined under U.S. generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Trust, timing differences and differing characterizations of distributions made
by the Trust.
Distributions to shareholders of the Trust's 6.00% Series B Cumulative
Preferred Stock and Series C Auction Rate Cumulative Preferred Stock
("Cumulative Preferred Stock") are recorded on a daily basis and are determined
as described in Note 5.
For the year ended December 31, 2004, reclassifications were made to
decrease accumulated net investment income by $550,145 and to decrease
accumulated net realized loss on investments, swap contracts and foreign
currency transactions by $550,862 with an offsetting adjustment to paid-in
capital.
The tax characteristic of distributions paid during the fiscal year ended
December 31, 2004 was as follows:
YEAR ENDED
DECEMBER 31, 2004
-----------------
Preferred
---------
DISTRIBUTIONS PAID FROM:
Ordinary income (inclusive of short-term gains) .. $ 870,881
Net long-term capital gain ....................... 996,178
------------
Total distributions paid ......................... $ 1,867,059
============
PROVISION FOR INCOME TAXES. The Trust intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the Trust's policy to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for Federal income taxes is required.
14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
As of December 31, 2004, the components of accumulated earnings/(losses)
on a tax basis were as follows:
Net unrealized appreciation on investments
and foreign currency ...................... $ 56,157,509
Other ....................................... (2,433)
------------
Total ....................................... $ 56,155,076
============
The following summarizes the tax cost of investments, swap contracts,
foreign currency and related unrealized appreciation/depreciation at June 30,
2005:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------- -------------- ------------- --------------
Investments .................... $ 166,342,131 $ 60,216,615 $ (12,988,691) $ 47,227,924
Swap contracts ................. -- 189,702 -- 189,702
Foreign currency ............... 1,898 -- (1,358) (1,358)
-------------- ------------- --------------
$ 60,406,317 $ (12,990,049) $ 47,416,268
============== ============= ==============
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Trust has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Trust will pay the Adviser a fee, computed weekly and paid
monthly, equal on an annual basis to 1.00% of the value of the Trust's average
weekly net assets including the liquidation value of preferred stock. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Trust's portfolio and oversees the administration of
all aspects of the Trust's business and affairs. The Adviser has agreed to
reduce the management fee on the incremental assets attributable to the
Cumulative Preferred Stock if the total return of the net asset value of the
common shares of the Trust, including distributions and advisory fee subject to
reduction, does not exceed the stated dividend rate or corresponding swap rate
of the Cumulative Preferred Stock for the fiscal year.
The Trust's total return on the net asset value of the common shares is
monitored on a monthly basis to assess whether the total return on the net asset
value of the common shares exceeds the stated dividend rate of each particular
series of Cumulative Preferred stock for the period. For the six months ended
June 30, 2005, the Trust's total return on the net asset value of the common
shares did not exceed the stated dividend rate or net swap expense of all
outstanding preferred stock. Thus, management fees with respect to the
liquidation value of the preferred stock assets in the amount of $247,090 were
not accrued.
During the six months ended June 30, 2005, Gabelli & Company, Inc.
("Gabelli & Company"), an affiliate of the Adviser, received $19,178 in
brokerage commissions as a result of executing agency transactions in portfolio
securities on behalf of the Trust.
The cost of calculating the Trust's net asset value per share is a Trust
expense pursuant to the Advisory Agreement. During the six months ended June 30,
2005, the Trust reimbursed the Adviser $22,500 in connection with the cost of
computing the Trust's net asset value, which is included in miscellaneous
expenses in the Statement of Operations.
The Trust is assuming its portion of the allocated cost of the Gabelli
Funds' Chief Compliance Officer in the amount of $2,636 for the six months ended
June 30, 2005, which is included in payroll expenses in the Statement of
Operations.
15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
4. PORTFOLIO SECURITIES. Cost of purchases and proceeds from the sales of
securities, other than short-term securities, for the six months ended June 30,
2005 aggregated $15,623,361 and $5,313,249, respectively.
5. CAPITAL. The charter permits the Trust to issue 196,750,000 shares of common
stock (par value $0.001). The Board of the Trust has authorized the repurchase
of up to 1,200,000 shares on the open market when the shares are trading at a
discount of 10% or more (or such other percentage as the Board may determine
from time to time) from the net asset value of the shares. During the six months
ended June 30, 2005, the Trust repurchased 104,000 shares of its common stock in
the open market at a cost of $1,071,764 and an average discount of approximately
13.44% from its net asset value. During the year ended December 31, 2004, the
Trust repurchased 48,700 shares of its common stock in the open market at a cost
of $444,435 and an average discount of approximately 14.68% from its net asset
value. All shares of common stock repurchased have been retired.
Transactions in capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2005 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2004
---------------------- ----------------------
Shares Amount Shares Amount
-------- ----------- -------- -----------
Net decrease from repurchase of common shares .... (104,000) $(1,071,764) (48,700) $ (444,435)
-------- ----------- ------- -----------
Net decrease ..................................... (104,000) $(1,071,764) (48,700) $ (444,435)
======== =========== ======= ===========
The Trust's Articles of Incorporation authorize the issuance of up to
2,000,000 shares of $0.001 par value Cumulative Preferred Stock. The Cumulative
Preferred Stock is senior to the common stock and results in the financial
leveraging of the common stock. Such leveraging tends to magnify both the risks
and opportunities to common shareholders. Dividends on shares of the Cumulative
Preferred Stock are cumulative. The Trust is required by the 1940 Act and by the
Articles Supplementary to meet certain asset coverage tests with respect to the
Cumulative Preferred Stock. If the Trust fails to meet these requirements and
does not correct such failure, the Trust may be required to redeem, in part or
in full, the 6.00% Series B and Series C Auction Rate Cumulative Preferred Stock
at a redemption price of $25.00 and $25,000, respectively, per share plus an
amount equal to the accumulated and unpaid dividends whether or not declared on
such shares in order to meet these requirements. Additionally, failure to meet
the foregoing asset coverage requirements could restrict the Trust's ability to
pay dividends to common shareholders and could lead to sales of portfolio
securities at inopportune times. The income received on the Trust's assets may
vary in a manner unrelated to the fixed and variable rates, which could have
either a beneficial or detrimental impact on net investment income and gains
available to common shareholders.
On April 2, 2003, the Trust, as authorized by the Board, redeemed the
remaining 75% (926,025 shares) of its outstanding 7.92% Cumulative Preferred
Stock at the redemption price of $25.00 per share of Preferred Stock (the
liquidation value), plus accumulated and unpaid dividends through the redemption
date of $0.033 per Preferred Share. The Preferred Shares were callable at any
time at the liquidation value plus accrued dividends following the expiration of
the five-year call protection on June 1, 2002.
On March 31, 2003, the Trust received net proceeds of $24,009,966 (after
underwriting discounts of $787,500 and offering expenses of $202,534) from the
public offering of 1,000,000 shares of 6.00% Series B Cumulative Preferred
Stock. Commencing April 2, 2008 and thereafter, the Trust, at its option, may
redeem the 6.00% Series B Cumulative Preferred Stock in whole or in part at the
redemption price at any time. The Board has authorized the repurchase of the
6.00% Series B Cumulative Preferred Stock in the open market at prices less than
the $25 liquidation value of the
16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
Cumulative Preferred Stock. During the six months ended June 30, 2005, the Trust
did not repurchase any shares of 6.00% Series B Cumulative Preferred Stock. At
June 30, 2005, 993,100 shares of the 6.00% Series B Cumulative Preferred Stock
were outstanding and accrued dividends amounted to $16,552.
On March 31, 2003, the Trust received net proceeds of $24,547,465 (after
underwriting discounts of $250,000 and offering expenses of $202,535) from the
public offering of 1,000 shares of Series C Auction Rate Cumulative Preferred
Stock. The dividend rate, as set by the auction process, which is generally held
every 7 days, is expected to vary with short-term interest rates. The dividend
rates of Series C Auction Rate Cumulative Preferred Stock ranged from 2.20% to
3.33% for the six months ended June 30, 2005. Existing shareholders may submit
an order to hold, bid or sell such shares on each auction date. Series C Auction
Rate Cumulative Preferred Stock shareholders may also trade shares in the
secondary market. The Trust, at its option, may redeem the Series C Auction Rate
Cumulative Preferred Stock in whole or in part at the redemption price at any
time. During the six months ended June 30, 2005, the Trust did not redeem any
shares of Series C Auction Rate Cumulative Preferred Stock. At June 30, 2005,
1,000 shares of the Series C Auction Rate Cumulative Preferred Stock were
outstanding with an annualized dividend rate of 3.33% per share and accrued
dividends amounted to $4,625.
The holders of Cumulative Preferred Stock have voting rights equivalent to
those of the holders of common stock (one vote per share) and will vote together
with holders of shares of common stock as a single class. In addition, the 1940
Act requires that along with approval of a majority of the holders of common
stock, approval of a majority of the holders of any outstanding shares of
Cumulative Preferred Stock, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the Cumulative
Preferred Stock, and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Trust's subclassification as a
closed-end investment company or changes in its fundamental investment
restrictions.
6. INDUSTRY CONCENTRATION. Because the Trust primarily invests in common stocks
and other securities of foreign and domestic companies in the
telecommunications, media, publishing and entertainment industries, its
portfolio may be subject to greater risk and market fluctuations than a
portfolio of securities representing a broad range of investments.
7. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests for documents and
testimony. The Trust does not believe that these matters will have a material
adverse effect on the Trust's financial position or the results of its
operations.
8. INDEMNIFICATIONS. The Trust enters into contracts that contain a variety of
indemnifications. The Trust's maximum exposure under these arrangements is
unknown. However, the Trust has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
17
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2005 ---------------------------------------------------------------
(UNAUDITED)(D) 2004(D) 2003(D) 2002 2001 2000
---------------- ------- ------- ------- ------- -------
OPERATING PERFORMANCE:
Net asset value, beginning of period ..... $ 12.27 $ 10.56 $ 7.67 $ 10.52 $ 12.21 $ 19.90
------- ------- ------- ------- ------- -------
Net investment income (loss) ............. 0.15 0.04 (0.03) (0.00)(a) (0.02) 0.21
Net realized and unrealized gain (loss)
on investments ......................... (0.46) 1.79 3.14 (2.68) (1.44) (4.74)
------- ------- ------- ------- ------- -------
Total from investment operations ......... (0.31) 1.83 3.11 (2.68) (1.46) (4.53)
------- ------- ------- ------- ------- -------
DISTRIBUTIONS TO PREFERRED STOCK
SHAREHOLDERS:
Net investment income .................... (0.04)(g) (0.04) -- -- -- (0.02)
Net realized gain on investments ......... (0.04)(g) (0.09) (0.13) (0.17) (0.17) (0.18)
------- ------- ------- ------- ------- -------
Total distributions to preferred stock
shareholders ........................... (0.08) (0.13) (0.13) (0.17) (0.17) (0.20)
------- ------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS RESULTING FROM
OPERATIONS ............................. (0.39) 1.70 2.98 (2.85) (1.63) (4.73)
------- ------- ------- ------- ------- -------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income .................... (0.12)(g) -- -- -- 0.00(a) (0.16)
Net realized gain on investments ......... (0.10)(g) -- -- -- (0.06) (1.41)
Return of capital ........................ (0.02)(g) -- -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions to common stock
shareholders ........................... (0.24) -- -- -- (0.06) (1.57)
------- ------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net asset value
from common stock share transactions ... 0.01 0.01 0.01 0.00(a) -- (1.35)
Increase in net asset value from
repurchases of preferred shares ........ -- 0.00(a) -- -- -- --
Offering expenses charged to paid-in
capital ................................ -- -- (0.10) -- -- (0.04)
------- ------- ------- ------- ------- -------
Total capital share transactions ......... 0.01 0.01 (0.09) 0.00(a) -- (1.39)
------- ------- ------- ------- ------- -------
NET ASSET VALUE ATTRIBUTABLE TO COMMON
STOCK SHAREHOLDERS, END OF PERIOD ...... $ 11.65 $ 12.27 $ 10.56 $ 7.67 $ 10.52 $ 12.21
======= ======= ======= ======= ======= =======
Net asset value total return + ........... (3.1)% 16.2% 37.7% (27.1)% (13.3)% (24.9)%
======= ======= ======= ======= ======= =======
Market value, end of period .............. $ 10.10 $ 10.68 $ 9.07 $ 6.40 $ 9.01 $ 10.31
======= ======= ======= ======= ======= =======
Total investment return ++ ............... (3.2)% 17.8% 41.7% (29.0)% (12.1)% (35.0)%
======= ======= ======= ======= ======= =======
See accompanying notes to financial statements.
18
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2005 -----------------------------------------------------------
(UNAUDITED)(D) 2004(D) 2003(D) 2002 2001 2000
---------------- -------- --------- --------- --------- ---------
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation value of
preferred shares, end of period (in 000's) ... $213,727 $223,739 $ 200,195 $ 132,683 $ 181,539 $ 205,893
Net assets attributable to common shares, end
of period (in 000's) ......................... $163,900 $173,912 $ 150,195 $ 109,533 $ 150,672 $ 175,026
Ratio of net investment income (loss) to
average net assets attributable to common
shares ....................................... 2.64%(e) 0.71% (0.36)% (0.04)% (0.18)% 1.36%
Ratio of operating expenses to average net
assets attributable to common stock before
fee reduction ................................ 1.78%(e) 1.87% 1.81% 1.46% 1.34% 1.46%
Ratio of operating expenses to average net
assets attributable to common stock net of
fee reduction (f) ............................ 1.48%(e) 1.87% 1.81% 1.46% 1.34% 1.46%
Ratio of operating expenses to average net
assets including liquidation value of
preferred shares before fee reduction ........ 1.37%(e) 1.41% 1.35% 1.18% 1.13% 1.27%
Ratio of operating expenses to average net
assets including liquidation value of
preferred shares net of fee reduction (f) .... 1.14%(e) 1.41% 1.35% 1.18% 1.13% 1.27%
Portfolio turnover rate ........................ 2.6% 7.5% 10.9% 16.6% 25.4% 29.9%
PREFERRED STOCK:
7.92% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... -- -- -- $ 23,150 $ 30,867 $ 30,867
Total shares outstanding (in 000's) ............ -- -- -- 926 1,235 1,235
Liquidation preference per share ............... -- -- -- $ 25.00 $ 25.00 $ 25.00
Average market value (b) ....................... -- -- -- $ 25.75 $ 25.50 $ 23.54
Asset coverage per share ....................... -- -- -- $ 143.29 $ 147.00 $ 166.72
6.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... $ 24,828 $ 24,828 $ 25,000 -- -- --
Total shares outstanding (in 000's) ............ 993 993 1,000 -- -- --
Liquidation preference per share ............... $ 25.00 $ 25.00 $ 25.00 -- -- --
Average market value (b) ....................... $ 24.99 $ 24.84 $ 25.28 -- -- --
Asset coverage per share ....................... $ 107.23 $ 112.26 $ 100.10
AUCTION RATE CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... $ 25,000 $ 25,000 $ 25,000 -- -- --
Total shares outstanding (in 000's) ............ 1 1 1 -- -- --
Liquidation preference per share ............... $ 25,000 $ 25,000 $ 25,000 -- -- --
Average market value (b) ....................... $ 25,000 $ 25,000 $ 25,000 -- -- --
Asset coverage per share ....................... $107,234 $112,257 $ 100,097
ASSET COVERAGE (C) ............................. 429% 449% 400% 573% 588% 667%
----------
+ Based on net asset value per share, adjusted for reinvestment of
distributions at net asset value on the ex-dividend date, including the
effect of shares issued pursuant to rights offering, assuming full
subscription by shareholder. Total return for the period of less than one
year is not annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions on the payment date, including the effect of shares issued
pursuant to rights offering, assuming full subscription by shareholder.
Total return for the period of less than one year is not annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.
(c) Asset coverage is calculated by combining all series of preferred stock.
(d) See Note 2 to Financial Statements (Swap Agreements).
(e) Annualized.
(f) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. For the six months
ended June 30, 2005, the effect of the custodian fee credits was minimal.
(g) Amounts are subject to change and recharacterization at fiscal year end.
See accompanying notes to financial statements.
19
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
BOARD CONSIDERATION AND RE-APPROVAL OF MANAGEMENT AGREEMENT
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), contemplates that the Board of Directors (the "Board") of The Gabelli
Global Multimedia Trust Inc. (the "Fund"), including a majority of the Directors
who have no direct or indirect interest in the investment advisory agreement and
are not "interested persons" of the Fund, as defined in the 1940 Act (the
"Independent Directors"), are required to annually review and re-approve the
terms of the Fund's existing investment advisory agreement and approve any newly
proposed terms therein. In this regard, the Board reviewed and re-approved,
during the most recent six month period covered by this report, the Management
Agreement (the "Management Agreement") with Gabelli Funds, LLC (the "Adviser")
for the Fund.
More specifically, at a meeting held on May 18, 2005, the Board, including the
Independent Directors meeting in executive session with their counsel,
considered the factors and reached the conclusions described below relating to
the selection of the Adviser and the re-approval of the Management Agreement.
NATURE, EXTENT, AND QUALITY OF SERVICES. The Board received and considered
various data and information regarding the nature, quality and extent of
administrative and shareholder services provided to the Fund by the Adviser
under the Management Agreement, including portfolio management, supervision of
Fund operations and compliance and regulatory filings and disclosures to
shareholders, general oversight of other service providers, review of Fund legal
issues, assisting the Independent Directors in their capacity as directors and
other services. Specifically, the Board received and considered information
regarding the size, education and experience of the Adviser's staff, the
Adviser's fundamental research capabilities and the Adviser's approach to
recruiting, training and retaining portfolio managers and other research and
management personnel.
Based on the above factors, together with those referenced below, the Board
concluded that the services are extensive in nature and that the Adviser
consistently delivered a high level of service.
FUND PERFORMANCE. The Board reviewed and considered information as to short-term
and long-term investment performance for the Fund over various periods of time
as compared to both relevant equity indices and the performance of the Fund's
Lipper, Inc. peer group. The Board concluded that the Adviser was delivering
satisfactory performance results consistent with the investment strategies being
pursued by the Fund.
FUND FEES AND EXPENSES. The Board reviewed and considered the Fund's contractual
management fee rate and expense ratio relative to industry averages for the
Fund's peer group category and the advisory fees charged by the Adviser and its
affiliates to other fund and non-fund clients. The Board noted that the mix of
services under the Management Agreement are much more extensive than those under
the advisory agreements for non-fund clients. The Independent Directors
recognized that the management fee paid by the Fund was marginally lower than
average for its peer group and concluded that the fee was acceptable based upon
the qualifications, experience, reputation and performance of the Adviser,
recognizing the fact that the Fund's overall expense ratio is higher than the
peer group average.
PROFITABILITY. The Board received and considered information regarding the
Adviser's overall profitability and costs, and pro forma estimates of the
Adviser's profitability and costs attributable to the Fund (i) as part of the
Gabelli fund complex and (ii) assuming the Fund constituted the Adviser's only
investment company under its management. The Independent Directors also
considered whether the amount of profit is a fair entrepreneurial profit for the
management of the Fund, and noted that the Adviser has substantially increased
its resources devoted to Fund matters in response to recently-enacted regulatory
requirements and new or enhanced Fund policies and procedures. The Board
concluded that the Adviser's profitability was at an acceptable level.
20
ECONOMIES OF SCALE. The Board received and considered information regarding
whether there have been economies of scale with respect to the management of the
Fund and whether the Fund has appropriately benefited from any economies of
scale. The Board noted that economies of scale may develop for certain funds as
their assets increase and their fund-level expenses decline as a percentage of
assets, but that fund-level economies of scale may not necessarily result in
Adviser-level economies of scale. The Board was aware that the Adviser waives
fees attributable to the liquidation value of the preferred shares if the total
return of the common shares does not exceed a specified amount, and concluded
that there was an appropriate sharing of economies of scale.
The Board also considered whether the management fee rate is reasonable in
relation to the asset size of the Fund and any economies of scale that may
exist, and concluded that it currently was reasonable.
OTHER BENEFITS TO THE ADVISER. The Board also received and considered
information regarding the character and amount of other incidental benefits
received by the Adviser and its affiliates from its association with the Fund.
The Board considered the brokerage commissions paid to an affiliate of the
Adviser. The Board concluded that potential "fall-out" benefits that the Adviser
and its affiliates may receive, such as affiliated brokerage commissions,
greater name recognition or increased ability to obtain research services,
appear to be reasonable.
CONCLUSIONS. As discussed above, the Board reviewed detailed materials received
from the Adviser as part of the re-approval process under Section 15(c) of the
1940 Act. The Board also regularly reviews and assesses the quality of the
services that the Fund receives throughout the year. In this regard, the Board
reviews reports of the Adviser at least in each of its regular meetings, which
include, among other things, Fund performance reports.
As a part of its decision-making process, the Board noted that the Adviser has
managed the Fund since its inception, and the Board believed that a long-term
relationship with a capable, conscientious adviser is in the best interests of
the Fund. The Board considered, generally, that shareholders invested in the
Fund knowing that the Adviser managed the Fund and knowing its investment
management fee schedule. As such, the Board considered, in particular, whether
the Adviser managed the Fund in accordance with its investment objectives and
policies as disclosed to shareholders. The Board concluded that the Fund was
managed by the Adviser consistent with its investment objectives and policies.
In considering the Management Agreement, the Board did not identify any factor
as all-important or all-controlling and instead considered these factors
collectively in light of the Fund's surrounding circumstances. Based on this
review, it was the Board's judgment that shareholders had received over the long
term satisfactory absolute and relative performance at reasonable fees. After
considering the above-described factors and based on the deliberations and its
evaluation of the information provided to it, the Board concluded that
re-approval of the Management Agreement was in the best interests of the Fund
and its shareholders. Accordingly, the Board unanimously re-approved the
Management Agreement.
21
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Trust") to
automatically reinvest dividends payable to common shareholders. As a
"registered" shareholder you automatically become a participant in the Trust's
Automatic Dividend Reinvestment Plan (the "Plan"). The Plan authorizes the 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 Trust. Plan participants may send their stock
certificates to EquiServe Trust Company ("EquiServe") 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 EquiServe
P.O. Box 43010
Providence, RI 02940-3010
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 EquiServe at (800) 336-6983.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe 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 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 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 Trust valued at market price. If the Trust should
declare a dividend or capital gains distribution payable only in cash, EquiServe
will buy Common Stock in the open market, or on the NYSE or elsewhere, for the
participants' accounts, except that EquiServe will endeavor to terminate
purchases in the open market and cause the 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 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 EquiServe 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 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 EquiServe for investments in the Trust's shares at
the then current market price. Shareholders may send an amount from $250 to
$10,000. EquiServe will use these funds to purchase shares in the open market on
or about the 1st and 15th of each month. EquiServe 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 EquiServe, P.O. Box 43010, Providence, RI 02940-3010 such
that EquiServe 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 EquiServe 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 Trust.
22
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF EXECUTIVE OFFICER,
GABELLI ASSET MANAGEMENT INC.
Dr. Thomas E. Bratter
PRESIDENT, JOHN DEWEY ACADEMY
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR,
LAWRENCE HOSPITAL
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT & TREASURER
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
Laurissa M. Martire
VICE PRESIDENT
James E. McKee
SECRETARY
LoAn P. Nguyen
VICE PRESIDENT & OMBUDSMAN
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust Company
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
COUNSEL
Willkie Farr & Gallagher LLP
STOCK EXCHANGE LISTING
6.00%
Common Preferred
------ ---------
NYSE-Symbol: GGT GGT PrB
Shares Outstanding: 14,066,253 993,100
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.
--------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI-ANNUAL REPORT
JUNE 30, 2005
GGT-SA-Q2/05
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not yet applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
=============================================================================================================================
(C) TOTAL NUMBER OF (D) MAXIMUM NUMBER (OR
SHARES (OR UNITS) APPROXIMATE DOLLAR VALUE) OF
(A) TOTAL NUMBER OF PURCHASED AS PART OF SHARES (OR UNITS) THAT MAY
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PUBLICLY ANNOUNCED YET BE PURCHASED UNDER THE
PERIOD PURCHASED PER SHARE (OR UNIT) PLANS OR PROGRAMS PLANS OR PROGRAMS
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 14,170,253
01/01/05
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
01/31/05
=============================================================================================================================
Month #2 Common - 18,600 Common - $10.6343 Common - 18,600 Common - 14,170,253 -
02/01/05 18,600 = 14,151,653
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
02/28/05 Preferred Series B - 993,100
=============================================================================================================================
Month #3 Common - 35,600 Common - $10.5363 Common - 35,600 Common - 14,151,653 -
03/01/05 35,600 = 14,116,053
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
03/31/05 Preferred Series B - 993,100
=============================================================================================================================
Month #4 Common - 20,000 Common - $10.0608 Common - 20,000 Common - 14,116,053 -
04/01/05 20,000 = 14,096,053
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
04/30/05 Preferred Series B - 993,100
=============================================================================================================================
Month #5 Common - 9,800 Common - $9.8774 Common - 9,800 Common - 14,096,053 -
05/01/05 9,800 = 14,086,253
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
05/31/05 Preferred Series B - 993,100
=============================================================================================================================
Month #6 Common - 20,000 Common - $10.0431 Common - 20,000 Common - 14,086,253 -
06/01/05 20,000 = 14,066,253
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
06/30/05 Preferred Series B - 993,100
=============================================================================================================================
Total Common -104,000 Common - $10.3054 Common - 104,000 N/A
Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
=============================================================================================================================
Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:
a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment Company
Act of 1940, as amended.
b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are
trading at a discount of 10% or more from the net asset value of the
shares.
Any or all preferred shares outstanding may be repurchased when the Fund's
preferred shares are trading at a discount to the liquidation value of
$25.00.
c. The expiration date (if any) of each plan or program - The Fund's
repurchase plans are ongoing.
d. Each plan or program that has expired during the period covered by the
table - The Fund's repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Global Multimedia Trust Inc.
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date September 7, 2005
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer &
Principal Financial Officer
Date September 7, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.