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
The Gabelli Global Multimedia Trust Inc.
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
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, 100 F Street, NE,
Washington, DC 20549. 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.
(THE GABELLI GLOBAL MULTIMEDIA TRUST INC. LOGO)
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
Semi-Annual Report
June 30, 2008
TO OUR SHAREHOLDERS,
The Gabelli Global Multimedia Trust's (the "Fund") net asset value ("NAV")
total return was down 23.78% during the first half of 2008, compared with losses
of 13.55% and 10.57% for the Nasdaq Composite Index and for the Morgan Stanley
Capital International ("MSCI") World Free Index, respectively. The total return
for the Fund's publicly traded shares was (26.31)% during the first half of the
year. On June 30, 2008, the Fund's NAV per share was $10.69, while the price of
the publicly traded shares closed at $9.21 on the New York Stock Exchange.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2008.
COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2008 (a)
Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year (11/15/94)
------- ------- ------- ------ ------ ------- ----------
GABELLI GLOBAL MULTIMEDIA TRUST
NAV TOTAL RETURN (b) ......................... (7.60)% (23.78)% (27.42)% 2.34% 7.22% 5.47% 9.36%
INVESTMENT TOTAL RETURN (c) .................. (7.58) (26.31) (29.25) 2.89 7.76 6.17 8.80
Nasdaq Composite Index .......................... 0.61 (13.55) (11.92) 3.69 7.16 1.93 8.39
MSCI World Free Index ........................... (1.66) (10.57) (10.68) 8.88 11.99 4.19 7.91(d)
Lipper Global Multi-Cap Growth Fund Average ..... (0.14) (10.30) (6.89) 10.93 13.91 5.76 9.87
(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. PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE
NASDAQ COMPOSITE AND MSCI WORLD FREE INDICES ARE UNMANAGED INDICATORS OF
STOCK MARKET PERFORMANCE. THE LIPPER GLOBAL MULTI-CAP GROWTH FUND AVERAGE
REFLECTS THE AVERAGE PERFORMANCE OF OPEN-END MUTUAL FUNDS CLASSIFIED IN
THIS PARTICULAR CATEGORY. DIVIDENDS ARE CONSIDERED REINVESTED EXCEPT FOR
THE NASDAQ COMPOSITE AND MSCI WORLD FREE INDICES. YOU CANNOT INVEST
DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NAV PER SHARE,
REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE, AND
ADJUSTMENTS FOR RIGHTS OFFERINGS AND ARE NET OF EXPENSES. SINCE INCEPTION
RETURN IS BASED ON AN INITIAL NAV 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 IS BASED ON AN
INITIAL OFFERING PRICE OF $7.50.
(d) FROM NOVEMBER 30, 1994, THE DATE CLOSEST TO THE FUND'S INCEPTION FOR WHICH
DATA IS AVAILABLE.
We have separated the portfolio managers' 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 managers' commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total
investments as of June 30, 2008:
Entertainment ......................................................... 21.0%
Cable ................................................................. 9.1%
Hotels and Gaming ..................................................... 7.7%
Broadcasting .......................................................... 7.5%
Telecommunications: Regional .......................................... 7.3%
Publishing ............................................................ 6.8%
Telecommunications: National .......................................... 6.7%
Wireless Communications ............................................... 6.4%
U.S. Government Obligations ........................................... 5.6%
Computer Software and Services ........................................ 5.0%
Satellite ............................................................. 2.2%
Telecommunications: Long Distance ..................................... 2.2%
Electronics ........................................................... 2.2%
Consumer Services ..................................................... 1.9%
Equipment ............................................................. 1.9%
Diversified Industrial ................................................ 1.7%
Retail ................................................................ 1.6%
Consumer Products ..................................................... 1.2%
Business Services: Advertising ........................................ 0.8%
Business Services ..................................................... 0.8%
Energy and Utilities .................................................. 0.2%
Food and Beverage ..................................................... 0.1%
Computer Hardware ..................................................... 0.1%
Financial Services .................................................... 0.0%
-----
100.0%
=====
THE FUND FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION (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, 2008. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT
WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI (800-422-3554). THE FUND'S
FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE
REVIEWED AND COPIED AT THE SEC'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 Fund 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 Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
SHAREHOLDER MEETING - FINAL RESULTS
The Annual Meeting of Shareholders was held on May 19, 2008 at the
Greenwich Library in Greenwich, Connecticut. At that meeting, common and
preferred shareholders, voting together as a single class, voted in favor of
Proposal 1 to elect Frank J. Fahrenkopf, Jr., Werner J. Roeder, and Salvatore J.
Zizza as Directors of the Fund. A total of 10,389,750 votes, 10,394,796 votes,
and 10,407,333 votes were cast in favor of each Director and a total of
1,783,637 votes, 1,778,591 votes, and 1,766,054 votes were withheld for each
Director, respectively. Mario J. Gabelli, Thomas E. Bratter, Anthony J.
Colavita, James P. Conn, and Anthony R. Pustorino continue to serve in their
capacities as Directors of the Fund.
The Annual Meeting was adjourned to June 9, 2008 solely in regards to
Proposal 2, which concerned an amendment to the fundamental investment
restriction regarding borrowing, due to insufficient shareholder votes. The
reconvened meeting held on June 9, 2008 was adjourned with respect to Proposal 2
to June 30, 2008. On that date, common and preferred shareholders, voting
together as a single class, and preferred shareholders, voting as a separate
class, approved Proposal 2. A total of 7,988,512 votes and 458,934 votes were
cast in favor of the proposal, 1,580,249 votes and 34,689 votes were cast
against the proposal, and 406,083 votes and 29,319 votes abstained,
respectively. The meeting was concluded after the tabulation of the shareholder
votes.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ------------ ---------
COMMON STOCKS -- 94.4%
COPYRIGHT/CREATIVITY COMPANIES -- 39.1%
BUSINESS SERVICES: ADVERTISING -- 0.8%
55,000 Clear Channel Outdoor
Holdings Inc., Cl. A+ ............... $ 1,229,000 $ 980,650
20,000 Harte-Hanks Inc. ....................... 147,611 229,000
4,200 Havas SA ............................... 20,733 15,474
8,000 JC Decaux SA ........................... 196,558 203,923
2,000 Publicis Groupe ........................ 13,971 64,805
4,000 R. H. Donnelley Corp.+ ................. 47,531 12,000
36,000 Trans-Lux Corp.+ ....................... 265,430 129,600
------------ ------------
1,920,834 1,635,452
------------ ------------
COMPUTER HARDWARE -- 0.1%
1,500 Apple Inc.+ ............................ 89,170 251,160
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 5.0%
50,000 Activision Inc.+ ....................... 602,858 1,703,500
21,500 Alibaba.com Ltd.+ ...................... 37,826 30,331
5,000 America Online Latin
America Inc., Cl. A+ (a) ............ 2,150 10
3,000 Atlus Co. Ltd.+ ........................ 17,662 17,432
3,230 EarthLink Inc.+ ........................ 31,331 27,939
5,000 eBay Inc.+ ............................. 165,490 136,650
3,000 Electronic Arts Inc.+ .................. 128,251 133,290
1,000 EMC Corp.+ ............................. 6,600 14,690
8,000 Google Inc., Cl. A+ .................... 3,851,831 4,211,360
10,000 Jupitermedia Corp.+ .................... 12,067 14,000
16,000 Limelight Networks Inc.+ ............... 136,222 61,120
16,000 NAVTEQ Corp.+ .......................... 1,193,986 1,232,000
120,000 Yahoo! Inc.+ ........................... 3,317,213 2,479,200
------------ ------------
9,503,487 10,061,522
------------ ------------
CONSUMER PRODUCTS -- 1.2%
20,000 Mattel Inc. ............................ 325,232 342,400
3,600 Nintendo Co. Ltd. ...................... 1,052,615 2,030,795
------------ ------------
1,377,847 2,373,195
------------ ------------
ELECTRONICS -- 2.2%
4,000 IMAX Corp.+ ............................ 28,628 27,360
32,000 Intel Corp. ............................ 770,041 687,360
11,000 LSI Corp.+ ............................. 52,972 67,540
3,570 Royal Philips Electronics NV ........... 29,368 120,666
10,000 Samsung Electronics Co. Ltd., GDR (b) .. 1,805,500 2,987,429
10,000 Sony Corp., ADR ........................ 353,687 437,400
6,000 Zoran Corp.+ ........................... 87,649 70,200
------------ ------------
3,127,845 4,397,955
------------ ------------
MARKET
SHARES COST VALUE
------ ------------ ---------
ENTERTAINMENT -- 15.3%
240,000 Aruze Corp ............................. $ 5,785,919 $ 7,119,650
1,161 Corporacion Interamericana
de Entretenimiento
SAB de CV, Cl. B+ ................... 2,441 2,363
22,000 Crown Media Holdings Inc.,
Cl. A+ .............................. 106,890 104,280
27,000 DreamWorks Animation
SKG Inc., Cl. A+ .................... 649,933 804,870
70,000 GMM Grammy
Public Co. Ltd. ..................... 55,457 27,217
77,843 Liberty Global Inc., Cl. A+ ............ 968,833 2,446,606
75,000 Liberty Global Inc., Cl. C+ ............ 906,299 2,277,000
35,500 Liberty Media Corp. -
Capital, Cl. A+ ..................... 127,830 511,200
142,000 Liberty Media Corp. -
Entertainment, Cl. A+ ............... 671,107 3,440,660
1,000 Live Nation Inc.+ ...................... 17,269 10,580
22,891 Macrovision
Solutions Corp.+ .................... 434,858 342,449
1,690 New Motion Inc.+ ....................... 12,500 7,030
100,000 Shaw Brothers
(Hong Kong) Ltd. .................... 145,928 298,823
210,000 SMG plc+ ............................... 250,707 57,514
49,000 The Walt Disney Co. .................... 977,478 1,528,800
230,000 Time Warner Inc. ....................... 3,685,944 3,404,000
75,000 Viacom Inc., Cl. A+ .................... 1,492,814 2,295,750
155,000 Vivendi ................................ 4,633,266 5,881,381
3,000 Warner Music Group Corp. ............... 15,705 21,420
3,000 World Wrestling
Entertainment Inc., Cl. A ........... 33,305 46,410
------------ ------------
20,974,483 30,628,003
------------ ------------
HOTELS AND GAMING -- 7.7%
110,000 Boyd Gaming Corp. ...................... 4,117,277 1,381,600
13,000 Churchill Downs Inc. ................... 409,690 453,310
144,500 Gaylord Entertainment Co.+ ............. 3,588,316 3,462,220
4,500 Greek Organization of
Football Prognostics SA ............. 48,690 157,147
3,000 Host Hotels & Resorts Inc. ............. 61,590 40,950
128,000 International Game
Technology .......................... 3,923,436 3,197,440
482,352 Ladbrokes plc .......................... 4,839,234 2,466,763
27,000 Las Vegas Sands Corp.+ ................. 1,553,046 1,280,880
25,000 Melco Crown
Entertainment Ltd., ADR+ ............ 377,380 233,000
58,000 MGM Mirage+ ............................ 2,191,287 1,965,620
35,000 Pinnacle Entertainment Inc.+ ........... 676,332 367,150
6,000 Starwood Hotels & Resorts
Worldwide Inc. ...................... 151,088 240,420
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ------------ ---------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
HOTELS AND GAMING (CONTINUED)
1,000 Wyndham Worldwide Corp. ................ $ 27,561 $ 17,910
2,000 Wynn Resorts Ltd. ...................... 141,810 162,700
------------ ------------
22,106,737 15,427,110
------------ ------------
PUBLISHING 6.8%
12,000 AH Belo Corp., Cl. A ................... 203,318 68,400
20,000 Arnoldo Mondadori
Editore SpA ......................... 63,827 117,612
90,000 Belo Corp., Cl. A ...................... 1,126,476 657,900
4,000 Gannett Co. Inc. ....................... 184,490 86,680
1,000 Idearc Inc. ............................ 3,740 2,350
105,000 Il Sole 24 Ore ......................... 872,091 612,916
144,400 Independent News &
Media plc ........................... 193,226 354,668
800 John Wiley & Sons Inc., Cl. B .......... 5,693 36,216
48,000 Lee Enterprises Inc. ................... 1,003,829 191,520
15,000 McClatchy Co., Cl. A ................... 352,791 101,700
8,800 Media General Inc., Cl. A .............. 329,846 105,160
22,000 Meredith Corp. ......................... 572,606 622,380
100,000 Nation Multimedia Group
Public Co. Ltd.+ (a) ................ 84,677 22,581
50,000 New Straits Times
Press Berhad ........................ 35,757 24,484
265,000 News Corp., Cl. A ...................... 3,208,101 3,985,600
40,000 News Corp., Cl. B ...................... 396,739 614,000
150,000 Oriental Press Group Ltd. .............. 46,315 21,546
10,000 Playboy Enterprises Inc.,
Cl. A+ .............................. 97,125 53,000
974,000 Post Publishing
Public Co. Ltd. (a) ................. 47,100 150,608
4,000 PRIMEDIA Inc. .......................... 25,576 18,640
2,360 Sanoma WSOY Oyj ........................ 63,150 52,280
1,000 Scholastic Corp.+ ...................... 16,500 28,660
252,671 Singapore Press Holdings Ltd. .......... 742,032 789,278
300 Spir Communication ..................... 23,329 21,255
3,000 Sun-Times Media Group Inc.,
Cl. A+ .............................. 15,140 1,470
15,000 Telegraaf Media Groep NV ............... 285,271 490,049
60,000 The E.W. Scripps Co., Cl. A ............ 2,766,937 2,492,400
38,000 The McGraw-Hill
Companies Inc. ...................... 1,217,995 1,524,560
11,091 United Business Media plc .............. 123,260 120,509
4,000 Wolters Kluwer NV ...................... 90,625 93,460
------------ ------------
14,197,562 13,461,882
------------ ------------
TOTAL COPYRIGHT/ CREATIVITY
COMPANIES ........................... 73,297,965 78,236,279
------------ ------------
MARKET
SHARES COST VALUE
------ ------------ ---------
DISTRIBUTION COMPANIES -- 55.3%
BROADCASTING -- 7.5%
1,560 Asahi Broadcasting Corp. ............... $ 62,912 $ 239,469
6,000 CanWest Global
Communications Corp.+ (a) .............. 52,330 15,628
12,000 CanWest Global
Communications Corp.,
Cl. A+ .............................. 104,661 32,480
18,000 CanWest Global
Communications Corp.,
Sub-Voting+ ......................... 92,011 48,544
70,000 CBS Corp., Cl. A ....................... 820,936 1,363,600
6,400 Chubu-Nippon Broadcasting
Co. Ltd. ............................ 46,375 56,957
6,527 Citadel Broadcasting Corp.+ ............ 19,079 7,963
29,000 Clear Channel
Communications Inc. ................. 1,099,413 1,020,800
20,000 Cogeco Inc. ............................ 388,830 608,022
3,666 Corus Entertainment Inc.,
Cl. B, New York ..................... 7,463 65,621
13,000 Corus Entertainment Inc.,
Cl. B, Toronto ...................... 26,464 231,902
9,000 Cox Radio Inc., Cl. A+ ................. 55,500 106,200
120,000 Discovery Holding Co.,
Cl. A+ .............................. 1,472,928 2,635,200
166 Emmis Communications
Corp., Cl. A+ ....................... 1,741 418
25,040 Fisher Communications Inc.+ ............ 1,109,037 862,378
28 Fuji Television Network Inc. ........... 61,010 42,191
100,000 Gray Television Inc. ................... 1,072,934 287,000
10,000 Gray Television Inc., Cl. A ............ 105,542 45,000
10,000 Grupo Radio Centro
SAB de CV, ADR ...................... 46,871 117,500
30,000 Hearst-Argyle
Television Inc. ..................... 302,404 576,000
4,550 Lagardere SCA .......................... 100,163 259,114
34,000 Lin TV Corp., Cl. A+ ................... 495,214 202,640
4,000 M6 Metropole Television ................ 35,208 86,784
5,140 Media Prima Berhad ..................... 0 2,847
6,200 Nippon Television
Network Corp. ....................... 894,726 708,838
4,650 NRJ Group .............................. 22,694 47,734
1,000 NTN Buzztime Inc.+ ..................... 862 340
500 Radio One Inc., Cl. A+ ................. 5,510 705
1,000 Radio One Inc., Cl. D+ ................. 11,428 1,290
1,500 RTL Group SA, Brussels ................. 76,363 166,499
3,500 RTL Group SA, New York ................. 113,838 397,534
1,906 SAGA Communications Inc.,
Cl. A+ .............................. 9,709 9,549
75,000 Salem Communications
Corp., Cl. A ........................ 912,076 147,750
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
---------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
BROADCASTING (CONTINUED)
80,000 Sinclair Broadcast Group Inc.,
Cl. A ............................... $ 824,936 $ 608,000
25,000 Societe Television
Francaise 1 ......................... 249,649 418,412
5,000 Spanish Broadcasting
System Inc., Cl. A+ ................. 43,950 5,700
50,000 Television Broadcasts Ltd. ............. 187,673 288,563
140,000 Tokyo Broadcasting
System Inc. ......................... 2,676,428 2,656,684
258 TV Asahi Corp. ......................... 434,628 369,318
240,000 TV Azteca SA de CV, CPO ................ 58,305 153,358
26,000 UTV Media plc .......................... 105,595 68,748
17,333 UTV Media plc, NPR+ .................... 0 1,467
75,000 Young Broadcasting Inc.,
Cl. A+ .............................. 264,888 10,500
------------ ------------
14,472,284 14,975,247
------------ ------------
BUSINESS SERVICES -- 0.8%
15,000 BB Holdings Ltd.+ ...................... 60,294 70,875
11,244 Cockleshell Ltd.+ ...................... 0 12,206
1,000 Convergys Corp.+ ....................... 17,738 14,860
100,000 Ideation Acquisition Corp.+ ............ 800,000 780,000
6,000 Impellam Group plc+ .................... 8,600 9,621
8,000 Interactive Data Corp. ................. 52,250 201,040
3,000 Moody's Corp. .......................... 72,575 103,320
2,040 Shellproof Ltd.+ ....................... 2,016 2,458
1,500 Shellshock Ltd.+ ....................... 851 1,957
500 The Dun & Bradstreet Corp. ............. 6,320 43,820
37,000 The Interpublic Group of
Companies Inc.+ ..................... 366,305 318,200
------------ ------------
1,386,949 1,558,357
------------ ------------
CABLE -- 9.1%
16,578 Austar United
Communications Ltd.+ ................ 16,894 17,800
197,000 Cablevision Systems Corp.,
Cl. A+ .............................. 2,097,297 4,452,200
600,000 Charter Communications Inc.,
Cl. A+ .............................. 1,994,170 630,000
40,400 Cogeco Cable Inc. ...................... 828,167 1,465,921
15,000 Comcast Corp., Cl. A ................... 347,167 284,550
10,500 Comcast Corp., Cl. A,
Special ............................. 53,073 196,980
15,000 Mediacom Communications
Corp., Cl. A+ ....................... 126,904 80,100
214,690 Rogers Communications Inc.,
Cl. B, New York ..................... 1,041,694 8,299,915
MARKET
SHARES COST VALUE
---------- ------------ ------------
19,310 Rogers Communications Inc.,
Cl. B, Toronto ...................... $ 148,206 $ 749,146
22,000 Shaw Communications Inc.,
Cl. B, New York ..................... 103,451 447,920
78,000 Shaw Communications Inc.,
Cl. B, Toronto ...................... 105,571 1,592,586
------------ ------------
6,862,594 18,217,118
------------ ------------
CONSUMER SERVICES -- 1.9%
1,000 1-800-FLOWERS.COM Inc.,
Cl. A+ .............................. 9,790 6,450
4,000 Bowlin Travel Centers Inc.+ ............ 3,022 6,300
20,000 H&R Block Inc. ......................... 258,838 428,000
90,000 IAC/InterActiveCorp+ ................... 2,330,242 1,735,200
110,000 Liberty Media Corp. -
Interactive, Cl. A+ ................. 706,497 1,623,600
2,000 Martha Stewart Living
Omnimedia Inc., Cl. A+ ............. 16,500 14,800
4,000 TiVo Inc.+ ............................. 27,942 24,680
------------ ------------
3,352,831 3,839,030
------------ ------------
DIVERSIFIED INDUSTRIAL -- 1.7%
28,500 Bouygues SA ............................ 745,134 1,891,803
18,432 Contax Participacoes
SA, ADR ............................. 7,572 26,539
50,000 General Electric Co. ................... 1,695,100 1,334,500
7,700 Hutchison Whampoa Ltd. ................. 71,267 77,620
7,908 Malaysian Resources Corp.
Berhad .............................. 35,568 2,662
------------ ------------
2,554,641 3,333,124
------------ ------------
ENERGY AND UTILITIES -- 0.2%
20,000 El Paso Electric Co.+ .................. 160,876 396,000
------------ ------------
ENTERTAINMENT -- 5.7%
1,000 Blockbuster Inc., Cl. A+ ............... 3,480 2,500
3,150 British Sky Broadcasting
Group plc, ADR ...................... 56,080 117,778
12,000 Canal+ Groupe .......................... 10,818 115,250
4,005 Chestnut Hill Ventures+ (a) ............ 241,092 112,741
460,000 Grupo Televisa SA, ADR ................. 7,036,883 10,865,200
12,000 Regal Entertainment Group,
Cl. A ............................... 161,110 183,360
5,800 Triple Crown Media Inc.+ ............... 29,340 2,726
------------ ------------
7,538,803 11,399,555
------------ ------------
EQUIPMENT -- 1.9%
11,000 American Tower Corp.,
Cl. A+ .............................. 131,710 464,750
2,000 Amphenol Corp., Cl. A .................. 7,794 89,760
85,000 Corning Inc. ........................... 753,509 1,959,250
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
---------- ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
EQUIPMENT (CONTINUED)
1,500 L-3 Communications Holdings Inc. ...... $ 16,500 $ 136,305
50,000 Motorola Inc. ......................... 538,801 367,000
30,000 Nextwave Wireless Inc.+ ............... 218,023 121,200
2,093 Nortel Networks Corp.+ ............... 56,394 17,139
12,000 QUALCOMM Inc........................... 29,959 532,440
40,000 Sycamore Networks Inc.+ ............... 136,260 128,800
2,000 The Furukawa Electric Co. Ltd. ........ 7,419 8,683
------------ ------------
1,896,369 3,825,327
------------ ------------
FINANCIAL SERVICES -- 0.0%
3,000 Interactive Brokers Group Inc., Cl.
A+ ................................. 68,739 96,390
------------ ------------
FOOD AND BEVERAGE -- 0.1%
5,282 Compass Group plc ..................... 37,648 39,927
2,498 Pernod-Ricard SA ...................... 175,325 256,627
------------ ------------
212,973 296,554
------------ ------------
RETAIL -- 1.6%
75,000 Best Buy Co. Inc. ..................... 3,819,190 2,970,000
10,000 Macy's Inc. ........................... 292,150 194,200
------------ ------------
4,111,340 3,164,200
------------ ------------
SATELLITE -- 2.2%
3,000 Asia Satellite
Telecommunications Holdings Ltd. ... 5,693 4,617
35,000 DISH Network Corp., Cl. A+ ............ 372,313 1,024,800
7,000 EchoStar Corp., Cl. A+ ............... 81,727 218,540
1,000 Lockheed Martin Corp. ................. 27,862 98,660
6,000 PT Indosat Tbk, ADR ................... 58,079 217,380
30 SKY Perfect JSAT Holdings Inc. ........ 15,472 12,219
110,000 The DIRECTV Group Inc.+ ............... 2,392,855 2,850,100
------------ ------------
2,954,001 4,426,316
------------ ------------
TELECOMMUNICATIONS: LONG
DISTANCE -- 2.2%
15,000 AT&T Inc. ............................. 353,822 505,350
2,000 Embarq Corp. .......................... 61,748 94,540
35,000 Philippine Long Distance
Telephone Co., ADR .................... 597,989 1,869,700
64,500 Sprint Nextel Corp. ................... 964,816 612,750
1,000 Startec Global Communications
Corp.+ (a) ......................... 4,645 2
600,000 Telecom Italia SpA .................... 1,660,799 1,209,182
10,000 Windstream Corp. ...................... 31,139 123,400
------------ ------------
3,674,958 4,414,924
------------ ------------
SHARES/ MARKET
UNITS COST VALUE
------ ------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 6.7%
9,000 BT Group plc, ADR ..................... $ 375,870 $ 357,570
5,000 China Telecom Corp.
Ltd., ADR .......................... 126,250 271,950
5,000 China Unicom Ltd., ADR ................ 38,450 92,600
34,000 Compania de Telecomunicaciones
de Chile SA, ADR ................... 556,750 195,840
158,000 Deutsche Telekom AG, ADR .............. 2,198,641 2,586,460
49,000 Elisa Oyj.............................. 512,934 1,028,388
1,389 FairPoint
Communications Inc. ................ 12,352 10,015
3,000 France Telecom SA, ADR ................ 48,120 88,890
3,305 Hellenic Telecommunications
Organization SA .................... 39,578 83,257
500 Magyar Telekom
Telecommunications plc, ADR ........ 9,650 12,080
50 Nippon Telegraph &
Telephone Corp. .................... 230,089 244,856
4,320 PT Telekomunikasi
Indonesia, ADR ........................ 18,513 139,320
6,000 Rostelecom, ADR ....................... 41,408 435,180
44,000 Swisscom AG, ADR ...................... 1,187,137 1,471,923
2,844 Telecom Corp. of New
Zealand Ltd., ADR ..................... 24,405 38,422
54,000 Telefonica SA, ADR .................... 1,314,668 4,297,320
38,000 Telefonos de Mexico SAB
de CV, Cl. L, ADR ..................... 104,952 899,840
18,172 TeliaSonera AB ........................ 51,070 134,575
38,000 Telmex Internacional SAB
de CV, ADR+ ........................ 72,932 611,800
2,400 Telstra Corp. Ltd., ADR ............... 30,324 48,827
20,000 tw telecom inc.+ ...................... 341,155 320,600
100 Virgin Media Inc. ..................... 2,344 1,361
------------ ------------
7,337,592 13,371,074
------------ ------------
TELECOMMUNICATIONS: REGIONAL -- 7.3%
50,000 BCE Inc. .............................. 1,400,531 1,740,500
4,266 Bell Aliant Regional
Communications Income Fund ......... 67,481 121,659
2,537 Bell Aliant Regional
Communications
Income Fund+ (a)(b) ................ 40,134 73,776
4,000 Brasil Telecom
Participacoes SA, ADR............... 231,475 293,480
14,000 CenturyTel Inc. ....................... 430,780 498,260
80,000 Cincinnati Bell Inc.+ ................. 514,610 318,400
50,000 Citizens Communications Co. ........... 706,774 567,000
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ------------ ------------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS: REGIONAL (CONTINUED)
180,000 Qwest Communications
International Inc. .................. $ 758,665 $ 707,400
18,432 Tele Norte Leste
Participacoes SA, ADR ............... 244,808 459,141
10,000 Telecom Argentina SA, ADR+ ............. 26,440 142,500
65,000 Telephone & Data Systems Inc. .......... 2,452,490 3,072,550
50,000 Telephone & Data
Systems Inc., Special ............... 1,950,017 2,205,000
40,000 TELUS Corp. ............................ 722,455 1,681,671
73,660 Verizon Communications Inc. ............ 2,458,049 2,607,564
------------ ------------
12,004,709 14,488,901
------------ ------------
WIRELESS COMMUNICATIONS -- 6.4%
90,000 America Movil SAB de CV,
Cl. L, ADR .......................... 506,199 4,747,500
8,000 Clearwire Corp., Cl. A+ ................ 117,075 103,680
2,513 Grupo Iusacell SA de CV+ ............... 9,492 24,367
102 Hutchison Telecommunications
International Ltd.+ ................. 79 145
240,000 Jasmine International Public
Co. Ltd.+ (a) ....................... 5,040 3,517
1,200 NTT DoCoMo Inc. ........................ 1,845,771 1,762,961
30,000 Price Communications Corp.,
Escrow+ (a) ......................... 0 0
10,800 Rural Cellular Corp., Cl. A+ ........... 22,788 480,708
37,000 SK Telecom Co. Ltd., ADR ............... 828,800 768,490
330 Tele Norte Celular
Participacoes SA, ADR ............... 5,098 6,402
503 Telemig Celular
Participacoes SA, ADR ............... 14,537 29,928
3,178 Tim Participacoes SA, ADR .............. 38,554 90,351
30,000 United States Cellular Corp.+ .......... 1,127,334 1,696,500
89,000 Vimpel-Communications, ADR ............. 118,168 2,641,520
9,401 Vivo Participacoes SA, ADR+ ............ 22,019 59,790
8,750 Vodafone Group plc, ADR ................ 168,145 257,775
200 Xanadoo Co.+ .......................... 143,565 63,000
------------ ------------
4,972,664 12,736,634
------------ ------------
TOTAL DISTRIBUTION COMPANIES ........... 73,562,323 110,538,751
------------ ------------
TOTAL COMMON STOCKS .................... 146,860,288 188,775,030
------------ ------------
MARKET
SHARES COST VALUE
------ ------------ ------------
PREFERRED STOCKS -- 0.0%
BUSINESS SERVICES -- 0.0%
2,159 Interep National Radio Sales Inc.,
4.000% Cv. Pfd.,
Ser. A (a)(b)(c)+ ................... $ 192,575 $ 0
------------ ------------
RIGHTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad,
expire 07/18/08+ .................... 1,353 1,778
------------ ------------
WARRANTS -- 0.0%
BROADCASTING -- 0.0%
2,250 Granite Broadcasting Corp.,
Ser. A, expire 06/04/12+ ............ 0 112
254 Granite Broadcasting Corp.,
Ser. B, expire 06/04/12+ ............ 0 64
5,140 Media Prima Berhad,
expire 07/31/08+ .................... 135 944
------------ ------------
TOTAL WARRANTS ......................... 135 1,120
------------ ------------
PRINCIPAL
AMOUNT
----------
CONVERTIBLE CORPORATE BONDS -- 0.0%
BUSINESS SERVICES -- 0.0%
$ 50,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a) ............... 49,478 0
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 5.6%
11,128,000 U.S. Treasury Bills,
1.203% to 1.961%++,
07/03/08 to 10/09/08 ................ 11,096,225 11,092,840
------------ ------------
TOTAL INVESTMENTS -- 100.0% ......................... $158,200,054 199,870,768
============
OTHER ASSETS AND LIABILITIES (NET) .................. (408,786)
PREFERRED STOCK
(994,100 preferred shares outstanding) ........... (49,827,500)
------------
NET ASSETS -- COMMON STOCK
(13,994,153 common shares outstanding) ........... $149,634,482
============
NET ASSET VALUE PER COMMON SHARE
($149,634,482 / 13,994,153 shares outstanding) ... $ 10.69
============
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 2008 (UNAUDITED)
----------
(a) 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, 2008, the
market value of fair valued securities amounted to $378,863 or 0.19% of
total investments.
(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,
2008, the market value of Rule 144A securities amounted to $3,061,205 or
1.53% of total investments.
(c) Illiquid security.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
CPO Ordinary Participation Certificate
GDR Global Depositary Receipt
NPR NIL Paid Rights
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------------
North America ............ 63.8% $127,605,601
Europe ................... 14.7 29,324,047
Latin America ............ 9.5 19,069,282
Japan .................... 7.9 15,707,452
Asia/Pacific ............. 4.1 8,164,386
------ ------------
Total Investments ........ 100.0% 199,870,768
====== ============
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2008 (UNAUDITED)
ASSETS:
Investments, at value (cost $158,200,054) .................... $199,870,768
Foreign currency, at value (cost $9,626) ..................... 9,233
Dividends and interest receivable ............................ 461,301
Deferred offering expense .................................... 26,018
Prepaid expense .............................................. 3,726
------------
TOTAL ASSETS ................................................. 200,371,046
------------
LIABILITIES:
Payable to custodian ......................................... 336,511
Unrealized depreciation on swap contracts .................... 107,557
Distributions payable ........................................ 34,069
Payable for investments purchased ............................ 16,080
Payable for investment advisory fees ......................... 134,018
Payable for payroll expenses ................................. 88,342
Payable for accounting fees .................................. 3,733
Payable for shareholder communications expenses .............. 84,773
Payable for legal and audit fees ............................. 48,513
Other accrued expenses ....................................... 55,468
------------
TOTAL LIABILITIES ............................................ 909,064
------------
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 SHAREHOLDERS ............... $149,634,482
============
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
CONSIST OF:
Paid-in capital, at $0.001 par value ......................... $113,096,068
Accumulated distributions in excess of net
investment income ......................................... (16,457)
Accumulated distributions in excess of net realized
gain on investments, swap contracts, and
foreign currency transactions ............................. (4,999,380)
Net unrealized appreciation on investments ................... 41,670,714
Net unrealized depreciation on swap contracts ................ (107,557)
Net unrealized depreciation on foreign
currency translations ..................................... (8,906)
------------
NET ASSETS ................................................... $149,634,482
============
NET ASSET VALUE PER COMMON SHARE
($149,634,482 / 13,994,153 shares outstanding;
196,750,000 shares authorized) ............................ $ 10.69
============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $247,430) ................. $ 2,724,433
Interest ..................................................... 103,159
------------
TOTAL INVESTMENT INCOME ...................................... 2,827,592
------------
EXPENSES:
Investment advisory fees ..................................... 1,104,602
Shareholder communications expenses .......................... 111,764
Payroll expenses ............................................. 53,395
Shareholder services fees .................................... 45,765
Legal and audit fees ......................................... 42,234
Custodian fees ............................................... 40,913
Directors' fees .............................................. 32,813
Auction agent fees ........................................... 31,200
Accounting fees .............................................. 22,500
Interest expense ............................................. 154
Miscellaneous expenses ....................................... 37,136
------------
TOTAL EXPENSES ............................................... 1,522,476
Less:
Advisory fee reduction .................................... (247,776)
Custodian fee credits ..................................... (203)
------------
NET EXPENSES ................................................. 1,274,497
------------
NET INVESTMENT INCOME ........................................ 1,553,095
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
SWAP CONTRACTS, AND FOREIGN CURRENCY:
Net realized gain on investments ............................. 1,121,343
Net realized gain on swap contracts .......................... 1,589
Net realized loss on foreign currency transactions ........... (14,279)
------------
Net realized gain on investments, swap contracts,
and foreign currency transactions ......................... 1,108,653
------------
Net change in unrealized appreciation/depreciation:
on investments ............................................ (48,895,829)
on swap contracts ......................................... (123,431)
on foreign currency translations .......................... (12,422)
------------
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign
currency translations ..................................... (49,031,682)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS, AND
FOREIGN CURRENCY .......................................... (47,923,029)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................... (46,369,934)
------------
Total Distributions to Preferred Shareholders ................... (1,229,558)
------------
NET DECREASE IN NET ASSETS ATTRIBUTABLE TO COMMON
SHAREHOLDERS RESULTING FROM OPERATIONS ....................... $(47,599,492)
============
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, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
------------- -----------------
OPERATIONS:
Net investment income ........................................ $ 1,553,095 $ 980,284
Net realized gain on investments, swap contracts, and foreign
currency transactions ..................................... 1,108,653 12,760,725
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign currency
translations .............................................. (49,031,682) 3,734,091
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS ................................................ (46,369,934) 17,475,100
------------ ------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:
Net investment income ........................................ (717,431)* (292,363)
Net realized short-term gain on investments, swap contracts,
and foreign currency transactions ......................... -- (992,507)
Net realized long-term gain on investments, swap contracts,
and foreign currency transactions ......................... (512,127)* (1,532,763)
------------ ------------
TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS ................ (1,229,558) (2,817,633)
------------ ------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS ................................. (47,599,492) 14,657,467
------------ ------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ........................................ (835,664)* (1,091,095)
Net realized short-term gain on investments, swap contracts,
and foreign currency transactions ......................... -- (3,681,967)
Net realized long-term gain on investments, swap contracts,
and foreign currency transactions ......................... (596,526)* (5,714,592)
Return of capital ............................................ (2,766,266)* (17,111)
------------ ------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS ................... (4,198,456) (10,504,765)
------------ ------------
FUND SHARE TRANSACTIONS:
Net decrease from repurchase of common shares ................ (73,840) (230,817)
------------ ------------
NET DECREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS ...... (73,840) (230,817)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO
COMMON SHAREHOLDERS ....................................... (51,871,788) 3,921,885
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Beginning of period .......................................... 201,506,270 197,584,385
------------ ------------
End of period (including undistributed net investment income
of $0 and $0, respectively) ............................... $149,634,482 $201,506,270
============ ============
----------
* Based on fiscal year to date book income. Amounts are subject to change and
recharacterization at fiscal year end.
See accompanying notes to financial statements.
10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2008 ------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
------------- ------ ------ ------ ------ ------
SELECTED DATA FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD:
OPERATING PERFORMANCE:
Net asset value, beginning of period .................. $14.39 $14.09 $11.77 $12.27 $10.56 $ 7.67
------ ------ ------ ------ ------ ------
Net investment income (loss) .......................... 0.11 0.10 0.29 0.16 0.04 (0.03)
Net realized and unrealized gain (loss) on investments,
swap contracts and foreign currency transactions ... (3.42) 1.15 2.85 0.09 1.79 3.14
------ ------ ------ ------ ------ ------
Total from investment operations ...................... (3.31) 1.25 3.14 0.25 1.83 3.11
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS:(A)
Net investment income ................................. (0.05)* (0.02) (0.07) (0.03) (0.04) --
Net realized gain on investments, swap contracts, and
foreign currency transactions ...................... (0.04)* (0.18) (0.12) (0.13) (0.09) (0.13)
------ ------ ------ ------ ------ ------
Total distributions to preferred shareholders ......... (0.09) (0.20) (0.19) (0.16) (0.13) (0.13)
------ ------ ------ ------ ------ ------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE
TO COMMON SHAREHOLDERS RESULTING
FROM OPERATIONS .................................... (3.40) 1.05 2.95 0.09 1.70 2.98
------ ------ ------ ------ ------ ------
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
Net investment income ................................. (0.06)* (0.08) (0.23) (0.12) -- --
Net realized gain on investments, swap contracts, and
foreign currency transactions ...................... (0.04)* (0.67) (0.40) (0.48) -- --
Return of capital ..................................... (0.20)* (0.00)(e) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions to common shareholders ............ (0.30) (0.75) (0.63) (0.60) -- --
------ ------ ------ ------ ------ ------
FUND SHARE TRANSACTIONS:
Increase in net asset value from repurchase of
common shares ...................................... 0.00(e) 0.00(e) 0.00(e) 0.01 0.01 0.01
Increase in net asset value from repurchase of
preferred shares ................................... -- -- -- -- 0.00(e) --
Offering expenses charged to paid-in capital .......... -- -- -- (0.00)(e) -- (0.10)
------ ------ ------ ------ ------ ------
Total fund share transactions ......................... 0.00(e) 0.00(e) 0.00(e) 0.01 0.01 (0.09)
------ ------ ------ ------ ------ ------
NET ASSET VALUE ATTRIBUTABLE TO COMMON
SHAREHOLDERS, END OF PERIOD ........................ $10.69 $14.39 $14.09 $11.77 $12.27 $10.56
====== ====== ====== ====== ====== ======
NAV total return + .................................... (23.39)% 8.03% 26.65% 1.6% 16.2% 37.7%
====== ====== ====== ====== ====== ======
Market value, end of period ........................... $ 9.21 $12.89 $12.27 $10.15 $10.68 $ 9.07
====== ====== ====== ====== ====== ======
Investment total return ++ ............................ (26.31)% 11.13% 27.89% 0.7% 17.8% 41.7%
====== ====== ====== ====== ====== ======
See accompanying notes to financial statements.
11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2008 ---------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
------------- -------- -------- -------- -------- --------
SELECTED DATA FOR A COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD:
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation value of preferred
shares, end of period (in 000's) ................... $199,462 $251,334 $247,412 $214,907 $223,739 $200,195
Net assets attributable to common shares,
end of period (in 000's) ........................... $149,634 $201,506 $197,584 $165,079 $173,912 $150,195
Ratio of net investment income (loss) to average
net assets attributable to common shares before
preferred share distributions ...................... 1.81%(f) 0.46% 2.17% 1.44% 0.71% (0.36)%
Ratio of operating expenses to average net assets
attributable to common shares net of advisory
fee reduction, if any (b) .......................... 1.49%(f) 1.62% 1.79% 1.55% 1.87% 1.81%
Ratio of operating expenses to average net assets
including liquidation value of preferred shares net
of advisory fee reduction, if any (b) .............. 1.15%(f) 1.32% 1.39% 1.20% 1.41% 1.35%
Portfolio turnover rate +++ ........................... 1.9% 14.5% 9.8% 12.4% 7.5% 10.9%
PREFERRED STOCK:
6.00% SERIES B CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... $ 24,828 $ 24,828 $ 24,828 $ 24,828 $ 24,828 $ 25,000
Total shares outstanding (in 000's) ................... 993 993 993 993 993 1,000
Liquidation preference per share ...................... $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00
Average market value (c) .............................. $ 24.02 $ 24.14 $ 24.12 $ 25.00 $ 24.84 $ 25.28
Asset coverage per share .............................. $ 100.08 $ 126.10 $ 124.13 $ 107.83 $ 112.26 $ 100.10
SERIES C AUCTION RATE CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ........... $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Total shares outstanding (in 000's) ................... 1 1 1 1 1 1
Liquidation preference per share ...................... $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Average market value (c) .............................. $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Asset coverage per share .............................. $100,075 $126,101 $124,134 $107,825 $112,257 $100,097
ASSET COVERAGE (d) .................................... 400% 504% 497% 431% 449% 400%
----------
+ Based on net asset value per share, adjusted for reinvestment of
distributions at prices obtained under the Fund's dividend reinvestment
plan. Total return for a period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of distributions
at prices obtained under the Fund's dividend reinvestment plan. Total
return for a period of less than one year is not annualized.
+++ Effective in 2008, a change in accounting policy was adopted with regard to
the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended December 31, 2007, 2006, 2005, 2004, and 2003 would have been 14.8%,
16.5%, 14.5%, 8.9%, and 17.5%, respectively.
* Based on fiscal year to date book income. Amounts are subject to change and
recharacterization at fiscal year end.
(a) Calculated based upon average common shares outstanding on the record dates
throughout the year.
(b) For the six months ended June 30, 2008 and the fiscal years ended December
31, 2007, 2006, and 2005, the effect of the custodian fee credits was
minimal.
(c) Based on weekly prices.
(d) Asset coverage is calculated by combining all series of preferred stock.
(e) Amount represents less than $0.005 per share.
(f) Annualized.
See accompanying notes to financial statements.
12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Multimedia Trust Inc. (the "Fund") 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 Fund commenced investment operations on
November 15, 1994. The Fund's primary objective is long-term growth of capital
with income as a secondary objective.
The Fund 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 Fund
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 United States ("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 Fund 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 a foreign market are generally
valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board
if market conditions change significantly after the close of the foreign market
but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of 60 days or less that are not
credit impaired 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 fair valued 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 average of the latest 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 fair valued as determined by 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.
On January 1, 2008, the Fund adopted Statement of Financial Accounting
Standard No. 157, "Fair Value Measurements" ("SFAS 157") that clarifies the
definition of fair value for financial reporting, establishes a framework for
measuring fair value, and requires additional disclosures about the use of fair
value measurements. The three levels of the fair value hierarchy under SFAS 157
are described below:
- Level 1 - quoted prices in active markets for identical securities;
- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds, credit
risk, etc.); and
- Level 3 - significant unobservable inputs (including the Fund's
determinations as to the fair value of investments).
13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. The
summary of inputs used to value the Fund's net assets as of June 30, 2008 is as
follows:
INVESTMENTS IN OTHER FINANCIAL
SECURITIES INSTRUMENTS (UNREALIZED
VALUATION INPUTS (MARKET VALUE) DEPRECIATION)*
----------------- -------------- -----------------------
Level 1 - Quoted Prices ......................... $188,646,030 --
Level 2 - Other Significant Observable Inputs ... 11,111,995 $(107,557)
Level 3 - Significant Unobservable Inputs ....... 112,743 --
------------ ---------
TOTAL ........................................... $199,870,768 $(107,557)
============ =========
----------
* Other financial instruments are derivative instruments not reflected in the
Schedule of Investments, such as futures, forwards, and swaps which are
valued at the unrealized appreciation/depreciation on the investment.
The following is a reconciliation of Level 3 investments for which
significant unobservable inputs were used to determine fair value:
INVESTMENTS
IN SECURITIES
(MARKET VALUE)
--------------
BALANCE AS OF 12/31/07 .......................... $114,186
Accrued discounts/premiums ...................... --
Realized gain (loss) ............................ 2,573
Change in unrealized appreciation/depreciation .. (1,443)
Net purchases (sales) ........................... (2,573)
Transfers in and/or out of Level 3 .............. --
--------
BALANCE AS OF 06/30/08 .......................... $112,743
========
In March 2008, The Financial Accounting Standards Board (The "FASB") issued
Statement of Financial Accounting Standard No. 161, "Disclosures about
Derivative Instruments and Hedging Activities" ("SFAS 161") that is effective
for fiscal years beginning after November 15, 2008. SFAS 161 is intended to
improve financial reporting for derivative instruments by requiring enhanced
disclosure that enables investors to understand how and why an entity uses
derivatives, how derivatives are accounted for, and how derivative instruments
affect an entity's results of operations and financial position. Management is
currently evaluating the implications of SFAS 161 on the Fund's financial
statement disclosures.
REPURCHASE AGREEMENTS. The Fund 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 repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund 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 Fund in each agreement. The Fund 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 Fund may be delayed or limited. At June 30,
2008, there were no open repurchase agreements.
SWAP AGREEMENTS. The Fund may enter into interest rate swap or cap
transactions. The use of swaps and caps is a highly specialized activity that
involves investment techniques and risks different from those associated with
ordinary portfolio transactions. Swap agreements may 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. In an interest rate swap, the Fund 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 Fund periodically a variable rate payment that is intended to
approximate the Fund's variable rate payment obligation on Series C Preferred
Stock. In an interest rate cap,
14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
the Fund 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 that counterparty payments of the difference based on the notional amount
of such cap. Interest rate swap and cap transactions introduce additional risk
because the Fund 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
Fund 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 a swap contract or that, in
the event of default, the Fund will succeed in pursuing contractual remedies.
The Fund thus assumes the risk that it may be delayed in or prevented from
obtaining payments owed to it pursuant to a swap contract. 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 Fund's portfolio securities at that point in time, such a default
could negatively affect the Fund's ability to make dividend payments. In
addition, at the time an interest rate swap or cap transaction reaches its
scheduled termination date, there is a risk that the Fund 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 Fund's ability to make dividend payments.
The use of derivative instruments involves, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized below.
Unrealized gains related to swaps are reported as an asset and unrealized
losses are reported as a liability in 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.
The Fund has entered into an interest rate swap agreement with Citibank
N.A. Under the agreement, the Fund receives a floating rate of interest and pays
a respective fixed rate of interest on the nominal value of the swap. Details of
the swap at June 30, 2008 are as follows:
NOTIONAL FLOATING RATE* TERMINATION NET UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE DEPRECIATION
----------- ---------- -------------------- ----------- --------------
$10,000,000 4.32% 2.45563% 04/04/13 $(107,557)
----------
* Based on Libor (London Interbank Offered Rate).
FUTURES CONTRACTS. The Fund 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. Upon entering into a futures
contract, the Fund 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 Fund each day, depending on the daily fluctuations in the
value of the contract, which are included in unrealized
appreciation/depreciation on investments and futures contracts. The Fund
recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as
a hedging instrument. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition, there
is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. At June 30, 2008, there were no open
futures contracts.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Fund 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 Fund 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.
15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Fund'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. In addition, the Fund could be
exposed to risks if the counterparties to the contracts are unable to meet the
terms of their contracts. At June 30, 2008, there were no open forward foreign
exchange contracts.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are
maintained in U.S. dollars. Foreign currencies, investments, and other assets
and liabilities are translated into U.S. dollars at the current exchange rates.
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 that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
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 Fund 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 Fund 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.
FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Fund will accrue such taxes and recoveries as applicable, based upon its
current interpretation of tax rules and regulations that exist in the markets in
which it invests.
RESTRICTED AND ILLIQUID SECURITIES. The Fund may invest up to 15% of its
net assets in securities for which the markets are illiquid. Illiquid securities
include securities the disposition of which is subject to substantial legal or
contractual restrictions. The sale of illiquid securities often requires more
time and results in higher brokerage charges or dealer discounts and other
selling expenses than does the sale of securities eligible for trading on
national securities exchanges or in the over-the-counter markets. Restricted
securities may sell at a price lower than similar securities that are not
subject to restrictions on resale. Securities freely saleable among qualified
institutional investors under special rules adopted by the SEC may be treated as
liquid if they satisfy liquidity standards established by the Board. The
continued liquidity of such securities is not as well assured as that of
publicly traded securities, and accordingly the Board will monitor their
liquidity.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on 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 on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are
maintained in the custody account, the Fund receives credits which are used to
offset custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits." When cash balances are
overdrawn, the Fund is charged an overdraft fee of 2.00% above the federal funds
rate on outstanding balances. This amount, if any, would be shown as "interest
expense" in the Statement of Operations.
16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to common shareholders are
recorded on the ex-dividend date. Distributions to shareholders are based on
income and capital gains as determined in accordance with federal income tax
regulations, which may differ from income and capital gains as determined under
U.S. generally accepted accounting principles. These differences are primarily
due to differing treatments of income and gains on various investment securities
and foreign currency transactions held by the Fund, timing differences, and
differing characterizations of distributions made by the Fund. Distributions
from net investment income include net realized gains on foreign currency
transactions. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, adjustments are made to
the appropriate capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund.
Distributions to shareholders of the Fund'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.
The tax character of distributions paid during the year ended December 31,
2007 was as follows:
COMMON PREFERRED
----------- ----------
DISTRIBUTIONS PAID FROM:
Ordinary income
(inclusive of short-term capital gains) .. $ 4,842,031 $1,300,869
Net long-term capital gains ................. 5,645,623 1,516,764
Return of capital ........................... 17,111 --
----------- ----------
Total distributions paid .................... $10,504,765 $2,817,633
=========== ==========
PROVISION FOR INCOME TAXES. The Fund 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 policy of the Fund 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.
As of December 31, 2007, the components of accumulated earnings/(losses) on
a tax basis were as follows:
Net unrealized appreciation on investments ............... $88,708,126
Net unrealized appreciation on foreign currency and swap
contracts ............................................ 19,390
Other temporary differences* ............................. (3,157,420)
-----------
Total .................................................... $85,570,096
===========
----------
* Other temporary differences is primarily due to qualified five year tax
gain adjustments.
The following summarizes the tax cost of investments, swap contracts, and
the related unrealized appreciation/(depreciation) at June 30, 2008:
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ------------ --------------
Investments ........ $159,992,932 $63,848,133 $(23,970,297) $39,877,836
Swap contracts ..... -- -- (107,557) (107,557)
------------ ----------- ------------ -----------
$159,992,932 $63,848,133 $(24,077,854) $39,770,279
============ =========== ============ ===========
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" (the "Interpretation") established a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether the Fund is taxable in
a particular jurisdiction) and required certain expanded tax disclosures.
For the six months ended June 30, 2008, the Fund did not have any liability
for any unrecognized tax benefits. The Fund recognizes interest and penalties,
if any, related to unrecognized tax benefits as income tax expenses in the
Statement of Operations. The Fund is not subject to examination by U.S. federal
tax authorities for tax years before 2004 and by state tax authorities for tax
years before 2003.
17
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Fund has entered into an
investment advisory agreement (the "Advisory Agreement") with the Adviser which
provides that the Fund will pay the Adviser a fee, computed weekly and paid
monthly, equal on an annual basis to 1.00% of the value of the Fund'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 Fund's portfolio and oversees the administration of
all aspects of the Fund'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 NAV of the common shares of the Fund,
including distributions and advisory fee subject to reduction, does not exceed
the stated dividend rate or corresponding swap rate of each particular series of
the Cumulative Preferred Stock for the fiscal year.
The Fund's total return on the NAV of the common shares is monitored on a
monthly basis to assess whether the total return on the NAV of the common shares
exceeds the stated dividend rate or corresponding swap rate of each particular
series of Cumulative Preferred Stock for the period. For the six months ended
June 30, 2008, the Fund's total return on the NAV of the common shares did not
exceed the stated dividend rate or net swap expense on any of the outstanding
Preferred Stock. Thus, management fees with respect to the liquidation value of
the preferred share assets were reduced by $247,776.
During the six months ended June 30, 2008, the Fund paid brokerage
commissions on security trades of $7,781 to Gabelli & Company, Inc. ("Gabelli &
Company"), an affiliate of the Adviser.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant
to the Advisory Agreement between the Fund and the Adviser. During the six
months ended June 30, 2008, the Fund paid or accrued $22,500 to the Adviser in
connection with the cost of computing the Fund's NAV.
As per the approval of the Board, the Fund compensates officers of the
Fund, who are employed by the Fund and are not employed by the Adviser (although
officers may receive incentive based variable compensation from affiliates of
the Adviser) and pays its allocated portion of the cost of the Fund's Chief
Compliance Officer. For the six months ended June 30, 2008 the Fund paid or
accrued $53,395, which is included in payroll expenses in the Statement of
Operations.
The Fund pays each Director who is not considered to be an affiliated
person an annual retainer of $6,000 plus $500 for each Board meeting attended
and they are reimbursed for any out of pocket expenses incurred in attending
meetings. All Board committee members receive $500 per meeting attended. In
addition, the Audit Committee Chairman receives an annual fee of $3,000, the
Nominating Committee Chairman receives an annual fee of $2,000, and the Lead
Director receives an annual fee of $1,000. Directors who are directors or
employees of the Adviser or an affiliated company receive no compensation or
expense reimbursement from the Fund.
4. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2008, other than short-term securities and U.S.
Government obligations, aggregated $4,079,237 and $23,007,777, respectively.
5. CAPITAL. The charter permits the Fund to issue 196,750,000 shares of common
stock (par value $0.001). The Board has authorized the repurchase of up to
1,700,000 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 NAV of the shares. During the six months ended June 30, 2008, the
Fund repurchased 7,200 shares of its common stock in the open market at a cost
of $73,840 and an average discount of approximately 12.96% from its NAV. All
shares of common stock repurchased have been retired.
Transactions in common stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
----------------- -------------------
SHARES AMOUNT SHARES AMOUNT
------ -------- ------- ---------
Net decrease from repurchase of common shares ... (7,200) $(73,840) (17,000) $(230,817)
18
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The Fund'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 Fund 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 Fund fails to meet these requirements and
does not correct such failure, the Fund may be required to redeem, in part or in
full, the 6.00% Series B and Series C Auction Rate Cumulative Preferred Stock at
redemption prices 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 Fund's ability to pay
dividends to common shareholders and could lead to sales of portfolio securities
at inopportune times. The income received on the Fund'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.
At the Fund's November 14, 2007 Board meeting, the Board approved the
filing of a shelf registration with the SEC which will give the Fund the ability
to offer additional preferred shares. The shelf registration was declared
effective by the SEC on June 12, 2008.
On March 31, 2003, the Fund 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 Fund, 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 6.00%
Series B Cumulative Preferred Stock in the open market at prices less than the
$25 liquidation value per share. During the six months ended June 30, 2008, the
Fund did not repurchase any shares of 6.00% Series B Cumulative Preferred Stock.
At June 30, 2008, 993,100 shares of 6.00% Series B Cumulative Preferred Stock
were outstanding and accrued dividends amounted to $20,690.
On March 31, 2003, the Fund 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 seven days, is expected to vary with short-term interest rates. If the
number of Series C Auction Rate Cumulative Preferred Stock subject to bid orders
by potential holders is less than the number of Series C Auction Rate Cumulative
Preferred Stock subject to sell orders, then the auction is considered to be a
failed auction, and the dividend rate will be the maximum rate. In that event,
holders that have submitted sell orders may not be able to sell any or all of
the Series C Auction Rate Cumulative Preferred Stock for which they have
submitted sell orders. The current maximum rate is 150% of the "AA" Financial
Composite Commercial Paper Rate on the date of such auction. The dividend rates
of Series C Auction Rate Cumulative Preferred Stock ranged from 2.926% to 5.350%
for the six months ended June 30, 2008. 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 Fund, 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, 2008, the Fund did not redeem any
shares of Series C Auction Rate Cumulative Preferred Stock. At June 30, 2008,
1,000 shares of Series C Auction Rate Cumulative Preferred Stock were
outstanding with an annualized dividend rate of 3.211% per share and accrued
dividends amounted to $13,379.
19
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The holders of Cumulative Preferred Stock generally are entitled to one
vote per share held on each matter submitted to a vote of shareholders of the
Fund and will vote together with holders of common stock as a single class. The
holders of Cumulative Preferred Stock voting together as a single class also
have the right currently to elect two Directors and under certain circumstances
are entitled to elect a majority of the Board of Directors. In addition, the
affirmative vote of a majority of the votes entitled to be cast by holders of
all outstanding shares of the preferred stock, voting as a single class, will be
required to approve any plan of reorganization adversely affecting the preferred
stock, and the approval of two-thirds of each class, voting separately, of the
Fund's outstanding voting stock must approve the conversion of the Fund from a
closed-end to an open-end investment company. The approval of a majority (as
defined in the 1940 Act) of the outstanding preferred stock and a majority (as
defined in the 1940 Act) of the Fund's outstanding voting securities are
required to approve certain other actions, including changes in the Fund's
investment objectives or fundamental investment policies.
6. INDUSTRY CONCENTRATION. Because the Fund 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. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
8. OTHER MATTERS. On April 24, 2008, the Adviser entered into an administrative
settlement with the SEC to resolve the SEC's inquiry regarding prior frequent
trading activity in shares of the GAMCO Global Growth Fund (the "Global Growth
Fund") by one investor who was banned from the Global Growth Fund in August
2002. In the settlement, the SEC found that the Adviser had violated Section
206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule
17d-1 thereunder, and had aided and abetted and caused violations of Section
12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser,
while neither admitting nor denying the SEC's findings and allegations, agreed,
among other things, to pay the previously reserved total of $16 million
(including a $5 million penalty), of which at least $11 million will be
distributed to shareholders of the Global Growth Fund in accordance with a plan
to be developed by an independent distribution consultant and approved by the
independent directors of the Global Growth Fund and the staff of the SEC, and to
cease and desist from future violations of the above referenced federal
securities laws. The settlement will not have a material adverse impact on the
Adviser or its ability to fulfill its obligations under the Advisory Agreement.
On the same day, the SEC filed a civil action against the Executive Vice
President and Chief Operating Officer of the Adviser, alleging violations of
certain federal securities laws arising from the same matter. The officer is
also an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO
fund complex. The officer denies the allegations and is continuing in his
positions with the Adviser and the funds. The Adviser currently expects that any
resolution of the action against the officer will not have a material adverse
impact on the Adviser or its ability to fulfill its obligations under the
Advisory Agreement.
On a separate matter, in August 2008, the Adviser made an offer to the
staff of the SEC to settle a previously disclosed matter concerning compliance
with Section 19(a) and Rule 19a-1 of the 1940 Act by two closed-end funds
managed by the Adviser. These provisions require registered investment companies
to provide written statements to shareholders when a distribution is made in the
nature of a dividend from a source other than net investment income. While the
two funds sent annual statements and provided other materials containing this
information, the funds did not send the notices required by Rule 19a-1 to
shareholders with each distribution in 2002 and 2003. The Adviser believes that
the funds have been in compliance with Rule 19a-1 since that time. The Adviser
believes that the settlement would have no effect on the funds or any material
adverse effect on the Adviser or its ability to manage the funds. This offer of
settlement is subject to final agreement regarding the specific language of the
SEC's administrative order and other settlement documents and approval by the
SEC.
20
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
BOARD CONSIDERATION AND RE-APPROVAL OF
INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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 Board Members"), 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 22, 2008, the Board, including the
Independent Board Members 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 Independent Board Members
considered the nature, quality, and extent of administrative and shareholder
services performed by the Adviser, 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 Board Members in their capacity as directors,
and other services. The Independent Board Members concluded that the services
are extensive in nature and that the Adviser consistently delivered a high level
of service.
INVESTMENT PERFORMANCE OF THE FUND AND ADVISER. The Independent Board Members
considered short-term and long-term investment performance for the Fund over
various periods of time as compared with relevant equity indices and their
performance and concluded that the Adviser was delivering satisfactory
performance results consistent with the investment strategies being pursued by
the Fund.
COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER.
(A) COSTS OF SERVICES TO FUND: FEES AND EXPENSES. The Independent Board Members
considered the Fund's 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 Independent
Board Members noted that the mix of services under the Advisory Agreement are
much more extensive than those under the advisory agreements for non-fund
clients. The Independent Board Members recognized that the investment advisory
fee paid by the Fund and the Fund's overall expense ratio is higher than average
for its peer group, but concluded that the fee is acceptable based upon the
qualifications, experience, reputation, and performance of the Adviser.
(B) PROFITABILITY AND COSTS OF SERVICES TO ADVISER. The Independent Board
Members considered the Adviser's overall profitability and costs, and proforma
estimates of the Adviser's profitability and costs attributable to the Fund: (i)
as part of the Gabelli/GAMCO fund complex; and (ii) assuming the Fund
constituted the Adviser's only investment company under its management. The
Independent Board Members 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
regulatory requirements and new or enhanced Fund policies and procedures. The
Independent Board Members concluded that the Adviser's profitability was at an
acceptable level. The Independent Board Members also noted that a substantial
portion of the Fund's portfolio transactions were executed by an affiliated
broker, and that the affiliated broker received commissions from the Fund. The
Adviser received a moderate amount of soft dollar benefits (but no third party
research services) from unaffiliated brokers through the Fund's portfolio
brokerage.
21
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT
ADVISORY AGREEMENT (CONTINUED) (UNAUDITED)
EXTENT OF ECONOMIES OF SCALE AS FUND GROWS. The Independent Board Members
considered 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 Independent Board Members 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. They also
recognized that the Adviser has agreed to reduce the management fee on
incremental assets attributable to the preferred shares if the total return of
the common shares does not exceed a specified amount (e.g., the dividend rate
paid on preferred shares). The Independent Board Members concluded that there
was an appropriate sharing of economies of scale.
WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE.
The Independent Board Members 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 the Fund's current fee schedule (without
breakpoint) was considered reasonable.
OTHER RELEVANT CONSIDERATIONS.
(A) ADVISER PERSONNEL AND METHODS. The Independent Board Members considered 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, and concluded that in each of these areas the Adviser was structured
in such a way to support the high level of services being provided to the Fund.
(B) OTHER BENEFITS TO THE ADVISER. The Independent Board Members also considered
the character and amount of other incidental benefits received by the Adviser
and its affiliates from its association with the Fund. The Independent Board
Members considered the brokerage commissions paid to an affiliate of the
Adviser. The Independent Board Members 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. In considering the Advisory Agreement, the Independent Board
Members 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 judgment of the Independent
Board Members that shareholders had received, over the long-term, satisfactory
absolute and relative performance at reasonable fees and, therefore, re-approval
of the Agreement was in the best interests of the Fund and its shareholders. As
a part of its decision making process, the Independent Board Members noted that
the Adviser has managed the Fund since its inception, and the Independent Board
Members believe that a long-term relationship with a capable, conscientious
adviser is in the best interests of the Fund. The Independent Board Members
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 Independent Board Members considered, in particular, whether the
Adviser managed the Fund in accordance with its investment objectives and
policies as disclosed to shareholders. The Independent Board Members concluded
that the Fund was managed by the Adviser consistent with its investment
objectives and policies.
22
(FLAGS)
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,
GAMCO INVESTORS, INC.
Dr. Thomas E. Bratter
PRESIDENT & FOUNDER, JOHN DEWEY ACADEMY
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR &
CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT,
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR,
LAWRENCE HOSPITAL
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
OFFICERS
Bruce N. Alpert
PRESIDENT
Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
Laurissa M. Martire
VICE PRESIDENT
Agnes Mullady
TREASURER AND SECRETARY
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust Company
COUNSEL
Willkie Farr & Gallagher LLP
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
STOCK EXCHANGE LISTING
6.00%
Common Preferred
---------- ---------
NYSE-Symbol: GGT GGT PrB
Shares Outstanding: 13,994,153 993,100
The Net Asset Value per share appears in the Publicly Traded Funds column, under
the heading "Specialized Equity Funds," in Monday's The Wall Street Journal. It
is also listed in Barron's Mutual Funds/Closed End Funds section under the
heading "Specialized Equity Funds."
The Net Asset Value per share may be obtained each day by calling (914) 921-5070
or visiting www.gabelli.com.
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 Fund may, from time to time, purchase
shares of its common stock in the open market when the Fund's shares are trading
at a discount of 10% or more from the net asset value of the shares. The Fund
may also, from time to time, purchase shares of its preferred stock in the open
market when the preferred shares are trading at a discount to the liquidation
value.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI ANNUAL REPORT
JUNE 30, 2008
GGT Q2/2008
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. INVESTMENTS.
(a) 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.
(b) Not applicable.
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.
There has been no change, as of the date of this filing, in any of the portfolio
managers identified in response to paragraph (a)(1) of this Item in the
registrant's most recently filed annual report on Form N-CSR.
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 YET
SHARES (OR UNITS) (B) AVERAGE PRICE PAID PUBLICLY ANNOUNCED PLANS BE PURCHASED UNDER THE PLANS
PERIOD PURCHASED PER SHARE (OR UNIT) OR PROGRAMS OR PROGRAMS
=============================================================================================================================
=============================================================================================================================
Month #1 Common - N/A Common - N/A Common - N/A Common - 14,001,353
01/01/08
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
01/31/08
=============================================================================================================================
Month #2 Common - N/A Common - N/A Common - N/A Common - 14,001,353
02/01/08
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
02/28/08
=============================================================================================================================
Month #3 Common - 5,800 Common - $10.3531 Common - 5,800 Common - 14,001,353 - 5,800 =
03/01/08 13,995,553
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
03/31/08 Preferred Series B - 993,100
=============================================================================================================================
Month #4 Common - N/A Common - N/A Common - N/A Common - 13,995,553
04/01/08
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
04/30/08
=============================================================================================================================
Month #5 Common - 1,400 Common - $10.8164 Common - 1,400 Common - 13,995,553 - 1,400 =
05/01/08 13,994,153
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
05/31/08 Preferred Series B - 993,100
=============================================================================================================================
Month #6 Common - N/A Common - N/A Common - N/A Common - 13,994,153
06/01/08
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
06/30/08
=============================================================================================================================
Total Common - 7,200 Common - $10.4632 Common - 7,200 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 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) 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 9/3/08
----------------------------------------------------------------------------
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
Date 9/3/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer and Treasurer
Date 9/3/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.