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, 2003
-----------------
Date of reporting period: June 30, 2003
-------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO OMITTED]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
THE GABELLI MULTIMEDIA TRUST INC.
Semi-Annual Report
June 30, 2003
TO OUR SHAREHOLDERS,
We are changing the way we provide portfolio managers' commentary to
shareholders of our Funds. Our shareholder reports have typically contained
commentary on each portfolio manager's assessment of the stock market,
individual stocks and how economic events affect their thinking in managing a
specific Fund. We have always provided details about performance and presented
returns, both good and bad, hopefully in a clear and concise fashion. These
comments have been included as part of each Fund's quarterly, semi-annual, and
annual financial statements.
The Sarbanes-Oxley Act's new corporate governance regulations now require
a Fund's principal executive and financial officers to certify the entire
contents of shareholder reports in a filing with the Securities and Exchange
Commission on form N-CSR. This certification covers the portfolio manager's
commentary and subjective opinions if they are attached to or a part of the
financial statements.
Rather than ask our portfolio managers to eliminate their opinions and/or
restrict their commentary to historical facts only, we are removing their
commentary from the financial statements and sending it to you separately. As a
result, this commentary will no longer be considered part of a Fund's financial
report and therefore will not be subject to the officers' certifications.
We trust that you understand that our approach is an unintended
consequence of the ever-increasing regulatory requirements affecting public
companies generally. We hope the specific certification requirements of these
new regulations will be modified as they relate to mutual funds, since
investment companies have different corporate structures and objectives than
other public companies.
Sincerely yours,
/S/ BRUCE N. ALPERT
Bruce N. Alpert
Chief Operating Officer
August 8, 2003 Gabelli Funds, LLC
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 82.6%
COPYRIGHT/CREATIVITY COMPANIES -- 34.9%
BUSINESS SERVICES: ADVERTISING -- 0.4%
8,000 Donnelley (R.H.)
Corp.+ ...........$ 101,139 $ 291,760
20,000 Harte-Hanks Inc. .... 147,611 380,000
4,200 Havas SA ............ 20,733 18,762
2,000 Publicis Groupe ..... 13,971 53,673
------------ ------------
283,454 744,195
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 1.7%
2,250 Activision Inc.+ .... 6,415 29,070
10,000 America Online Latin
America Inc., Cl. A+ 43,250 6,010
3,000 Atlus Co. Ltd.+ ..... 17,662 11,942
8,000 Block (H&R) Inc. .... 162,450 346,000
9,473 CNET Networks Inc.+ . 102,468 59,017
3,230 EarthLink Inc.+ ..... 45,250 25,485
500 Electronic Arts Inc.+ 5,588 36,995
40,000 EMC Corp.+ .......... 588,871 418,800
10,000 Jupitermedia Corp.+ . 12,067 40,000
65,000 Microsoft Corp. ..... 1,465,256 1,664,650
2,000 Mobius Management
Systems Inc.+ ..... 12,540 14,940
1,000 Pixar Inc.+ ......... 39,153 60,840
12,000 Yahoo! Inc.+ ........ 194,054 393,120
------------ ------------
2,695,024 3,106,869
------------ ------------
CONSUMER PRODUCTS -- 0.3%
6,000 Department 56 Inc.+ . 65,655 91,980
100 eBay Inc.+ .......... 6,163 10,418
20,000 Mattel Inc. ......... 241,358 378,400
------------ ------------
313,176 480,798
------------ ------------
ELECTRONICS -- 0.7%
46,165 Agere Systems Inc.,
Cl. B+ ............ 142,676 106,179
6,000 Intel Corp. ......... 162,470 124,704
60,000 Oak Technology Inc.+ 217,241 372,600
3,570 Royal Philips Electronics
NV, ADR ........... 29,368 68,223
20,000 Sony Corp., ADR ..... 860,781 560,000
------------ ------------
1,412,536 1,231,706
------------ ------------
ENTERTAINMENT -- 12.3%
65,000 AOL Time Warner Inc.+ 1,013,194 1,045,850
60,000 Canal Plus, ADR ..... 10,818 62,010
25,000 Crown Media Holdings Inc.,
Cl. A+ ............ 146,640 103,250
31,622 EMI Group plc ....... 108,730 63,661
30,000 EMI Group plc, ADR .. 394,397 120,789
32,000 Fox Entertainment Group
Inc., Cl. A+ ...... 722,750 920,960
MARKET
SHARES COST VALUE
------ ---- ------
230,000 Gemstar-TV Guide
International
Inc.+ .............$ 1,844,444 $ 1,170,700
70,000 GMM Grammy Public
Co. Ltd. .......... 55,457 35,966
20,282 Granada plc ......... 55,525 30,456
481 Henley LP+ .......... 0 1,443
707,590 Liberty Media Corp.,
Cl. A+ 2,546,623 8,179,740
100,000 Shaw Brothers (Hong Kong)
Ltd. .............. 145,929 98,742
70,000 Six Flags Inc.+ ..... 529,700 474,600
70,000 SMG plc ............. 205,497 96,452
85,000 The Walt Disney Co. . 1,972,306 1,678,750
141,000 Viacom Inc., Cl. A+ . 2,121,178 6,161,700
20,000 Vivendi Universal SA+ 855,923 364,025
75,000 Vivendi Universal SA,
ADR+ .............. 2,825,297 1,383,000
6,000 World Wrestling
Entertainment Inc. 76,680 61,740
------------ ------------
15,631,088 22,053,834
------------ ------------
HOTELS AND GAMING -- 5.0%
8,000 Aztar Corp.+ ........ 40,900 128,880
8,000 Churchill Downs Inc. 193,280 306,480
199,500 Gaylord Entertainment
Co.+ .............. 5,086,459 3,904,215
18,000 GTECH Holdings Corp.+ 167,644 677,700
740,000 Hilton Group plc .... 2,809,249 2,246,865
55,000 Magna Entertainment
Corp., Cl. A+ ..... 358,030 275,000
32,000 MGM Mirage+ ......... 868,999 1,093,760
10,000 Park Place Entertainment
Corp.+ ............ 61,344 90,900
10,000 Starwood Hotels & Resorts
Worldwide Inc. .... 309,513 285,900
------------ ------------
9,895,418 9,009,700
------------ ------------
PUBLISHING -- 14.5%
20,000 Arnoldo Mondadori
Editore SpA ....... 63,827 145,151
100,000 Belo Corp., Cl. A ... 1,556,990 2,236,000
1,000 Dow Jones & Co. Inc. 46,722 43,030
20,000 EMAP plc ............ 207,970 282,343
17,000 Gannett Co. Inc. .... 910,944 1,305,770
2,833 Golden Books Family
Entertainment Inc.+ 0 5
2,000 Hollinger International
Inc. .............. 26,475 21,540
144,400 Independent News &
Media plc ......... 193,226 261,997
15,000 Journal Register Co.+ 244,399 271,350
15,000 Knight-Ridder Inc. .. 659,380 1,033,950
55,000 Lee Enterprises Inc. 1,204,236 2,064,150
See accompanying notes to financial statements.
2
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
PUBLISHING (CONTINUED)
19,000 McClatchy Co.,
Cl. A .............$ 517,138 $ 1,094,780
18,000 McGraw-Hill Companies
Inc. .............. 728,344 1,116,000
22,000 Media General Inc.,
Cl. A ............. 972,570 1,258,400
27,000 Meredith Corp. ...... 636,668 1,188,000
100,000 Nation Multimedia
Group+ ............ 84,677 28,306
100,000 New Straits Times Press
Berhad+ ........... 296,714 97,369
20,000 News Corp. Ltd., ADR 396,739 605,400
150,000 Oriental Press
Group Ltd. ........ 46,315 30,969
134,800 Penton Media Inc.+ .. 1,253,958 79,532
10,000 Playboy Enterprises Inc.,
Cl. A+ ............ 97,125 120,000
97,400 Post Publishing
Co. Ltd. .......... 47,100 76,456
172,600 PRIMEDIA Inc.+ ...... 878,681 526,430
47,000 Pulitzer Inc. ....... 1,393,375 2,322,740
93,200 Reader's Digest
Association Inc. .. 1,563,939 1,256,336
1,000 Scholastic Corp.+ ... 16,500 29,780
251,520 SCMP Group Ltd. ..... 181,457 99,181
33,000 Scripps (E.W.) Co.,
Cl. A ............. 2,001,394 2,927,760
54,452 Singapore Press Holdings
Ltd. .............. 696,171 565,849
300 SPIR Communication .. 23,329 22,152
15,000 Telegraaf Holdingsmij -
CVA ............... 285,271 241,152
50,000 Thomas Nelson Inc.+ . 587,560 625,000
84,000 Tribune Co. ......... 3,528,623 4,057,200
18,000 United Business Media plc,
ADR ............... 162,752 90,000
800 Wiley (John) & Sons Inc.,
Cl. B ............. 5,692 21,000
4,000 Wolters Kluwer NV ... 90,625 48,230
------------ ------------
21,606,886 26,193,308
------------ ------------
TOTAL COPYRIGHT/
CREATIVITY
COMPANIES .......... 51,837,582 62,820,410
------------ ------------
DISTRIBUTION COMPANIES -- 47.7%
BROADCASTING -- 13.8%
460 Asahi Broadcasting
Corp. ............. 6,087 16,971
22 Asahi National Broadcasting
Co., Ltd. ......... 26,592 25,467
18,000 CanWest Global
Communications Corp.+ 156,992 117,900
MARKET
SHARES COST VALUE
------ ---- ------
18,000 CanWest Global
Communications Corp.,
Sub-Voting+ .......$ 92,011 $ 114,591
5,000 Carlton Communications
plc, ADR .......... 95,245 60,500
2,300 Chubu-Nippon Broadcasting
Co., Ltd. ......... 14,620 14,577
27,000 Clear Channel
Communications Inc.+ 664,696 1,144,530
8,333 Corus Entertainment Inc.,
Cl. B+ ............ 33,927 139,522
9,000 Cox Radio Inc., Cl. A+ 55,500 207,990
1,000 Emmis Communications
Corp., Cl. A+ ..... 10,489 22,950
29,520 Fisher Communications
Inc.+ ............. 1,550,095 1,443,823
4 Fuji Television
Network Inc. ...... 14,441 14,124
67,500 Granite Broadcasting
Corp.+ ............ 400,055 206,550
100,000 Gray Television Inc. 1,295,437 1,240,000
13,125 Gray Television Inc.,
Cl. A ............. 166,990 161,438
10,000 Grupo Radio Centro, SA de
CV, ADR+ .......... 46,871 54,200
155,000 Grupo Televisa SA, ADR 5,215,748 5,347,500
34,000 Hearst-Argyle Television
Inc.+ ............. 341,006 880,600
4,550 Lagardere S.C.A. .... 100,163 197,765
151,000 Liberty Corp. ....... 6,950,356 6,417,500
20,000 LIN TV Corp., Cl. A+ 440,000 471,000
4,000 Metropole TV M6 SA .. 35,208 109,919
1,200 Nippon Broadcasting
System Inc. ....... 29,276 30,381
4,000 Nippon Television Network
Corp. ............. 608,474 476,702
4,650 NRJ Group ........... 22,694 68,883
1,000 NTN Communications
Inc.+ ............. 862 2,010
70,000 Paxson Communications
Corp.+ ............ 610,725 419,300
500 Radio One Inc., Cl. A+ 5,510 8,930
1,000 Radio One Inc., Cl. D+ 11,428 17,770
1,500 RTL Group (Brussels) 76,363 70,623
3,500 RTL Group (New York) 113,838 167,199
1,906 SAGA Communications
Inc., Cl. A+ ...... 9,709 37,072
80,000 Salem Communications
Corp., Cl. A+ ..... 1,285,175 1,600,880
2,000 SBS Broadcasting SA+ 42,022 35,700
40,000 Sinclair Broadcast Group
Inc., Cl. A+ ...... 434,512 464,400
25,000 Societe Television
Francaise 1 ....... 249,649 769,390
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
BROADCASTING (CONTINUED)
3,000 Spanish Broadcasting
System Inc.,
Cl. A+ ............$ 47,623 $ 24,450
50,000 Television
Broadcasts Ltd. ... 187,673 179,210
54,600 Tokyo Broadcasting
System Inc. ....... 777,133 665,249
15,000 TV Azteca, SA de CV . 85,569 97,500
25,000 Ulster Television plc 100,374 128,919
51,000 Young Broadcasting Inc.,
Cl. A+ ............ 1,475,410 1,077,630
------------ ------------
23,896,548 24,751,615
------------ ------------
BUSINESS SERVICES -- 0.7%
15,000 Carlisle Holdings
Ltd.+ ............. 78,754 49,500
48,000 Cendant Corp.+ ...... 593,292 879,360
500 CheckFree Corp.+ .... 5,520 13,920
1,000 Convergys Corp.+ .... 17,738 16,000
500 Dun and Bradstreet
Corp.+ ............ 6,320 20,550
8,000 Interactive Data
Corp.+ ............ 52,250 135,200
1,000 Moody's Corp. ....... 20,012 52,710
3,000 Princeton Video Image
Inc.+ ............. 21,000 9
2,500 Traffix Inc.+ ....... 12,500 7,678
------------ ------------
807,386 1,174,927
------------ ------------
CABLE -- 3.9%
10,000 Austar United
Communications Ltd.+ 21,733 2,582
210,000 Cablevision Systems Corp.,
Cl. A+ ............ 3,491,667 4,359,600
60,000 Charter Communications
Inc., Cl. A+ ...... 150,134 238,200
37,350 Comcast Corp., Cl. A+ 1,104,551 1,127,223
7,000 Comcast Corp., Cl. A,
Special+ .......... 53,073 201,810
15,000 Mediacom Communications
Corp.+ ............ 126,903 148,050
39,000 Shaw Communications Inc.,
Cl. B ............. 105,571 521,818
11,000 Shaw Communications Inc.,
Cl. B, Non-Voting . 103,451 147,950
22,680 Telewest Communications
plc+ .............. 37,551 655
50,000 UnitedGlobalCom Inc.,
Cl. A+ ............ 275,444 258,500
------------ ------------
5,470,078 7,006,388
------------ ------------
MARKET
SHARES COST VALUE
------ ---- ------
CONSUMER SERVICES -- 2.5%
4,000 Bowlin Travel
Centers Inc.+ .....$ 3,022 $ 7,400
112,400 InterActive Corp.+ .. 2,658,200 4,447,668
2,000 Martha Stewart Living
Omnimedia Inc.,
Cl. A+ ............ 28,800 18,780
4,000 TiVo Inc.+ .......... 27,943 48,720
------------ ------------
2,717,965 4,522,568
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.6%
18,200 Bouygues SA ......... 496,156 502,432
20,000 General Electric Co. 506,859 573,600
7,700 Hutchison Whampoa Ltd. 71,267 46,902
11,825 Malaysian Resources Corp.
Berhad+ ........... 41,566 3,361
------------ ------------
1,115,848 1,126,295
------------ ------------
ENERGY AND UTILITIES -- 0.3%
45,000 El Paso Electric Co.+ 358,877 554,850
------------ ------------
ENTERTAINMENT: DISTRIBUTION -- 1.0%
6,000 AMC Entertainment
Inc.+ ............. 11,737 68,640
5,000 Blockbuster Inc.,
Cl. A ............. 52,438 84,250
3,150 British Sky Broadcasting
Group plc, ADR+ ... 56,080 142,065
100,000 GC Companies Inc.+ .. 241,092 15,000
90,710 Metro-Goldwyn-Mayer
Inc.+ ............. 1,545,196 1,126,618
17,000 Regal Entertainment Group,
Cl. A ............. 323,000 400,860
200 Sunland Entertainment
Co. Inc.+ ......... 2,500 150
------------ ------------
2,232,043 1,837,583
------------ ------------
EQUIPMENT -- 1.5%
34,000 Allen Telecom Inc.+ . 240,881 561,680
1,000 Amphenol Corp., Cl. A+ 15,588 46,820
416 Avaya Inc.+ ......... 9,761 2,687
2,000 CommScope Inc.+ ..... 29,407 19,000
105,000 Corning Inc.+ ....... 1,041,524 775,950
1,000 Furukawa Electric
Co. Ltd. .......... 15,169 3,265
3,000 L-3 Communications
Holdings Inc.+ .... 33,000 130,470
80,000 Lucent Technologies
Inc.+ ............. 486,490 162,400
60,000 Motorola Inc. ....... 850,958 565,800
25,000 Nortel Networks Corp.+ 125,000 67,500
6,000 Qualcomm Inc. ....... 31,219 214,500
6,000 Scientific-Atlanta
Inc. .............. 50,804 143,040
20,000 Sycamore Networks
Inc.+ ............. 63,894 76,600
------------ ------------
2,993,695 2,769,712
------------ ------------
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
FOOD AND BEVERAGE -- 0.2%
50,000 Allied Domecq plc ...$ 290,480 $ 275,578
5,282 Compass Group plc ... 37,648 28,480
------------ ------------
328,128 304,058
------------ ------------
SATELLITE -- 1.9%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR 5,693 4,848
28,000 EchoStar Communications
Corp., Cl. A+ ..... 91,970 969,360
100,000 General Motors Corp.,
Cl. H+ ............ 1,657,697 1,281,000
5,000 Liberty Satellite &
Technology Inc.,
Cl. A+ ............ 14,450 13,000
14,000 Lockheed Martin Corp. 401,069 665,980
3,000 Loral Space &
Communications Ltd.+ 90,687 9,150
10,000 PanAmSat Corp.+ ..... 149,708 184,300
5,500 Pegasus Communications
Corp.+ ............ 519,252 162,690
6,000 PT Indosat Tbk, ADR . 58,079 64,980
30 Sky Perfect
Communications Inc.+ 15,471 20,512
------------ ------------
3,004,076 3,375,820
------------ ------------
TELECOMMUNICATIONS: LOCAL -- 6.0%
4,266 Aliant Inc. ......... 39,187 91,458
3,000 Allegiance
Telecom Inc.+ ..... 28,500 165
7,000 ALLTEL Corp. ........ 372,121 337,540
9,557 ATX Communications
Inc.+ ............. 24,550 3,441
4,000 Brasil Telecom Participacoes
SA, ADR ........... 231,474 149,800
47,000 CenturyTel Inc. ..... 1,440,777 1,637,950
2,000 Choice One
Communications Inc.+ 700 640
100,000 Cincinnati Bell Inc.+ 958,563 670,000
93,000 Citizens Communications
Co.+ .............. 1,047,108 1,198,770
24,434 Commonwealth Telephone
Enterprises Inc.+ . 829,449 1,074,363
24,400 Commonwealth Telephone
Enterprises Inc.,
Cl. B+ ............ 318,107 1,122,400
3,000 Metromedia International
Group Inc.+ (d) ... 8,775 345
9,655 Rogers Communications
Inc., Cl. B ....... 148,207 153,840
MARKET
SHARES COST VALUE
------ ---- ------
120,345 Rogers Communications
Inc., Cl. B, ADR ..$ 1,077,724 $ 1,931,537
6,000 SBC Communications
Inc. .............. 145,321 153,300
18,432 Tele Norte Leste
Participacoes
SA, ADR ........... 252,380 215,286
10,000 Telecom Argentina Stet
France Telecom SA,
ADR+ .............. 26,440 65,000
18,172 TeliaSonera AB ...... 51,070 75,367
4,000 Time Warner Telecom Inc.,
Cl. A+ ............ 25,000 25,480
3,000 USN Communications
Inc.+ (d) ......... 12,165 3
50,000 Verizon Communications
Inc. .............. 1,934,890 1,972,500
------------ ------------
8,972,508 10,879,185
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.5%
22,000 AT&T Corp. .......... 721,099 423,500
10,000 BT Group plc, ADR ... 428,060 336,600
1,000 Embratel Participacoes
SA, ADR+ .......... 4,150 10,030
13,000 Global Crossing Ltd.+ 21,840 234
285,646 Qwest Communications
International Inc.+ 1,754,990 1,365,388
6,000 Rostelecom, ADR ..... 41,408 62,340
30,000 Sprint Corp. -
FON Group ......... 475,872 432,000
1,000 Startec Global
Communications
Corp.+ ............ 4,645 16
1,666 Talk America
Holdings Inc.+ ..... 2,529 18,176
60,000 WorldCom Inc. - MCI
Group+ ............ 15,900 8,700
------------ ------------
3,470,493 2,656,984
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 6.0%
40,000 BCE Inc. ............ 839,129 924,400
45,203 Cable & Wireless
plc, ADR .......... 775,679 247,260
33,000 Compania de
Telecomunicaciones de
Chile SA, ADR+ .... 552,101 389,400
170,000 Deutsche Telekom AG,
ADR+ .............. 2,411,271 2,584,000
35,000 Elisa Oyj, Cl. A+ ... 379,991 300,636
3,000 France Telecom SA, ADR 48,120 73,950
3,305 Hellenic Telecommunications
Organization SA ... 39,578 39,091
174 Japan Telecom Holdings
Co. Ltd. .......... 266,848 528,919
500 Magyar Tavkozlesi
Rt, ADR ........... 9,650 8,600
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS: NATIONAL (CONTINUED)
20 Nippon Telegraph &
Telephone Corp. ...$ 123,433 $ 78,451
37,000 Philippine Long Distance
Telephone Co., ADR+ 662,519 398,490
4,320 PT Telekomunikasi
Indonesia, ADR .... 18,512 48,384
48,000 Swisscom AG, ADR .... 1,353,535 1,360,320
2,000 Telecom Corp. of New
Zealand Ltd., ADR . 31,000 48,720
60,771 Telefonica SA, ADR+ . 1,597,418 2,100,854
19,000 Telefonos de Mexico SA
de CV, Cl. L, ADR . 177,884 596,980
2,400 Telstra Corp.
Ltd., ADR ......... 30,324 35,640
45,000 TELUS Corp. ......... 810,821 791,868
20,000 TELUS Corp.,
Non-Voting ........ 439,208 328,979
------------ ------------
10,567,021 10,884,942
------------ ------------
WIRELESS COMMUNICATIONS -- 7.8%
35,000 America Movil SA de CV,
Cl. L, ADR ........ 444,579 656,250
11,450 American Tower Corp.,
Cl. A+ ............ 134,266 101,332
65,747 AT&T Wireless Services
Inc.+ ............. 1,012,912 539,783
24,000 Jasmine International Public
Co. Ltd.+ ......... 5,040 3,853
80,000 Leap Wireless International
Inc.+ ............. 27,600 4,000
29,600 mm02 plc, ADR+ ...... 264,821 273,208
100,000 Nextel Communications Inc.,
Cl. A+ ............ 1,335,526 1,808,000
500 NTT DoCoMo Inc. ..... 762,806 1,082,657
30,000 Price Communications
Corp.+ ............ 293,906 387,300
105,600 Rogers Wireless
Communications Inc.,
Cl. B+ ............ 1,488,438 1,784,640
10,800 Rural Cellular Corp.,
Cl. A+ ............ 22,788 45,360
37,000 SK Telecom Co.
Ltd., ADR ......... 828,800 697,820
25,000 Sprint Corp. -
PCS Group+ ........ 267,053 143,750
1,650 Tele Celular Sul
Participacoes
SA, ADR ........... 26,379 13,744
5,500 Tele Centro Oeste Celular
Participacoes
SA, ADR ........... 16,487 31,790
330 Tele Leste Celular
Participacoes
SA, ADR+ .......... 8,827 2,548
MARKET
SHARES COST VALUE
------ ---- ------
825 Tele Nordeste Celular
Participacoes
SA, ADR ...........$ 12,175 $ 13,324
330 Tele Norte Celular
Participacoes
SA, ADR+ .......... 5,098 2,211
380,000 Telecom Italia
Mobile SpA ........ 1,866,592 1,872,029
825 Telemig Celular
Participacoes
SA, ADR ........... 23,843 17,341
75,000 Telephone & Data
Systems Inc. ...... 5,114,984 3,727,500
6,600 Telesp Celular Participacoes
SA, ADR+ .......... 211,036 25,740
15,000 Total Access
Communications plc+ 66,339 19,950
2,000 United States Cellular
Corp.+ ............ 113,480 50,900
6,000 Vimpel-Communications,
ADR+ .............. 103,613 278,640
12,650 Vodafone Group
plc, ADR .......... 203,637 248,573
20,000 Western Wireless Corp.,
Cl. A+ ............ 88,582 230,600
------------ ------------
14,749,607 14,062,843
------------ ------------
TOTAL DISTRIBUTION
COMPANIES .......... 80,684,273 85,907,770
------------ ------------
TOTAL COMMON
STOCKS ............. 132,521,855 148,728,180
------------ ------------
PREFERRED STOCKS -- 4.4%
BROADCASTING -- 1.1%
1,063 Granite Broadcasting Corp.,
12.750% Pfd.+ ..... 439,682 861,030
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (c)(d) ..... 1,000,000 1,030,000
------------ ------------
1,439,682 1,891,030
------------ ------------
BUSINESS SERVICES -- 0.6%
10,000 Interep National Radio
Sales Inc.,
4.000% Cv. Pfd.,
Ser. A+ (c)(d) .... 1,000,000 1,030,000
------------ ------------
PUBLISHING -- 1.4%
103,000 News Corp. Ltd.,
Pfd., ADR ......... 2,541,580 2,580,150
------------ ------------
TELECOMMUNICATIONS: LOCAL -- 1.3%
45,000 Citizens Communications Co.,
5.000% Cv. Pfd. ... 2,161,913 2,385,000
------------ ------------
TOTAL PREFERRED
STOCKS ............. 7,143,175 7,886,180
------------ ------------
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2003 (UNAUDITED)
MARKET
SHARES COST VALUE
------ ---- ------
CORPORATE BONDS -- 0.1%
BUSINESS SERVICES -- 0.1%
$ 50,000 BBN Corp., Sub. Deb. Cv.,
6.000%,
04/01/12+ (a)(d) ..$ 49,458 $ 0
300,000 Trans-Lux Corp.,
Sub. Deb. Cv.,
7.500%, 12/01/06 .. 289,516 250,125
------------ ------------
338,974 250,125
------------ ------------
PUBLISHING -- 0.0%
66,560 Golden Books Family
Entertainment Inc., PIK,
10.750%,
12/31/04 (a) ...... 59,865 333
------------ ------------
TOTAL CORPORATE
BONDS .............. 398,839 250,458
------------ ------------
SHARES
---------
WARRANTS -- 0.0%
BUSINESS SERVICES -- 0.0%
62,500 Interep National Radio
Sales Inc.,+ ...... 0 0
------------ ------------
PUBLISHING -- 0.0%
25,000 Nation Multimedia
Group+ ............ 0 1,903
------------ ------------
TOTAL WARRANTS ...... 0 1,903
------------ ------------
PRINCIPAL
AMOUNT
----------
U.S. GOVERNMENT OBLIGATIONS -- 12.9%
$23,189,000 U.S. Treasury Bills,
0.792% to 1.101%++,
07/31/03 to
11/13/03 .......... 23,149,855 23,150,546
------------ ------------
TOTAL INVESTMENTS -- 100.0% ......$163,213,724 $180,017,267
============
OTHER LIABILITIES IN
EXCESS OF ASSETS ........................... (1,835,005)
PREFERRED STOCK
(1,001,000 preferred shares outstanding) .... (50,000,000)
------------
NET ASSETS -- COMMON STOCK
(14,259,953 common shares outstanding) ...... 128,182,262
============
NET ASSET VALUE PER COMMON SHARE
($128,182,262 (DIVIDE) 14,259,953
shares outstanding) ........................ $8.99
=====
-------------------
PRINCIPAL SETTLEMENT UNREALIZED
AMOUNT DATE DEPRECIATION
--------- ---------- ------------
FORWARD FOREIGN EXCHANGE
CONTRACTS -- 0.0%
Deliver Hong Kong Dollars
in exchange for
$7,790,000(b) USD 998,270 ........ 08/01/03 $ (641)
============
-------------------
For Federal tax purposes:
Aggregate cost .................. $163,213,724
============
Gross unrealized appreciation ... $ 35,883,958
Gross unrealized depreciation ... (19,080,415)
------------
Net unrealized appreciation ..... $ 16,803,543
============
-------------------
(a) Security in default.
(b) Principal amount denoted in Hong Kong Dollars.
(c) 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, 2003, the market value of Rule 144A securities amounted to
$2,060,000 or 1.14% of total net assets.
(d) Securities fair valued under procedures established by the Board of
Directors.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
PIK - Paid in Kind.
USD - United States Dollars.
% OF
MARKET MARKET
VALUE VALUE
------ ------
GEOGRAPHIC DIVERSIFICATION
United States ................... 76.9% $138,496,371
Europe .......................... 9.9 17,771,256
Asia/Pacific .................... 5.3 9,551,509
Latin America ................... 4.0 7,116,003
Canada .......................... 3.9 7,082,128
------ ------------
Total Investments ...............100.0% $180,017,267
====== ============
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2003 (UNAUDITED)
ASSETS:
Investments, at value (Cost $163,213,724) ...... $180,017,267
Cash and foreign currency, at value
(Cost $40,574) ............................... 40,619
Dividends and interest receivable .............. 240,110
Other assets ................................... 4,594
------------
TOTAL ASSETS ................................... 180,302,590
------------
LIABILITIES:
Payable for investments purchased .............. 385,090
Dividends payable .............................. 25,833
Unrealized depreciation on swap contracts ...... 940,337
Payable for investment advisory fees ........... 100,624
Payable to custodian ........................... 8,356
Unrealized depreciation on forward foreign
exchange contracts ........................... 641
Interest payable on swap contracts ............. 42,792
Payable for audit and legal fees ............... 34,115
Payable for shareholder communications fees .... 87,546
Payable for offering expenses .................. 393,826
Other accrued expenses and liabilities ......... 101,168
------------
TOTAL LIABILITIES .............................. 2,120,328
------------
PREFERRED STOCK:
Series B Cumulative Preferred Stock (6.00%,
$25 liquidation value, $0.001 par
value, 1,000,000 shares authorized
with 1,000,000 shares issued and
outstanding) 25,000,000
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 .......................... 50,000,000
------------
NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS ................................. $128,182,262
============
NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS CONSIST OF:
Capital stock, at par value .................... 14,260
Additional paid-in capital ..................... 118,753,607
Accumulated net investment loss ................ (1,069,599)
Accumulated net realized loss on investments
and foreign currency transactions ............ (5,380,344)
Net unrealized appreciation on investments, swap
contracts and foreign currency transactions .. 15,864,338
------------
TOTAL NET ASSETS ............................... $128,182,262
============
NET ASSET VALUE PER COMMON SHARE
($128,182,262 / 14,259,953 shares outstanding;
200,000,000 shares authorized
of $0.001 par value) ......................... $8.99
=====
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $37,637) ...... $ 804,626
Interest ......................................... 93,249
------------
TOTAL INVESTMENT INCOME .......................... 897,875
------------
EXPENSES:
Investment advisory fees ......................... 533,101
Interest expense on swap contracts ............... 143,746
Shareholder communications expenses .............. 109,235
Shareholder services fees ........................ 69,158
Legal and audit fees ............................. 33,804
Directors' fees .................................. 33,590
Custodian fees ................................... 23,298
Accounting fees .................................. 17,256
Payroll .......................................... 13,499
Miscellaneous expenses ........................... 76,144
------------
TOTAL EXPENSES ................................... 1,052,831
------------
NET INVESTMENT LOSS .............................. (154,956)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, SWAP CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized loss on investments ................. (358,380)
Net realized gain on foreign currency transactions 2,997
------------
Net realized loss on investments
and foreign currency transactions .............. (355,383)
------------
Net change in unrealized appreciation/depreciation
on investments, swap contracts and foreign
currency transactions .......................... 21,754,951
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
SWAP CONTRACTS AND FOREIGN CURRENCY
TRANSACTIONS ................................... 21,399,568
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................ 21,244,612
------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ............................ (914,643)
------------
TOTAL DISTRIBUTIONS TO PREFERRED
STOCK SHAREHOLDERS ............................. (914,643)
------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO
COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS ................................ $ 20,329,969
============
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 2003 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2002
---------------- -----------------
OPERATIONS:
Net investment loss ............................................................... $ (154,956) $ (46,272)
Net realized gain (loss) on investments and foreign currency transactions ......... (355,383) 1,821,055
Net change in unrealized appreciation (depreciation) of investments, swap contracts
and foreign currency transactions ............................................... 21,754,951 (40,300,249)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ................... 21,244,612 (38,525,466)
------------- -------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ............................................................. (914,643) --
Net realized long-term gains on investments and foreign currency transactions ..... -- (2,359,821)
------------- -------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS ............................... (914,643) (2,359,821)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS
RESULTING FROM OPERATIONS ....................................................... 20,329,969 (40,885,287)
------------- -------------
TRUST SHARE TRANSACTIONS:
Net decrease from repurchase of common shares ..................................... (180,514) (253,454)
Offering costs for preferred shares charged to paid-in capital .................... (1,500,000) --
------------- -------------
NET DECREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS .......................... (1,680,514) (253,454)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS .................................................................... 18,649,455 (41,138,741)
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS:
Beginning of period ............................................................... 109,532,807 150,671,548
------------- -------------
End of period ..................................................................... $ 128,182,262 $ 109,532,807
============= =============
See accompanying notes to financial statements.
9
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Global Multimedia Trust Inc. ("Multimedia Trust")
is a closed-end, non-diversified management investment company organized as a
Maryland corporation on March 31, 1994 and registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), whose primary objective is
long-term growth of capital with income as a secondary objective. The Multimedia
Trust had no operations prior to November 15, 1994, other than the sale of
10,000 shares of common stock for $100,000 to The Gabelli Equity Trust Inc. (the
"Equity Trust"). Investment operations commenced on November 15, 1994.
Effective August 1, 2002, the Multimedia Trust modified its non-fundamental
investment policy to increase, from 65% to 80%, the portion of its assets that
it will invest, 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. However, the
Multimedia Trust has adopted a policy to provide shareholders with at least 60
days' notice of the implementation of any change in the 80% Policy.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Multimedia Trust in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange 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 so determines, by such other method as the Board of Directors
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 in
foreign markets are generally valued at the preceding closing values of such
securities on their respective exchanges or markets. Securities and assets for
which market quotations are not readily available are valued at their fair value
as determined in good faith under procedures established by and under the
general supervision of the Board of Directors. Short term debt securities with
remaining maturities of 60 days or less are valued at amortized cost, unless the
Board of Directors determines such does not reflect the securities fair value,
in which case these securities will be valued at their fair value as determined
by the Board of Directors. Debt instruments having a maturity greater than 60
days for which market quotations are readily available are valued at the latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price on that day.
Options are valued at the last sale price on the exchange on which they are
listed. If no sales of such options have taken place that day, they will be
valued at the mean between their closing bid and asked prices.
REPURCHASE AGREEMENTS. The Multimedia Trust may enter into repurchase
agreements with primary government securities dealers recognized by the Federal
Reserve Bank of New York, with member banks of the Federal Reserve System or
with other brokers or dealers that meet credit guidelines established by the
Adviser and reviewed by the Board of Directors. Under the terms of a typical
repurchase agreement, the Multimedia Trust takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Multimedia Trust to resell, the obligation at an agreed-upon price and time,
thereby determining the yield during the Multimedia Trust's holding period. The
Multimedia Trust will
10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
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 Multimedia Trust in each agreement. The Multimedia Trust will
make payment for such securities only upon physical delivery or upon evidence of
book entry transfer of the collateral to the account of the custodian. To the
extent that any repurchase transaction exceeds one business day, the value of
the collateral is marked-to-market on a daily basis to maintain the adequacy of
the collateral. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Multimedia Trust may be delayed
or limited.
SWAP AGREEMENTS. The Multimedia Trust may enter into interest rate swap or
cap transactions. The use of interest rate swaps and caps is a highly
specialized activity that involves investment techniques and risks different
from those associated with ordinary portfolio security transactions. In an
interest rate swap, the Multimedia Trust would agree to pay to the other party
to the interest rate swap (which is known as the "counterparty") periodically a
fixed rate payment in exchange for the counterparty agreeing to pay to the
Multimedia Trust periodically a variable rate payment that is intended to
approximate the Multimedia Trust's variable rate payment obligation on the
Series C Preferred Stock. In an interest rate cap, the Multimedia Trust would
pay a premium to the interest rate cap to the counterparty and, to the extent
that a specified variable rate index exceeds a predetermined fixed rate, would
receive from the counterparty payments of the difference based on the notional
amount of such cap. Interest rate swap and cap transactions introduce additional
risk because the Multimedia Trust would remain obligated to pay preferred stock
dividends when due in accordance with the Articles Supplementary even if the
counterparty defaulted. Depending on the general state of short-term interest
rates and the returns on the Multimedia Trust's portfolio securities at that
point in time, such a default could negatively affect the Multimedia Trust's
ability to make dividend payments for the Series C Preferred Stock. In addition,
at the time an interest rate swap or cap transaction reaches its scheduled
termination date, there is a risk that the Multimedia Trust will not be able to
obtain a replacement transaction or that the terms of the replacement will not
be as favorable as on the expiring transaction. If this occurs, it could have a
negative impact on the Multimedia Trust's ability to make dividend payments on
the Series C Preferred Stock.
The Trust has entered into two interest rate swap agreements with Citibank
N.A. Under the agreement the Trust 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, 2003 are as follows:
NOTIONAL FLOATING RATE* TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE DEPRECIATION
----------- ---------- -------------------- ----------- ------------
$10,000,000 4.32% 1.32% April 4, 2013 $(489,413)
$15,000,000 3.27% 1.32% April 4, 2008 $(450,924)
-------------------
*Based on Libor (London Interbank Offered Rate).
SECURITIES SOLD SHORT. A short sale involves selling a security which the
Multimedia Trust does not own. The proceeds received for short sales are
recorded as liabilities and the Multimedia Trust records an unrealized gain or
loss to the extent of the difference between the proceeds received and the value
of the open short position on the day of determination. The Multimedia Trust
records a realized gain or loss when the short position is closed out. By
entering into a short sale, the Multimedia Trust bears the market risk of an
unfavorable change in the price of the security sold short. Dividends on short
sales are recorded as an expense by the Multimedia Trust on the ex-dividend date
and interest expense is recorded on the accrual basis.
FORWARD FOREIGN EXCHANGE CONTRACTS. The Multimedia Trust may engage in
forward foreign exchange contracts for hedging a specific transaction with
respect to either the currency in which the transaction is denominated or
another currency as deemed appropriate by the Adviser. Forward foreign exchange
contracts are valued at the forward rate and are
11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
marked-to-market daily. The change in market value is included in unrealized
appreciation/depreciation on investments and foreign currency transactions. When
the contract is closed, the Multimedia Trust records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Multimedia Trust's portfolio
securities, but it does establish a rate of exchange that can be achieved in the
future. Although forward foreign exchange contracts limit the risk of loss due
to a decline in the value of the hedged currency, they also limit any potential
gain/(loss) that might result should the value of the currency increase. In
addition, the Multimedia Trust could be exposed to risks if the counterparties
to the contracts are unable to meet the terms of their contracts.
FOREIGN CURRENCY TRANSLATION. The books and records of the Multimedia Trust
are maintained in United States (U.S.) dollars. Foreign currencies, investments
and other assets and liabilities are translated into U.S. dollars at the
exchange rates prevailing at the end of the period, and purchases and sales of
investment securities, income and expenses are translated at the exchange rate
prevailing on the respective dates of such transactions. Unrealized gains and
losses, which result from changes in foreign exchange rates and/or changes in
market prices of securities, have been included in unrealized
appreciation/depreciation on investments and foreign currency transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Multimedia Trust and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial trade date and subsequent sale trade date is
included in realized gain/(loss) on investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders
are recorded on the ex-dividend date. Distributions to shareholders of the
Multimedia Trust's 6.00% Series B Cumulative Preferred Stock and Series C
Auction Rate Cumulative Preferred Stock ("Cumulative Preferred Stock") are
accrued on a daily basis and are determined as described in Note 5. Income
distributions and capital gain distributions are determined in accordance with
Federal income tax regulations which may differ from accounting principles
generally accepted in the United States.
PROVISION FOR INCOME TAXES. The Multimedia Trust intends to continue to
qualify as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986, as amended. As a result, a Federal income tax provision is
not required.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES. The Multimedia Trust has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Multimedia Trust will pay the Adviser on the
first business day of each month a fee for the previous month equal on an annual
basis to 1.00% of the value of the Multimedia Trust's average weekly net assets
including the liquidation value of preferred stock. In accordance with the
Advisory Agreement, the Adviser provides a continuous investment program for the
Multimedia Trust's portfolio and oversees the administration of all aspects of
the Multimedia Trust's business and affairs. The Adviser has agreed to reduce
the management fee on the incremental assets attributable to the Cumulative
Preferred Stock if the total return of the net asset value of the common shares
of the Multimedia Trust, including distributions and advisory fee subject to
reduction, does not exceed the stated dividend rate of the Cumulative Preferred
Stock. On April 2, 2003, the Multimedia Trust redeemed the remaining 75%
(926,025 shares) of its outstanding 7.92% Cumulative Preferred Stock. For the
period January 1, 2003 through April 2, 2003, the Multimedia Trust's total
return on the NAV of the common stock did not exceed
12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
the stated dividend rate of the Cumulative Preferred Shares for this period.
Thus, management fees were not earned on these assets. On April 2, 2003, the
Multimedia Trust issued Preferred Stock. For the period April 2, 2003 through
June 30, 2003, the Multimedia Trust's total return on the net asset value of the
common shares exceeded the stated dividend rate of the Preferred Stock for the
period.
During the six months ended June 30, 2003, Gabelli & Company, Inc. received
$5,496 in brokerage commissions as a result of executing agency transactions in
portfolio securities on behalf of the Multimedia Trust.
The cost of calculating the Trust's net asset value per share is a Trust
expense pursuant to the Investment Advisory Agreement between the Trust and the
Adviser. During the six months ended June 30, 2003, the Multimedia Trust
reimbursed the Adviser $17,400 in connection with the cost of computing the
Trust's net asset value.
4. PORTFOLIO SECURITIES. Cost of purchases and proceeds from sales of
securities, other than short-term securities, for the six months ended June 30,
2003 aggregated $8,762,557 and $1,124,020, respectively.
5. CAPITAL. The Articles of Incorporation, dated March 31, 1994, permit the
Multimedia Trust to issue 198,999,000 shares of common stock (par value $0.001).
The Board of Directors of the Multimedia Trust has authorized the repurchase of
up to 1,000,000 shares of the Multimedia Trust's outstanding common stock.
During the six months ended June 30, 2003, the Multimedia Trust repurchased
25,000 shares of its common stock in the open market at a cost of $180,514 and
an average discount of approximately 14.48% from its net asset value. During the
year ended December 31, 2002, the Multimedia Trust repurchased 30,700 shares of
its common stock in the open market at a cost of $253,454 and an average
discount of approximately 10.53% from its net asset value. All shares of common
stock repurchased have been retired.
Transactions in capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2003 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2002
--------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- --------- ------- ---------
Net decrease from repurchase
of common shares .......... (25,000) $(180,514) (30,700) $(253,454)
------- --------- ------- ---------
Net decrease ................. (25,000) $(180,514) (30,700) $(253,454)
======= ========= ======= =========
The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to 2,000,000 shares of $0.001 par value Cumulative Preferred Stock. The
Cumulative Preferred Stock is senior to the common stock and results in the
financial leveraging of the common stock. Such leveraging tends to magnify both
the risks and opportunities to Common Shareholders. Dividends on shares of the
Cumulative Preferred Stock are cumulative. The Multimedia Trust is required to
meet certain asset coverage tests as required by the 1940 Act and by the shares'
Articles Supplementary with respect to the Cumulative Preferred Stock. If the
Multimedia Trust fails to meet these requirements and does not correct such
failure, the Multimedia Trust may be required to redeem, in part or in full, the
7.20% Series B and Series C Auction Rate Cumulative Preferred Stock at a
redemption price of $25.00 and $25,000, respectively, per share plus an amount
equal to the accumulated and unpaid dividends whether or not declared on such
shares in order to meet these requirements. Additionally, failure to meet the
foregoing asset requirements could restrict the Multimedia Trust's ability to
pay dividends to Common Shareholders and could lead to sales of portfolio
securities at inopportune times.
The Multimedia Trust, as authorized by the Board of Directors, redeemed the
remaining 75% (926,025 shares) of its outstanding 7.92% Cumulative Preferred
Stock. The redemption date was April 2, 2003 and the redemption price was
13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
$25.033 per Preferred Share, which consisted of $25.00 per share of
Preferred Stock (the liquidation value), plus accumulated and unpaid dividends
through the redemption date of $0.033 per Preferred Share. The Preferred Shares
were callable at any time at the liquidation value of $25.00 per share plus
accrued dividends following the expiration of the five-year call protection on
June 1, 2002.
On March 31, 2003, the Multimedia Trust received net proceeds of
$23,981,250 (after underwriting discounts of $787,500 and estimated offering
expenses of $231,250) from the public offering of 1,000,000 shares of 6.00%
Series B Cumulative Preferred Stock. Commencing April 2, 2003 and thereafter,
the Multimedia Trust, at its option, may redeem the 6.00% Series B Cumulative
Preferred Stock in whole or in part at the redemption price. The Board of
Directors has authorized the repurchase in the open market at prices less than
the $25 liquidation value of the Cumulative Preferred Stock. During the six
months ended June 30, 2003, the Multimedia Trust did not repurchase any shares
of 6.00% Series B Cumulative Preferred Stock. At June 30, 2003, 1,000,000 shares
of the 6.00% Series B Cumulative Preferred Stock were outstanding at the fixed
rate of 6.00% per share and accrued dividends amounted to $20,833.
On March 31, 2003, the Multimedia Trust received net proceeds of
$24,518,750 (after underwriting discounts of $250,000 and estimated offering
expenses of $231,250) from the public offering of 1,000 shares of Series C
Auction Rate Cumulative Preferred Stock. The dividend rate, as set by the
auction process, which is generally held every 7 days, is expected to vary with
short-term interest rates. 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
Multimedia Trust, at its option, may redeem the Series C Auction Rate Cumulative
Preferred Stock in whole or in part at the redemption price at any time. During
the six months ended June 30, 2003, the Multimedia Trust did not repurchase any
shares of Series C Auction Rate Cumulative Preferred Stock. At June 30, 2003,
1,000 shares of the Series C Auction Rate Cumulative Preferred Stock were
outstanding at the annual rate of 1.20% per share and accrued dividends amounted
to $5,000.
The holders of Cumulative Preferred Stock have voting rights equivalent to
those of the holders of common stock (one vote per share) and will vote together
with holders of shares of common stock as a single class. In addition, the 1940
Act requires that along with approval of a majority of the holders of common
stock, approval of a majority of the holders of any outstanding shares of
Cumulative Preferred Stock, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the Cumulative
Preferred Stock, and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Multimedia Trust's
subclassification as a closed-end investment company or changes in its
fundamental investment restrictions. The income received on the Multimedia
Trust's assets may vary in a manner unrelated to the fixed rate, which could
have either a beneficial or detrimental impact on net investment income and
gains available to Common Shareholders.
Under Emerging Issues Task Force (EITF) promulgating Topic D-98,
Classification and Measurement of Redeemable Securities, which was issued on
July 19, 2001, preferred securities that are redeemable for cash or other assets
are to be classified outside of permanent equity to the extent that the
redemption is at a fixed or determinable price and at the option of the holder
or upon the occurrence of an event that is not solely within the control of the
issuer. Subject to the guidance of the EITF, the Fund's Cumulative Preferred
Stock has been reclassified outside of permanent equity (net assets attributable
to common stock shareholders) in the accompanying financial statements.
6. INDUSTRY CONCENTRATION. Because the Multimedia Trust primarily invests in
common stocks and other securities of foreign and domestic companies in the
telecommunications, media, publishing and entertainment industries, its
portfolio may be subject to greater risk and market fluctuations than a
portfolio of securities representing a broad range of investments.
14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A MULTIMEDIA TRUST COMMON SIX MONTHS ENDED
SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
---------------- -------- -------- ------- ------- -------
OPERATING PERFORMANCE:
Net asset value, beginning of period ............ $ 7.67 $ 10.52 $ 12.21 $ 19.90 $ 12.20 $ 9.91
------- -------- ------- ------- ------- -------
Net investment income (loss) .................... (0.08) (0.00)(a) (0.02) 0.21 (0.05) (0.03)
Net realized and unrealized gain (loss)
on investments ................................ 1.56 (2.68) (1.44) (4.74) 11.54 3.33
------- -------- ------- ------- ------- -------
Total from investment operations ................ 1.48 (2.68) (1.46) (4.53) 11.49 3.30
------- -------- ------- ------- ------- -------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income. .......................... (0.06) -- -- (0.02) -- --
Net realized gain on investments ................ -- (0.17) (0.17) (0.18) (0.23) (0.23)
------- -------- ------- ------- ------- -------
Total distributions to preferred
stock shareholders ............................ (0.06) (0.17) (0.17) (0.20) (0.23) (0.23)
------- -------- ------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE
TO COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS ............................... 1.42 (2.85) (1.63) (4.73) 11.26 3.07
------- -------- ------- ------- ------- -------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income ........................... -- -- (0.00)(a) (0.16) -- --
Net realized gain on investments ................ -- -- (0.06) (1.41) (3.62) (0.80)
In excess of net investment income and/or net
realized gain on investments .................. -- -- -- -- -- --
------- -------- ------- ------- ------- -------
Total distributions to common
stock shareholders ........................... -- -- (0.06) (1.57) (3.62) (0.80)
------- -------- ------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net asset value from common
stock share transactions ...................... -- 0.00(a) -- (1.35) 0.06 0.02
Offering costs for preferred shares charged to
paid-in capital ............................... (0.11) -- -- (0.04) -- --
------- -------- ------- ------- ------- -------
Total capital share transactions ................ (0.11) 0.00(a) -- (1.39) 0.06 0.02
------- -------- ------- ------- ------- -------
NET ASSET VALUE ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS, END OF PERIOD ................... $ 8.98 $ 7.67 $ 10.52 $ 12.21 $ 19.90 $ 12.20
======= ======== ======= ======= ======= =======
Net asset value total return+ ................... 17.2% (27.1)% (13.3)% (24.9)% 96.6% 33.0%
======= ======== ======= ======= ======= =======
Market value, end of period ..................... $ 6.40 $ 6.40 $ 9.01 $ 10.31 $ 18.75 $ 10.94
======= ======== ======= ======= ======= =======
Total investment return++ ....................... 21.1% (29.0)% (12.1)% (35.0)% 106.6% 35.1%
======= ======== ======= ======= ======= =======
-------------------------
+ Based on net asset value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.
See accompanying notes to financial statements.
15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -------------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
---------------- -------- -------- ------- ------- -------
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation
value of preferred shares, end
of period (in 000's) ......................... $178,182 $132,683 $181,539 $205,893 $246,488 $163,742
Net assets attributable to common shares,
end of period (in 000's) ..................... $128,182 $109,533 $150,672 $175,026 $215,238 $132,492
Ratio of net investment income (loss)
to average net assets attributable
to common shares ............................. (0.27)%(d) (0.04)% (0.18)% 1.36% (0.30)% (0.32)%
Ratio of operating expenses to average net assets
attributable to common shares (c) ............ 1.87%(d) 1.46% 1.34% 1.46% 1.56% 2.53%
Ratio of operating expenses to average
total net assets including liquidation
value of preferred shares (c) ................ 1.41%(d) 1.18% 1.13% 1.27% 1.32% 2.01%
Portfolio turnover rate ........................ 0.8% 16.6% 25.4% 29.9% 43.1% 44.6%
PREFERRED STOCK:
7.92% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... -- $23,151 $30,868 $30,868 $31,250 $31,250
Total shares outstanding (in 000's) ............ -- 926 1,235 1,235 1,250 1,250
Liquidation preference per share ............... -- $25.00 $25.00 $25.00 $25.00 $25.00
Average market value (b) ....................... -- $25.75 $25.50 $23.54 $25.13 $25.96
6.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... $25,000 -- -- -- -- --
Total shares outstanding (in 000's) ............ 1,000 -- -- -- -- --
Liquidation preference per share ............... $25.00 -- -- -- -- --
Average market value (b) ....................... $25.60 -- -- -- -- --
AUCTION RATE CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) .... $25,000 -- -- -- -- --
Total shares outstanding (in 000's) ............ 1 -- -- -- -- --
Liquidation preference per share ............... $25,000 -- -- -- -- --
Average market value (b) ....................... $25,000 -- -- -- -- --
Asset coverage ................................. 356% 573% 588% 667% 789 524
Asset coverage per share ....................... $178.00 $143.28 $147.03 $166.76 $197.19 $112.97
----------------------
+ Based on net asset value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
++ Based on market value per share, adjusted for reinvestment of
distributions, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder. Total return for the
period of less than one year is not annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.
(c) The Trust incurred interest expense during the six months ended June 30,
2003. If interest expense had not been incurred, the expense ratio of
operating expenses to average net assets attributable to common stock would
be 1.61% and the expense ratio of operating expenses to average total net
assets including liquidation value of preferred shares would be 1.22%.
(d) Annualized.
See accompanying notes to financial statements.
16
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLAN
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Multimedia
Trust") to automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Multimedia Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Multimedia Trust to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Multimedia Trust. Plan participants may send
their stock certificates to EquiServe Trust Company ("EquiServe") to be held in
their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:
The Gabelli Global Multimedia Trust Inc.
c/o EquiServe
P.O. Box 43011
Providence, RI 02940-3011
Shareholders requesting this cash election must include the shareholder's name
and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact EquiServe at 1 (800)
336-6983.
SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe must do
so in writing or by telephone. Please submit your request to the above mentioned
address or telephone number. Include in your request your name, address and
account number. The cost to liquidate shares is $2.50 per transaction as well as
the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
If your shares are held in the name of a broker, bank or nominee, you should
contact such institution. If such institution is not participating in the Plan,
your account will be credited with a cash dividend. In order to participate in
the Plan through such institution, it may be necessary for you to have your
shares taken out of "street name" and re-registered in your own name. Once
registered in your own name your dividends will be automatically reinvested.
Certain brokers participate in the Plan. Shareholders holding shares in "street
name" at such participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the Plan
in lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Multimedia Trust's Common Stock is equal to or
exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Multimedia Trust's Common Stock. The
valuation date is the dividend or distribution payment date or, if that date is
not a NYSE trading day, the next trading day. If the net asset value of the
Common Stock at the time of valuation exceeds the market price of the Common
Stock, participants will receive shares from the Multimedia Trust valued at
market price. If the Multimedia Trust should declare a dividend or capital gains
distribution payable only in cash, EquiServe will buy Common Stock in the open
market, or on the NYSE or elsewhere, for the participants' accounts, except that
EquiServe will endeavor to terminate purchases in the open market and cause the
Multimedia Trust to issue shares at net asset value if, following the
commencement of such purchases, the market value of the Common Stock exceeds the
then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will
not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Multimedia Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan
at least 90 days before the record date for such dividend or distribution. The
Plan also may be amended or terminated by EquiServe on at least 90 days' written
notice to participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Multimedia Trust. In order to participate in
the Voluntary Cash Purchase Plan, shareholders must have their shares registered
in their own name and participate in the Dividend Reinvestment Plan.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to EquiServe for investments in the Multimedia Trust's
shares at the then current market price. Shareholders may send an amount from
$250 to $10,000. EquiServe will use these funds to purchase shares in the open
market on or about the 1st and 15th of each month. EquiServe will charge each
shareholder who participates $0.75, plus a pro rata share of the brokerage
commissions. Brokerage charges for such purchases are expected to be less than
the usual brokerage charge for such transactions. It is suggested that any
voluntary cash payments be sent to EquiServe, P.O. Box 43011, Providence, RI
02940-3011 such that EquiServe receives such payments approximately 10 days
before the investment date. Funds not received at least five days before the
investment date shall be held for investment until the next purchase date. A
payment may be withdrawn without charge if notice is received by EquiServe at
least 48 hours before such payment is to be invested.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Multimedia Trust.
17
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
DIRECTORS
Mario J. Gabelli, CFA
CHAIRMAN & CHIEF INVESTMENT OFFICER,
GABELLI ASSET MANAGEMENT INC.
Dr. Thomas E. Bratter
PRESIDENT, JOHN DEWEY ACADEMY
Anthony J. Colavita
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C.
James P. Conn
FORMER MANAGING DIRECTOR & CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
VICE PRESIDENT/MEDICAL AFFAIRS
LAWRENCE HOSPITAL CENTER
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT
Gus Coutsouros
VICE PRESIDENT & TREASURER
Peter W. Latartara
VICE PRESIDENT
Steven D.LaRosa
VICE PRESIDENT
James E. McKee
SECRETARY
INVESTMENT ADVISER
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
CUSTODIAN
State Street Bank and Trust Company
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
COUNSEL
Willkie Farr & Gallagher
STOCK EXCHANGE LISTING
COMMON 6.00% PREFERRED
------ ---------------
NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 14,259,953 1,000,000
The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity Funds," in Sunday's The New York Times and in
Monday's The Wall Street Journal. It is also listed in Barron's Mutual
Funds/Closed End Funds section under the heading "Specialized Equity Funds".
The Net Asset Value may be obtained each day by calling (914) 921-5071.
--------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Multimedia Trust may, from time to
time, purchase shares of its common stock in the open market when the
Multimedia Trust shares are trading at a discount of 10% or more from the net
asset value of the shares. The Multimedia Trust may also, from time to time,
purchase shares of its Cumulative Preferred Stock in the open market when the
shares are trading at a discount to the Liquidation Value of $25.00.
--------------------------------------------------------------------------------
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
SEMI-ANNUAL REPORT
JUNE 30, 2003
GBFMT SA/03
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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. 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 Exchange Act
(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 last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are attached hereto.
(b) Certifications pursuant to 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 09/03/03
-----------------------------------------
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 09/03/03
--------------------------------------------
By (Signature and Title)* /s/ Gus A. Coutsouros
----------------------------------------------
Gus A. Coutsouros, Principal Financial Officer
Date 09/03/03
--------------------------------------------
* Print the name and title of each signing officer under his or her signature.