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: December 31, 2004
-------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
[LOGO]
THE GABELLI
GLOBAL MULTIMEDIA
TRUST INC.
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
Annual Report
December 31, 2004
TO OUR SHAREHOLDERS,
The Sarbanes-Oxley Act requires a fund's principal executive and financial
officers to certify the entire contents of the semi-annual and annual
shareholder reports in a filing with the Securities and Exchange Commission on
Form N-CSR. This certification would cover the portfolio manager's commentary
and subjective opinions if they are attached to or a part of the financial
statements. Many of these comments and opinions would be difficult or impossible
to certify.
Because we do not want our portfolio managers to eliminate their opinions
and/or restrict their commentary to historical facts, we have separated their
commentary from the financial statements and investment portfolio and have sent
it to you separately. Both the commentary and the financial statements,
including the portfolio of investments, will be available on our website at
www.gabelli.com/funds.
Enclosed are the audited financial statements and the investment portfolio
as of December 31, 2004.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH DECEMBER 31, 2004(A)
---------------------------------------------------
Since
Inception
QUARTER 1 YEAR 3 YEAR 5 YEAR 10 YEAR (11/15/94)
------- ------ ------ ------ ------- ----------
GABELLI GLOBAL MULTIMEDIA TRUST
NAV RETURN (B) .................................. 17.19% 16.19% 5.26% (5.49)% 12.47% 12.38%
INVESTMENT RETURN (C) ........................... 19.60 17.75 5.83 (6.49) 11.70 11.43
MSCI AC World Free Index .......................... 12.31 15.75 8.08 (1.79) 8.19 8.16(d)
NASDAQ Composite Index ............................ 14.69 8.59 3.71 (11.77) 11.21 10.81
Lipper Global Multi-Cap Growth Fund Average ....... 12.51 14.60 7.35 (0.55) 9.26 8.69(d)
(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. THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) ALL COUNTRY (AC)
WORLD FREE AND NASDAQ COMPOSITE INDICES ARE UNMANAGED INDICATORS OF STOCK
MARKET PERFORMANCE, WHILE THE LIPPER AVERAGE REFLECTS THE AVERAGE
PERFORMANCE OF OPEN-END MUTUAL FUNDS CLASSIFIED IN THIS PARTICULAR
CATEGORY. DIVIDENDS ARE CONSIDERED REINVESTED EXCEPT FOR THE NASDAQ
COMPOSITE INDEX. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR MORE RECENT PERFORMANCE INFORMATION.
INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS AND CHARGES AND
EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. PERFORMANCE RETURNS FOR
PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN NET ASSET VALUE
(NAV), REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE,
ADJUSTMENTS FOR RIGHTS OFFERINGS, AND ARE NET OF EXPENSES. SINCE INCEPTION
RETURN BASED ON INITIAL NET ASSET VALUE OF $7.50.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE, REINVESTMENT OF DISTRIBUTIONS AND
ADJUSTMENTS FOR RIGHTS OFFERINGS. SINCE INCEPTION RETURN BASED ON INITIAL
OFFERING PRICE OF $7.50.
(d) FROM NOVEMBER 30, 1994, THE DATE CLOSEST TO THE TRUST'S INCEPTION FOR WHICH
DATA IS AVAILABLE.
--------------------------------------------------------------------------------
Sincerely yours,
/s/ BRUCE N. ALPERT
Bruce N. Alpert
President
February 24, 2005
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
Under SEC rules, all funds are required to include in their annual and
semi-annual shareholder reports a presentation of portfolio holdings in a table,
chart or graph by reasonably identifiable categories. The following table which
presents portfolio holdings as a percent of total net assets is provided in
compliance with such requirement.
Entertainment ........................................ 17.0%
Publishing ........................................... 15.2%
Broadcasting ......................................... 10.6%
Telecommunications: Regional ......................... 9.3%
U.S. Government Obligations .......................... 8.3%
Hotels and Gaming .................................... 8.0%
Wireless Communications .............................. 6.8%
Cable ................................................ 5.3%
Telecommunications: National ......................... 5.3%
Computer Software and Services ....................... 2.0%
Equipment ............................................ 1.9%
Business Services .................................... 1.7%
Satellite ............................................ 1.7%
Diversified Industrial ............................... 1.7%
Electronics .......................................... 1.5%
Consumer Services .................................... 1.4%
Telecommunications: Long Distance .................... 1.4%
Energy and Utilities ................................. 0.4%
Consumer Products .................................... 0.2%
Financial Services ................................... 0.2%
Food and Beverage .................................... 0.1%
------
100.0%
======
THE GABELLI GLOBAL MULTIMEDIA TRUST INC. (THE "TRUST") FILES A COMPLETE SCHEDULE
OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FIRST AND THIRD QUARTERS OF EACH
FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS FILED FOR THE QUARTER ENDED
SEPTEMBER 30, 2004. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM
OR BY CALLING THE TRUST AT 800-GABELLI (800-422-3554). THE TRUST'S FORM N-Q IS
AVAILABLE ON THE SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND
COPIED AT THE COMMISSION'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION
ON THE OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING
1-800-SEC-0330.
PROXY VOTING: The Trust files Form N-PX with its complete proxy voting record
for the 12 months ended June 30th, no later than August 31st of each year. A
description of the Trust's proxy voting policies and procedures are available
(i) without charge, upon request, by calling 800-GABELLI (800-422-3554); (ii) by
writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and
(iii) by visiting the Securities and Exchange Commission's website at
www.sec.gov.
2
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 2004
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 90.4%
COPYRIGHT/CREATIVITY COMPANIES -- 40.0%
BUSINESS SERVICES: ADVERTISING -- 0.5%
8,000 Donnelley (R.H.) Corp.+ ... $ 101,139 $ 472,400
20,000 Harte-Hanks Inc. .......... 147,611 519,600
4,200 Havas SA .................. 20,733 23,977
2,000 Publicis Groupe ........... 13,971 64,836
------------ ------------
283,454 1,080,813
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.0%
40,000 Agere Systems Inc., Cl. B+ 102,129 54,000
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 2.0%
3,375 Activision Inc.+ .......... 6,415 68,107
5,000 America Online Latin
America Inc., Cl. A+ .... 2,150 3,750
3,000 Atlus Co. Ltd. ............ 17,662 17,654
9,473 CNET Networks Inc.+ ....... 102,468 106,382
3,230 EarthLink Inc.+ ........... 45,250 37,210
1,000 Electronic Arts Inc.+ ..... 5,588 61,680
1,000 EMC Corp.+ ................ 6,600 14,870
100 Google Inc., Cl. A+ ....... 8,860 19,310
10,000 Jupitermedia Corp.+ ....... 12,067 237,800
1,000 Maxtor Corp.+ ............. 9,243 5,300
65,000 Microsoft Corp. ........... 1,465,256 1,736,150
2,000 Mobius Management
Systems Inc.+ ........... 12,540 14,508
1,000 Pixar+ .................... 39,153 85,610
54,000 Yahoo! Inc.+ .............. 808,177 2,034,720
------------ ------------
2,541,429 4,443,051
------------ ------------
CONSUMER PRODUCTS -- 0.2%
6,000 Department 56 Inc.+ ....... 65,655 99,900
200 eBay Inc.+ ................ 6,163 23,256
20,000 Mattel Inc. ............... 241,358 389,800
------------ ------------
313,176 512,956
------------ ------------
ELECTRONICS -- 1.5%
6,624 Freescale Semiconductor Inc.,
Cl. B+ .................. 76,359 121,617
5,000 Intel Corp. ............... 154,345 116,950
3,570 Royal Philips Electronics
NV, ADR ................. 29,368 94,605
10,000 Samsung Electronics Co. Ltd.,
GDR (b) ................. 1,805,500 2,175,908
22,000 Sony Corp., ADR ........... 840,026 857,120
6,000 Zoran Corp.+ .............. 93,171 69,480
------------ ------------
2,998,769 3,435,680
------------ ------------
ENTERTAINMENT -- 12.4%
60,000 Canal Plus, ADR ........... 10,818 94,200
1,000 Corporacion Interamericana de
Entretenimiento SA de CV,
Cl. B+ .................. 2,116 3,140
25,000 Crown Media Holdings Inc.,
Cl. A+ .................. 146,640 215,000
31,622 EMI Group plc ............. 108,730 160,884
30,000 EMI Group plc, ADR ........ 394,397 305,265
50,000 Fox Entertainment Group Inc.,
Cl. A+ .................. 1,259,670 1,563,000
220,000 Gemstar-TV Guide
International Inc.+ ..... 1,573,597 1,302,400
70,000 GMM Grammy Public
Co. Ltd. ................ 55,457 30,991
481 Henley LP+ (c) ............ 0 1,443
MARKET
SHARES COST VALUE
------ ---- ------
722,715 Liberty Media Corp.,
Cl. A+ .................. $ 2,239,611 $ 7,935,411
100,000 Shaw Brothers
(Hong Kong) Ltd. ........ 145,929 110,644
95,000 Six Flags Inc.+ ........... 609,489 510,150
70,000 SMG plc ................... 205,497 143,464
85,000 The Walt Disney Co. ....... 1,972,305 2,363,000
200,000 Time Warner Inc.+ ......... 3,192,596 3,888,000
140,000 Viacom Inc., Cl. A ........ 2,104,965 5,191,200
120,000 Vivendi Universal SA, ADR+ 3,659,570 3,848,400
6,000 World Wrestling
Entertainment Inc. ...... 76,680 72,780
------------ ------------
17,758,067 27,739,372
------------ ------------
FINANCIAL SERVICES -- 0.2%
8,000 H&R Block Inc. ............ 162,450 392,000
------------ ------------
HOTELS AND GAMING -- 8.0%
8,000 Aztar Corp.+ .............. 40,900 279,360
30,000 Caesars Entertainment Inc.+ 248,132 604,200
8,000 Churchill Downs Inc. ...... 193,280 357,600
178,000 Gaylord Entertainment Co.+ 4,577,787 7,392,340
5,000 Greek Organization of Football
Prognostics SA .......... 54,100 138,372
32,000 GTECH Holdings Corp. ...... 150,844 830,400
740,000 Hilton Group plc .......... 2,809,249 4,041,967
10,000 Kerzner International Ltd.+ 487,664 600,500
55,000 Magna Entertainment Corp.,
Cl. A+ .................. 358,030 331,100
41,000 MGM Mirage+ ............... 1,285,427 2,982,340
6,000 Starwood Hotels & Resorts
Worldwide Inc. .......... 185,708 350,400
------------ ------------
10,391,121 17,908,579
------------ ------------
PUBLISHING -- 15.2%
20,000 Arnoldo Mondadori
Editore SpA ............... 63,827 230,801
100,000 Belo Corp., Cl. A ......... 1,556,990 2,624,000
1,000 Dow Jones & Co. Inc. ...... 46,722 43,060
20,000 EMAP plc .................. 207,970 313,136
12,000 Gannett Co. Inc. .......... 644,658 980,400
2,833 Golden Books Family
Entertainment Inc.+ ..... 0 9
2,000 Hollinger International Inc.,
Cl. A ................... 26,475 31,360
144,400 Independent News &
Media plc ............... 193,226 455,359
12,000 Journal Register Co.+ ..... 193,975 231,960
15,000 Knight-Ridder Inc. ........ 659,380 1,004,100
50,000 Lee Enterprises Inc. ...... 1,107,924 2,304,000
19,000 McClatchy Co., Cl. A ...... 517,138 1,364,390
20,000 McGraw-Hill Companies Inc. 1,243,770 1,830,800
23,000 Media General Inc., Cl. A . 1,038,401 1,490,630
27,000 Meredith Corp. ............ 636,668 1,463,400
100,000 Nation Multimedia Group plc 84,677 32,561
100,000 New Straits Times
Press Berhad+ ........... 296,714 104,737
224,414 News Corp., Cl. A ......... 2,809,502 4,187,565
40,000 News Corp., Cl. B ......... 396,739 768,000
150,000 Oriental Press Group Ltd. . 46,315 52,105
130,000 Penton Media Inc.+ ........ 458,293 11,700
10,000 Playboy Enterprises Inc.,
Cl. A+ .................. 97,125 116,300
974,000 Post Publishing plc (c) ... 47,100 130,995
200,000 PRIMEDIA Inc.+ ............ 980,335 760,000
See accompanying notes to financial statements.
3
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
PUBLISHING (CONTINUED)
47,000 Pulitzer Inc. ............. $ 1,529,619 $ 3,047,950
90,000 Reader's Digest
Association Inc. ........ 1,506,323 1,251,900
1,000 Scholastic Corp.+ ......... 16,500 36,960
251,520 SCMP Group Ltd. ........... 181,457 104,359
64,000 Scripps (E.W.) Co., Cl. A . 2,887,044 3,089,920
252,671 Singapore Press
Holdings Ltd. ........... 742,032 712,011
300 Spir Communication ........ 23,329 58,842
15,000 Telegraaf Holdingsmij
- CVA ................... 285,271 372,095
45,000 Thomas Nelson Inc. ........ 533,873 1,017,000
84,000 Tribune Co. ............... 3,528,623 3,539,760
15,000 United Business Media
plc, ADR ................ 123,285 135,000
2,000 VNU NV .................... 58,222 59,073
800 Wiley (John) & Sons Inc.,
Cl. B ................... 5,693 27,680
4,000 Wolters Kluwer NV - CVA ... 90,625 80,304
------------ ------------
24,865,820 34,064,222
------------ ------------
TOTAL COPYRIGHT/
CREATIVITY
COMPANIES ............... 59,416,415 89,630,673
------------ ------------
DISTRIBUTION COMPANIES -- 50.4%
BROADCASTING -- 9.9%
1,560 Asahi Broadcasting Corp. .. 62,912 105,045
18,000 CanWest Global
Communications Corp.+ ... 156,992 217,170
18,000 CanWest Global
Communications Corp.,
Sub-Voting+ ............. 92,011 217,235
6,400 Chubu-Nippon Broadcasting
Co., Ltd. ............... 46,375 70,264
5,000 Clear Channel
Communications Inc. ..... 216,657 167,450
8,333 Corus Entertainment Inc.,
Cl. B ................... 33,927 173,872
9,000 Cox Radio Inc., Cl. A+ .... 55,500 148,320
1,000 Emmis Communications
Corp., Cl. A+ ........... 10,489 19,190
30,020 Fisher Communications
Inc.+ ................... 1,574,095 1,467,378
228 Fuji Television Network
Inc. .................... 526,693 493,959
75,000 Granite Broadcasting
Corp.+ .................. 421,275 30,750
100,000 Gray Television Inc. ...... 1,295,437 1,550,000
10,000 Gray Television Inc.,
Cl. A ................... 121,313 141,500
10,000 Grupo Radio Centro, SA de
CV, ADR+ ................ 46,871 67,500
30,000 Hearst-Argyle Television
Inc. .................... 302,404 791,400
4,550 Lagardere SCA ............. 100,163 328,402
151,000 Liberty Corp. ............. 6,950,356 6,637,960
35,000 Lin TV Corp., Cl. A+ ...... 758,078 668,500
5,140 Media Prima Berhad+ (c) ... 0 2,313
4,000 Metropole Television SA ... 35,208 113,633
1,200 Nippon Broadcasting
System Inc. ............. 29,276 59,139
7,000 Nippon Television
Network Corp. ........... 1,078,903 1,051,332
4,650 NRJ Group ................. 22,694 102,076
1,000 NTN Communications Inc.+ .. 862 3,190
110,000 Paxson Communications
Corp.+ .................. 750,472 151,800
500 Radio One Inc., Cl. A+ .... 5,510 8,050
MARKET
SHARES COST VALUE
------ ---- ------
1,000 Radio One Inc., Cl. D+ .... $ 11,428 $ 16,120
1,500 RTL Group (Brussels) ...... 76,363 111,934
3,500 RTL Group (New York) ...... 113,838 261,656
1,906 SAGA Communications Inc.,
Cl. A+ .................. 9,709 32,116
70,000 Salem Communications
Corp., Cl. A+ ........... 1,060,175 1,746,500
2,000 SBS Broadcasting SA+ ...... 42,022 80,460
70,000 Sinclair Broadcast Group Inc.,
Cl. A ................... 743,915 644,700
25,000 Societe Television
Francaise 1 ............. 249,649 813,851
5,000 Spanish Broadcasting System
Inc., Cl. A+ ............ 43,950 52,800
50,000 Television Broadcasts Ltd. 187,673 232,223
110,000 Tokyo Broadcasting
System Inc. ............. 1,662,133 1,793,793
258 TV Asahi Corp. ............ 434,628 523,705
15,000 TV Azteca, SA de CV, ADR .. 72,420 154,200
26,000 Ulster Television plc ..... 105,595 220,136
61,400 Young Broadcasting Inc.,
Cl. A+ .................. 1,689,545 648,384
------------ ------------
21,197,516 22,120,006
------------ ------------
BUSINESS SERVICES -- 0.6%
15,000 Carlisle Holdings Ltd. .... 78,754 108,600
40,000 Cendant Corp. ............. 456,338 935,200
500 CheckFree Corp.+ .......... 5,520 19,040
1,000 Convergys Corp.+ .......... 17,738 14,990
500 Dun and Bradstreet Corp.+ . 6,320 29,825
8,000 Interactive Data Corp.+ ... 52,250 173,920
1,000 Moody's Corp. ............. 20,012 86,850
2,500 Traffix Inc. .............. 12,500 15,875
------------ ------------
649,432 1,384,300
------------ ------------
CABLE -- 5.3%
16,578 Austar United
Communications Ltd.+ .... 22,427 12,346
200,000 Cablevision Systems Corp.,
Cl. A+ .................. 4,048,600 4,980,000
50,000 Charter Communications Inc.,
Cl. A+ .................. 103,842 112,000
37,350 Comcast Corp., Cl. A+ ..... 1,104,551 1,243,008
7,000 Comcast Corp., Cl. A,
Special+ ................ 53,073 229,880
73,362 Liberty Media International
Inc., Cl. A+ ............ 1,648,784 3,391,525
15,000 Mediacom Communications
Corp., Cl. A+ ........... 126,904 93,750
39,000 Shaw Communications Inc.,
Cl. B ................... 105,571 713,825
11,000 Shaw Communications Inc.,
Cl. B, Non-Voting ....... 103,451 201,190
28 Telewest Global Inc.+ ..... 37,551 496
89,730 UnitedGlobalCom Inc., Cl. A+ 530,024 866,792
------------ ------------
7,884,778 11,844,812
------------ ------------
CONSUMER SERVICES -- 1.4%
4,000 Bowlin Travel Centers Inc.+ 3,022 7,800
112,400 IAC/InterActiveCorp+ ...... 2,658,200 3,104,488
2,000 Martha Stewart Living
Omnimedia Inc., Cl. A+ .. 16,500 58,040
4,000 TiVo Inc.+ ................ 27,943 23,480
------------ ------------
2,705,665 3,193,808
------------ ------------
See accompanying notes to financial statements.
4
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
DIVERSIFIED INDUSTRIAL -- 1.7%
50,000 Bouygues SA ............... $ 1,426,440 $ 2,310,725
40,000 General Electric Co. ...... 1,232,250 1,460,000
7,700 Hutchison Whampoa Ltd. .... 71,267 72,070
7,908 Malaysian Resources Corp. .
Berhad+ ................. 41,566 1,602
------------ ------------
2,771,523 3,844,397
------------ ------------
ENERGY AND UTILITIES -- 0.4%
44,000 El Paso Electric Co.+ ..... 351,452 833,360
------------ ------------
ENTERTAINMENT -- 4.6%
5,000 Blockbuster Inc., Cl. A ... 52,438 47,700
3,150 British Sky Broadcasting
Group plc, ADR .......... 56,080 137,560
2,500 DreamWorks Animation
SKG Inc., Cl. A+ ........ 70,000 93,775
100,000 GC Companies Inc.+ (c) .... 241,092 86,000
150,000 Grupo Televisa SA, ADR .... 5,084,850 9,075,000
68,747 ITV plc ................... 143,456 138,917
4,587 ITV plc, Cv.+ ............. 4,538 3,479
32,730 Metro-Goldwyn-Mayer Inc.+ . 266,262 388,832
17,000 Regal Entertainment Group,
Cl. A ................... 323,000 352,750
------------ ------------
6,241,716 10,324,013
------------ ------------
EQUIPMENT -- 1.9%
11,450 American Tower Corp., Cl. A+ 134,266 210,680
1,000 Amphenol Corp., Cl. A+ .... 7,794 36,740
35,000 Andrew Corp.+ ............. 141,088 477,050
416 Avaya Inc.+ ............... 9,761 7,155
2,000 CommScope Inc.+ ........... 29,407 37,800
90,000 Corning Inc.+ ............. 825,299 1,059,300
3,000 Furukawa Electric
Co. Ltd.+ ............... 22,588 16,630
3,000 L-3 Communications
Holdings Inc. ............. 33,000 219,720
80,000 Lucent Technologies Inc.+ . 486,490 300,800
60,000 Motorola Inc. ............. 672,385 1,032,000
30,000 Nortel Networks Corp.+ .... 140,250 104,700
12,000 QUALCOMM Inc. ............. 31,219 508,800
6,000 Scientific-Atlanta Inc. ... 50,804 198,060
20,000 Sycamore Networks Inc.+ ... 63,894 81,200
200 Trestle Holdings Inc.+ .... 2,500 430
------------ ------------
2,650,745 4,291,065
------------ ------------
FOOD AND BEVERAGE -- 0.1%
30,000 Allied Domecq plc ......... 183,988 295,473
5,282 Compass Group plc ......... 37,648 24,972
------------ ------------
221,636 320,445
------------ ------------
SATELLITE -- 1.7%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR ...... 5,693 5,610
80,000 DIRECTV Group Inc.+ ....... 1,347,414 1,339,200
35,000 EchoStar Communications
Corp., Cl. A ............ 319,587 1,163,400
10,000 Lockheed Martin Corp. ..... 278,625 555,500
3,000 Loral Space &
Communications Ltd.+ .... 510 510
50,000 Pegasus Communications
Corp., Cl. A+ ........... 404,943 469,500
MARKET
SHARES COST VALUE
------ ---- ------
6,000 PT Indosat Tbk, ADR ....... $ 58,079 $ 187,080
30 SKY Perfect
Communications Inc. ..... 15,472 32,497
------------ ------------
2,430,323 3,753,297
------------ ------------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.4%
30,000 AT&T Corp. ................ 890,847 571,800
1,000 Embratel Participacoes
SA, ADR+ ................ 4,150 10,520
35,000 Philippine Long Distance
Telephone Co., ADR+ ..... 597,989 872,550
65,000 Sprint Corp. .............. 1,136,075 1,615,250
1,000 Startec Global
Communications
Corp.+ (c) .............. 4,645 2
1,666 Talk America Holdings
Inc.+ ................... 2,529 11,029
------------ ------------
2,636,235 3,081,151
------------ ------------
TELECOMMUNICATIONS: NATIONAL -- 5.3%
10,000 BT Group plc, ADR ......... 428,060 395,300
5,000 China Telecom Corp. .......
Ltd., ADR ................. 126,250 184,000
5,000 China Unicom Ltd., ADR .... 38,450 39,250
40,000 Compania de
Telecomunicaciones de
Chile SA, ADR ........... 665,851 449,600
162,000 Deutsche Telekom AG, ADR+ . 2,279,995 3,674,160
50,000 Elisa Corp.+ .............. 527,900 806,035
3,000 France Telecom SA, ADR .... 48,120 99,240
3,305 Hellenic Telecommunications
Organization SA ......... 39,578 59,389
500 Magyar Tavkozlesi Rt, ADR . 9,650 12,205
20 Nippon Telegraph &
Telephone Corp. ......... 123,433 89,782
4,320 PT Telekomunikasi
Indonesia, ADR .......... 18,512 90,806
6,000 Rostelecom, ADR ........... 41,408 65,640
45,000 Swisscom AG, ADR .......... 1,217,835 1,778,850
2,000 Telecom Corp. of New
Zealand Ltd., ADR ....... 31,000 70,920
58,000 Telefonica SA, ADR ........ 1,382,739 3,277,000
19,000 Telefonos de Mexico SA de
CV, Cl. L, ADR .......... 177,884 728,080
18,172 TeliaSonera AB ............ 51,070 108,834
2,400 Telstra Corp. Ltd., ADR ... 30,324 45,936
------------ ------------
7,238,059 11,975,027
------------ ------------
TELECOMMUNICATIONS: REGIONAL -- 9.3%
4,266 Aliant Inc. ............... 39,187 98,982
6,000 Allegiance Telecom Inc.+ (c) 28,659 28
7,000 ALLTEL Corp. .............. 372,121 411,320
9,557 ATX Communications Inc.+ .. 24,550 382
40,000 BCE Inc. .................. 839,129 965,200
4,000 Brasil Telecom Participacoes
SA, ADR ................. 231,474 152,600
47,000 CenturyTel Inc. ........... 1,440,777 1,667,090
2,000 Choice One
Communications Inc.+ (c) 700 0
120,000 Cincinnati Bell Inc.+ ..... 980,612 498,000
143,000 Citizens Communications Co. 1,663,753 1,971,970
50,000 Commonwealth Telephone
Enterprises Inc.+ ....... 1,136,673 2,483,000
3,000 Metromedia International
Group Inc.+ ............. 345 1,680
350,646 Qwest Communications
International Inc.+ ..... 2,051,890 1,556,868
See accompanying notes to financial statements.
5
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS: REGIONAL (CONTINUED)
260,345 Rogers Communications Inc.,
Cl. B, New York .......... $ 2,120,383 $ 6,808,022
9,655 Rogers
Communications Inc.,
Cl. B, Toronto .......... 148,206 253,352
6,000 SBC Communications Inc. ... 145,321 154,620
18,432 Tele Norte Leste Participacoes
SA, ADR ................. 252,380 310,948
10,000 Telecom Argentina SA,
Cl. B, ADR+ ............. 26,440 109,600
45,000 TELUS Corp. ............... 810,821 1,360,347
15,000 TELUS Corp., Non-Voting ... 347,478 434,920
4,000 Time Warner Telecom Inc.,
Cl. A+ .................. 25,000 17,440
40,000 Verizon Communications
Inc. .................... 1,491,890 1,620,400
------------ ------------
14,177,789 20,876,769
------------ ------------
WIRELESS COMMUNICATIONS -- 6.8%
34,000 America Movil SA de CV,
Cl. L, ADR .............. 531,002 1,779,900
102 Hutchison Telecommunications
International Ltd.+ ..... 79 92
240,000 Jasmine International Public
Co. Ltd.+ (c) ........... 5,040 3,984
29,600 mm02 plc, ADR+ ............ 264,820 697,672
500 NTT DoCoMo Inc. ........... 762,806 922,221
31,500 Price Communications
Corp.+ .................. 293,906 585,585
10,800 Rural Cellular Corp.,
Cl. A+ .................. 22,788 67,273
37,000 SK Telecom Co. Ltd., ADR .. 828,800 823,250
2,449 Tele Centro Oeste Celular
Participacoes SA, ADR ... 7,341 24,172
190 Tele Leste Celular
Participacoes SA, ADR+ .. 5,082 2,308
330 Tele Norte Celular
Participacoes SA, ADR ... 5,098 3,013
350,000 Telecom Italia Mobile SpA 1,680,518 2,616,556
825 Telemig Celular Participacoes
SA, ADR ................. 23,843 23,290
68,000 Telephone & Data
Systems Inc. ............ 4,836,192 5,232,600
8,914 Telesp Celular Participacoes
SA, ADR+ ................ 221,790 60,613
3,178 Tim Participacoes SA, ADR 38,554 49,005
15,000 Total Access
Communications plc+ ..... 66,339 53,100
17,500 United States Cellular
Corp.+ .................. 564,709 783,300
19,000 Vimpel-Communications,
ADR+ .................... 133,813 686,660
12,650 Vodafone Group plc, ADR ... 203,637 346,357
16,000 Western Wireless Corp.,
Cl. A+ .................. 50,272 468,800
------------ ------------
10,546,429 15,229,751
------------ ------------
TOTAL DISTRIBUTION
COMPANIES ............... 81,703,298 113,072,201
------------ ------------
TOTAL COMMON STOCKS ....... 141,119,713 202,702,874
------------ ------------
MARKET
SHARES COST VALUE
------ ---- ------
PREFERRED STOCKS -- 0.9%
BROADCASTING -- 0.7%
1,063 Granite Broadcasting Corp.,
12.750% Pfd.+ ........... $ 439,683 $ 515,555
100 Gray Television Inc.,
8.000% Cv. Pfd.,
Ser. C (c) .............. 1,000,000 1,077,137
------------ ------------
1,439,683 1,592,692
------------ ------------
BUSINESS SERVICES -- 0.2%
10,809 Interep National Radio
Sales Inc., 4.000% Cv.
Pfd., Ser. A (c) ........ 1,081,573 358,990
------------ ------------
TOTAL PREFERRED
STOCKS .................. 2,521,256 1,951,682
------------ ------------
RIGHTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad
expires 07/18/08+ ....... 1,353 1,407
------------ ------------
WARRANTS -- 0.0%
BROADCASTING -- 0.0%
5,140 Media Prima Berhad,
expires 07/31/08+ 135 1,075
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.0%
541 Lucent Technologies Inc.,
expires 12/10/07+ ....... 898 855
------------ ------------
PUBLISHING -- 0.0%
25,000 Nation Multimedia
Group plc+ (c) 0 1,194
------------ ------------
TOTAL WARRANTS ............ 1,033 3,124
------------ ------------
PRINCIPAL
AMOUNT
--------
CORPORATE BONDS -- 0.4%
BUSINESS SERVICES -- 0.4%
$ 50,000 BBN Corp., Sub. Deb. Cv.,
6.000%, 04/01/12+ (a)(c) 49,458 0
Trans-Lux Corp., Sub. Deb. Cv.,
300,000 8.250%, 03/01/2012 .... 292,404 304,500
500,000 7.500%, 12/01/2006 .... 502,291 507,500
------------ ------------
TOTAL CORPORATE
BONDS ................... 844,153 812,000
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 8.3%
18,693,000 U.S. Treasury Bills,
1.786% to 2.202%++,
01/13/05 to 03/17/05 .... 18,631,368 18,630,496
------------ ------------
TOTAL INVESTMENTS-- 100.0% ............. $163,118,876 224,101,583
============
LIABILITIES IN EXCESS OF OTHER ASSETS ............... (362,175)
PREFERRED STOCK
(994,100 preferred shares outstanding) ............ (49,827,500)
------------
NET ASSETS -- COMMON STOCK
(14,170,253 common shares outstanding) ............ $173,911,908
============
NET ASSET VALUE PER COMMON SHARE
($173,911,908 / 14,170,253 shares outstanding) ... 12.27
=====
See accompanying notes to financial statements.
6
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 2004
----------
For Federal tax purposes:
Aggregate cost ......................... $168,091,169
============
Gross unrealized appreciation .......... $ 66,249,502
Gross unrealized depreciation .......... (10,091,993)
------------
Net unrealized appreciation
(depreciation) ........................ $ 56,157,509
============
----------
(a) Security in default.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
December 31, 2004, the Rule 144A securities are considered liquid and the
market value amounted to $2,175,908 or 0.97% of total investments.
(c) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At December 31, 2004,
the market value of fair valued securities amounted to $1,662,086 or
0.74% of total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depository Receipt.
GDR - Global Depository Receipt.
% OF
MARKET MARKET
VALUE VALUE
------ ------
GEOGRAPHIC DIVERSIFICATION
North America .............. 76.1% $170,501,982
Europe ..................... 13.5 30,187,751
Latin America .............. 5.0 11,223,589
Asia/Pacific ............... 2.7 6,155,119
Japan ...................... 2.7 6,033,142
----- ------------
100.0% $224,101,583
===== ============
See accompanying notes to financial statements.
7
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2004
ASSETS:
Investments, at value (cost $163,118,876).. $224,101,583
Cash and foreign currency, at value
(cost $75,461) ........................... 75,761
Receivable for investments sold ............ 1,617,355
Dividends and interest receivable .......... 231,661
Unrealized appreciation on swap contracts .. 144,785
Other assets ............................... 10,219
------------
TOTAL ASSETS ............................... 226,181,364
------------
LIABILITIES:
Payable for investment purchased ........... 1,622,353
Payable for investment advisory fees ....... 636,280
Payable for shareholder communications fees 72,343
Payable for payroll expense ................ 29,834
Dividends payable .......................... 26,023
Payable for audit and legal fees ........... 20,490
Payable to custodian ....................... 15,030
Other accrued expenses and liabilities ..... 19,603
------------
TOTAL LIABILITIES .......................... 2,441,956
------------
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 1000 shares issued
and outstanding) ........................ 25,000,000
------------
TOTAL PREFERRED STOCK ...................... 49,827,500
------------
NET ASSETS ATTRIBUTABLE TO COMMON
STOCK SHAREHOLDERS .......................$173,911,908
============
NET ASSETS ATTRIBUTABLE TO COMMON STOCK
SHAREHOLDERS CONSIST OF:
Capital stock, at par value ................$ 14,170
Additional paid-in capital ................. 117,742,662
Accumulated net investment income .......... 25,450
Accumulated net realized loss on
investments, swap contracts and
foreign currency transactions ............. (5,000,176)
Net unrealized appreciation on
investments, swap contracts and
foreign currency translations ............. 61,129,802
------------
TOTAL NET ASSETS ...........................$173,911,908
============
NET ASSET VALUE PER COMMON SHARE
($173,911,908 / 14,170,253 shares
outstanding; 196,750,000 shares
authorized of $0.001 par value) ........ $12.27
======
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
INVESTMENT INCOME:
Dividends (net of foreign taxes
of $122,603) .............................. $ 3,739,065
Interest ................................... 233,852
-----------
TOTAL INVESTMENT INCOME .................... 3,972,917
-----------
EXPENSES:
Investment advisory fees ................... 1,972,573
Shareholder communications expenses ........ 296,279
Payroll .................................... 166,947
Shareholder services fees .................. 79,525
Directors' fees ............................ 68,000
Custodian fees ............................. 62,445
Auction agent fees ......................... 61,200
Legal and audit fees ....................... 43,100
Accounting fees ............................ 34,800
Miscellaneous expenses ..................... 97,072
-----------
TOTAL EXPENSES ............................. 2,881,941
-----------
NET INVESTMENT INCOME ...................... 1,090,976
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
SWAP CONTRACTS AND FOREIGN CURRENCY:
Net realized gain on investments ........... 1,728,001
Net realized loss on foreign currency
transactions ............................. (479)
Net realized loss on swap contracts ........ (550,383)
-----------
Net realized gain on investments, swap
contracts and foreign currency transactions 1,177,139
-----------
Net change in unrealized appreciation/depreciation
on investments, swap contracts and foreign
currency translations .................... 23,752,164
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
SWAP CONTRACTS AND FOREIGN CURRENCY ...... 24,929,303
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... 26,020,279
-----------
Total Distributions to Preferred
Stock Shareholders ....................... (1,867,059)
-----------
NET INCREASE IN NET ASSETS ATTRIBUTABLE
TO COMMON STOCK SHAREHOLDERS RESULTING
FROM OPERATIONS .......................... $24,153,220
===========
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
OPERATIONS:
Net investment income (loss) ............................................................$ 1,090,976* $ (451,971)*
Net realized gain on investments and foreign currency transactions ...................... 1,177,139* 1,673,586*
Net change in unrealized appreciation/depreciation on investments,
swap contracts and foreign currency translations ...................................... 23,752,164* 43,221,001*
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................... 26,020,279 44,442,616
------------ ------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ................................................................... (515,381) --
Net realized short-term gains on investments and foreign currency transactions .......... (355,500) --
Net realized long-term gains on investments and foreign currency transactions ........... (996,178) (1,815,651)
------------ ------------
TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS ..................................... (1,867,059) (1,815,651)
------------ ------------
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS
RESULTING FROM OPERATIONS ............................................................. 24,153,220 42,626,965
------------ ------------
TRUST SHARE TRANSACTIONS:
Net decrease from repurchase of common shares ........................................... (444,435) (522,334)
Net increase from repurchase of preferred shares ........................................ 8,254 --
Offering costs for preferred shares charged to paid-in capital .......................... -- (1,442,569)
------------ ------------
NET DECREASE IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ................................ (436,181) (1,964,903)
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS .................... 23,717,039 40,662,062
NET ASSETS ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS:
Beginning of period ..................................................................... 150,194,869 109,532,807
------------ ------------
End of period ...........................................................................$173,911,908 $150,194,869
============ ============
----------
* As a result of changes in generally accepted accounting principles, the
Multimedia Trust has reclassified periodic payments made under interest
rate swap agreements, previously included within interest income, as a
component of realized and unrealized gain (loss) in the statement of
operations. The effect of this reclassification was to increase net
investment income and decrease realized and unrealized gain by $573,973 and
$470,703 for years ended December 31, 2004 and December 31, 2003,
respectively.
See accompanying notes to financial statements.
8
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS
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 notice at
least 60 days prior to the implementation of any change in the 80% Policy.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the 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 foreign markets are generally
valued at the preceding closing values of such securities on their respective
exchanges or if after the close of foreign markets, but prior to the close of
business on the day the securities are being valued, market conditions change
significantly, certain foreign securities may be fair valued pursuant to
procedures established by the Board. Debt instruments that are not credit
impaired with remaining maturities of 60 days or less are valued at amortized
cost, unless the Board determines such does not reflect the securities' fair
value, in which case these securities will be valued at their fair value as
determined by the Board. Debt instruments having a maturity greater than 60 days
for which market quotations are readily available are valued at the latest
average of the bid and asked prices. If there were no asked prices quoted on
such day, the security is valued using the closing bid price. Futures contracts
are valued at the closing settlement price of the exchange or board of trade on
which the applicable contract is traded.
Securities and assets for which market quotations are not readily available
are valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.
REPURCHASE AGREEMENTS. The Multimedia Trust may enter into repurchase
agreements with primary government securities dealers recognized by the Federal
Reserve Board, with member banks of the Federal Reserve System or with other
brokers or dealers that meet credit guidelines established by the Adviser and
reviewed by the Board. Under the terms of a typical 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 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.
9
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Multimedia Trust has entered into two interest rate swap agreements
with Citibank N.A. Under the agreement the Multimedia 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 December 31, 2004 are as follows:
NOTIONAL FLOATING RATE* TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE APPRECIATION/(DEPRECIATION)
----------- ---------- -------------------- ----------- ---------------------------
$10,000,000 4.32% 2.33% April 4, 2013 $ (4,691)
$15,000,000 3.27% 2.33% April 4, 2008 $149,476
----------
* Based on Libor (London Interbank Offered Rate).
As a result of a FASB Emerging Issues Task Force consensus (and subsequent
related SEC staff guidance), the Multimedia Trust has reclassified periodic
payments made under interest rate swap agreements, previously included within
interest income, as a component of realized gain (loss) in the statement of
operations. For consistency, similar reclassifications have been made to amounts
appearing in the previous year's statement of changes in net assets and the per
share amounts in prior year financial highlights. Prior year net investment
income ratios in the financial highlights have also been modified accordingly.
This reclassification increased net investment income and decreased net
realized and unrealized gains by $573,973 and $470,703 for the years ended
December 31, 2004 and December 31, 2003, respectively, but had no effect on the
Multimedia Trust's net asset value, either in total or per share, or its total
increase (decrease) in net assets from operations during any period.
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 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 TRANSLATIONS. 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 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 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.
10
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOREIGN SECURITIES. The Multimedia Trust may directly purchase securities
of foreign issuers. Investing in securities of foreign issuers involves special
risks not typically associated with investing in securities of U.S. issuers. The
risks include possible revaluation of currencies, the ability to repatriate
funds, less complete financial information about companies and possible future
adverse political and economic developments. Moreover, securities of many
foreign issuers and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. issuers.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Distributions to 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 that determined under U.S.
generally accepted accounting principles.
For the year ended December 31, 2004, reclassifications were made to
decrease accumulated net investment income by $550,145 and to decrease
accumulated net realized loss on investments, swap contracts and foreign
currency transactions by $550,862 with an offsetting adjustment to paid-in
capital.
The tax characteristics of distributions paid during the fiscal year ended
December 31, 2004 and December 31, 2003 were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
----------------- -----------------
Preferred Preferred
--------- ---------
DISTRIBUTIONS PAID FROM:
Ordinary income (inclusive of short-term gains) $ 870,881 --
Net long-term capital gain ..................... 996,178 $1,815,651
---------- ----------
Total distributions paid ....................... $1,867,059 $1,815,651
========== ==========
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 the "Code". It is the Multimedia Trust's policy
to comply with the requirements of the Code applicable to regulated investment
companies and to distribute substantially all of its net investment company
taxable income and net capital gains. Therefore, no provision for Federal income
taxes is required.
As of December 31, 2004, the components of accumulated earnings/(losses) on
a tax basis were as follows:
Net unrealized appreciation on investments and
foreign currency translations ............... $56,157,509
Other ......................................... (2,433)
-----------
Total ......................................... $56,155,076
===========
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 or corresponding swap rate
of the Cumulative Preferred Stock for the year.
The Multimedia Trust's total return on the net asset value of the common
shares is monitored on a monthly basis to assess whether the total return on the
net asset value of the common shares exceeds the stated dividend rate of the
Cumulative Preferred stock for the period. For the year ended December 31, 2004,
the Multimedia Trust's total return on the net asset value of the common shares
exceeded the stated dividend rate of all outstanding preferred stock. Thus,
management fees were accrued on these assets.
11
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the year ended December 31, 2004, Gabelli & Company, Inc. ("Gabelli
& Company"), an affiliate of the Adviser, received $33,586 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Multimedia Trust.
The cost of calculating the Multimedia Trust's net asset value per share is
a Multimedia Trust expense pursuant to the Investment Advisory Agreement between
the Multimedia Trust and the Adviser. During the year ended December 31, 2004,
the Multimedia Trust reimbursed the Adviser $34,800 in connection with the cost
of computing the Multimedia Trust's net asset value.
The Multimedia Trust is assuming its portion of the allocated cost of the
Gabelli Funds' Chief Compliance Officer in the amount of $1,470 for the period
of October 1, 2004 through December 31, 2004 which is included in payroll
expense on Statement of Operations.
4. PORTFOLIO SECURITIES. Cost of purchases and proceeds from sales of
securities, other than short-term securities, for the year ended December 31,
2004 aggregated $16,821,054 and $14,268,030, respectively.
5. CAPITAL. The charter permits the Multimedia Trust to issue 196,750,000 shares
of common stock (par value $0.001). The Board 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 year ended December 31, 2004, the
Multimedia Trust repurchased 48,700 shares of its common stock in the open
market at a cost of $444,435 and an average discount of approximately 14.68%
from its net asset value. During the year ended December 31, 2003, the
Multimedia Trust repurchased 66,000 shares of its common stock in the open
market at a cost of $522,334 and an average discount of approximately 14.57%
from its net asset value. All shares of common stock repurchased have been
retired.
Transactions in capital stock were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 2004 DECEMBER 31, 2003
---------------------- ----------------------
Shares Amount Shares Amount
-------- --------- -------- ---------
Net decrease from repurchase of common shares ...(48,700) $(444,435) (66,000) $(522,334)
------- --------- ------- ---------
Net decrease ....................................(48,700) $(444,435) (66,000) $(522,334)
======= ========= ======= =========
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
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
6.00% Series B and Series C Auction Rate Cumulative Preferred Stock at a
redemption price of $25.00 and $25,000, respectively, per share plus an amount
equal to the accumulated and unpaid dividends whether or not declared on such
shares in order to meet these requirements. Additionally, failure to meet the
foregoing asset 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, 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 $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
$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
Multimedia Trust, at its option, may redeem the 6.00% Series B Cumulative
Preferred Stock in whole or in part at the liquidation value price. The Board
has authorized the repurchase of the 6.00% Series B Cumulative Preferred Stock
in the open market at prices less than the $25 liquidation value of the
Cumulative Preferred Stock. During the year ended December 31, 2004, the
Multimedia Trust repurchased 6,900 shares of 6.00% Series B Cumulative Preferred
Stock in the open market at a cost of $164,246 and an average discount of
approximately 4.86% from its liquidation value of $25.00 per share. All
repurchased shares of 6.00% Series B Cumulative Preferred Stock have been
retired. At December 31, 2004, 993,100 shares of the 6.00% Series B Cumulative
Preferred Stock were outstanding and accrued dividends amounted to $20,690.
12
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
On March 31, 2003, the Multimedia Trust received net proceeds of
$24,547,465 (after underwriting discounts of $250,000 and offering expenses of
$202,535) from the public offering of 1,000 shares of Series C Auction Rate
Cumulative Preferred Stock. The dividend rate, as set by the auction process,
which is generally held every 7 days, is expected to vary with short-term
interest rates. The rates of Series C Auction Rate Cumulative Preferred Stock
ranged from 1.02% to 2.56% for the year ended December 31, 2004. 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 liquidation value price at any time. During the year ended December
31, 2004, the Multimedia Trust did not repurchase any shares of Series C Auction
Rate Cumulative Preferred Stock. At December 31, 2004, 1,000 shares of the
Series C Auction Rate Cumulative Preferred Stock were outstanding with an
annualized dividend rate of 2.56% per share and accrued dividends amounted to
$5,333.
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.
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. In accordance with the guidance of the EITF, the Multimedia Trust's
Cumulative Preferred Stock is classified 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.
7. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests. The Multimedia Trust
does not believe that these matters will have a material adverse effect on the
Multimedia Trust's financial position or the results of its operations.
8. INDEMNIFICATIONS. The Multimedia Trust enters into contracts that contain a
variety of indemnifications. The Multimedia Trust's maximum exposure under these
arrangements is unknown. However, the Multimedia Trust has not had prior claims
or losses pursuant to these contracts and expects the risk of loss to be remote.
13
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A MULTIMEDIA TRUST COMMON SHARE
OUTSTANDING THROUGHOUT EACH PERIOD: YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
2004(E)(D) 2003(E)(D) 2002 2001 2000
---------- --------- ---- ---- ----
OPERATING PERFORMANCE:
Net asset value, beginning of period ....................... $ 10.56 $ 7.67 $ 10.52 $ 12.21 $ 19.90
-------- -------- -------- -------- --------
Net investment income (loss) ............................... 0.04 (0.03) (0.00)(a) (0.02) 0.21
Net realized and unrealized gain (loss) on investments ..... 1.79 3.14 (2.68) (1.44) (4.74)
-------- -------- -------- -------- --------
Total from investment operations ........................... 1.83 3.11 (2.68) (1.46) (4.53)
-------- -------- -------- -------- --------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
Net investment income ...................................... (0.04) -- -- -- (0.02)
Net realized gain on investments ........................... (0.09) (0.13) (0.17) (0.17) (0.18)
-------- -------- -------- -------- --------
Total distributions to preferred stock shareholders ........ (0.13) (0.13) (0.17) (0.17) (0.20)
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO
COMMON STOCK SHAREHOLDERS RESULTING FROM OPERATIONS ...... 1.70 2.98 (2.85) (1.63) (4.73)
-------- -------- -------- -------- --------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
Net investment income ...................................... -- -- -- 0.00(a) (0.16)
Net realized gain on investments ........................... -- -- -- (0.06) (1.41)
-------- -------- -------- -------- --------
Total distributions to common stock shareholders ........... -- -- -- (0.06) (1.57)
-------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net asset value from common stock
share transactions ....................................... 0.01 0.01 0.00(a) -- (1.35)
Increase in net asset value from repurchases of
preferred shares ......................................... 0.00(a) -- -- -- --
Offering expenses charged to paid-in capital ............... -- (0.10) -- -- (0.04)
-------- -------- -------- -------- --------
Total capital share transactions ........................... 0.01 (0.09) 0.00(a) -- (1.39)
-------- -------- -------- -------- --------
NET ASSET VALUE ATTRIBUTABLE TO COMMON STOCK SHAREHOLDERS,
END OF PERIOD ............................................ $ 12.27 $ 10.56 $ 7.67 $ 10.52 $ 12.21
======== ======== ======== ======== ========
Net asset value total return + ............................. 16.2% 37.7% (27.1)% (13.3)% (24.9)%
======== ======== ======== ======== ========
Market value, end of period ................................ $ 10.68 $ 9.07 $ 6.40 $ 9.01 $ 10.31
======== ======== ======== ======== ========
Total investment return ++ ................................. 17.8% 41.7% (29.0)% (12.1)% (35.0)%
======== ======== ======== ======== ========
RATIOS AND SUPPLEMENTAL DATA:
Net assets including liquidation value of preferred shares,
end of period (in 000's) ................................. $223,739 $200,195 $132,683 $181,539 $205,893
Net assets attributable to common shares,
end of period (in 000's) ................................. $173,912 $150,195 $109,533 $150,672 $175,026
Ratio of net investment income (loss) to average
net assets attributable to common shares ................. 0.71% (0.36)% (0.04)% (0.18)% 1.36%
Ratio of operating expenses to average net assets
attributable to common shares ............................ 1.87% 1.81% 1.46% 1.34% 1.46%
Ratio of operating expenses to average total net assets
including liquidation value of preferred shares .......... 1.41% 1.35% 1.18% 1.13% 1.27%
Portfolio turnover rate .................................... 7.5% 10.9% 16.6% 25.4% 29.9%
See accompanying notes to financial statements.
14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
2004 2003 2002 2001 2000
---- ---- ---- ---- ----
PREFERRED STOCK:
7.92% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ................ -- -- $23,150 $30,867 $30,867
Total shares outstanding (in 000's) ........................ -- -- 926 1,235 1,235
Liquidation preference per share ........................... -- -- $ 25.00 $ 25.00 $ 25.00
Average market value (b) ................................... -- -- $ 25.75 $ 25.50 $ 23.54
Asset coverage per share ................................... -- -- $143.29 $147.00 $166.72
6.00% CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ................ $ 24,828 $ 25,000 -- -- --
Total shares outstanding (in 000's) ........................ 993 1,000 -- -- --
Liquidation preference per share ........................... $ 25.00 $ 25.00 -- -- --
Average market value (b) ................................... $ 24.84 $ 25.28 -- -- --
Asset coverage per share ................................... $ 112.26 $ 100.10
AUCTION RATE CUMULATIVE PREFERRED STOCK
Liquidation value, end of period (in 000's) ................ $ 25,000 $ 25,000 -- -- --
Total shares outstanding (in 000's) ........................ 1 1 -- -- --
Liquidation preference per share ........................... $ 25,000 $ 25,000 -- -- --
Average market value (b) ................................... $ 25,000 $ 25,000 -- -- --
Asset coverage per share ................................... $112,257 $100,097
ASSET COVERAGE (C) ......................................... 449% 400% 573% 588% 667%
----------
+ 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) Asset coverage is calculated by combining all series of preferred stock.
(d) See Note 2 to Financial Statements (Swap Agreements).
(e) As a result of changes in accounting principles, the Multimedia Trust has
reclassified periodic payments made under interest rate swap agreements,
previously included within net investment income, to components of realized
and unrealized gain (loss) in the Statement of Operations. The effect of
this reclassification for the years ended December 31, 2004 and December
31, 2003 was net investment income per share increased by $0.04 and $0.03,
respectively, ratio of net investment income to average net assets
attributable to common shares increased by 0.38% and 0.38%, respectively,
ratios of operating expenses to average net assets attributable to common
shares decreased by 0.38% and 0.38%, respectively, and ratios of operating
expenses to average total net assets including liquidation value of
preferred shares decreased by 0.28% and 0.28%, respectively.
15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
The Gabelli Global Multimedia Trust Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Global Multimedia Trust
Inc. (the "Trust") at December 31, 2004, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2004 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 28, 2005
16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ADDITIONAL FUND INFORMATION (UNAUDITED)
The business and affairs of the Trust are managed under the direction of
the Trust's Board of Directors. Information pertaining to the Directors and
officers of the Trust is set forth below. The Trust's Statement of Additional
Information includes additional information about The Gabelli Global Multimedia
Trust Inc. Directors and is available, without charge, upon request, by calling
800-GABELLI (800-422-3554) or by writing to The Gabelli Global Multimedia Trust
Inc. at One Corporate Center, Rye, NY 10580-1422.
TERM OF NUMBER OF
OFFICE AND FUNDS IN FUND
NAME, POSITION(S) LENGTH OF COMPLEX
ADDRESS 1 TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE SERVED 2 DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR 5
---------------- ------------- ----------- ----------------------- -------------------
INTERESTED DIRECTORS3:
--------------------
MARIO J. GABELLI Since 1994** 24 Chairman of the Board and Chief Executive Director of Morgan
Director and Officer of Gabelli Asset Management Inc. and Group Holdings, Inc.
Chief Investment Officer Chief Investment Officer of Gabelli Funds, (holding company)
Age: 62 LLC and GAMCO Investors, Inc.; Vice
Chairman and Chief Executive Officer of
Lynch Interactive Corporation (multimedia
and services)
KARL OTTO POHL Since 1994* 34 Member of the Shareholder Committee of Director of Gabelli
Director Sal Oppenheim Jr. & Cie (private invest- Asset Management Inc.
Age: 75 ment bank); Former President of the (investment
Deutsche Bundesbank and Chairman of its management); Chairman,
Central Bank Council (1980-1991) Incentive Capital and
Incentive Asset
Management (Zurich);
Director at Sal
Oppenheim Jr. & Cie,
Zurich
NON-INTERESTED DIRECTORS:
THOMAS E. BRATTER Since 1994** 3 Director, President and Founder, The John --
Director Dewey Academy (residential college
Age: 65 preparatory therapeutic high school)
ANTHONY J. COLAVITA 4 Since 2001** 36 President and Attorney at Law in the law firm --
Director of Anthony J. Colavita, P.C.
Age: 69
JAMES P. CONN 4 Since 1994* 13 Former Managing Director and Chief Investment Director of LaQuinta
Director Officer of Financial Security Assurance Corp. (hotels) and
Age: 66 Holdings Ltd. (1992-1998) First Republic Bank
FRANK J. FAHRENKOPF JR. Since 1999*** 4 President and Chief Executive Officer of the Director of First
Director American Gaming Association since June Republic Bank
Age: 65 1995; Partner in the law firm of Hogan &
Hartson; Co-Chairman of the Commission
on Presidential Debates; Former Chairman
of the Republican National Committee
ANTHONY R. PUSTORINO Since 1994* 17 Certified Public Accountant; Professor Director of Lynch
Director Emeritus, Pace University Corporation
Age: 79 (diversified
manufacturing)
WERNER J. ROEDER, MD Since 1999*** 26 Medical Director of Lawrence Hospital --
Director and practicing private physician
Age: 64
SALVATORE J. ZIZZA Since 1994*** 24 Chairman, Hallmark Electrical Supplies Corp.; Director of Hollis Eden
Director Pharmaceuticals and
Age: 59 Earl Scheib, Inc.
(automotive services)
17
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ADDITIONAL FUND INFORMATION (UNAUDITED) (CONTINUED)
TERM OF NUMBER OF
OFFICE AND FUNDS IN FUND
NAME, POSITION(S) LENGTH OF COMPLEX
ADDRESS 1 TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS
AND AGE SERVED 2 DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR 5
---------------- ------------- ----------- ----------------------- -------------------
OFFICERS:
BRUCE N. ALPERT Since 2003 -- Executive Vice President and Chief Operating --
President and Treasurer Officer of Gabelli Funds, LLC since 1988 and
Age: 53 an officer of all mutual funds advised by
Gabelli Funds, LLC and its affiliates
Director and President of the
Gabelli Advisers, Inc.
LAURISSA M. MARTIRE Since 2004 -- Vice President of The Gabelli --
Vice President Convertible and Income Securities Fund Inc.
Age: 28 since 2004; Assistant Vice President of
Gabelli Asset Management Company since 2003;
Prior to 2003, Sales Assistant for Gabelli Asset
Management Company.
LOAN P. NGUYEN Since 2004 -- Vice President of The Gabelli Global Multimedia --
Assistant Vice President Trust Inc. since 2004. Portfolio Administrator
Age: 22 for Gabelli Funds, LLC since 2004;
Student at Boston College prior to 2004.
JAMES E. MC KEE Since 1995 -- Vice President, General Counsel and Secretary of --
Secretary Gabelli Asset Management Inc. since 1999 and GAMCO
Age: 41 Investors, Inc. since 1993; Secretary of all
mutual funds advised by Gabelli Advisers,
Inc. and Gabelli Funds, LLC.
PETER GOLDSTEIN Since 2004 -- Director of Regulatory Affairs at Gabelli --
Chief Compliance Officer Asset Management Inc. since February 2004;
Age: 51 Vice President of Goldman Sachs Asset Management
from November 2000 through January 2004; Deputy
General Counsel at Gabelli Asset Management
Inc. from February 1998 through November 2000
----------
1 Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2 The Trust's Board of Directors is divided into three classes, each class
having a term of three years. Each year the term of office of one class
expires and the successor or successors elected to such class serve for a
three year term. The three year term for each class expires as follows:
* - Term expires at the Trust's 2006 Annual Meeting of Shareholders and until
their successors are duly elected and qualified.
** - Term expires at the Trust's 2007 Annual Meeting of Shareholders and
until their successors are duly elected and qualified.
*** - Term expires at the Trust's 2005 Annual Meeting of Shareholders and
until their successors are duly elected and qualified.
Each officer will hold office for an indefinite term until the date he or
she resigns or retires or until his or her successor is elected and
qualified.
3 "Interested person" of the Trust as defined in the Investment Company Act of
1940. Messrs. Gabelli and Pohl are each considered an "interested person"
because of their affiliation with Gabelli Funds, LLC which acts as the
Trust's investment adviser.
4 Represents holders of the Trust's Preferred Stock.
5 This column includes only directorships of companies required to report to
the SEC under the Securities and Exchange Act of 1934 (i.e. public companies)
or other investment companies registered under the 1940 Act.
CERTIFICATIONS
The Trust's Chief Executive Officer has certified to the New York Stock
Exchange that, as of June 7, 2004, he was not aware of any violation by the
Trust of applicable NYSE corporate governance listing standards. The Trust
reports to the SEC on Form N-CSR and N-CSRs contain certifications by the
Trust's principal executive officer and principal financial officer that relate
to the Trust's disclosure in such reports and that are required by Rule 30a-2(a)
under the Investment Company Act.
18
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
INCOME TAX INFORMATION (UNAUDITED)
DECEMBER 31, 2004
CASH DIVIDENDS AND DISTRIBUTIONS
TOTAL AMOUNT ORDINARY LONG-TERM
PAYABLE RECORD PAID INVESTMENT CAPITAL
DATE DATE PER SHARE(E) INCOME GAINS
-------- -------- ------------- ---------- ---------
6.00% PREFERRED SHARES
03/26/04 03/19/04 $0.3750 $0.1744 $0.2006
06/28/04 06/21/04 0.3750 0.1744 0.2006
09/27/04 09/20/04 0.3750 0.1744 0.2006
12/27/04 12/17/04 0.3750 0.1744 0.2006
------- -------- --------
Total Preferred Stock $1.5000 $0.6976 $0.8024
------- -------- --------
AUCTION RATE PREFERRED SHARES
Auction Rate Preferred Shares pay dividends weekly based on a rate set at
auction, usually held every seven days. The percentage of 2004 distributions
derived from long-term capital gains for the Auction Rate Preferred Stock was
53.49%.
A Form 1099-DIV has been mailed to all shareholders of record for the
distributions mentioned above, setting forth specific amounts to be included in
the 2004 tax returns. Capital gain distributions are reported in box 2a of Form
1099-DIV.
CORPORATE DIVIDENDS RECEIVED DEDUCTION, QUALIFIED DIVIDEND INCOME AND U.S.
GOVERNMENT SECURITIES INCOME
The Multimedia Trust paid to 6% preferred shareholders an ordinary income
dividend of $0.6976 per share in 2004. For the year ended December 31, 2004,
100% of the ordinary dividend qualifies for the dividend received deduction
available to corporations, and 100% of the ordinary income distribution was
qualifying dividend income. The percentage of ordinary income dividends paid by
the Trust during 2004 derived from U.S.Treasury Securities was 4.20%. However,
the Multimedia Trust did not hold more than 50% of its assets in U.S. Government
Securities at the end of each quarter during 2004. The percentage of
U.S. Government Securities held as of December 31, 2004 was 8.33%.
HISTORICAL DISTRIBUTION SUMMARY
SHORT- LONG-
TERM TERM NON-TAXABLE ADJUSTMENT
INVESTMENT CAPITAL CAPITAL RETURN OF TOTAL TO
INCOME GAINS(B) GAINS CAPITAL DISTRIBUTIONS(E) COST BASIS
COMMON STOCK ---------- -------- -------- ----------- ---------------- ----------
2004 ................... -- -- -- -- -- --
2003 ................... -- -- -- -- -- --
2002 ................... -- -- -- -- -- --
2001 ................... $0.00580 $0.01060 $0.04360 -- $0.06000 --
2000(a) ................ 0.16300 0.20880 1.20320 -- 1.57500 --
1999 ................... -- 1.28340 2.33660 -- 3.62000 --
1998 ................... -- 0.19950 0.60050 -- 0.80000 --
1997 ................... 0.00580 0.26820 0.57600 -- 0.85000 --
1996 ................... 0.01030 0.07900 0.28570 -- 0.37500 --
1995(c) ................ 0.07880 0.15290 0.01830 -- 0.25000 --
1994 ................... 0.03050 0.00100 0.00140 $0.01710 0.05000 $0.01710(d)
7.92% PREFERRED STOCK
2003 ................... -- -- $0.52800 -- $0.52800 --
2002 ................... -- -- 1.98000 -- 1.98000 --
2001 ................... -- -- 1.98000 -- 1.98000 --
2000 ................... $0.21500 $0.23900 1.52600 -- 1.98000 --
1999 ................... -- 0.70200 1.27800 -- 1.98000 --
1998 ................... -- 0.49360 1.48640 -- 1.98000 --
1997 ................... 0.00770 0.35230 0.75650 -- 1.11650 --
6.00% PREFERRED STOCK
2004 ................... $0.41320 $0.28440 $0.80240 -- $1.50000 --
2003 ................... -- -- 1.10420 -- 1.10420 --
AUCTION RATE PREFERRED STOCK
2004 ................... $103.27300 $71.04640 $200.52090 -- $374.87000 --
2003 ................... -- -- 227.06000 -- 227.06000 --
----------
(a) On June 19, 2000, the Company also distributed Rights equivalent to $1.46
per share based upon full subscription of all issued shares.
(b) Taxable as ordinary income.
(c) On August 11, 1995, the Company also distributed Rights equivalent to $0.46
per share based upon full subscription of all issued shares.
(d) Decrease in cost basis.
(e) Total amounts may differ due to rounding.
19
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.
---------------------------------------------------
The Annual Meeting of The Gabelli Global Multimedia
Trust's stockholders will be held at 10:00 A.M. on
Monday, May 9, 2005, in Greenwich, Connecticut.
---------------------------------------------------
20
DIRECTORS AND OFFICERS
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
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 CHIEF INVESTMENT OFFICER,
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER,
AMERICAN GAMING ASSOCIATION
Karl Otto Pohl
FORMER PRESIDENT, DEUTSCHE BUNDESBANK
Anthony R. Pustorino
CERTIFIED PUBLIC ACCOUNTANT
PROFESSOR EMERITUS, PACE UNIVERSITY
Werner J. Roeder, MD
MEDICAL DIRECTOR
LAWRENCE HOSPITAL
Salvatore J. Zizza
CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.
OFFICERS
Bruce N. Alpert
PRESIDENT & TREASURER
Laurissa M. Martire
VICE PRESIDENT
LoAn P. Nguyen
ASSISTANT VICE PRESIDENT & OMBUDSMAN
Peter Goldstein
CHIEF COMPLIANCE OFFICER
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 LLP
STOCK EXCHANGE LISTING
6.00%
COMMON PREFERRED
---------- ---------
NYSE-Symbol: GGT GGT PrB
Shares Outstanding: 14,170,253 993,100
The Net Asset Value appears in the Publicly Traded Funds
column, under the heading "Specialized Equity Funds," in
Sunday's The New York Times and in Monday's The Wall
Street Journal. It is also listed in Barron's Mutual
Funds/Closed End Funds section under the heading
"Specialized Equity Funds".
The Net Asset Value may be obtained each day by calling
(914) 921-5071.
---------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet
homepage at: WWW.GABELLI.COM or e-mail us at: closedend@gabelli.com
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Multimedia Trust may from time
to time purchase shares of its common stock in the open market when the
Multimedia Trust shares are trading at a discount of 10% or more from the
net asset value of the shares. The Multimedia Trust may also, from time to
time, purchase shares of its Cumulative Preferred Stock in the open market
when the shares are trading at a discount to the Liquidation Value of
$25.00.
---------------------------------------------------------------------------
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
ONE CORPORATE CENTER, RYE, NY 10580-1422
PHONE: 800-GABELLI (800-422-3554)
FAX: 914-921-5118 INTERNET: WWW.GABELLI.COM
E-MAIL: CLOSEDEND@GABELLI.COM
GBFMT-AR-12/04
[NOTE TO FINANCIAL PRINTER: Insert a copy of the report transmitted to
stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1) HERE.]
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party.
(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, and that relates to any element of
the code of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party, that relates to one or more of the
items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the registrant's Board of
Directors has determined that Anthony R. Pustorino is qualified to serve as an
audit committee financial expert serving on its audit committee and that he is
"independent," as defined by Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Audit Fees
----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services that
are normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years are
$38,301 in 2004 an $60,117 in 2003.
Audit-Related Fees
------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant's
financial statements and are not reported under paragraph (a) of this
Item are $8,600 in 2004 and $5,100 in 2003.
Audit-related fees represent services provided in the preparation of
Preferred Shares Reports.
Tax Fees
--------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning are $2,550 in 2004 an $2,450
in 2003.
Tax fees represent tax compliance services provided in connection with
the review of the Registrant's tax returns.
All Other Fees
--------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are $0
for 2004 and $0 for 2003.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of
Regulation S-X.
Pre-Approval Policies and Procedures. The Audit Committee
("Committee") of the registrant is responsible for pre-approving
(i) all audit and permissible non-audit services to be provided by
the independent auditors to the registrant and (ii) all
permissible non-audit services to be provided by the independent
auditors to the Adviser, Gabelli Funds, LLC, and any affiliate of
Gabelli Funds, LLC ("Gabelli") that provides services to the
registrant (a "Covered Services Provider") if the independent
auditors' engagement related directly to the operations and
financial reporting of the registrant. The Committee may delegate
its responsibility to pre-approve any such audit and permissible
non-audit services to the Chairperson of the Committee, and the
Chairperson must report to the Committee, at its next regularly
scheduled meeting after the Chairperson's pre-approval of such
services, his or her decision(s). The Committee may also establish
detailed pre-approval policies and procedures for pre-approval of
such services in accordance with applicable laws, including the
delegation of some or all of the Committee's pre-approval
responsibilities to the other persons (other than Gabelli or the
registrant's officers). Pre-approval by the Committee of any
permissible non-audit services is not required so long as: (i) the
aggregate amount of all such permissible non-audit services
provided to the registrant, Gabelli and any Covered Services
Provider constitutes not more than 5% of the total amount of
revenues paid by the registrant to its independent auditors during
the fiscal year in which the permissible non-audit services are
provided; (ii) the permissible non-audit services were not
recognized by the registrant at the time of the engagement to be
non-audit services; and (iii) such services are promptly brought
to the attention of the Committee and approved by the Committee or
Chairperson prior to the completion of the audit.
(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
are as follows:
(b) 100%
(c) 100%
(d) N/A
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year that were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees
was zero percent (0%).
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services
to the registrant for each of the last two fiscal years of the
registrant was $0 in 2004 and $0 in 2003.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and any
entity controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately designated audit committee consisting of the
following members: Anthony R. Pustorino, Werner J. Roeder and Salvatore J.
Zizza.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The Proxy Voting Policies are attached herewith.
GABELLI ASSET MANAGEMENT INC. AND AFFILIATES
------------------------------------------------------------------------------
THE VOTING OF PROXIES ON BEHALF OF CLIENTS
-------------------------------------------------------------------------------
Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and
Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers
to adopt written policies and procedures governing the voting of proxies on
behalf of their clients.
These procedures will be used by GAMCO Investors, Inc., Gabelli Funds,
LLC and Gabelli Advisers, Inc. (collectively, the "Advisers") to determine how
to vote proxies relating to portfolio securities held by their clients,
including the procedures that the Advisers use when a vote presents a conflict
between the interests of the shareholders of an investment company managed by
one of the Advisers, on the one hand, and those of the Advisers; the principal
underwriter; or any affiliated person of the investment company, the Advisers,
or the principal underwriter. These procedures will not apply where the Advisers
do not have voting discretion or where the Advisers have agreed with a client to
vote the client's proxies in accordance with specific guidelines or procedures
supplied by the client (to the extent permitted by ERISA).
I. PROXY VOTING COMMITTEE
The Proxy Voting Committee was originally formed in April 1989 for the
purpose of formulating guidelines and reviewing proxy statements within the
parameters set by the substantive proxy voting guidelines originally published
by GAMCO Investors, Inc. in 1988 and updated periodically, a copy of which are
appended as Exhibit A. The Committee will include representatives of Research,
Administration, Legal, and the Advisers. Additional or replacement members of
the Committee will be nominated by the Chairman and voted upon by the entire
Committee. As of December 31, 2004, the members are:
Bruce N. Alpert, Chief Operating Officer of Gabelli Funds, LLC
Ivan Arteaga, Portfolio Manager
Caesar M. P. Bryan, Portfolio Manager
Stephen DeTore, Deputy General Counsel
Joshua Fenton, Director of Buy-Side Research
Douglas R. Jamieson, Chief Operating Officer of GAMCO
James E. McKee, General Counsel
Karyn-Marie Prylucki, Director of Proxy Voting Services
William S. Selby, Managing Director of GAMCO
Howard F. Ward, Portfolio Manager
Peter D. Zaglio, Senior Vice President
Peter D. Zaglio currently chairs the Committee. In his absence, the
Director of Research will chair the Committee. Meetings are held on an as needed
basis to form views on the manner in which the Advisers should vote proxies on
behalf of their clients.
In general, the Director of Proxy Voting Services, using the Proxy
Guidelines, recommendations of Institutional Shareholder Corporate Governance
Service ("ISS"), other third-party services and the analysts of Gabelli &
Company, Inc., will determine how to vote on each issue. For non-controversial
matters, the Director of Proxy Voting Services may vote the proxy if the vote is
(1) consistent with the recommendations of the issuer's Board of Directors and
not contrary to the Proxy Guidelines; (2) consistent with the recommendations of
the issuer's Board of Directors and is a non-controversial issue not covered by
the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the
Board of Directors but is consistent with the Proxy Guidelines. In those
instances, the Director of Proxy Voting Services or the Chairman of the
Committee may sign and date the proxy statement indicating how each issue will
be voted.
All matters identified by the Chairman of the Committee, the Director
of Proxy Voting Services or the Legal Department as controversial, taking into
account the recommendations of ISS or other third party services and the
analysts of Gabelli & Company, Inc., will be presented to the Proxy Voting
Committee. If the Chairman of the Committee, the Director of Proxy Voting
Services or the Legal Department has identified the matter as one that (1) is
controversial; (2) would benefit from deliberation by the Proxy Voting
Committee; or (3) may give rise to a conflict of interest between the Advisers
and their clients, the Chairman of the Committee will initially determine what
vote to recommend that the Advisers should cast and the matter will go before
the Committee.
For matters submitted to the Committee, each member of the Committee
will receive, prior to the meeting, a copy of the proxy statement, any relevant
third party research, a summary of any views provided by the Chief Investment
Officer and any recommendations by Gabelli & Company, Inc. analysts. The Chief
Investment Officer or the Gabelli & Company, Inc. analysts may be invited to
present their viewpoints. If the Legal Department believes that the matter
before the committee is one with respect to which a conflict of interest may
exist between the Advisers and their clients, counsel will provide an opinion to
the Committee concerning the conflict. If the matter is one in which the
interests of the clients of one or more of Advisers may diverge, counsel will so
advise and the Committee may make different recommendations as to different
clients. For any matters where the recommendation may trigger appraisal rights,
counsel will provide an opinion concerning the likely risks and merits of such
an appraisal action.
Each matter submitted to the Committee will be determined by the vote
of a majority of the members present at the meeting. Should the vote concerning
one or more recommendations be tied in a vote of the Committee, the Chairman of
the Committee will cast the deciding vote. The Committee will notify the proxy
department of its decisions and the proxies will be voted accordingly.
Although the Proxy Guidelines express the normal preferences for the
voting of any shares not covered by a contrary investment guideline provided by
the client, the Committee is not bound by the preferences set forth in the Proxy
Guidelines and will review each matter on its own merits. Written minutes of all
Proxy Voting Committee meetings will be maintained. The Advisers subscribe to
ISS, which supplies current information on companies, matters being voted on,
regulations, trends in proxy voting and information on corporate governance
issues.
If the vote cast either by the analyst or as a result of the
deliberations of the Proxy Voting Committee runs contrary to the recommendation
of the Board of Directors of the issuer, the matter will be referred to legal
counsel to determine whether an amendment to the most recently filed Schedule
13D is appropriate.
II. SOCIAL ISSUES AND OTHER CLIENT GUIDELINES
If a client has provided special instructions relating to the voting of
proxies, they should be noted in the client's account file and forwarded to the
proxy department. This is the responsibility of the investment professional or
sales assistant for the client. In accordance with Department of Labor
guidelines, the Advisers' policy is to vote on behalf of ERISA accounts in the
best interest of the plan participants with regard to social issues that carry
an economic impact. Where an account is not governed by ERISA, the Advisers will
vote shares held on behalf of the client in a manner consistent with any
individual investment/voting guidelines provided by the client. Otherwise the
Advisers will abstain with respect to those shares.
III. CLIENT RETENTION OF VOTING RIGHTS
If a client chooses to retain the right to vote proxies or if there is
any change in voting authority, the following should be notified by the
investment professional or sales assistant for the client.
- Operations
- Legal Department
- Proxy Department
- Investment professional assigned to the account
In the event that the Board of Directors (or a Committee thereof) of
one or more of the investment companies managed by one of the Advisers has
retained direct voting control over any security, the Proxy Voting Department
will provide each Board Member (or Committee member) with a copy of the proxy
statement together with any other relevant information including recommendations
of ISS or other third-party services.
IV. VOTING RECORDS
The Proxy Voting Department will retain a record of matters voted upon
by the Advisers for their clients. The Advisers' staff may request proxy-voting
records for use in presentations to current or prospective clients. Requests for
proxy voting records should be made at least ten days prior to client meetings.
If a client wishes to receive a proxy voting record on a quarterly,
semi-annual or annual basis, please notify the Proxy Voting Department. The
reports will be available for mailing approximately ten days after the quarter
end of the period. First quarter reports may be delayed since the end of the
quarter falls during the height of the proxy season.
A letter is sent to the custodians for all clients for which the
Advisers have voting responsibility instructing them to forward all proxy
materials to:
[Adviser name]
Attn: Proxy Voting Department
One Corporate Center
Rye, New York 10580-1433
The sales assistant sends the letters to the custodians along with the
trading/DTC instructions. Proxy voting records will be retained in compliance
with Rule 204-2 under the Investment Advisers Act.
V. VOTING PROCEDURES
1. Custodian banks, outside brokerage firms and First Clearing Corporation are
responsible for forwarding proxies directly to GAMCO.
Proxies are received in one of two forms:
o Shareholder Vote Authorization Forms (VAFs) - Issued by ADP. VAFs must be
voted through the issuing institution causing a time lag. ADP is an outside
service contracted by the various institutions to issue proxy materials.
o Proxy cards which may be voted directly.
2. Upon receipt of the proxy, the number of shares each form represents is
logged into the proxy system according to security.
3. In the case of a discrepancy such as an incorrect number of shares, an
improperly signed or dated card, wrong class of security, etc., the issuing
custodian is notified by phone. A corrected proxy is requested. Any arrangements
are made to insure that a proper proxy is received in time to be voted
(overnight delivery, fax, etc.). When securities are out on loan on record date,
the custodian is requested to supply written verification.
4. Upon receipt of instructions from the proxy committee, the votes are cast and
recorded for each account on an individual basis.
Since January 1, 1992, records have been maintained on the Proxy Edge system.
The system is backed up regularly. From 1990 through 1991, records were
maintained on the PROXY VOTER system and in hardcopy format. Prior to 1990,
records were maintained on diskette and in hardcopy format.
PROXY EDGE records include:
Security Name and Cusip Number
Date and Type of Meeting (Annual, Special, Contest)
Client Name
Adviser or Fund Account Number
Directors' Recommendation
How the Adviser voted for the client on each issue
The rationale for the vote when it is appropriate
Records prior to the institution of the PROXY EDGE system include:
Security name
Type of Meeting (Annual, Special, Contest)
Date of Meeting
Name of Custodian
Name of Client
Custodian Account Number
Adviser or Fund Account Number
Directors' recommendation
How the Adviser voted for the client on each issue
Date the proxy statement was received and by whom
Name of person posting the vote
Date and method by which the vote was cast
o From these records individual client proxy voting records are compiled. It
is our policy to provide institutional clients with a proxy voting record
during client reviews. In addition, we will supply a proxy voting record at
the request of the client on a quarterly, semi-annual or annual basis. On
an annual basis, all registered investment companies file their Proxy
Voting History for the period July 1 - June 30 on Form N-PX.
5. VAFs are kept alphabetically by security. Records for the current proxy
season are located in the Proxy Voting Department office. In preparation for the
upcoming season, files are transferred to an offsite storage facility during
January/February.
6. Shareholder Vote Authorization Forms issued by ADP are always sent directly
to a specific individual at ADP.
7. If a proxy card or VAF is received too late to be voted in the conventional
matter, every attempt is made to vote on one of the following manners:
o VAFs can be faxed to ADP up until the time of the meeting. This is followed
up by mailing the original form.
o When a solicitor has been retained, the solicitor is called. At the
solicitor's direction, the proxy is faxed.
8. In the case of a proxy contest, records are maintained for each opposing
entity.
9. Voting in Person
a) At times it may be necessary to vote the shares in person. In this case, a
"legal proxy" is obtained in the following manner:
o Banks and brokerage firms using the services at ADP:
A call is placed to ADP requesting legal proxies. The VAFs are then sent
overnight to ADP. ADP issues individual legal proxies and sends them back via
overnight. A lead-time of at least two weeks prior to the meeting is needed to
do this. Alternatively, the procedures detailed below for banks not using ADP
may be implemented.
o Banks and brokerage firms issuing proxies directly: The bank is called and/or
faxed and a legal proxy is requested.
All legal proxies should appoint:
"REPRESENTATIVE OF [ADVISER NAME] WITH FULL POWER OF SUBSTITUTION."
b) The legal proxies are given to the person attending the meeting along with
the following supplemental material:
o A limited Power of Attorney appointing the attendee an Adviser representative.
o A list of all shares being voted by custodian only. Client names and account
numbers are not included. This list must be presented, along with the proxies,
to the Inspectors of Elections and/or tabulator at least one-half hour prior
to the scheduled start of the meeting. The tabulator must "qualify" the votes
(i.e. determine if the vote have previously been cast, if the votes have been
rescinded, etc. votes have previously been cast, etc.).
o A sample ERISA and Individual contract.
o A sample of the annual authorization to vote proxies form.
o A copy of our most recent Schedule 13D filing (if applicable).
APPENDIX A
PROXY GUIDELINES
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PROXY VOTING GUIDELINES
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GENERAL POLICY STATEMENT
It is the policy of GABELLI ASSET MANAGEMENT INC. to vote in the best economic
interests of our clients. As we state in our Magna Carta of Shareholders Rights,
established in May 1988, we are neither FOR nor AGAINST management. We are for
shareholders.
At our first proxy committee meeting in 1989, it was decided that each proxy
statement should be evaluated on its own merits within the framework first
established by our Magna Carta of Shareholders Rights. The attached guidelines
serve to enhance that broad framework.
We do not consider any issue routine. We take into consideration all of our
research on the company, its directors, and their short and long-term goals for
the company. In cases where issues that we generally do not approve of are
combined with other issues, the negative aspects of the issues will be factored
into the evaluation of the overall proposals but will not necessitate a vote in
opposition to the overall proposals.
BOARD OF DIRECTORS
The advisers do not consider the election of the Board of Directors a routine
issue. Each slate of directors is evaluated on a case-by-case basis.
Factors taken into consideration include:
o Historical responsiveness to shareholders
This may include such areas as:
-Paying greenmail
-Failure to adopt shareholder resolutions receiving a majority of
shareholder votes
o Qualifications
o Nominating committee in place
o Number of outside directors on the board
o Attendance at meetings
o Overall performance
SELECTION OF AUDITORS
In general, we support the Board of Directors' recommendation for auditors.
BLANK CHECK PREFERRED STOCK
We oppose the issuance of blank check preferred stock.
Blank check preferred stock allows the company to issue stock and establish
dividends, voting rights, etc. without further shareholder approval.
CLASSIFIED BOARD
A classified board is one where the directors are divided into classes with
overlapping terms. A different class is elected at each annual meeting.
While a classified board promotes continuity of directors facilitating long
range planning, we feel directors should be accountable to shareholders on an
annual basis. We will look at this proposal on a case-by-case basis taking into
consideration the board's historical responsiveness to the rights of
shareholders.
Where a classified board is in place, we will generally not support attempts to
change to an annually elected board.
When an annually elected board is in place, we generally will not support
attempts to classify the board.
INCREASE AUTHORIZED COMMON STOCK
The request to increase the amount of outstanding shares is considered on a
case-by-case basis.
Factors taken into consideration include:
o Future use of additional shares
-Stock split
-Stock option or other executive compensation plan
-Finance growth of company/strengthen balance sheet
-Aid in restructuring
-Improve credit rating
-Implement a poison pill or other takeover defense
o Amount of stock currently authorized but not yet issued or reserved for
stock option plans
o Amount of additional stock to be authorized and its dilutive effect
We will support this proposal if a detailed and verifiable plan for the use of
the additional shares is contained in the proxy statement.
CONFIDENTIAL BALLOT
We support the idea that a shareholder's identity and vote should be treated
with confidentiality.
However, we look at this issue on a case-by-case basis.
In order to promote confidentiality in the voting process, we endorse the use of
independent Inspectors of Election.
CUMULATIVE VOTING
In general, we support cumulative voting.
Cumulative voting is a process by which a shareholder may multiply the number of
directors being elected by the number of shares held on record date and cast the
total number for one candidate or allocate the voting among two or more
candidates.
Where cumulative voting is in place, we will vote against any proposal to
rescind this shareholder right.
Cumulative voting may result in a minority block of stock gaining representation
on the board. When a proposal is made to institute cumulative voting, the
proposal will be reviewed on a case-by-case basis. While we feel that each board
member should represent all shareholders, cumulative voting provides minority
shareholders an opportunity to have their views represented.
DIRECTOR LIABILITY AND INDEMNIFICATION
We support efforts to attract the best possible directors by limiting the
liability and increasing the indemnification of directors, except in the case of
insider dealing.
EQUAL ACCESS TO THE PROXY
The SEC's rules provide for shareholder resolutions. However, the resolutions
are limited in scope and there is a 500 word limit on proponents' written
arguments. Management has no such limitations. While we support equal access to
the proxy, we would look at such variables as length of time required to
respond, percentage of ownership, etc.
FAIR PRICE PROVISIONS
Charter provisions requiring a bidder to pay all shareholders a fair price are
intended to prevent two-tier tender offers that may be abusive. Typically, these
provisions do not apply to board-approved transactions.
We support fair price provisions because we feel all shareholders should be
entitled to receive the same benefits.
Reviewed on a case-by-case basis.
GOLDEN PARACHUTES
Golden parachutes are severance payments to top executives who are terminated or
demoted after a takeover.
We support any proposal that would assure management of its own welfare so that
they may continue to make decisions in the best interest of the company and
shareholders even if the decision results in them losing their job. We do not,
however, support excessive golden parachutes. Therefore, each proposal will be
decided on a case-by- case basis.
NOTE: CONGRESS HAS IMPOSED A TAX ON ANY PARACHUTE THAT IS MORE THAN THREE TIMES
THE EXECUTIVE'S AVERAGE ANNUAL COMPENSATION.
ANTI-GREENMAIL PROPOSALS
We do not support greenmail. An offer extended to one shareholder should be
extended to all shareholders equally across the board.
LIMIT SHAREHOLDERS' RIGHTS TO CALL SPECIAL MEETINGS
We support the right of shareholders to call a special meeting.
CONSIDERATION OF NONFINANCIAL EFFECTS OF A MERGER
This proposal releases the directors from only looking at the financial effects
of a merger and allows them the opportunity to consider the merger's effects on
employees, the community, and consumers.
As a fiduciary, we are obligated to vote in the best economic interests of our
clients. In general, this proposal does not allow us to do that. Therefore, we
generally cannot support this proposal.
Reviewed on a case-by-case basis.
MERGERS, BUYOUTS, SPIN-OFFS, RESTRUCTURINGS
Each of the above is considered on a case-by-case basis. According to the
Department of Labor, we are not required to vote for a proposal simply because
the offering price is at a premium to the current market price. We may take into
consideration the long term interests of the shareholders.
MILITARY ISSUES
Shareholder proposals regarding military production must be evaluated on a
purely economic set of criteria for our ERISA clients. As such, decisions will
be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to
the client's direction when applicable. Where no direction has been given, we
will vote in the best economic interests of our clients. It is not our duty to
impose our social judgment on others.
NORTHERN IRELAND
Shareholder proposals requesting the signing of the MacBride principles for the
purpose of countering the discrimination of Catholics in hiring practices must
be evaluated on a purely economic set of criteria for our ERISA clients. As
such, decisions will be made on a case-by-case basis.
In voting on this proposal for our non-ERISA clients, we will vote according to
client direction when applicable. Where no direction has been given, we will
vote in the best economic interests of our clients. It is not our duty to impose
our social judgment on others.
OPT OUT OF STATE ANTI-TAKEOVER LAW
This shareholder proposal requests that a company opt out of the coverage of the
state's takeover statutes. Example: Delaware law requires that a buyer must
acquire at least 85% of the company's stock before the buyer can exercise
control unless the board approves.
We consider this on a case-by-case basis. Our decision will be based on the
following:
o State of Incorporation
o Management history of responsiveness to shareholders
o Other mitigating factors
POISON PILL
In general, we do not endorse poison pills.
In certain cases where management has a history of being responsive to the needs
of shareholders and the stock is very liquid, we will reconsider this position.
REINCORPORATION
Generally, we support reincorporation for well-defined business reasons. We
oppose reincorporation if proposed solely for the purpose of reincorporating in
a state with more stringent anti-takeover statutes that may negatively impact
the value of the stock.
STOCK OPTION PLANS
Stock option plans are an excellent way to attract, hold and motivate directors
and employees. However, each stock option plan must be evaluated on its own
merits, taking into consideration the following:
o Dilution of voting power or earnings per share by more than 10%
o Kind of stock to be awarded, to whom, when and how much
o Method of payment
o Amount of stock already authorized but not yet issued under existing
stock option plans
SUPERMAJORITY VOTE REQUIREMENTS
Supermajority vote requirements in a company's charter or bylaws require a level
of voting approval in excess of a simple majority of the outstanding shares. In
general, we oppose supermajority-voting requirements. Supermajority requirements
often exceed the average level of shareholder participation. We support
proposals' approvals by a simple majority of the shares voting.
LIMIT SHAREHOLDERS RIGHT TO ACT BY WRITTEN CONSENT
Written consent allows shareholders to initiate and carry on a shareholder
action without having to wait until the next annual meeting or to call a special
meeting. It permits action to be taken by the written consent of the same
percentage of the shares that would be required to effect proposed action at a
shareholder meeting.
Reviewed on a case-by-case basis.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not yet applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Provide the information specified in the table with respect to any purchase made
by or on behalf of the registrant or any "affiliated purchaser" as defined in
Rule 10b-18(a)(3) under the Exchange Act (17CFR 240-10b-18(a)(3)), of shares or
other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
REGISTRANT PURCHASES OF EQUITY SECURITIES
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(C) TOTAL NUMBER OF SHARES (OR (D) MAXIMUM NUMBER (OR APPROXIMATE
(A) TOTAL NUMBER (B) AVERAGE UNITS) PURCHASED AS PART OF DOLLAR VALUE) OF SHARES (OR UNITS) THAT
OF SHARES (OR PRICE PAID PER PUBLICLY ANNOUNCED PLANS OR MAY YET BE PURCHASED UNDER
PERIOD UNITS) PURCHASED SHARE (OR UNIT) PROGRAMS THE PLANS OR PROGRAMS
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Month #1 Common - 17,000 Common - $8.9001 Common - 17,000 Common - 14,201,353 -
07/01/04 17,000 = 14,184,353
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
07/31/04 Preferred Series B - 993,100
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Month #2 Common - 9,100 Common - $8.4610 Common - 9,100 Common - 14,184,353 - 9,100 =
08/01/04 14,175,253
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
08/31/04 Preferred - 993,100
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Month #3 Common - N/A Common - N/A Common - N/A Common - 14,175,253
09/01/04
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred - 993,100
09/30/04
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Month #4 Common - N/A Common - N/A Common - N/A Common - 14,175,253
10/01/04
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
10/31/04
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Month #5 Common - N/A Common - N/A Common - N/A Common - 14,175,253
11/01/04
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - 993,100
11/30/04
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Month #6 Common - 5,000 Common - $10.24 Common - 5,000 Common - 14,175,253 - 5,000 =
12/01/04 14,170,253
through Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
12/31/04 Preferred Series B - 993,100
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Total Common -31,100 Common - $8.9903 Common - 31,100 N/A
Preferred Series B - N/A Preferred Series B - N/A Preferred Series B - N/A
-------------------------------------------------------------------------------------------------------------------------------
Footnote columns (c) and (d) of the table, by disclosing the following
information in the aggregate for all plans or programs publicly announced:
a. The date each plan or program was announced - The notice of the potential
repurchase of common and preferred shares occurs quarterly in the Fund's
quarterly report in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended.
b. The dollar amount (or share or unit amount) approved - Any or all common
shares outstanding may be repurchased when the Fund's common shares are
trading at a discount of 10% or more from the net asset value of the
shares.
Any or all preferred shares outstanding may be repurchased when the
Fund's preferred shares are trading at a discount to the liquidation value of
$25.00.
c. The expiration date (if any) of each plan or program - The Fund's
repurchase plans are ongoing.
d. Each plan or program that has expired during the period covered by the
table - The Fund's repurchase plans are ongoing.
e. Each plan or program the registrant has determined to terminate prior to
expiration, or under which the registrant does not intend to make further
purchases. - The Fund's repurchase plans are ongoing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, that is the subject of disclosure required by Item
2, filed as exhibit (a)(1) to the Registrant's Form N-CSR, filed
on March 10, 2004 (Accession No. 0000935069-04-000486).
(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.
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By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date March 9, 2005
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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
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Bruce N. Alpert, Principal Executive Officer
& Principal Financial Officer
Date March 9, 2005
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* Print the name and title of each signing officer under his or her signature.