Gabelli Multimedia Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-08476                             

                                 The Gabelli 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: March 31, 2016

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.


The Gabelli Multimedia Trust Inc.

First Quarter Report — March 31, 2016

(Y)our Portfolio Management Team

 

LOGO

To Our Shareholders,

For the quarter ended March 31, 2016, the net asset value (“NAV”) total return of The Gabelli Multimedia Trust Inc. (the “Fund”) was 2.4%, compared with a total return of (0.4)% for the Morgan Stanley Capital International (“MSCI”) World Index. The total return for the Fund’s publicly traded shares was 1.0%. The Fund’s NAV per share was $8.33, while the price of the publicly traded shares closed at $7.35 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed is the schedule of investments as of March 31, 2016.

Comparative Results

 

                            Average Annual Returns through March 31, 2016 (a) (Unaudited)      Since  
                                        Inception  
     Quarter      1 Year      5 Year      10 Year      15 Year      (11/15/94)  

Gabelli Multimedia Trust Inc.

                 

NAV Total Return (b)

     2.35%         (4.73)%         10.51%         5.24%         4.34%         8.47%     

Investment Total Return (c)

     0.99            (11.04)            11.03            5.79            4.39            8.28        

Standard & Poor’s 500 Index

     1.35            1.78             11.58            7.01            5.99            9.42(d)    

MSCI World Index

     (0.35)           (3.45)            6.51            4.27            4.97            6.58(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. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Standard & Poor’s 500 and MSCI World Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the MSCI World Index. You cannot invest directly in an index.

 

 

  (b)

Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date, and adjustments for rights offerings and are net of expenses. Since inception return is based on an initial NAV of $7.50.

 
  (c)

Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions, and adjustments for rights offerings. Since inception return is based on an initial offering price of $7.50.

 
  (d)

From November 30, 1994, the date closest to the Fund’s inception for which data is available.

 

 


The Gabelli Multimedia Trust Inc.

Schedule of Investments — March 31, 2016 (Unaudited)

 

 

Shares           Market
Value
 
  

COMMON STOCKS — 92.1%

  
  

DISTRIBUTION COMPANIES — 58.1%

  

  

Broadcasting — 10.0%

  
  10,000      

Asahi Broadcasting Corp.

   $ 60,687   
  61,000      

CBS Corp., Cl. A, Voting

     3,562,705   
  6,400      

Chubu-Nippon Broadcasting Co. Ltd.

     36,792   
  16,000      

Cogeco Inc.

     700,982   
  2,000      

Corus Entertainment Inc., OTC, Cl. B

     18,114   
  13,000      

Corus Entertainment Inc., Toronto, Cl. B

     117,713   
  34,000      

Discovery Communications Inc., Cl. A†

     973,420   
  130,000      

Discovery Communications Inc., Cl. C†

     3,510,000   
  81,000      

Grupo Radio Centro SAB de CV, Cl. A†

     69,621   
  140,000      

ITV plc

     484,991   
  4,550      

Lagardere SCA

     120,894   
  11,500      

Liberty Broadband Corp., Cl. A†

     668,840   
  32,739      

Liberty Broadband Corp., Cl. C†

     1,897,225   
  43,000      

Liberty Media Corp., Cl. A†

     1,661,090   
  84,000      

Liberty Media Corp., Cl. C†

     3,199,560   
  4,000      

M6 Metropole Television SA

     72,940   
  16,000      

Media General Inc.†

     260,960   
  68,566      

Media Prima Berhad

     25,658   
  44,000      

MSG Networks Inc., Cl. A†

     760,760   
  36,000      

Nippon Television Holdings Inc.

     594,002   
  4,650      

NRJ Group†

     48,097   
  20,000      

Pandora Media Inc.†

     179,000   
  3,400      

RTL Group SA

     287,457   
  72,000      

Salem Media Group Inc.

     414,720   
  19,000      

Sinclair Broadcast Group Inc., Cl. A

     584,250   
  23,000      

Societe Television Francaise 1

     297,835   
  49,000      

Starz, Cl. A†

     1,290,170   
  17,000      

TEGNA Inc.

     398,820   
  45,000      

Television Broadcasts Ltd.

     161,846   
  75,000      

Tokyo Broadcasting System Holdings Inc.

     1,162,202   
  240,000      

TV Azteca SA de CV

     38,201   
  22,143      

Wireless Group plc

     61,061   
     

 

 

 
         23,720,613   
     

 

 

 
  

Business Services — 0.9%

  
  3,686      

Contax Participacoes SA

     656   
  1,000      

Convergys Corp.

     27,770   
  6,000      

Impellam Group plc

     72,818   
  21,000      

McGraw Hill Financial Inc.

     2,078,580   
  3,500      

Monster Worldwide Inc.†

     11,410   
  1,000      

Qumu Corp.†

     4,610   
     

 

 

 
        2,195,844   
     

 

 

 
  

Cable — 14.7%

  
  26,000      

Altice NV, Cl. A†

     463,308   
  4,000      

Altice NV, Cl. B†

     72,075   
  34,000      

AMC Networks Inc., Cl. A†

     2,207,960   
  3,000      

Cable One Inc.

     1,311,390   
  152,000      

Cablevision Systems Corp., Cl. A

     5,016,000   
  6,500      

Charter Communications Inc., Cl. A†

     1,315,795   
Shares           Market
Value
 
  35,500      

Cogeco Communications Inc.

   $ 1,893,151   
  64,000      

Comcast Corp., Cl. A

     3,909,120   
  30,000      

Liberty Global plc, Cl. A†

     1,155,000   
  123,000      

Liberty Global plc, Cl. C†

     4,619,880   
  1,500      

Liberty Global plc LiLAC, Cl. A†

     52,590   
  7,000      

Liberty Global plc LiLAC, Cl. C†

     265,160   
  120,690      

Rogers Communications Inc., New York, Cl. B

     4,830,014   
  19,310      

Rogers Communications Inc., Toronto, Cl. B

     773,143   
  24,000      

Scripps Networks Interactive Inc., Cl. A

     1,572,000   
  11,000      

Shaw Communications Inc., New York, Cl. B

     212,410   
  78,000      

Shaw Communications Inc., Toronto, Cl. B

     1,506,849   
  5,800      

Sky plc, ADR

     339,590   
  16,500      

Time Warner Cable Inc.

     3,376,230   
     

 

 

 
          34,891,665   
     

 

 

 
  

Consumer Services — 3.0%

  
  4,000      

Bowlin Travel Centers Inc.†

     6,200   
  1,000      

Expedia Inc.

     107,820   
  13,000      

H&R Block Inc.

     343,460   
  18,000      

IAC/InterActiveCorp.

     847,440   
  105,000      

Liberty Interactive Corp. QVC Group, Cl. A†

     2,651,250   
  17,000      

Liberty TripAdvisor Holdings Inc., Cl. A†

     376,720   
  43,214      

Liberty Ventures, Cl. A†

     1,690,532   
  15,000      

The ADT Corp.

     618,900   
  45,000      

TiVo Inc.†

     427,950   
     

 

 

 
        7,070,272   
     

 

 

 
  

Diversified Industrial — 0.6%

  
  16,000      

Bouygues SA

     652,701   
  3,000      

Fortune Brands Home & Security Inc.

     168,120   
  23,000      

Jardine Strategic Holdings Ltd.

     686,550   
  3,000      

Malaysian Resources Corp. Berhad

     961   
     

 

 

 
        1,508,332   
     

 

 

 
  

Electronics — 0.4%

  
  19,000      

Dolby Laboratories Inc., Cl. A

     825,740   
  5,000      

IDI Inc.†

     29,000   
     

 

 

 
        854,740   
     

 

 

 
  

Entertainment — 6.9%

  
  27,000      

Gogo Inc.†

     297,270   
  259,500      

Grupo Televisa SAB, ADR

     7,125,870   
  24,000      

Naspers Ltd., Cl. N

     3,350,368   
  1,000      

Netflix Inc.†

     102,230   
  4,000      

Reading International Inc., Cl. A†

     47,920   
  5,300      

Reading International Inc., Cl. B†

     72,610   
  5,000      

Regal Entertainment Group, Cl. A

     105,700   
  88,000      

Sky plc

     1,294,229   
  16,000      

Take-Two Interactive Software Inc.†

     602,720   
  19,500      

The Madison Square Garden Co, Cl. A†

     3,244,020   
     

 

 

 
        16,242,937   
     

 

 

 
  

Equipment — 1.5%

  
  12,500      

American Tower Corp.

     1,279,625   
 

 

See accompanying notes to schedule of investments.

 

2


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — March 31, 2016 (Unaudited)

 

 

Shares           Market
Value
 
  

COMMON STOCKS (Continued)

  
  

DISTRIBUTION COMPANIES (Continued)

  

  

Equipment (Continued)

  
  3,600      

Amphenol Corp., Cl. A

   $ 208,152   
  80,000      

Corning Inc.

     1,671,200   
  2,000      

Furukawa Electric Co. Ltd.

     4,318   
  7,500      

QUALCOMM Inc.

     383,550   
     

 

 

 
          3,546,845   
     

 

 

 
  

Financial Services — 2.2%

  
  15,000      

Caribbean Investment Holdings Ltd.†

     1,702   
  35,500      

Kinnevik Investment AB, Cl. A

     1,048,613   
  45,000      

Kinnevik Investment AB, Cl. B

     1,276,568   
  6,000      

LendingTree Inc.†

     586,680   
  60,000      

PayPal Holdings Inc.†

     2,316,000   
  15,000      

Waterloo Investment Holdings Ltd.†

     600   
     

 

 

 
        5,230,163   
     

 

 

 
  

Food and Beverage — 0.1%

  
  2,994      

Pernod Ricard SA

     333,874   
     

 

 

 
  

Retail — 0.9%

  
  200      

Amazon.com Inc.†

     118,728   
  34,000      

Best Buy Co. Inc.

     1,102,960   
  5,000      

FTD Companies Inc.†

     131,250   
  12,000      

HSN Inc.

     627,720   
  5,000      

Outerwall Inc.

     184,950   
     

 

 

 
        2,165,608   
     

 

 

 
  

Satellite — 2.7%

  
  1,000      

Asia Satellite Telecommunications Holdings Ltd.

     1,372   
  50,000      

DigitalGlobe Inc.†

     865,000   
  61,000      

DISH Network Corp., Cl. A†

     2,821,860   
  31,000      

EchoStar Corp., Cl. A†

     1,372,990   
  30,000      

Iridium Communications Inc.†

     236,100   
  17,400      

Loral Space & Communications Inc.†

     611,262   
  250,000      

PT Indosat Tbk†

     116,422   
  3,000      

SKY Perfect JSAT Holdings Inc.

     17,460   
  2,000      

ViaSat Inc.†

     146,960   
  30,000      

Videocon d2h Ltd., ADR†

     220,800   
     

 

 

 
        6,410,226   
     

 

 

 
  

Telecommunications: Long Distance — 2.6%

  

  110,000      

AT&T Inc.

     4,308,700   
  2,020      

BCE Inc., New York

     91,991   
  1,074      

BCE Inc., Toronto

     48,947   
  22,000      

Philippine Long Distance Telephone Co., ADR

     952,820   
  200,000      

Sprint Corp.†

     696,000   
     

 

 

 
        6,098,458   
     

 

 

 
  

Telecommunications: National — 5.4%

  

  5,000      

China Telecom Corp. Ltd., ADR

     262,550   
  5,000      

China Unicom Hong Kong Ltd., ADR

     65,800   
  14,000      

Communications Sales & Leasing Inc.†

     311,500   
Shares           Market
Value
 
  61,000      

Deutsche Telekom AG, ADR

   $ 1,092,510   
  16,000      

Elisa Oyj

     622,114   
  3,605      

Hellenic Telecommunications Organization SA

     32,612   
  10,000      

Inmarsat plc

     141,398   
  34,500      

Level 3 Communications Inc.†

     1,823,325   
  1,000      

Magyar Telekom Telecommunications plc, ADR†

     8,190   
  10,000      

Nippon Telegraph & Telephone Corp.

     430,761   
  5,000      

Oi SA, ADR†

     1,627   
  200      

Oi SA, Cl. C, ADR†

     284   
  4,000      

Orange SA, ADR

     69,520   
  3,000      

PT Telekomunikasi Indonesia Persero Tbk, ADR

     152,550   
  6,000      

Rostelecom PJSC, ADR

     53,640   
  28,000      

Swisscom AG, ADR

     1,523,200   
  6,000      

Telecom Argentina SA, ADR

     107,340   
  385,000      

Telecom Italia SpA†

     415,312   
  50,000      

Telecom Italia SpA

     43,809   
  17,500      

Telefonica Brasil SA, ADR

     218,575   
  118,026      

Telefonica SA, ADR

     1,313,629   
  145,000      

Telekom Austria AG

     892,132   
  55,000      

Telesites SAB†

     31,038   
  15,172      

TeliaSonera AB

     78,810   
  2,400      

Telstra Corp. Ltd., ADR

     48,864   
  48,000      

Verizon Communications Inc.

     2,595,840   
  82,000      

VimpelCom Ltd., ADR

     349,320   
     

 

 

 
          12,686,250   
     

 

 

 
  

Telecommunications: Regional — 1.7%

  

  85,000      

Cincinnati Bell Inc.†

     328,950   
  78,000      

Telephone & Data Systems Inc.

     2,347,020   
  8,000      

TELUS Corp., New York

     260,240   
  32,000      

TELUS Corp., Toronto

     1,041,740   
     

 

 

 
        3,977,950   
     

 

 

 
  

Wireless Communications — 4.5%

  
  55,000      

America Movil SAB de CV, Cl. L, ADR

     854,150   
  400,000      

Cable & Wireless Communications plc

     442,651   
  19,000      

Global Telecom Holding SAE, GDR†

     30,875   
  30,000      

HC2 Holdings Inc.†

     114,600   
  240,000      

Jasmine International plc

     23,741   
  30,500      

Millicom International Cellular SA, SDR

     1,666,966   
  90,000      

NTT DoCoMo Inc.

     2,041,184   
  19,000      

Orascom Telecom Media and Technology Holding SAE, GDR†

     11,590   
  25,000      

ORBCOMM Inc.†

     253,250   
  34,000      

SK Telecom Co. Ltd., ADR

     685,780   
  4,203      

Tim Participacoes SA, ADR

     46,485   
  52,000      

T-Mobile US Inc.†

     1,991,600   
  8,000      

Turkcell Iletisim Hizmetleri A/S, ADR

     84,080   
  29,000      

United States Cellular Corp.†

     1,325,010   
 

 

See accompanying notes to schedule of investments.

 

3


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — March 31, 2016 (Unaudited)

 

 

Shares        

Market

Value

 
 

COMMON STOCKS (Continued)

  

 

DISTRIBUTION COMPANIES (Continued)

  

 

Wireless Communications (Continued)

  

  30,000     

Vodafone Group plc, ADR

  $ 961,500   
   

 

 

 
      10,533,462   
   

 

 

 
 

TOTAL DISTRIBUTION COMPANIES

    137,467,239   
   

 

 

 
 

COPYRIGHT/CREATIVITY COMPANIES — 34.0%

  

 

Business Services — 0.1%

 
  10,000     

Scientific Games Corp., Cl. A†

    94,300   
  25,000     

YuMe Inc.†

    93,500   
   

 

 

 
      187,800   
   

 

 

 
 

Business Services: Advertising — 2.1%

  

  168,000     

Clear Channel Outdoor Holdings Inc., Cl. A

    789,600   
  15,000     

Harte-Hanks Inc.

    37,950   
  6,000     

Havas SA

    48,113   
  9,357     

JC Decaux SA

    409,604   
  8,000     

Lamar Advertising Co., Cl. A

    492,000   
  1,500     

Publicis Groupe SA

    105,330   
  8,000     

Ströeer SE & Co KGaA

    502,953   
  115,000     

The Interpublic Group of Companies Inc.

    2,639,250   
  15,000     

Tremor Video Inc.†

    26,400   
   

 

 

 
      5,051,200   
   

 

 

 
 

Computer Hardware — 1.7%

 
  37,000     

Apple Inc.

    4,032,630   
   

 

 

 
 

Computer Software and Services — 10.1%

  

  41,000     

Activision Blizzard Inc.

    1,387,440   
  4,500     

Alphabet Inc., Cl. A†

    3,433,050   
  2,104     

Alphabet Inc., Cl. C†

    1,567,375   
  75,000     

Blucora Inc.†

    387,000   
  21,850     

comScore Inc.†

    656,374   
  60,000     

EarthLink Holdings Corp.

    340,200   
  74,000     

eBay Inc.†.

    1,765,640   
  51,000     

Facebook Inc., Cl. A†

    5,819,100   
  8,000     

GrubHub Inc.†

    201,040   
  12,000     

Guidance Software Inc.†

    51,600   
  100,000     

Internap Corp.†

    273,000   
  10,000     

InterXion Holding NV†

    345,800   
  12,000     

Microsoft Corp.

    662,760   
  7,000     

QTS Realty Trust Inc., Cl. A

    331,660   
  6,000     

SoftBank Corp.

    286,072   
  5,000     

Twitter Inc.†

    82,750   
  170,000     

Yahoo! Inc.†

    6,257,700   
   

 

 

 
      23,848,561   
   

 

 

 
 

Consumer Products — 0.4%

 
  2,200     

Nintendo Co. Ltd.

    312,764   
  35,000     

Nintendo Co. Ltd., ADR†

    621,250   
   

 

 

 
      934,014   
   

 

 

 
Shares        

Market

Value

 
 

Consumer Services — 0.0%

 
  5,000     

XO Group Inc.†

  $ 80,250   
   

 

 

 
 

Electronics — 2.5%

 
  2,000     

IMAX Corp.†

    62,180   
  6,500     

Intel Corp.

    210,275   
  3,440     

Koninklijke Philips NV

    98,212   
  219,000     

Sony Corp., ADR

    5,632,680   
   

 

 

 
      6,003,347   
   

 

 

 
 

Entertainment — 8.1%

 
  33,000     

Ascent Capital Group Inc., Cl. A†

    488,730   
  49,500     

Crown Media Holdings Inc., Cl. A†

    251,460   
  12,000     

DreamWorks Animation SKG Inc., Cl. A†

    299,400   
  50,000     

Entravision Communications Corp., Cl. A

    372,000   
  79,200     

GMM Grammy Public Co. Ltd.†

    17,785   
  10,000     

Lions Gate Entertainment Corp.

    218,500   
  25,000     

Live Nation Entertainment Inc.†

    557,750   
  17,000     

STV Group plc

    103,769   
  8,000     

The Walt Disney Co.

    794,480   
  55,000     

Time Warner Inc.

    3,990,250   
  116,000     

Twenty-First Century Fox Inc., Cl. A

    3,234,080   
  68,000     

Twenty-First Century Fox Inc., Cl. B

    1,917,600   
  70,000     

Universal Entertainment Corp.

    1,162,468   
  55,500     

Viacom Inc., Cl. A

    2,514,150   
  150,000     

Vivendi SA

    3,154,265   
  10,000     

World Wrestling Entertainment Inc., Cl. A

    176,600   
   

 

 

 
          19,253,287   
   

 

 

 
 

Hotels and Gaming — 6.2%

 
  145,000     

Boyd Gaming Corp.†

    2,995,700   
  900     

Churchill Downs Inc.

    133,092   
  7,000     

Gaming and Leisure Properties Inc.

    216,440   
  10,000     

Golden Entertainment Inc.†

    108,400   
  4,200     

Greek Organization of Football Prognostics SA

    29,535   
  32,000     

International Game Technology plc

    584,000   
  15,000     

Interval Leisure Group Inc.

    216,600   
  180,000     

Ladbrokes plc

    301,698   
  38,000     

Las Vegas Sands Corp.

    1,963,840   
  156,250     

Mandarin Oriental International Ltd.

    212,500   
  33,000     

Melco Crown Entertainment Ltd., ADR

    544,830   
  22,000     

MGM China Holdings Ltd.

    33,635   
  4,000     

Penn National Gaming Inc.†

    66,760   
  84,000     

Ryman Hospitality Properties Inc.

    4,324,320   
  5,100     

Starwood Hotels & Resorts Worldwide Inc.

    425,493   
  26,000     

Wynn Resorts Ltd.

    2,429,180   
   

 

 

 
      14,586,023   
   

 

 

 
 

Publishing — 2.8%

 
  15,000     

AH Belo Corp., Cl. A

    72,150   
  20,000     

Arnoldo Mondadori Editore SpA†

    22,690   
  8,500     

Gannett Co Inc.

    128,690   
  2,300     

Graham Holdings Co., Cl. B

    1,104,000   
 

 

See accompanying notes to schedule of investments.

 

4


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — March 31, 2016 (Unaudited)

 

 

Shares        

Market

Value

 
 

COMMON STOCKS (Continued)

  

 

COPYRIGHT/CREATIVITY COMPANIES (Continued)

  

 

Publishing (Continued)

 
  30,000     

Il Sole 24 Ore SpA†

  $ 18,844   
  800     

John Wiley & Sons Inc., Cl. B

    39,108   
  30,875     

Journal Media Group Inc.

    369,265   
  11,500     

Meredith Corp.

    546,250   
  5,263     

Nation International Edutainment Public Co. Ltd.

    362   
  1,000,000     

Nation Multimedia Group Public Co. Ltd.

    42,354   
  30,000     

News Corp., Cl. A

    383,100   
  60,000     

News Corp., Cl. B

    795,000   
  8,000     

Nielsen Holdings plc

    421,280   
  974,000     

Post Publishing Public Co. Ltd.†

    170,962   
  1,000     

Scholastic Corp.

    37,370   
  247,000     

Singapore Press Holdings Ltd.

    733,019   
  600     

Spir Communication†

    4,656   
  11,000     

Telegraaf Media Groep NV†

    48,328   
  65,996     

The E.W. Scripps Co., Cl. A

    1,028,878   
  1,000     

Time Inc.

    15,440   
  7,500     

Tribune Media Co., Cl. A

    287,625   
  16,363     

UBM plc

    141,243   
  3,000     

Wolters Kluwer NV

    119,753   
   

 

 

 
      6,530,367   
   

 

 

 
 

TOTAL COPYRIGHT/CREATIVITY COMPANIES

    80,507,479   
   

 

 

 
 

TOTAL COMMON STOCKS

    217,974,718   
   

 

 

 
 

RIGHTS — 0.0%

 
 

DISTRIBUTION COMPANIES — 0.0%

 
 

Wireless Communications — 0.0%

 
  25,000     

Leap Wireless International Inc., CVR, expire 03/14/17†

    63,000   
   

 

 

 
 

WARRANTS — 0.0%

 
 

DISTRIBUTION COMPANIES — 0.0%

 
 

Real Estate — 0.0%

 
  1,000     

Malaysian Resources Corp. Bhd, expire 09/16/18†

    37   
   

 

 

 
 

Telecommunications — 0.0%

 
  117,647     

Jasmine International plc, expire 07/05/20†

    2,140   
   

 

 

 
 

TOTAL WARRANTS

    2,177   
   

 

 

 
Principal
Amount
        Market
Value
 
 

U.S. GOVERNMENT OBLIGATIONS — 7.9%

  

  $18,756,000     

U.S. Treasury Bills,
0.225% to 0.552%††,
04/14/16 to 09/22/16

  $ 18,745,027   
   

 

 

 
 

TOTAL INVESTMENTS — 100.0%
(Cost $172,310,040)

  $ 236,784,922   
   

 

 

 
 

Aggregate tax cost

  $ 174,335,844   
   

 

 

 
 

Gross unrealized appreciation

  $ 82,141,447   
 

Gross unrealized depreciation

    (19,692,369
   

 

 

 
 

Net unrealized appreciation/depreciation

  $ 62,449,078   
   

 

 

 

 

 

Non-income producing security.

††

 

Represents annualized yield at date of purchase.

ADR

 

American Depositary Receipt

CVR

 

Contingent Value Right

GDR

 

Global Depositary Receipt

PJSC

 

Public Joint Stock Company

SDR

 

Swedish Depositary Receipt

 

 

See accompanying notes to schedule of investments.

 

5


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited)

 

As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. 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 schedule of investments.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt 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.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

 

   

Level 1  —  quoted prices in active markets for identical securities;

 

   

Level 2  —  other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

 

   

Level 3  —  significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

 

6


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of March 31, 2016 is as follows:

 

     Valuation Inputs     
     Level 1
 Quoted Prices 
     Level 2 Other Significant
Observable Inputs
   Level 3 Significant
Unobservable Inputs
   Total Market Value
at 3/31/16

INVESTMENTS IN SECURITIES:

           

ASSETS (Market Value):

           

Common Stocks:

           

Distribution Companies

           

Broadcasting

     $  20,088,287       $  3,562,705    $  69,621    $  23,720,613

Consumer Services

     7,064,072                  6,200              —          7,070,272

Entertainment

     16,170,327                72,610              —        16,242,937

Financial Services

     5,229,563                       —            600          5,230,163

Satellite

     6,408,854                  1,372              —          6,410,226

Wireless Communications

     10,509,721                       —        23,741        10,533,462

Other Industries (a)

     68,259,566                       —              —        68,259,566

Copyright/Creativity Companies

           

Publishing

     6,277,943              252,424              —          6,530,367

Other Industries (a)

     73,977,112                       —              —        73,977,112

Total Common Stocks

     213,985,445           3,895,311      93,962      217,974,718

Rights (a)

                           —      63,000               63,000

Warrants (a)

     2,177                       —              —                 2,177

U.S. Government Obligations

             18,745,027              —        18,745,027

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $213,987,622       $22,640,338    $156,962    $236,784,922

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

During the period ended March 31, 2016, common stock was transferred from level 1 to level 2 due to a decline in market activity (e.g. frequency of trades) which resulted in a lack in available market inputs to determine price. The beginning of period value of the securities that transferred from level 1 to level 2 during the period amounted to $3,253,291 or 1.60% of net assets as of December 31, 2015 . The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or

 

7


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of hedging or protecting its exposure to interest rate movements and movements in the securities markets, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits

 

8


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability 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 securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At March 31, 2016, the Fund held no restricted securities.

Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

 

9


THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Chief Executive Officer and Chairman of the Board of Directors of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. Currently he is a Managing Director and Co-Chief Investment Officer for GAMCO Investors, Inc.’s Value team. In addition, he serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.

Lawrence J. Haverty, Jr., CFA, joined GAMCO Investors, Inc. in 2005 and currently is a portfolio manager of Gabelli Funds, LLC and the Fund. Mr. Haverty was previously a managing director for consumer discretionary research at State Street Research, the Boston based subsidiary of Metropolitan Life Insurance Company. He holds a BS from the Wharton School and a MA from the Graduate School of Arts and Sciences at the University of Pennsylvania where he was a Ford Foundation Fellow.

 

 

 

 

 

 

We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XGGTX.”

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may from time to time, purchase its common shares in the open market when the Fund’s shares are trading at a discount of 5% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.


THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, New York 10580-1422

 

t

800-GABELLI (800-422-3554)

 

f

914-921-5118

 

e

info@gabelli.com

   GABELLI.COM

 

 

 

DIRECTORS

 

Mario J. Gabelli, CFA

Chairman &

Chief Executive Officer,

GAMCO Investors, Inc.

Chairman and

Chief Executive Officer

Associated Capital Group Inc.

 

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

 

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

 

Frank J. Fahrenkopf, Jr.

Former President &

Chief Executive Officer,

American Gaming Association

 

Christopher J. Marangi

Managing Director,

GAMCO Investors, Inc.

 

Kuni Nakamura

President,

Advanced Polymer, Inc.

 

Anthony R. Pustorino

Certified Public Accountant,

Professor Emeritus,

Pace University

 

Werner J. Roeder, MD

Former Medical Director,

Lawrence Hospital

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

 

OFFICERS

 

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary & Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

Carter W. Austin

Vice President & Ombudsman

 

Laurissa M. Martire

Vice President & Ombudsman

 

INVESTMENT ADVISER

 

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

 

CUSTODIAN

 

State Street Bank and Trust

Company

 

COUNSEL

 

Paul Hastings LLP

 

TRANSFER AGENT AND REGISTRAR

 

Computershare Trust Company, N.A.

 

 

 

GGT Q1/2016

LOGO

 


Item 2. 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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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 Multimedia Trust Inc.

 

 

By (Signature and Title)*

 

   /s/ Bruce N. Alpert

 
 

       Bruce N. Alpert, Principal Executive Officer

 

 

Date

 

    5/27/2016

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*

 

   /s/ Bruce N. Alpert

 
 

       Bruce N. Alpert, Principal Executive Officer

 

 

Date

 

    5/27/2016

 

 

 

By (Signature and Title)*

 

   /s/ Agnes Mullady

 
 

       Agnes Mullady, Principal Financial Officer and Treasurer

 

 

Date

 

    5/27/2016

 

* Print the name and title of each signing officer under his or her signature.