Gabelli Multimedia Trust Inc.

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 Multimedia Trust Inc.                

(Exact name of registrant as specified in charter)

One Corporate Center

                             Rye, New York 10580-1422                    

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                             Rye, New York 10580-1422                    

(Name and address of agent for service)

Registrant’s telephone number, including area code:  1-800-422-3554

Date of fiscal year end:  December 31

Date of reporting period:  June 30, 2018

 

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. § 3507.


Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.


The Gabelli Multimedia Trust Inc.

Semiannual Report — June 30, 2018

 

LOGO

To Our Shareholders,

For the six months ended June 30, 2018, the net asset value (“NAV”) total return of The Gabelli Multimedia Trust Inc. (the “Fund”) was 0.3%, 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 7.7%. The Fund’s NAV per share was $8.94, while the price of the publicly traded shares closed at $9.44 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2018.

Comparative Results

 

Average Annual Returns through June 30, 2018 (a) (Unaudited)

      Since
     Year to Date   1 Year   5 Year   10 Year   15 Year   Inception
(11/15/94)

Gabelli Multimedia Trust Inc.

                        

   NAV Total Return (b)

       0.32 %       7.48 %       10.92 %       8.40 %       8.00 %       8.95 %

   Investment Total Return (c)

       7.66       16.14       12.11       10.85       9.81       9.66

Standard & Poor’s 500 Index

       2.65       14.37       13.42       10.17       9.30       9.98 (d)

MSCI World Index

       0.43       11.09       9.94       6.26       8.14       7.21 (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 are available.

 


Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total investments as of June 30, 2018:

The Gabelli Multimedia Trust Inc.

Entertainment

     18.6

Computer Software and Services

     11.4

Broadcasting

     9.6

Cable

     9.1

Hotels and Gaming

     7.7

Wireless Communications

     4.8

Telecommunications: National

     4.6

Electronics

     4.2

Closed-End Funds

     3.8

U.S. Government Obligations

     3.4

Telecommunications: Regional

     2.8

Satellite

     2.7

Financial Services

     2.4

Publishing

     2.4

Consumer Services

     2.0

 

Business Services

     1.8

Business Services: Advertising

     1.7

Computer Hardware

     1.6

Telecommunications: Long Distance

     1.4

Equipment

     1.3

Consumer Products

     0.7

Real Estate

     0.7

Diversified Industrial

     0.6

Retail

     0.5

Food and Beverage

     0.2

Telecommunications

     0.0 %* 
  

 

 

 
         100.0
  

 

 

 

 

 

*

  Amount represents less than 0.05%.

 

 

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800- 422- 3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

Certifications

The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that, as of May 23, 2018, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

 

2


The Gabelli Multimedia Trust Inc.

Schedule of Investments — June 30, 2018 (Unaudited)

 

 

Shares

        

Cost

   

Market
Value

 
  

COMMON STOCKS — 92.7%

 

  

DISTRIBUTION COMPANIES — 55.0%

 

  

Broadcasting — 9.6%

 

  10,000     

Asahi Broadcasting Corp.

  $ 42,567     $ 75,238  
  66,000     

CBS Corp., Cl. A, Voting

    1,476,789       3,738,240  
  6,400     

Chubu-Nippon Broadcasting Co. Ltd.

    46,376       48,037  
  16,000     

Cogeco Inc.

    317,869       707,352  
  17,000     

Corus Entertainment Inc., OTC, Cl. B

    59,107       63,767  
  13,000     

Corus Entertainment Inc., Toronto, Cl. B

    54,113       49,047  
  34,000     

Discovery Inc., Cl. A†

    194,789       935,000  
  185,000     

Discovery Inc., Cl. C†

    3,544,024       4,717,500  
  242,199     

Dish TV India Ltd., GDR†

    287,018       234,933  
  81,000     

Grupo Radio Centro SAB de CV, Cl. A†

    39,884       57,099  
  16,713     

Informa plc

    184,827       184,176  
  340,000     

ITV plc

    974,219       780,763  
  4,550     

Lagardere SCA

    100,163       120,138  
  11,500     

Liberty Broadband Corp., Cl. A†

    426,661       869,860  
  33,000     

Liberty Broadband Corp., Cl. C†

    1,045,058       2,498,760  
  24,000     

Liberty Media Corp.- Liberty SiriusXM, Cl. A†

    538,771       1,081,200  
  71,000     

Liberty Media Corp.- Liberty SiriusXM, Cl. C†

    1,449,010       3,220,560  
  68,566     

Media Prima Berhad†

    34,965       8,147  
  56,000     

MSG Networks Inc., Cl. A†

    447,647       1,341,200  
  36,000     

Nippon Television Holdings Inc.

    530,748       607,723  
  4,650     

NRJ Group

    20,718       43,442  
  185,000     

Pandora Media Inc.†

    1,451,814       1,457,800  
  3,000     

RTL Group SA

    107,299       204,248  
  57,000     

Salem Media Group Inc.

    92,472       293,550  
  68,000     

Sinclair Broadcast Group Inc., Cl. A

    1,925,750       2,186,200  
  17,000     

TEGNA Inc.

    263,393       184,450  
  45,000     

Television Broadcasts Ltd.

    166,753       142,532  
  23,000     

Television Francaise 1

    229,511       242,541  
  72,000     

Tokyo Broadcasting System Holdings Inc.

    1,384,486       1,617,992  
  240,000     

TV Azteca SA de CV

    58,305       29,123  
    

 

 

   

 

 

 
         17,495,106         27,740,618  
    

 

 

   

 

 

 
  

Business Services — 1.7%

 

  1,000     

Convergys Corp.

    17,737       24,440  
  33,000     

Emerald Expositions Events Inc.

    583,511       679,800  
  6,000     

Fluent Inc.†

    91,725       14,700  
  6,000     

Impellam Group plc

    8,600       35,554  
  2,000     

Qumu Corp.†

    8,366       4,400  
  17,700     

S&P Global Inc.

    1,427,994       3,608,853  
  19,000     

Zayo Group Holdings Inc.†

    608,464       693,120  
    

 

 

   

 

 

 
       2,746,397       5,060,867  
    

 

 

   

 

 

 

 

Shares

        

Cost

   

Market
Value

 
  

Cable — 9.1%

 

  40,000     

Altice Europe NV, Cl. A†

  $ 466,484     $ 163,025  
  34,500     

AMC Networks Inc., Cl. A†

    2,306,650       2,145,900  
  800     

Cable One Inc.

    284,278       586,632  
  10,500     

Charter Communications Inc.,
Cl. A†

    2,056,804       3,078,705  
  36,500     

Cogeco Communications Inc.

    825,409       1,807,995  
  134,000     

Comcast Corp., Cl. A

    4,741,622       4,396,540  
  20,000     

Entercom Communications Corp., Cl. A

    181,625       151,000  
  32,931     

Liberty Global plc, Cl. A†

    458,982       906,920  
  180,177     

Liberty Global plc, Cl. C†

    4,710,513       4,794,510  
  101,690     

Rogers Communications Inc., New York, Cl. B

    3,755,331       4,826,207  
  19,310     

Rogers Communications Inc., Toronto, Cl. B

    148,207       917,139  
  10,000     

Shaw Communications Inc., New York, Cl. B

    167,258       203,500  
  78,000     

Shaw Communications Inc., Toronto, Cl. B

    105,571       1,588,894  
  4,000     

Telenet Group Holding NV†

    234,227       186,848  
  50,000     

WideOpenWest Inc.†

    628,768       483,000  
    

 

 

   

 

 

 
         21,071,729         26,236,815  
    

 

 

   

 

 

 
  

Computer Software and Services — 0.3%

 

  5,000     

CyrusOne Inc., REIT

    272,058       291,800  
  110,000     

Groupon Inc.†

    557,254       473,000  
    

 

 

   

 

 

 
       829,312       764,800  
    

 

 

   

 

 

 
  

Consumer Services — 1.9%

 

  5,666     

Cars.com Inc.†

    148,142       160,858  
  10,000     

H&R Block Inc.

    228,425       227,800  
  14,400     

IAC/InterActiveCorp.†

    559,389       2,195,856  
  10,200     

Liberty Expedia Holdings Inc.,
Cl. A†

    209,760       448,188  
  22,000     

Liberty TripAdvisor Holdings Inc., Cl. A†

    222,458       354,200  
  95,000     

Qurate Retail Inc.†

    1,254,831       2,015,900  
    

 

 

   

 

 

 
       2,623,005       5,402,802  
    

 

 

   

 

 

 
  

Diversified Industrial — 0.6%

 

  16,000     

Bouygues SA

    449,280       689,657  
  3,000     

Fortune Brands Home & Security Inc.

    125,326       161,070  
  23,000     

Jardine Strategic Holdings Ltd.

    595,515       839,040  
  6,000     

Malaysian Resources Corp. Bhd.

    4,297       891  
    

 

 

   

 

 

 
       1,174,418       1,690,658  
    

 

 

   

 

 

 
  

Entertainment — 10.9%

 

  50,000     

Borussia Dortmund GmbH & Co. KGaA

    354,809       313,847  
  95,000     

Entertainment One Ltd.

    398,738       461,133  
  36,000     

Gogo Inc.†

    401,440       174,960  
 

 

See accompanying notes to financial statements.

 

3


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)

 

 

Shares

        

Cost

   

Market
Value

 
  

COMMON STOCKS (Continued)

 

  

DISTRIBUTION COMPANIES (Continued)

 

  

Entertainment (Continued)

 

  247,500     

Grupo Televisa SAB, ADR

  $ 5,033,980     $ 4,690,125  
  15,000     

Liberty Media Corp.- Liberty Braves, Cl. A†

    318,309       385,650  
  89,020     

Liberty Media Corp.- Liberty Braves, Cl. C†

    1,606,974       2,302,057  
  10,750     

Liberty Media Corp.- Liberty Formula One, Cl. A†

    220,302       379,583  
  27,000     

Liberty Media Corp.- Liberty Formula One, Cl. C†

    473,242       1,002,510  
  4,000     

M6 Metropole Television SA

    35,208       80,018  
  27,900     

Naspers Ltd., Cl. N

    2,428,619       7,088,136  
  1,000     

Netflix Inc.†

    88,661       391,430  
  63,073     

Reading International Inc., Cl. A†

    966,128       1,006,014  
  8,000     

Reading International Inc., Cl. B†

    85,625       249,600  
  5,000     

Roku Inc.†

    70,000       213,100  
  173,000     

Sky plc

    2,141,959       3,336,846  
  5,800     

Sky plc, ADR

    181,535       457,504  
  10,000     

Take-Two Interactive Software Inc.†

    336,664       1,183,600  
  24,000     

The Madison Square Garden Co, Cl. A†

    1,798,015       7,444,560  
  300,000     

Wow Unlimited Media Inc.†(a)

    345,198       327,349  
    

 

 

   

 

 

 
         17,285,406         31,488,022  
    

 

 

   

 

 

 
  

Equipment — 1.3%

   
  12,500     

American Tower Corp., REIT

    1,146,057       1,802,125  
  3,600     

Amphenol Corp., Cl. A

    7,014       313,740  
  50,000     

Corning Inc.

    1,364,468       1,375,500  
  200     

Furukawa Electric Co. Ltd.

    7,419       7,000  
  7,500     

QUALCOMM Inc.

    205,136       420,900  
    

 

 

   

 

 

 
       2,730,094       3,919,265  
    

 

 

   

 

 

 
  

Financial Services — 2.4%

 

 
  15,000     

Caribbean Investment Holdings Ltd.†

    14,944       3,464  
  35,500     

Kinnevik AB, Cl. A

    673,200       1,216,792  
  39,000     

Kinnevik AB, Cl. B

    1,339,197       1,336,322  
  5,600     

LendingTree Inc.†

    195,174       1,197,280  
  40,000     

PayPal Holdings Inc.†

    1,597,171       3,330,800  
  14,000     

Waterloo Investment Holdings Ltd.†(b)

    2,009       2,660  
    

 

 

   

 

 

 
       3,821,695       7,087,318  
    

 

 

   

 

 

 
  

Food and Beverage — 0.2%

 

 
  7,000     

Davide Campari-Milano SpA

    49,930       57,590  
  2,994     

Pernod Ricard SA

    190,567       489,146  
  1,500     

Remy Cointreau SA

    177,077       194,439  
    

 

 

   

 

 

 
       417,574       741,175  
    

 

 

   

 

 

 

Shares

        

Cost

   

Market
Value

 
  

Real Estate — 0.3%

   
  2,000     

Crown Castle International Corp., REIT

  $ 206,731     $ 215,640  
  15,000     

Midway Investments†(b)

    96       99  
  28,000     

Uniti Group Inc., REIT†

    437,067       560,840  
    

 

 

   

 

 

 
       643,894       776,579  
    

 

 

   

 

 

 
  

Retail — 0.5%

   
  200     

Amazon.com Inc.†

    35,729       339,960  
  20,000     

Bed Bath & Beyond Inc.

    443,602       398,500  
  5,000     

Best Buy Co. Inc.

    125,589       372,900  
  25,000     

FTD Companies Inc.†

    171,585       116,000  
  20,000     

Mattel Inc.

    307,228       328,400  
    

 

 

   

 

 

 
         1,083,733         1,555,760  
    

 

 

   

 

 

 
  

Satellite — 2.7%

   
  1,000     

Asia Satellite Telecommunications Holdings Ltd.

    1,555       793  
  114,000     

DISH Network Corp., Cl. A†

    5,209,396       3,831,540  
  28,900     

EchoStar Corp., Cl. A†

    725,147       1,283,160  
  33,000     

Iridium Communications Inc.†

    261,303       531,300  
  53,500     

Loral Space & Communications Inc.†

    2,292,630       2,011,600  
  250,000     

PT Indosat Tbk

    52,779       55,478  
  3,000     

SKY Perfect JSAT Holdings Inc.

    15,472       14,307  
  2,000     

ViaSat Inc.†

    126,169       131,440  
    

 

 

   

 

 

 
       8,684,451       7,859,618  
    

 

 

   

 

 

 
  

Telecommunications: Long Distance — 1.4%

 

  88,887     

AT&T Inc.

    2,967,872       2,854,162  
  2,020     

BCE Inc., New York

    87,553       81,790  
  1,074     

BCE Inc., Toronto

    46,622       43,494  
  200,000     

Sprint Corp.†

    1,163,277       1,088,000  
    

 

 

   

 

 

 
       4,265,324       4,067,446  
    

 

 

   

 

 

 
  

Telecommunications: National — 4.6%

 

  5,000     

China Telecom Corp. Ltd., ADR

    126,250       232,150  
  5,000     

China Unicom Hong Kong Ltd., ADR

    38,450       62,550  
  61,000     

Deutsche Telekom AG, ADR

    789,100       941,535  
  20,000     

Dycom Industries Inc.†

    1,707,360       1,890,200  
  16,000     

Elisa Oyj

    155,779       741,227  
  3,605     

Hellenic Telecommunications Organization SA

    41,551       44,625  
  30,000     

Inmarsat plc

    251,357       217,759  
  11,874     

Liberty Latin America Ltd., Cl. A†

    218,845       227,031  
  34,016     

Liberty Latin America Ltd., Cl. C†

    992,530       659,230  
  1,000     

Magyar Telekom Telecommunications plc, ADR

    9,280       7,100  
  1,000     

Maroc Telecom

    14,670       14,714  
  10,000     

Nippon Telegraph & Telephone Corp.

    230,089       454,862  
  5,000     

Oi SA, ADR†

    17,766       4,150  
 

 

See accompanying notes to financial statements.

 

4


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)

 

 

Shares

         

Cost

   

Market
Value

 
  

COMMON STOCKS (Continued)

 

  

DISTRIBUTION COMPANIES (Continued)

 

  

Telecommunications: National (Continued)

 

  200     

Oi SA, Cl. C, ADR†

   $ 3,744     $ 882  
  4,000     

Orange SA, ADR

     65,705       66,680  
  22,000     

PLDT Inc., ADR

     370,294       514,360  
  6,000     

PT Telekomunikasi Indonesia Persero Tbk, ADR

     12,340       156,060  
  6,000     

Rostelecom PJSC, ADR

     41,408       42,038  
  26,000     

Swisscom AG, ADR

     662,983       1,159,340  
  10,000     

Tele2 AB, Cl. B

     117,846       117,565  
  6,000     

Telecom Argentina SA, ADR

     5,820       106,440  
  375,000     

Telecom Italia SpA†

     990,170       279,134  
  50,000     

Telecom Italia SpA

     44,963       32,675  
  17,500     

Telefonica Brasil SA, ADR

     283,641       207,725  
  111,710     

Telefonica SA, ADR

     1,160,831       952,886  
  145,000     

Telekom Austria AG

     1,030,094       1,209,025  
  55,000     

Telesites SAB de CV†

     41,755       40,128  
  15,172     

Telia Co. AB

     42,639       69,383  
  2,400     

Telstra Corp. Ltd., ADR

     30,324       23,376  
  100,000     

VEON Ltd., ADR

     183,016       238,000  
  53,000     

Verizon Communications Inc.

     2,001,420       2,666,430  
     

 

 

   

 

 

 
          11,682,020         13,379,260  
     

 

 

   

 

 

 
  

Telecommunications: Regional — 2.7%

 

  56,000     

CenturyLink Inc.

     1,070,720       1,043,840  
  20,000     

Cincinnati Bell Inc.†

     331,393       314,000  
  60,088     

GCI Liberty Inc., Cl. A†

     2,357,202       2,708,767  
  15,000     

Ocelot Partners Ltd.†

     144,925       143,625  
  80,000     

Telephone & Data Systems Inc.

     3,306,578       2,193,600  
  8,000     

TELUS Corp., New York

     100,703       284,080  
  32,000     

TELUS Corp., Toronto

     298,834       1,136,728  
     

 

 

   

 

 

 
        7,610,355       7,824,640  
     

 

 

   

 

 

 
  

Wireless Communications — 4.8%

 

  66,652     

Altice USA Inc., Cl. A

     1,481,921       1,137,083  
  55,000     

America Movil SAB de CV, Cl. L, ADR

     367,164       916,300  
  95,000     

Global Telecom Holding SAE, GDR†

     75,678       25,011  
  240,000     

Jasmine International PCL(b)

     5,040       31,295  
  62,000     

Millicom International Cellular SA, SDR

     4,222,493       3,661,819  
  82,000     

NTT DoCoMo Inc.

     1,274,683       2,090,457  
  19,000     

Orascom Telecom Media and Technology Holding SAE, GDR

     29,430       3,838  
  60,000     

ORBCOMM Inc.†

     473,535       606,000  
  34,000     

SK Telecom Co. Ltd., ADR

     761,600       792,880  
  4,203     

Tim Participacoes SA, ADR

     108,533       70,863  
  45,000     

T-Mobile US Inc.†

     1,824,250       2,688,750  
  10,000     

Turkcell Iletisim Hizmetleri A/S, ADR

     123,780       65,400  
  30,000     

United States Cellular Corp.†

     1,107,291       1,111,200  

Shares

       

Cost

   

Market Value

 
  25,000    

Vodafone Group plc, ADR

  $ 971,225     $ 607,750  
   

 

 

   

 

 

 
      12,826,623       13,808,646  
   

 

 

   

 

 

 
 

TOTAL DISTRIBUTION COMPANIES

     116,991,136        159,404,289  
   

 

 

   

 

 

 
 

COPYRIGHT/CREATIVITY COMPANIES — 37.7%

 

 

Business Services — 0.1%

 

  8,000    

Scientific Games Corp.†

    75,735       393,200  
   

 

 

   

 

 

 
 

Business Services: Advertising—1.7%

 

  1,000    

Boston Omaha Corp., Cl. A†

    16,970       21,070  
  244,000    

Clear Channel Outdoor Holdings Inc., Cl. A

    1,529,320       1,049,200  
  1,300    

Harte-Hanks Inc.†

    89,578       14,430  
  11,557    

JCDecaux SA

    290,396       386,803  
  9,400    

Lamar Advertising Co., Cl. A, REIT

    389,888       642,114  
  27,000    

National CineMedia Inc.

    173,997       226,800  
  1,500    

Publicis Groupe SA

    10,478       103,245  
  4,000    

Ströeer SE & Co KGaA

    89,263       242,202  
  10,000    

Telaria Inc.†

    22,112       40,400  
  96,000    

The Interpublic Group of Companies Inc.

    1,558,915       2,250,240  
   

 

 

   

 

 

 
      4,170,917       4,976,504  
   

 

 

   

 

 

 
 

Computer Hardware — 1.6%

 

  25,300    

Apple Inc.

    3,080,640       4,683,283  
   

 

 

   

 

 

 
 

Computer Software and Services — 11.1%

 

  32,000    

Activision Blizzard Inc.

    1,427,455       2,442,240  
  4,000    

Actua Corp.

    0       2,280  
  5,500    

Alphabet Inc., Cl. A†

    4,887,427       6,210,545  
  1,300    

Alphabet Inc., Cl. C†

    973,732       1,450,345  
  11,000    

Blucora Inc.†

    81,735       407,000  
  71,000    

comScore Inc.†

    1,913,813       1,547,800  
  23,000    

Dell Technologies Inc., Cl. V†

    1,659,761       1,945,340  
  73,000    

eBay Inc.†

    1,534,729       2,646,980  
  1,000    

Electronic Arts Inc.†

    141,955       141,020  
  49,500    

Facebook Inc., Cl. A†

    5,173,711       9,618,840  
  8,000    

GrubHub Inc.†

    199,308       839,280  
  115,000    

Hewlett Packard Enterprise Co.

    1,633,243       1,680,150  
  76,654    

Internap Corp.†

    1,043,696       798,735  
  10,000    

InterXion Holding NV†

    135,436       624,200  
  10,000    

Microsoft Corp.

    561,253       986,100  
  7,000    

QTS Realty Trust Inc., Cl. A, REIT

    146,432       276,500  
  300    

Red Violet Inc.†

    1,920       2,580  
  6,000    

SoftBank Group Corp.

    351,493       432,082  
  1,000    

Switch Inc., Cl. A

    17,000       12,170  
   

 

 

   

 

 

 
      21,884,099       32,064,187  
   

 

 

   

 

 

 
 

Consumer Products — 0.7%

 

  2,200    

Nintendo Co. Ltd.

    269,057       719,324  
 

 

See accompanying notes to financial statements.

 

5


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)

 

 

Shares

         

Cost

    

Market
Value

 
  

COMMON STOCKS (Continued)

 

  

COPYRIGHT/CREATIVITY COMPANIES (Continued)

 

  

Consumer Products (Continued)

 

  34,000     

Nintendo Co. Ltd., ADR

   $ 602,270      $ 1,386,860  
     

 

 

    

 

 

 
        871,327        2,106,184  
     

 

 

    

 

 

 
  

Consumer Services — 0.1%

 

  224     

Liq Participacoes SA†

     7,693        34  
  5,000     

XO Group Inc.†

     49,981        160,000  
     

 

 

    

 

 

 
        57,674        160,034  
     

 

 

    

 

 

 
  

Electronics — 4.2%

 

  2,000     

IMAX Corp.†

     10,333        44,300  
  5,000     

Intel Corp.

     105,992        248,550  
  3,440     

Koninklijke Philips NV

     36,704        145,409  
  45,000     

Micro Focus International plc, ADR

     1,097,269        777,150  
  212,000     

Sony Corp., ADR

     4,423,647        10,867,120  
     

 

 

    

 

 

 
          5,673,945          12,082,529  
     

 

 

    

 

 

 
  

Entertainment — 7.7%

 

  50,000     

Entravision Communications Corp., Cl. A

     252,919        250,000  
  79,200     

GMM Grammy Public Co. Ltd.†

     52,488        19,364  
  5,000     

Lions Gate Entertainment Corp., Cl. A

     85,897        124,100  
  36,000     

Lions Gate Entertainment Corp., Cl. B

     913,135        844,560  
  23,000     

Live Nation Entertainment Inc.†

     240,897        1,117,110  
  1,500     

RLJ Entertainment Inc.†

     6,003        6,945  
  17,000     

STV Group plc

     13,537        100,063  
  7,500     

The Walt Disney Co.

     688,815        786,075  
  116,000     

Twenty-First Century Fox Inc., Cl. A

     1,236,225        5,764,040  
  110,000     

Twenty-First Century Fox Inc., Cl. B

     3,758,167        5,419,700  
  56,000     

Universal Entertainment Corp.†

     1,455,802        2,518,900  
  52,790     

Viacom Inc., Cl. A

     1,594,185        1,871,406  
  44,000     

Viacom Inc., Cl. B

     1,241,322        1,327,040  
  66,000     

Vivendi SA

     1,547,757        1,618,573  
  8,000     

World Wrestling Entertainment Inc., Cl. A

     94,851        582,560  
     

 

 

    

 

 

 
        13,182,000        22,350,436  
     

 

 

    

 

 

 
  

Hotels and Gaming — 7.7%

 

  102,000     

Boyd Gaming Corp.

     1,827,964        3,535,320  
  600     

Churchill Downs Inc.

     52,401        177,900  
  15,000     

Full House Resorts Inc.†

     49,513        49,950  
  12,000     

Golden Entertainment Inc.†

     123,590        323,880  
  4,200     

Greek Organization of Football Prognostics SA

     45,444        47,478  
  18,427     

GVC Holdings plc

     238,757        255,593  
  38,197     

ILG Inc.

     884,329        1,261,647  
  46,000     

International Game Technology plc

     972,783        1,069,040  
  27,000     

Las Vegas Sands Corp.

     1,332,828        2,061,720  

Shares

         

Cost

    

Market

Value

 
  156,250     

Mandarin Oriental International Ltd.

   $ 249,278      $ 364,063  
  31,500     

Melco Crown Entertainment Ltd., ADR

     212,265        882,000  
  22,000     

MGM China Holdings Ltd.

     43,826        51,035  
  48,000     

MGM Resorts International

     1,541,695        1,393,440  
  4,000     

Penn National Gaming Inc.†

     26,016        134,360  
  72,500     

Ryman Hospitality Properties Inc., REIT

     2,824,172        6,028,375  
  27,000     

Wynn Resorts Ltd.

     1,930,295        4,518,180  
     

 

 

    

 

 

 
        12,355,156        22,153,981  
     

 

 

    

 

 

 
  

Publishing — 2.4%

 

  18,000     

AH Belo Corp., Cl. A

     83,119        84,600  
  20,000     

Arnoldo Mondadori Editore SpA†

     63,826        30,503  
  974,000     

Bangkok Post plc†

     47,100        76,438  
  800     

Graham Holdings Co., Cl. B

     431,961        468,880  
  800     

John Wiley & Sons Inc., Cl. B

     5,692        50,128  
  11,500     

Meredith Corp.

     380,248        586,500  
  5,263     

Nation International Edutainment Public Co. Ltd.†

     265        216  
  1,000,000     

Nation Multimedia Group Public Co. Ltd.†

     53,346        11,470  
  28,000     

News Corp., Cl. A

     130,834        434,000  
  60,000     

News Corp., Cl. B

     856,107        951,000  
  8,000     

Nielsen Holdings plc

     217,702        247,440  
  6,779     

Novus Holdings Ltd.

     3,053        1,646  
  1,000     

Scholastic Corp.

     16,500        44,310  
  247,000     

Singapore Press Holdings Ltd.

     725,198        471,339  
  600     

Spir Communication(b)

     13,551        1,237  
  11,000     

Telegraaf Media Groep
NV†(b)

     173,304        77,075  
  77,054     

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

     1,408,798        1,031,753  
  60,000     

Tribune Media Co., Cl. A

     2,285,084        2,296,200  
  2,200     

Wolters Kluwer NV

     49,844        123,988  
     

 

 

    

 

 

 
        6,945,532        6,988,723  
     

 

 

    

 

 

 
  

Real Estate — 0.4%

 

  2,500     

Equinix Inc., REIT

     1,014,672        1,074,725  
  9,000     

Outfront Media Inc.,, REIT

     186,459        175,050  
     

 

 

    

 

 

 
        1,201,131        1,249,775  
     

 

 

    

 

 

 
  

TOTAL COPYRIGHT/CREATIVITY COMPANIES

     69,498,156        109,208,836  
     

 

 

    

 

 

 
  

TOTAL COMMON STOCKS

       186,489,292          268,613,125  
     

 

 

    

 

 

 
  

CLOSED-END FUNDS — 3.8%

 

  
  150,500     

Altaba Inc.†

     6,790,464        11,018,105  
     

 

 

    

 

 

 
  

PREFERRED STOCKS — 0.1%

 

  

DISTRIBUTION COMPANIES — 0.1%

 

  

Telecommunications: Regional — 0.1%

 

  5,500     

GCI Liberty Inc., Ser. A, 5.000%

     112,525        132,825  
     

 

 

    

 

 

 
 

 

See accompanying notes to financial statements.

 

6


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)

 

 

Shares

         

Cost

    

Market
Value

 
  

RIGHTS — 0.0%

 

   COPYRIGHT/CREATIVITY COMPANIES — 0.0%      
   Hotels and Gaming — 0.0%      
  120,000     

Ladbrokes plc, CVR†

   $ 0      $ 5,781  
     

 

 

    

 

 

 
   DISTRIBUTION COMPANIES — 0.0%

 

  
   Broadcasting — 0.0%      
  14,000     

Media General Inc., CVR†(b)

     0        0  
     

 

 

    

 

 

 
  

TOTAL RIGHTS

     0        5,781  
     

 

 

    

 

 

 
   WARRANTS — 0.0%      
   DISTRIBUTION COMPANIES — 0.0%

 

  
   Real Estate — 0.0%      
  1,371     

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

     0        2  
  600     

Malaysian Resources Corp. Bhd, expire 10/29/27†

     0        31  
   Telecommunications — 0.0%      
  117,647     

Jasmine International PCL, expire 07/05/20†

     0        5,043  
     

 

 

    

 

 

 
  

TOTAL WARRANTS

                 0                    5,076  
     

 

 

    

 

 

 

Principal
Amount

     

Cost

   

Market

Value

 
 

U.S. GOVERNMENT OBLIGATIONS — 3.4%

 

 
$9,975,000  

U.S. Treasury Bills,
1.884% to 2.097%††,
08/16/18 to 12/20/18

  $ 9,903,861     $ 9,905,872  
   

 

 

   

 

 

 

TOTAL INVESTMENTS — 100.0%

  $ 203,296,142       289,680,784  
   

 

 

   

Other Assets and Liabilities (Net)

      (840,648

PREFERRED STOCK

   

    (2,791,024 preferred shares outstanding)

      (70,025,350
     

 

 

 

NET ASSETS — COMMON STOCK

   

    (24,475,372 common shares outstanding)

    $ 218,814,786  
     

 

 

 

NET ASSET VALUE PER COMMON SHARE

   

    ($218,814,786 ÷ 24,475,372 shares outstanding)

    $ 8.94  
     

 

 

 

 

(a)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2018, the market value of the Rule 144A security amounted to $327,349 or 0.11% of total investments.

(b)

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

Non-income producing security.

††

Represents annualized yields at dates of purchase.

 

ADR   American Depositary Receipt
CVR   Contingent Value Right
GDR   Global Depositary Receipt
PCL   Public Company Limited
REIT   Real Estate Investment Trust
SDR   Swedish Depositary Receipt

 

Geographic Diversification

   % of Total
Investments
  Market
Value

North America

       75.5 %     $ 218,745,507

Europe

       10.6       30,842,379

Japan

       7.2       20,839,903

Latin America

       2.5       7,209,914

South Africa

       2.5       7,089,781

Asia/Pacific

       1.7       4,924,451

Africa/Middle East

       0.0 *       28,849
    

 

 

     

 

 

 

Total Investments

       100.0 %     $ 289,680,784
    

 

 

     

 

 

 

 

*        Amount represents less than 0.05%.

 

 

See accompanying notes to financial statements.

 

7


The Gabelli Multimedia Trust Inc.

 

Statement of Assets and Liabilities

June 30, 2018 (Unaudited)

 

 

Assets:

  

Investments, at value (cost $203,296,142)

   $ 289,680,784  

Foreign currency, at value (cost $31,792)

     31,991  

Receivable for investments sold

     53,750  

Deferred offering expense

     142,480  

Dividends receivable

     308,999  

Prepaid expenses

     2,295  
  

 

 

 

Total Assets

     290,220,299  
  

 

 

 

Liabilities:

  

Payable to custodian

     1,446  

Distributions payable

     52,137  

Deferred tax liabilities

     15,837  

Payable for investments purchased

     972,372  

Payable for investment advisory fees

     222,704  

Payable for payroll expenses

     17,814  

Payable for accounting fees

     11,250  

Payable for auction agent fees (a)

     2,184  

Other accrued expenses

     84,419  
  

 

 

 

Total Liabilities

     1,380,163  
  

 

 

 

Preferred Stock, $0.001 par value:

  

Series B Cumulative Preferred Stock (6.000%, $25 liquidation value, 1,000,000 shares authorized with 791,014 shares issued and outstanding)

     19,775,350  

Series C Cumulative Preferred Stock (Auction Rate, $25,000 liquidation value, 1,000 shares authorized with 10 shares issued and outstanding)

     250,000  

Series E Cumulative Preferred Stock (5.125%, $25 liquidation value, 2,000,000 shares authorized with 2,000,000 shares issued and outstanding)

     50,000,000  
  

 

 

 

Total Preferred Stock

     70,025,350  
  

 

 

 

Net Assets Attributable to Common Shareholders .

   $ 218,814,786  
  

 

 

 

Net Assets Attributable to Common Shareholders Consist of:

  

Paid-in capital

   $ 136,029,722  

Distributions in excess of net investment income

     (852,119

Distributions in excess of net realized gain on investments and foreign currency transactions

     (2,730,711

Net unrealized appreciation on investments (b)

     86,368,805  

Net unrealized depreciation on foreign currency translations

     (911
  

 

 

 

Net Assets

   $ 218,814,786  
  

 

 

 

Net Asset Value per Common Share:

  

($218,814,786 ÷ 24,475,372 shares outstanding at $0.001 par value; 196,750,000 shares authorized)

     $8.94  

 

 

(a)

This amount represents auction agent fees accrued for earlier fiscal periods, and not for the period covered by this report.

(b)

Includes net unrealized depreciation of $15,837 in deferred Thailand capital gains tax during the six months ended June 30, 2018.

Statement of Operations

For the Six Months Ended June 30, 2018 (Unaudited)

 

 

Investment Income:

  

Dividends (net of foreign withholding taxes of $130,721)

   $  2,427,732  

Interest

     122,439  
  

 

 

 

Total Investment Income

     2,550,171  
  

 

 

 

Expenses:

  

Investment advisory fees

     1,463,137  

Shareholder communications expenses

     69,509  

Audit and legal fees

     48,723  

Payroll expenses

     44,192  

Shareholder services fees

     43,944  

Directors’ fees

     35,165  

Custodian fees

     24,263  

Accounting fees

     22,500  

Interest expense

     128  

Miscellaneous expenses

     37,214  
  

 

 

 

Total Expenses

     1,788,775  
  

 

 

 

Less:

  

Advisory fee reduction (See Note 3)

     (99,304

Expenses paid indirectly by broker
(See Note 3)

     (1,427
  

 

 

 

Total Reductions and Credits

     (100,731
  

 

 

 

Net Expenses

     1,688,044  
  

 

 

 

Net Investment Income

     862,127  
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on

  

Investments and Foreign Currency:

  

Net realized gain on investments

     4,750,655  

Net realized loss on foreign currency transactions

     (7,451
  

 

 

 

Net realized gain on investments and foreign currency transactions

     4,743,204  
  

 

 

 

Net change in unrealized appreciation/depreciation:

  

on investments

     (2,850,610

on foreign currency translations

     (1,533
  

 

 

 

Net change in unrealized appreciation/depreciation on investments and foreign currency translations

     (2,852,143
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency

     1,891,061  
  

 

 

 

Net Increase in Net Assets Resulting from Operations

     2,753,188  
  

 

 

 

Total Distributions to Preferred Shareholders

     (1,877,999
  

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

   $ 875,189  
  

 

 

 
 

 

See accompanying notes to financial statements.

 

8


The Gabelli Multimedia Trust Inc.

Statement of Changes in Net Assets Attributable to Common Shareholders

 

 

     Six Months Ended    
     June 30, 2018   Year Ended
     (Unaudited)   December 31, 2017

Operations:

        

Net investment income

     $ 862,127     $ 287,076

Net realized gain on investments and foreign currency transactions

       4,743,204       20,291,675

Net change in unrealized appreciation/depreciation on investments and foreign currency translations

       (2,852,143 )       31,110,566
    

 

 

     

 

 

 

Net Increase in Net Assets Resulting from Operations

       2,753,188       51,689,317
    

 

 

     

 

 

 

Distributions to Preferred Shareholders:

        

Net investment income

       (285,832 )*       (81,799 )

Net realized gain

       (1,592,167 )*       (1,878,530 )
    

 

 

     

 

 

 

Total Distributions to Preferred Shareholders

       (1,877,999 )       (1,960,329 )
    

 

 

     

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

       875,189       49,728,988
    

 

 

     

 

 

 

Distributions to Common Shareholders:

        

Net investment income

       (536,287 )*       (772,728 )

Net realized gain

       (2,973,955 )*       (17,745,839 )

Return of capital

       (7,215,498 )*       (2,864,287 )
    

 

 

     

 

 

 

Total Distributions to Common Shareholders

       (10,725,740 )       (21,382,854 )
    

 

 

     

 

 

 

Fund Share Transactions:

        

Net increase in net assets from common shares issued upon reinvestment of distributions

       1,192,177       588,227

Net decrease from repurchase of common shares

             (222,688 )

Net increase in net assets from redemption of preferred shares

             2,950,000

Offering costs for preferred shares charged to paid-in capital

       (4,111 )       (1,807,760 )
    

 

 

     

 

 

 

Net Increase in Net Assets from Fund Share Transactions

       1,188,066       1,507,779
    

 

 

     

 

 

 

Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders

       (8,662,485 )       29,853,913

Net Assets Attributable to Common Shareholders:

        

Beginning of year

       227,477,271       197,623,358
    

 

 

     

 

 

 

End of period (including undistributed net investment income of $0 and $0, respectively)

     $ 218,814,786     $ 227,477,271
    

 

 

     

 

 

 

 

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

See accompanying notes to financial statements.

 

9


The Gabelli Multimedia Trust Inc.

Financial Highlights

 

Selected data for a common share outstanding throughout each period:

 

    Six Months Ended                                
    June 30, 2018     For the Year Ended December 31,  
    (Unaudited)               2017               2016               2015               2014               2013  

Operating Performance:

           

Net asset value, beginning of year

    $     9.34       $      8.13       $      8.36       $      9.81       $    10.90       $     8.22  

Net investment income

    0.04       0.01       0.05       0.03       0.05       0.06  

Net realized and unrealized gain/(loss) on investments and foreign currency transactions

           0.08               2.11               0.60               (0.49             0.42              3.61  

Total from investment operations

           0.12               2.12               0.65               (0.46             0.47              3.67  

Distributions to Preferred Shareholders: (a)

           

Net investment income

    (0.01 )*      (0.00 )(b)      (0.00 )(b)              (0.00 )(b)      (0.00 )(b)      (0.01

Net realized gain

          (0.07 )*              (0.08             (0.05             (0.05             (0.06           (0.06

Total distributions to preferred shareholders

          (0.08             (0.08             (0.05             (0.05             (0.06           (0.07

Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from Operations

           0.04                2.04                0.60               (0.51              0.41              3.60  

Distributions to Common Shareholders:

           

Net investment income

    (0.02 )*      (0.03     (0.06     (0.03     (0.02     (0.05

Net realized gain

    (0.12 )*      (0.73     (0.74     (0.89     (0.88     (0.87

Return of capital

          (0.30 )*              (0.12             (0.03             (0.02            (0.15                —  

Total distributions to common shareholders

          (0.44             (0.88             (0.83             (0.94            (1.05           (0.92

Fund Share Transactions:

           

Decrease in net asset value from common shares issued in rights offering

                            (0.44)        

Increase in net asset value from repurchase of common shares

          0.00 (b)                         

Increase in net asset value from common shares issued upon reinvestment of distributions

                            0.00(b)       0.00(b)  

Increase in net asset value from redemption of preferred shares

          0.12                                —  

Offering expenses charged to paid-in capital

          (0.00) (b)             (0.07                 —               (0.00 )(b)             (0.01                —  

Total Fund share transactions

          (0.00) (b)              0.05                   —               (0.00 )(b)             (0.45             0.00 (b) 

Net Asset Value Attributable to Common Shareholders, End of Period

    $      8.94       $      9.34       $      8.13       $       8.36       $      9.81       $    10.90  

NAV total return †

            0.32           26.50             7.59             (5.57 )%               4.17           45.77

Market value, end of period

    $      9.44       $      9.20       $      7.24       $       7.50       $    10.01       $    12.40  

Investment total return ††

            7.66           40.21             7.97          (16.33 )%             (6.63 )%            73.37

Ratios to Average Net Assets and Supplemental Data:

           

Net assets including liquidation value of preferred shares, end of period (in 000’s)

    $288,840       $297,503       $232,399       $238,049       $273,307       $232,399  

Net assets attributable to common shares, end of period (in 000’s)

    $218,815       $227,477       $197,623       $203,274       $238,532       $197,624  

Ratio of net investment income/(loss) to average net assets attributable to common shares before preferred share distributions

    0.77 %(c)      0.13     0.70     0.33     0.13     0.60

Ratio of operating expenses to average net assets attributable to common shares before fees waived/fee reduction(d)

    1.60 %(c)(e)      1.45 %(e)      1.49 %(e)(f)      1.45 %(e)      1.59     1.55

 

See accompanying notes to financial statements.

 

10


The Gabelli Multimedia Trust Inc.

Financial Highlights (Continued)

 

 

Selected data for a common share outstanding throughout each period:

 

     Six Months Ended
June 30, 2018

(Unaudited)
    For the Year Ended December 31,  
    2017     2016     2015     2014     2013  

Ratios to Average Net Assets and Supplemental Data (Continued):

            

Ratio of operating expenses to average net assets attributable to common shares net of advisory fee reduction, if any (g)

     1.51 %(c)(e)      1.45 %(e)      1.49 %(e)(f)      1.30 %(e)      1.50     1.55

Portfolio turnover rate

     6.2     16.8     10.3     14.0     16.0     12.7

Cumulative Preferred Stock:

            

6.000% Series B Preferred

            

Liquidation value, end of period (in 000’s)

     $  19,775     $ 19,775     $ 19,775     $ 19,775     $ 19,775     $ 19,775  

Total shares outstanding (in 000’s)

     791       791       791       791       791       791  

Liquidation preference per share

     $    25.00     $ 25.00     $ 25.00     $ 25.00     $ 25.00     $ 25.00  

Average market value (h)

     $    25.89     $ 26.36     $ 26.42     $ 25.80     $ 25.41     $ 25.45  

Asset coverage per share (i)

     $  103.12     $ 106.21     $ 167.07     $ 171.13     $ 196.48     $ 167.07  

Series C Auction Rate Preferred

            

Liquidation value, end of period (in 000’s)

     $       250     $ 250     $ 15,000     $ 15,000     $ 15,000     $ 15,000  

Total shares outstanding (in 000’s)

     0 (j)      0 (j)      1       1       1       1  

Liquidation preference per share

     $  25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Liquidation value (k)

     $  25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000  

Asset coverage per share (i)

     $103,120     $ 106,212     $ 167,071     $ 171,134     $ 196,481     $ 167,072  

5.125% Series E Preferred

            

Liquidation value, end of period (in 000’s)

     $  50,000     $ 50,000                          

Total shares outstanding (in 000’s)

     2,000       2,000                          

Liquidation preference per share

     $    25.00     $ 25.00                          

Average market value.

     $    23.88     $ 24.98                          

Asset coverage per share

     $  103.12     $ 106.21                          

Asset Coverage (l)

     412     425     668     685     786     668

 

 

Based on net asset value per share, adjusted for reinvestment of distributions of net asset value on the ex-dividend date, including the effect of shares pursuant to the 2014 rights offering, assuming full subscription by shareholders. Total return for a period of less than one year is not annualized.

††

Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan including the effect of shares issued pursuant to the 2014 rights offering, assuming full subscription by shareholders. Total return for a period of less than one year is not annualized.

*

Based on year to date book income. Amounts are subject to change and recharacterization at year end.

(a)

Calculated based on average common shares outstanding on the record dates throughout the years.

(b)

Amount represents less than $0.005 per share.

(c)

Annualized.

(d)

Ratio of operating expenses to average net assets including liquidation value of preferred shares before fee waived/fee reduction for the six months ended June 30, 2018 and the years ended December 31, 2017, 2016, 2015, 2014, and 2013 would have been 1.22%, 1.23%, 1.27%, 1.26%, 1.37%, and 1.29%, respectively.

(e)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the six months ended June 30, 2018 and the years ended December 31, 2017, 2016, and 2015, there was no impact on the expense ratios.

(f)

During the year ended December 31, 2016, the fund received a one time reimbursement of custody expenses paid in prior years. Had such reimbursement been included in this period, the annualized expense ratios would have been 1.32% attributable to common shares before fees waived, 1.32% attributable to common shares net of advisory fee reduction, 1.13% including liquidation value of preferred shares before fees waived, and 1.13% including liquidation value of preferred shares net of advisory fee reduction.

(g)

Ratio of operating expenses to average net assets including liquidation value of preferred shares net of advisory fee reduction for the six months ended June 30, 2018 and the years ended December 31, 2017, 2016, 2015, 2014, and 2013 would have been 1.15%, 1.23%, 1.27%, 1.13%, 1.29%, and 1.29%, respectively.

(h)

Based on weekly prices.

(i)

Asset coverage per share is calculated by combining all series of preferred shares.

(j)

Actual number of shares outstanding is 10.

(k)

Since February 2008, the weekly auctions have failed. Holders that have submitted orders have not been able to sell any or all of their shares in the auction.

(l)

Asset coverage is calculated by combining all series of preferred shares.

See accompanying notes to financial statements.

 

11


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited)

 

 

1. Organization. The Gabelli Multimedia Trust Inc. (the “Fund”) is a non-diversified closed-end management investment company organized as a Maryland corporation on March 31, 1994 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund commenced investment operations on November 15, 1994.

The Fund’s investment objective is long term growth of capital. The Fund will invest at least 80% of its assets, under normal market conditions, in common stock and other securities, including convertible securities, preferred stock, options, and warrants of companies in the telecommunications, media, publishing, and entertainment industries (the “80% Policy”). The 80% Policy may be changed without shareholder approval. The Fund will provide shareholders with notice at least sixty days prior to the implementation of any change in the 80% Policy.

2. Significant Accounting Policies. 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 financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

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

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt obligations 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, 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. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market quotations are readily available will be valued by quotations received from a pricing service or, if no quotations are available from a pricing service, by quotations obtained from one or more dealers in the instrument in question by the Adviser.

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.

 

12


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

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).

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 by inputs used to value the Fund’s investments as of June 30, 2018 is as follows:

 

     Valuation Inputs     
     Level 1
Quoted Prices
   Level 2 Other Significant
Observable Inputs
   Level 3 Significant
Unobservable Inputs
   Total Market Value
at 6/30/18

INVESTMENTS IN SECURITIES:

                   

ASSETS (Market Value):

                   

Common Stocks:

                   

Copyright/Creativity Companies

                   

Computer Software and Services

     $ 32,061,907        $         2,280               $  32,064,187

Publishing

       6,822,503        87,908        $  78,312        6,988,723

Other Industries (a)

       70,155,926                      70,155,926

Distribution Companies

                   

Entertainment

       30,911,073        576,949               31,488,022

Financial Services

       7,084,658               2,660        7,087,318

Real Estate

       776,480               99        776,579

Telecommunications: National

       13,337,222        42,038               13,379,260

Telecommunications: Regional

       7,681,015        143,625               7,824,640

Wireless Communications

       13,777,351               31,295        13,808,646

Other Industries (a)

       85,039,824                      85,039,824

Total Common Stocks

       267,647,959        852,800        112,366        268,613,125

Closed-End Funds

       11,018,105                      11,018,105

Preferred Stocks (a)

       132,825                      132,825

Rights (a)

              5,781        0        5,781

Warrants (a)

       5,074        2             5,076

U.S. Government Obligations

              9,905,872               9,905,872

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $ 278,803,963        $10,764,455        $112,366        $289,680,784

 

(a)

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

During the six months ended June 30, 2018, the Fund had transfers of $190,690 or 0.08%, $69,298 or 0.03%, and $109,367 or 0.05% of net assets as of December 31, 2017 from Level 1 to Level 2, Level 1 to Level 3, and Level 2 to Level 1, respectively. Transfers from Level 1 to Level 2 and Level 1 to Level 3 are due to decreases in market activity, e.g., frequency of trades, which resulted in a decrease in available market inputs to determine price. Transfers from Level 2 to Level 1 are due to an increase in market activity, e.g., frequency

 

13


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

of trades, which resulted in an increase in available market inputs to determine price. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

      Balance
as of
12/31/17
   Accrued
discounts/
(premiums)
   Realized
gain/
(loss)
   Change in
unrealized
appreciation/
(depreciation)†
  Purchases    Sales   

Transfers
into

Level 3††

  

Transfers

out of

Level 3††

  

Balance

as of
06/30/18

  

Net change
in unrealized
appreciation/
depreciation
during the
period on
Level 3

investments

still held at
06/30/18†

INVESTMENTS IN SECURITIES:

                                                

ASSETS (Market Value):

                                                

Common Stocks (a)

     $ 54,358                    $ (11,290 )                   $ 69,298             $ 112,366      $ (11,290 )

Rights (a)

       0                                                        0       

TOTAL INVESTMENTS IN SECURITIES

     $ 54,358                    $ (11,290 )                   $ 69,298             $ 112,366      $ (11,290 )

 

 

(a)

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

Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations.

††

The Fund’s policy is to recognize transfers into and out of Level 3 as of the beginning of the reporting period.

The following tables summarize the valuation techniques used and unobservable inputs utilized to determine the value of certain of the Fund’s Level 3 investments as of June 30, 2018:

 

Description

  Balance at 06/30/18   Valuation Technique   Unobservable Input   Range

INVESTMENTS IN SECURITIES:

               

ASSETS (Market Value):

               

Common Stocks (a)

    $ 112,366       Last available closing Price/Spin-off       Discount Range       0%

Rights (a)

      0       Merger/Acquisition Price       Discount Range       0%
   

 

 

             

Total

    $ 112,366            
   

 

 

             

 

(a)

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

 

Unobservable Input

  

Impact to Value if Input Increases

  

Impact to Value if Input Decreases

Discount Range

   Decrease    Increase

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 are 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

 

14


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

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 or preferred equities, warrants, options, rights, or 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 which are restricted as to transfer. When fair valuing a security, factors to consider include 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 backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired Funds”) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2018, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was approximately 1 basis point.

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.

 

15


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

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 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 June 30, 2018, the Fund held no restricted securities.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

Distributions to shareholders of the Fund’s 6.00% Series B Cumulative Preferred Stock (“Series B Preferred”), Series C Preferred Stock (“Series C Preferred”), and Series E Cumulative Preferred Stock (“Series E Preferred” and together with Series B Preferred and Series C Preferred “Preferred Stock”) are accrued on a daily basis and are determined as described in Note 5.

Under the Fund’s current distribution policy related to common shares, the Fund declares and pays quarterly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the calendar year. Pursuant to this policy, distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. The Fund’s current distribution policy may restrict the Fund’s ability to payout all of its net realized long term capital gains as a Capital Gain Dividend. Distributions sourced from paid-in capital should not be considered the current yield or the total return from an investment in the Fund.

 

16


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

The tax character of distributions paid during the year ended December 31, 2017 was follows:

 

     Common      Preferred  

Distributions paid from:

     

Ordinary income (inclusive of short term capital gains)

   $ 845,004      $ 89,450  

Long term capital gains

     17,673,563        1,870,879  

Return of capital

     2,864,287         
  

 

 

    

 

 

 

Total distributions paid

   $ 21,382,854      $ 1,960,329  
  

 

 

    

 

 

 

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

The following summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2018:

 

     Cost    Gross
Unrealized
Appreciation
   Gross
Unrealized
Depreciation
   Net Unrealized
Appreciation

Investments

     $ 204,198,263      $ 97,182,314      $ (11,699,793 )      $ 85,482,521

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the six months ended June 30, 2018, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2018, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Fund’s average weekly net assets including the liquidation value of preferred stock. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

The Adviser has agreed to reduce the management fee on the incremental assets attributable to the Series B and Series C Preferred Stock if the total return of the NAV of the common shares of the Fund, including distributions and advisory fee subject to reduction, does not exceed the stated dividend rate on each particular series of the Preferred Stock for the year. For the six months ended June 30, 2018, the Fund’s total return on the NAV of the common shares did not exceed the stated dividend rates of each particular series of Series B Preferred and Series C Preferred Stock. Thus, advisory fees with respect to the liquidation value of the Preferred Stock was reduced by $99,304.

 

17


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

During the six months ended June 30, 2018, the Fund paid $4,237 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

During the six months ended June 30, 2018, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $1,427.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the six months ended June 30, 2018, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although officers may receive incentive based variable compensation from affiliates of the Adviser). During the six months ended June 30, 2018, the Fund accrued $44,192 in payroll expenses in the Statement of Operations.

The Fund pays each Director who is not considered an affiliated person an annual retainer of $6,000 plus $500 for each Board meeting attended and each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended. The Audit Committee Chairman receives an annual fee of $3,000, the Nominating Committee Chairman and the Lead Director each receives an annual fee of $2,000. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2018, other than short term securities and U.S. Government obligations, aggregated $20,670,580 and $17,344,716, respectively.

5. Capital. The Fund’s Articles of Incorporation permit the Fund to issue 196,750,000 shares of common stock (par value $0.001). The Board has authorized the repurchase of up to 1,950,000 shares on the open market when the shares are trading at a discount of 5% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six months ended June 30, 2018, the Fund did not repurchase any of its common shares. During the year ended December 31, 2017, the Fund repurchased and retired 27,910 of its common shares at an investment of $222,688 and an average discount of approximately 9.77% from its NAV.

 

18


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Transactions in common stock were as follows:

 

     Six Months Ended
June 30, 2018
(Unaudited)
     Year Ended
December 31, 2017
 
     Shares      Amount      Shares     Amount  

Net decrease from repurchase of common shares

                   (27,910   $ (222,688

Net increase in net assets from common shares issued upon reinvestment of distributions

     131,753      $ 1,192,177        63,317       588,227  
  

 

 

    

 

 

    

 

 

   

 

 

 

Net increase

     131,753      $ 1,192,177        35,407     $ 365,539  
  

 

 

    

 

 

    

 

 

   

 

 

 

The Fund has an effective shelf registration authorizing the offering of an additional $400 million of common or preferred shares. As of June 30, 2018, after considering the Series E offering, the Fund has approximately $350 million available for issuance under the current shelf registration.

On September 26, 2017, the Fund issued 2,000,000 shares of 5.125% Series E Cumulative Preferred Shares (“Series E Preferred”), receiving $48,188,128, after the deduction of offering expenses of $236,872 and underwriting fees of $1,575,000. The liquidation value of the Series E Preferred is $25 per share. The Series E Preferred has an annual dividend rate of 5.125%. The Series E Preferred is noncallable before September 26, 2022.

The Fund’s Articles of Incorporation authorize the issuance of up to 3,001,000 shares of $0.001 par value Preferred Stock. The 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 Preferred Stock are cumulative. The Fund is required by the 1940 Act and by the Articles Supplementary to meet certain asset coverage tests with respect to the Preferred Stock. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Series B, Series C, and Series E Preferred, at redemption prices of $25, $25,000, and $25, respectively, per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed and variable rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

The Fund has the authority to purchase its auction rate preferred shares through negotiated private transactions. The Fund is not obligated to purchase any dollar amount or number of auction rate preferred shares, and the timing and amount of any auction rate preferred shares purchased will depend on market conditions, share price, capital availability, and other factors. The Fund is not soliciting holders to sell these shares nor recommending that holders offer them to the Fund. Any offers can be accepted or rejected in the Fund’s discretion.

For Series C Preferred Stock, the dividend rates, as set by the auction process that is generally held every seven days, are expected to vary with short term interest rates. Since February 2008, the number of shares of Series C Preferred Stock subject to bid orders by potential holders has been less than the number of shares of Series C Preferred Stock subject to sell orders. Holders that have submitted sell orders have not been able to sell any or all of the Series C Preferred Stock for which they have submitted sell orders. Therefore the weekly auctions have failed, and the dividend rate has been the maximum rate, which is 175% of the “AA” Financial

 

19


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Composite Commercial Paper Rate on the day of such auction. Existing Series C shareholders may submit an order to hold, bid, or sell such shares on each auction date, or trade their shares in the secondary market.

The Fund may redeem at any time, in whole or in part, the Series B and Series C Preferred Stock at their respective redemption prices. In addition, the Board has authorized the repurchase of Series B and Series E Preferred Stock in the open market at prices less than the $25 liquidation value per share. During the year ended December 31, 2017, the Fund redeemed and retired 590 shares of the Series C Preferred Stock, for a gain of $2,950,000. During the six months ended June 30, 2018 and the year ended December 31, 2017, the Fund did not repurchase or redeem any shares of Series B or Series E Preferred Stock.

The following table summarizes Cumulative Preferred Stock information:

 

Series    Issue Date      Authorized      Number of Shares
Outstanding at
06/30/18
     Net Proceeds      2018 Dividend
Rate Range
   Dividend
Rate at
06/30/18
  Accrued
Dividends at
06/30/18
 

B 6.000%

     March 31, 2003        1,000,000        791,014              $ 24,009,966        Fixed Rate    6.000%     $16,480      

C Auction Rate

     March 31, 2003        1,000        10                24,547,465        2.328% to 3.344%    3.239%     67      

E 5.125%

     September 26, 2017        2,000,000        2,000,000                48,192,240        Fixed Rate    5.125%     35,590      

The holders of Preferred Stock generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common stock as a single class. The holders of Preferred Stock voting together as a single class also have the right currently to elect two Directors and under certain circumstances are entitled to elect a majority of the Board. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred stock, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred stock, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred stock and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

6. Industry Concentration. Because the Fund primarily invests in common stocks and other securities of foreign and domestic companies in the telecommunications, media, publishing, and entertainment industries, its portfolio may be subject to greater risk and market fluctuations than a portfolio of securities representing a broad range of investments.

7. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

8. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

20


The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

Shareholder Meeting – May 14, 2018 – Final Results

The Fund’s Annual Meeting of Shareholders was held on May 14, 2018 in Greenwich, Connecticut. At that meeting, common and preferred shareholders, voting together as a single class, elected Kuni Nakamura and Anthony R. Pustorino as Directors of the Fund. A total of 23,164,091 votes and 20,101,990 votes were cast in favor of these Directors, and a total of 571,943 votes and 3,634,044 votes were withheld for these Directors, respectively.

In addition, preferred shareholders, voting as a separate class, elected James P. Conn, as a Director of the Fund. A total of 2,104,664 votes were cast in favor of this Director and a total of 112,651 votes were withheld for this Director.

Mario J. Gabelli, Christopher J. Marangi, Anthony J. Colavita, Frank J. Fahrenkopf, Jr., Werner J. Roeder, and Salvatore J. Zizza continue to serve in their capacities as Directors of the Fund.

We thank you for your participation and appreciate your continued support.

 

21


The Gabelli Multimedia Trust Inc.

Board Consideration and Re-Approval of Advisory Agreement (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), contemplates that the Board of Directors (the “Board”) of The Gabelli Multimedia Trust Inc. (the “Fund”), including a majority of the Directors who have no direct or indirect interest in the investment advisory agreement and are not “interested persons” of the Fund, as defined in the 1940 Act (the “Independent Board Members”), are required to annually review and re-approve the terms of the Fund’s existing investment advisory agreement and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six month period covered by this report, the Advisory Agreement (the “Advisory Agreement”) with Gabelli Funds, LLC (the “Adviser”) for the Fund.

More specifically, at a meeting held on May 15, 2018, the Board, including the Independent Board Members meeting in executive session with their counsel, considered the factors and reached the conclusions described below relating to the selection of the Adviser and the re-approval of the Advisory Agreement.

1) The nature, extent and quality of services provided by the Adviser.

The Board Members reviewed in detail the nature and extent of the services provided by the Adviser under the Advisory Agreement and the quality of those services over the past year. The Board noted that these services included managing the investment program of the Fund, including the purchase and sale of portfolio securities, as well as the provision of general corporate services. The Board Members considered that the Adviser also provided, at its expense, office facilities for use by the Fund and supervisory personnel responsible for supervising the performance of administrative, accounting and related services for the Fund, including monitoring to assure compliance with stated investment policies and restrictions under the 1940 Act and related securities regulation. The Board Members noted that, in addition to managing the investment program for the Fund, the Adviser provided certain non-advisory and compliance services, including services for the Fund’s Rule 38a-1 compliance program.

The Board noted that the Adviser had engaged, at its expense, Bank of New York Mellon (“BNY”) to assist it in performing certain of its administrative functions. The Board Members concluded that the nature and extent of the services provided was reasonable and appropriate in relation to the advisory fee, that the level of services provided by the Adviser, either directly or through BNY, had not diminished over the past year, and that the quality of service continued to be high.

The Board Members reviewed the personnel responsible for providing services to the Fund and concluded, based on their experience and interaction with the Adviser, that (i) the Adviser was able to retain quality personnel, (ii) the Adviser and its agents exhibited a high level of diligence and attention to detail in carrying out their advisory and administrative responsibilities under the Advisory Agreement, (iii) the Adviser was responsive to requests of the Board, (iv) the scope and depth of the Adviser’s resources was adequate, and (v) the Adviser had kept the Board apprised of developments relating to the Fund and the industry in general. The Board Members also focused on the Adviser’s reputation and long standing relationship with the Fund. The Board Members also believed that the Adviser had devoted substantial resources and made substantial commitments to address new regulatory compliance requirements applicable to the Fund.

2) The performance of the Fund and the Adviser.

The Board Members reviewed the investment performance of the Fund, on an absolute basis, as compared to its Broadridge peer group of other SEC registered open-end and closed-end funds. The Board Members

 

22


The Gabelli Multimedia Trust Inc.

Board Consideration and Re-Approval of Advisory Agreement (Unaudited) (Continued)

considered the Fund’s one, three, five and ten year average annual total return for the periods ended March 31, 2018, but placed greater emphasis on the Fund’s longer term performance. The peer group considered by the Board Members was developed by Broadridge and was comprised of other selected closed-end core, growth and value equity funds (the “Performance Peer Group”). The Board considered these comparisons helpful in their assessment as to whether the Adviser was obtaining for the Fund’s shareholders the total return performance that was available in the marketplace, given the Fund’s objectives, strategies, limitations, and restrictions. In reviewing the performance of the Fund, the Board Members noted that the Fund’s performance was above the median for the one-year and five-year periods, and below the median for the three- and ten-year periods. The Board Members concluded that the Fund’s performance was reasonable in comparison to that of the Performance Peer Group.

In connection with its assessment of the performance of the Adviser, the Board Members considered the Adviser’s financial condition and whether it had the resources necessary to continue to carry out its functions under the Advisory Agreement. The Board Members concluded that the Adviser had the financial resources necessary to continue to perform its obligations under the Advisory Agreement and to continue to provide the high quality services that it has provided to the Fund to date.

3) The cost of the advisory services and the profits to the Adviser and its affiliates from the relationship with the Fund.

In connection with the Board Members’ consideration of the cost of the advisory services and the profits to the Adviser and its affiliates from the relationship with the Fund, the Board Members considered a number of factors. First, the Board Members compared the level of the advisory fee for the Fund against a comparative Broadridge expense peer group comprised of other selected closed-end core, growth and value equity funds (“Expense Peer Group”). The Board Members also considered comparative non-management fee expenses and comparative total fund expenses of the Fund and the Expense Peer Group. The Board Members considered this information as useful in assessing whether the Adviser was providing services at a cost that was competitive with other similar funds. In assessing this information, the Board Members considered the comparative contract rates. The Board Members noted that the Fund’s advisory fee and total expense ratios were higher than average when compared to those of the Expense Peer Group.

The Board Members also reviewed the fees charged by the Adviser to provide similar advisory services to other registered investment companies or accounts with similar investment objectives, noting that in some cases the fees charged by the Adviser were the same, or lower, than the fees charged to the Fund.

The Board Members also considered an analysis prepared by the Adviser of the estimated profitability to the Adviser of its relationship with the Fund and reviewed with the Adviser its cost allocation methodology in connection with its profitability. In this regard, the Board Members reviewed Pro-forma Income Statements of the Adviser for the year ended December 31, 2017. The Board Members considered one analysis for the Adviser as a whole, and a second analysis for the Adviser with respect to the Fund. With respect to the Fund analysis, the Board Members received an analysis based on the Fund’s average net assets during the period as well as a pro-forma analysis of profitability at higher and lower asset levels. The Board Members concluded that the profitability of the Fund to the Adviser under either analysis was not excessive.

 

23


The Gabelli Multimedia Trust Inc.

Board Consideration and Re-Approval of Advisory Agreement (Unaudited) (Continued)

4) The extent to which economies of scale will be realized as the Fund grows and whether fee levels reflect those economies of scale.

With respect to the Board Members’ consideration of economies of scale, the Board Members discussed whether economies of scale would be realized by the Fund at higher asset levels. The Board Members also reviewed data from the Expense Peer Group to assess whether the Expense Peer Group funds had advisory fee breakpoints and, if so, at what asset levels. The Board Members also assessed whether certain of the Adviser’s costs would increase if asset levels rise. The Board Members noted the Fund’s current size and concluded that under foreseeable conditions, they were unable to assess at this time whether economies of scale would be realized by the Fund if it were to experience significant asset growth. In the event there were to be significant asset growth in the Fund, the Board Members determined to reassess whether the advisory fee appropriately took into account any economies of scale that had been realized as a result of that growth.

5) Other Factors

In addition to the above factors, the Board Members also discussed other benefits received by the Adviser from their management of the Fund. The Board Members considered that the Adviser does use soft dollars in connection with its management of the Fund.

Based on a consideration of all these factors in their totality, the Board Members, including all of the Independent Board Members, determined that the Fund’s advisory fee was fair and reasonable with respect to the quality of services provided and in light of other factors described above that the Board deemed relevant. Accordingly, the Board determined to approve the continuation of the Fund’s Advisory Agreement. The Board Members based their decision on the evaluation of all these factors and did not consider any one factor as all-important or controlling.

 

24


AUTOMATIC DIVIDEND REINVESTMENT

AND VOLUNTARY CASH PURCHASE PLANS

Enrollment in the Plan

It is the policy of The Gabelli Multimedia Trust Inc. (the “Fund”) to automatically reinvest dividends payable to common shareholders. As a “registered” shareholder, you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit shares of common stock 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 Fund. Plan participants may send their stock certificates to Computershare Trust Company, N.A. (“Computershare”) 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 Multimedia Trust Inc.

c/o Computershare

P.O. Box 505000

Louisville, KY 40233

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 or requesting a copy of the terms of the Plan may contact Computershare at (800) 336-6983.

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 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 Fund’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 Fund’s common stock. The valuation date is the dividend or distribution payment date or, if that date is not a New York Stock Exchange (“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 Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, Computershare will buy common stock in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except that Computershare will endeavor to terminate purchases in the open market and cause the Fund 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.

Voluntary Cash Purchase Plan

The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.

Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to Computershare for investments in the Fund’s shares at the then current market price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. Computershare 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 Computershare, P.O. Box 505000, Louisville, KY 40233 such that Computershare receives such payments approximately 10 days before the 1st and 15th of the month. 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 Computershare at least 48 hours before such payment is to be invested.

Shareholders wishing to liquidate shares held at Computershare 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.

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 Fund.

The Fund 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 Computershare on at least 90 days written notice to participants in the Plan.

 

25


THE GABELLI MULTIMEDIA TRUST INC.

AND YOUR PERSONAL PRIVACY

Who are we?

The Gabelli Multimedia Trust Inc. (the “Fund”) is a closed-end management investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory services for a variety of clients.

What kind of non-public information do we collect about you if you become a Fund shareholder?

When you purchase shares of the Fund on the New York Stock Exchange, you have the option of registering directly with our transfer agent in order, for example, to participate in our dividend reinvestment plan.

 

 

Information you give us on your application form. This could include your name, address, telephone number, social security number, bank account number, and other information.

 

 

Information about your transactions with us. This would include information about the shares that you buy or sell; it may also include information about whether you sell or exercise rights that we have issued from time to time. If we hire someone else to provide services — like a transfer agent — we will also have information about the transactions that you conduct through them.

What information do we disclose and to whom do we disclose it?

We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.

What do we do to protect your personal information?

We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the Fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.



 


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 Executive Chairman 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 degree with honors from Columbia Business School.

 

 

 

 

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.

Executive Chairman,

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

Former Medical Director,

Lawrence Hospital

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

  

 

OFFICERS

 

Bruce N. Alpert

President

 

John C. Ball

Treasurer

 

Agnes Mullady

Vice President

 

Andrea R. Mango

Secretary & Vice President

 

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 Q2/2018

LOGO

 

 


Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.


Item 8. Portfolio Managers of Closed-End Management Investment Companies.

There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES

 

        Period

 

 

  (a) Total Number
of Shares (or Units)
      Purchased

 

  

(b) Average Price Paid per
          Share (or  Unit)

 

  

(c) Total Number of Shares
    (or Units) Purchased as
           Part of Publicly
      Announced Plans or    
               Programs

 

 

  (d) Maximum Number (or
Approximate Dollar Value)
    of Shares  (or Units) that
     May Yet Be Purchased
        Under the Plans or
                Programs

 

Month #1
01/01/2018 through 01/31/2018
 

Common – N/A

 

Preferred Series B – N/A

  

Common – N/A

 

Preferred Series B – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Common – 24,343,619

 

Preferred Series B – 791,014

Preferred Series E – 2,000,000

 

Month #2
02/01/2018 through 02/28/2018
 

Common – N/A

 

Preferred Series B – N/A

  

Common – N/A

 

Preferred Series B – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Common – 24,343,619

 

Preferred Series B – 791,014

Preferred Series E – 2,000,000

 

Month #3
03/01/2018 through 03/31/2018
 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – 24,409,746

 

Preferred Series B – 791,014

 

Preferred Series E – 2,000,000

 

Month #4
04/01/2018 through 04/30/2018
 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

  

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – 24,409,746

 

Preferred Series B – 791,014

 

Preferred Series E – 2,000,000

 


Month #5
05/01/2018 through 05/31/2018
 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – 24,409,746

 

Preferred Series B – 791,014

 

Preferred Series E – 2,000,000

 

Month #6
06/01/2018 through 06/30/2018
 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – 24,475,372

 

Preferred Series B – 791,014

 

Preferred Series E – 2,000,000

 

Total  

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

Common – N/A

 

Preferred Series B – N/A

 

Preferred Series E – N/A

 

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 7.5% or more from the net asset value of the shares. Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.

c.

The expiration date (if any) of each plan or program – The Fund’s repurchase plans are ongoing.

d.

Each plan or program that has expired during the period covered by the table – The Fund’s repurchase plans are ongoing.

e.

Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. – The Fund’s repurchase plans are ongoing.


Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

 

(a)(1)

Not applicable.

 

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(a)(3)

Not applicable.

 

(a)(4)

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 Multimedia Trust Inc.                                                            
By (Signature and Title)*    /s/ Bruce N. Alpert                                                                                 

 Bruce N. Alpert, Principal Executive Officer

Date    8/27/2018                                                                                                                           

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    8/27/2018                                                                                                                           
By (Signature and Title)*    /s/ John C. Ball                                                                                        

 John C. Ball, Principal Financial Officer and Treasurer

Date    8/27/2018                                                                                                                           

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