N-Q 1 d21420dnq.htm GABELLI MULTIMEDIA TRUST INC. Gabelli Multimedia Trust Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-08476                    

                             The Gabelli Multimedia Trust Inc.                            

(Exact name of registrant as specified in charter)

One Corporate Center

                         Rye, New York 10580-1422                        

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                                   Rye, New York 10580-1422                                  

(Name and address of agent for service)

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

Date of fiscal year end:  December 31

Date of reporting period:  September 30, 2015

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

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.


The Gabelli Multimedia Trust Inc.

Third Quarter Report — September 30, 2015

(Y)our Portfolio Management Team

 

LOGO

To Our Shareholders,

For the quarter ended September 30, 2015, the net asset value (“NAV”) total return of The Gabelli Multimedia Trust Inc. (the “Fund”) was (12.1)%, compared with a total return of (8.5)% for the Morgan Stanley Capital International (“MSCI”) World Index. The total return for the Fund’s publicly traded shares was (15.6)%. The Fund’s NAV per share was $8.33, while the price of the publicly traded shares closed at $7.53 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2015.

Comparative Results

 

 

Average Annual Returns through September 30, 2015 (a) (Unaudited)

  Since
   

Quarter

 

1 Year

 

5 Year

 

10 Year

 

Inception
(11/15/94)

Gabelli Multimedia Trust Inc.

                   

NAV Total Return (b)

      (12.11 )%       (4.66 )%       13.18 %       4.87 %       8.37 %

Investment Total Return (c)

      (15.61 )       (10.22 )       12.71         5.69         8.27  

Standard & Poor’s 500 Index

      (6.44 )       (0.61 )       13.34         6.80         9.23 (d)

MSCI World Index

      (8.45 )       (5.09 )       8.29         4.73         6.48 (d)
  (a)

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Standard & Poor’s 500 and MSCI World Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the MSCI World Index. You cannot invest directly in an index.

 
  (b)

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

 
  (c)

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

 
  (d)

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

 


The Gabelli Multimedia Trust Inc.

Schedule of Investments — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS — 90.7%   
  DISTRIBUTION COMPANIES — 56.2%   
  Broadcasting — 9.0%   
  10,000      Asahi Broadcasting Corp.    $ 64,769   
  60,000      CBS Corp., Cl. A, Voting      2,694,000   
  6,400      Chubu-Nippon Broadcasting Co. Ltd.      32,596   
  16,000      Cogeco Inc.      639,640   
  2,000      Corus Entertainment Inc., OTC, Cl. B      21,160   
  15,000      Corus Entertainment Inc., Toronto, Cl. B      158,599   
  34,000      Discovery Communications Inc., Cl. A†      885,020   
  130,000      Discovery Communications Inc., Cl. C†      3,157,700   
  81,000      Grupo Radio Centro SAB de CV, Cl. A†      74,508   
  140,000      ITV plc      520,989   
  4,550      Lagardere SCA      125,783   
  11,500      Liberty Broadband Corp., Cl. A†      591,560   
  32,739      Liberty Broadband Corp., Cl. C†      1,675,255   
  43,000      Liberty Media Corp., Cl. A†      1,535,960   
  84,000      Liberty Media Corp., Cl. C†      2,894,640   
  4,000      M6 Metropole Television SA      76,431   
  20,936      Media General Inc.†      292,895   
  68,566      Media Prima Berhad      18,718   
  36,000      Nippon Television Holdings Inc.      577,969   
  4,650      NRJ Group†      43,386   
  25,000      Pandora Media Inc.†      533,500   
  3,500      RTL Group SA      301,493   
  74,000      Salem Media Group Inc.      452,880   
  13,000      Sinclair Broadcast Group Inc., Cl. A      329,160   
  23,000      Societe Television Francaise 1      322,539   
  50,000      Starz, Cl. A†      1,867,000   
  17,000      TEGNA Inc.      380,630   
  45,000      Television Broadcasts Ltd.      149,805   
  75,000     

Tokyo Broadcasting System Holdings Inc.

     999,041   
  240,000      TV Azteca SA de CV      37,906   
  27,000      UTV Media plc      69,639   
    

 

 

 
       21,525,171   
    

 

 

 
  Business Services — 0.8%   
  3,686      Contax Participacoes SA      2,222   
  1,000      Convergys Corp.      23,110   
  6,000      Impellam Group plc      73,066   
  21,500      McGraw Hill Financial Inc.      1,859,750   
  4,000      Monster Worldwide Inc.†      25,680   
  400      Qumu Corp.†      1,568   
    

 

 

 
       1,985,396   
    

 

 

 
  Cable — 14.7%   
  12,000      Altice NV, Cl. A†      251,081   
  4,000      Altice NV, Cl. B†      89,236   
  35,000      AMC Networks Inc., Cl. A†      2,560,950   
  3,000      Cable One Inc.†      1,258,260   
  195,000      Cablevision Systems Corp., Cl. A      6,331,650   
  6,500      Charter Communications Inc., Cl. A†      1,143,025   
  35,500      Cogeco Cable Inc.      1,715,811   

Shares

        

Market

Value

 
  8,000      Comcast Corp., Cl. A    $ 455,040   
  56,000      Comcast Corp., Cl. A, Special      3,205,440   
  30,000      Liberty Global plc, Cl. A†      1,288,200   
  136,000      Liberty Global plc, Cl. C†      5,578,720   
  1,500      Liberty Global plc LiLAC, Cl. A†      50,535   
  7,000      Liberty Global plc LiLAC, Cl. C†      239,680   
  122,690     

Rogers Communications Inc., New York, Cl. B

     4,230,351   
  19,310     

Rogers Communications Inc., Toronto, Cl. B

     665,323   
  24,000     

Scripps Networks Interactive Inc., Cl. A

     1,180,560   
  11,000     

Shaw Communications Inc., New York, Cl. B

     213,400   
  78,000     

Shaw Communications Inc., Toronto, Cl. B

     1,510,319   
  5,800      Sky plc, ADR      367,778   
  16,500      Time Warner Cable Inc.      2,959,605   
    

 

 

 
       35,294,964   
    

 

 

 
  Consumer Services — 3.2%   
  4,000      Bowlin Travel Centers Inc.†      5,760   
  3,000      Expedia Inc.      353,040   
  13,000      H&R Block Inc.      470,600   
  18,000      IAC/InterActiveCorp.      1,174,860   
  105,000     

Liberty Interactive Corp. QVC Group, Cl. A†

     2,754,150   
  17,000      Liberty TripAdvisor Holdings Inc., Cl. A†      376,890   
  41,814      Liberty Ventures, Cl. A†      1,687,195   
  18,000      The ADT Corp.      538,200   
  45,000      TiVo Inc.†      389,700   
    

 

 

 
       7,750,395   
    

 

 

 
  Diversified Industrial — 0.6%   
  16,000      Bouygues SA      567,285   
  3,000      Fortune Brands Home & Security Inc.      142,410   
  22,000      Jardine Strategic Holdings Ltd.      590,480   
  3,000      Malaysian Resources Corp. Berhad      805   
    

 

 

 
       1,300,980   
    

 

 

 
  Electronics — 0.3%   
  19,000      Dolby Laboratories Inc., Cl. A      619,400   
  6,000      IDI Inc.†      44,400   
    

 

 

 
       663,800   
    

 

 

 
  Entertainment — 6.7%   
  22,000      Gogo Inc.†      336,160   
  259,500      Grupo Televisa SAB, ADR      6,752,190   
  24,500      Naspers Ltd., Cl. N      3,059,579   
  700      Netflix Inc.†      72,282   
  4,000      Reading International Inc., Cl. A†      50,680   
  5,300      Reading International Inc., Cl. B†      68,900   
  5,000      Regal Entertainment Group, Cl. A      93,450   
  88,000      Sky plc      1,389,789   
  17,000      Take-Two Interactive Software Inc.†      488,410   
  52,000      The Madison Square Garden Co., Cl. A†      3,751,280   
    

 

 

 
       16,062,720   
    

 

 

 
  Equipment — 1.4%   
  13,000      American Tower Corp.      1,143,740   
 

 

See accompanying notes to schedule of investments.

 

2


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
  DISTRIBUTION COMPANIES (Continued)   
  Equipment (Continued)   
  3,600      Amphenol Corp., Cl. A    $ 183,456   
  87,000      Corning Inc.      1,489,440   
  2,000      Furukawa Electric Co. Ltd.      3,134   
  8,000      QUALCOMM Inc.      429,840   
    

 

 

 
       3,249,610   
    

 

 

 
  Financial Services — 2.3%   
  15,000      BCB Holdings Ltd.†      1,248   
  36,500      Kinnevik Investment AB, Cl. A      1,050,526   
  44,000      Kinnevik Investment AB, Cl. B      1,255,874   
  7,000      LendingTree Inc.†      651,210   
  78,000      PayPal Holdings Inc.†      2,421,120   
  15,000      Waterloo Investment Holdings Ltd.†      600   
    

 

 

 
       5,380,578   
    

 

 

 
  Food and Beverage — 0.1%   
  2,994      Pernod Ricard SA      301,698   
    

 

 

 
  Retail — 1.1%   
  200      Amazon.com Inc.†      102,378   
  34,000      Best Buy Co. Inc.      1,262,080   
  5,000      FTD Companies Inc.†      149,000   
  14,000      HSN Inc.      801,360   
  7,000      Outerwall Inc.      398,510   
    

 

 

 
         2,713,328   
    

 

 

 
  Satellite — 2.9%   
  1,000     

Asia Satellite Telecommunications Holdings Ltd.

     1,554   
  45,000      DigitalGlobe Inc.†      855,900   
  59,000      DISH Network Corp., Cl. A†      3,442,060   
  30,000      EchoStar Corp., Cl. A†      1,290,900   
  4,000      Intelsat SA†      25,720   
  45,000      Iridium Communications Inc.†      276,750   
  15,400      Loral Space & Communications Inc.†      725,032   
  250,000      PT Indosat Tbk†      63,993   
  3,000      SKY Perfect JSAT Holdings Inc.      14,029   
  2,000      ViaSat Inc.†      128,580   
  17,000      Videocon d2h Ltd., ADR†      164,050   
    

 

 

 
       6,988,568   
    

 

 

 
  Telecommunications: Long Distance — 2.7%   
  139,440      AT&T Inc.      4,542,955   
  2,020      BCE Inc., New York      82,739   
  1,074      BCE Inc., Toronto      43,958   
  22,000     

Philippine Long Distance Telephone Co., ADR

     1,015,520   
  200,000      Sprint Corp.†      768,000   
    

 

 

 
       6,453,172   
    

 

 

 
  Telecommunications: National — 4.8%   
  5,000      China Telecom Corp. Ltd., ADR      242,800   
  5,000      China Unicom Hong Kong Ltd., ADR      63,850   

Shares

        

Market

Value

 
  14,000      Communications Sales & Leasing Inc.†    $ 250,600   
  61,000      Deutsche Telekom AG, ADR      1,083,970   
  16,000      Elisa Oyj      540,288   
  3,605     

Hellenic Telecommunications Organization SA

     31,420   
  10,000      Inmarsat plc      148,552   
  36,600      Level 3 Communications Inc.†      1,599,054   
  1,000     

Magyar Telekom Telecommunications plc, ADR†

     7,070   
  10,000     

Nippon Telegraph & Telephone Corp.

     348,268   
  5,000      Oi SA, ADR†      3,380   
  1,000      Oi SA, ADR†      680   
  3,000      Orange SA, ADR      45,360   
  3,000     

PT Telekomunikasi Indonesia Persero Tbk, ADR

     106,950   
  6,000      Rostelecom PJSC, ADR      47,040   
  28,000      Swisscom AG, ADR      1,398,040   
  6,000      Telecom Argentina SA, ADR      87,360   
  385,000      Telecom Italia SpA†      474,082   
  50,000      Telecom Italia SpA      51,233   
  17,500      Telefonica Brasil SA, ADR      159,775   
  118,026      Telefonica SA, ADR      1,421,033   
  145,000      Telekom Austria AG      817,410   
  15,172      TeliaSonera AB      81,643   
  2,400      Telstra Corp. Ltd., ADR      47,160   
  48,000      Verizon Communications Inc.      2,088,480   
  82,000      VimpelCom Ltd., ADR      337,430   
    

 

 

 
         11,482,928   
    

 

 

 
  Telecommunications: Regional — 1.5%   
  85,000      Cincinnati Bell Inc.†      265,200   
  78,000      Telephone & Data Systems Inc.      1,946,880   
  8,000      TELUS Corp., New York      252,320   
  32,000      TELUS Corp., Toronto      1,008,318   
    

 

 

 
       3,472,718   
    

 

 

 
  Wireless Communications — 4.1%   
  55,000      America Movil SAB de CV, Cl. L, ADR      910,250   
  400,000      Cable & Wireless Communications plc      335,224   
  19,000      Global Telecom Holding SAE, GDR†      21,850   
  30,000      HC2 Holdings Inc.†      210,300   
  240,000      Jasmine International plc, Cl. F      33,062   
  26,500      Millicom International Cellular SA, SDR      1,655,864   
  90,000      NTT DoCoMo Inc.      1,495,186   
  19,000     

Orascom Telecom Media and Technology Holding SAE, GDR†

     11,400   
  25,000      ORBCOMM Inc.†      139,500   
  34,000      SK Telecom Co. Ltd., ADR      829,600   
  9,203      Tim Participacoes SA, ADR      86,968   
  52,000      T-Mobile US Inc.†      2,070,120   
  8,000      Turkcell Iletisim Hizmetleri A/S, ADR      69,440   
  29,000      United States Cellular Corp.†      1,027,470   
 

 

See accompanying notes to schedule of investments.

 

3


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
  DISTRIBUTION COMPANIES (Continued)   
  Wireless Communications (Continued)   
  32,000      Vodafone Group plc, ADR    $ 1,015,680   
    

 

 

 
       9,911,914   
    

 

 

 
  TOTAL DISTRIBUTION COMPANIES      134,537,940   
    

 

 

 
  COPYRIGHT/CREATIVITY COMPANIES — 34.5%   
  Business Services — 0.0%   
  2,500      Scientific Games Corp., Cl. A†      26,125   
  22,000      YuMe Inc.†      56,980   
    

 

 

 
       83,105   
    

 

 

 
  Business Services: Advertising — 2.0%   
  148,000     

Clear Channel Outdoor Holdings Inc., Cl. A†

     1,055,240   
  15,000      Harte-Hanks Inc.      52,950   
  6,000      Havas SA      48,875   
  9,357      JC Decaux SA      338,708   
  8,000      Lamar Advertising Co., Cl. A      417,440   
  1,500      Publicis Groupe SA      102,209   
  8,000      Ströeer SE      470,473   
  115,000      The Interpublic Group of Companies Inc.      2,199,950   
  7,000      Tremor Video Inc.†      13,020   
    

 

 

 
       4,698,865   
    

 

 

 
  Computer Hardware — 1.7%   
  37,000      Apple Inc.      4,081,100   
    

 

 

 
  Computer Software and Services — 11.0%   
  69,000      Activision Blizzard Inc.      2,131,410   
  54,000      Blucora Inc.†      743,580   
  80,000      EarthLink Holdings Corp.      622,400   
  78,000      eBay Inc.†      1,906,320   
  65,000      Electronic Arts Inc.†      4,403,750   
  51,000      Facebook Inc., Cl. A†      4,584,900   
  4,600      Google Inc., Cl. A†      2,936,502   
  2,807      Google Inc., Cl. C†      1,707,835   
  16,000      Guidance Software Inc.†      96,320   
  70,000      Internap Corp.†      429,100   
  10,000      InterXion Holding NV†      270,800   
  12,000      Microsoft Corp.      531,120   
  7,000      QTS Realty Trust Inc., Cl. A      305,830   
  40,000      RealD Inc.†      384,400   
  6,000      SoftBank Corp.      273,930   
  5,000      Twitter Inc.†      134,700   
  170,000      Yahoo! Inc.†      4,914,700   
    

 

 

 
       26,377,597   
    

 

 

 
  Consumer Products — 0.5%   
  2,200      Nintendo Co. Ltd.      367,874   
  35,000      Nintendo Co. Ltd., ADR†      733,880   
    

 

 

 
       1,101,754   
    

 

 

 

Shares

       

Market

Value

 
  Consumer Services — 0.0%   
  5,000      XO Group Inc.†   $ 70,650   
   

 

 

 
  Electronics — 2.4%   
  2,000      IMAX Corp.†     67,580   
  8,000      Intel Corp.     241,120   
  3,440      Koninklijke Philips NV     80,702   
  219,000      Sony Corp., ADR†     5,365,500   
   

 

 

 
      5,754,902   
   

 

 

 
  Entertainment — 9.1%   
  29,000      Ascent Capital Group Inc., Cl. A†     794,020   
  22,000      Crown Media Holdings Inc., Cl. A†     117,700   
  12,000      DreamWorks Animation SKG Inc., Cl. A†     209,400   
  50,000      Entravision Communications Corp., Cl. A     332,000   
  79,200      GMM Grammy Public Co. Ltd.†     25,094   
  25,000      Live Nation Entertainment Inc.†     601,000   
  15,500      Rentrak Corp.†     838,085   
  17,000      STV Group plc     110,582   
  16,000      The Walt Disney Co.     1,635,200   
  51,000      Time Warner Inc.     3,506,250   
  116,000      Twenty-First Century Fox Inc., Cl. A     3,129,680   
  77,000      Twenty-First Century Fox Inc., Cl. B     2,084,390   
  71,000      Universal Entertainment Corp.     1,246,414   
  55,500      Viacom Inc., Cl. A     2,456,985   
  185,000      Vivendi SA     4,367,995   
  18,000      World Wrestling Entertainment Inc., Cl. A     304,200   
   

 

 

 
      21,758,995   
   

 

 

 
  Hotels and Gaming — 5.0%   
  148,000      Boyd Gaming Corp.†     2,412,400   
  900      Churchill Downs Inc.     120,429   
  7,000      Gaming and Leisure Properties Inc.     207,900   
  10,000      Golden Entertainment Inc.†     90,500   
  4,200     

Greek Organization of Football Prognostics SA

    37,920   
  35,000      International Game Technology plc     536,550   
  15,000      Interval Leisure Group Inc.     275,400   
  225,000      Ladbrokes plc     325,732   
  38,000      Las Vegas Sands Corp.     1,442,860   
  156,250      Mandarin Oriental International Ltd.     238,281   
  33,000     

Melco Crown Entertainment Ltd., Cl. A, ADR

    454,080   
  22,000      MGM China Holdings Ltd.     25,463   
  6,000      Penn National Gaming Inc.†     100,680   
  84,000      Ryman Hospitality Properties Inc.     4,135,320   
  5,100     

Starwood Hotels & Resorts Worldwide Inc.

    339,048   
  26,000      Wynn Resorts Ltd.     1,381,120   
   

 

 

 
      12,123,683   
   

 

 

 
  Publishing — 2.8%   
  15,000      AH Belo Corp., Cl. A     73,950   
  20,000      Arnoldo Mondadori Editore SpA†     21,007   
  8,500      Gannett Co Inc.     125,205   
  2,600      Graham Holdings Co., Cl. B     1,500,200   
 

 

See accompanying notes to schedule of investments.

 

4


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

 

 

Shares

        

Market

Value

 
  COMMON STOCKS (Continued)   
 

COPYRIGHT/CREATIVITY COMPANIES (Continued)

  

  Publishing (Continued)   
  30,000      Il Sole 24 Ore SpA†    $ 22,963   
  800      John Wiley & Sons Inc., Cl. B      39,784   
  18,075      Journal Media Group Inc.      135,564   
  11,500      Meredith Corp.      489,670   
  5,263     

Nation International Edutainment Public Co. Ltd.

     415   
  1,000,000     

Nation Multimedia Group Public Co. Ltd., Cl. F

     40,777   
  30,000      News Corp., Cl. A      378,600   
  60,000      News Corp., Cl. B      769,200   
  8,000      Nielsen Holdings plc      355,760   
  974,000     

Post Publishing Public Co. Ltd.,
Cl. F†

     180,470   
  1,000      Scholastic Corp.      38,960   
  247,000      Singapore Press Holdings Ltd.      666,512   
  600      Spir Communication†      6,108   
  11,000      Telegraaf Media Groep NV†      50,751   
  65,996      The E.W. Scripps Co., Cl. A      1,166,149   
  40,000      The McClatchy Co., Cl. A†      38,800   
  1,000      Time Inc.      19,050   
  10,000      Tribune Media Co., Cl. A      356,000   
  16,363      UBM plc      120,201   
  3,000      Wolters Kluwer NV      92,220   
    

 

 

 
       6,688,316   
    

 

 

 
 

TOTAL COPYRIGHT/CREATIVITY COMPANIES

     82,738,967   
    

 

 

 
  TOTAL COMMON STOCKS      217,276,907   
    

 

 

 
  RIGHTS — 0.0%   
  DISTRIBUTION COMPANIES — 0.0%   
  Wireless Communications — 0.0%   
  25,000     

Leap Wireless International Inc., CVR,
expire 03/14/16†

     63,000   
    

 

 

 
  WARRANTS — 0.0%   
  DISTRIBUTION COMPANIES — 0.0%   
  Real Estate — 0.0%   
  1,000     

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

     27   
    

 

 

 
  Wireless Communications — 0.0%   
  117,647     

Jasmine International plc,
expire 07/05/20†

     4,149   
    

 

 

 
  TOTAL WARRANTS      4,176   
    

 

 

 

Principal
Amount

        

Market
Value

 
  U.S. GOVERNMENT OBLIGATIONS — 9.3%   
$ 22,280,000      U.S. Treasury Bills,   
      0.000% to 0.245%††,   
      10/01/15 to 03/31/16    $ 22,277,648   
    

 

 

 
  TOTAL INVESTMENTS — 100.0%
    (Cost $167,328,488)
   $ 239,621,731   
    

 

 

 
  Aggregate tax cost    $ 169,556,682   
    

 

 

 
  Gross unrealized appreciation    $ 89,715,794   
  Gross unrealized depreciation      (19,650,745
    

 

 

 
 

Net unrealized appreciation/depreciation

   $ 70,065,049   
    

 

 

 

 

Non-income producing security.

††

Represents annualized yield at date of purchase.

ADR

American Depositary Receipt

CVR

Contingent Value Right

GDR

Global Depositary Receipt

PJSC

Public Joint Stock Company

SDR

Swedish Depositary Receipt

 

     % of    
     Total   Market

Geographic Diversification

  

Investments

 

Value

North America

       75.5       $181,015,825   

Europe

       12.8          30,572,353   

Japan

       4.8          11,522,590   

Latin America

       4.1          9,764,376   

Asia/Pacific

       1.5          3,653,758   

South Africa

       1.3          3,059,579   

Africa/Middle East

       0.0          33,250   
    

 

 

     

 

 

 

Total Investments

       100.0       $239,621,731   
    

 

 

     

 

 

 

 

 

 

See accompanying notes to schedule of investments.

 

5


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited)

 

 

 

As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its schedule of investments.

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

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

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

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

   

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

   

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

   

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

 

6


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2015 is as follows:

 

     Valuation Inputs     
     Level 1
Quoted Prices
   Level 2 Other Significant
Observable Inputs
   Level 3 Significant
Unobservable Inputs
   Total Market Value
at 9/30/15

INVESTMENTS IN SECURITIES:

                   

ASSETS (Market Value):

                   

Common Stocks:

                   

Distribution Companies

                   

Broadcasting

       $  21,450,663          $       74,508                   $  21,525,171  

Financial Services

       5,378,730          1,248          $     600          5,380,578  

Wireless Communications

       9,878,852          33,062                   9,911,914  

Other Industries (a)

       97,720,277                            97,720,277  

Copyright/Creativity Companies

                   

Publishing

       6,427,285          261,031                   6,688,316  

Other Industries (a)

       76,050,651                            76,050,651  

Total Common Stocks

       216,906,458          369,849          600          217,276,907  

Rights (a)

                         63,000          63,000  

Warrants (a)

       27          4,149                   4,176  

U.S. Government Obligations

                22,277,648                   22,277,648  

TOTAL INVESTMENTS IN SECURITIES – ASSETS

       $216,906,485          $22,651,646          $63,600          $239,621,731  

 

(a)

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

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the period ended September 30, 2015. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

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

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in

 

7


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

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 include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

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

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

 

8


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

 

will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

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

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

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

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At September 30, 2015, the Fund held no restricted securities.

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

 

9


THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in 1977 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management 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. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.

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

 

 

 

 

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

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

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

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

 

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


THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, New York 10580-1422

t  800-GABELLI (800-422-3554)

f  914-921-5118

e  info@gabelli.com

    GABELLI.COM

 

 

 

DIRECTORS   OFFICERS

Mario J. Gabelli, CFA

Chairman &

Chief Executive Officer,

GAMCO Investors, 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

Senior Vice President,

G.research, LLC

 

Kuni Nakamura

President,

Advanced Polymer, Inc.

 

Anthony R. Pustorino

Certified Public Accountant,

Professor Emeritus,

Pace University

 

Werner J. Roeder, MD

Medical Director,

Lawrence Hospital

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

 

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary & Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

Carter W. Austin

Vice President & Ombudsman

 

Laurissa M. Martire

Vice President & Ombudsman

 

INVESTMENT ADVISER

 

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

 

CUSTODIAN

 

State Street Bank and Trust

Company

 

COUNSEL

 

Paul Hastings LLP

 

TRANSFER AGENT AND

REGISTRAR

 

Computershare Trust Company, N.A.

 

 

GGT Q3/2015

LOGO

 


Item 2. Controls and Procedures.

 

  (a)

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

 

  (b)

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

Item 3. Exhibits.

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


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

 

    The Gabelli Multimedia Trust Inc.

 

By (Signature and Title)*

 

  /s/ Bruce N. Alpert

 

      Bruce N. Alpert, Principal Executive Officer

 

Date

 

    11/25/2015

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

 

    11/25/2015

 

By (Signature and Title)*

 

  /s/ Agnes Mullady

 

       Agnes Mullady, Principal Financial Officer and Treasurer

 

Date

 

    11/25/2015

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