text:
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
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
(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, 2020
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.
Semiannual Report — June 30, 2020
(Y)our Portfolio Management Team
Mario J. Gabelli, CFA
Christopher J. Marangi
Co-Chief Investment Officer BA, Williams College
MBA, Columbia
To Our Stockholders,
For the six months ended June 30, 2020, the net asset value (NAV) total return of The Gabelli Multimedia Trust Inc. (the Fund) was (15.7)%, compared with a total return of (5.8)% for the Morgan Stanley Capital International (MSCI) World Index. The total return for the Fund's publicly traded shares was (12.3)%. The Fund's NAV per share was $6.14, while the price of the publicly traded shares closed at $6.50 on the New York Stock Exchange (NYSE). See page 2 for additional performance information.
Enclosed are the financial statements, including the schedule of investments, as of June 30, 2020.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's annual and semiannual stockholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund's website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive stockholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.
Comparative Results
Average Annual Returns through June 30, 2020 (a) (Unaudited) Since
Year to Date 1 Year 5 Year 10 Year 15 Year Inception
Gabelli Multimedia Trust Inc.
NAV Total Return (b)
(15.69 )% (11.19 )% 1.90 % 10.62 % 5.13 % 7.70 %
Investment Total Return (c)
(12.31 ) (7.83 ) 4.52 12.23 6.79 8.32
MSCI AC World Communication Services Index
0.54 9.26 4.17 7.88 6.59 N/ A
MSCI World Index
(5.77 ) 2.84 6.90 9.95 6.55 7.00 (d)
Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. The Fund's use of leverage may magnify the volatility of net asset value changes versus funds that do not employ leverage. 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 MSCI World Index is an unmanaged indicator of stock market performance. The MSCI AC World Communication Services Index is an unmanaged index that measures the performance of Communication Services from around the world. Dividends are considered reinvested. You cannot invest directly in an index.
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.
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.
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, 2020:
U.S. Government Obligations
Computer Software and Services
Telecommunications: National
Hotels and Gaming
Telecommunications: Regional
Business Services: Advertising
Diversified Industrial
Telecommunications: Long Distance
0.0 %*
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-PORT. Stockholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund's Form N-PORT 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.
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.
The Fund's Chief Executive Officer has certified to the New York Stock Exchange (NYSE) that, as of June 5, 2020, 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.
Schedule of Investments — June 30, 2020 (Unaudited)
COMMON STOCKS — 86.4%
DISTRIBUTION COMPANIES — 54.1%
Broadcasting — 8.0%
10,000 Asahi Broadcasting Group Holdings Corp. $ 42,567 $ 71,313
6,400 Chubu-Nippon Broadcasting Co. Ltd. 46,376 31,533
16,000 Cogeco Inc. 317,869 954,862
30,000 Corus Entertainment Inc., OTC, Cl. B 105,934 63,000
170,000 Corus Entertainment Inc., Toronto, Cl. B 713,046 358,132
34,000 Discovery Inc., Cl. A† 289,684 717,400
178,000 Discovery Inc., Cl. C† 3,848,439 3,428,280
30,000 Fox Corp., Cl. A. 1,246,500 804,600
27,000 Fox Corp., Cl. B. 1,059,531 724,680
81,000 Grupo Radio Centro SAB de CV, Cl. A†. 39,884 17,268
30,000 iHeartMedia Inc., Cl. A† 427,026 250,500
16,000 Informa plc. 176,942 93,259
350,000 ITV plc 903,888 323,875
4,000 Lagardere SCA† 90,044 56,939
10,500 Liberty Broadband Corp., Cl. A† 662,168 1,282,995
31,000 Liberty Broadband Corp., Cl. C† 2,095,036 3,842,760
17,000 Liberty Media Corp.- Liberty SiriusXM, Cl. A† 396,897 586,840
92,361 Liberty Media Corp.- Liberty SiriusXM, Cl. C† 3,333,824 3,181,836
68,566 Media Prima Berhad† 34,965 2,400
55,000 MSG Networks Inc., Cl. A† 629,757 547,250
4,000 Nexstar Media Group Inc., Cl. A 341,960 334,760
33,000 Nippon Television Holdings Inc. 500,589 356,360
4,000 NRJ Group 17,822 24,717
3,000 RTL Group SA†. 107,299 96,059
25,000 Salem Media Group Inc. 22,276 28,250
27,000 Sinclair Broadcast Group Inc., Cl. A 957,805 498,420
75,000 TEGNA Inc. 1,254,216 835,500
45,000 Television Broadcasts Ltd. 166,753 52,255
22,000 Television Francaise 1† 219,175 118,987
36,000 Tokyo Broadcasting System Holdings Inc. 743,833 573,799
240,000 TV Azteca SAB de CV 58,305 3,289
Business Services — 1.9%
6,000 Carlisle Support Sevices Group Ltd.†(a) 200 595
4,000 Fluent Inc.† 32,492 7,120
6,000 Impellam Group plc† 8,600 17,025
14,500 S&P Global Inc. 2,808,849 4,777,460
Cable — 8.5%
15,000 Altice Europe NV† $ 82,571 $ 57,888
22,000 AMC Networks Inc., Cl. A† 1,428,242 514,580
300 Cable One Inc. 333,624 532,455
3,800 Charter Communications Inc., Cl. A†. 757,519 1,938,152
36,000 Cogeco Communications Inc. 815,159 2,593,665
143,000 Comcast Corp., Cl. A 5,397,629 5,574,140
32,931 Liberty Global plc, Cl. A† 458,982 719,872
130,177 Liberty Global plc, Cl. C† 4,221,114 2,800,107
19,400 MultiChoice Group† 133,926 118,809
104,000 Rogers Communications Inc., New York, Cl. B 4,618,840 4,179,760
88,000 Shaw Communications Inc., New York, Cl. B 272,829 1,439,680
4,000 Telenet Group Holding NV 234,227 164,659
195,000 WideOpenWest Inc.† 1,530,964 1,027,650
Computer Software and Services — 1.6%
6,000 CyrusOne Inc., REIT 323,811 436,500
5,000 Groupon Inc.† 462,614 90,600
40,000 SVMK Inc.† 699,308 941,600
1,000 Tencent Holdings Ltd. 44,193 64,331
9,000 Zoom Video Communications Inc., Cl. A†. 670,522 2,281,860
15,000 Zuora Inc., Cl. A† 240,754 191,250
Consumer Services — 2.4%
1,500 Expedia Group Inc. 146,003 123,300
14,500 IAC/InterActiveCorp.† 1,885,424 4,689,300
35,000 Liberty TripAdvisor Holdings Inc., Cl. A†. 395,439 74,550
137,000 Qurate Retail Inc., Cl. A† 1,699,532 1,301,500
Diversified Consumer Services — 0.0%
4,000 Facebank Group Inc.† 47,674 41,800
Diversified Industrial — 0.7%
16,000 Bouygues SA†. 449,280 546,648
3,000 Fortune Brands Home & Security Inc. 125,326 191,790
23,000 Jardine Strategic Holdings Ltd. 595,515 495,650
6,000 Malaysian Resources Corp. Berhad 4,297 658
50,000 Trine Acquisition Corp.† 500,000 560,000
Entertainment — 9.0%
85,000 Borussia Dortmund GmbH & Co. KGaA 675,844 551,495
25,000 Gogo Inc.† 119,686 79,000
290,000 Grupo Televisa SAB, ADR† 4,280,769 1,519,600
See accompanying notes to financial statements.
Schedule of Investments (Continued) — June 30, 2020 (Unaudited)
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Entertainment (Continued)
18,000 Liberty Media Corp.- Liberty Braves, Cl. A† $ 397,667 $ 361,440
115,000 Liberty Media Corp.- Liberty Braves, Cl. C† 2,267,369 2,270,100
8,000 Liberty Media Corp.- Liberty Formula One, Cl. A† 210,094 233,440
33,000 Liberty Media Corp.- Liberty Formula One, Cl. C† 1,002,728 1,046,430
4,000 M6 Metropole Television SA† 35,208 45,120
22,000 Madison Square Garden Entertainment Corp.† 1,603,483 1,650,000
21,500 Madison Square Garden Sports Corp.† 3,393,288 3,158,135
28,000 Naspers Ltd., Cl. N 2,621,432 5,103,995
5,000 Netflix Inc.† 1,355,617 2,275,200
43,000 Reading International Inc., Cl. A† 672,127 182,750
8,000 Reading International Inc., Cl. B† 85,625 128,080
4,000 Roku Inc.† 56,000 466,120
40,000 Sirius XM Holdings Inc. 227,782 234,800
24,500 Take-Two Interactive Software Inc.† 2,357,012 3,419,465
550,000 Wow Unlimited Media Inc.†(b)(c) 535,492 119,512
Equipment — 0.8%
3,600 Amphenol Corp., Cl. A 7,014 344,916
44,000 Corning Inc. 1,208,193 1,139,600
6,500 QUALCOMM Inc. 191,784 592,865
Financial Services — 3.3%
15,000 Caribbean Investment Holdings Ltd 14,944 7,528
35,500 Kinnevik AB, Cl. A 673,200 929,579
28,000 Kinnevik AB, Cl. B 794,554 736,494
4,800 LendingTree Inc.† 1,062,203 1,389,744
31,000 PayPal Holdings Inc.† 2,435,971 5,401,130
14,000 Waterloo Investment Holdings Ltd.†(a) 2,009 2,940
Food and Beverage — 0.3%
2,400 Pernod Ricard SA 148,081 377,629
2,500 Remy Cointreau SA 302,970 340,419
Information Technology — 1.0%
26,500 Prosus NV† 2,223,449 2,463,385
Real Estate — 1.8%
12,500 American Tower Corp., REIT 1,705,635 3,231,750
3,000 Crown Castle International Corp., REIT $ 310,549 $ 502,050
5,500 Digital Realty Trust Inc., REIT 720,500 781,605
15,000 Midway Investments†(a) 96 186
Retail — 0.3%
200 Amazon.com Inc.† 35,729 551,764
2,000 Best Buy Co. Inc. 70,450 174,540
Satellite — 3.2%
107,000 DISH Network Corp., Cl. A† 4,859,954 3,692,570
70,000 EchoStar Corp., Cl. A† 1,899,244 1,957,200
5,000 Eutelsat Communications SA 78,158 46,119
30,000 Iridium Communications Inc.† 241,684 763,200
86,000 Loral Space & Communications Inc. 2,902,766 1,678,720
250,000 PT Indosat Tbk† 52,779 41,127
3,000 SKY Perfect JSAT Holdings Inc. 15,472 11,114
10,050,057 8,190,050
Telecommunications: Long Distance — 0.6%
38,000 AT&T Inc. 1,251,938 1,148,740
5,594 BCE Inc., Toronto 250,825 233,303
Telecommunications: National — 4.3%
5,000 China Telecom Corp. Ltd., ADR 126,250 140,350
5,000 China Unicom Hong Kong Ltd., ADR 38,450 27,250
50,000 Deutsche Telekom AG, ADR 646,760 838,500
14,000 Elisa Oyj 138,048 851,564
3,605 Hellenic Telecommunications Organization SA 41,551 48,643
6,000 Liberty Latin America Ltd., Cl. A† 95,749 58,320
85,000 Liberty Latin America Ltd., Cl. C† 1,529,023 802,400
1,000 Magyar Telekom Telecommunications plc, ADR 9,280 6,240
4,000 Maroc Telecom† 60,473 57,074
40,000 Megacable Holdings SAB de CV 148,072 117,366
20,000 Nippon Telegraph & Telephone Corp. 230,089 465,941
5,000 Oi SA, ADR† 1,613 1,123
4,000 Orange SA, ADR 65,705 47,600
22,000 PLDT Inc., ADR 370,294 537,020
6,000 PT Telekomunikasi Indonesia Persero Tbk, ADR 12,340 131,280
6,000 Rostelecom PJSC, ADR 41,408 43,770
22,000 Swisscom AG, ADR 579,192 1,155,660
6,000 Telecom Argentina SA, ADR 5,820 53,700
340,000 Telecom Italia SpA 897,754 133,581
17,500 Telefonica Brasil SA, ADR 283,641 155,050
Telecommunications: National (Continued)
105,710 Telefonica SA, ADR $ 1,139,289 $ 509,522
140,000 Telekom Austria AG† 962,459 967,329
55,000 Telesites SAB de CV† 41,755 34,817
15,172 Telia Co. AB 42,639 56,662
2,400 Telstra Corp. Ltd., ADR 30,324 25,930
100,000 VEON Ltd., ADR 183,016 180,000
63,500 Verizon Communications Inc. 2,591,305 3,500,755
Telecommunications: Regional — 2.3%
28,000 CenturyLink Inc. 421,685 280,840
35,000 GCI Liberty Inc., Cl. A† 1,917,485 2,489,200
85,500 Telephone and Data Systems Inc. 3,440,688 1,699,740
80,000 TELUS Corp., New York 517,468 1,341,600
Wireless Communications — 4.1%
78,000 Altice USA Inc., Cl. A† 1,726,265 1,758,120
55,000 America Movil SAB de CV, Cl. L, ADR 367,164 697,950
240,000 Jasmine International PCL(a) 5,040 27,799
24,000 Millicom International Cellular SA, SDR 1,497,524 627,932
75,000 NTT DOCOMO Inc. 1,162,358 2,001,852
19,000 Orascom Investment Holding, GDR† 29,430 1,805
60,000 ORBCOMM Inc.† 483,714 231,000
34,000 SK Telecom Co. Ltd., ADR 761,600 656,880
4,203 TIM Participacoes SA, ADR 108,533 54,387
29,000 T-Mobile US Inc.† 2,235,431 3,020,350
10,000 Turkcell Iletisim Hizmetleri A/S, ADR 123,780 57,600
30,000 United States Cellular Corp.† 1,107,291 926,100
25,000 Vodafone Group plc, ADR 971,225 398,500
TOTAL DISTRIBUTION COMPANIES 124,822,223 137,361,073
COPYRIGHT/CREATIVITY COMPANIES — 32.3%
6,500 Scientific Games Corp.† 72,843 100,490
Business Services: Advertising — 1.2%
1,000 Boston Omaha Corp., Cl. A† 16,970 16,000
200,000 Clear Channel Outdoor Holdings Inc.† 863,783 208,000
13,000 JCDecaux SA† 330,623 241,720
18,400 Lamar Advertising Co., Cl. A, REIT 1,131,304 1,228,384
15,000 Ocean Outdoor Ltd.† 144,925 96,000
1,500 Publicis Groupe SA 10,478 48,552
4,000 Ströeer SE & Co. KGaA $ 89,263 $ 269,189
56,000 The Interpublic Group of Companies Inc. 1,295,150 960,960
10,820 The Rubicon Project Inc.† 22,112 72,169
Computer Hardware — 2.9%
20,000 Apple Inc. 3,585,655 7,296,000
Computer Software and Services — 10.7%
48,000 Activision Blizzard Inc. 2,582,754 3,643,200
4,000 Actua Corp.†(a) 0 200
4,300 Alphabet Inc., Cl. A† 4,268,254 6,097,615
1,300 Alphabet Inc., Cl. C† 973,732 1,837,693
50,000 eBay Inc. 1,241,780 2,622,500
4,000 Electronic Arts Inc.† 367,870 528,200
39,000 Facebook Inc., Cl. A† 5,311,420 8,855,730
90,000 Hewlett Packard Enterprise Co. 1,262,543 875,700
10,000 Microsoft Corp. 1,316,071 2,035,100
7,000 QTS Realty Trust Inc., Cl. A, REIT 232,035 448,630
300 Red Violet Inc.† 1,920 5,292
6,000 SoftBank Group Corp. 175,747 302,848
Consumer Products — 1.2%
2,000 Nintendo Co. Ltd. 241,733 889,280
38,000 Nintendo Co. Ltd., ADR 831,904 2,124,200
2,200 Marriott Vacations Worldwide Corp. 260,590 180,862
Electronics — 5.6%
2,000 IMAX Corp.† 10,333 22,420
5,000 Intel Corp. 105,992 299,150
3,440 Koninklijke Philips NV† 36,704 161,130
29,036 Micro Focus International plc, ADR 687,234 159,117
50,000 Resideo Technologies Inc.† 652,883 586,000
188,000 Sony Corp., ADR 6,847,923 12,996,440
8,341,069 14,224,257
79,200 GMM Grammy Public Co. Ltd. 52,488 25,112
4,000 Lions Gate Entertainment Corp., Cl. B† 67,258 27,320
18,000 Live Nation Entertainment Inc.† 707,208 797,940
11,000 Manchester United plc, Cl. A 200,475 174,130
17,000 STV Group plc 13,537 49,186
10,000 Tencent Music Entertainment Group, ADR† 140,864 134,600
38,000 The Walt Disney Co. 4,408,256 4,237,380
36,000 Universal Entertainment Corp.† 935,873 697,495
85,500 ViacomCBS Inc., Cl. A 2,631,152 2,188,800
COPYRIGHT/CREATIVITY COMPANIES (Continued)
75,000 ViacomCBS Inc., Cl. B $ 3,102,945 $ 1,749,000
85,000 Vivendi SA 2,045,981 2,181,152
4,000 Warner Music Group Corp., Cl. A† 115,520 118,000
8,000 World Wrestling Entertainment Inc., Cl. A 412,048 347,600
Hotels and Gaming — 3.0%
65,000 Boyd Gaming Corp 1,395,042 1,358,500
1,800 Churchill Downs Inc. 52,401 239,670
15,000 Full House Resorts Inc.† 49,514 19,950
14,000 Golden Entertainment Inc.† 150,730 124,880
4,200 Greek Organization of Football Prognostics SA 45,444 39,849
18,427 GVC Holdings plc 238,757 169,100
85,000 International Game Technology plc 1,374,549 756,500
8,500 Las Vegas Sands Corp. 463,913 387,090
180,250 Mandarin Oriental International Ltd 294,057 272,178
29,000 Melco Resorts & Entertainment Ltd., ADR 193,802 450,080
22,000 MGM China Holdings Ltd. 43,826 28,385
38,000 MGM Resorts International 1,084,858 638,400
4,000 Penn National Gaming Inc.† 26,016 122,160
49,000 Ryman Hospitality Properties Inc., REIT 1,823,942 1,695,400
16,200 Wynn Resorts Ltd. 1,707,512 1,206,738
Publishing — 1.0%
20,000 Arnoldo Mondadori Editore SpA† 63,826 21,571
974,000 Bangkok Post plc† 47,100 41,283
850 Graham Holdings Co., Cl. B 449,232 291,270
600 John Wiley & Sons Inc., Cl. B 4,269 23,754
26,500 Meredith Corp. 871,497 385,575
5,263 Nation International Edutainment PCL† 265 307
1,000,000 Nation Multimedia Group Public Co. Ltd.† 53,346 5,500
28,000 News Corp., Cl. A 130,834 332,080
38,500 News Corp., Cl. B 633,354 460,075
6,779 Novus Holdings Ltd. 3,053 441
235,000 Singapore Press Holdings Ltd. 689,576 214,158
600 Spir Communication SA†(a) 3,279 3,370
79,000 The E.W. Scripps Co., Cl. A 1,405,558 691,250
1,800 Wolters Kluwer NV 40,781 140,590
5,000 Equinix Inc., REIT 2,103,490 3,511,500
37,500 Outfront Media Inc., REIT $ 712,690 $ 531,375
TOTAL COPYRIGHT/CREATIVITY COMPANIES
TOTAL COMMON STOCKS 190,784,869 219,460,538
CLOSED-END FUNDS — 0.1%
8,000 Altaba Inc., Escrow† 52,053 172,000
PREFERRED STOCKS — 0.0%
DISTRIBUTION COMPANIES — 0.0%
5,500 GCI Liberty Inc., Ser. A, 7.000% 112,525 144,155
RIGHTS — 0.0%
14,000 Media General Inc., CVR†(a) 0 0
29,000 T-Mobile US Inc., expire 07/27/20† 0 4,872
TOTAL RIGHTS 0 4,872
WARRANTS — 0.0%
600 Malaysian Resources Corp. Berhad, expire 10/29/27† 0 15
Telecommunications — 0.0%
117,647 Jasmine International PCL, expire 07/05/20† 0 1,751
TOTAL WARRANTS 0 1,766
CONVERTIBLE CORPORATE BONDS — 0.0%
$100,000 Gogo Inc., 6.000%, 05/15/22 100,000 70,336
U.S. GOVERNMENT OBLIGATIONS — 13.5%
34,215,000 U.S. Treasury Bills,
0.030% to 0.300%††,
08/27/20 to 11/05/20 34,196,526 34,205,488
TOTAL INVESTMENTS — 100.0%
$ 225,245,973 254,059,155
Other Assets and Liabilities (Net)
$ (48,283 )
(3,986,911 preferred shares outstanding)
(99,922,525 )
NET ASSETS — COMMON STOCK
(25,104,488 common shares outstanding)
NET ASSET VALUE PER COMMON SHARE
($154,088,347 ÷ 25,104,488 shares outstanding)
Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.
At June 30, 2020, the Fund held an investment in a restricted and illiquid security amounting to $119,512 or 0.05% of total investments, which was valued under methods approved by the Board of Directors as follows:
Wow Unlimited Media
06/05/18-
$535,492 $0.2173
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.
Non-income producing security.
††
Represents annualized yields at dates of purchase.
ADR American Depositary Receipt
CVR Contingent Value Right
GDR Global Depositary Receipt
REIT Real Estate Investment Trust
SDR Swedish Depositary Receipt
Geographic Diversification
79.5 % $ 202,024,724
8.1 20,522,176
2.1 5,223,246
0.0 * 58,879
Total Investments
100.0 % $ 254,059,155
Statement of Assets and Liabilities
June 30, 2020 (Unaudited)
Investments, at value (cost $225,245,973)
Foreign currency, at value (cost $6,329)
Receivable for investments sold
Deferred offering expense
Dividends and interest receivable
Prepaid expenses
Distributions payable
Payable for investments purchased
Payable for investment advisory fees
Payable for accounting fees
Payable for payroll expenses
Payable for stockholder communications expenses
Payable for legal and audit fees
Payable for preferred offering expenses
Preferred Stock, $0.001 par value:
Series C Cumulative Preferred Stock (Auction Rate, $25,000 liquidation value, 1,000 shares authorized with 10 shares issued and outstanding)
Series E Cumulative Preferred Stock (5.125%, $25 liquidation value, 2,000,000 shares authorized with 1,996,700 shares issued and outstanding)
Series G Cumulative Preferred Stock (5.125%, $25 liquidation value, 2,000,000 shares authorized with 1,990,201 shares issued and outstanding)
Total Preferred Stock
Net Assets Attributable to Common Stockholders
Net Assets Attributable to Common Stockholders Consist of:
Paid-in capital
Total distributable earnings (a)
Net Assets
Net Asset Value per Common Share:
($154,088,347 ÷ 25,104,488 shares outstanding at $0.001 par value; 196,750,000 shares authorized)
Includes net unrealized depreciation of $4,601 in deferred Thailand capital gains tax during the six months ended June 30, 2020.
Statement of Operations
For the Six Months Ended June 30, 2020 (Unaudited)
Investment Income:
Dividends (net of foreign withholding taxes of $102,449)
Total Investment Income
Investment advisory fees
Stockholder communications expenses
Stockholder services fees
Directors' fees
Audit and legal fees
Custodian fees
Accounting fees
Payroll expenses
Miscellaneous expenses
Less:
Advisory fee reduction (See Note 3)
(1,243 )
Expenses paid indirectly by broker (See Note 3)
Total Reductions and Credits
Net Expenses
Net Investment Loss
(93,028 )
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
Net realized loss on investments
(1,555,314 )
Net realized gain on foreign currency transactions
Net realized loss on investments and foreign currency transactions.
Net change in unrealized appreciation/depreciation:
on investments(a)
on foreign currency translations
Net change in unrealized appreciation/depreciation on investments and foreign currency translations
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency
Net Decrease in Net Assets Resulting from Operations
Total Distributions to Preferred Stockholders
Net Decrease in Net Assets Attributable to Common Stockholders Resulting from Operations
$ (33,411,953 )
Includes net change of $(1,368) in deferred Thailand capital gains tax on unrealized appreciation during the six months ended June 30, 2020.
Statement of Changes in Net Assets Attributable to Common Stockholders
(Unaudited) Year Ended
Net investment income/(loss)
$ (93,028 ) $ 3,185,626
Net realized gain/(loss) on investments and foreign currency transactions
(1,553,350 ) 19,943,525
(29,205,807 ) 26,104,341
Net Increase/(Decrease) in Net Assets Resulting from Operations
Distributions to Preferred Shareholders:
Accumulated earnings
(950 )* (3,820,425 )
Return of capital
(2,558,818 )* —
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from Operations
Distributions to Common Stockholders:
— (20,626,172 )
(10,981,915 )* (1,128,870 )
Total Distributions to Common Stockholders
Fund Share Transactions:
Net increase in net assets from common shares issued upon reinvestment of distributions
Net increase in net assets from redemption of preferred shares
Offering costs for preferred shares charged to paid-in capital
— (1,852,000 )
Net Increase in Net Assets from Fund Share Transactions
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders
Net Assets Attributable to Common Stockholders:
Beginning of year
$ 154,088,347 $ 197,326,554
Based on year to date book income. Amounts are subject to change and recharacterization at year end.
Selected data for a common share outstanding throughout each period:
For the Year Ended December 31,
Operating Performance:
Net asset value, beginning of year
$ 7.93 $ 7.04 $ 9.34 $ 8.13 $ 8.36 $ 9.81
(0.00 )(a) 0.13 (b) 0.03 0.01 0.05 0.03
Net realized and unrealized gain/(loss) on investments and foreign currency transactions
(1.25 ) 1.86 (1.28 ) 2.11 0.60 (0.49 )
Total from investment operations
Distributions to Preferred Stockholders: (c)
(0.00 )*(a) (0.02 ) (0.00 )(a) (0.00 )(a) (0.00 )(a) (0.00 )(a)
Net realized gain
(0.00 )*(a) (0.13 ) (0.15 ) (0.08 ) (0.05 ) (0.05 )
(0.10 )* — — — (0.00 )(a) —
(0.10 ) (0.15 ) (0.15 ) (0.08 ) (0.05 ) (0.05 )
— (0.12 ) (0.01 ) (0.03 ) (0.06 ) (0.03 )
(0.44 )* (0.05 ) — (0.12 ) (0.03 ) (0.02 )
Increase in net asset value from repurchase of common shares
— — — 0.00 (a) — —
Increase in net asset value from common shares issued upon reinvestment of distributions
0.00 (a) 0.00 (a) — — — —
Increase in net asset value from redemption of preferred shares
0.00 (a) — — 0.12 — —
Offering costs and adjustment to offering costs for preferred shares charged to paid-in capital
— (0.07 ) (0.00 )(a) (0.07 ) — (0.00 )(a)
Total Fund share transactions
0.00 (a) (0.07 ) (0.00 )(a) 0.05 — (0.00 )(a)
Net Asset Value Attributable to Common Stockholders, End of Period
NAV total return †
(15.69 )% 25.86 % (16.54 )% 26.50 % 7.59 % (5.57 )%
Market value, end of period
Investment total return ††
(12.31 )% 26.67 % (14.93 )% 40.21 % 7.97 % (16.33 )%
Ratios to Average Net Assets and Supplemental Data:
Net assets including liquidation value of preferred shares, end of period (in 000's)
$ 254,011 $ 297,577 $ 243,309 $ 297,503 $ 232,399 $ 238,049
Net assets attributable to common shares, end of period (in 000's)
Ratio of net investment income/(loss) to average net assets attributable to common shares before preferred share distributions
(0.12 %)(d) 1.62 %(b) 0.39 % 0.13 % 0.70 % 0.33 %
Ratio of operating expenses to average net assets attributable to common shares before fees waived/fee reduction(e)(f)
1.99 %(d) 1.69 %(g) 1.62 % 1.45 % 1.49 %(h) 1.45 %
Ratios to Average Net Assets and Supplemental Data (Continued):
Ratio of operating expenses to average net assets attributable to common shares net of advisory feereduction, if any(e)(i)
Portfolio turnover rate
5.9 % 17.5 % 20.5 % 16.8 % 10.3 % 14.0 %
Financial Highlights (Continued)
June 30, 2020 For the Year Ended December 31,
Cumulative Preferred Stock:
6.000% Series B Preferred(j)
Liquidation value, end of period (in 000's)
— — $ 19,775 $ 19,775 $ 19,775 $ 19,775
Total shares outstanding (in 000's)
— — 791 791 791 791
Liquidation preference per share
— — $ 25.00 $ 25.00 $ 25.00 $ 25.00
Average market value (k)
Asset coverage per share(l)
— — $ 86.86 $ 106.21 $ 167.07 $ 171.13
Series C Auction Rate Preferred
Liquidation value, end of Total shares outstanding (in 000's) (in 000's)
$ 250 $ 250 $ 250 $ 250 $ 15,000 $ 15,000
0 (m) 0 (m) 0 (m) 0 (m) 1 1
$25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value (n)
$49,988 $ 74,209 $ 86,865 $ 106,212 $ 167,071 $ 171,134
5.125% Series E Preferred
$49,918 $ 50,000 $ 50,000 $ 50,000 — —
1,997 2,000 2,000 2,000 — —
$ 25.00 $ 25.00 $ 25.00 $ 25.00 — —
Average market value(k)
$ 49.99 $ 74.21 $ 86.86 $ 106.21 — —
5.125% Series G Preferred
$49,755 $ 50,000 — — — —
1,990 2,000 — — — —
$ 25.00 $ 25.00 — — — —
Asset Coverage (o)
200 % 297 % 347 % 425 % 668 % 685 %
Based on net asset value per share, adjusted for reinvestment of distributions at the net asset value per share on the ex-dividend dates. 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 and adjustments for the rights offering. Total return for a period of less than one year is not annualized.
Amount represents less than $0.005 per share.
Includes income resulting from special dividends. Without these dividends, the per share income amount would have been 0.02 and the net investment income ratio would have been 0.20%.
Calculated based on average common shares outstanding on the record dates throughout the years.
Annualized.
The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all periods presented there was no impact on the expense ratios.
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, 2020 and the years ended December 31, 2019, 2018, 2017, 2016, and 2015 would have been 1.23%, 1.25%, 1.22%, 1.23%, 1.27%, and 1.26%, respectively.
In 2019, due to failed auctions relating to previous fiscal years, the Fund reversed accumulated auction agent fees. For the year ended December 31, 2019, there was no impact to the ratio of operating expenses to average net assets attributable to common shares and the ratio of operating expenses to average net assets including the liquidation value of preferred shares.
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.
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, 2020 and the years ended December 31, 2019, 2018, 2017, 2016, and 2015 would have been 1.22%, 1.25%, 1.15%, 1.23%, 1.27%, and 1.13%, respectively.
The Fund redeemed and retired all its outstanding Series B Preferred Shares on December 26, 2019.
Based on weekly prices.
Asset coverage per share is calculated by combining all series of preferred shares.
Actual number of shares outstanding is 10.
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 auctions.
Asset coverage is calculated by combining all series of preferred shares.
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 stockholder approval. The Fund will provide stockholders 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 securities are 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.
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, 2020 is as follows:
Valuation Inputs
Quoted Prices Level 2 Other Significant
Observable Inputs Level 3 Significant
Unobservable Inputs(a) Total Market Value
at 6/30/20
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Copyright/Creativity Companies
$ 27,252,508 — $ 200 $ 27,252,708
2,537,317 $ 70,537 3,370 2,611,224
Other Industries (b)
52,235,533 — — 52,235,533
Distribution Companies
20,244,850 17,268 — 20,262,118
4,801,605 — 595 4,802,200
22,725,170 119,512 — 22,844,682
8,464,475 — 2,940 8,467,415
10,432,476 — 27,799 10,460,275
Total Common Stocks
219,218,131 207,317 35,090 219,460,538
— 172,000 — 172,000
Preferred Stocks (b)
144,155 — — 144,155
Rights (b)
4,872 — 0 4,872
Warrants (b)
15 1,751 — 1,766
Convertible Corporate Bonds (b)
— 70,336 — 70,336
— 34,205,488 — 34,205,488
TOTAL INVESTMENTS IN SECURITIES – ASSETS
$ 219,367,173 $ 34,656,892 $ 35,090 $ 254,059,155
Level 3 securities are valued by the last available closing Price/Spin-off and Merger/Acquisition Price analysis. The inputs for these securities are not readily available and are derived based on the judgment of the Adviser according to procedures approved by the Board of Directors.
Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
During the six months ended June 30, 2020, the Fund did not have transfers into or out of Level 3.
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 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. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.
The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include 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. Stockholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund's expenses. During the six months ended June 30, 2020, 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.
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. For restricted securities the Fund held as of June 30, 2020, refer to the Schedule of Investments.
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 Stockholders. Distributions to common stockholders are recorded on the ex-dividend date. The characterization of distributions to stockholders is 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 stockholders of the Fund's Series C Cumulative Preferred Stock (Series C Preferred), 5.125% Series E Cumulative Preferred Stock (Series E Preferred) and 5.125% Series G Preferred Stock (Series G Preferred), 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. Distributions sourced from paid-in capital should not be considered the current yield or the total return from an investment in the Fund.
The tax character of distributions paid during the year ended December 31, 2019 was follows:
Common Preferred
Distributions paid from:
Ordinary income (inclusive of short term capital gains)
$ 3,952,388 $ 732,070
Long term capital gains
1,128,870 —
Total distributions paid
$ 21,755,042 $ 3,820,425
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, 2020:
Cost Gross
Unrealized
Appreciation Gross
Depreciation Net Unrealized
$ 226,602,913 $59,778,217 $ (32,321,975 ) $27,456,242
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. Except as disclosed above, for the six months ended June 30, 2020, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2020, 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 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, 2020, the Fund's total return on the NAV of the common shares did not exceed the stated dividend rate of Series C Preferred Stock. Thus, advisory fees with respect to the liquidation value of the Preferred Stock were reduced by $1,243.
During the six months ended June 30, 2020, the Fund paid $7,774 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.
During the six months ended June 30, 2020, 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 $1,497.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant to the Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund's NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2020, 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, 2020, the Fund accrued $6,684 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.
The Fund engaged in a sale transaction with a fund that has a common investment adviser. This sale transaction complied with Rule 17a-7 under the Act and amounted to $2,531,500.
4. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2020, other than short term securities and U.S. Government obligations, aggregated to $13,495,149 and $23,635,254, 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 common 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, 2020 and the year ended December 31, 2019, the Fund did not repurchase any of its common shares.
Transactions in common stock were as follows:
Shares Amount Shares Amount
205,973 $ 1,126,513 280,650 $ 2,236,670
The Fund has an effective shelf registration authorizing the offering of an additional $400 million of common or preferred shares. As of June 30, 2020, the Fund has approximately $300 million available for issuance under the current shelf registration.
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 stockholders. 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 C, Series E and Series G Preferred at redemption prices of $25,000, $25 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 stockholders 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 stockholders.
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 Composite Commercial Paper Rate on the day of such auction. Existing Series C stockholders 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 C Preferred Stock at its redemption price. In addition, the Board has authorized the repurchase of the Series E and Series G Preferred Stock in the open market at prices less than the $25 liquidation value per share. During the six months ended June 30, 2020, the Fund repurchased 3,300 shares of Series E and 9,799 shares of Series G Preferred Stock. During the
year ended December 31, 2019, the Fund did not repurchase or redeem any shares of Series E or Series G Preferred Stock. During the year ended December 31, 2019, the Fund redeemed and retired all of the remaining shares of Series B Preferred Stock.
On December 20, 2019, the Fund issued 2,000,000 shares of Series G Preferred receiving $48,148,000, after the deduction of estimated offering expenses of $277,000 and underwriting fees of $1,575,000. The Series G Preferred has an annual dividend rate of 5.125%, is perpetual, noncallable for five years, and has a liquidation preference of $25 per share. Distributions are to be paid quarterly beginning on March 26, 2020.
The following table summarizes Cumulative Preferred Stock information:
Series Issue Date Authorized
Outstanding at
Net Proceeds
2020 Dividend
Rate at
Accrued
Dividends at
C Auction Rate
March 31, 2003 1,000 10 $24,547,465 0.088% to 2.783% 0.175% 8
E 5.125%
September 26, 2017 2,000,000 1,996,700 48,192,240 Fixed Rate 5.125% 35,532
G 5.125%
December 20, 2019 2,000,000 1,990,201 48,148,000 Fixed Rate 5.125% 35,416
The holders of Preferred Stock generally are entitled to one vote per share held on each matter submitted to a vote of stockholders 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.
Stockholder Meeting – May 11, 2020 – Final Results
The Fund's Annual Meeting of Stockholders was held virtually on May 11, 2020. At that meeting, common and preferred stockholders, voting together as a single class, re-elected Frank J. Fahrenkopf, Jr., Werner J. Roeder, Salvatore J. Zizza, and Daniel E. Zucchi as Directors of the Fund, with 21,874,449 votes, 21,918,008 votes, 21,946,939 votes, and 21,957,616 votes cast in favor of these Directors, and 966,884 votes, 923,325 votes, 894,394 votes, and 883,717 votes withheld for these Directors, respectively.
Mario J. Gabelli, John Birch, Anthony J. Colavita, James P. Conn, Christopher J. Marangi, and Kuni Nakamura continue to serve in their capacities as Directors of the Fund.
We thank you for your participation and appreciate your continued support.
Board Consideration and Re-Approval of Investment 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 12, 2020, 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 Members 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, BNY Mellon 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 Mellon, 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 its 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 with its Broadridge peer group of other SEC registered open-end and closed-end funds. The Board Members
Board Consideration and Re-Approval of Investment Advisory Agreement (Unaudited) (Continued)
considered the Fund's one, three, five, and ten year average annual total return for the periods ended March 31, 2020, but placed greater emphasis on the Fund's longer term performance. The peer group considered by the Board Members was developed by Gabelli and was comprised of other selected closed-end core, growth, and value equity funds (the Performance Peer Group). The Board Members considered these comparisons helpful in their assessment as to whether the Adviser was obtaining for the Fund's stockholders 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 below the median for the one year, three year, five year, and ten year periods. The Board Members concluded that the Fund's performance was reasonable in comparison with 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 Gabelli 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 with those of the Expense Peer Group.
The Board Members also reviewed the fees charged by the Adviser to provide similar advisory services to other RICs 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, 2019. 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.
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 its 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.
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
Under the Fund's Automatic Dividend Reinvestment Plan and Voluntary Cash Purchase Plan (the "Plan"), a stockholder whose shares of common stock are registered in his or her own name will have all distributions reinvested automatically by Computershare Trust Company, N.A. ("Computershare"), which is an agent under the Plan, unless the stockholder elects to receive cash. Distributions with respect to shares registered in the name of a broker-dealer or other nominee (that is, in "street name") will be reinvested by the broker or nominee in additional shares under the Plan, unless the service is not provided by the broker or nominee or the stockholder elects to receive distributions in cash. Investors who own shares of common stock registered in street name should consult their broker-dealers for details regarding reinvestment. All distributions to investors who do not participate in the Plan will be paid by check mailed directly to the record holder by Computershare as dividend-disbursing agent.
Enrollment in the Plan
It is the policy of The Gabelli Multimedia Trust Inc. (the "Fund") to automatically reinvest dividends payable to common stockholders. As a "registered" stockholder 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 stockholders 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 stockholders wishing to receive their distributions in cash may submit this request through the Internet, by telephone or in writing to:
c/o Computershare
Louisville, KY 40233-5000
Telephone: (800) 336-698
Website: www.coputershare.com/investor
Stockholders requesting this cash election must include the stockholder's name and address as they appear on the Fund's records. Stockholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact Computershare at the website or telephone number above.
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 distributions will be automatically reinvested. Certain brokers participate in the Plan. Stockholders holding shares in "street name" at participating institutions will have dividends automatically reinvested. Stockholders 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 shares of 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 stockholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, stockholders 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. Stockholders 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 stockholder who participates $0.75, plus a per share fee (currently $0.02 per share). Per share fees include any applicable brokerage commissions Computershare is required to pay and fees for such purchases are expected to be less than the usual fees for such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box 6006, Carol Stream, IL 60197-6006 such that Computershare receives such payments approximately two business days before the 1st and 15th of the month. Funds not received at least two business 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 two business days before such payment is to be invested.
Stockholders wishing to liquidate shares held at Computershare may do so through the Internet, in writing or by telephone to the above-mentioned website, address or telephone number. Include in your request your name, address, and account number. Computershare will sell such shares through a broker-dealer selected by Computershare within 5 business days of receipt of the request. The sale price will equal the weighted average price of all shares sold through the Plan on the day of the sale, less applicable fees . Participants should note that Computershare is unable to accept instructions to sell on a specific date or at a specific price. The cost to liquidate shares is $2.50 per transaction as well as the per share fee (currently $0.10 per share) Per share fees include any applicable brokerage commissions Computershare is required to pay and are expected to be less than the usual fees for such transactions.
For more information regarding the Automatic 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 30 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by Computershare on at least 30 days written notice to participants in the Plan.
AND YOUR PERSONAL PRIVACY
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., 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 stockholder?
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.
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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 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.
800-GABELLI (800-422-3554)
info@gabelli.com
GABELLI.COM
Chairman &
Chief Executive Officer,
GAMCO Investors, Inc.
Executive Chairman,
Associated Capital Group Inc.
John Birch
The Cardinal Partners Global
Anthony J. Colavita
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 &
Kuni Nakamura
Advanced Polymer, Inc.
Werner J. Roeder
Former Medical Director,
Lawrence Hospital
Salvatore J. Zizza
Zizza & Associates Corp.
Daniel E. Zucchi
Daniel E. Zucchi Associates
John C. Ball
Andrea R. Mango
Secretary & Vice President
Richard J. Walz
Carter W. Austin
Vice President & Ombudsman
Laurissa M. Martire
State Street Bank and Trust Company
TRANSFER AGENT AND REGISTRAR
GGT Q2/2020
Item 2. Code of Ethics.
Item 3. Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services.
Item 5. Audit Committee of Listed Registrants.
Item 6. Investments.
Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
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.
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
(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
(d) Maximum Number (or
Approximate Dollar Value)
of Shares (or Units) that
Month #1
Common – N/A
Preferred Series G –
Preferred Series E –
Preferred Series G – N/A
Preferred Series E – N/A
Common – 24,898,515
N/A Common – N/A
Preferred Series E – $22.00
Preferred Series G – 5,399
Preferred Series E – 1,600
2,000,000 – 5,399 =
Preferred Series G – $23.34
Preferred Series E –$23.25
1,998,400 -1,700 = 1,996,700
Preferred Series G –1,990,201
$22.6250 Common – 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:
The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs semiannually in the Fund's reports to shareholders in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.
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.
The expiration date (if any) of each plan or program – The Fund's repurchase plans are ongoing.
Each plan or program that has expired during the period covered by the table – The Fund's repurchase plans are ongoing.
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.
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)).
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 period covered by this reportthat 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.
Item 13. Exhibits.
(a)(1)
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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
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/ John C. Ball
John C. Ball, Principal Financial Officer and Treasurer
* Print the name and title of each signing officer under his or her signature.


At Sudbourne, Art and Design & Technology are taught as part of the Creative Curriculum. Each term the children complete a different area of Art or Design & Technology which link in with the topic being taught. The wonderful art and Design work produced is displayed throughout the school: in the school halls and corridors as well as classrooms.
In Art the children experience and learn a variety of different key skills and processes such as drawing; paint and colour; print; clay; construction and fabric. The children use a variety of tools and materials when working in different mediums. Through this the children can explore different elements of art – line, shape, form, colour, tone and pattern.
In making art, we value the process of making as much as the final product.
The children are always encouraged to look at and respond to a wide variety of artwork. By linking Art to the wider curriculum through topic work, it has increased the levels of motivation throughout the curriculum.
At Sudbourne, Design and Technology is a fun and exciting subject which allows the children the opportunity to express themselves using all of their creative and inventive ideas.
Through their D&T experiences the children have the opportunity to develop their making skills using a wide range of materials and tools, as well as planning and thinking skills when designing. The children also learn to evaluate their work objectively.


text:
Distributions to Beneficiaries of Tax-Favored Retirement Plans, before and after the Secure Act
The Tax Lawyer, Vol. 74, No. 1
62 Pages Posted: 19 Jun 2020 Last revised: 16 Dec 2020
See all articles by Vorris J. Blankenship
Vorris J. Blankenship
Tax Planning for Retirees
Date Written: June 17, 2020
Individual beneficiaries of tax-favored retirement plans have long enjoyed substantial tax deferral by spreading required minimum distributions (RMDs) over their lifetimes or life expectancies. Often referred to as "stretch" distributions, these extended RMDs attracted the attention of reformers who questioned whether the deferrals served the needs of retirees, or were merely estate planning tools. The result of that concern was the enactment of the SECURE Act of 2019 that significantly changed the treatment of retirement plan distributions to beneficiaries.
The SECURE Act primarily targets non-annuity RMDs made to designated beneficiaries from tax-favored retirement plans that are defined contribution plans (but including IRAs). The SECURE Act eliminates life expectancy RMDs for many if not most of these beneficiaries and instead requires distribution of the entire amount of the retirement benefit before the end of the calendar year containing the tenth anniversary of the participant's death (the ten-year rule).
The SECURE Act, however, preserves life expectancy RMDs for "eligible" designated beneficiaries. Eligible designated beneficiaries (EDBs) include only (1) the surviving spouse of the participant, (2) a minor child of the participant, (3) a disabled individual, (4) a chronically ill individual, or (5) an individual who is not more than ten years younger than the participant. The determination of whether a designated beneficiary is an EDB is made as of the date of death of the participant.
The SECURE Act also helpfully replaces the old five-year distribution rule with the ten-year rule, even for designated beneficiaries who are not EDBs, i.e., for those who are ineligible designated beneficiaries (IDBs). The ten-year rule also applies now to beneficiaries who succeed to plan benefits upon the death of an EDB. Unfortunately, though, beneficiaries who succeed to plan benefits upon the death of an IDB must still distribute all the remaining benefit within the same period that was applicable to the IDB.
Beneficiaries that are so-called "see-through" trusts have long been afforded special RMD treatment. Now, however, the possibility of making life expectancy distributions to such a trust may be lost if any of the trust beneficiaries are IDBs. The SECURE Act partially addresses this problem by providing for "applicable multi-beneficiary trusts" that can allow a trust for a disabled or chronically ill beneficiary to still take RMDs over the beneficiary's life expectancy.
The SECURE Act also applies to commercial annuities purchased by tax-favored retirement plans that are defined contribution plans (including IRAs). These plans may now purchase lifetime and period certain annuities only for EDBs. Such annuities purchased for IDBs would normally conflict with the required application of the ten-year distribution rule.
Fortunately, the SECURE Act does not apply to traditional defined benefit plans. Stretch annuities are still available under such plans even for IDBs. These annuities may provide unreduced payments for a period certain, and may allow significant increases over time in the amount of an annuity payment. It is true that joint and survivor annuity payments may be limited in amount for beneficiaries more than ten years younger than the deceased participant. Nevertheless, the payments may be as much as 52 percent of the payments to the participant for even the youngest of beneficiaries (with a higher percentage for older beneficiaries).
Note: Comments are welcomed.
Blankenship, Vorris J., Distributions to Beneficiaries of Tax-Favored Retirement Plans, before and after the Secure Act (June 17, 2020). The Tax Lawyer, Vol. 74, No. 1, Available at SSRN: https://ssrn.com/abstract=3629552 or http://dx.doi.org/10.2139/ssrn.3629552
Vorris J. Blankenship (Contact Author)
Tax Planning for Retirees ( email )
3120 Texas Hill Rd
Placerville, CA 95667
HOME PAGE: http://www.retirement-taxplanning.com/index.html

redpajama_set_name: RedPajamaCommonCrawl


Thumbprint Realty prides itself on being the MOST TRUSTED Real Estate brokerage in state of Massachusetts. In its short tenure, Thumbprint Realty was recognized by the Commonwealth of Massachusetts for their commitment to being a progressive community partner and building a strong presence in the community. One of the mantras of this brokerage is… " I know your home because I know your neighborhood." By being located in the heart of Boston's local community, Thumbprint Realty has been able to live up to its promise by educating, inspiring and serving the community.
" Anyone looking for a great place to live in Boston then thumbprint realty is your destination ! I can't begin to describe how incredibly wonderful they was in helping find the absolute perfect place for me. They screened dozens of listings that they forwarded to me round the clock and we went to a wealthy handful of properties throughout the Boston area. "
" Thumbprint Realty really helped me and my roommates out to make sure we found the right place for us. They did an awesome job finding places that matched our criteria and was always right on time and on top of things. He was able to show us places that we would definitely not have been able to find on our own. I highly recommend Thumbprint Realty for your moving needs. "


Go here. Type in your name. Find out what kind of cheese you are. Then let the world know.
I'm Roquefort, king of cheeses! All hail me!
Boursin is a soft, fresh cheese, first made by Monsieur Boursin in 1957. It has a rich, sweet flavour with a hint of acidity, and is flavoured with garlic, herbs or pepper.
Emmental is a hard, pale yellow Swiss cheese. It has a sweet smell, with a fruity taste. The most prominent feature of Emmental is the walnut-sized holes it contains. Emmental is probably the origin of the sterotypical holey cheese image.
I'm wondering what the correlation is between this cheese and my personality, love life, etc., etc.
I also want to know what the hell kind of formula they used to compare my name to a cheese. How disturbing.
Nanette, I am your queen.
Probably the best known French cheese, Brie is a soft cheese with a leathery, edible rind, and a white, creamy body. Brie is known as the Queen of cheeses, and used to be part of the tributes that had to be paid to the French Kings.
They got the white creamy body part right. The leathery rind I am concerned about.


Most dissertation proposals are around 700 – 1000 words. But for the sake of cramming, have a look at the following example to help start you off on your own. Please note that this is just an example and all theories and references that have been quoted are made up. Also note that where ever an ellipse ends a sentence, more should be written than what appears.
Warneke, G.O. (2012). "Why it is never okay to smack your child." Seal Publishers.
Dobson, L.P. (2009). "Child discipline: The Bible's prescription for a happy child." Sago House.
Fay, L.W. (1976). Is smacking your child the only way?" Delivery Publishers.
Warneke, G.O. (2012). "Why it is never okay to smack your child." Seal Publishers, page 81.
Dobson, L.P. (2009). "Child discipline: The Bible's prescription for a happy child." Sago House, page 40.
Fay, L.W. (1976). Is smacking your child the only way?" Delivery Publishers, page 203.