Gabelli Multimedia Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number                811-08476                    

                              The Gabelli Multimedia Trust Inc.                              

(Exact name of registrant as specified in charter)

One Corporate Center

                                 Rye, New York 10580-1422                            

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                                   Rye, New York 10580-1422                                

(Name and address of agent for service)

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

Date of fiscal year end: December 31

Date of reporting period: September 30, 2013

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

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


Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.


The Gabelli Multimedia Trust Inc.

Third Quarter Report — September 30, 2013

Portfolio Management Team

 

 

LOGO

To Our Shareholders,

For the quarter ended September 30, 2013, the net asset value (“NAV”) total return of The Gabelli Multimedia Trust Inc. (the “Fund”) was 12.6%, compared with a total return of 8.2% for the Morgan Stanley Capital International (“MSCI”) World Free Index. The total return for the Fund’s publicly traded shares was 6.3%. The Fund’s NAV per share was $10.12, while the price of the publicly traded shares closed at $9.75 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2013.

Comparative Results

Average Annual Returns through September 30, 2013 (a) (Unaudited)   Since
Inception
(11/15/94)
     Quarter   1 Year   5 Year   10 Year  

Gabelli Multimedia Trust Inc.

                    

NAV Total Return (b)

       12.59 %       37.20 %       12.69 %       7.84 %       8.99 %

Investment Total Return (c)

       6.27         35.48         15.86         9.30         9.24  

Standard & Poor’s 500 Index

       5.24         19.34         10.02         7.57         9.25 (d)

MSCI World Free Index

       8.18         20.21         7.84         7.58         6.84 (d)
  (a)

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

 
  (b)

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

 
  (c)

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

 
  (d)

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

 


The Gabelli Multimedia Trust Inc.

Schedule of Investments — September 30, 2013 (Unaudited)

 

 

Shares

       

Market
Value

 
 

COMMON STOCKS — 97.3%

 
 

DISTRIBUTION COMPANIES — 62.4%

  

 

Broadcasting — 13.1%

 
  10,000     

Asahi Broadcasting Corp.

  $ 73,656   
  64,000     

CBS Corp., Cl. A, Voting

    3,541,120   
  6,400     

Chubu-Nippon Broadcasting Co. Ltd.

    37,569   
  18,000     

Cogeco Inc.

    803,844   
  2,000     

Corus Entertainment Inc., Cl. B, OTC

    48,120   
  13,000     

Corus Entertainment Inc., Cl. B, Toronto

    312,490   
  44,000     

Discovery Communications Inc.,
Cl. A†

    3,714,480   
  49,000     

Discovery Communications Inc.,
Cl. C†

    3,827,880   
  20,000     

Gray Television Inc.†

    157,000   
  81,000     

Grupo Radio Centro SAB de CV,
Cl. A†

    86,634   
  4,550     

Lagardere SCA

    147,762   
  58,500     

Liberty Media Corp., Cl. A†

    8,608,275   
  16,000     

LIN Media LLC, Cl. A†

    324,640   
  4,000     

M6 Metropole Television SA

    85,798   
  68,566     

Media Prima Berhad

    57,007   
  36,000     

Nippon Television Network Corp.

    666,199   
  4,650     

NRJ Group†

    43,721   
  18,000     

Pandora Media Inc.†

    452,340   
  3,500     

RTL Group SA

    354,650   
  79,000     

Salem Communications Corp., Cl. A

    654,120   
  14,000     

Sinclair Broadcast Group Inc., Cl. A

    469,280   
  23,000     

Societe Television Francaise 1

    400,302   
  66,000     

Starz, Cl. A†

    1,856,580   
  50,000     

Television Broadcasts Ltd.

    315,244   
  90,000     

Tokyo Broadcasting System Holdings Inc.

    1,220,510   
  240,000     

TV Azteca SA de CV, CPO

    134,581   
  27,000     

UTV Media plc

    80,864   
   

 

 

 
      28,474,666   
   

 

 

 
 

Business Services — 0.7%

 
  3,686 (a)   

Contax Participacoes SA†

    31,184   
  1,000     

Convergys Corp.

    18,750   
  6,000     

Impellam Group plc

    32,443   
  21,500     

McGraw Hill Financial Inc.

    1,410,185   
  7,000     

Monster Worldwide Inc.†

    30,940   
  400     

Qumu Corp.†

    4,964   
   

 

 

 
      1,528,466   
   

 

 

 
 

Cable — 14.9%

 
  41,000     

AMC Networks Inc., Cl. A†

    2,807,680   
  205,000     

Cablevision Systems Corp., Cl. A

    3,452,200   
  6,500     

Charter Communications Inc., Cl. A†

    875,940   
  33,500     

Cogeco Cable Inc.

    1,575,399   
  22,000     

Comcast Corp., Cl. A

    993,300   
  58,000     

Comcast Corp., Cl. A, Special

    2,515,460   
  31,000     

Liberty Global plc, Cl. A†

    2,459,850   
  56,000     

Liberty Global plc, Cl. C†

    4,224,080   
  121,690     

Rogers Communications Inc., Cl. B, New York

    5,233,887   
  19,310     

Rogers Communications Inc., Cl. B, Toronto

    830,290   
  30,000     

Scripps Networks Interactive Inc.,
Cl. A

    2,343,300   

Shares

       

Market
Value

 
  16,000     

Shaw Communications Inc., Cl. B,
New York

  $ 371,840   
  78,000     

Shaw Communications Inc., Cl. B, Toronto

    1,811,329   
  80,000     

Sky Deutschland AG†

    736,925   
  20,000     

Time Warner Cable Inc.

    2,232,000   
   

 

 

 
      32,463,480   
   

 

 

 
 

Communications Equipment — 0.0%

 
  4,000     

Telenav Inc.†

    23,360   
   

 

 

 
 

Consumer Services — 2.9%

 
  4,000     

Bowlin Travel Centers Inc.†

    5,500   
  3,000     

Expedia Inc.

    155,370   
  13,000     

H&R Block Inc.

    346,580   
  21,000     

IAC/InterActiveCorp.

    1,148,070   
  115,000     

Liberty Interactive Corp., Cl. A†

    2,699,050   
  11,872     

Liberty Ventures, Cl. A†

    1,046,754   
  11,000     

The ADT Corp.

    447,260   
  15,000     

TiVo Inc.†

    186,600   
  8,000     

Tree.com Inc.

    210,080   
   

 

 

 
      6,245,264   
   

 

 

 
 

Diversified Industrial — 0.7%

 
  16,000     

Bouygues SA

    583,890   
  3,000     

Fortune Brands Home & Security Inc.

    124,890   
  10,000     

General Electric Co.

    238,900   
  20,000     

Jardine Strategic Holdings Ltd.

    677,000   
  3,000     

Malaysian Resources Corp. Berhad

    1,371   
   

 

 

 
      1,626,051   
   

 

 

 
 

Entertainment — 6.3%

 
  25,000     

British Sky Broadcasting Group plc

    352,113   
  5,800     

British Sky Broadcasting Group plc, ADR

    328,860   
  261,000     

Grupo Televisa SAB, ADR

    7,294,950   
  25,000     

Naspers Ltd., Cl. N

    2,311,795   
  5,000     

Regal Entertainment Group, Cl. A

    94,900   
  20,000     

Societe d’Edition de Canal +

    151,519   
  14,000     

Take-Two Interactive Software Inc.†

    254,240   
  52,000     

The Madison Square Garden Co., Cl. A†

    3,019,640   
   

 

 

 
      13,808,017   
   

 

 

 
 

Equipment — 1.6%

 
  12,500     

American Tower Corp.

    926,625   
  1,800     

Amphenol Corp., Cl. A

    139,284   
  121,000     

Corning Inc.

    1,765,390   
  2,000     

Furukawa Electric Co. Ltd.

    4,598   
  9,000     

QUALCOMM Inc.

    606,240   
   

 

 

 
      3,442,137   
   

 

 

 
 

Financial Services — 0.8%

 
  15,000     

BCB Holdings Ltd.†

    3,946   
  36,500     

Kinnevik Investment AB, Cl. A

    1,253,450   
  16,000     

Kinnevik Investment AB, Cl. B

    553,939   
 

 

See accompanying notes to schedule of investments.

 

2


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2013 (Unaudited)

 

 

Shares

        

Market

Value

 
 

COMMON STOCKS (Continued)

  
 

DISTRIBUTION COMPANIES (Continued)

  
 

Financial Services (Continued)

  
  15,000     

Waterloo Investment Holdings Ltd.†

   $ 971   
    

 

 

 
       1,812,306   
    

 

 

 
 

Food and Beverage — 0.3%

  
  5,000     

Beam Inc.

     323,250   
  3,000     

Compass Group plc

     41,282   
  2,994     

Pernod Ricard SA

     371,789   
    

 

 

 
       736,321   
    

 

 

 
 

Real Estate — 0.0%

  
  5,000     

Reading International Inc., Cl. B†

     39,900   
    

 

 

 
 

Retail — 2.0%

  
  200     

Amazon.com Inc.†

     62,528   
  5,000     

Barnes & Noble Inc.†

     64,700   
  60,000     

Best Buy Co. Inc.

     2,250,000   
  20,000     

HSN Inc.

     1,072,400   
  18,000     

Outerwall Inc.†

     899,820   
    

 

 

 
       4,349,448   
    

 

 

 
 

Satellite — 6.9%

  
  1,000     

Asia Satellite Telecommunications Holdings Ltd.

     3,765   
  28,001     

DigitalGlobe Inc.†

     885,392   
  137,000     

DIRECTV†

     8,185,750   
  53,000     

DISH Network Corp., Cl. A

     2,385,530   
  33,000     

EchoStar Corp., Cl. A†

     1,450,020   
  20,000     

Intelsat SA†

     480,000   
  40,000     

Iridium Communications Inc.†

     275,200   
  16,801     

Loral Space & Communications Inc.

     1,137,932   
  6,000     

PT Indosat Tbk, ADR

     121,860   
  3,000     

SKY Perfect JSAT Holdings Inc.

     15,596   
    

 

 

 
       14,941,045   
    

 

 

 
 

Telecommunications:
Long Distance — 0.9%

  
  2,000     

AT&T Inc.

     67,640   
  50,000     

Oi SA, ADR

     92,000   
  3,000     

Oi SA, Cl. C, ADR

     5,820   
  24,000     

Philippine Long Distance Telephone Co., ADR

     1,628,160   
  13,000     

Sprint Corp.†

     80,730   
    

 

 

 
       1,874,350   
    

 

 

 
 

Telecommunications:
National — 5.4%

  
  5,000     

China Telecom Corp. Ltd., ADR

     247,150   
  5,000     

China Unicom Hong Kong Ltd., ADR

     77,100   
  63,000     

Deutsche Telekom AG, ADR

     919,800   
  16,000     

Elisa Oyj

     381,396   
  3,605     

Hellenic Telecommunications Organization SA†

     37,553   
  17,000     

Level 3 Communications Inc.†

     453,730   
  1,000     

Magyar Telekom Telecommunications plc, ADR

     6,900   
  5,000     

Nippon Telegraph & Telephone Corp.

     258,406   
  3,000     

Orange SA, ADR

     37,530   

Shares

        

Market

Value

 
  3,000     

PT Telekomunikasi Indonesia Persero Tbk, ADR

   $ 108,930   
  6,000     

Rostelecom OJSC, ADR

     112,440   
  28,000     

Swisscom AG, ADR

     1,346,240   
  6,000     

Telecom Argentina SA, ADR†

     107,700   
  385,000     

Telecom Italia SpA

     317,717   
  17,500     

Telefonica Brasil SA, ADR

     392,700   
  118,026     

Telefonica SA, ADR†

     1,827,042   
  18,000     

Telekom Austria AG

     150,929   
  15,172     

TeliaSonera AB

     116,245   
  2,400     

Telstra Corp. Ltd., ADR

     55,656   
  27,000     

tw telecom inc.†

     806,355   
  54,000     

Verizon Communications Inc.

     2,519,640   
  89,000     

VimpelCom Ltd., ADR

     1,045,750   
  8,000     

Ziggo BV

     324,035   
    

 

 

 
       11,650,944   
    

 

 

 
 

Telecommunications:
Regional — 2.2%

  
  6,000     

Bell Aliant Inc.(b)

     149,476   
  51,000     

Cincinnati Bell Inc.†

     138,720   
  33,000     

NII Holdings Inc.†

     200,310   
  32,000     

Primus Telecommunications Group Inc.

     108,480   
  84,000     

Telephone & Data Systems Inc.

     2,482,200   
  10,000     

TELUS Corp., New York

     331,200   
  41,000     

TELUS Corp., Toronto

     1,358,905   
    

 

 

 
       4,769,291   
    

 

 

 
 

Wireless Communications — 3.7%

  
  60,000     

America Movil SAB de CV, Cl. L, ADR

     1,188,600   
  19,000     

Global Telecom Holding, GDR†(c)

     59,641   
  240,000     

Jasmine International Public Co. Ltd.

     63,299   
  11,000     

Leap Wireless International Inc.†

     173,690   
  15,000     

Millicom International Cellular SA, SDR

     1,324,552   
  90,000     

NTT DoCoMo Inc.

     1,457,653   
  19,000     

Orascom Telecom Media and Technology Holding SAE, GDR(b)

     7,315   
  17,000     

ORBCOMM Inc.†

     89,590   
  34,000     

SK Telecom Co. Ltd., ADR

     771,800   
  4,203     

Tim Participacoes SA, ADR

     99,065   
  12,000     

T-Mobile US Inc.

     311,640   
  8,000     

Turkcell Iletisim Hizmetleri A/S, ADR†

     118,000   
  28,000     

United States Cellular Corp.

     1,274,840   
  30,000     

Vodafone Group plc, ADR

     1,055,400   
    

 

 

 
       7,995,085   
    

 

 

 
 

TOTAL DISTRIBUTION COMPANIES

     135,780,131   
    

 

 

 
 

COPYRIGHT/CREATIVITY COMPANIES — 34.9%

  
 

Business Services:
Advertising — 1.5%

  
  148,000     

Clear Channel Outdoor Holdings Inc., Cl. A†

     1,213,600   
  15,000     

Harte-Hanks Inc.

     132,450   
  6,000     

Havas SA

     46,901   
  10,000     

JC Decaux SA

     368,178   
  4,000     

Lamar Advertising Co., Cl. A†

     188,120   
 

 

See accompanying notes to schedule of investments.

 

3


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2013 (Unaudited)

 

 

Shares

       

Market

Value

 
 

COMMON STOCKS (Continued)

 
 

COPYRIGHT/CREATIVITY COMPANIES (Continued)

 
 

Business Services: Advertising (Continued)

 
  2,000     

Publicis Groupe SA

  $ 159,149   
  66,000     

The Interpublic Group of Companies Inc.

    1,133,880   
  32,000     

Tiger Media Inc.†

    40,960   
   

 

 

 
      3,283,238   
   

 

 

 
 

Computer Hardware — 1.0%

 
  4,800     

Apple Inc.

    2,288,400   
   

 

 

 
 

Computer Software and
Services — 10.1%

 
  75,000     

Activision Blizzard Inc.

    1,250,250   
  31,000     

Blucora Inc.†

    712,380   
  2,000     

Blue Nile Inc.†

    81,860   
  60,000     

EarthLink Inc.

    297,000   
  60,000     

eBay Inc.†

    3,347,400   
  107,000     

Electronic Arts Inc.†

    2,733,850   
  57,000     

Facebook Inc., Cl. A†

    2,863,680   
  3,700     

Google Inc., Cl. A†

    3,240,867   
  16,000     

Guidance Software Inc.†

    145,120   
  56,000     

Internap Network Services Corp.†

    389,200   
  10,000     

InterXion Holding NV†

    222,400   
  12,000     

Microsoft Corp.

    399,720   
  35,000     

RealD Inc.†

    245,000   
  185,000     

Yahoo! Inc.†

    6,134,600   
   

 

 

 
      22,063,327   
   

 

 

 
 

Consumer Products — 0.4%

 
  2,500     

Nintendo Co. Ltd.

    283,076   
  35,000     

Nintendo Co. Ltd., ADR

    494,200   
   

 

 

 
      777,276   
   

 

 

 
 

Electronics — 0.9%

 
  3,000     

IMAX Corp.†

    90,720   
  17,000     

Intel Corp.

    389,640   
  3,221     

Koninklijke Philips NV

    103,877   
  65,000     

Sony Corp., ADR

    1,398,800   
   

 

 

 
      1,983,037   
   

 

 

 
 

Entertainment — 10.7%

 
  14,500     

Ascent Capital Group Inc., Cl. A†

    1,168,990   
  22,000     

Crown Media Holdings Inc., Cl. A†

    67,760   
  8,000     

DreamWorks Animation SKG Inc., Cl. A†

    227,680   
  72,000     

GMM Grammy Public Co. Ltd.†

    36,598   
  25,000     

Live Nation Entertainment Inc.†

    463,750   
  36,250     

News Corp., Cl. A†

    582,175   
  3,000     

Rovi Corp.†

    57,510   
  17,000     

STV Group plc†

    70,455   
  13,000     

The Walt Disney Co.

    838,370   
  41,500     

Time Warner Inc.

    2,731,115   
  142,000     

Twenty-First Century Fox Inc., Cl. A

    4,757,000   
  52,000     

Twenty-First Century Fox Inc., Cl. B

    1,736,800   
  98,000     

Universal Entertainment Corp.

    2,084,725   

Shares

       

Market

Value

 
  56,000     

Viacom Inc., Cl. A

  $ 4,693,360   
  144,000     

Vivendi SA

    3,312,752   
  40,000     

World Wrestling Entertainment Inc., Cl. A

    406,800   
   

 

 

 
      23,235,840   
   

 

 

 
 

Hotels and Gaming — 8.1%

 
  148,000     

Boyd Gaming Corp.†

    2,094,200   
  500     

Churchill Downs Inc.

    43,260   
  4,200     

Greek Organization of Football Prognostics SA

    46,876   
  2,000     

Hyatt Hotels Corp., Cl. A†

    85,920   
  62,500     

International Game Technology

    1,183,125   
  15,000     

Interval Leisure Group Inc.

    354,450   
  570,000     

Ladbrokes plc

    1,561,341   
  42,000     

Las Vegas Sands Corp.

    2,789,640   
  110,000     

Mandarin Oriental International Ltd.

    178,200   
  52,000     

Melco Crown Entertainment Ltd., ADR†

    1,655,160   
  25,000     

MGM China Holdings Ltd.

    83,001   
  12,500     

Penn National Gaming Inc.†

    692,000   
  91,186     

Ryman Hospitality Properties Inc.

    3,146,829   
  5,100     

Starwood Hotels & Resorts Worldwide Inc.

    338,895   
  21,000     

Wynn Resorts Ltd.

    3,318,210   
   

 

 

 
      17,571,107   
   

 

 

 
 

Publishing — 2.2%

 
  15,000     

AH Belo Corp., Cl. A

    117,750   
  20,000     

Arnoldo Mondadori Editore SpA†

    25,772   
  68,000     

Belo Corp., Cl. A

    931,600   
  30,000     

Il Sole 24 Ore SpA†

    22,160   
  800     

John Wiley & Sons Inc., Cl. B

    38,208   
  10,000     

Media General Inc., Cl. A†

    142,600   
  11,500     

Meredith Corp.

    547,630   
  5,263     

Nation International Edutainment Public Co. Ltd.

    713   
  1,000,000     

Nation Multimedia Group Public Co. Ltd.†

    31,969   
  41,000     

News Corp., Cl. B†

    673,630   
  13,000     

Nielsen Holdings NV

    473,850   
  974,000     

Post Publishing Public Co. Ltd.

    186,829   
  1,000     

Scholastic Corp.

    28,650   
  247,000     

Singapore Press Holdings Ltd.

    809,190   
  600     

Spir Communication†

    10,641   
  10,000     

Telegraaf Media Groep NV

    175,871   
  6,000     

The E.W. Scripps Co., Cl. A†

    110,100   
  6,000     

Tribune Co.†

    378,540   
  9,091     

UBM plc

    105,157   
  3,000     

Wolters Kluwer NV

    77,336   
   

 

 

 
      4,888,196   
   

 

 

 
 

TOTAL COPYRIGHT/CREATIVITY COMPANIES

    76,090,421   
   

 

 

 
 

TOTAL COMMON STOCKS

    211,870,552   
   

 

 

 
 

 

See accompanying notes to schedule of investments.

 

4


The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — September 30, 2013 (Unaudited)

 

 

Shares

       

Market
Value

 
 

RIGHTS — 0.0%

 
 

DISTRIBUTION COMPANIES — 0.0%

 
 

Wireless Communications — 0.0%

 
  4,000     

Nextwave Wireless Inc., CVR†

  $ 1,760   
   

 

 

 
 

WARRANTS — 0.0%

 
 

DISTRIBUTION COMPANIES — 0.0%

 
 

Broadcasting — 0.0%

 
  10,244     

Media Prima Berhad, expire 12/31/14†

    2,828   
   

 

 

 
 

Real Estate — 0.0%

 
  1,000     

Malaysian Resources Corp. Bhd, expire 09/19/18†

    80   
   

 

 

 
 

TOTAL WARRANTS

    2,908   
   

 

 

 

Principal

Amount

           
 

U.S. GOVERNMENT
OBLIGATIONS — 2.7%

 
  $5,859,000     

U.S. Treasury Bills,
0.010% to 0.075%††,
10/03/13 to 02/06/14

    5,858,813   
   

 

 

 
 

TOTAL INVESTMENTS — 100.0%
(Cost $113,424,263)

  $ 217,734,033   
   

 

 

 
 

Aggregate tax cost

  $ 116,517,747   
   

 

 

 
 

Gross unrealized appreciation

  $ 110,291,147   
 

Gross unrealized depreciation

    (9,074,861
   

 

 

 
 

Net unrealized appreciation/depreciation

  $ 101,216,286   
   

 

 

 

 

(a)

Denoted in units.

(b)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the market value of Rule 144A securities amounted to $156,791 or 0.07% of total investments.

(c)

Security purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2013, the market value of the Regulation S security amounted to $59,641 or 0.03% of total investments, which was valued under methods approved by the Board of Directors as follows:

 

Acquisition
Shares

 

Issuer

  Acquisition
Date
  Acquisition
Cost
  09/30/13
Carrying
Value
Per Share
 
19,000  

Global Telecom Holding, GDR

  11/16/09   $75,678   $ 3.1390   

 

  

Non-income producing security.

††

  

Represents annualized yield at date of purchase.

ADR

  

American Depositary Receipt

CPO

  

Ordinary Participation Certificate

CVR

  

Contingent Value Right

GDR

  

Global Depositary Receipt

OJSC

  

Open Joint Stock Company

SDR

  

Swedish Depositary Receipt

 

Geographic Diversification

   % of
Total
Investments
   

Market
Value

 

North America

     77.8   $ 169,338,570   

Europe

     9.8        21,429,701   

Latin America

     4.4        9,520,181   

Japan

     3.7        7,994,987   

Asia/Pacific

     3.2        7,070,871   

South Africa

     1.1        2,311,795   

Africa/Middle East

     0.0        67,928   
  

 

 

   

 

 

 

Total Investments

     100.0   $ 217,734,033   
  

 

 

   

 

 

 
 

 

See accompanying notes to schedule of investments.

 

5


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited)

 

The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its schedule of investments.

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

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

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

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

  

Level 1

 

 

quoted prices in active markets for identical securities;

  

Level 2

 

 

other significant observable inputs (including quoted prices for similar securities, interest rates,

  

prepayment speeds, credit risk, etc.); and

  

Level 3

 

 

significant unobservable inputs (including the Fund’s determinations as to the fair value of

  

investments).

 

6


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2013 is as follows:

 

     Valuation Inputs     
     Level 1
Quoted Prices
   Level 2 Other Significant
Observable Inputs
   Level 3 Significant
Unobservable Inputs
   Total Market Value
at 9/30/13

INVESTMENTS IN SECURITIES:

ASSETS (Market Value):

                   

Common Stocks:

                   

Distribution Companies

                   

Broadcasting

     $ 28,388,032        $ 86,634                 $ 28,474,666  

Financial Services

       1,811,335                 $ 971          1,812,306  

Wireless Communications

       7,931,786                   63,299          7,995,085  

Other Industries (a)

       97,498,074                            97,498,074  

Copyright/Creativity Companies

                   

Publishing

       4,701,367          186,829                   4,888,196  

Other Industries (a)

       71,202,225                              71,202,225  

Total Common Stocks

       211,532,819          273,463          64,270          211,870,552  

Rights (a)

                         1,760          1,760  

Warrants (a)

       2,908                            2,908  

U.S. Government Obligations

                5,858,813                   5,858,813  

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $ 211,535,727        $ 6,132,276        $ 66,030        $ 217,734,033  

 

(a)

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

The Fund did not have transfers between Level 1 and Level 2 during the period ended September 30, 2013. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

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

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

 

7


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

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

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

The Fund’s derivative contracts held at September 30, 2013, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements. The Fund may enter into interest rate swap or cap transactions for the purposes of hedging or protecting its exposure to interest rate movements and movements in the securities markets. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an interest rate swap, the Fund would agree to pay periodically to the counterparty a fixed rate payment in exchange for the counterparty agreeing to pay to the Fund periodically a variable rate payment that is intended to approximate the Fund’s variable rate payment obligation on the Series C Auction Rate Cumulative Preferred Stock (“Series C Stock”). Interest rate swaps transactions introduce additional risk because the Fund would remain obligated to pay preferred stock dividends when due in accordance with the Articles Supplementary even if the counterparty defaulted. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. At September 30, 2013, the Fund held no investments in interest rate swap agreements.

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in

 

8


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

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

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

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

 

9


The Gabelli Multimedia Trust Inc.

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

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

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted securities the Fund held as of September 30, 2013, refer to the Schedule of Investments.

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

At December 31, 2012, the Fund had net capital loss carryforwards for federal income tax purposes which are available to reduce future required distributions of net capital gains to shareholders. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward for an unlimited period capital losses incurred in years beginning after December 22, 2010. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of the rule, post-enactment capital losses that are carried forward will retain their character as either short term or long term capital losses rather than being considered all short term as under previous law. $8,773,147 of capital loss carryforwards are available through 2017.

 

10


THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

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

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.

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

 

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

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

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

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

 

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


 

THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, New York 10580-1422

t   800-GABELLI (800-422-3554)

f   914-921-5118

e   info@gabelli.com

     GABELLI.COM

 

 

 

DIRECTORS

 

Mario J. Gabelli, CFA

Chairman &

Chief Executive Officer,

GAMCO Investors, Inc.

 

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

 

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

 

Frank J. Fahrenkopf, Jr.

Former President &

Chief Executive Officer,

American Gaming Association

 

Christopher J. Marangi

Senior Vice President,

G.research, Inc.

 

Kuni Nakamura

President,

Advanced Polymer, Inc.

 

Anthony R. Pustorino

Certified Public Accountant,

Professor Emeritus,

Pace University

 

Werner J. Roeder, MD

Medical Director,

Lawrence Hospital

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

 

OFFICERS

 

Bruce N. Alpert

President &

Acting Chief Compliance Officer

 

Agnes Mullady

Treasurer & Secretary

 

Carter W. Austin

Vice President & Ombudsman

 

Laurissa M. Martire

Vice President & Ombudsman

 

INVESTMENT ADVISER

 

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

 

CUSTODIAN

 

State Street Bank and Trust

Company

 

COUNSEL

 

Paul Hastings LLP

 

TRANSFER AGENT AND

REGISTRAR

 

Computershare Trust Company, N.A.

 

 

 

 

GGT Q3/2013

LOGO

 


Item 2. Controls and Procedures.

 

  (a)

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

 

  (b)

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

Item 3. Exhibits.

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


SIGNATURES

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

 

(Registrant)  

The Gabelli Multimedia Trust Inc.

 

By (Signature and Title)*  

/s/ Bruce N. Alpert

 

Bruce N. Alpert, Principal Executive Officer

 

Date  

11/20/2013

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

 

By (Signature and Title)*  

/s/ Bruce N. Alpert

 

Bruce N. Alpert, Principal Executive Officer

 

Date  

11/20/2013

 

By (Signature and Title)*  

/s/ Agnes Mullady

 

Agnes Mullady, Principal Financial Officer and Treasurer

 

Date  

11/20/2013

 

* 

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