The
Gabelli Multimedia Trust Inc.
Schedule
of Investments (Continued) — June 30, 2021 (Unaudited)
Acquisition
Shares
|
|
Issuer
|
|
Acquisition
Date
|
|
Acquisition
Cost
|
|
06/30/21
Carrying
Value
Per Share
|
|
550,000
|
|
Wow Unlimited Media Inc.
|
|
05/05/18 - 10/01/19
|
|
$535,492
|
|
$0.7744
|
|
|
(c)
|
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 yield(s) at date(s) 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
|
|
% of Total
Investments
|
|
Market
Value
|
|
|
North America
|
|
|
77.7
|
%
|
|
|
$
|
264,872,920
|
|
|
Europe
|
|
10.1
|
|
|
|
34,323,266
|
|
|
Japan
|
|
6.6
|
|
|
|
22,316,124
|
|
|
Latin America
|
|
2.4
|
|
|
|
7,998,191
|
|
|
South Africa
|
|
1.7
|
|
|
|
5,934,509
|
|
|
Asia/Pacific
|
|
1.5
|
|
|
|
5,233,319
|
|
|
Africa/Middle East
|
|
0.0
|
*
|
|
|
64,033
|
|
|
Total Investments
|
|
|
100.0
|
%
|
|
|
$
|
340,742,362
|
|
|
|
*
|
Amount
represents less than 0.05%.
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Statement
of Assets and Liabilities
June 30, 2021 (Unaudited)
|
Assets:
|
|
|
|
|
Investments, at value (cost $243,996,885)
|
|
$
|
340,742,362
|
|
|
Foreign currency, at value (cost $29,500)
|
|
|
29,375
|
|
|
Cash
|
|
|
86,437
|
|
|
Deposit at brokers
|
|
|
118,092
|
|
|
Dividends receivable
|
|
|
196,653
|
|
|
Deferred offering expense
|
|
|
117,237
|
|
|
Prepaid expenses
|
|
|
3,864
|
|
|
Total Assets
|
|
|
341,294,020
|
|
|
Liabilities:
|
|
|
|
|
|
Distributions payable
|
|
|
70,948
|
|
|
Payable for investments purchased
|
|
|
4,630,533
|
|
|
Payable for investment advisory fees
|
|
|
276,926
|
|
|
Payable for payroll expenses
|
|
|
17,094
|
|
|
Payable for accounting fees
|
|
|
3,750
|
|
|
Other accrued expenses
|
|
|
178,110
|
|
|
Total Liabilities
|
|
|
5,177,361
|
|
|
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)
|
|
|
250,000
|
|
|
Series E Cumulative Preferred Stock (5.125%, $25 liquidation value, 2,000,000 shares authorized with 1,996,700 shares issued and outstanding)
|
|
|
49,917,500
|
|
|
Series G Cumulative Preferred Stock (5.125%, $25 liquidation value, 2,000,000 shares authorized with 1,990,201 shares issued and outstanding)
|
|
|
49,755,025
|
|
|
Total Preferred Stock
|
|
|
99,922,525
|
|
|
Net Assets Attributable to Common Stockholders
|
|
$
|
236,194,134
|
|
|
|
|
|
|
|
|
Net Assets Attributable to Common Stockholders Consist of:
|
|
|
|
|
|
Paid-in capital
|
|
$
|
143,068,143
|
|
|
Total distributable earnings
|
|
|
93,125,991
|
|
|
Net Assets
|
|
$
|
236,194,134
|
|
|
|
|
|
|
|
|
Net Asset Value per Common Share:
|
|
|
|
|
|
($236,194,134 ÷ 25,383,076 shares outstanding at $0.001 par value; 196,750,000 shares authorized)
|
|
$
|
9.31
|
|
Statement
of Operations
For
the Six Months Ended June 30, 2020 (Unaudited)
|
Investment Income:
|
|
|
|
|
Dividends (net of foreign withholding taxes of $132,681)
|
|
$
|
1,354,935
|
|
|
Non-cash dividends
|
|
|
1,184,314
|
|
|
Interest
|
|
|
10,352
|
|
|
Total Investment Income
|
|
|
2,549,601
|
|
|
Expenses:
|
|
|
|
|
|
Investment advisory fees
|
|
|
1,633,578
|
|
|
Stockholder communications expenses
|
|
|
75,909
|
|
|
Legal and audit fees
|
|
|
48,017
|
|
|
Payroll expenses
|
|
|
46,005
|
|
|
Stockholder services fees
|
|
|
43,344
|
|
|
Directors’ fees
|
|
|
43,153
|
|
|
Custodian fees
|
|
|
24,537
|
|
|
Accounting fees
|
|
|
22,500
|
|
|
Miscellaneous expenses
|
|
|
44,370
|
|
|
Total Expenses
|
|
|
1,981,413
|
|
|
Less:
|
|
|
|
|
|
Expenses paid indirectly by broker (See Note 3)
|
|
|
(1,597
|
)
|
|
Net Expenses
|
|
|
1,979,816
|
|
|
Net Investment Income
|
|
|
569,785
|
|
|
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
|
|
|
|
|
|
Net realized gain on investments
|
|
|
10,207,221
|
|
|
Net realized loss on foreign currency transactions
|
|
|
(1,504
|
)
|
|
|
|
|
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
10,205,717
|
|
|
Net change in unrealized appreciation/depreciation:
|
|
|
|
|
|
on investments
|
|
|
32,117,130
|
|
|
on foreign currency translations
|
|
|
(1,370
|
)
|
|
|
|
|
|
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency translations
|
|
|
32,115,760
|
|
|
Net Realized and Unrealized Gain on Investments and Foreign Currency
|
|
|
42,321,477
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
42,891,262
|
|
|
Total Distributions to Preferred Stockholders
|
|
|
(2,554,259
|
)
|
|
Net Increase in Net Assets Attributable to Common Stockholders Resulting from Operations
|
|
$
|
40,337,003
|
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Statement
of Changes in Net Assets Attributable to Common Stockholders
|
|
|
Six Months Ended
June 30, 2021
(Unaudited)
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$
|
569,785
|
|
|
|
$
|
388,080
|
|
|
Net realized gain on investments and foreign currency transactions
|
|
|
|
10,205,717
|
|
|
|
|
26,295,164
|
|
|
Net change in unrealized appreciation/depreciation on investments and foreign currency translations
|
|
|
|
32,115,760
|
|
|
|
|
6,614,652
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
|
42,891,262
|
|
|
|
|
33,297,896
|
|
|
Distributions to Preferred Stockholders
|
|
|
|
(2,554,259
|
)*
|
|
|
|
(5,114,064
|
)
|
|
Net Increase in Net Assets Attributable to Common Stockholders Resulting from Operations
|
|
|
|
40,337,003
|
|
|
|
|
28,183,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated earnings
|
|
|
|
(8,018,539
|
)*
|
|
|
|
(21,344,313
|
)
|
|
Return of capital
|
|
|
|
(3,111,294
|
)*
|
|
|
|
(702,849
|
)
|
|
Total Distributions to Common Stockholders
|
|
|
|
(11,129,833
|
)
|
|
|
|
(22,047,162
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from common shares issued upon reinvestment of distributions
|
|
|
|
1,149,642
|
|
|
|
|
2,261,390
|
|
|
Net increase in net assets from redemption of preferred shares
|
|
|
|
—
|
|
|
|
|
29,148
|
|
|
Adjustment of offering costs for preferred shares charged to paid-in capital
|
|
|
|
83,560
|
|
|
|
|
—
|
|
|
Net Increase in Net Assets from Fund Share Transactions
|
|
|
|
1,233,202
|
|
|
|
|
2,290,538
|
|
|
Net Increase in Net Assets Attributable to Common Stockholders
|
|
|
|
30,440,372
|
|
|
|
|
8,427,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Attributable to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
205,753,762
|
|
|
|
|
197,326,554
|
|
|
End of period
|
|
|
$
|
236,194,134
|
|
|
|
$
|
205,753,762
|
|
|
|
*
|
Based
on year to date book income. Amounts are subject to change and recharacterization at year end.
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Financial
Highlights
Selected
data for a common share outstanding throughout each period:
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
Year
Ended December 31,
|
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Operating
Performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, beginning of year
|
|
$
|
8.14
|
|
|
$
|
7.93
|
|
|
$
|
7.04
|
|
|
$
|
9.34
|
|
|
$
|
8.13
|
|
|
$
|
8.36
|
|
|
Net investment income
|
|
|
0.02
|
(a)
|
|
|
0.02
|
|
|
|
0.13
|
(b)
|
|
|
0.03
|
|
|
|
0.01
|
|
|
|
0.05
|
|
|
Net realized and unrealized
gain/(loss) on investments and foreign currency transactions
|
|
|
1.69
|
|
|
|
1.27
|
|
|
|
1.86
|
|
|
|
(1.28
|
)
|
|
|
2.11
|
|
|
|
0.60
|
|
|
Total from investment
operations
|
|
|
1.71
|
|
|
|
1.29
|
|
|
|
1.99
|
|
|
|
(1.25
|
)
|
|
|
2.12
|
|
|
|
0.65
|
|
|
Distributions
to Preferred Stockholders: (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.03
|
)*
|
|
|
(0.00
|
)(d)
|
|
|
(0.02
|
)
|
|
|
(0.00
|
)(d)
|
|
|
(0.00
|
)(d)
|
|
|
(0.00
|
)(d)
|
|
Net realized gain
|
|
|
(0.07
|
)*
|
|
|
(0.20
|
)
|
|
|
(0.13
|
)
|
|
|
(0.15
|
)
|
|
|
(0.08
|
)
|
|
|
(0.05
|
)
|
|
Total distributions
to preferred stockholders.
|
|
|
(0.10
|
)
|
|
|
(0.20
|
)
|
|
|
(0.15
|
)
|
|
|
(0.15
|
)
|
|
|
(0.08
|
)
|
|
|
(0.05
|
)
|
|
Net
Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from Operations
|
|
|
1.61
|
|
|
|
1.09
|
|
|
|
1.84
|
|
|
|
(1.40
|
)
|
|
|
2.04
|
|
|
|
0.60
|
|
|
Distributions
to Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.01
|
)*
|
|
|
(0.02
|
)
|
|
|
(0.12
|
)
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.06
|
)
|
|
Net realized gain
|
|
|
(0.30
|
)*
|
|
|
(0.83
|
)
|
|
|
(0.71
|
)
|
|
|
(0.89
|
)
|
|
|
(0.73
|
)
|
|
|
(0.74
|
)
|
|
Return of capital
|
|
|
(0.13
|
)*
|
|
|
(0.03
|
)
|
|
|
(0.05
|
)
|
|
|
—
|
|
|
|
(0.12
|
)
|
|
|
(0.03
|
)
|
|
Total distributions
to common stockholders
|
|
|
(0.44
|
)
|
|
|
(0.88
|
)
|
|
|
(0.88
|
)
|
|
|
(0.90
|
)
|
|
|
(0.88
|
)
|
|
|
(0.83
|
)
|
|
Fund Share Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in net asset
value from common shares issued upon reinvestment of distributions
|
|
|
0.00
|
(d)
|
|
|
0.00
|
(d)
|
|
|
0.00
|
(d)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Increase in net asset
value from repurchase of common shares
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
(d)
|
|
|
—
|
|
|
Increase in net asset
value from redemption of preferred shares
|
|
|
—
|
|
|
|
0.00
|
(d)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.12
|
|
|
|
—
|
|
|
Offering costs and adjustment
to offering costs for preferred shares charged to paid-in capital
|
|
|
0.00
|
(d)
|
|
|
—
|
|
|
|
(0.07
|
)
|
|
|
(0.00
|
)(d)
|
|
|
(0.07
|
)
|
|
|
—
|
|
|
Total Fund share transactions
|
|
|
0.00
|
(d)
|
|
|
0.00
|
(d)
|
|
|
(0.07
|
)
|
|
|
(0.00
|
)(d)
|
|
|
0.05
|
|
|
|
—
|
|
|
Net
Asset Value Attributable to Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders, End of
Period
|
|
$
|
9.31
|
|
|
$
|
8.14
|
|
|
$
|
7.93
|
|
|
$
|
7.04
|
|
|
$
|
9.34
|
|
|
$
|
8.13
|
|
|
NAV total return †
|
|
|
19.80
|
%
|
|
|
18.58
|
%
|
|
|
25.86
|
%
|
|
|
(16.54
|
)%
|
|
|
26.50
|
%
|
|
|
7.59
|
%
|
|
Market value, end of period
|
|
$
|
11.19
|
|
|
$
|
7.96
|
|
|
$
|
8.02
|
|
|
$
|
7.06
|
|
|
$
|
9.20
|
|
|
$
|
7.24
|
|
|
Investment total return
††
|
|
|
47.04
|
%
|
|
|
14.15
|
%
|
|
|
26.67
|
%
|
|
|
(14.93
|
)%
|
|
|
40.21
|
%
|
|
|
7.97
|
%
|
|
Ratios
to Average Net Assets and Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets including
liquidation value of preferred shares, end of period (in 000’s)
|
|
$
|
336,117
|
|
|
$
|
305,676
|
|
|
$
|
297,577
|
|
|
$
|
243,309
|
|
|
$
|
297,503
|
|
|
$
|
232,399
|
|
|
Net assets attributable
to common shares, end of period (in 000’s)
|
|
$
|
236,194
|
|
|
$
|
205,754
|
|
|
$
|
197,327
|
|
|
$
|
173,284
|
|
|
$
|
227,477
|
|
|
$
|
197,623
|
|
|
Ratio of net investment
income to average net assets attributable to common shares before preferred share distributions
|
|
|
0.50
|
%(a)(e)
|
|
|
0.23
|
%
|
|
|
1.62
|
%(b)
|
|
|
0.39
|
%
|
|
|
0.13
|
%
|
|
|
0.70
|
%
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Financial
Highlights (Continued)
Selected
data for a common share outstanding throughout each period:
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30, 2021
|
|
|
Year
Ended December 31,
|
|
|
|
|
(Unaudited)
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Ratio of
operating expenses to average net assets attributable to common shares before fees waived (f)(g)
|
|
|
1.74
|
%(e)
|
|
|
2.06
|
%
|
|
|
1.69
|
%(h)
|
|
|
1.62
|
%
|
|
|
1.45
|
%
|
|
|
1.49
|
%(i)
|
|
Ratio of operating expenses
to average net assets attributable to common shares net of advisory fee reduction, if any (f)(j).
|
|
|
1.74
|
%(e)
|
|
|
2.06
|
%
|
|
|
1.69
|
%(h)
|
|
|
1.53
|
%
|
|
|
1.45
|
%
|
|
|
1.49
|
%(i)
|
|
Portfolio turnover rate
|
|
|
9
|
%
|
|
|
29
|
%
|
|
|
18
|
%
|
|
|
21
|
%
|
|
|
17
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000%
Series B Preferred(k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
19,775
|
|
|
$
|
19,775
|
|
|
$
|
19,775
|
|
|
Total shares outstanding
(in 000’s)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
791
|
|
|
|
791
|
|
|
|
791
|
|
|
Liquidation preference per share
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
Average market value (l)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
25.81
|
|
|
$
|
26.36
|
|
|
$
|
26.42
|
|
|
Asset coverage per share (m)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
86.86
|
|
|
$
|
106.21
|
|
|
$
|
167.07
|
|
|
Auction
Market Series C Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
$
|
250
|
|
|
$
|
250
|
|
|
$
|
250
|
|
|
$
|
250
|
|
|
$
|
250
|
|
|
$
|
15,000
|
|
|
Total shares outstanding
(in 000’s)
|
|
|
0
|
(n)
|
|
|
0
|
(n)
|
|
|
0
|
(n)
|
|
|
0
|
(n)
|
|
|
0
|
(n)
|
|
|
1
|
|
|
Liquidation preference
per share(o)
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
Liquidation value
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
Asset coverage per share (m)
|
|
$
|
84,094
|
|
|
$
|
76,478
|
|
|
$
|
74,209
|
|
|
$
|
86,865
|
|
|
$
|
106,212
|
|
|
$
|
167,071
|
|
|
5.125%
Series E Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
$
|
49,918
|
|
|
$
|
49,918
|
|
|
$
|
50,000
|
|
|
$
|
50,000
|
|
|
$
|
50,000
|
|
|
|
—
|
|
|
Total shares outstanding
(in 000’s)
|
|
|
1,997
|
|
|
|
1,997
|
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
—
|
|
|
Liquidation preference per share
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
|
—
|
|
|
Average market value (l).
|
|
$
|
25.92
|
|
|
$
|
25.55
|
|
|
$
|
24.88
|
|
|
$
|
23.80
|
|
|
$
|
24.98
|
|
|
|
—
|
|
|
Asset coverage per share (m)
|
|
$
|
84.09
|
|
|
$
|
76.48
|
|
|
$
|
74.21
|
|
|
$
|
86.86
|
|
|
$
|
106.21
|
|
|
|
—
|
|
|
5.125%
Series G Preferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value, end of period (in 000’s)
|
|
$
|
49,755
|
|
|
$
|
49,755
|
|
|
$
|
50,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total shares outstanding
(in 000’s)
|
|
|
1,990
|
|
|
|
1,990
|
|
|
|
2,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Liquidation preference per share
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
$
|
25.00
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Average market value (l)
|
|
$
|
26.20
|
|
|
$
|
25.61
|
|
|
$
|
25.40
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset coverage per share (m)
|
|
$
|
84.09
|
|
|
$
|
76.48
|
|
|
$
|
74.21
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Asset
Coverage (p)
|
|
|
336
|
%
|
|
|
306
|
%
|
|
|
297
|
%
|
|
|
347
|
%
|
|
|
425
|
%
|
|
|
668
|
%
|
|
|
†
|
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.
|
|
|
*
|
Based
on year to date book income. Amounts are subject to change and recharacterization at year end.
|
|
|
(a)
|
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 (0.54)%.
|
|
|
(b)
|
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%.
|
|
|
(c)
|
Calculated
based on average common shares outstanding on the record dates throughout the periods.
|
|
|
(d)
|
Amount
represents less than $0.005 per share.
|
|
|
(f)
|
The
Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For all fiscal years presented
there was no impact on the expense ratios.
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Financial
Highlights (Continued)
|
|
(g)
|
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, 2021 and the years ended December 31, 2020, 2019, 2018, 2017, and 2016 would have been 1.21%, 1.30%,
1.25%, 1.22%, 1.23%, and 1.27%, respectively.
|
|
|
(h)
|
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.
|
|
|
(i)
|
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.
|
|
|
(j)
|
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, 2021 and the years ended December 31, 2020, 2019, 2018, 2017, and 2016 would have been 1.21%, 1.30%,
1.25%, 1.15%, 1.23%, and 1.27%, respectively.
|
|
|
(k)
|
The
Fund redeemed and retired all its outstanding Series B Preferred Shares on December 26, 2019.
|
|
|
(l)
|
Based
on weekly prices.
|
|
|
(m)
|
Asset
coverage per share is calculated by combining all series of preferred stock.
|
|
|
(n)
|
Actual
number of shares outstanding is 10.
|
|
|
(o)
|
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.
|
|
|
(p)
|
Asset
coverage is calculated by combining all series of preferred stock.
|
See
accompanying notes to financial statements.
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited)
1.
Organization. The Gabelli Multimedia Trust Inc. (the Fund) is a non-diversified closed-end management investment company
organized as a Maryland corporation on March 31, 1994 and registered under the Investment Company Act of 1940, as amended
(the 1940 Act). The Fund commenced investment operations on November 15, 1994.
The
Fund’s investment objective is long term growth of capital. The Fund will invest at least 80% of its assets, under normal
market conditions, in common stock and other securities, including convertible securities, preferred stock, options, and warrants
of companies in the telecommunications, media, publishing, and entertainment industries (the 80% Policy). The 80% Policy may be
changed without 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.
The
global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations,
regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially
impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its
ability to achieve its investment objectives.
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
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
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. 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
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
The
summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2021
is as follows:
|
|
|
Valuation Inputs
|
|
|
|
|
|
|
|
Level 1
Quoted Prices
|
|
|
Level 2
Other Significant
Observable Inputs
|
|
|
Level 3 Significant
Unobservable Inputs (a)
|
|
|
Total Market Value
at 06/30/21
|
|
|
INVESTMENTS IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copyright/Creativity Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer Software and Services
|
|
$
|
37,114,510
|
|
|
|
—
|
|
|
$
|
200
|
|
|
$
|
37,114,710
|
|
|
Consumer Products
|
|
|
3,762,379
|
|
|
$
|
4,971,727
|
|
|
|
—
|
|
|
|
8,734,106
|
|
|
Publishing
|
|
|
6,016,158
|
|
|
|
33,429
|
|
|
|
4,992
|
|
|
|
6,054,579
|
|
|
Other Industries (b)
|
|
|
77,099,467
|
|
|
|
—
|
|
|
|
—
|
|
|
|
77,099,467
|
|
|
Distribution Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcasting
|
|
|
32,253,369
|
|
|
|
14,588
|
|
|
|
—
|
|
|
|
32,267,957
|
|
|
Business Services
|
|
|
5,658,124
|
|
|
|
—
|
|
|
|
664
|
|
|
|
5,658,788
|
|
|
Entertainment
|
|
|
38,791,724
|
|
|
|
425,944
|
|
|
|
—
|
|
|
|
39,217,668
|
|
|
Financial Services
|
|
|
11,284,917
|
|
|
|
—
|
|
|
|
4,200
|
|
|
|
11,289,117
|
|
|
Real Estate
|
|
|
5,055,150
|
|
|
|
—
|
|
|
|
207
|
|
|
|
5,055,357
|
|
|
Telecommunications: National
|
|
|
14,747,720
|
|
|
|
51,992
|
|
|
|
—
|
|
|
|
14,799,712
|
|
|
Wireless Communications
|
|
|
13,175,337
|
|
|
|
—
|
|
|
|
35,203
|
|
|
|
13,210,540
|
|
|
Other Industries (b)
|
|
|
71,673,316
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71,673,316
|
|
|
Total Common Stocks
|
|
|
316,632,171
|
|
|
|
5,497,680
|
|
|
|
45,466
|
|
|
|
322,175,317
|
|
|
Closed-End Funds
|
|
|
—
|
|
|
|
116,400
|
|
|
|
—
|
|
|
|
116,400
|
|
|
Preferred Stocks (b)
|
|
|
1,129,350
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,129,350
|
|
|
Rights (b)
|
|
|
—
|
|
|
|
—
|
|
|
|
0
|
|
|
|
0
|
|
|
Warrants (b)
|
|
|
30,763
|
|
|
|
—
|
|
|
|
—
|
|
|
|
30,763
|
|
|
U.S. Government Obligations
|
|
|
—
|
|
|
|
17,290,532
|
|
|
|
—
|
|
|
|
17,290,532
|
|
|
TOTAL INVESTMENTS IN SECURITIES – ASSETS
|
|
$
|
317,792,284
|
|
|
$
|
22,904,612
|
|
|
$
|
45,466
|
|
|
$
|
340,742,362
|
|
|
|
(a)
|
Level
3 securities are valued at last available closing price. 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.
|
|
|
(b)
|
Please
refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
|
During
the six months ended June 30, 2021, the Fund did not have material 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
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
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. When fair valuing a security, factors to consider include
recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of
valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do
not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The
circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.
The
Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include
backtesting the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Investments
in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities
that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940
Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. 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, 2021, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was approximately less than
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.
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
Foreign
Taxes. The Fund may be
subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The
Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Restricted
Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted
securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted
securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than
the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities
may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among
qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards
established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities,
and, accordingly, the Board will monitor their liquidity. For restricted securities the Fund held as of June 30, 2021, 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 or amortized to earliest call date,
if applicable. 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
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
The
tax character of distributions paid during the year ended December 31, 2020 was as follows:
|
|
|
Common
|
|
|
Preferred
|
|
|
Distributions paid from:
|
|
|
|
|
|
|
|
|
|
Ordinary income (inclusive of short term capital gains)
|
|
$
|
1,780,999
|
|
|
$
|
426,724
|
|
|
Long term capital gains
|
|
|
19,563,314
|
|
|
|
4,687,340
|
|
|
Return of capital
|
|
|
702,849
|
|
|
|
—
|
|
|
Total distributions paid
|
|
$
|
22,047,162
|
|
|
$
|
5,114,064
|
|
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, 2021:
|
|
|
Cost
|
|
Gross
Unrealized
Appreciation
|
|
Gross
Unrealized
Depreciation
|
|
Net Unrealized
Appreciation
|
|
Investments
|
|
$246,210,758
|
|
$105,814,366
|
|
$(11,282,762)
|
|
$94,531,604
|
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. For the six months ended June 30, 2021, the Fund
did not incur any income tax, interest, or penalties. As of June 30, 2021, 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, 2021, the Fund’s total return on the NAV of the common shares exceeded the stated dividend rate of Series C Preferred
Stock.
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
During
the six months ended June 30, 2021, the Fund paid $3,098 in brokerage commissions on security trades to G.research, LLC, an affiliate
of the Adviser.
During
the six months ended June 30, 2021, 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 $1,597.
The
cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the
Adviser. 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, 2021, 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, 2021, the Fund accrued $46,005 in payroll expenses in the Statement of Operations.
The
Fund pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director
and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors
who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the
Fund.
4.
Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2021, other than short term
securities and U.S. Government obligations, aggregated $28,102,273 and $27,566,719, 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, 2021 and the year ended December 31, 2020, the Fund did not repurchase
any of its common shares.
Transactions
in shares of common stock were as follows:
|
|
|
Six
Months Ended
June 30,
2021
(Unaudited)
|
|
|
Year
Ended
December 31, 2020
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets from common shares
issued upon reinvestment of distributions
|
|
118,937
|
|
|
$1,149,642
|
|
|
365,624
|
|
|
$2,261,390
|
|
The
Fund has an effective shelf registration authorizing the offering of an additional $400 million of common or preferred shares.
On June 25, 2021, the Board announced a rights offering (the Offering) with a record date of July 13, 2021 and an expiration date
of August 25, 2021, unless extended. Under the terms of the Offering,
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
each
record date shareholder will receive one transferable right (the Right), for each share of common stock held. Four Rights plus
$9.50 will be required to purchase one additional share of common stock (the Primary Subscription). Record date shareholders who
fully exercise their Primary Subscription Rights will be eligible for an over-subscription privilege entitling these shareholders
to subscribe, subject to certain limitations and a pro-rata allotment, for any additional shares of common stock not purchased
pursuant to the Primary Subscription. Rights acquired in the secondary market may not participate in the over-subscription privilege.
The
Fund’s Articles of Incorporation authorize the issuance of up to 4,001,000 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, 2021, the Fund did not repurchase any Preferred Stock.
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)
The
following table summarizes Cumulative Preferred Stock information:
|
Series
|
|
Issue Date
|
|
Authorized
|
|
Number of
Shares
Outstanding at
6/30/2021
|
|
Net Proceeds
|
|
2021 Dividend
Rate Range
|
|
Dividend
Rate at
6/30/2021
|
|
Accrued
Dividends at
6/30/2021
|
|
C Auction Rate
|
|
March 31, 2003
|
|
1,000
|
|
10
|
|
|
$24,547,465
|
|
0.070% to 0.210%
|
|
0.140%
|
|
$1
|
|
E 5.125%
|
|
September 26, 2017
|
|
2,000,000
|
|
1,996,700
|
|
|
$48,192,240
|
|
Fixed Rate
|
|
5.125%
|
|
$35,416
|
|
G 5.125%
|
|
December 20, 2019
|
|
2,000,000
|
|
1,990,201
|
|
|
$48,148,000
|
|
Fixed Rate
|
|
5.125%
|
|
$35,531
|
The
holders of Preferred Shares 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 Shares 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 of Directors. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders
of all outstanding shares of the preferred shares, 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 shares 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 other subsequent events occurring through the
date the financial statements were issued and has determined that there were no other subsequent events requiring recognition
or disclosure in the financial statements.
The
Gabelli Multimedia Trust Inc.
Notes
to Financial Statements (Unaudited) (Continued)