GGT-G Gabelli Multimedia Trust Inc

 

 June 30, 2023

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-08476

 

The Gabelli Multimedia Trust Inc.

(Exact name of registrant as specified in charter)

 

One Corporate Center
Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

 

John C. Ball
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

(Name and address of agent for service)

 

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

 

Date of fiscal year end: December 31

 

Date of reporting period: June 30, 2023

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1.

Reports to Stockholders.

 

(a)

The Report to Shareholders is attached herewith.

 

The Gabelli Multimedia Trust Inc.

Semiannual Report — June 30, 2023

 

(Y)our Portfolio Management Team

 

	Mario J. Gabelli, CFA Chief Investment Officer		Christopher J. Marangi Co-Chief Investment Officer BA, Williams College MBA, Columbia Business School

 

To Our Stockholders,

 

For the six months ended June 30, 2023, the net asset value (NAV) total return of The Gabelli Multimedia Trust Inc. (the Fund) was 16.0%, compared with a total return of 25.6% for the Morgan Stanley Capital International (MSCI) AC World Communication Services Index. The total return for the Fund’s publicly traded shares was 32.4%. The Fund’s NAV per share was $4.05, while the price of the publicly traded shares closed at $6.58 on the New York Stock Exchange (NYSE). See page 3 for additional performance information.

 

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2023.

 

Investment Objective and Strategy (Unaudited)

 

The Gabelli Multimedia Trust is a non-diversified, closed-end management investment company whose primary objective is long term growth of capital, with income as a secondary objective. 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.

 

 

 

 

 

 

 

 

 

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive sharehold-er reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports on paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call 800-422-3554 or send an email request to info@gabelli.com.

 

 

Performance Discussion (Unaudited)

 

Global equities rose in the first half of the year, as the market ascribed higher odds to ending the current interest rate hiking cycle with a soft landing (short, shallow recession) rather than a hard landing (long, deep recession). After posting the weakest performance in the S&P 500 in 2022, the Communications Services sector rebounded strongly to begin 2023. This performance was driven by members of the so-called Magnificent Seven that led the market rally due to their strong balance sheets. Meanwhile, Artificial Intelligence (AI) injected some serious Fear of Missing Out (FOMO) into the market, leading to panic buying of tech stocks.

 

Top contributors in the first half included Sony Corp. (5.9% of the portfolio as of June 30, 2023), a global conglomerate based in Tokyo, Japan focusing on direct-to-consumer entertainment products, and which benefited from a re-rating of semiconductor firms and saw resilient growth in its gaming business. Meta Platforms Inc. (2.3%), one of the Magnificent Seven, saw its stock rally as it focused on its core services, having trimmed investment in new, less proven areas.

 

Detractors included Madison Square Garden Sports (2.6%), owner of the New York Knicks basketball team and the New York Rangers hockey team, and Manchester United (0.6%), whose owners are going through a prolonged process to sell the team.

 

Thank you for your investment in The Gabelli Multimedia Trust Inc.

 

We appreciate your confidence and trust.

 

 

 

 

 

 

 

 

 

 

The views expressed reflect the opinions of the Fund’s portfolio managers and Gabelli Funds, LLC, the Adviser, as of the date of this report and are subject to change without notice based on changes in market, economic, or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Comparative Results

 

 

 

Summary of Portfolio Holdings (Unaudited)

 

The following table presents portfolio holdings as a percent of total investments as of June 30, 2023:

 

The Gabelli Multimedia Trust Inc.

 

 

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

 

Proxy Voting

 

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

 

 

The Gabelli Multimedia Trust Inc.

Schedule of Investments — June 30, 2023 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2023 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2023 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2023 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Multimedia Trust Inc.

Schedule of Investments (Continued) — June 30, 2023 (Unaudited)

 

 

See accompanying notes to financial statements.

 

 

The Gabelli Multimedia Trust Inc.

 

 

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, 2023 (Unaudited)				Year Ended December 31, 2022
Operations:
Net investment income		$	864,755			$	258,521
Net realized loss on investments and foreign currency transactions			(1,459,249	)			(5,024,410	)
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			18,858,448				(86,880,491	)
Net Increase/(Decrease) in Net Assets Resulting from Operations			18,263,954				(91,646,380	)
Distributions to Preferred Stockholders:
Accumulated earnings			(849,506	)*			—
Return of capital			(1,329,635	)*			(4,939,169	)
Total Distributions to Preferred Stockholders			(2,179,141	)			(4,939,169	)
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from Operations			16,084,813				(96,585,549	)
Distributions to Common Stockholders:
Return of capital			(12,212,801	)*			(24,210,352	)
Total Distributions to Common Stockholders			(12,212,801	)			(24,210,352	)
Fund Share Transactions:
Increase in net assets from common shares issued upon reinvestment of distributions			1,110,831				1,759,964
Net increase in net assets from redemption of preferred shares			69,155				596,163
Offering costs for common shares charged to paid-in capital			—				(10,110	)
Net Increase in Net Assets from Fund Share Transactions			1,179,986				2,346,017
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders			5,051,998				(118,449,884	)
Net Assets Attributable to Common Stockholders:
Beginning of year			107,806,229				226,256,113
End of period		$	112,858,227			$	107,806,229

 

*

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, 2023				Year Ended December 31,
		(Unaudited)				2022				2021				2020				2019				2018
Operating Performance:
Net asset value, beginning of year		$	3.89			$	8.25			$	8.14			$	7.93			$	7.04			$	9.34
Net investment income/(loss)			0.03				0.01				(0.02	)			0.02				0.13	(a)			0.03
Net realized and unrealized gain/ (loss) on investments and foreign currency transactions			0.64				(3.35	)			1.21				1.27				1.86				(1.28	)
Total from investment operations			0.67				(3.34	)			1.19				1.29				1.99				(1.25	)
Distributions to Preferred Stockholders: (b)
Net investment income			(0.03	)*			—				(0.02	)			(0.00	)(c)			(0.02	)			(0.00	)(c)
Net realized gain			(0.00	)*(c)			—				(0.18	)			(0.20	)			(0.13	)			(0.15	)
Return of capital			(0.05	)*			(0.18	)			—				—				—				—
Total distributions to preferred stockholders			(0.08	)			(0.18	)			(0.20	)			(0.20	)			(0.15	)			(0.15	)
Net Increase/(Decrease) in Net Assets Attributable to Common Stockholders Resulting from Operations			0.59				(3.52	)			0.99				1.09				1.84				(1.40	)
Distributions to Common Stockholders:
Net investment income			—				—				(0.07	)			(0.02	)			(0.12	)			(0.01	)
Net realized gain			—				—				(0.61	)			(0.83	)			(0.71	)			(0.89	)
Return of capital			(0.44	)*			(0.88	)			(0.20	)			(0.03	)			(0.05	)			—
Total distributions to common stockholders			(0.44	)			(0.88	)			(0.88	)			(0.88	)			(0.88	)			(0.90	)
Fund Share Transactions:
Increase in net asset value from common share transactions			—				—				0.02				—				—				—
Increase in net asset value from common shares issued upon reinvestment of distributions			0.01				0.02				0.00	(c)			0.00	(c)			0.00	(c)			—
Increase in net asset value from redemption of preferred shares			0.00	(c)			0.02				—				0.00	(c)			—				—
Offering costs and adjustment to offering costs for preferred shares charged to paid-in capital			—				—				0.00	(c)			—				(0.07	)			(0.00	)(c)
Offering costs and adjustment to offering costs for common shares charged to paid-in capital			—				(0.00	)(c)			(0.02	)			—				—				—
Total Fund share transactions			0.01				0.04				0.00	(c)			0.00	(c)			(0.07	)			(0.00	)(c)
Net Asset Value Attributable to Common Stockholders, End of Period		$	4.05			$	3.89			$	8.25			$	8.14			$	7.93			$	7.04
NAV total return †			16.02	%			(43.71	)%			11.54	%			18.58	%			25.86	%			(16.54	)%
Market value, end of period		$	6.58			$	5.35			$	8.68			$	7.96			$	8.02			$	7.06
Investment total return ††			32.38	%			(29.96	)%			23.53	%			14.15	%			26.67	%			(14.93	)%

 

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, 2023				Year Ended December 31,
		(Unaudited)				2022				2021				2020				2019				2018
Ratios to Average Net Assets and Supplemental Data:
Net assets including liquidation value of preferred shares, end of period (in 000’s)		$	197,301			$	193,907			$	326,179			$	305,676			$	297,577			$	243,309
Net assets attributable to common shares, end of period (in 000’s)		$	112,858			$	107,806			$	226,256			$	205,754			$	197,327			$	173,284
Ratio of net investment income/(loss) to average net assets attributable to common shares before preferred share distributions			1.48	%(d)			0.17	%			(0.29	)%			0.23	%			1.62	%(a)			0.39	%
Ratio of operating expenses to average net assets attributable to common shares before fees waived/ fee reduction (e)(f)			2.33	%(d)			2.11	%			1.73	%			2.06	%			1.69	%(g)			1.62	%
Ratio of operating expenses to average net assets attributable to common shares net of fees waived/ fee reduction, if any (e)			2.33	%(d)			2.10	%(h)			1.73	%			2.06	%(h)			1.69	%(g)(h)			1.53	%(h)
Portfolio turnover rate			5	%			15	%			17	%			29	%			18	%			21	%
Cumulative Preferred Stock:
6.000% Series B Preferred (i)
Liquidation value, end of period (in 000’s)			—				—				—				—				—			$	19,775
Total shares outstanding (in 000’s)			—				—				—				—				—				791
Liquidation preference per share			—				—				—				—				—			$	25.00
Average market value (j)			—				—				—				—				—			$	25.81
Asset coverage per share (k)			—				—				—				—				—			$	86.86
Auction Market Series C Preferred
Liquidation value, end of period (in 000’s)		$	250			$	250			$	250			$	250			$	250			$	250
Total shares outstanding (in 000’s)(l)			0				0				0				0				0				0
Liquidation preference per share		$	25,000			$	25,000			$	25,000			$	25,000			$	25,000			$	25,000
Liquidation value (m)		$	25,000			$	25,000			$	25,000			$	25,000			$	25,000			$	25,000
Asset coverage per share (k)		$	58,413			$	56,302			$	81,608			$	76,478			$	74,209			$	86,865
5.125% Series E Preferred
Liquidation value, end of period (in 000’s)		$	44,399			$	45,314			$	49,918			$	49,918			$	50,000			$	50,000
Total shares outstanding (in 000’s)			1,776				1,813				1,997				1,997				2,000				2,000
Liquidation preference per share		$	25.00			$	25.00			$	25.00			$	25.00			$	25.00			$	25.00
Average market value (j)		$	23.84			$	24.07			$	25.95			$	25.55			$	24.88			$	23.80
Asset coverage per share (k)		$	58.41			$	56.30			$	81.61			$	76.48			$	74.21			$	86.86

 

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, 2023				Year Ended December 31,
		(Unaudited)				2022				2021				2020				2019				2018
5.125% Series G Preferred
Liquidation value, end of period (in 000’s)		$	39,794			$	40,538			$	49,755			$	49,755			$	50,000				—
Total shares outstanding (in 000’s)			1,592				1,622				1,990				1,990				2,000				—
Liquidation preference per share		$	25.00			$	25.00			$	25.00			$	25.00			$	25.00				—
Average market value (j)		$	23.77			$	24.23			$	26.37			$	25.61			$	25.40				—
Asset coverage per share (k)		$	58.41			$	56.30			$	81.61			$	76.48			$	74.21				—
Asset Coverage (n)			234	%			225	%			326	%			306	%			297	%			347	%

 

	†	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 0.20%.

(b)

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

(c)

Amount represents less than $0.005 per share.

(d)

Annualized.

(e)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. Had such payments not been made, this expense ratio for the year ended December 31, 2022 would have been 2.11%. For the six months ended June 30, 2023 and the years ended December 31, 2021, 2020, 2019, and 2018, there was no impact on the expense ratios.

(f)

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, 2023 and the years ended December 31, 2022, 2021, 2020, 2019, and 2018, would have been 1.35%, 1.29%, 1.21%, 1.30%, 1.25%, and 1.22%, respectively.

(g)

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.

(h)

Ratio of operating expenses to average net assets including liquidation value of preferred shares net of advisory fee reduction for the years ended December 31, 2022, 2020, 2019, and 2018, would have been 1.28%, 1.30%, 1.25%, and 1.15%, respectively.

(i)

Based on weekly prices.

(j)

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

(k)

The Fund redeemed and retired all its outstanding Series B Preferred Shares on December 26, 2019.

(l)

Actual number of shares outstanding is 10.

(m)

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.

(n)

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) was incorporated on March 31, 1994 in Maryland. The Fund is a non-diversified closed-end management investment company 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 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.

 

 

The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

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, 2023 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 06/30/23
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Copyright/Creativity Companies
Publishing		$	3,078,807			$	31,404			$	2,256			$	3,112,467
Other Industries (b)			71,944,642				—				—				71,944,642
Distribution Companies
Broadcasting			13,459,478				22,532				—				13,482,010
Business Services			1,854,984				—				610				1,855,594
Financial Services			1,134,515				—				16,375				1,150,890
Real Estate			3,422,390				—				191				3,422,581
Telecommunications			—				1				—				1
Telecommunications: National			10,297,076				—				0				10,297,076
Wireless Communications			5,943,096				266				15,143				5,958,505
Other Industries (b)			61,657,902				—				—				61,657,902
Total Common Stocks			172,792,890				54,203				34,575				172,881,668
Closed-End Funds			—				18,720				—				18,720
Preferred Stocks (b)			813,660				—				—				813,660
Warrants (b)			7				—				—				7
U.S. Government Obligations			—				23,790,061				—				23,790,061
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	173,606,557			$	23,862,984			$	34,575			$	197,504,116

 

(a)

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.

(b)

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

 

During the six months ended June 30, 2023, the Fund did not have any transfers into or out of Level 3.

 

Additional Information to Evaluate Qualitative Information.

 

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

 

 

The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

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, 2023, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

 

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

 

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

 

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

 

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual

 

 

The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and, accordingly, the Board will monitor their liquidity. At June 30, 2023, the Fund held no restricted securities.

 

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method 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 Auction Market 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 6.

 

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, 2022 was as follows:

 

			Common				Preferred
Distributions paid from:
Return of capital		$	24,210,352			$	4,939,169
Total distributions paid		$	24,210,352			$	4,939,169

 

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.

 

At December 31, 2022, 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. The Fund is permitted to carry capital losses forward for an unlimited period.

 

Capital losses that are carried forward will retain their character as either short term or long term capital losses.

 

Short term capital loss carryforward with no expiration		$	1,391,883
Long term capital loss carryforward with no expiration			1,009,739
Total Capital Loss Carryforwards		$	2,401,622

 

The following summarizes the tax cost of investments and the related net unrealized depreciation at June 30, 2023:

 

		Cost				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Depreciation
Investments		$	200,763,320			$	32,494,586			$	(35,753,790	)		$	(3,259,204	)

 

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, 2023, the Fund did not incur any income tax, interest, or penalties. At June 30, 2023, 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 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 Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

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 period. For the six months ended June 30, 2023, the Fund’s total return on the NAV of the common shares exceeded the stated dividend rate of Series C Preferred Stock. Thus, advisory fees with respect to the liquidation value of the Series C Preferred Stock were accrued.

 

4. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2023, other than short term securities and U.S. Government obligations, aggregated $9,306,749 and $18,529,113, respectively.

 

5. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2023, the Fund paid $2,611 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

 

During the six months ended June 30, 2023, 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 $1,522.

 

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, 2023, 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, 2023, the Fund accrued $44,761 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.

 

6. 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, 2023 and the year ended December 31, 2022, the Fund did not repurchase any of its common shares.

 

21

 

 

The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

		Six Months Ended June 30, 2023 (Unaudited)								Year Ended December 31, 2022
		Shares				Amount				Shares				Amount
Increase in net assets from common shares issued upon reinvestment of distributions			189,631			$	1,110,831				272,128			$	1,759,964

 

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 and Series E Preferred Stock at their respective redemption prices per share. 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, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 36,574 and 184,154 Series E Preferred at investments of $874,326 and $4,402,156, respectively, and at average discounts of approximately 4.42% and 4.42%, from its liquidation preference. During the six months ended June 30, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 29,756 and 368,698 Series G Preferred at investments of $713,569 and 8,822,681, respectively, and at average discounts of approximately 4.25% and 4.32%, respectively, from its liquidation preference.

 

22

 

 

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 6/30/2023				Net Proceeds				2023 Dividend Rate Range		Dividend Rate at 6/30/2023				Accrued Dividends at 6/30/2023
C Auction Rate		March 31, 2003			1,000				10			$	24,547,465			7.514% to 8.881%			8.881	%		$	182
E 5.125%		September 26, 2017			2,000,000				1,775,972			$	48,192,240			Fixed Rate			5.125	%		$	31,604
G 5.125%		December 20, 2019			2,000,000				1,591,747			$	48,148,000			Fixed Rate			5.125	%		$	28,325

 

 

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.

 

 

7. 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.

 

8. 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.

 

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

 

 

The Gabelli Multimedia Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

 

 

 

 

 

 

 

 

 

 

Certifications

 

The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (NYSE) that, as of June 20, 2023, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

 

Shareholder Meeting – May 22, 2023 – Final Results

 

The Fund’s Annual Meeting of Stockholders was held virtually on May 22, 2023. At that meeting, common and preferred shareholders, voting together as a single class, re-elected Frank J. Fahrenkopf, Jr., Werner J. Roeder, Salvatore J. Zizza, and Daniel E. Zucchi as Directors of the Fund, with 18,556,629 votes, 18,575,019 votes, 18,702,162 votes, and 18,639,225 votes cast in favor of these Directors, and 2,959,776 votes, 2,941,386 votes, 2,814,243 votes, and 2,877,180 votes withheld for these Directors, respectively.

 

Mario J. Gabelli, Calgary Avansino, John Birch, Elizabeth C. Bogan, Anthony S. Colavita, James P. Conn, Christopher J. Marangi, and Kuni Nakamura continue to serve in their capacities as Directors of the Fund.

 

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

 

 

The Gabelli Multimedia Trust Inc.

 

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

 

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

 

More specifically, at a meeting held on May 16, 2023, the Board, including the Independent Board Members meeting in executive session with their counsel, considered the factors and reached the conclusions described below relating to the selection of the Adviser and the re-approval of the Advisory Agreement.

 

1)

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

 

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

 

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

 

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

 

2)

The performance of the Fund and the Adviser.

 

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

 

 

The Gabelli Multimedia Trust Inc.

 

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

 

considered the Fund’s one, three, five, and ten year average annual total return for the periods ended March 31, 2023, but greater emphasis on the Fund’s longer term performance. The peer groups considered by the Board Members were developed by the Adviser (“Adviser Peer Group”), comprised of seven other comparable funds, and a group comprised of other selected closed-end core, growth and value equity funds (the “Lipper Performance Peer Group”). The Board Members considered these comparisons helpful in their assessment as to whether the Adviser was obtaining for the Fund’s shareholders the total return performance that was available in the marketplace, given the Fund’s objectives, strategies, limitations, and restrictions. In reviewing the performance of the Fund, the Board Members noted that the Fund’s performance was below the median for the one year, three year, five year, and ten year periods as compared with the Adviser Peer Group and as compared with the Lipper Performance Peer Group. The Board Members concluded that the Fund’s performance was reasonable in comparison with that of the Adviser Peer Group and Lipper Performance Peer Group.

 

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

 

3)

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

 

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

 

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

 

The Board Members also considered an analysis prepared by the Adviser of the estimated profitability to the Adviser of its relationship with the Fund and reviewed with the Adviser its cost allocation methodology in connection with its profitability. In this regard, the Board Members reviewed Pro-forma Income Statements of the Adviser for the year ended December 31, 2022. The Board Members considered one analysis for the Adviser as a whole, and a second analysis for the Adviser with respect to the Fund. With respect to the Fund analysis, the Board Members received an analysis based on the Fund’s average net assets during the period as well as a pro-forma analysis of profitability at higher and lower asset levels. The Board Members concluded that the profitability of the Fund to the Adviser under either analysis was not excessive.

 

 

The Gabelli Multimedia Trust Inc.

 

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

 

4)

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

 

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

 

5)

Other Factors

 

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

 

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

 

 

 

 

THE GABELLI MULTIMEDIA TRUST INC.

One Corporate Center

Rye, NY 10580-1422

 

Portfolio Management Team Biographies

 

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

 

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. Currently he is a Managing Director and Co-Chief Investment Officer for GAMCO Investors, Inc.’s Value team. In addition, he serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA degree with honors from Columbia Business School.

 

 

 

 

 

 

 

 

 

 

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 and Chief Executive Officer, GAMCO Investors, Inc. Executive Chairman, Associated Capital Group Inc.   Calgary Avansino Former Chief Executive Officer, Glamcam   John Birch Partner, The Cardinal Partners Global   Elizabeth C. Bogan Former Senior Lecturer in Economics, Princeton University   Anthony S. Colavita President, Anthony S. Colavita, P.C.   James P. Conn Former Managing Director & Chief Investment Officer, Financial Security Assurance Holdings LTD.   Frank J. Fahrenkopf, Jr. Former President & Chief Executive Officer, American Gaming Association   Christopher J. Marangi Managing Director, GAMCO Investors, Inc.   Kuni Nakamura President, Advanced Polymer, Inc.		Werner J. Roeder Former Medical Director, Lawrence Hospital   Salvatore J. Zizza Chairman, Zizza & Associates Corp.   Daniel E. Zucchi President, Daniel E. Zucchi Associates   OFFICERS John C. Ball President & Treasurer   Peter Goldstein Secretary & Vice President   Richard J. Walz Chief Compliance Officer   Carter W. Austin Vice President & Ombudsman   Laurissa M. Martire Vice President   INVESTMENT ADVISER Gabelli Funds, LLC One Corporate Center Rye, New York 10580-1422   CUSTODIAN State Street Bank and Trust Company   COUNSEL Paul Hastings LLP   TRANSFER AGENT AND REGISTRAR Computershare Trust Company, N.A.
	GGT Q2/2023

 

 

(b)

Not applicable.

 

Item 2.

Code of Ethics.

 

Not applicable.

 

Item 3.

Audit Committee Financial Expert.

 

Not applicable.

 

Item 4.

Principal Accountant Fees and Services.

 

Not applicable.

 

Item 5.

Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6.

Investments.

 

(a)

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

 

(b)

Not applicable.

 

Item 7.

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

 

Not applicable.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

 

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

 

 

Item 9.

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

 

REGISTRANT PURCHASES OF EQUITY SECURITIES

 

Period	(a) Total Number of Shares (or Units) Purchased)	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet be Purchased Under the Plans or Programs
Month #1 01/01/2023 through 01/31/2023	Common – N/A   Preferred Series G – 8,841   Preferred Series E – 8,482	Common – N/A   Preferred Series G – $24.00   Preferred Series E – $23.97	Common – N/A   Preferred Series G – 8,841   Preferred Series E – 8,482	Common – 27,703,508   Preferred Series G – 1,621,503 - 8,841 = 1,612,662   Preferred Series E – 1,812,546 - 8,482 = 1,804,064
Month #2 02/01/2023 through 02/28/2023	Common – N/A   Preferred Series G – 5,786   Preferred Series E – 12,753	Common – N/A   Preferred Series G – $23.96   Preferred Series E – $23.93	Common – N/A   Preferred Series G – 5,786   Preferred Series E – 12,753	Common – 27,703,508   Preferred Series G – 1,612,662 -5,786 = 1,606,876   Preferred Series E – 1,804,064 - 12,753 = 1,791,311
Month #3 03/01/2023 through 03/31/2023	Common – N/A   Preferred Series G – 635   Preferred Series E – N/A	Common – N/A   Preferred Series G – $23.77   Preferred Series E – N/A	Common – N/A   Preferred Series G – 635   Preferred Series E – N/A	Common –27,809,225   Preferred Series G – 1,606,876 - 635 = 1,606,241   Preferred Series E – 1,791,311
Month #4 04/01/2023 through 04/30/2023	Common – N/A   Preferred Series G – 100   Preferred Series E – 1,000	Common – N/A   Preferred Series G – $23.30   Preferred Series E – $23.40	Common – N/A   Preferred Series G – 100   Preferred Series E – 1,000	Common – 27,809,225   Preferred Series G – 1,606,241 - 100 = 1,606,141   Preferred Series E – 1,791,311 - 1,000 = 1,790,311
Month #5 05/01/2023 through 05/31/2023	Common – N/A   Preferred Series G – 8,080   Preferred Series E – 6,351	Common – N/A   Preferred Series G – $23.72   Preferred Series E – $23.68	Common – N/A   Preferred Series G – 8,080   Preferred Series E – 6,351	Common –27,809,225   Preferred Series G – 1,606,141 - 8,080 = 1,598,061   Preferred Series E – 1,790,311 - 6,351 = 1,783,960
Month #6 06/01/2023 through 06/30/2023	Common – N/A   Preferred Series G – 6,314   Preferred Series E – 7,988	Common – N/A   Preferred Series G – $23.86   Preferred Series E – $23.85	Common – N/A   Preferred Series G – 6,314   Preferred Series E – 7,988	Common – 27,893,139   Preferred Series G –1,598,061 - 6,314 = 1,591,747   Preferred Series E – 1,783,960 - 7,988 = 1,775,972
Total	Common – N/A   Preferred Series G – 29,756   Preferred Series E – 36,574	Common – N/A   Preferred Series G – $23.85   Preferred Series E – $23.80	Common – N/A   Preferred Series G – 29,756   Preferred Series E – 36,574	N/A

 

Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:

 

a.

The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.

b.

The dollar amount (or share or unit amount) approved – Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 7.5% or more from the net asset value of the shares. Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.

c.

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

d.

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

e.

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

 

 

Item 10.

Submission of Matters to a Vote of Security Holders.

 

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

 

Item 11.

Controls and Procedures.

 

(a)

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

 

(b)

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

 

Item 12.

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

 

Not applicable.

 

Item 13.

Exhibits.

 

(a)(1)

Not applicable.

 

(a)(2)

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

 

(a)(2)(1)

Not applicable.

 

(a)(2)(2)

Not applicable.

 

(b)	Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

 

SIGNATURES

 

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

 

(Registrant)	The Gabelli Multimedia Trust Inc.
By (Signature and Title)*	/s/ John C. Ball
	John C. Ball, Principal Executive Officer
Date	September 6, 2023

 

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

 

By (Signature and Title)*	/s/ John C. Ball
	John C. Ball, Principal Executive Officer
Date	September 6, 2023

 

By (Signature and Title)*	/s/ John C. Ball
	John C. Ball, Principal Financial Officer and Treasurer
Date	September 6, 2023

 

*

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

 

 

Exhibit 99.CERT

 

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

 

I, John C. Ball, certify that:

 

1.

I have reviewed this report on Form N-CSR of The Gabelli Multimedia Trust Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:	September 6, 2023		/s/ John C. Ball
			John C. Ball, Principal Executive Officer

 

 

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

 

I, John C. Ball, certify that:

 

1.

I have reviewed this report on Form N-CSR of The Gabelli Multimedia Trust Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:	September 6, 2023		/s/ John C. Ball
			John C. Ball, Principal Financial Officer and Treasurer

 

 

Exhibit 99.906 CERT

 

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act

 

I, John C. Ball, Principal Executive Officer of The Gabelli Multimedia Trust Inc. (the “Registrant”), certify that:

 

1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:	September 6, 2023		/s/ John C. Ball
			John C. Ball, Principal Executive Officer

 

 

I, John C. Ball, Principal Financial Officer and Treasurer of The Gabelli Multimedia Trust Inc. (the “Registrant”), certify that:

 

1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:	September 6, 2023		/s/ John C. Ball
			John C. Ball, Principal Financial Officer and Treasurer

 

v3.23.2

N-2	6 Months Ended
	Jun. 30, 2023 shares
Cover [Abstract]
Entity Central Index Key	0000921671
Amendment Flag	false
Document Type	N-CSRS
Entity Registrant Name	The Gabelli Multimedia Trust Inc.
Document Period End Date	Jun. 30, 2023
General Description of Registrant [Abstract]
Investment Objectives and Practices [Text Block]	Investment Objective and Strategy (Unaudited)   The Gabelli Multimedia Trust is a non-diversified, closed-end management investment company whose primary objective is long term growth of capital, with income as a secondary objective. 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.
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Capital Stock [Table Text Block]	6. 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, 2023 and the year ended December 31, 2022, the Fund did not repurchase any of its common shares.         Six Months Ended June 30, 2023 (Unaudited)     Year Ended December 31, 2022       Shares     Amount     Shares     Amount   Increase in net assets from common shares issued upon reinvestment of distributions     189,631     $ 1,110,831       272,128     $ 1,759,964     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 and Series E Preferred Stock at their respective redemption prices per share. 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, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 36,574 and 184,154 Series E Preferred at investments of $874,326 and $4,402,156, respectively, and at average discounts of approximately 4.42% and 4.42%, from its liquidation preference. During the six months ended June 30, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 29,756 and 368,698 Series G Preferred at investments of $713,569 and 8,822,681, respectively, and at average discounts of approximately 4.25% and 4.32%, respectively, from its liquidation preference.     The following table summarizes Cumulative Preferred Stock information:   Series   Issue Date   Authorized     Number of Shares Outstanding at 6/30/2023     Net Proceeds     2023 Dividend Rate Range   Dividend Rate at 6/30/2023     Accrued Dividends at 6/30/2023   C Auction Rate   March 31, 2003     1,000       10     $ 24,547,465     7.514% to 8.881%     8.881 %   $ 182   E 5.125%   September 26, 2017     2,000,000       1,775,972     $ 48,192,240     Fixed Rate     5.125 %   $ 31,604   G 5.125%   December 20, 2019     2,000,000       1,591,747     $ 48,148,000     Fixed Rate     5.125 %   $ 28,325       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.
Common Stocks [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Not Held [Shares]	27,893,139
Cumulative Preferred Stocks [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Security Voting Rights [Text Block]	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.
Preferred Stock Restrictions, Other [Text Block]	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 and Series E Preferred Stock at their respective redemption prices per share. 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, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 36,574 and 184,154 Series E Preferred at investments of $874,326 and $4,402,156, respectively, and at average discounts of approximately 4.42% and 4.42%, from its liquidation preference. During the six months ended June 30, 2023 and the year ended December 31, 2022, the Fund repurchased and retired 29,756 and 368,698 Series G Preferred at investments of $713,569 and 8,822,681, respectively, and at average discounts of approximately 4.25% and 4.32%, respectively, from its liquidation preference.
Outstanding Securities [Table Text Block]	The following table summarizes Cumulative Preferred Stock information:   Series   Issue Date   Authorized     Number of Shares Outstanding at 6/30/2023     Net Proceeds     2023 Dividend Rate Range   Dividend Rate at 6/30/2023     Accrued Dividends at 6/30/2023   C Auction Rate   March 31, 2003     1,000       10     $ 24,547,465     7.514% to 8.881%     8.881 %   $ 182   E 5.125%   September 26, 2017     2,000,000       1,775,972     $ 48,192,240     Fixed Rate     5.125 %   $ 31,604   G 5.125%   December 20, 2019     2,000,000       1,591,747     $ 48,148,000     Fixed Rate     5.125 %   $ 28,325
Series C Cumulative Preferred Stock [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Title [Text Block]	C Auction Rate
Outstanding Security, Authorized [Shares]	1,000
Outstanding Security, Not Held [Shares]	10
Series E Cumulative Preferred Stock [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Title [Text Block]	E 5.125%
Outstanding Security, Authorized [Shares]	2,000,000
Outstanding Security, Not Held [Shares]	1,775,972
Series G Cumulative Preferred Stock [Member]
Capital Stock, Long-Term Debt, and Other Securities [Abstract]
Outstanding Security, Title [Text Block]	G 5.125%
Outstanding Security, Authorized [Shares]	2,000,000
Outstanding Security, Not Held [Shares]	1,591,747

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