Ellsworth Growth and Income Fund Limited Distribution Announcement
The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE: ECF) has declared a cash distribution of $0.13 per share. This distribution is scheduled for payment on a specified date to common shareholders of record, ensuring that more investors can benefit from their ongoing commitment to shareholder returns.
Understanding the Fund's Distribution Strategy
Ellsworth Growth and Income Fund intends to provide distributions that reflect an annual yield of 5% based on its trailing 12-month average market price, or a minimum required distribution per regulations governing investment companies. This approach demonstrates the Fund's strategic commitment to delivering value to its investors and meeting regulatory standards.
Quarterly Reviews and Adjustments
Each quarter, the Board evaluates the distribution amounts based on income, realized capital gains, and overall capital available. This ensures that the Fund can sustain its distribution levels while remaining in line with its net asset value and current market conditions. Additionally, adjustments may occur in December to align with any excess income and capital gains accumulated throughout the year.
Tax Implications for Investors
It's crucial for investors to be aware that part of the distribution may qualify as long-term capital gains or qualified dividend income. The tax implications can vary based on an individual’s financial status and tax bracket. For example, certain U.S. shareholders may be liable for a Medicare surcharge on their net investment income, reflecting the significance of understanding the tax landscape for returns received from the Fund.
Return of Capital Considerations
If the Fund does not achieve sufficient earnings to cover the total distributions within a year, any excess paid signals a return of capital. This return is not generally taxable but instead adjusts the shareholder’s cost basis. This important detail highlights the complex nature of fund distributions and the need for investors to stay informed.
Composition of Distributions for 2025
For the fiscal year ending soon, it is expected that approximately 13% of the distribution will come from net investment income, with the remainder derived primarily from capital gains. This allocation reflects a commitment to transparency, with detailed notifications sent to individual shareholders outlining the components and their respective tax treatments.
Company Overview
Ellsworth Growth and Income Fund Ltd. is recognized as a diversified closed-end management investment company, boasting total net assets of around $190 million. The investment strategy principally revolves around convertible securities and common stocks, focusing on income generation and capital appreciation, which the Fund views as equally prioritized for long-term growth. This strategic perspective is reinforced by the expert management from Gabelli Funds, LLC, a recognized subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).
Contact for Further Information
For more inquiries regarding the Fund’s distribution policies or investment strategy, please contact Bethany Uhlein at (914) 921-5546. She is the designated point of contact for investor relations and is ready to assist with any queries.
Frequently Asked Questions
What is the distribution amount declared by Ellsworth Growth and Income Fund?
The Fund has declared a cash distribution of $0.13 per share.
When will the distribution be payable?
The distribution is scheduled to be payable on a future date to shareholders of record.
What influences the distribution rate for the Fund?
The Board of Trustees reviews multiple factors, including net asset value and market conditions, to determine distribution rates.
How is the distribution affected by the Fund's earnings?
If the Fund lacks sufficient earnings, part of the distribution may be treated as a return of capital.
Who manages the Ellsworth Growth and Income Fund?
The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
