Gabelli Global Small and Mid Cap Value Trust Announces Third Quarter Distribution
The Board of Trustees of The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ) has announced a cash distribution of $0.16 per share. This payment is set to be made to common shareholders who are on record.
Fund Distribution Intentions
The Gabelli Global Small and Mid Cap Value Trust is committed to providing quarterly distributions, with the specifics determined by the Board of Trustees each quarter. In addition to these regular distributions, the Fund may also issue an adjusting distribution in December to account for any additional income or net realized capital gains that surpass the quarterly distributions for the year, in accordance with the minimum distribution requirements for regulated investment companies.
Monitoring Distribution Decisions
Every quarter, the Board of Directors assesses the potential distribution amount based on income, realized capital gains, or available capital. This careful oversight ensures that the distribution levels are in line with the Fund’s net asset value and the current financial market conditions. It’s important to note that while the distribution policy is currently established, it may be adjusted by the Board of Directors, and past trends do not guarantee future policies.
Tax Implications of Distributions
Distributions from the Fund might be classified as long-term capital gains or qualified dividend income, both of which could be subject to the federal income tax maximum rate for long-term capital gains. Additionally, some shareholders may incur a Medicare surcharge on their net investment income, which includes dividends and capital gains from the Fund.
Understanding Return of Capital
If the Fund does not generate enough earnings to cover the total distributions in a given year, any amount distributed that exceeds the Fund's earnings may be classified as a return of capital. Typically, such returns are not taxable and will decrease the shareholder’s cost basis in their investment.
Distribution Composition and Reporting
This year, distributions to common shareholders are anticipated to consist of approximately 14% from net investment income, 53% from net capital gains, and 33% classified as a return of capital. Shareholders will receive detailed information about the sources of these distributions in notices accompanying the payments, and this information will also be available on the company’s website.
Notification to Shareholders
Shareholders with taxable accounts will receive official notifications about the tax treatment and components of all distributions via Form 1099-DIV early in the following year.
Contacts for Further Information
For investors looking for more information about the Fund’s distribution policy and investment details, please reach out to:
Bethany Uhlein
(914) 921-5546
About The Gabelli Global Small and Mid Cap Value Trust
The Gabelli Global Small and Mid Cap Value Trust is a diversified, closed-end management investment company, managing total net assets of $132 million. Its primary investment objective is to achieve long-term capital growth by investing at least 80% of total assets in equity securities of small and medium-sized companies. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
Frequently Asked Questions
What is the declared distribution amount for this quarter?
The declared distribution for this quarter is $0.16 per share.
When will the distribution be paid?
The distribution will be paid to shareholders of record, with specific payment dates typically announced alongside the distribution declaration.
What are the tax implications of the distribution?
Distributions may be classified as long-term capital gains or qualified dividends, both of which could be subject to federal income tax. Additionally, higher-income shareholders may incur a Medicare surcharge.
How is the distribution rate determined?
The Board of Directors evaluates the Fund's earnings, net asset values, and market conditions to establish the distribution rate each quarter.
Where can I find more information about the Fund?
Additional information regarding the Gabelli Global Small and Mid Cap Value Trust can be found on the company's website and through investor contact channels.
