Gabelli Global Utility & Income Trust Announces Monthly Distributions

Gabelli Global Utility & Income Trust Continues Monthly Distributions

The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE American: GLU) has approved the continuation of its policy of paying fixed monthly cash distributions. The Board has declared cash distributions of $0.10 per share for the upcoming months.

Distribution Schedule

The distributions have been scheduled for October, November, and December of this year, maintaining the previously established payout rate under the Fund’s initial distribution policy.

Details of the Cash Distributions

For October, the record date will be set for mid-month, and the payable date will follow shortly after. The same schedule applies for November and December, ensuring that shareholders receive their distributions timely.

Distribution Policy Overview

Since the inception of the Fund, it has committed to a minimum annual distribution of 6% based on the initial public offering price of $20.00 per share. Each month, the Fund pays a distribution of $0.10 per share. This consistency demonstrates the Fund’s commitment to returning value to its investors.

Board of Trustees Review Process

Quarterly, the Board of Trustees reviews the potential distribution amounts based on income, realized capital gains, or available capital. The Board will continue to consider the Fund’s net asset value and the prevailing financial market environment during these reviews.

Adjusting Distributions

If necessary, the Fund may distribute an adjusting amount in December, which will include additional income and net realized capital gains that surpassed the monthly distributions throughout the year. Such adjustments will be made to fulfill the minimum distribution requirements set forth in the Internal Revenue Code for regulated investment companies.

Tax Implications of Distributions

The tax treatment of distributions may involve categorization as long-term capital gains or qualified dividend income. This treatment is dependent upon the maximum federal income tax rates, which currently stands at 20% for long-term capital gains in taxable accounts. Additionally, certain U.S. shareholders may be subjected to a Medicare surcharge on their “net investment income,” which includes dividends from the Fund and capital gains from share transactions.

Return of Capital Considerations

In cases where the Fund does not generate sufficient earnings to cover the distributions paid in a given year, any excess amounts may be classified as a return of capital. Generally, such amounts would not be taxable but would instead reduce a shareholder’s cost basis.

Distribution Components and Reporting

Each distribution to common shareholders will be allocated on a pro-rata basis, consisting of net investment income and return of capital. According to the Fund’s accounting records, distributions for the current year are expected to include approximately 22% from net investment income, with 78% categorized as return of capital on a book basis. These figures will be updated and communicated to shareholders in notices accompanying the distributions.

Shareholder Notification

Shareholders can expect written notifications that detail the components and tax treatments of the distributions for the current year to be provided in early the following year via Form 1099-DIV.

About The Gabelli Global Utility & Income Trust

The Gabelli Global Utility & Income Trust is a diversified, closed-end management investment company with significant total net assets. Its primary investment objective is to ensure a consistent after-tax total return for investors, particularly focusing on tax-advantaged dividend income per current tax laws. The management of the Fund falls under Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.

For detailed inquiries about the Fund and its distribution policy, investors are encouraged to contact:

Adam Tokar
Phone: (914) 457-1079

Frequently Asked Questions

What is the distribution policy of The Gabelli Global Utility & Income Trust?

The Fund maintains a distribution policy of paying $0.10 per share each month, with a commitment to a minimum annual distribution of 6% based on the original public offering price.

When are the declared distributions scheduled?

The Board has declared distributions for the months of October, November, and December of this year.

How does the Board of Trustees determine distribution amounts?

Quarterly reviews are conducted, considering income, capital gains, and the Fund’s net asset value to make distribution decisions.

Are there tax implications associated with the distributions?

Yes, distributions may be treated as long-term capital gains or qualified dividend income, subject to respective federal tax rates.

What happens if the Fund's earnings are insufficient to cover distributions?

Any excess distribution above the Fund’s earnings may be categorized as a return of capital, which generally is not taxable and reduces the shareholder’s cost basis.

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