GDL Fund Announces Quarterly Distribution of $0.12 per Share
GDL Fund Declares Solid Cash Distribution for Shareholders
The Board of Trustees of The GDL Fund (NYSE:GDL) has declared a cash distribution of $0.12 per share. This distribution is scheduled to be paid to shareholders on a specified date, offering a clear benefit to those holding the fund's shares.
Monitoring Distribution Levels
The Board remains vigilant in observing the Fund's distribution levels. Several factors, including net asset value and prevailing market conditions, are taken into account. This careful monitoring ensures that the distribution rate remains sustainable and reflective of the Fund's performance.
Distribution Strategy Overview
The GDL Fund has a well-defined strategy for distributing its earnings. It makes annual distributions from realized net long-term capital gains and quarterly cash distributions based on its investment company taxable income. Shareholders should note that a portion of these distributions might be characterized as a return of capital, which can have tax implications.
Understanding Returns of Capital
In situations where the Fund doesn't generate sufficient earnings equivalent to the total distributions made throughout the year, the excess amount paid out may be treated as a return of capital. This is considered a return of the investor’s original investment and generally doesn't incur taxes. Instead, it reduces the cost basis for the shareholder, offering a tax advantage in the long run.
Allocation of Distributions
The allocation of various income types—including short-term capital gains and qualified dividend income—will occur on a pro-rata basis among shareholders throughout the year. Notably, any long-term capital gains will be distributed during the year's final payouts. Accurate estimates of these components are communicated to shareholders of record, ensuring transparency.
The Importance of Accurate Reporting
Shareholders will receive comprehensive notifications concerning the components and tax treatment of all distributions for the year. This process includes detailed reports provided on a Form 1099-DIV, allowing investors to stay informed about their investments and any tax consequences.
Investor Guidance and Support
The GDL Fund encourages potential investors to thoroughly evaluate its investment objectives, risks, and necessary disclosures before making any investment decisions. For more tailored guidance or specific inquiries, interested individuals can reach out directly to:
Laurissa Martire
(914) 921-5399
About The GDL Fund
The GDL Fund operates as a diversified, closed-end management investment company, currently holding approximately $167 million in net assets. Its core mission revolves around achieving absolute returns while mitigating capital risk across varying market conditions. Gabelli Funds, LLC, which is a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI), manages the Fund.
Frequently Asked Questions
What is the declared distribution amount for GDL Fund?
The GDL Fund has declared a distribution of $0.12 per share for its shareholders.
When will the distribution be paid?
The distribution is set to be paid on a specific date to shareholders on record as of March 17, 2025.
How does the GDL Fund determine its distribution levels?
The Board of Trustees monitors the Fund's net asset value and market conditions to determine sustainable distribution levels.
What is a return of capital?
A return of capital occurs when distributions exceed the Fund's earnings and is generally not taxable, instead reducing a shareholder's cost basis.
Who can I contact for more information about the GDL Fund?
You can contact Laurissa Martire at (914) 921-5399 for inquiries related to the GDL Fund.
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