Gabelli Convertible Fund Announces $0.12 Distribution
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Gabelli Convertible and Income Securities Fund Declares Cash Distribution
The Board of Directors of The Gabelli Convertible and Income Securities Fund Inc. (NYSE: GCV) has declared a cash distribution of $0.12 per share. This distribution will be payable to common stock shareholders who are on record.
Fund's Minimum Annual Distribution Policy
The Gabelli Convertible and Income Securities Fund aims to pay a minimum annual distribution of 8% based on the average net asset value within a calendar year. This approach aligns with the distribution requirements outlined in the Internal Revenue Code for regulated investment companies.
Net Asset Value Considerations
The average net asset value is computed from the last day of the four preceding quarters. Notably, the net asset value per share is subject to daily fluctuations, which can influence the distribution policy.
Distribution Review and Monitoring
Each quarter, the Board of Directors evaluates the potential distribution amounts, taking into account the income and realized capital gains. Continuous monitoring of the fund's distribution levels ensures alignment with both net asset value and the prevailing financial market conditions.
Tax Implications of Fund Distributions
Distributions may be considered as long-term capital gains or qualified dividend income for individual shareholders, subject to the maximum federal income tax rate. Certain shareholders may also incur a Medicare surcharge depending on their income thresholds.
Return of Capital Explanation
If the fund does not generate sufficient earnings, any excess distribution may be treated as a return of capital. This component is generally not taxable and is viewed as a reduction in the shareholder’s cost basis.
Allocation of Distributions
Distributions are allocated based on the various components including investment income and any return of capital. As reported, a significant percentage of distributions in the current fiscal year may be deemed a return of capital.
Communication with Shareholders
In early 2025, all shareholders will receive written notifications regarding the components and tax treatment of their 2024 distributions. This ensures transparency and helps investors understand the implications of their investment activities.
Contact Information for Queries
Investors seeking more clarity on the fund's distribution policy can reach out to Laurissa Martire at (914) 921-5399 for detailed information.
About Gabelli Convertible and Income Securities Fund Inc.
The Gabelli Convertible and Income Securities Fund Inc. operates as a diversified, closed-end management investment firm. With total net assets of $80 million, the fund's primary objective is to realize a high level of total return on assets, consisting of both current income and capital appreciation. It is managed by Gabelli Funds, LLC, part of GAMCO Investors, Inc. (OTCQX: GAMI).
Frequently Asked Questions
What is the declared distribution amount for shareholders?
The Fund has declared a distribution of $0.12 per share for its common stock shareholders.
How often does the Board review distributions?
The Board of Directors reviews potential distributions each quarter based on various financial metrics.
What is the minimum annual distribution policy of the Fund?
The Fund intends to maintain a minimum annual distribution of 8% of the average net asset value within a calendar year.
How is excess distribution treated for tax purposes?
Excess distributions may be considered a return of capital, which is generally non-taxable and reduces the shareholder’s cost basis.
Who should investors contact for more information about the Fund?
Investors can contact Laurissa Martire at (914) 921-5399 for information regarding the Fund’s distribution policy and other inquiries.
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