The GDL Fund Announces Per Share Cash Distribution Details

The GDL Fund Announces Cash Distribution Per Share

The Board of Trustees of The GDL Fund (NYSE:GDL) has declared a cash distribution of $0.12 per share. This distribution will be payable to common shareholders of record. The specific payment date is set for December 20, ensuring that shareholders receive their returns promptly.

Distribution Monitoring and Strategy

The Board of Trustees continuously monitors the distribution levels of the Fund, assessing factors such as the net asset value and the broader financial market conditions. This review process is crucial, as it helps determine if distribution rates align with the Fund’s overall performance and investor expectations. It’s essential for investors to recognize that the distribution rate should not be interpreted as the total yield or complete return on their investment with the Fund.

Nature of Fund Distributions

The GDL Fund adopts a structured approach to its distributions, offering both annual and quarterly payouts to its shareholders. These distributions include realized net long-term capital gains and a portion of the taxable income earned. Importantly, the Fund may also return a part of the capital to shareholders, depending on the intricate components of its income generation, which can fluctuate based on the asset mix and trading strategies employed.

Understanding Returns of Capital

If the Fund's earnings fall short of the total distributions throughout the year, the excess amounts distributed might be recognized as a return of capital. This aspect is significant for shareholders since returns of capital are generally excluded from taxation, functioning as reductions to the shareholders’ cost basis. This means they receive these amounts without immediate tax implications, allowing for better investment retention.

Composition of Distributions

Each distribution made in 2024 consists of various components, including short-term capital gains and investment income, which are allocated on a pro-rata basis among shareholders. From available accounting records, it has been estimated that the distributions to common shareholders in the current year will consist of approximately 31% from net investment income, 41% from net capital gains, and 28% considered a return of capital. It’s essential for shareholders to be aware that tax reporting purposes may not align directly with the distribution records provided.

Communication to Shareholders

Shareholders of The GDL Fund can expect to receive detailed written notifications about the specific components and corresponding tax treatment of all 2024 distributions via Form 1099-DIV at the beginning of the following year. This proactive approach ensures that investors are kept informed regarding their investment and its implications.

About The GDL Fund

The GDL Fund is recognized as a diverse, closed-end management investment company, boasting total net assets amounting to $167 million. The primary objective of the Fund is to strive for absolute returns throughout various market conditions while managing capital risks effectively. It operates under the management of Gabelli Funds, LLC, a part of the GAMCO Investors, Inc. group.

For more information about the GDL Fund's distribution policies or other inquiries, investors are encouraged to reach out to:
Laurissa Martire
Phone: (914) 921-5399

Frequently Asked Questions

What is the announced cash distribution amount for GDL Fund?

The announced cash distribution amount for The GDL Fund is $0.12 per share.

When will the distribution be paid?

The cash distribution will be paid on December 20 of this year.

Who qualifies for this distribution?

Common shareholders of record as of December 13 are eligible for the distribution.

What should shareholders expect regarding taxable distributions?

Shareholders will receive detailed tax treatment information through Form 1099-DIV early next year.

How does The GDL Fund ensure stable distributions?

The Fund may distribute more than the income earned to maintain stable distributions, assessing various financial strategies.

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