The GDL Fund Announces Third Quarter Distribution of $0.12
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The GDL Fund Announces Cash Distribution
The Board of Trustees of The GDL Fund (NYSE:GDL) has officially declared a cash distribution of $0.12 per share for its common shareholders. This distribution showcases the Fund's continued commitment to providing returns to its investors. The distribution is scheduled to be payable to shareholders of record...
Monitoring Distribution Levels
The Board of Trustees remains vigilant in monitoring the Fund's distribution levels. This close observation takes into account the Fund’s net asset value and the current financial market conditions. Shareholders should note that the distribution rate does not represent the dividend yield or total return on their investment in the Fund.
Annual and Quarterly Distributions
The GDL Fund has a structured distribution policy that incorporates annual distributions of net long-term capital gains alongside quarterly distributions derived from its taxable income for common shareholders. An important aspect of this practice is that a portion of the distribution could be classified as a return of capital. Various factors, including asset mix and merger arbitrage strategies, will significantly affect the Fund's income generation.
Stabilizing Distributions
To maintain a stable distribution for its shareholders, the Fund may opt to distribute more than just the income earned in specific periods. Given that the Fund’s quarterly distribution levels are subject to modification by the Board of Trustees, investors should understand that levels may fluctuate based on the Fund's earnings and financial conditions.
Return of Capital Considerations
In scenarios where the Fund does not generate sufficient earnings to cover the total distributions within a year, any amount exceeding the Fund’s earnings will be regarded as a return of capital. This classification is vital, as returns of capital are generally not taxable, rather treated as a reduction in the shareholder’s original investment cost basis.
Distribution Breakdown
For the year, each distribution to common shareholders is expected to include approximately 35% from net investment income, 10% from net capital gains, and 55% classified as a return of capital from a book perspective. It is crucial to emphasize that this information is subject to change and may differ for tax reporting purposes. Shareholders can expect updated estimates of distribution components to be shared in notifications accompanying each distribution.
Communication with Shareholders
All individual shareholders with taxable accounts are set to receive written notifications regarding the components and tax implications of their 2024 distributions. These notifications will be issued in early 2025 via Form 1099-DIV, ensuring investors are well-informed about their financial standings.
Contacting Investor Relations
Investors considering the GDL Fund are encouraged to review the investment objectives, associated risks, and various charges before proceeding. For any inquiries regarding the Fund's distribution policy or other related questions, investors can contact Laurissa Martire at (914) 921-5399 for detailed assistance.
About The GDL Fund
The GDL Fund operates as a diversified, closed-end management investment company with total net assets amounting to approximately $168 million. Its primary investment objective focuses on achieving absolute returns under various market conditions while mitigating excessive capital risks. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).
Frequently Asked Questions
What is the declared distribution amount for The GDL Fund?
The GDL Fund has declared a distribution of $0.12 per share.
When will the distribution be payable?
The distribution is payable on September 23, 2024, to shareholders of record.
How does The GDL Fund determine its distribution rates?
The Fund's Board of Trustees monitors net asset value and market conditions to determine distribution levels.
What portion of the distribution is generally considered a return of capital?
Returns of capital can occur if distributions exceed the earnings generated, making up a significant proportion in some instances.
Who can investors contact for more information about the fund?
Investors can reach out to Laurissa Martire at (914) 921-5399 for more information on the Fund's operations and policies.
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