The GDL Fund Declares Second Quarter 2021 Distribution of $0.12 Per Share
The GDL Fund (NYSE:GDL) has declared a cash distribution of $0.12 per share, payable on June 23, 2021, to shareholders of record as of June 16, 2021. The Board of Trustees monitors distribution levels, which may fluctuate based on the Fund's net asset value and market conditions. The Fund's annual distributions come from long-term capital gains and taxable income. In 2021, approximately 21% of distributions will be from net capital gains, with 79% deemed a return of capital, which generally reduces the shareholder's cost basis.
- Declared cash distribution of $0.12 per share.
- Management monitoring distribution levels based on net asset value.
- 79% of the distribution deemed a return of capital, which could indicate insufficient realized earnings.
- Distributions are subject to modification by the Board at any time.
The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a
The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
The Fund makes annual distributions of its realized net long-term capital gains and quarterly cash distributions of all or a portion of its investment company taxable income to common shareholders. A portion of the distribution may be a return of capital and various factors will affect the level of the Fund’s income, such as its asset mix and use of merger arbitrage strategies. To permit the Fund to maintain more stable distributions, the Fund may distribute more than the entire amount of income earned in a particular period. Because the Fund’s current quarterly distributions are subject to modification by the Board of Trustees at any time and the Fund’s income will fluctuate, there can be no assurance that the Fund will pay distributions at a particular rate or frequency.
If the Fund does not generate sufficient earnings (dividends and interest income, less expenses, and realized net capital gain) equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost basis.
Short-term capital gains, qualified dividend income, investment company taxable income, and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. Long-term capital gains, if any, are distributed in the final distribution of the year. Based on the accounting records of the Fund currently available, the distributions paid to common shareholders in 2021 would include approximately
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. More information regarding the Fund’s distribution policy and other information about the Fund is available by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.
About The GDL Fund
The GDL Fund is a diversified, closed-end management investment company with
NYSE – GDL
CUSIP – 361570104
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FAQ
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