The GDL Fund Declares Second Quarter 2022 Distribution of $0.12 Per Share

Rhea-AI Summary

The GDL Fund (NYSE:GDL) has declared a cash distribution of $0.12 per share, payable on June 23, 2022, to shareholders of record as of June 15, 2022. This marks a continuation of the Fund's strategy to provide annual distributions from long-term capital gains and quarterly distributions of taxable income. The Fund's distribution levels are subject to adjustment based on net asset value and market conditions, with the possibility of some distributions being classified as a return of capital.

Positive

• Cash distribution of $0.12 per share declared.
• Diversified, closed-end investment strategy aiming for absolute returns.
• Managed by Gabelli Funds, LLC with total net assets of $208 million.

Negative

• Distributions subject to modification by the Board of Trustees.
• Potential for distributions to be classified as return of capital, impacting shareholder investment basis.
• High percentage (90%) of distribution deemed a return of capital could indicate reliance on capital rather than investment income.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on June 23, 2022 to common shareholders of record on June 15, 2022.

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, each of the distributions paid to common shareholders for 2022 would include approximately 1% from net investment income, 9% from net capital gains, and 90% would be deemed a return of capital on a book basis. This does not represent information for tax reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2022 will be made after year end and can vary from the quarterly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2022 distributions in early 2023 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Laurissa Martire
(914) 921-5399

About The GDL Fund

The GDL Fund is a diversified, closed-end management investment company with $208 million in total net assets whose investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE – GDL
CUSIP – 361570104

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Laurissa Martire

(914) 921-5399

Source: The GDL Fund

FAQ

When is the GDL Fund cash distribution payable?

The GDL Fund cash distribution is payable on June 23, 2022.

What is the amount of the GDL Fund distribution?

The GDL Fund has declared a distribution of $0.12 per share.

What factors affect the GDL Fund's distribution levels?

The GDL Fund's distribution levels are influenced by its net asset value and financial market environment.

How is the GDL Fund's distribution classified for tax purposes?

Distributions may include a return of capital, which is generally not taxable, reducing the shareholder's cost basis.

What percentage of the GDL Fund's 2022 distribution is deemed a return of capital?

Approximately 90% of the GDL Fund's 2022 distribution is classified as a return of capital.