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

Rhea-AI Summary

The GDL Fund (NYSE:GDL) announced a $0.12 per share cash distribution for the second quarter of 2024, payable on June 21, 2024, to shareholders of record by June 13, 2024. The Board of Trustees will oversee the distribution level, considering the Fund's net asset value and market conditions. The distribution rate is not indicative of the dividend yield or total return on an investment. The Fund distributes net long-term capital gains annually and quarterly cash distributions of taxable income. A portion of the distribution may be a return of capital, which is non-taxable and reduces shareholder cost basis. The current year's distributions include approximately 13% from net investment income and 87% return of capital. Investors will receive detailed tax information in early 2025.

Positive

• The GDL Fund declared a $0.12 per share cash distribution for Q2 2024, providing potential income to shareholders.
• The Board of Trustees actively monitors the Fund’s distribution level, ensuring adaptability to market conditions.
• Distributions include a significant return of capital (87%), which is non-taxable and reduces the cost basis for shareholders.

Negative

• The Fund’s distribution rate should not be considered indicative of dividend yield or total return.
• A large portion of the distribution (87%) is deemed a return of capital, potentially reflecting insufficient earnings.
• There is uncertainty regarding the consistent payment of distributions, as they are subject to modification by the Board of Trustees.
• Investors should not draw conclusions about the Fund’s performance based on the distribution amount.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on June 21, 2024 to common shareholders of record on June 13, 2024.

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 in 2024 would include approximately 13% from net investment income and 87% 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 2024 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 2024 distributions in early 2025 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 $169 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. (OTCQX: GAMI).

NYSE – GDL
CUSIP – 361570104

Investor Relations Contact:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

What is the GDL Fund's second quarter 2024 distribution?

The GDL Fund declared a $0.12 per share cash distribution for Q2 2024.

When is the GDL Fund's Q2 2024 distribution payable?

The distribution is payable on June 21, 2024.

Who is eligible for the GDL Fund's Q2 2024 distribution?

Shareholders of record by June 13, 2024 are eligible for the distribution.

What portion of the GDL Fund's distributions in 2024 is return of capital?

Approximately 87% of the distributions paid in 2024 is deemed a return of capital.

Is the return of capital in GDL Fund's distribution taxable?

No, the return of capital is generally not taxable and reduces the shareholder's cost basis.

How often does the GDL Fund make distributions?

The GDL Fund makes annual distributions of net long-term capital gains and quarterly cash distributions of taxable income.

Can the GDL Fund's distribution levels change?

Yes, the Fund's distribution levels are subject to modification by the Board of Trustees.

What should investors consider before investing in the GDL Fund?

Investors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing.