Gabelli Go Anywhere Trust Declares Second Quarter Distribution of $0.05 Per Share
The Gabelli Go Anywhere Trust (NYSE American: GGO) announced a cash distribution of $0.05 per share, effective June 23, 2021, to shareholders of record on June 16, 2021. The Board of Trustees reviews quarterly distributions, with provisions for adjusting distributions in December to meet Internal Revenue Code requirements. Additionally, a cash tender offer will commence by September 15, 2021, for common shares at a minimum of 95% of net asset value. The Fund's distribution policy is subject to change, and distributions may contain capital gains, which are subject to taxation.
- Declared a cash distribution of $0.05 per share, indicating a commitment to returning value to shareholders.
- The distribution policy allows for adjustments, potentially increasing distributions based on performance.
- Upcoming cash tender offer could provide liquidity and value realization for shareholders.
- There is a risk that distributions may be classified as return of capital if the Fund doesn't generate sufficient earnings, impacting shareholder cost basis.
- The distribution rate is not guaranteed and is subject to the discretion of the Board of Trustees.
The Board of Trustees of The Gabelli Go Anywhere Trust (NYSE American: GGO) (the “Fund”) declared a
The Fund’s distribution policy is to pay a quarterly distribution of an amount to be determined by the Board of Trustees. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies.
Each quarter, the Board of Trustees reviews the amount of any potential distribution from the income, realized capital gain, or capital available. 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 Fund’s distribution policy is subject to modification by the Board of Trustees at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
In accordance with the terms of the Fund’s Declaration of Trust, the Fund, not later than 30 days prior to the fifth anniversary of the closing date of the offering (September 15, 2016), will commence a cash tender offer (the “Fifth Anniversary Tender Offer”) for any and all of the common shares at a price per common share determined by the Board of Trustees and expressed as a percentage (but not less than
Prior to purchasing common shares tendered pursuant to the Fifth Anniversary Tender Offer, the Fund will, pursuant to the terms of the Series A Cumulative Puttable and Callable Preferred Shares (the “Series A Preferred Shares”), redeem any amount of Series A Preferred Shares necessary to ensure that the Fund will have “asset coverage,” as defined in the Investment Company Act of 1940, of at least
In addition, the Fund intends, upon notice, to redeem the Series A Preferred Shares at a price equal to the liquidation preference (
All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both) for individuals, each subject to the maximum federal income tax rate for long term capital gains, which is currently
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.
Long-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. Based on the accounting records of the Fund currently available, the distributions paid to common shareholders in 2021 would include approximately
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities of the Fund. The solicitation and the offer to purchase common shares of the Fund will be made pursuant to an offer to purchase and related materials that the Fund intends to file with the SEC. At the time the tender offer is commenced, the Fund intends to file a Tender Offer Statement on Schedule TO containing an offer to purchase, forms of letters of transmittal and other documents relating to the tender offer. The Fund intends to mail these documents to the shareholders of the Fund. These documents will contain important information about the tender offer and shareholders of the Fund are urged to read them carefully when they become available. Investors may obtain free copies of the Tender Offer Statement and other documents (when they become available) filed with the SEC at the SEC’s web site at www.sec.gov. In addition, free copies of the Tender Offer Statement and other documents filed with the SEC may also be obtained after the commencement of the Tender Offer by directing a request to: Gabelli Funds, or by calling (800) 422-3554.
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 Gabelli Go Anywhere Trust
The Gabelli Go Anywhere Trust is a non-diversified, closed-end management investment company whose primary investment objective is total return, consisting of capital appreciation and current income. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).
NYSE American: GGO
CUSIP – 36250J109
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FAQ
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