Gabelli Go Anywhere Trust Series A Cumulative Preferred Shares Declares $0.50 Quarterly Dividend and Announces Intention to Redeem
The Gabelli Go Anywhere Trust (NYSE American: GGO) has announced a cash distribution of $0.50 per share, payable on June 28, 2021, to Series A preferred shareholders of record as of June 21, 2021. The Fund plans to redeem Series A Preferred Shares starting five years from September 15, 2016, at a price of $40.00 each, plus any unpaid distributions. Shareholders may be subject to long-term capital gains tax on the distribution, with an estimated 2% coming from net investment income and 98% from net capital gains.
- Cash distribution of $0.50 per share indicates strong management confidence.
- Distribution includes 98% from net capital gains, enhancing shareholder returns.
- Potential for a return of capital if earnings are insufficient to cover distributions, impacting long-term investment value.
The Board of Trustees of The Gabelli Go Anywhere Trust (NYSE American: GGO) (the “Fund”) declared a
Commencing five years from the closing date of the offering (September 15, 2016), and thereafter, to the extent permitted by the Investment Company Act of 1940 (the “1940 Act”) and Delaware law, the Fund intends, upon notice, to redeem the Series A Preferred Shares at a price equal to the liquidation preference (
The Series A Preferred Shares trade on the NYSE American under the symbol “GGO.A”. From and after the date of redemption, the Series A Preferred Shares being redeemed will no longer be deemed outstanding, dividends will cease to accumulate and all the rights of the holders of the Series A Preferred Shares with respect to the Series A Preferred Shares will cease.
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 to the Preferred Shareholders 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, and investment company taxable income, if any, will be allocated on a pro-rata basis to all distributions to preferred shareholders for the year. Based on the accounting records of the Fund currently available, the distributions paid to preferred 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 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.A
CUSIP – 36250J208
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