Gabelli Multimedia Trust 10% Distribution Policy Reaffirmed and Declared First Quarter Distribution of $0.22 Per Share

Rhea-AI Summary

The Gabelli Multimedia Trust Inc. (NYSE:GGT) has declared a cash distribution of $0.22 per share, payable on March 24, 2022, to shareholders on record as of March 17, 2022. This distribution aligns with the Fund’s policy of maintaining a minimum annual distribution of 10% of its average net asset value. The Fund currently holds total net assets of $313 million. The distribution can be characterized primarily as a return of capital and will be reported to shareholders in early 2023 via Form 1099-DIV.

Positive

• Declared a cash distribution of $0.22 per share, reaffirming a 10% annual distribution policy.
• Maintains significant net assets of $313 million, indicating financial stability.

Negative

• Current distribution deemed 100% from paid-in capital, raising concerns about earning sustainability.
• Potential future distributions are subject to Board discretion and financial market fluctuations.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.22 per share cash distribution payable on March 24, 2022 to common stock shareholders of record on March 17, 2022.

The Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The average net asset value of the Fund is based on the average net asset values as of the last day of the four preceding calendar quarters during the year. The net asset value per share fluctuates daily.

Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current financial market environment. The Fund’s distribution policy is subject to modification by the Board of Directors 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.

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 20% in taxable accounts for individuals (or less depending on an individual’s tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income", which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.

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 current distribution paid to common shareholders in 2022 would be deemed 100% from paid-in 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, visit www.gabelli.com or call:

Carter Austin
(914) 921-5475

About The Gabelli Multimedia Trust

The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $313 million in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE: GGT
CUSIP – 36239Q109

View source version on businesswire.com: https://www.businesswire.com/news/home/20220209005686/en/

Investor Relations Contact:

Carter Austin

(914) 921-5475

caustin@gabelli.com

Source: The Gabelli Multimedia Trust Inc.

FAQ

What is the cash distribution amount for Gabelli Multimedia Trust (NYSE:GGT) in 2022?

The Gabelli Multimedia Trust has declared a cash distribution of $0.22 per share for 2022.

When is the Gabelli Multimedia Trust's cash distribution payable?

The distribution is payable on March 24, 2022.

What is the minimum distribution policy of Gabelli Multimedia Trust?

Gabelli Multimedia Trust aims to distribute a minimum of 10% of its average net asset value annually.

How much are the total net assets of Gabelli Multimedia Trust (NYSE:GGT)?

The total net assets of Gabelli Multimedia Trust amount to $313 million.

What percentage of the Gabelli Multimedia Trust's distribution is from paid-in capital?

The current distribution is deemed 100% from paid-in capital.