Gabelli Global Small and Mid Cap Value Trust Declares Second Quarter Distribution of $0.16 per Share

Rhea-AI Summary

The Gabelli Global Small and Mid Cap Value Trust (NYSE: GGZ) declared a $0.16 per share cash distribution for Q2 2024.

Payable on June 21, 2024, to common shareholders of record on June 13, 2024, the Fund aims to distribute quarterly amounts decided by the Board.

Additionally, an adjusting distribution in December may be issued to meet IRS minimum distribution requirements.

The distribution policy is subject to change and should not be equated with dividend yield or total return.

For 2024, an estimated 3% of distributions are from net investment income, 19% from net capital gains, and 78% as a return of capital.

Final component determination will occur after year-end.

Investors should assess the Fund's objectives, risks, charges, and expenses before investing.

Positive

• Declared $0.16 per share distribution for Q2 2024.
• Commitment to quarterly distributions.
• Potential for an additional adjusting distribution in December.
• 2024 distributions include 3% from net investment income and 19% from net capital gains.

Negative

• 78% of 2024 distributions deemed a return of capital.
• Distribution policy subject to change, no guarantee of continuation.
• The distribution should not be considered as dividend yield or total return.
• Excess distributions over earnings may reduce shareholder's cost basis.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ) (the “Fund”) declared a $0.16 per share cash distribution payable on June 21, 2024 to common shareholders of record on June 13, 2024.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may 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.

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, each of the distributions paid to common shareholders in 2024 would include approximately 3% from net investment income, 19% from net capital gains and 78% 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:

Bethany Uhlein
(914) 921-5546

About The Gabelli Global Small and Mid Cap Value Trust
The Gabelli Global Small and Mid Cap Value Trust is a diversified, closed-end management investment company with $137 million in total net assets whose primary investment objective is to achieve long-term capital growth of capital. Under normal market conditions, the Fund will invest at least 80% of its total assets in equity securities (such as common stock and preferred stock) of companies with small or medium sized market capitalizations. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GGZ
CUSIP – 36249W104

Investor Relations Contact:
Bethany Uhlein
(914) 921-5546
buhlein@gabelli.com

FAQ

What is the amount of the Gabelli Global Small and Mid Cap Value Trust (GGZ) Q2 2024 distribution?

The Gabelli Global Small and Mid Cap Value Trust declared a $0.16 per share cash distribution for Q2 2024.

When is the GGZ Q2 2024 distribution payable?

The GGZ Q2 2024 distribution is payable on June 21, 2024.

What is the record date for the GGZ Q2 2024 distribution?

The record date for the GGZ Q2 2024 distribution is June 13, 2024.

What percentage of the GGZ 2024 distributions is deemed a return of capital?

Approximately 78% of the GGZ 2024 distributions is deemed a return of capital.

Can the GGZ distribution policy change?

Yes, the GGZ distribution policy is subject to modification by the Board at any time.