Gabelli Global Small and Mid Cap Value Trust Declares Third Quarter Distribution of $0.16 Per Share

Rhea-AI Summary

The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ) announced a cash distribution of $0.16 per share, payable on September 23, 2022, to shareholders of record on September 16, 2022. The Board of Trustees will review the distribution amount quarterly, which may include adjustments for additional income and capital gains. About 1% of the 2022 distributions will come from net investment income, 21% from net capital gains, and 78% will be deemed return of capital. Total net assets of the Fund are $167 million.

Positive

• Declared a cash distribution of $0.16 per share, benefiting shareholders.
• Fund has $167 million in total net assets, indicating financial stability.

Negative

• Distribution amount is not guaranteed and may change at the Board's discretion.
• A significant portion of distributions may be treated as return of capital, impacting shareholders’ cost basis.

RYE, N.Y.--(BUSINESS WIRE)-- 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 September 23, 2022 to common shareholders of record on September 16, 2022.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. The Board of Trustees may change the amount of the quarterly distribution at any time. 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 Trustees reviews the amount of any potential distribution and 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 or termination 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.

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 up 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, ordinary 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 2022 would include approximately 1% from net investment income, 21% 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 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 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, 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 $167 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. (NYSE:GBL).

NYSE – GGZ
CUSIP – 36249W104

View source version on businesswire.com: https://www.businesswire.com/news/home/20220818005385/en/

THE GABELLI GLOBAL SMALL AND MID CAP VALUE TRUST

Investor Relations Contact:

Bethany Uhlein

(914) 921-5546

buhlein@gabelli.com

Source: The Gabelli Global Small and Mid Cap Value Trust

FAQ

What is the cash distribution amount declared by The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ)?

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

When is the cash distribution payable for GGZ?

The cash distribution for GGZ is payable on September 23, 2022.

What are the components of the distribution for GGZ in 2022?

For 2022, approximately 1% of the distribution will come from net investment income, 21% from net capital gains, and 78% as return of capital.

How much are the total net assets of The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ)?

The total net assets of The Gabelli Global Small and Mid Cap Value Trust are $167 million.

What does the return of capital mean for shareholders of GGZ?

A return of capital means that the distribution is considered a return of a portion of a shareholder's original investment, generally not taxable and treated as a reduction in cost basis.