Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declares Distributions of $0.10 Per Share

Rhea-AI Summary

The Gabelli Global Utility & Income Trust (NYSE American: GLU) announced the continuation of its monthly cash distributions, declaring $0.10 per share for April, May, and June 2023. This aligns with the Fund's policy to maintain a minimum annual distribution of 6% based on an initial offering price of $20 per share. The Board of Trustees will review distributions quarterly and may adjust them as needed based on income and capital gains. Notably, all distributions in 2023 are anticipated to be sourced from paid-in capital. Investors should remain aware of potential tax implications, including the treatment of distributions as return of capital.

Positive

• Monthly cash distributions of $0.10 per share for April, May, and June 2023.
• Continued adherence to the Fund's minimum annual distribution policy of 6%.

Negative

• Distributions are expected to be sourced 100% from paid-in capital, indicating reliance on investor contributions.
• Potential for distributions to be treated as return of capital if earnings are insufficient.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE American: GLU) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.10 per share for each of April, May, and June 2023.

Distribution Month		Record Date		Payable Date		Distribution Per Share
April		April 14, 2023		April 21, 2023		$0.10
May		May 16, 2023		May 23, 2023		$0.10
June		June 15, 2023		June 23, 2023		$0.10

Under the Fund’s initial distribution policy, the Fund has paid a minimum annual distribution of 6% of the initial public offering price of $20.00 per share (a distribution of $0.10 per share each month).

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. 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 monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. 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.

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 2023 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 2023 will be made after year end and can vary from the monthly 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 2023 distributions in early 2024 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:

Adam Tokar
(914) 457-1079

About The Gabelli Global Utility & Income Trust

The Gabelli Global Utility & Income Trust is a non-diversified, closed-end management investment company with $160 million in total net assets whose primary investment objective is to seek a consistent level of after-tax total return for its investors with an emphasis on tax-advantaged dividend income under current tax law. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE American – GLU
CUSIP – 36242L105

View source version on businesswire.com: https://www.businesswire.com/news/home/20230217005207/en/

Adam Tokar

(914) 457-1079

Source: The Gabelli Global Utility & Income Trust

FAQ

What are the cash distributions for GLU in Q2 2023?

The Gabelli Global Utility & Income Trust has declared cash distributions of $0.10 per share for April, May, and June 2023.

What is the distribution policy of GLU?

GLU aims for a minimum annual distribution of 6% based on an initial offering price of $20.

When will the cash distribution for GLU be payable?

Distributions for April, May, and June will be payable on April 21, May 23, and June 23, 2023, respectively.

How is GLU's distribution characterized for tax purposes?

Distributions may be treated as long-term capital gains or return of capital, impacting tax liabilities for shareholders.

Does GLU guarantee its distribution policy will continue?

The distribution policy is subject to modification by the Board of Trustees at any time.