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) has confirmed its policy of fixed monthly cash distributions, declaring $0.10 per share for July, August, and September 2021. The Fund maintains a minimum annual distribution of 6% of its initial $20.00 share price. The Board of Trustees will conduct quarterly reviews of the distribution amounts, which may include additional adjustments in December based on earnings and net capital gains. Notably, distributions may be classified as long-term capital gains or return of capital, affecting tax implications for shareholders.

Positive

• Consistent distribution of $0.10 per share for July, August, and September 2021.
• Maintaining a minimum annual distribution of 6% on initial share price.

Negative

• Potential risk of not generating sufficient earnings to cover the total distributions, leading to return of capital.

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 July, August, and September 2021.

Distribution Month	Record Date	Payable Date
July	July 16, 2021	July 23, 2021
August	August 17, 2021	August 24, 2021
September	September 16, 2021	September 23, 2021

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 2021 would include approximately 19% from net investment income, 33% from net capital gains and 48% 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 2021 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 2021 distributions in early 2022 via Form 1099-DIV.

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 The Gabelli Global Utility & Income Trust

The Gabelli Global Utility & Income Trust is a non-diversified, closed-end management investment company with $178 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. (NYSE:GBL).

NYSE American – GLU
CUSIP – 36242L105

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FAQ

What is the cash distribution amount declared by GLU for July, August, and September 2021?

GLU has declared a cash distribution of $0.10 per share for each month of July, August, and September 2021.

When are the payable dates for the GLU cash distributions in 2021?

The payable dates for GLU are July 23, August 24, and September 23, 2021.

What is the minimum annual distribution policy of GLU?

GLU's minimum annual distribution policy requires a 6% distribution based on the initial public offering price of $20.00 per share.

What tax implications do GLU distributions have for shareholders?

Distributions may be treated as long-term capital gains or return of capital, with tax rates varying based on individual circumstances.

How does GLU determine its distribution levels?

GLU's Board of Trustees reviews distribution levels quarterly based on income, capital gains, and market conditions.