RYE, N.Y.–(BUSINESS WIRE)–The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a
$0.10 per share cash distribution payable on June 21, 2019 to common
shareholders of record on June 14, 2019.
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. The distribution rate should not
be considered the dividend yield or total return on an investment in the
Fund.
The Fund makes annual distributions of its realized net long-term
capital gains and quarterly cash distributions of all or a portion of
its investment company taxable income (which includes net investment
income and net realized short-term capital gains) to common
shareholders. A portion of the distribution may be a return of capital.
Various factors will affect the level of the Fund’s income, such as its
asset mix and use of merger arbitrage strategies. To permit the Fund to
maintain more stable distributions, the Fund may distribute more than
the entire amount of income earned in a particular period. Because the
Fund’s current quarterly distributions are subject to modification by
the Board of Trustees at any time and the Fund’s income will fluctuate,
there can be no assurance that the Fund will pay distributions at a
particular rate or frequency.
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.
Short-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 2019 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 2019 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 2019 distributions in
early 2020 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.
The GDL Fund is a diversified, closed-end management investment company
with $315 million in total net assets whose investment objective is to
achieve absolute returns in various market conditions without excessive
risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL).
Contacts
For information:
Laurissa Martire
(914) 921-5070
