Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.10 Per Share
February 24 2017 - 8:55AM
Business Wire
The Board of Trustees of The Gabelli Global Utility & Income
Trust (NYSE MKT: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 2017.
The distribution for April 2017 will be payable on April 21,
2017 to common shareholders of record on April 13, 2017.
The distribution for May 2017 will be payable on May 23, 2017 to
common shareholders of record on May 16, 2017.
The distribution for June 2017 will be payable on June 23, 2017
to common shareholders of record on June 16, 2017.
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. 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, which is currently 20% in taxable accounts for
individuals (or zero 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 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 is 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
2017 would include approximately 100% would be deemed a return of
capital. This does not currently 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 2017 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 shareholders with taxable accounts will
receive written notification regarding the components and tax
treatment for all 2017 distributions in early 2018 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 Gabelli Global Utility & Income Trust is a
non-diversified, closed-end management investment company with $136
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).
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The Gabelli Global Utility & Income TrustAdam Tokar,
914-921-5070
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