Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.10 Per Share
November 13 2020 - 9:15AM
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 January, February, and March 2021.
Distribution Month
Record Date
Payable Date
January
January 14, 2021
January 22, 2021
February
February 11, 2021
February 19, 2021
March
March 17, 2021
March 24, 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 2020 would be deemed 100% from paid-in capital on a
book basis. The source of the distributions will likely change due
to investment activity through the end of the calendar year and
this information does not represent what should be reported for tax
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 2020
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 2020 distributions in early 2021 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 $163
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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version on businesswire.com: https://www.businesswire.com/news/home/20201113005419/en/
Investor Relations Contact: Adam Tokar (914) 457-1079
atokar@gabelli.com
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