Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.10 Per Share
August 20 2015 - 8:27AM
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
October, November, and December 2015.
The distribution for October 2015 will be payable on October 23,
2015 to common shareholders of record on October 16, 2015.
The distribution for November 2015 will be payable on November
20, 2015 to common shareholders of record on November 13, 2015.
The distribution for December 2015 will be payable on December
18, 2015 to common shareholders of record on December 11, 2015.
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). 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.
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. Under federal tax regulations, some or
all of the return of capital distributed by the Fund may be taxable
as ordinary income in certain circumstances. This may occur when
the Fund has a capital loss carry forward, net capital gains are
realized in a fiscal year, and distributions are made in excess of
investment company taxable income.
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 as of August 17,
2015, each of the distributions paid to common shareholders in 2015
would include approximately 34% from net investment income, 16%
from net capital gains and 50% would be deemed a return of capital
on a book basis and 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 2015 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 2015 distributions in early 2016 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 $139
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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