Gabelli Convertible & Income Securities Fund NAV Performance Up 30% & Market Return Up 17% in 2020 Declares First Quarter Dis...
February 25 2021 - 8:53AM
Business Wire
The Board of Directors of The Gabelli Convertible and Income
Securities Fund Inc. (NYSE:GCV) (the “Fund”) declared a $0.12 per
share cash distribution payable on March 24, 2021 to common stock
shareholders of record on March 17, 2021. The distribution follows
on the strength of the Fund’s returns in 2020.
The Fund intends to pay a minimum annual distribution of 8% of
the average net asset value of the Fund within a calendar year or
an amount sufficient to satisfy the minimum distribution
requirements of the Internal Revenue Code for regulated investment
companies. Each quarter, the Board of Directors reviews the amount
of any potential distribution from the income, realized capital
gain, or capital available.
The Board of Directors 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 Directors 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 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, the current distribution paid to common
shareholders in 2021 would include approximately 80% from net
capital gains and 20% would be deemed a return of capital on a book
basis. This information 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. The
final determination of the sources of all distributions in 2021
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 2021 distributions in early 2022 via Form
1099-DIV.
Returns represent past performance and do not guarantee future
results. Current performance may be lower or higher than the
performance data quoted. Investment return and principal value will
fluctuate so, upon redemption, shares may be worth more or less
than their original cost.
The Fund’s NAV per share will fluctuate with changes in the
market value of the Fund’s portfolio securities. Stocks are subject
to market, economic, and business risks that cause their prices to
fluctuate. Investors acquire shares of the Fund on a securities
exchange at market value, which fluctuates according to the
dynamics of supply and demand. When Fund shares are sold, they may
be worth more or less than their original cost. Consequently, you
can lose money by investing in the Fund.
Investors should carefully consider the investment objectives,
risks, charges, and expenses of the Fund before investing. To
obtain the most recent month end performance information or for
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 Gabelli Convertible and Income Securities Fund The
Gabelli Convertible and Income Securities Fund Inc. is a
diversified, closed-end management investment company with $170
million in total net assets whose primary investment objective is
to seek a high level of total return on its assets through a
combination of current income and capital appreciation. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors,
Inc. (NYSE:GBL).
NYSE: GCV CUSIP – 36240B109
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version on businesswire.com: https://www.businesswire.com/news/home/20210225005745/en/
Investor Relations Contact: Laurissa Martire (914) 921-5399
lmartire@gabelli.com
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