The GDL Fund Declares First Quarter Distribution of $0.12 Per Share

Rhea-AI Summary

The GDL Fund (NYSE:GDL) has announced a quarterly cash distribution of $0.12 per share, payable on March 24, 2025, to shareholders of record as of March 17, 2025. The Fund's Board of Trustees actively monitors distribution levels considering net asset value and market conditions.

The distribution may include realized net long-term capital gains, investment company taxable income, and potentially a return of capital. Based on current accounting records, the 2025 distribution would be considered 100% from paid-in capital on a book basis. The Fund maintains flexibility in distribution rates to provide more stable distributions, though this may result in distributing more than earned in a particular period.

Shareholders will receive detailed tax information for 2025 distributions via Form 1099-DIV in early 2026.

Positive

• Maintaining consistent quarterly distribution of $0.12 per share
• Board actively monitors distribution levels to maintain stability

Negative

• Current distribution appears to be 100% from paid-in capital rather than earnings
• Potential return of capital indicates Fund may be distributing more than it earns

RYE, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on March 24, 2025 to common shareholders of record on March 17, 2025.

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 to common shareholders. A portion of the distribution may be a return of capital and 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, 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. Long-term capital gains, if any, are distributed in the final distribution of the year. Based on the accounting records of the Fund currently available, the current distribution paid to common shareholders in 2025 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 2025 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 2025 distributions in early 2026 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Laurissa Martire
(914) 921-5399

About The GDL Fund
The GDL Fund is a diversified, closed-end management investment company with $167 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. (OTCQX: GAMI).

NYSE – GDL
CUSIP – 361570104

Investor Relations Contact:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

What is the Q1 2025 distribution amount for GDL Fund shareholders?

The GDL Fund has declared a quarterly distribution of $0.12 per share for Q1 2025.

When is the GDL Fund's Q1 2025 distribution payable?

The distribution is payable on March 24, 2025, to shareholders of record as of March 17, 2025.

What is the source of GDL Fund's 2025 distribution?

Based on current accounting records, the 2025 distribution is considered 100% from paid-in capital on a book basis.

How will GDL Fund shareholders receive tax information for 2025 distributions?

Shareholders will receive tax information for all 2025 distributions via Form 1099-DIV in early 2026.

What factors affect GDL Fund's distribution levels?

The Fund's distribution levels are affected by its net asset value, financial market environment, asset mix, and use of merger arbitrage strategies.