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

Rhea-AI Summary

The GDL Fund (NYSE:GDL) declared a $0.12 per share cash distribution payable March 24, 2026 to shareholders of record March 17, 2026. The Board said it will monitor distribution levels versus NAV and market conditions and may modify distributions at any time.

On a book basis, the current 2026 distribution would be deemed 100% return of capital, pending final year-end tax characterization; Form 1099-DIV details will follow in early 2027.

Positive

• Declared cash distribution of $0.12 per share payable March 24, 2026
• Board will monitor distributions using NAV and market conditions to inform future levels

Negative

• 2026 distribution currently deemed 100% return of capital on a book basis
• Fund may distribute more than income, indicating distributions could exceed earnings and reduce cost basis

RYE, N.Y., Feb. 11, 2026 (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, 2026 to common shareholders of record on March 17, 2026.

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 2026 would be deemed 100% from return of 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 2026 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 2026 distributions in early 2027 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 $134 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 distribution did The GDL Fund (GDL) declare for March 2026?

The Fund declared a $0.12 per share cash distribution payable March 24, 2026. According to the company, shareholders of record on March 17, 2026 will receive the distribution, with tax components finalized after year end.

Is the GDL distribution in 2026 taxable as income or return of capital?

Currently the distribution is deemed 100% return of capital on a book basis for 2026. According to the company, final tax characterization will be determined after year end and reported on Form 1099-DIV in early 2027.

What does a return of capital distribution mean for GDL shareholders?

A return of capital reduces a shareholder's cost basis rather than being taxed as ordinary income. According to the company, return of capital reflects distributions in excess of earnings and will be allocated pro rata for 2026.

When will GDL shareholders receive tax reporting for 2026 distributions?

Individual taxable shareholders will receive Form 1099-DIV in early 2027 with component details for 2026 distributions. According to the company, the final sources of distributions are determined after year end.

Could GDL change its quarterly distribution amount in 2026?

Yes. The Board may modify quarterly distributions at any time based on NAV, earnings, and market conditions. According to the company, there is no assurance distributions will be paid at a particular rate or frequency.