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

Rhea-AI Summary

The GDL Fund (NYSE:GDL) has announced a $0.12 per share cash distribution for the third quarter, payable on September 23, 2024, to shareholders of record on September 16, 2024. The Fund's Board of Trustees will continue monitoring the distribution level, considering factors such as net asset value and market conditions.

Key points:

• The Fund makes annual distributions of realized net long-term capital gains and quarterly distributions of investment company taxable income.
• The current distribution breakdown is approximately 35% from net investment income, 10% from net capital gains, and 55% deemed a return of capital.
• Distributions may include more than the entire amount of income earned in a period to maintain stability.
• Final determination of distribution sources will be made after year-end, with shareholders receiving Form 1099-DIV in early 2025 for tax reporting purposes.

RYE, N.Y., Aug. 23, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on September 23, 2024 to common shareholders of record on September 16, 2024.

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, each of the distributions paid to common shareholders in 2024 would include approximately 35% from net investment income, 10% from net capital gains and 55% would be deemed a 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 2024 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 2024 distributions in early 2025 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 $168 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 amount of The GDL Fund's (GDL) third quarter distribution for 2024?

The GDL Fund (GDL) has declared a third quarter distribution of $0.12 per share for 2024.

When is the payment date for The GDL Fund's (GDL) third quarter 2024 distribution?

The payment date for The GDL Fund's (GDL) third quarter 2024 distribution is September 23, 2024.

What is the record date for The GDL Fund's (GDL) third quarter 2024 distribution?

The record date for The GDL Fund's (GDL) third quarter 2024 distribution is September 16, 2024.

How are The GDL Fund's (GDL) distributions typically composed?

The GDL Fund's (GDL) distributions typically include net investment income, net capital gains, and may include a return of capital. For 2024, the estimated breakdown is 35% net investment income, 10% net capital gains, and 55% return of capital.

When will shareholders of The GDL Fund (GDL) receive tax information for 2024 distributions?

Shareholders of The GDL Fund (GDL) will receive Form 1099-DIV with tax information for 2024 distributions in early 2025.