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

Rhea-AI Summary

The GDL Fund (NYSE:GDL) has declared a quarterly cash distribution of $0.12 per share, payable on September 23, 2025, to shareholders of record as of September 16, 2025.

The Fund's 2025 distributions composition includes approximately 7% from net investment income, 13% from net capital gains, and 80% deemed as return of capital on a book basis. The Board of Trustees actively monitors the distribution level, considering the Fund's net asset value and market conditions.

The Fund maintains a policy of making annual distributions of realized net long-term capital gains and quarterly distributions of investment company taxable income to common shareholders.

Positive

• Regular quarterly dividend distribution maintained at $0.12 per share
• Diversified distribution composition including investment income and capital gains
• Board actively monitors and adjusts distribution levels based on market conditions

Negative

• 80% of distributions classified as return of capital, which reduces shareholder cost basis
• Distribution rate may not reflect actual dividend yield or total return
• Fund may distribute more than earned income to maintain stable distributions

News Market Reaction

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-0.36% News Effect

On the day this news was published, GDL declined 0.36%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

RYE, N.Y., Aug. 21, 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 September 23, 2025 to common shareholders of record on September 16, 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, each of the distributions paid to common shareholders in 2025 would include approximately 7% from net investment income, 13% from net capital gains and 80% 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 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 $131 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

THE GDL FUND

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

FAQ

When is The GDL Fund (NYSE:GDL) Q3 2025 distribution payable?

The GDL Fund's Q3 distribution of $0.12 per share is payable on September 23, 2025 to shareholders of record as of September 16, 2025.

What is the composition of GDL Fund's 2025 distributions?

The 2025 distributions consist of approximately 7% from net investment income, 13% from net capital gains, and 80% as return of capital on a book basis.

How does The GDL Fund determine its distribution levels?

The Board of Trustees monitors the Fund's distribution level considering the net asset value and financial market environment, adjusting for factors like asset mix and merger arbitrage strategies.

When will GDL Fund shareholders receive tax documentation for 2025 distributions?

Shareholders with taxable accounts will receive Form 1099-DIV in early 2026 detailing the tax treatment of all 2025 distributions.

What is the impact of return of capital in GDL Fund's distributions?

Return of capital portions (currently 80%) are generally not taxable but reduce the shareholder's cost basis as they represent a return of the original investment.