CORRECTION -- Gabelli Multimedia Trust Reinforces Maintenance of $0.88 per Share Annual Distribution Continues Monthly Distributions

Rhea-AI Summary

The Gabelli Multimedia Trust (NYSE:GGT) has announced the continuation of its fixed monthly cash distribution policy, maintaining its $0.88 per share annual distribution. The Fund's Board approved distributions for July ($0.07), August ($0.07), and September 2025 ($0.08), following a quarterly pattern of $0.22 per share. This includes previously declared distributions of $0.14 for April-May and $0.08 for June 2025. The Fund has shifted from its previous quarterly "managed distribution policy" to monthly distributions of investment company taxable income. Based on current accounting records, all 2025 distributions would be considered 100% from paid-in capital on a book basis, though final tax determinations will be made after year-end.

Positive

• Maintained stable annual distribution rate of $0.88 per share
• Consistent monthly distribution schedule provides regular income for shareholders
• Transparent distribution schedule announced through September 2025

Negative

• 100% of 2025 distributions currently sourced from paid-in capital rather than earnings
• Fund no longer maintains managed distribution policy under SEC exemptive relief
• Distribution levels subject to modification based on market conditions and Fund performance

Insights

Financial Analyst

Gabelli Multimedia Trust maintains its $0.88 annual distribution while transitioning from quarterly to monthly payments, providing income stability for shareholders.

The correction notice from Gabelli Multimedia Trust (GGT) is primarily administrative, fixing a payable date error for the September distribution (changing from September 16 to September 23, 2025). The substantive information confirms the fund is maintaining its $0.88 per share annual distribution rate, now distributed monthly rather than quarterly.

The distribution will follow a pattern of $0.07 per share for the first two months of each quarter and $0.08 for the third month. This structured approach provides shareholders with more frequent income flows while maintaining the same annual payout. For the upcoming months:

• July: $0.07 per share (payable July 24)
• August: $0.07 per share (payable August 22)
• September: $0.08 per share (payable September 23)

The fund has also moved away from its previous "managed distribution policy" that operated under special SEC exemptive relief, which had allowed more frequent distribution of long-term capital gains. Going forward, the fund will distribute investment company taxable income (ordinary income and short-term gains) monthly, while long-term capital gains will be distributed annually.

Notably, the current distributions for 2025 appear to be 100% from paid-in capital (return of principal) rather than from investment income or capital gains. This suggests the fund is returning shareholders' original investment rather than distributing profits, which could eventually impact the fund's net asset value if this pattern continues. Investors should understand that return of capital distributions aren't necessarily sustainable in the long term if not matched by equivalent portfolio growth.

RYE, N.Y., May 15, 2025 (GLOBE NEWSWIRE) -- In a release issued under the same headline on May 14, 2025 by The Gabelli Multimedia Trust Inc. (NYSE:GGT) please note that in the table, the September Payable Date should be September 23, 2025, not September 16, 2025, as previously stated. The corrected release follows:

The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Directors declared cash distributions as set forth below for each of July, August, and September 2025.

Distribution Month	Record Date	Payable Date	Distribution Per Share
July	July 17, 2025	July 24, 2025	$0.07
August	August 15, 2025	August 22, 2025	$0.07
September	September 16, 2025	September 23, 2025	$0.08

Under its monthly distribution policy, the Fund will continue to pay a $0.22 per share quarterly distribution, with $0.07 per share paid for each of the first two months of the quarter and $0.08 per share paid in the third month of each quarter.

In light of the above policy, the Fund previously declared a $0.14 per share cash distribution (covering the months of April and May) payable on May 22, 2025 to common stock shareholders of record on May 15, 2025, and a $0.08 per share cash distribution payable on June 23, 2025 to common stock shareholders of record on June 13, 2025. The distributions reflect an annualized distribution of $0.88 per share.

The Fund previously paid quarterly distributions in accordance with a “managed distribution policy” adopted pursuant to an exemptive order granted to the Fund by the Securities and Exchange Commission, which permitted the Fund to distribute long-term capital gains more frequently than the limits provided in the Investment Company Act and the rules and regulations thereunder. The Fund no longer intends to rely on this exemptive relief to maintain a managed distribution policy in connection with its monthly distributions.

The Fund currently intends to make monthly cash distributions of all or a portion of its investment company taxable income (which includes ordinary income and realized net short term capital gains) to common shareholders. The Fund also intends to make annual distributions of its realized net long term capital gains, if any. The Fund, however, may make more than one capital gain distribution to avoid paying U.S. federal excise tax. A portion of each distribution may be a return of capital. Various factors will affect the level of the Fund’s income. To permit the Fund to maintain more stable distributions, the Fund may from time to time distribute more or less than the entire amount of income earned in a particular period. The Fund’s distribution policy may be modified from time to time by the Board as it deems appropriate, including in light of market and economic conditions and the Fund’s current, expected and historical earnings and investment performance. Because the Fund’s monthly distributions are subject to modification by the Board 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.

Based on the accounting records of the Fund currently available, each of the distributions 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 monthly 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:

Carter Austin
(914) 921-5475

About The Gabelli Multimedia Trust
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $194 million in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE: GGT
CUSIP – 36239Q109

Investor Relations Contact:
Carter Austin
(914) 921-5475
caustin@gabelli.com

FAQ

What is GGT's current annual distribution rate?

The Gabelli Multimedia Trust (GGT) maintains an annual distribution rate of $0.88 per share, paid monthly.

How are GGT's monthly distributions structured in 2025?

GGT pays $0.22 quarterly, distributed as $0.07 for each of the first two months and $0.08 for the third month of each quarter.

What is the source of GGT's 2025 distributions?

Based on current accounting records, 100% of GGT's 2025 distributions are considered to be from paid-in capital on a book basis.

When will GGT shareholders receive tax information for 2025 distributions?

Shareholders with taxable accounts will receive Form 1099-DIV with tax treatment information for all 2025 distributions in early 2026.

What are the next distribution dates for GGT stock?

The next distributions are scheduled for July 24 ($0.07), August 22 ($0.07), and September 23, 2025 ($0.08).