Gabelli Multimedia Trust 10% Distribution Policy Reaffirmed and Declared Third Quarter Distribution of $0.22 Per Share

Rhea-AI Summary

The Gabelli Multimedia Trust Inc. (NYSE:GGT) has reaffirmed its 10% distribution policy and declared a $0.22 per share cash distribution for the third quarter, payable on September 23, 2024. The distribution is based on the average net asset value (NAV) of the Fund, with the current NAV at $3.75 per share. The Board of Directors will continue to monitor the distribution level, considering market conditions and the Fund's NAV.

The Fund aims to pay a minimum annual distribution of 10% of its average NAV or an amount sufficient to meet IRS requirements for regulated investment companies. Distributions may be treated as long-term capital gain or qualified dividend income, subject to applicable tax rates. The Fund's distribution policy is subject to modification, and there's no guarantee of continuation.

Positive

• Reaffirmation of 10% distribution policy
• Declared $0.22 per share cash distribution for Q3 2024
• Current net asset value of $3.75 per share

Negative

• Distribution may be deemed a return of capital if Fund's earnings are insufficient
• Potential tax implications for shareholders, including 3.8% Medicare surcharge for some investors

RYE, N.Y., Aug. 23, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.22 per share cash distribution payable on September 23, 2024 to common stock shareholders of record on September 16, 2024.

We note that the minimum annual distribution of 10% of the average net asset value of the Fund is based on the ending net asset values per share as of December 31, 2023, March 31, 2024, June 30, 2024, and September 30, 2024. The current net asset value is $3.75 per share and 10% of the average net asset values of the Fund would be an annualized amount approaching $0.36 per share. The net asset value per share fluctuates daily.

The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current financial market environment.

The Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Fund’s distribution policy is subject to modification by the Board of Directors at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both) for individuals, each subject to the maximum federal income tax rate for long term capital gains, which is currently 20% in taxable accounts for individuals (or less depending on an individual’s tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income", which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.

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.

Long-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. Based on the accounting records of the Fund currently available, each of the distributions paid to common shareholders in 2024 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 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:

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 $197 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 the Q3 2024 distribution amount for Gabelli Multimedia Trust (GGT)?

The Gabelli Multimedia Trust (NYSE:GGT) declared a $0.22 per share cash distribution for the third quarter of 2024, payable on September 23, 2024.

When is the record date for GGT's Q3 2024 distribution?

The record date for Gabelli Multimedia Trust's (GGT) third quarter 2024 distribution is September 16, 2024.

What is the current net asset value (NAV) of Gabelli Multimedia Trust (GGT)?

The current net asset value of Gabelli Multimedia Trust (GGT) is $3.75 per share.

How is Gabelli Multimedia Trust's (GGT) distribution policy determined?

GGT aims to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year, based on the ending NAVs of the previous four quarters.