Gabelli Multimedia Trust 10% Distribution Policy Reaffirmed And Declared Fourth Quarter Distribution Of $0.22 Per Share

Rhea-AI Summary

Gabelli Multimedia Trust Inc. (NYSE:GGT) reaffirms its 10% distribution policy, declaring a $0.22 per share cash distribution payable on December 22, 2023, totaling $0.88 per share for 2023. The Board of Directors reviews income, realized capital gain, or capital available each quarter to determine distributions. The distribution policy is subject to modification and not indicative of dividend yield or total return. The distribution may be treated as long-term capital gain or qualified dividend income, subject to federal income tax rate for long term capital gains. Shareholders should not draw any conclusions about the fund's investment performance from the distribution rate.

Positive

• The fund has reaffirmed its 10% distribution policy, which may be attractive to income-seeking investors.
• The Board of Directors reviews income, realized capital gain, or capital available each quarter to determine distributions, showing a commitment to maintaining a consistent distribution policy.

Negative

• The distribution may be treated as long-term capital gain or qualified dividend income, subject to federal income tax rate for long term capital gains, which may not be favorable for all shareholders.
• The final determination of the sources of all distributions in 2023 will be made after year-end and can vary from the quarterly estimates, potentially causing uncertainty for shareholders.

RYE, N.Y., Nov. 16, 2023 (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 December 22, 2023 to common stock shareholders of record on December 15, 2023. With this fourth quarter distribution, the total distributions from the Fund for 2023 would equate to $0.88 per share.

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.

We note that 10% of the average net asset value of the Fund would be $0.39 based on the ending net asset values per share as of December 31, 2022, March 31, 2023, June 30, 2023, and September 30, 2023 of $3.89, $4.21, $4.05, and $3.45, respectively. In declaring a distribution of $0.22 per share, the Board of Directors has chosen to distribute $0.49 greater than that called for by the distribution policy. 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 financial market environment. 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 2023 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 2023 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 2023 distributions in early 2024 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 $183 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 distribution policy of Gabelli Multimedia Trust Inc. (NYSE:GGT)?

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.

When is the cash distribution payable for common stock shareholders of Gabelli Multimedia Trust Inc. (NYSE:GGT)?

The $0.22 per share cash distribution is payable on December 22, 2023, to common stock shareholders of record on December 15, 2023.

How are the distributions from the Fund for 2023 calculated?

With this fourth quarter distribution, the total distributions from the Fund for 2023 would equate to $0.88 per share.

What are the tax implications of the distribution?

The distribution may be treated as long-term capital gain or qualified dividend income, subject to the maximum federal income tax rate for long term capital gains, which is currently 20% in taxable accounts for individuals.

Is the distribution indicative of the fund's investment performance?

Shareholders should not draw any conclusions about the fund's investment performance from the distribution rate.