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. The Board approved distributions for July ($0.07), August ($0.07), and September 2025 ($0.08), maintaining its quarterly distribution of $0.22 per share. This reflects an annualized distribution of $0.88 per share. The Fund will distribute investment company taxable income and realized net long-term capital gains to shareholders. Based on current accounting records, distributions paid to common shareholders in 2025 would be considered 100% from paid-in capital on a book basis. The Fund no longer relies on SEC exemptive relief for its managed distribution policy and will provide tax treatment information via Form 1099-DIV in early 2026.

Positive

• Consistent monthly distribution schedule maintained at $0.88 per share annually
• Clear distribution timeline with specific record and payable dates provided
• Flexibility in distribution policy allowing adjustment based on market conditions and Fund performance

Negative

• 100% of distributions currently sourced from paid-in capital rather than earnings
• No guarantee of maintaining current distribution rate due to fluctuating income

Insights

Income-Focused Investment Analyst

Gabelli Multimedia Trust maintains its $0.88 annual distribution rate across monthly payments, with distributions potentially coming entirely from paid-in capital rather than earnings.

Gabelli Multimedia Trust (NYSE: GGT) has reinforced its commitment to maintaining its fixed distribution policy, continuing to provide shareholders with $0.88 per share annually. The fund will distribute this amount through monthly payments of $0.07 for the first two months of each quarter and $0.08 for the third month.

What's particularly noteworthy is the fund's disclosure that, based on current accounting records, 100% of the 2025 distributions to date would be classified as return of capital (paid-in capital) rather than from investment income or capital gains. This is a critical distinction for investors because return of capital distributions are not immediately taxable but instead reduce your cost basis in the fund, potentially creating larger capital gains when shares are eventually sold.

The fund has also moved away from its previous "managed distribution policy" that operated under special SEC exemptive relief, which had allowed more frequent long-term capital gains distributions than typically permitted. Instead, GGT now plans to distribute investment company taxable income monthly and realized net long-term capital gains annually.

For income-focused investors, the $0.88 annual distribution provides consistency, but the return of capital nature suggests the fund may not be generating sufficient income and gains to cover its distributions naturally. While this approach helps maintain stable payments, it essentially means shareholders are receiving portions of their own investment back rather than new income generated by the fund's portfolio. Investors should monitor if this pattern continues, as sustained returns of capital can eventually erode the fund's asset base if not offset by portfolio appreciation.

RYE, N.Y., May 14, 2025 (GLOBE NEWSWIRE) -- 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 16, 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 per share?

The Gabelli Multimedia Trust (GGT) maintains an annualized distribution rate of $0.88 per share.

When are GGT's next distribution payment dates for Q3 2025?

GGT will pay distributions on July 24 ($0.07), August 22 ($0.07), and September 16, 2025 ($0.08).

How are GGT's 2025 distributions classified for accounting purposes?

Based on current accounting records, 100% of distributions paid to common shareholders in 2025 would be deemed from paid-in capital on a book basis.

How often does Gabelli Multimedia Trust (GGT) pay distributions?

GGT pays monthly distributions, with $0.07 per share for the first two months of each quarter and $0.08 for the third month.

When will GGT shareholders receive tax information for 2025 distributions?

Shareholders will receive tax treatment information via Form 1099-DIV in early 2026.