Gabelli Global Small and Mid Cap Value Trust Increases Quarterly Distribution 31% to $0.21 from $0.16 Annual Distribution to $0.84 from $0.64 Per Share

Rhea-AI Summary

Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ) increased its annualized distribution 31% to $0.84 per share, payable as a quarterly distribution of $0.21 per share beginning with the December 19, 2025 payment to shareholders of record on December 12, 2025.

The Board cited the Fund’s 25% year-to-date market total return and will continue to set quarterly amounts based on income, realized gains, and available capital. The Fund may also pay an adjusting December distribution to meet RIC tax requirements.

Estimated 2025 distribution composition: 24% net investment income, 38% net capital gains, 38% return of capital (book basis). Final tax components will be reported on Form 1099-DIV in early 2026.

Positive

• Annual distribution increased 31% to $0.84 per share
• Quarterly payment raised to $0.21 per share starting Dec 19, 2025
• Fund performance 25% market total return year-to-date

Negative

• 38% of distributions estimated as return of capital on a book basis
• Distribution level not guaranteed and subject to Board modification
• Potential tax impact: high-income U.S. shareholders may face 3.8% Medicare surcharge

Insights

Fund distribution analyst

Fund raises its annual distribution 31% to $0.84, payable quarterly at $0.21, starting Dec 19, 2025.

The Board increased the quarterly payout to $0.21 from $0.16, citing a year‑to‑date market total return of 25%. This raises cash returned to shareholders each quarter while preserving the option to make an adjusting December distribution to meet RIC rules. The fund states each quarter's distribution will be set by the Board and may draw on income, realized capital gains, or capital available.

Key dependencies and risks include the Fund’s ability to generate sufficient earnings to cover distributions and the Board’s ongoing discretion to change policy. The release notes that, based on current accounting records, 2025 distributions would be roughly 24% net investment income, 38% net capital gains and 38% return of capital on a book basis, which could affect tax reporting and cost basis. The tax notice also cites the maximum long‑term capital gains rate of 20% and the 3.8% Medicare net investment income surcharge for certain taxpayers.

Watch the Board’s quarterly notices and the December year‑end distribution for final sourcing and any return‑of‑capital adjustments; expect final tax components on Form 1099‑DIV in early 2026. Short horizon: next distribution record date Dec 12, 2025 and payable Dec 19, 2025. Medium horizon: monitor quarterly Board determinations and the announced distribution policy changes.

RYE, N.Y., Nov. 12, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Global Small and Mid Cap Value Trust (NYSE:GGZ) (the “Fund”) approved an increase in the annualized distribution to $0.84 per share, which will be paid $0.21 per share quarterly, commencing with the quarterly distribution payable on December 19, 2025 to common shareholders of record on December 12, 2025. The increase follows on the strength of the Fund’s market total return of 25% year to date.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year.

Each quarter, the Board of Trustees reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Trustees 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’s distribution policy is subject to modification by the Board of Trustees 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 2025 would include approximately 24% from net investment income, 38% from net capital gains and 38% 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:

Bethany Uhlein
(914) 921-5546

About The Gabelli Global Small and Mid Cap Value Trust
The Gabelli Global Small and Mid Cap Value Trust is a diversified, closed-end management investment company with $169 million in total net assets whose primary investment objective is to achieve long-term capital growth of capital. Under normal market conditions, the Fund will invest at least 80% of its total assets in equity securities (such as common stock and preferred stock) of companies with small or medium sized market capitalizations. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GGZ
CUSIP – 36249W104

Investor Relations Contact:
Bethany Uhlein
(914) 921-5546
buhlein@gabelli.com

FAQ

What distribution did Gabelli Global Small and Mid Cap Value Trust (GGZ) announce for 2025?

GGZ announced an annualized distribution of $0.84 per share, paid as $0.21 quarterly beginning Dec 19, 2025.

When is the GGZ record date and payment date for the increased quarterly distribution?

The record date is December 12, 2025 and the payment date is December 19, 2025.

How much of GGZ’s 2025 distributions are estimated to be return of capital?

Based on current accounting records, about 38% of each 2025 distribution is estimated as return of capital (book basis).

How does GGZ determine future quarterly distributions?

The Board reviews income, realized capital gains, and available capital each quarter and sets distributions accordingly.

Will GGZ pay an additional distribution in December 2025?

The Fund may pay an adjusting December distribution to include any additional income or net realized capital gains above quarterly amounts to meet RIC tax rules.

What tax reporting will GGZ shareholders receive for 2025 distributions?

Individual shareholders with taxable accounts will receive Form 1099-DIV in early 2026 detailing distribution components and tax treatment.

How did GGZ perform year-to-date before the distribution increase?

The Fund reported a 25% market total return year-to-date prior to the distribution increase.