RYE, NY – (BUSINESS WIRE) – The Board of Trustees of the Gabelli Global Utility & Income Trust (NYSE American: GLU) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $ 0.10 per share for April, May and June 2021.
|
Distribution month |
Recording date |
date of payment |
|
April |
April 16, 2021 |
April 23, 2021 |
|
Can |
May 14, 2021 |
May 21, 2021 |
|
June |
June 16, 2021 |
June 23, 2021 |
As part of the Fund’s initial distribution policy, the Fund has paid a minimum annual distribution of 6% of the initial offering price of $ 20.00 per Share (a distribution of $ 0.10 per Share per month).
Every quarter, the Board of Trustees reviews the amount of a possible distribution from the earnings, the realized capital gain or the available capital. The Board of Trustees will continue to monitor the Fund’s distribution level, taking into account the Fund’s Net Asset Value and the financial market environment. If required, the Fund will pay an adjustment distribution in December that will include any additional income and net realized capital gains in excess of the monthly distributions for that year to meet the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The Fund’s distribution policy may be changed at any time by the Board of Trustees and there can be no guarantee that the policy will continue. The Distribution Rate should not be viewed as the dividend yield or the total return on an investment in the Fund.
All or part of the distribution may be treated as long-term capital gain or qualifying dividend income (or a combination of both) for individuals, each subject to the maximum federal tax rate on long-term capital gains, which is currently 20% Individual Taxable Accounts (or less, depending on the tax class of a natural person). In addition, certain United States shareholders who are individuals, estates, or trusts and whose income exceeds certain thresholds are required to pay a Medicare surcharge of 3.8% on their “net investment income,” which includes dividends from the fund and capital gains from sales or other disposal of fund units.
If the Fund does not generate sufficient income (dividends and interest income, less expenses and net realized capital gain) to equal or exceed the total distributions paid by the Fund in a given year, the amount distributed over and above the Fund’s income would be considered a return on capital. Since this is viewed as paying back part of a shareholder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost base.
Long-term capital gains, qualified dividend income, taxable investment company income and, where applicable, return on investment are prorated across all distributions to common stockholders for the year. Based on the Fund’s currently available accounting records, the current distribution to common shareholders in 2021 would be approximately 1% of net investment income, 1% of net capital gains and 98% book-based return on capital. This is not information for tax reporting purposes. The estimated components of each distribution will be updated and made available to shareholders of record in a notice accompanying the distribution. They are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2021 will be made after the end of the year and may differ from the monthly estimates. The unitholders should not draw any conclusions about the investment performance of the fund from the amount of the current distribution. At the beginning of 2022, all individual shareholders with taxable accounts will receive a written notification using Form 1099-DIV about the components and tax treatment of all distributions in 2021.
Investors should carefully consider the investment objectives, risks, costs and expenses of the Fund before investing. For more information on the fund’s distribution policy and further information on the fund, call 800-GABELLI (800-422-3554) or visit www.gabelli.com.
About the Gabelli Global Utility & Income Trust
Gabelli Global Utility & Income Trust is a nondiversified, closed-end management investment company with total net assets of $ 171 million whose primary investment objective is to provide a consistent total after-tax return for its investors with an emphasis on tax-preferential dividend income as applicable Tax law. The fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE: GBL).
NYSE American – GLU
CUSIP – 36242L105