RYE, N.Y. RYE, NY -- (Business Wire)
The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE
Amex:GLU) (the “Fund”) approved the continuation of monthly cash
distributions of $0.10 per share for each of July, August and September
The distribution for July 2011 will be payable on July 22, 2011 to
common shareholders of record on July 15, 2011.
The distribution for August 2011 will be payable on August 24, 2011 to
common shareholders of record on August 17, 2011.
The distribution for September 2011 will be payable on September 23,
2011 to common shareholders of record on September 16, 2011.
Under the Fund’s initial distribution policy, the Fund pays a minimum
annual distribution of 6% of the initial public offering price of $20.00
per share. Pursuant to this policy, the Fund intends to pay a
distribution of $0.10 per share each month and, if necessary, an
adjusting distribution in December which includes any additional income
and net realized capital gains in excess of the monthly distributions
for that year to satisfy the minimum distribution requirements of the
Internal Revenue Code.
Each quarter, the Board of Trustees reviews the amount of any potential
distribution and the income, 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
financial market environment. The Fund’s distribution policy is subject
to modification by the Board of Trustees at any time. The distribution
rate should not be considered the dividend yield or total return on an
investment in the Fund.
A portion of the distribution may be treated as long-term capital gain
and qualified dividend income for individuals, each subject to the
maximum federal income tax rate, which is currently 15% in taxable
accounts for individuals. If the Fund does not generate sufficient
earnings from dividends and interest received and net realized capital
gains 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 investment income and net realized capital gains 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 is treated as a reduction in the shareholder’s cost basis.
Under federal tax regulations, some or all of the return of capital
distributed by the Fund may be taxable as ordinary income in certain
circumstances. This may occur when the Fund has a capital loss carry
forward, net capital gains are realized in a fiscal year and
distributions are made in excess of investment company taxable income.
Long-term capital gains, qualified dividend income, ordinary income, and
paid-in 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 as of May 16, 2011, each of the
distributions paid in 2011 would include approximately 44% from net
investment income, 44% from net capital gains, and 12% from paid-in
capital. 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 2011 will
be made after year end and can vary from the monthly estimates. All
shareholders with taxable accounts will receive written notification
regarding the components and tax treatment for all 2011 distributions in
early 2012 via Form 1099-DIV.
The Gabelli Global Utility & Income Trust is a non-diversified,
closed-end management investment company with $66 million in total net
assets whose primary investment objective is to seek a consistent level
of after-tax total return for its investors with an emphasis on
tax-advantaged dividend income under current tax law. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL), which is a publicly traded NYSE listed company.
CUSIP – 36242L105
The Gabelli Global Utility & Income Trust
Source: The Gabelli Global Utility & Income Trust
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