Gabelli Healthcare & WellnessRx Trust Reaffirms Its Quarterly Distribution Policy & Declares Second Quarter Distribution of $...
May 19 2016 - 9:27AM
Business Wire
The Board of Trustees of The Gabelli Healthcare & WellnessRx
Trust (NYSE:GRX) (the “Fund”) reaffirmed its quarterly distribution
policy and declared a $0.13 per share cash distribution payable on
June 23, 2016 to common shareholders of record on June 16,
2016.
The Fund intends to pay a quarterly distribution of an amount
determined each quarter by the Board of Trustees. The Board of
Trustees may change the amount of the quarterly distribution at any
time. 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 and 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 financial market environment. The Fund’s
distribution policy is subject to modification or termination 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, which is currently 20% in taxable accounts for
individuals (or zero 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 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. Because 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, ordinary
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 as of May 16,
2016, each of the distributions paid to common shareholders in 2016
would include approximately 59% from net capital gains and 41%
would be deemed a return of capital on a book basis and 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 2016 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 shareholders with taxable accounts will receive written
notification regarding the components and tax treatment for all
2016 distributions in early 2017 via Form 1099-DIV.
Investors should carefully consider the investment objectives,
risks, charges, and expenses of the Fund before investing. More
information regarding the Fund’s distribution policy and other
information about the Fund is available by calling 800-GABELLI
(800-422-3554) or visiting www.gabelli.com.
The Gabelli Healthcare & WellnessRx Trust is a diversified,
closed-end management investment company with $298 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. (NYSE:GBL).
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version on businesswire.com: http://www.businesswire.com/news/home/20160519005869/en/
Gabelli Healthcare & WellnessRx TrustWayne C. Pinsent, CFA,
914-921-5070
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