Corrected: Gabelli Convertible and Income Securities Fund NAV Performance up 28% and Market Return Up 46%
February 19 2020 - 9:22AM
Business Wire
8% Distribution Policy Reaffirmed
The Board of Directors of The Gabelli Convertible and Income
Securities Fund Inc. (NYSE:GCV) (the “Fund”) declared a $0.12 per
share cash distribution payable on March 24, 2020 to common stock
shareholders of record on March 17, 2020. The distribution follows
on the strength of the Fund’s market return in 2019, which
increased 46%.
The Fund intends to pay a minimum annual distribution of 8% of
the average net asset value of the Fund within a calendar year or
an amount sufficient to satisfy the minimum distribution
requirements of the Internal Revenue Code for regulated investment
companies. Each quarter, the Board of Directors reviews the amount
of any potential distribution from the income, realized capital
gain, or capital available.
The Board of Directors 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 Directors 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 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, 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 currently
available, the current distribution paid to common shareholders in
2020 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 2020 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 2020 distributions in early 2021 via Form 1099-DIV.
Returns represent past performance and do not guarantee future
results. Current performance may be lower or higher than the
performance data quoted. Investment return and principal value will
fluctuate so, upon redemption, shares may be worth more or less
than their original cost.
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.
About Gabelli Convertible and Income Securities Fund
The Gabelli Convertible and Income Securities Fund Inc. is a
diversified, closed-end management investment company with $147
million in total net assets whose primary investment objective is
to seek a high level of total return on its assets through a
combination of current income and capital appreciation. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors,
Inc. (NYSE:GBL).
About GAMCO Investors
GAMCO Investors, Inc., through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.), mutual funds and
closed-end funds (Gabelli Funds, LLC). As of December 31, 2019,
GAMCO Investors had $36.5 billion in assets under management.
NYSE: GCV CUSIP – 36240B109
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version on businesswire.com: https://www.businesswire.com/news/home/20200219005571/en/
Investors Laurissa Martire at (914) 921-5070 or
lmartire@gabelli.com
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