Gabelli Convertible and Income Securities Fund Declares Fourth Quarter Distribution of $0.12 Per Share
November 11 2022 - 8:43AM
Business Wire
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 December 16, 2022 to common
stock shareholders of record on December 9, 2022. With this fourth
quarter distribution, the total distributions from the Fund for
2022 would equate to $0.48 per share.
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.
We note that 8% of the average net asset value of the Fund would
be $0.41 based on the ending net asset values per share as of
December 31, 2021, March 31, 2022, June 30, 2022, and September 30,
2022 of $6.32, $5.65, $4.46, and $4.19, respectively. In declaring
a distribution of $0.12 per share, the Board of Directors has
chosen to distribute $0.07 greater than that called for by the
distribution policy. The net asset value per share fluctuates
daily.
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, 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 for 2022 would include approximately 6% from net
capital gains and 94% would be deemed a return of capital on a book
basis. This information 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 2022 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 2022 distributions in early
2023 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:
Laurissa Martire (914) 921-5399
About Gabelli Convertible and Income Securities Fund
The Gabelli Convertible and Income Securities Fund Inc. is a
diversified, closed-end management investment company with $117
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. (OTCQX: GAMI).
NYSE: GCV CUSIP – 36240B109
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Laurissa Martire (914) 921-5399
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