Ellsworth Growth and Income Fund Ltd Reaffirms Its 5% Minimum Distribution Policy and Declares Distribution of $0.13 Per Share
12 Février 2020 - 2:17PM
Business Wire
The Board of Trustees of Ellsworth Growth and Income Fund Ltd.
(NYSE American:ECF) (the “Fund”) reaffirmed its 5% distribution
policy and declared a $0.13 per share cash distribution payable on
March 24, 2020 to common shareholders of record on March 17,
2020.
The Fund intends to pay a quarterly distribution of an amount
determined each quarter by the Board of Trustees. Under the Fund’s
current distribution policy, the Fund intends to pay a minimum
annual distribution of 5% of the Fund’s trailing 12-month average
month-end market price or an amount sufficient to satisfy the
minimum distribution requirements of the Internal Revenue Code for
regulated investment companies.
Each quarter, the Board of Trustees reviews the amount of any
potential distribution from 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 pays
an adjusting distribution in December which includes any additional
income and net realized capital gains in excess of the quarterly
distributions for that year to satisfy the minimum distribution
requirements of the Internal Revenue Code for regulated investment
companies. 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 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 (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, 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 in 2020 to common
shareholders with respect to the Fund’s fiscal year ending
September 30, 2020 would include approximately 8% from net
investment income and 92% from net capital gains 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 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.
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.
Ellsworth Growth and Income Fund Ltd. is a diversified,
closed-end management investment company with $195 million in total
net assets. ECF invests primarily in convertible securities and
common stock, with the objectives of providing income and the
potential for capital appreciation; which objectives the Fund
considers to be relatively equal, over the long-term, due to the
nature of the securities in which it invests. The Fund is managed
by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL).
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Bethany Uhlein (914) 921-5070
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