Corrected: Ellsworth Growth and Income Fund Ltd. NAV Performance up 33% and Market Return up 47%
19 Febrero 2020 - 8:26AM
Business Wire
Raises Annual Distribution 8% to $0.52 Per
Share From $0.48 Per Share
The Board of Trustees of Ellsworth Growth and Income Fund Ltd.
(NYSE American: ECF) (the “Fund”) declared a $0.13 per share cash
distribution payable on March 24, 2020 to common shareholders of
record on March 17, 2020. The $0.13 first quarter 2020 distribution
is an 8% increase from $0.12 in the same period last year and
brings the 2020 minimum annual distribution to $0.52 per share. The
increase follows on the strength of the Fund’s market return in
2019, which increased 47%.
The Fund intends to pay the greater of either an annual
distribution of 5% of funds trailing 12-month average month-end
market price or an amount that meets the minimum distribution
requirement 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. If necessary, the Fund
pays an adjusting distribution in December, which includes any
additional income and net realized capital gains in excess of the
quarterly distributions. 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. 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 is available by calling 800-GABELLI (800-422-3554) or
visiting www.gabelli.com.
About Ellsworth Growth and Income Fund
Ellsworth Growth and Income Fund Ltd. is a diversified,
closed-end management investment company with $196 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, 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).
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200219005580/en/
Investors: Bethany Uhlein at (914) 921-5070 or
buhlein@gabelli.com
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