Ellsworth Growth and Income Fund Ltd. Declares Distribution of $1.11 Per Share
12 Noviembre 2021 - 7:27AM
Business Wire
The Board of Trustees of Ellsworth Growth and Income Fund Ltd.
(NYSE American: ECF) (the “Fund”) declared a $1.11 per share cash
distribution payable on December 28, 2021 to common shareholders of
record on November 24, 2021. With this fourth quarter distribution,
the total distributions from the Fund for the calendar year 2021
would equate to $1.50 per share, a 13% increase from $1.33 last
year.
The Fund’s fiscal year ends September 30, 2021. Please remember
that past performance may not be indicative of future results.
Shareholders who are not members of the Fund’s Automatic
Dividend Investment Plan will be given the option to receive the
distribution either in cash or in beneficial shares of the Fund.
The distribution is taxable to shareholders whether or not they
choose to receive cash.
The expiration date of the option is December 15, 2021.
Shareholders who do not make an election will receive the
distribution in beneficial shares.
The number of shares that holders will be entitled to receive
under the share option will be determined on December 16, 2021,
either on the basis of the closing market price of the Fund’s
beneficial shares or its net asset value, whichever is lower on
that date.
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 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 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 with income that 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 share-holder’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 in 2021 to
common shareholders with respect to the Fund’s fiscal year ending
September 30, 2021 would include approximately 33% from net
investment income and 67% from net capital gains 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. The final
determination of the sources of all distributions in 2021 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 2021 distributions in early 2022 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 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 $236 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).
NYSE American: ECF CUSIP – 289074106
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Bethany Uhlein (914) 921-5546
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