Gabelli Utility Trust Continues Monthly Distributions, Declaring Distributions of $0.05 Per Share

  Gabelli Utility Trust Continues Monthly Distributions, Declaring
  Distributions of $0.05 Per Share

Business Wire

RYE, N.Y. -- February 27, 2014

The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) (the “Fund”)
approved the continuation of its policy of paying fixed monthly cash
distributions. The Board of Trustees declared cash distributions of $0.05 per
share for each of April, May, and June 2014.

The distribution for April 2014 will be payable on April 23, 2014 to common
shareholders of record on April 15, 2014.

The distribution for May 2014 will be payable on May 22, 2014 to common
shareholders of record on May 15, 2014.

The distribution for June 2014 will be payable on June 23, 2014 to common
shareholders of record on June 16, 2014.

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 will pay an adjusting distribution in
December which includes any additional income and net realized capital gains
in excess of the monthly 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 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.
The Gabelli Utility Trust has paid a distribution to shareholders every month
since October 1999.

The Fund’s shares are currently trading at a premium to net asset value. The
Board of Trustees believes that the premium at which the Fund shares trade
relative to net asset value is not likely to be sustainable. Shareholders
participating in the Fund’s dividend reinvestment plan should note that at the
current market price, the reinvestment of distributions occurs at a premium to
net asset value.

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. 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 tax 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 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 is treated as a reduction in the
shareholder’s cost basis. Under federal tax regulations, some or all of the
return of capital distributed by the Fund may be taxable as ordinary income in
certain circumstances. This may occur when the Fund has a capital loss carry
forward, net capital gains are realized in a fiscal year, and distributions
are made in excess of investment company taxable income.

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 as of February 14, 2014, each of the distributions paid to
common shareholders in 2014 would be deemed 100% return of capital on a book
basis. 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 2014 will be made after year end and can vary
from the monthly estimates. All shareholders with taxable accounts will
receive written notification regarding the components and tax treatment for
all 2014 distributions in early 2015 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.

The Gabelli Utility Trust is a diversified, closed-end management investment
company with $303 million in total net assets whose primary investment
objective is to seek long-term growth of capital and income by investing
primarily in utility companies involved in the generation and distribution of
electricity, gas, and water. The Fund is managed by Gabelli Funds, LLC, a
subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded
NYSE listed company.

Contact:

The Gabelli Utility Trust
David Schachter, 914-921-5070
 
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