Gabelli Healthcare & WellnessRx Trust Reaffirms Its Quarterly Distribution
Policy and Raises Its Distribution 20% for First Quarter 2014 to $0.12 Per
Share from $0.10 Per Share
RYE, N.Y. -- February 27, 2014
The Board of Trustees of The Gabelli Healthcare & Wellness^Rx Trust (NYSE:GRX)
(the “Fund”) reaffirms its quarterly distribution policy and has raised the
cash distribution to $0.12 per share, from $0.10 per share in the comparable
prior year period, payable on March 24, 2014 to common shareholders of record
on March 17, 2014.
The Fund intends to pay a quarterly distribution of an amount determined each
quarter by the Board of Trustees. The Board of Trustees may change the amount
of the quarterly distribution at any time. In addition to the quarterly
distributions, and in accordance with the minimum distribution requirements of
the Internal Revenue Code for regulated investment companies, the Fund may pay
an adjusting distribution in December which includes any additional income and
net realized capital gains in excess of the quarterly distributions for that
year. Including additional required distributions, the Fund paid shareholders
$1.11 per share and $0.91 per share in 2012 and 2013, respectively.
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’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, 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. Because
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 as of February 14, 2014, the current distribution paid to
common shareholders in 2014 would include approximately 50% from net capital
gains and 50% would be a 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
quarterly 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 Healthcare & Wellness^Rx Trust is a diversified, closed-end
management investment company with $203 million in total net assets whose
primary investment objective is long-term growth of capital. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL), which is a publicly traded NYSE listed company.
The Gabelli Healthcare & Wellness^Rx Trust
Wayne C. Pinsent, CFA
Adam E. Tokar
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