Market Overview

The GDL Fund Declares Third Quarter 2018 Distribution of $0.10 Per Share

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The Board of Trustees of The GDL Fund (NYSE:GDL) (the "Fund") declared a
$0.10 per share cash distribution payable on September 21, 2018 to
common shareholders of record on September 14, 2018.

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 distribution rate should not
be considered the dividend yield or total return on an investment in the
Fund.

The Fund makes annual distributions of its realized net long-term
capital gains and quarterly cash distributions of all or a portion of
its investment company taxable income (which includes ordinary income
and net realized short-term capital gains) to common shareholders. A
portion of the distribution may be a return of capital. Various factors
will affect the level of the Fund's income, such as its asset mix and
use of merger arbitrage strategies. To permit the Fund to maintain more
stable distributions, the Fund may distribute more than the entire
amount of income earned in a particular period. Because the Fund's
current quarterly distributions are subject to modification by the Board
of Trustees at any time and the Fund's income will fluctuate, there can
be no assurance that the Fund will pay distributions at a particular
rate or frequency.

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
would be treated as a reduction in the shareholder's cost basis.

Short-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, each of the
distributions paid to common shareholders in 2018 would include
approximately 21% from net investment income, 25% from net capital gains
and 54% would be deemed a return of capital 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 2018 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 2018 distributions in
early 2019 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 GDL Fund is a diversified, closed-end management investment company
with $327 million in total net assets whose investment objective is to
achieve absolute returns in various market conditions without excessive
risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL).

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