RYE, N.Y.--(BUSINESS WIRE)--
The Board of Trustees of The Gabelli Healthcare & WellnessRx
Trust (NYSE:GRX) (the “Fund”) reaffirms its quarterly distribution
policy and declared a $0.12 per share cash distribution payable on June
23, 2014 to common shareholders of record on June 16, 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.
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
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 May 12, 2014, each of the
distributions paid to common shareholders in 2014 would include
approximately 95% from net capital gains and 5% 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 & WellnessRx 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 & WellnessRx Trust
Pinsent, CFA, 914-921-5070
Adam E. Tokar, 914-921-5070
Source: The Gabelli Healthcare & WellnessRx Trust