GAMCO Natural Resources, Gold & Income Trust : Continues Monthly Distributions, Declaring Distributions of $0.07 Per Share
May 19, 2016 at 09:39 am EDT
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The Board of Trustees of the GAMCO Natural Resources, Gold & Income
Trust (NYSE:GNT) (the “Fund”) declared monthly cash distributions of
$0.07 per share for each of July, August, and September 2016.
The distribution for July 2016 will be payable on July 22, 2016 to
common shareholders of record on July 15, 2016.
The distribution for August 2016 will be payable on August 24, 2016 to
common shareholders of record on August 17, 2016.
The distribution for September 2016 will be payable on September 23,
2016 to common shareholders of record on September 16, 2016.
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 monthly 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
covered call 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 monthly
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
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.
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 as of May 16, 2016, each of the
distributions paid to common shareholders in 2016 would include
approximately 4% from net investment income and 96% would be deemed a
return of capital on a book basis and 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 2016 will
be made after year end and can vary from the monthly 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 2016 distributions in
early 2017 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 GAMCO Natural Resources, Gold & Income Trust is a non-diversified,
closed-end management investment company with $155 million in total net
assets whose primary investment objective is to provide a high level of
current income from interest, dividends and option premiums. The Fund
invests primarily in equity securities of natural resources and gold
companies and intends to earn short-term gains from a strategy of
writing (selling) primarily covered call options on equity securities in
its portfolio. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL).
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Gamco Natural Resources, Gold & Income Trust is a non-diversified, closed-end management investment company. The Fundâs investment objective is to provide a high level of current income. The Fundâs secondary investment objective is to seek capital appreciation consistent with the Fundâs strategy and primary objective. Under normal market conditions, the Fund will attempt to achieve its objectives by investing 80% of its assets in equity securities of companies engaged in natural resource and gold industries, and by writing covered call options on the equity securities. The Fundâs strategy is to invest at least 80% of its assets in securities of companies engaged in the natural resources and gold industries. It is focused on investing at least 25% of its assets in the securities of companies principally engaged in the exploration, production or distribution of natural resources, such as base metals, paper, food, agriculture, others. Gabelli Funds, LLC serves as the investment advisor.