Gabelli Dividend & Income Trust Announces Spin-Off of New Closed-End Fund, Gabelli Preferred Securities Trust

The Gabelli Dividend & Income Trust will spin off Gabelli Preferred Securities Trust to focus on preferred securities for income and capital appreciation.

Quiver AI Summary

The Board of Trustees of The Gabelli Dividend & Income Trust has announced the spin-off of a newly created closed-end fund named Gabelli Preferred Securities Trust (GPS), which will focus on investing in preferred securities for income and capital appreciation. The Fund plans to contribute around $150 million worth of cash and/or securities to GPS and subsequently distribute GPS shares pro rata to its common shareholders. GPS aims to list its shares on the New York Stock Exchange and will possibly employ leverage, subject to Board determination. The existing distribution policy for GDV is expected to remain unchanged, with the new fund's distribution rate to be set by the GPS Board. Shareholder and regulatory approvals are needed for the transaction, which will be voted on at a special meeting. Further details about the contributions, shares, and relevant dates will be shared later.

Potential Positives

• The Board of Trustees has approved the spin-off of a new closed-end fund, Gabelli Preferred Securities Trust (GPS), allowing for diversification in investment strategy.
• The new fund will target preferred securities, which may attract a different investor base and meet changing investor preferences.
• The spin-off involves a substantial contribution of approximately $150 million, indicating confidence in the new fund's potential.
• The expectation that the distribution policy of GDV will remain unchanged suggests stability for existing shareholders post-spin-off.

Potential Negatives

• The announcement of a spin-off could be perceived negatively by investors who may worry about the dilution of the existing fund's focus and potential value erosion due to the allocation of funds to a new entity.
• The statement includes that there are "no assurances" that shareholder and regulatory approvals will be received, which introduces uncertainty regarding the completion of the transaction.
• The fund's contributions to the spin-off will be determined by the Board of Trustees, which may raise concerns about management's discretion and oversight in distributing assets.

FAQ

What is the Gabelli Dividend & Income Trust's recent announcement?

The Trust has approved the spin-off of a new closed-end fund called Gabelli Preferred Securities Trust.

What is the objective of the Gabelli Preferred Securities Trust?

Its investment objective is to seek income and capital appreciation by investing in preferred securities.

How much will the Gabelli Dividend & Income Trust contribute to the new fund?

The Trust will contribute approximately $150 million of cash and/or securities to the Gabelli Preferred Securities Trust.

Will shareholders receive shares of the new fund?

Yes, common shareholders of GDV will receive shares of GPS pro rata.

When will the spin-off vote take place?

The transaction will be voted on at a shareholder meeting following necessary regulatory approvals.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$GDV Insider Trading Activity

$GDV insiders have traded $GDV stock on the open market 6 times in the past 6 months. Of those trades, 6 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $GDV stock by insiders over the last 6 months:

• MARIO J GABELLI has made 5 purchases buying 12,500 shares for an estimated $302,249 and 0 sales.
• SUSAN WATSON LAUGHLIN purchased 300 shares for an estimated $7,488

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$GDV Hedge Fund Activity

We have seen 74 institutional investors add shares of $GDV stock to their portfolio, and 71 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• SABA CAPITAL MANAGEMENT, L.P. added 801,838 shares (+15.1%) to their portfolio in Q4 2024, for an estimated $19,364,387
• GABELLI & CO INVESTMENT ADVISERS, INC. added 626,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $15,117,900
• SIT INVESTMENT ASSOCIATES INC added 404,940 shares (+91.5%) to their portfolio in Q4 2024, for an estimated $9,779,301
• ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 222,307 shares (-34.9%) from their portfolio in Q4 2024, for an estimated $5,368,714
• JONES ROAD CAPITAL MANAGEMENT, L.P. added 200,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $4,830,000
• WOLVERINE ASSET MANAGEMENT LLC removed 158,151 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $3,819,346
• BULLDOG INVESTORS, LLP added 151,344 shares (+100.9%) to their portfolio in Q4 2024, for an estimated $3,654,957

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

RYE, N.Y., Feb. 24, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE: GDV) (the “Fund” or “GDV”) has approved the spin off a newly created closed-end fund (Gabelli Preferred Securities Trust or “GPS”) whose investment objective will be to seek income and capital appreciation by investing in preferred securities. As investor preferences change and vary across portions of the capital structure, the Fund, which has focused on common equity, is considering additional allocation to preferred securities.

The Fund would contribute approximately $150 million of its cash and/or securities to GPS and would then distribute all of the shares of GPS pro rata to the common shareholders of GDV. GPS will seek to have its shares listed on the New York Stock Exchange. Following the spin off, GPS is expected to deploy leverage, the amount of which is to be determined.

It is expected that GDV’s distribution policy will remain unchanged. The Board of Trustees of GPS will determine the distribution rate of the new closed-end fund at the time of the spin-off.

The transaction is expected to be voted upon at a meeting of shareholders of the Fund following requisite regulatory approvals. There are no assurances that such shareholder and regulatory approvals will be received.

The Board of Trustees of the Fund will determine the amount of cash and/or securities to be contributed, the number of shares to be distributed, and the record and distribution dates, which will be announced at a later time.

For more information regarding this press release, call:

Investor Relations Team




Carter Austin, Laurissa Martire, David Schachter, and Bethany Uhlein




(914) 921-5070

This press release is not intended to, and does not constitute an offer to purchase or sell any securities; nor is this press release intended to solicit a proxy from any shareholder. The solicitation of proxies in connection with the special meeting of shareholders to effect the transaction will only be made by a final, effective Registration Statement on Form N-14, which includes a definitive Proxy Statement/Prospectus, after the Registration Statement is declared effective by the Securities and Exchange Commission (the “SEC”). This Registration Statement has yet to be filed with the SEC. After the Registration Statement is filed with the SEC, it may be amended or withdrawn and the Proxy Statement/Prospectus will not be distributed to shareholders unless and until the Registration Statement is declared effective by the SEC.

The Fund and its trustees, officers and employees and the Fund’s investment adviser and its officers and employees and other persons may be deemed to be participants in the solicitation of proxies in connection with the special meeting of shareholders. Investors and shareholders may obtain more detailed information regarding the direct and indirect interests of the Fund’s trustees, officers and employees and other persons by reading the Proxy Statement/Prospectus relating to the special meeting of shareholders when it is filed with the SEC.

Investors and security holders of the Fund are urged to read the Proxy Statement/Prospectus and other documents filed with the SEC carefully and in their entirety when they become available because these documents will contain important information about the transaction. Investors should consider the investment objective, risks, charges and expenses of the Fund carefully. The Proxy Statement/Prospectus will contain information with respect to the investment objective, risks, charges and expenses of the Fund and other important information about the Fund.

Security holders may obtain free copies of the Registration Statement and Proxy Statement/Prospectus and other documents (when they become available) filed with the SEC at the SEC’s web site at www.sec.gov. In addition, free copies of the Proxy Statement/Prospectus and other documents filed with the SEC may also be obtained after the Registration Statement becomes effective by calling the Fund at (914) 921-5070.

The Fund also files annual and semi-annual reports and other information with the SEC. You may request a free copy of our annual and semiannual reports or request other information about us and make shareholder inquiries by calling (914) 921-5070. You may also obtain copies of the Fund’s annual and semi-annual reports (and other information regarding the Fund) from the SEC’s website (

http://www.sec.gov

).

About The Gabelli Dividend & Income Trust

The Gabelli Dividend & Income Trust is a diversified, closed-end management investment company with $3.0 billion in total net assets whose primary investment objective is to provide a high level of total return with an emphasis on dividends and income. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GDV


CUSIP – 36242H104

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.