Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 31

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 31
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 declared or otherwise made payable.

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Securities that are convertible into or exchangeable for preferred or common stock are liabilities of the issuer but are generally subordinated to more senior elements of the issuer’s balance sheet. Although such securities also generally reflect an element of conversion value, their market value also varies with interest rates and perceived credit risk. Many convertible securities are not investment grade, that is, not rated “BBB” or better by S&P or “Baa” or better by Moody’s or considered by the Investment Adviser to be of similar quality. There is no minimum credit rating or independent investment limitation for these securities in which Dividend Trust may invest. Under normal market conditions, Preferred Trust will invest at least 80% of its assets in securities rated investment grade by recognized statistical rating agencies. Preferred stocks and convertible securities may have many of the same characteristics and risks as nonconvertible debt securities. See “—Non-Investment Grade Securities.”

The Investment Adviser believes that preferred stock and convertible securities of certain companies offer the opportunity for capital appreciation and periodic income. This is particularly true in the case of companies that have performed below expectations. If a company’s performance has been poor enough, its preferred stock and convertible securities may trade more like common stock than like fixed-income securities, which may result in above average appreciation if the company’s performance improves. Even if the credit quality of such a company is not in question, the market price of its convertible securities may reflect little or no element of conversion value if the price of its common stock has fallen substantially below the conversion price. This can result in capital appreciation if the price of the company’s common stock recovers.

Preferred Trust’s preferred securities investments may include traditional preferred securities; hybrid preferred securities that have investment and economic characteristics of both preferred stock and debt securities; floating-rate and fixed-to-floating rate preferred securities; and contingent capital securities (CoCos).

Foreign Securities. Dividend Trust may invest up to 35% of its total assets in securities of non-U.S. issuers, which are generally denominated in foreign currencies. Preferred Trust may invest up to 100% of its total assets in securities of non-U.S. issuers, including up to 25% of its total assets in securities issued by companies domiciled in emerging market countries. The Fund will not invest more than 10% of its total assets in securities issued by companies domiciled in any one emerging market country. The Fund may invest up to 50% of its total assets