Virtus AllianzGI Diversified Income & Convertible Fund Discloses Sources of Distribution - Section 19(a) Notice
On June 16, 2022, Virtus AllianzGI Diversified Income & Convertible Fund (NYSE: ACV) announced a monthly distribution of $0.18 per share, set for payment on July 1, 2022, with an ex-date of June 10, 2022, and record date of June 13, 2022. The distribution will be drawn from net investment income, realized capital gains, or Fund assets, potentially leading to a return of capital for shareholders. As of May 31, 2022, the Fund reported a 5-year average annual total return of 13.43% but faced a -12.57% year-to-date cumulative total return.
- Monthly distribution of $0.18 per share announced.
- 5-year average annual total return of 13.43% indicates strong long-term performance.
- Current fiscal year-to-date annualized distribution rate at 9.33%.
- Year-to-date cumulative total return of -12.57% suggests recent underperformance.
- Net investment income reported at zero; reliance on other capital sources casts doubt on sustainability.
HARTFORD, Conn., June 16, 2022 /PRNewswire/ -- Virtus AllianzGI Diversified Income & Convertible Fund (NYSE: ACV) previously announced the following monthly distribution on March 7, 2022:
Amount of Distribution | Ex-Date | Record Date | Payable Date |
June 10, 2022 | June 13, 2022 | July 1, 2022 |
Under the terms of its Managed Distribution Plan, the Fund will seek to maintain a consistent distribution level that may be paid in part, or in full, from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Plan.
The Fund provided this estimate of the sources of the distributions:
Distribution Estimates | June 2022 (MTD) | Fiscal Year-to-Date (YTD) (1) | |||
(Sources) | Per Share Amount | Percentage | Per Share | Percentage of Current | |
Net Investment Income | $ - | 0.0 % | $ 0.005 | 0.6 % | |
Net Realized Short-Term Capital Gains | - | 0.0 % | 0.602 | 66.9 % | |
Net Realized Long-Term Capital Gains | 0.180 | 100.0 % | 0.293 | 32.5 % | |
Return of Capital (or other Capital Source) | - | 0.0 % | - | 0.0 % | |
Total Distribution | $ 0.180 | 100.0 % | $ 0.900 | 100.0 % | |
(1) Fiscal year started February 1, 2022 |
Information regarding the Fund's performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund's NAV and not the market price of the Fund's shares. Performance figures are not meant to represent individual shareholder performance.
May 31, 2022 | |||
Average Annual Total Return on NAV for the 5-year period (2) | 13.43 % | ||
Current Fiscal YTD Annualized Distribution Rate (3) | 9.33 % | ||
Fiscal YTD Cumulative Total Return on NAV (4) | -12.57 % | ||
Fiscal YTD Cumulative Distribution Rate (5) | 3.11 % | ||
(2) | Average Annual Total Return on NAV is the annual compound return for the five-year period. It reflects the change in the Fund's NAV and reinvestment of all distributions. | ||
(3) | Current Fiscal YTD Annualized Distribution Rate is the current distribution rate annualized as a percentage of the Fund's NAV at month end. | ||
(4) | Fiscal YTD Cumulative Total Return on NAV is the percentage change in the Fund's NAV from the first day of the fiscal year to this month end, including distributions paid and assuming reinvestment of those distributions. | ||
(5) | Fiscal YTD Cumulative Distribution Rate is the dollar value of distributions from the first day of the fiscal year to this month end as a percentage of the Fund's NAV at month end. | ||
The amounts and sources of distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.
Virtus AllianzGI Diversified Income & Convertible Fund is a diversified closed-end fund that seeks to provide total return through a combination of current income and capital appreciation, while seeking to provide downside protection against capital loss. The Fund normally invests at least
For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section of virtus.com.
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the fund's investment objective and risks, please see the Fund's annual report. A copy of the Fund's most recent annual report may be obtained free of charge by contacting "Shareholder Services" as set forth at the end of this press release.
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SOURCE Virtus AllianzGI Diversified Income & Convertible Fund
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