Virtus Diversified Income & Convertible Fund Announces Distributions and Discloses Sources of Distributions - Section 19(a) Notice
Virtus Diversified Income & Convertible Fund (NYSE: ACV) has announced monthly distributions of $0.18 per share for December 2024 through March 2025. The Fund's distribution analysis reveals that 100% of the current monthly distribution comes from Net Realized Short-Term Capital Gains, while the fiscal year-to-date distributions comprise 10% from Short-Term Capital Gains and 90% from Return of Capital. The Fund's performance metrics show an average annual total return on NAV of 11.95% for the 5-year period, with a current annualized distribution rate of 9.85%. The fiscal YTD cumulative total return on NAV stands at 13.36%, with a cumulative distribution rate of 7.39%.
Il Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha annunciato distribuzioni mensili di $0.18 per azione per il periodo da dicembre 2024 a marzo 2025. L'analisi delle distribuzioni del Fondo rivela che il 100% della distribuzione mensile attuale proviene da guadagni in conto capitale a breve termine netti, mentre le distribuzioni dal inizio dell'anno fiscale comprendono il 10% da guadagni a breve termine e il 90% da restituzione di capitale. Le metriche di rendimento del Fondo mostrano un rendimento totale medio annuale sul NAV del 11.95% per il periodo di 5 anni, con un tasso di distribuzione annualizzato attuale del 9.85%. Il rendimento totale cumulativo YTD sul NAV si attesta al 13.36%, con un tasso di distribuzione cumulativo del 7.39%.
El Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha anunciado distribuciones mensuales de $0.18 por acción desde diciembre de 2024 hasta marzo de 2025. El análisis de las distribuciones del fondo revela que el 100% de la distribución mensual actual proviene de ganancias de capital a corto plazo netas, mientras que las distribuciones acumuladas hasta la fecha del año fiscal comprenden el 10% de ganancias de capital a corto plazo y el 90% de devolución de capital. Las métricas de rendimiento del fondo muestran un rendimiento anual total promedio sobre el NAV del 11.95% para el período de 5 años, con una tasa de distribución anualizada actual del 9.85%. El rendimiento total acumulado hasta la fecha sobre el NAV se sitúa en 13.36%, con una tasa de distribución acumulada del 7.39%.
버추스 다이버시파이드 인컴 & 전환형 펀드(NYSE: ACV)는 2024년 12월부터 2025년 3월까지 주당 $0.18의 월간 분배를 발표했습니다. 펀드의 분배 분석에 따르면 현재 월간 분배의 100%가 순 실현 단기 자본 이득에서 나옵니다, 반면 올해 회계연도까지의 분배는 10%가 단기 자본 이득에서, 90%가 자본 반환에서 나옵니다. 펀드의 성과 지표는 5년 기간 동안 NAV에서 평균 연간 총 수익률이 11.95%임을 보여주며, 현재 연간화된 분배율은 9.85%입니다. 회계연도까지 NAV의 누적 총 수익률은 13.36%에 이르며, 누적 분배율은 7.39%입니다.
Le Virtus Diversified Income & Convertible Fund (NYSE: ACV) a annoncé des distributions mensuelles de 0,18 $ par action de décembre 2024 à mars 2025. L'analyse des distributions du Fonds révèle que 100 % de la distribution mensuelle actuelle provient de gains en capital nets réalisés à court terme, tandis que les distributions depuis le début de l'année fiscale se composent de 10 % de gains en capital à court terme et de 90 % de restitution de capital. Les indicateurs de performance du Fonds montrent un rendement total annuel moyen sur la valeur nette d'inventaire de 11,95 % pour la période de 5 ans, avec un taux de distribution annualisé actuel de 9,85%. Le rendement total cumulé depuis le début de l'année fiscale sur la valeur nette d'inventaire est de 13,36 %, avec un taux de distribution cumulé de 7,39 %.
Der Virtus Diversified Income & Convertible Fund (NYSE: ACV) hat monatliche Ausschüttungen von $0,18 pro Aktie für den Zeitraum von Dezember 2024 bis März 2025 angekündigt. Die Analyse der Ausschüttungen des Fonds zeigt, dass 100% der aktuellen monatlichen Ausschüttung aus realisierten kurzfristigen Kapitalgewinnen stammen, während die Ausschüttungen seit Beginn des Geschäftsjahres zu 10% aus kurzfristigen Kapitalgewinnen und zu 90% aus Kapitalrückzahlungen bestehen. Die Leistungskennzahlen des Fonds zeigen eine durchschnittliche jährliche Gesamtrendite auf den NAV von 11,95% über einen Zeitraum von 5 Jahren, mit einer aktuelle annualisierten Ausschüttungsquote von 9,85%. Die kumulierte Gesamtrendite seit Beginn des Geschäftsjahres auf den NAV liegt bei 13,36%, mit einer kumulierten Ausschüttungsquote von 7,39%.
- 5-year average annual total return on NAV of 11.95%
- Fiscal YTD cumulative total return on NAV of 13.36%
- Consistent monthly distribution of $0.18 per share maintained
- 90% of fiscal YTD distributions constitute return of capital, indicating distributions exceed earned income
- Fund is distributing more than its income and capital gains, potentially eroding investor capital
Insights
The fund's distribution announcement reveals significant insights into its capital management strategy. The
The fund's
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
|
December 12, 2024 |
December 30, 2024 |
|
January 13, 2025 |
January 30, 2025 |
|
February 13, 2025 |
February 27, 2025 |
|
March 13, 2025 |
March 28, 2025 |
The Fund previously announced the following monthly distribution on August 29, 2024:
Amount of Distribution |
Ex-Date |
Record Date |
Payable Date |
|
November 12, 2024 |
November 12, 2024 |
November 27, 2024 |
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 estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income’.
The Fund provides this estimate of the sources of the distributions:
Distribution Estimates |
November 2024 (MTD) |
Fiscal Year-to-Date (YTD) (1) |
||||
(Sources) |
Per Share
|
Percentage
|
Per Share
|
Percentage
|
||
Net Investment Income |
$ |
- |
|
$ | - |
|
Net Realized Short-Term Capital Gains |
|
0.180 |
|
0.180 |
|
|
Net Realized Long-Term Capital Gains |
|
- |
|
- |
|
|
Return of Capital (or other Capital Source) |
|
- |
|
1.620 |
|
|
Total Distribution |
$ |
0.180 |
|
$ | 1.800 |
|
(1) Fiscal year started February 1, 2024. |
||||||
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 net asset value (NAV) and not the market price of the Fund’s shares. Performance figures are not meant to represent individual shareholder performance.
October 31, 2024 |
|
|
Average Annual Total Return on NAV for the 5-year period (2) |
|
|
Annualized Current Distribution Rate (3) |
|
|
Fiscal YTD Cumulative Total Return on NAV (4) |
|
|
Fiscal YTD Cumulative Distribution Rate (5) |
|
|
(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) |
Annualized Current 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.
About the Fund
Virtus 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 strives to dynamically allocate across convertibles, equities, and income-producing securities. 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.
Fund Risks
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 NAV. 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.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120698152/en/
For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Diversified Income & Convertible Fund
FAQ
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