Virtus Diversified Income & Convertible Fund Announces Distributions

Rhea-AI Summary

Virtus Diversified Income & Convertible Fund (ACV) announced monthly distributions of $0.18 for January, February, and March 2023. The Fund aims to maintain a consistent distribution level under its Managed Distribution Plan, which may involve returning capital to shareholders if net income and capital gains are insufficient. As of October 31, 2022, the average annual total return on NAV for the last five years was 10.58%, while cumulative total return for the fiscal year to date was -17.51%. The Fund primarily invests in convertibles and income-producing securities.

Positive

• Average annual total return on NAV for 5 years: 10.58%
• Current annual distribution rate: 10.31%

Negative

• Fiscal YTD cumulative total return on NAV: -17.51%

HARTFORD, Conn., Dec. 2, 2022 /PRNewswire/ -- Virtus Diversified Income & Convertible Fund (NYSE: ACV) today announced the following monthly distributions:

Amount of Distribution	Ex-Date	Record Date	Payable Date
$0.18	January 19, 2023	January 20, 2023	February 1, 2023
$0.18	February 10, 2023	February 13, 2023	March 1, 2023
$0.18	March 10, 2023	March 13, 2023	April 3, 2023

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	November 2022 (MTD)			Fiscal Year-to-Date (YTD)(1)
(Sources)	Per Share Amount	Percentage of Current Distribution		Per Share Amount	Percentage of Current Distribution
Net Investment Income	$             -	0.0 %		$      0.005	0.3 %
Net Realized Short-Term Capital Gains	-	0.0 %		0.602	33.5 %
Net Realized Long-Term Capital Gains	0.180	100.0 %		1.193	66.2 %
Return of Capital (or other Capital Source)	-	0.0 %		-	0.0 %
Total Distribution	$     0.180	100.0 %		$     1.800	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.

October 31, 2022
Average Annual Total Return on NAV for the 5-year period (2)		10.58 %
Annualized Current Distribution Rate (3)		10.31 %
Fiscal YTD Cumulative Total Return on NAV (4)		-17.51 %
Fiscal YTD Cumulative Distribution Rate (5)		7.73 %

(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 50% of total managed assets in convertibles and has the latitude to write covered call options on the stocks held in the equity portion. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and Voya Investment Management is its subadviser.

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 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 Diversified Income & Convertible Fund

FAQ

What is the distribution amount for ACV in January 2023?

The distribution amount for ACV in January 2023 is $0.18.

When is the ex-date for the ACV distribution in February 2023?

The ex-date for the ACV distribution in February 2023 is February 10, 2023.

What is the purpose of the Managed Distribution Plan for ACV?

The Managed Distribution Plan for ACV aims to maintain a consistent distribution level, which may involve returning capital to shareholders when income and gains are insufficient.

What was the fiscal YTD cumulative return for ACV as of October 31, 2022?

The fiscal YTD cumulative total return for ACV as of October 31, 2022, was -17.51%.