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Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution - Section 19(a) Notice

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On July 15, 2022, the Virtus Diversified Income & Convertible Fund (NYSE: ACV) announced a monthly distribution of $0.18 per share, with the ex-date being July 8, 2022, record date on July 11, 2022, and payable date set for August 1, 2022. The Fund aims for consistent distribution levels under its Managed Distribution Plan, potentially using net investment income and realized capital gains. Notably, if the income and gains fall short, the difference will be taken from the Fund's assets, affecting shareholder capital. The current fiscal year-to-date cumulative total return on net asset value is reported at -20.92%.

Positive
  • Monthly distribution of $0.18 per share indicates consistent payout strategy.
  • Average annual total return on NAV for the 5-year period is 10.94%.
  • Current fiscal YTD annualized distribution rate stands at 10.40%.
Negative
  • Fiscal YTD cumulative total return on NAV is -20.92%, indicating a significant loss.
  • Net investment income reported at $0.005, contributing only 0.5% of the distribution.

HARTFORD, Conn., July 15, 2022 /PRNewswire/ -- Virtus Diversified Income & Convertible Fund (formerly known as Virtus AllianzGI Diversified Income & Convertible Fund) (NYSE: ACV) previously announced the following monthly distribution on June 7, 2022:  

Amount of Distribution

Ex-Date

Record Date

Payable Date

$0.18

July 8, 2022

July 11, 2022

August 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

July 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

0.5 %

Net Realized Short-Term Capital Gains

-

0.0 %

0.602

55.8 %

Net Realized Long-Term Capital Gains

0.180

100.0 %

0.473

43.7 %

Return of Capital (or other Capital Source)

-

0.0 %

-

0.0 %

Total Distribution

$     0.180

100.0 %

$     1.080

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.

June 30, 2022


Average Annual Total Return on NAV for the 5-year period (2)

10.94 %

Current Fiscal YTD Annualized Distribution Rate (3)

10.40 %

Fiscal YTD Cumulative Total Return on NAV (4)

-20.92 %

Fiscal YTD Cumulative Distribution Rate (5)

4.33 %

(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.

 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 normally invests at least 50% of total managed assets in convertibles. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and Allianz Global Investors 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.

(PRNewsfoto/Virtus Funds)

 

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SOURCE Virtus Diversified Income & Convertible Fund

FAQ

What is the monthly distribution amount for ACV in July 2022?

The monthly distribution amount for ACV in July 2022 is $0.18 per share.

When is the payable date for ACV's July 2022 distribution?

The payable date for ACV's July 2022 distribution is August 1, 2022.

What was the fiscal YTD cumulative total return for ACV as of June 30, 2022?

The fiscal YTD cumulative total return for ACV as of June 30, 2022, is -20.92%.

What does the Managed Distribution Plan involve for ACV?

The Managed Distribution Plan for ACV aims to maintain consistent distribution levels potentially funded by net investment income and realized capital gains.

Virtus Diversified Income & Convertible Fund

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