Virtus Dividend, Interest & Premium Strategy Fund Announces Distribution and Discloses Sources of Distribution – Section 19(a) Notice
The Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) has announced a quarterly distribution of $0.28 per share, with key dates including an ex-date and record date of June 13, 2024, and a payable date of June 27, 2024.
The distribution aims to maintain a steady payout level, comprising net investment income, realized capital gains, or a return of capital. The Fund estimates that most of the distribution comes from net investment income (87.5% QTD and 52.4% YTD), with smaller portions from realized short-term (0.4% QTD, 9.7% YTD) and long-term capital gains (4.5% QTD, 34.1% YTD), and return of capital (7.6% QTD, 3.8% YTD).
Important performance indicators include a 5-year average annual total return on NAV of 8.41%, an annualized current distribution rate of 7.79%, a fiscal YTD cumulative total return on NAV of 3.09%, and a fiscal YTD cumulative distribution rate of 3.89%.
- Quarterly distribution of $0.28 per share aims to provide consistent returns.
- 87.5% of the current quarter's distribution comes from net investment income.
- 5-year average annual total return on NAV is 8.41%.
- Annualized current distribution rate stands at 7.79%.
- 7.6% of the current distribution is a return of capital, which may indicate income shortfalls.
- Only 0.4% of the current quarter's distribution comes from realized short-term capital gains.
- Investors should not interpret the distribution amount as a sign of investment performance.
- Fiscal YTD cumulative total return on NAV is only 3.09%.
Ticker |
Amount of Distribution |
Ex-Date |
Record Date |
Payable Date |
NFJ |
|
June 13, 2024 |
June 13, 2024 |
June 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 its distributions:
Distribution Estimates |
June 2024 (QTD) |
Fiscal Year-to-Date
|
||||
(Sources) |
Per Share
|
Percentage
|
Per Share
|
Percentage
|
||
Net Investment Income |
$ |
0.245 |
|
$ |
0.293 |
|
Net Realized Short-Term Capital Gains |
$ |
0.001 |
|
$ |
0.055 |
|
Net Realized Long-Term Capital Gains |
$ |
0.013 |
|
$ |
0.191 |
|
Return of Capital (or other Capital Source) |
$ |
0.021 |
|
$ |
0.021 |
|
Total Distribution |
$ |
0.280 |
|
$ |
0.560 |
|
(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.
May 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 expected to be paid from the first day of the fiscal year through the next calendar quarter 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 Dividend, Interest & Premium Strategy Fund is a diversified closed-end fund that seeks current income and gains, with long-term capital appreciation as a secondary objective. The Fund will generally invest approximately
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.
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/20240603278963/en/
For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Dividend, Interest and Premium Strategy Fund
FAQ
What is the recent distribution amount for NFJ?
When is the ex-date for NFJ's latest distribution?
What percentage of NFJ's distribution is a return of capital?
What is the 5-year average annual total return on NAV for NFJ?
When is the payable date for NFJ's latest distribution?
