Virtus Equity & Convertible Income Fund Announces Distribution and Discloses Sources of Distribution – Section 19(a) Notice
Virtus Equity & Convertible Income Fund (NYSE: NIE) has announced a quarterly distribution of $0.50 per share, payable on September 26, 2024. The fund operates under a Managed Distribution Plan, aiming to maintain consistent distribution levels. For the current distribution, 55.1% comes from net realized short-term capital gains, and 44.9% from net realized long-term capital gains. The fund's 5-year average annual total return on NAV is 11.30%, with an annualized current distribution rate of 7.99%. The fiscal YTD cumulative total return on NAV is 9.32%, with a cumulative distribution rate of 6.00%.
Il Virtus Equity & Convertible Income Fund (NYSE: NIE) ha annunciato una distribuzione trimestrale di $0.50 per azione, che sarà pagata il 26 settembre 2024. Il fondo opera sotto un Piano di Distribuzione Gestito, con l'obiettivo di mantenere livelli di distribuzione costanti. Per la distribuzione attuale, il 55.1% proviene da guadagni in conto capitale netti realizzati a breve termine, e il 44.9% da guadagni in conto capitale netti realizzati a lungo termine. Il ritorno totale medio annuale a 5 anni sul NAV del fondo è del 11.30%, con un tasso di distribuzione attuale annualizzato del 7.99%. Il ritorno totale cumulativo YTD fiscale sul NAV è del 9.32%, con un tasso di distribuzione cumulativo del 6.00%.
El Virtus Equity & Convertible Income Fund (NYSE: NIE) ha anunciado una distribución trimestral de $0.50 por acción, que se pagará el 26 de septiembre de 2024. El fondo opera bajo un Plan de Distribución Administrada, con el objetivo de mantener niveles de distribución consistentes. Para la distribución actual, el 55.1% proviene de ganancias de capital netas realizadas a corto plazo, y el 44.9% de ganancias de capital netas realizadas a largo plazo. El retorno total anual promedio a 5 años sobre el NAV del fondo es del 11.30%, con una tasa de distribución actual anualizada del 7.99%. El retorno total acumulado YTD fiscal sobre el NAV es del 9.32%, con una tasa de distribución acumulada del 6.00%.
Virtus Equity & Convertible Income Fund (NYSE: NIE)는 2024년 9월 26일에 지급될 $0.50의 분기 배당금을 발표했습니다. 이 펀드는 일관된 분배 수준을 유지하는 것을 목표로 하는 관리 배당 계획에 따라 운영됩니다. 현재 배당금 중 55.1%는 단기 자본 이익에서 발생한 순실현금에서 나왔고, 44.9%는 장기 자본 이익에서 발생한 순실현금에서 나왔습니다. 이 펀드의 5년 평균 연간 총 수익률은 11.30%이며, 연간화된 현재 배당률은 7.99%입니다. 재정 연도 현재까지의 NAV 누적 총 수익률은 9.32%이며, 누적 배당률은 6.00%입니다.
Le Virtus Equity & Convertible Income Fund (NYSE: NIE) a annoncé une distribution trimestrielle de $0.50 par action, payable le 26 septembre 2024. Le fonds fonctionne selon un Plan de Distribution Géré, visant à maintenir des niveaux de distribution cohérents. Pour la distribution actuelle, 55.1% provient des gains en capital nets réalisés à court terme, et 44.9% des gains en capital nets réalisés à long terme. Le rendement total annualisé moyen sur 5 ans du fonds est de 11.30%, avec un taux de distribution actuel annualisé de 7.99%. Le rendement total cumulatif YTD sur le NAV est de 9.32%, avec un taux de distribution cumulatif de 6.00%.
Der Virtus Equity & Convertible Income Fund (NYSE: NIE) hat eine vierteljährliche Ausschüttung von $0.50 pro Aktie angekündigt, die am 26. September 2024 ausgezahlt wird. Der Fonds arbeitet nach einem Managed Distribution Plan, dessen Ziel es ist, konsistente Ausschüttungsniveaus aufrechtzuerhalten. Für die aktuelle Ausschüttung stammen 55.1% aus realisierten Nettogewinnen aus kurzfristigen Kapitalanlagen und 44.9% aus realisierten Nettogewinnen aus langfristigen Kapitalanlagen. Der 5-Jahres-Durchschnittsrendite des Fonds auf das NAV beträgt 11.30%, mit einer annualisierten aktuellen Ausschüttungsrate von 7.99%. Der kumulierte Gesamtertrag auf das NAV im laufenden Geschäftsjahr beträgt 9.32%, bei einer kumulierten Ausschüttungsrate von 6.00%.
- Quarterly distribution of $0.50 per share announced
- 5-year average annual total return on NAV of 11.30%
- Fiscal YTD cumulative total return on NAV of 9.32%
- Annualized current distribution rate of 7.99%
- 30.9% of fiscal year-to-date distribution classified as return of capital
Insights
This quarterly distribution announcement for the Virtus Equity & Convertible Income Fund (NIE) is routine and consistent with its Managed Distribution Plan. The fund aims to maintain a
The fund's 5-year average annual total return of
The tax implications of this distribution are important for investors to understand. With
Investors should be aware that the Form 1099-DIV, not this estimate, will determine the final tax treatment. The high proportion of capital gains in the distribution suggests active management and potential portfolio turnover, which could impact after-tax returns for taxable accounts.
Ticker |
Amount of Distribution |
Ex-Date |
Record Date |
Payable Date |
NIE |
|
September 13, 2024 |
September 13, 2024 |
September 26, 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 |
September 2024 (QTD) |
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 |
% |
$ |
0.035 |
2.3 |
% |
Net Realized Short-Term Capital Gains |
$ |
0.276 |
55.1 |
% |
$ |
0.777 |
51.8 |
% |
Net Realized Long-Term Capital Gains |
$ |
0.224 |
44.9 |
% |
$ |
0.224 |
15.0 |
% |
Return of Capital (or other Capital Source) |
$ |
- |
0.0 |
% |
$ |
0.464 |
30.9 |
% |
Total Distribution |
$ |
0.500 |
100.0 |
% |
$ |
1.500 |
100.0 |
% |
(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.
July 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 Equity & Convertible Income Fund is a diversified closed-end fund that seeks total return comprised of capital appreciation, current income, and gains. Under normal circumstances, the Fund will invest 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.
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For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Equity & Convertible Income Fund
FAQ
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