Virtus AllianzGI Diversified Income & Convertible Fund Discloses Sources of Distribution - Section 19(a) Notice
On January 18, 2022, the Virtus AllianzGI Diversified Income & Convertible Fund (NYSE: ACV) announced a managed distribution plan, increasing its monthly distribution rate to $0.18 per share, effective from the upcoming monthly distribution. The ex-date for this distribution is January 12, 2022 and the payable date is February 1, 2022. The fund aims to maintain a consistent distribution level, which may be partially sourced from shareholder capital if net investment income and realized gains are insufficient. Key distribution estimates for January indicate that net realized short-term capital gains account for the full distribution amount.
- Monthly distribution rate increased to $0.18 per share.
- Managed distribution plan aims for consistent payouts to shareholders.
- Distributions may be funded from shareholder capital if income and gains are inadequate.
HARTFORD, Conn., Jan. 18, 2022 /PRNewswire/ -- Virtus AllianzGI Diversified Income & Convertible Fund (NYSE: ACV) previously announced on December 17, 2021 that it will institute a managed distribution plan and increase its monthly distribution rate to
Amount of Distribution | Ex-Date | Record Date | Payable Date |
January 12, 2022 | January 13, 2022 | February 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 | January 2022 (MTD) | Fiscal Year-to-Date | ||
(Sources) | Per Share | Percentage | Per Share | Percentage |
Net Investment Income | $ - | $ - | ||
Net Realized Short-Term Capital Gains | 0.180 | 5.664 | ||
Net Realized Long-Term Capital Gains | - | 2.152 | ||
Return of Capital (or other Capital Source) | - | - | ||
Total Distribution | $ 0.180 | $ 7.816 | ||
(1) | Fiscal year started February 1, 2021. Fiscal YTD includes the special distribution of |
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.
December 31, 2021 | |||
Average Annual Total Return on NAV for the 5-year period (2) | |||
Current Fiscal YTD Annualized 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) | Current Fiscal YTD Annualized Distribution Rate is the current distribution rate ( | ||
(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, excluding the special distribution of | ||
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 AllianzGI 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
For more information on the Fund, contact shareholder services at (800) 254-5197, 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 each 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 Allianz Global Investors
Allianz Global Investors or AllianzGI is a leading active asset manager with over 750 investment professionals in 25 offices worldwide and manages assets for individuals, families, and institutions. The investment team has extensive experience managing closed-end funds and a differentiated, multi-asset approach based on fundamental research designed to dynamically allocate across convertible securities and equities.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand. For more information, visit virtus.com.
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SOURCE Virtus AllianzGI Diversified Income & Convertible Fund
FAQ
What is the new distribution rate for ACV?
When is the payable date for the new distribution of ACV?
What sources will fund the ACV distribution?
What is the significance of the managed distribution plan for ACV?
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