Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution – Section 19(a) Notice
Virtus Diversified Income & Convertible Fund (NYSE: ACV) has released important information regarding its monthly distribution under its Managed Distribution Plan. The Fund aims to maintain consistent distribution levels that may be sourced from net investment income, realized capital gains, or a combination thereof.
The Fund disclosed that it has distributed more than its income and capital gains, indicating that a portion of the distribution may constitute a return of capital to shareholders. This means some of the money investors put into the Fund is being paid back to them. The Fund emphasizes that distribution amounts and sources are estimates, and final tax reporting details will be provided via Form 1099-DIV.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha rilasciato informazioni importanti riguardo la sua distribuzione mensile nell'ambito del suo Piano di Distribuzione Gestita. Il Fondo mira a mantenere livelli di distribuzione costanti, che possono provenire da reddito da investimenti netti, guadagni in conto capitale realizzati o una combinazione di entrambi.
Il Fondo ha rivelato di aver distribuito più del suo reddito e dei guadagni in conto capitale, indicando che una parte della distribuzione potrebbe costituire un rimborso di capitale per gli azionisti. Ciò significa che parte del denaro investito nel Fondo viene restituito agli investitori. Il Fondo sottolinea che gli importi e le fonti di distribuzione sono stime e che i dettagli finali per la dichiarazione fiscale saranno forniti tramite il Modulo 1099-DIV.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha publicado información importante sobre su distribución mensual bajo su Plan de Distribución Gestionada. El Fondo tiene como objetivo mantener niveles de distribución consistentes que pueden provenir de ingresos netos por inversiones, ganancias de capital realizadas o una combinación de ambos.
El Fondo reveló que ha distribuido más de sus ingresos y ganancias de capital, lo que indica que una parte de la distribución puede constituir un reembolso de capital para los accionistas. Esto significa que parte del dinero que los inversores pusieron en el Fondo se les está devolviendo. El Fondo enfatiza que los montos y fuentes de distribución son estimaciones, y los detalles finales de la declaración de impuestos se proporcionarán a través del Formulario 1099-DIV.
Virtus Diversified Income & Convertible Fund (NYSE: ACV)는 관리 배당 계획에 따라 월 배당에 대한 중요한 정보를 발표했습니다. 이 펀드는 순 투자 소득, 실현된 자본 이득 또는 이 둘의 조합에서 나올 수 있는 일관된 배당 수준을 유지하는 것을 목표로 합니다.
펀드는 소득과 자본 이득을 초과하여 배당금을 분배했다고 밝혔으며, 이는 배당금의 일부가 주주에게 자본 환급으로 간주될 수 있음을 나타냅니다. 이는 투자자들이 펀드에 투자한 일부 금액이 그들에게 반환되고 있음을 의미합니다. 펀드는 배당금의 금액과 출처가 추정치이며, 최종 세금 보고 세부사항은 양식 1099-DIV를 통해 제공될 것이라고 강조합니다.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) a publié des informations importantes concernant sa distribution mensuelle dans le cadre de son Plan de Distribution Géré. Le Fonds vise à maintenir des niveaux de distribution cohérents qui peuvent provenir de revenus nets d'investissement, de gains en capital réalisés ou d'une combinaison des deux.
Le Fonds a révélé qu'il avait distribué plus que ses revenus et gains en capital, ce qui indique qu'une partie de la distribution pourrait constituer un remboursement de capital pour les actionnaires. Cela signifie qu'une partie de l'argent que les investisseurs ont mis dans le Fonds leur est restituée. Le Fonds souligne que les montants et les sources de distribution sont des estimations, et que les détails finaux pour la déclaration fiscale seront fournis via le formulaire 1099-DIV.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) hat wichtige Informationen zu seiner monatlichen Ausschüttung im Rahmen seines Managed Distribution Plans veröffentlicht. Der Fonds hat das Ziel, konsistente Ausschüttungsniveaus aufrechtzuerhalten, die aus Nettoanlageerträgen, realisierten Kapitalgewinnen oder einer Kombination davon stammen können.
Der Fonds hat offengelegt, dass er mehr als seine Erträge und Kapitalgewinne ausgeschüttet hat, was darauf hinweist, dass ein Teil der Ausschüttung als Rückzahlung von Kapital an die Aktionäre betrachtet werden kann. Das bedeutet, dass ein Teil des Geldes, das die Anleger in den Fonds investiert haben, an sie zurückgezahlt wird. Der Fonds betont, dass die Ausschüttungsbeträge und -quellen Schätzungen sind und die endgültigen steuerlichen Berichterstattungsdetails über das Formular 1099-DIV bereitgestellt werden.
- None.
- Fund is distributing more than its earned income and capital gains
- Distributions include return of capital, indicating potential unsustainable payout level
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
ACV |
|
February 13, 2025 |
February 27, 2025 |
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 |
February 2025 (MTD) |
Fiscal Year-to-Date
|
||||
(Sources) |
Per Share
|
Percentage
|
Per Share
|
Percentage
|
||
Net Investment Income |
$ |
0.012 |
|
$ |
0.012 |
|
Net Realized Short-Term Capital Gains |
|
0.008 |
|
|
0.008 |
|
Net Realized Long-Term Capital Gains |
|
0.010 |
|
|
0.010 |
|
Return of Capital (or other Capital Source) |
|
0.150 |
|
|
0.150 |
|
Total Distribution |
$ |
0.180 |
|
$ |
0.180 |
|
(1) Fiscal year started February 1, 2025. |
||||||
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.
January 31, 2025 |
|
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 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
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 Diversified Income & Convertible Fund
FAQ
What does the return of capital distribution mean for ACV shareholders?
How does ACV's Managed Distribution Plan work?
Will ACV shareholders receive tax documentation for these distributions?
Why is ACV distributing more than its income and capital gains?
