Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution – Section 19(a) Notice
Virtus Diversified Income & Convertible Fund (NYSE: ACV) has disclosed 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 has indicated that it has distributed more than its income and capital gains, meaning a portion of the distribution may constitute a return of capital to shareholders. This occurs when investors receive back part of their original investment and should not be interpreted as yield or income.
The fund emphasizes that distribution estimates are provided for informational purposes only, not for tax reporting. Actual distribution amounts and sources for tax purposes will be determined based on the fund's fiscal year investment performance and may be subject to changes based on tax regulations. Shareholders will receive Form 1099-DIV for official tax reporting purposes.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha divulgato informazioni importanti riguardo alla sua distribuzione mensile nel quadro del Piano di Distribuzione Gestita. Il fondo mira a mantenere livelli di distribuzione costanti che possono derivare da reddito da investimenti netti, guadagni di capitale realizzati, o una combinazione di entrambi.
Il fondo ha indicato di aver distribuito più del suo reddito e dei guadagni di capitale, il che significa che una parte della distribuzione potrebbe costituire un rimborso di capitale per gli azionisti. Questo avviene quando gli investitori ricevono indietro parte del loro investimento originale e non deve essere interpretato come rendimento o reddito.
Il fondo sottolinea che le stime di distribuzione sono fornite solo a scopo informativo, non per la dichiarazione fiscale. Gli importi effettivi della distribuzione e le fonti a fini fiscali saranno determinati in base alle performance di investimento dell'anno fiscale del fondo e potrebbero essere soggetti a variazioni in base alle normative fiscali. Gli azionisti riceveranno il Modulo 1099-DIV per scopi ufficiali di dichiarazione fiscale.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha divulgado información importante sobre su distribución mensual en el marco de su Plan de Distribución Administrada. 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 ha indicado que ha distribuido más de sus ingresos y ganancias de capital, lo que significa que una parte de la distribución puede constituir un reembolso de capital para los accionistas. Esto ocurre cuando los inversores reciben de vuelta parte de su inversión original y no debe interpretarse como rendimiento o ingreso.
El fondo enfatiza que las estimaciones de distribución se proporcionan únicamente con fines informativos, no para la declaración de impuestos. Los montos y fuentes de distribución reales para fines fiscales se determinarán en función del rendimiento de inversión del año fiscal del fondo y pueden estar sujetos a cambios según las regulaciones fiscales. Los accionistas recibirán el Formulario 1099-DIV para fines oficiales de declaración de impuestos.
Virtus Diversified Income & Convertible Fund (NYSE: ACV)는 관리 배분 계획에 따라 월 배분에 관한 중요한 정보를 공개했습니다. 이 펀드는 순 투자 수익, 실현된 자본 이익 또는 이 둘의 조합에서 나올 수 있는 일관된 배분 수준을 유지하는 것을 목표로 합니다.
펀드는 수익과 자본 이익보다 더 많은 배분을 했다고 밝혔으며, 이는 배분의 일부가 주주에게 자본 반환으로 간주될 수 있음을 의미합니다. 이는 투자자가 원래 투자금의 일부를 되돌려 받는 경우에 발생하며, 수익이나 소득으로 해석되어서는 안 됩니다.
펀드는 배분 추정치가 정보 제공 목적으로만 제공되며 세금 보고를 위한 것이 아님을 강조합니다. 세금 목적의 실제 배분 금액 및 출처는 펀드의 회계 연도 투자 성과에 따라 결정되며 세금 규정에 따라 변경될 수 있습니다. 주주들은 공식 세금 보고를 위해 1099-DIV 양식을 받게 됩니다.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) a divulgué 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 constants qui peuvent provenir de revenus nets d'investissement, de gains en capital réalisés, ou d'une combinaison des deux.
Le fonds a indiqué qu'il avait distribué plus que ses revenus et gains en capital, ce qui signifie qu'une partie de la distribution pourrait constituer un remboursement de capital pour les actionnaires. Cela se produit lorsque les investisseurs récupèrent une partie de leur investissement initial et ne doit pas être interprété comme un rendement ou un revenu.
Le fonds souligne que les estimations de distribution sont fournies à titre informatif uniquement, et non pour la déclaration fiscale. Les montants et sources de distribution réels à des fins fiscales seront déterminés en fonction de la performance d'investissement du fonds au cours de l'année fiscale et peuvent être soumis à des changements en fonction des réglementations fiscales. Les actionnaires recevront le formulaire 1099-DIV à des fins officielles de déclaration fiscale.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) hat wichtige Informationen über seine monatliche Ausschüttung im Rahmen seines Managed Distribution Plans veröffentlicht. Der Fonds zielt darauf ab, konsistente Ausschüttungsniveaus aufrechtzuerhalten, die aus Nettokapitalerträgen, realisierten Kapitalgewinnen oder einer Kombination davon stammen können.
Der Fonds hat angegeben, dass er mehr ausgeschüttet hat als seine Einnahmen und Kapitalgewinne, was bedeutet, dass ein Teil der Ausschüttung als Kapitalrückzahlung an die Aktionäre betrachtet werden kann. Dies geschieht, wenn Investoren einen Teil ihrer ursprünglichen Investition zurückerhalten und sollte nicht als Ertrag oder Einkommen interpretiert werden.
Der Fonds betont, dass die Ausschüttungsschätzungen nur zu Informationszwecken bereitgestellt werden, nicht für die Steuerberichterstattung. Die tatsächlichen Ausschüttungsbeträge und -quellen für steuerliche Zwecke werden auf der Grundlage der Investitionsleistung des Fonds im Geschäftsjahr bestimmt und können Änderungen aufgrund von Steuervorschriften unterliegen. Aktionäre erhalten das Formular 1099-DIV für offizielle Steuerberichterstattungszwecke.
- None.
- Fund is distributing more than its income and capital gains, requiring return of capital to maintain distribution levels
- Current distribution level may not be sustainable from investment returns alone
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
ACV |
|
March 13, 2025 |
March 28, 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 |
March 2025 (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 |
$ |
0.000 |
|
$ |
0.012 |
|
Net Realized Short-Term Capital Gains |
|
0.034 |
|
|
0.042 |
|
Net Realized Long-Term Capital Gains |
|
0.072 |
|
|
0.082 |
|
Return of Capital (or other Capital Source) |
|
0.074 |
|
|
0.224 |
|
Total Distribution |
$ |
0.180 |
|
$ |
0.360 |
|
(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.
February 28, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327223122/en/
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 will ACV shareholders receive tax information about these distributions?
What are the sources of ACV's monthly distributions?
How does ACV's Managed Distribution Plan work?
