Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution – Section 19(a) Notice
Virtus Diversified Income & Convertible Fund (NYSE: ACV) has announced its monthly distribution of $0.18 per share, payable on December 30, 2024. The Fund's distribution analysis reveals that 100% of the December distribution comes from net realized short-term capital gains. For the fiscal year-to-date, 18.2% comes from short-term gains while 81.8% represents return of capital.
The Fund's performance metrics show a 13.20% average annual total return on NAV for the 5-year period, with a 24.50% fiscal YTD cumulative total return. The current annualized distribution rate stands at 9.04%, with a fiscal YTD cumulative distribution rate of 7.53%.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha annunciato la sua distribuzione mensile di $0,18 per azione, che sarà pagata il 30 dicembre 2024. L'analisi della distribuzione del fondo rivela che il 100% della distribuzione di dicembre proviene da guadagni in conto capitale a breve termine netti realizzati. Fino ad oggi nel l'anno fiscale, il 18,2% proviene da guadagni a breve termine mentre l'81,8% rappresenta un ritorno di capitale.
I parametri di performance del fondo mostrano un 13,20% di rendimento totale medio annuo sul NAV per il periodo di 5 anni, con un 24,50% di rendimento totale cumulativo dall'inizio dell'anno fiscale. L'attuale tasso di distribuzione annualizzato si attesta al 9,04%, con un tasso di distribuzione cumulativo dell'anno fiscale del 7,53%.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) ha anunciado su distribución mensual de $0.18 por acción, que se pagará el 30 de diciembre de 2024. El análisis de distribución del fondo revela que el 100% de la distribución de diciembre proviene de ganancias de capital a corto plazo netas realizadas. Hasta la fecha, el 18.2% proviene de ganancias a corto plazo mientras que el 81.8% representa retorno de capital.
Las métricas de rendimiento del fondo muestran un 13.20% de rendimiento total anual promedio sobre el NAV durante el período de 5 años, con un 24.50% de rendimiento total acumulado hasta la fecha del año fiscal. La tasa de distribución anualizada actual se sitúa en el 9.04%, con una tasa de distribución acumulativa del año fiscal del 7.53%.
Virtus Diversified Income & Convertible Fund (NYSE: ACV)는 2024년 12월 30일 지급될 주당 $0.18의 월 배당금을 발표했습니다. 펀드의 배당금 분석에 따르면, 12월 배당금의 100%가 실현된 단기 자본 이익에서 발생합니다. 회계 연도 현재까지 단기 이익은 18.2%이고, 81.8%는 자본 환급을 나타냅니다.
펀드의 성과 지표는 5년 기간 동안 NAV에 대해 13.20%의 평균 연간 총 수익률을 보여주며, 24.50%의 회계 연도 누적 총 수익률을 기록하고 있습니다. 현재 연환산 배당률은 9.04%이며, 회계 연도 누적 배당률은 7.53%입니다.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) a annoncé sa distribution mensuelle de 0,18 $ par action, qui sera payée le 30 décembre 2024. L'analyse de la distribution du fonds révèle que 100 % de la distribution de décembre provient de gains en capital à court terme réalisés. Depuis le début de l'exercice fiscal, 18,2 % provient de gains à court terme tandis que 81,8 % représente un retour de capital.
Les indicateurs de performance du fonds montrent un rendement total annuel moyen de 13,20 % sur la valeur nette d'inventaire (NAV) pour la période de 5 ans, avec un rendement total cumulé depuis le début de l'exercice fiscal de 24,50 %. Le taux de distribution annualisé actuel est de 9,04 %, avec un taux de distribution cumulé depuis le début de l'exercice fiscal de 7,53 %.
Virtus Diversified Income & Convertible Fund (NYSE: ACV) hat seine monatliche Ausschüttung von $0,18 pro Aktie bekannt gegeben, die am 30. Dezember 2024 zahlbar ist. Die Analyse der Ausschüttung des Fonds zeigt, dass 100% der Ausschüttung im Dezember aus realisierten kurzfristigen Kapitalgewinnen stammen. Für das bis heute laufende Geschäftsjahr stammen 18,2% aus kurzfristigen Gewinnen, während 81,8% eine Rückzahlung von Kapital darstellen.
Die Leistungskennzahlen des Fonds zeigen eine 13,20% durchschnittliche jährliche Gesamtrendite auf das NAV für den 5-Jahres-Zeitraum, mit einer 24,50% kumulierten Gesamtrendite im bis heute laufenden Geschäftsjahr. Der aktuelle annualisierte Ausschüttungssatz beträgt 9,04%, mit einem kumulierten Ausschüttungssatz von 7,53% im laufenden Geschäftsjahr.
- Strong 24.50% fiscal YTD cumulative total return on NAV
- Solid 13.20% average annual total return on NAV for 5-year period
- Attractive 9.04% annualized current distribution rate
- 81.8% of fiscal YTD distributions constitute return of capital, not actual earnings
- Fund is distributing more than its income and capital gains
Insights
The Virtus Diversified Income & Convertible Fund has announced its monthly distribution details, revealing some concerning aspects for investors. The distribution of
The fund's performance metrics show mixed signals. While the
The distribution structure raises red flags about the fund's sustainability. The complete absence of net investment income in the current distribution and the significant return of capital component in the YTD distributions indicates potential challenges in the fund's income generation strategy. For retail investors, it's important to understand that while receiving return of capital might seem attractive, it essentially means getting your own investment back rather than actual gains or income.
The fund's managed distribution plan, while providing consistent payments, may be masking underlying performance issues. The
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
ACV |
|
December 12, 2024 |
December 30, 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 |
December 2024 (MTD) |
Fiscal Year-to-Date (YTD) (1) |
||||
(Sources) |
Per Share
|
Percentage
|
Per Share
|
Percentage
|
||
Net Investment Income |
$ |
- |
|
$ |
- |
|
Net Realized Short-Term Capital Gains |
|
0.180 |
|
|
0.360 |
|
Net Realized Long-Term Capital Gains |
|
- |
|
|
- |
|
Return of Capital (or other Capital Source) |
|
- |
|
|
1.620 |
|
Total Distribution |
$ |
0.180 |
|
$ |
1.980 |
|
| (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.
November 29, 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 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
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