Virtus Dividend, Interest & Premium Strategy Fund Announces Share Repurchase Program
Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) has announced a new share repurchase program authorized by its Board of Trustees. The program allows for the repurchase of up to 5% of outstanding common shares (based on shares outstanding as of February 13, 2025) through open market transactions when trading at a discount to net asset value (NAV).
The initiative aims to enhance shareholder value, as repurchases made at a discount may increase the NAV per share of remaining shares. The Fund views these repurchases as potential attractive investment opportunities. Repurchase activities will be disclosed in annual and semi-annual shareholder reports. The program's implementation will depend on price, market conditions, and business conditions, subject to federal securities laws and exchange requirements.
Il Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) ha annunciato un nuovo programma di riacquisto di azioni autorizzato dal suo Consiglio di Amministrazione. Il programma consente il riacquisto di fino al 5% delle azioni ordinarie in circolazione (basato sulle azioni in circolazione al 13 febbraio 2025) attraverso transazioni sul mercato aperto quando il trading avviene a un prezzo inferiore al valore patrimoniale netto (NAV).
L'iniziativa mira a incrementare il valore per gli azionisti, poiché i riacquisti effettuati a un prezzo scontato possono aumentare il NAV per azione delle azioni rimanenti. Il Fondo considera questi riacquisti come potenziali opportunità di investimento interessanti. Le attività di riacquisto saranno comunicate nei rapporti annuali e semestrali agli azionisti. L'attuazione del programma dipenderà dal prezzo, dalle condizioni di mercato e dalle condizioni aziendali, soggette alle leggi federali sui titoli e ai requisiti di borsa.
El Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) ha anunciado un nuevo programa de recompra de acciones autorizado por su Junta de Fideicomisarios. El programa permite la recompra de hasta el 5% de las acciones ordinarias en circulación (basado en las acciones en circulación al 13 de febrero de 2025) a través de transacciones en el mercado abierto cuando se negocia a un descuento respecto al valor neto de los activos (NAV).
La iniciativa tiene como objetivo mejorar el valor para los accionistas, ya que las recompras realizadas a un descuento pueden aumentar el NAV por acción de las acciones restantes. El Fondo considera estas recompras como oportunidades de inversión potencialmente atractivas. Las actividades de recompra se divulgarán en los informes anuales y semestrales para los accionistas. La implementación del programa dependerá del precio, las condiciones del mercado y las condiciones comerciales, sujeto a las leyes federales de valores y a los requisitos de la bolsa.
Virtus 배당, 이자 및 프리미엄 전략 펀드 (NYSE: NFJ)가 이사회에서 승인한 새로운 자사주 매입 프로그램을 발표했습니다. 이 프로그램은 발행된 보통주 5%까지 자사주 매입을 허용하며 (2025년 2월 13일 기준 발행된 주식 기준) 시장에서 순자산가치(NAV)보다 할인된 가격으로 거래될 때 공개 시장 거래를 통해 이루어질 수 있습니다.
이 이니셔티브는 주주 가치를 증대시키는 것을 목표로 하며, 할인된 가격으로 이루어진 매입은 남은 주식의 NAV를 증가시킬 수 있습니다. 펀드는 이러한 매입을 잠재적으로 매력적인 투자 기회로 보고 있습니다. 매입 활동은 연례 및 반기 주주 보고서에 공개될 것입니다. 프로그램의 시행은 가격, 시장 조건 및 사업 조건에 따라 달라지며, 연방 증권 법률 및 거래소 요구 사항에 따릅니다.
Le Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) a annoncé un nouveau programme de rachat d'actions autorisé par son Conseil d'administration. Le programme permet le rachat de jusqu'à 5% des actions ordinaires en circulation (basé sur les actions en circulation au 13 février 2025) par le biais de transactions sur le marché ouvert lorsque le trading se fait à un prix inférieur à la valeur nette d'inventaire (NAV).
Cette initiative vise à améliorer la valeur pour les actionnaires, car les rachats effectués à un prix réduit peuvent augmenter le NAV par action des actions restantes. Le Fonds considère ces rachats comme des opportunités d'investissement potentiellement intéressantes. Les activités de rachat seront divulguées dans les rapports annuels et semestriels aux actionnaires. La mise en œuvre du programme dépendra du prix, des conditions du marché et des conditions commerciales, sous réserve des lois fédérales sur les valeurs mobilières et des exigences des bourses.
Der Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) hat ein neues Aktienrückkaufprogramm angekündigt, das von seinem Vorstand genehmigt wurde. Das Programm erlaubt den Rückkauf von bis zu 5% der ausstehenden Stammaktien (basierend auf den am 13. Februar 2025 ausstehenden Aktien) durch Transaktionen am offenen Markt, wenn der Handel unter dem Nettoinventarwert (NAV) erfolgt.
Die Initiative zielt darauf ab, den Aktionärswert zu steigern, da Rückkäufe zu einem Rabatt den NAV pro Aktie der verbleibenden Aktien erhöhen können. Der Fonds betrachtet diese Rückkäufe als potenziell attraktive Investitionsmöglichkeiten. Die Rückkaufaktivitäten werden in den Jahres- und Halbjahresberichten an die Aktionäre offengelegt. Die Umsetzung des Programms hängt von Preis, Marktbedingungen und Geschäftslage ab und unterliegt den Bundeswertpapiergesetzen und den Anforderungen der Börse.
- Share repurchase program of up to 5% of outstanding shares may increase NAV per share
- Repurchases will only occur at discount to NAV, ensuring efficient use of capital
- Program demonstrates commitment to enhancing shareholder value
- No guaranteed minimum repurchase amount
- No assurance of share price improvement from the program
- Implementation subject to market conditions and regulatory limitations
Insights
The announced share repurchase program for NFJ represents a strategic capital allocation decision with multiple implications for shareholders. With a current market cap of
Share repurchases in closed-end funds serve a dual purpose: First, when executed at a discount to NAV, they immediately create value by effectively purchasing assets below their intrinsic value. For example, if shares are trading at a
However, several nuanced factors warrant consideration: The discretionary nature of the program means execution is not guaranteed, and the impact will depend heavily on market conditions and the persistence of any discount to NAV. Additionally, while the
The program's implementation alongside the Fund's existing dividend and premium strategy suggests a comprehensive approach to shareholder value creation. The key metric to monitor will be the execution price relative to NAV, as this spread directly determines the accretive value of each repurchase transaction.
The share repurchase program is intended to enhance shareholder value, as repurchases made at a discount may have the effect of increasing the NAV per share of the Fund's remaining shares. In addition, repurchases of closed-end fund shares may at times represent attractive investment opportunities for the Fund.
Pursuant to the share repurchase program, the Fund may, from time to time and at the discretion of management personnel and depending on price and prevailing market and business conditions, purchase shares of the Fund in the open market when the Fund is trading at a discount to its NAV. The Fund’s repurchase activity will be disclosed in the annual and semi-annual reports to shareholders.
There is no assurance that the Fund will purchase shares at any particular discount levels or in any particular amounts or that the market price of the Fund’s shares, either absolutely or relative to NAV, will increase as a result of share repurchases. Any repurchases made under the program will be subject to exchange requirements and volume, timing, and other limitations under federal securities laws.
This press release does not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of shares in the Fund in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
About the Fund
Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) is a diversified closed-end fund that seeks current income and gains, with long-term capital appreciation as a secondary objective. The Fund generally invests approximately
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 net asset value. 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 Dividend, Interest and Premium Strategy Fund
FAQ
What is the size of NFJ's new share repurchase program?
When will NFJ execute the share repurchases?
How will NFJ's share repurchase program benefit shareholders?
How will NFJ report the share repurchase activities?
What conditions must be met for NFJ to repurchase shares?
