Virtus Global Multi-Sector Income Fund Discloses Sources of Distribution - Section 19(a) Notice

Rhea-AI Summary

On October 5, 2020, Virtus Global Multi-Sector Income Fund (NYSE: VGI) announced a monthly distribution of $0.10 per share. The ex-date is set for October 9, 2020, with a record date of October 13 and payable date of October 20. Under its Managed Distribution Plan, a portion of this distribution may come from return of capital, indicating that some of the money invested may be returned to shareholders. The fund estimates that 54.9% of the distribution will be a return of capital for September 2020.

Positive

• Monthly distribution maintained at $0.10 per share.
• Estimated annualized distribution rate of 9.87%.

Negative

• 54.9% of September distribution is a return of capital, indicating reliance on capital rather than income.

HARTFORD, Conn., Oct. 5, 2020 /PRNewswire/ -- Virtus Global Multi-Sector Income Fund (NYSE: VGI) previously  announced the following monthly distribution on August 28, 2020:

Amount of Distribution	Ex-Date	Record Date	Payable Date
$0.10	October 9, 2020	October 13, 2020	October 20, 2020

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 provided this estimate of the sources of the distributions:

Distribution Estimates	September 2020 (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	$        0.045	45.1%	$        0.462	39.9%
Net Realized Short-Term Capital Gains	-	0.0%	-	0.0%
Net Realized Long-Term Capital Gains	-	0.0%	-	0.0%
Return of Capital (or other Capital Source)	0.055	54.9%	0.694	60.1%
Total Distribution	$        0.100	100.0%	$        1.156	100.0%
(1)   Fiscal year started December 1, 2019.

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.

September 30, 2020
Average Annual Total Return on NAV for the 5-year period(2)		6.08%
Current Fiscal YTD Annualized Distribution Rate(3)		9.87%
Fiscal YTD Cumulative Total Return on NAV (4)		2.52%
Fiscal YTD Cumulative Distribution Rate (5)		9.51%

(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 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 Global Multi-Sector Income Fund is a diversified closed-end fund that seeks to maximize current income while preserving capital by investing in broadly diversified holdings across the major domestic and international fixed-income sectors. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and Newfleet Asset Management, LLC is its subadviser.

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 www.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 Newfleet Asset Management

Newfleet Asset Management, an affiliated manager of Virtus Investment Partners, provides comprehensive fixed income portfolio management in multiple strategies. The Newfleet Multi-Sector Strategies team that manages the Virtus Global Multi-Sector Income Fund leverages the knowledge and skill of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction, avoiding interest rate bets and remaining duration neutral to each strategy's stated benchmark. For more information, visit www.newfleet.com.

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 www.virtus.com.

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SOURCE Virtus Global Multi-Sector Income Fund

FAQ

What is the distribution amount for Virtus Global Multi-Sector Income Fund (VGI) announced on October 5, 2020?

The distribution amount announced is $0.10 per share.

When is the ex-date for the Virtus Global Multi-Sector Income Fund's October 2020 distribution?

The ex-date for the distribution is October 9, 2020.

How much of the September 2020 distribution for VGI is a return of capital?

54.9% of the September 2020 distribution is estimated to be a return of capital.

What are the payable and record dates for the VGI distribution announced on October 5, 2020?

The record date is October 13, 2020, and the payable date is October 20, 2020.

What is the annualized distribution rate for Virtus Global Multi-Sector Income Fund (VGI) stated in the recent announcement?

The current fiscal year-to-date annualized distribution rate is 9.87%.