Virtus Global Multi-Sector Income Fund to Remove Managed Distribution Plan, Maintain Monthly Distribution of $0.08/Share

Rhea-AI Summary

Virtus Global Multi-Sector Income Fund (NYSE: VGI) has announced the removal of its managed distribution plan, effective December 2021. The fund will continue to pay $0.08 per share in monthly distributions. This decision follows the elimination of an option overlay strategy that was part of the fund's investment approach since 2015, potentially lowering fund expenses. Future distributions will depend on net investment income and capital gains, with a supplemental distribution announcement planned for January 3, 2022.

Positive

• Maintaining a consistent monthly distribution of $0.08 per share.
• Removal of the managed distribution plan may reduce certain fund expenses.

Negative

• None.

HARTFORD, Conn., Nov. 18, 2021 /PRNewswire/ -- Virtus Global Multi-Sector Income Fund (NYSE: VGI), a diversified closed-end fund, today announced that it will remove its managed distribution plan, effective with the December distribution. The fund intends to maintain its level payout at the current distribution rate of $0.08 per share.

The fund implemented a managed distribution policy in 2015 when it was utilizing an option overlay strategy that has since been removed from the fund's investment strategy. As a result, the fund will remove the managed distribution plan and associated requirements, which may reduce certain fund expenses.

The Fund announced the following monthly distributions:

Amount of Distribution	Ex-Date	Record Date	Payable Date
$0.08	December 10, 2021	December 13, 2021	December 20, 2021
$0.08	January 5, 2022	December 31, 2021	January 10, 2022
$0.08	February 10, 2022	February 11, 2022	February 18, 2022
$0.08	March 10, 2022	March 11, 2022	March 18, 2022

For the distribution with the record date of December 31, 2021, the Fund intends to distribute the greater of $0.08 per share or all available net investment income and net short- and long-term capital gains, in accordance with requirements under the Internal Revenue Code of 1986, as amended. The amount of a supplemental distribution over the $0.08 per share, if any, will be announced on January 3, 2022.

The amounts 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 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 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 virtus.com.

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SOURCE Virtus Global Multi-Sector Income Fund

FAQ

What did Virtus Global Multi-Sector Income Fund announce on November 18, 2021?

The fund announced that it will remove its managed distribution plan while maintaining a monthly distribution of $0.08 per share.

How will the removal of the managed distribution plan affect Virtus Global Multi-Sector Income Fund's expenses?

The removal may reduce certain fund expenses as the managed distribution plan is eliminated.

When is the next distribution date for Virtus Global Multi-Sector Income Fund?

The next distribution date is December 10, 2021.

What is the current distribution rate for Virtus Global Multi-Sector Income Fund?

The current distribution rate is $0.08 per share.

Will Virtus Global Multi-Sector Income Fund provide supplemental distributions?

Yes, a supplemental distribution announcement will be made on January 3, 2022.