Virtus Total Return Fund Inc. Declares Distribution and Discloses Sources of Distribution - Section 19(a) Notice
Virtus Total Return Fund Inc. (ZTR) has declared a monthly distribution of $0.08 for October and November 2021. The ex-dates for these distributions are October 8 and November 10, respectively, with record and payable dates set for October 12 and 19, and November 12 and 19. The fund follows a Managed Distribution Plan, which may involve payments from net investment income and realized capital gains, with potential returns coming from the fund's assets. Shareholders should be aware some distributions may be returns of capital, reflecting an estimated distribution of over the fund's income for the year.
- Monthly distributions of $0.08 for October and November 2021
- Average annual total return on NAV for the last 5 years is 7.79%
- Current fiscal YTD annualized distribution rate is 10.16%
- 78% of August 2021 distribution may be a return of capital, indicating potential concerns with sustainable income generation
- No net realized short-term or long-term capital gains reported, which may affect future distribution capabilities
HARTFORD, Conn., Sept. 2, 2021 /PRNewswire/ -- Virtus Total Return Fund Inc. (NYSE: ZTR) today announced the following monthly distributions:
Amount of Distribution | Ex-Date | Record Date | Payable Date |
October 8, 2021 | October 12, 2021 | October 19, 2021 | |
November 10, 2021 | November 12, 2021 | November 19, 2021 |
The fund previously announced the following monthly distribution on May 20, 2021:
Amount of Distribution | Ex-Date | Record Date | Payable Date |
September 10, 2021 | September 13, 2021 | September 20, 2021 |
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 | August 2021 (MTD) | Fiscal Year-to-Date (YTD)(1) | ||
(Sources) | Per Share | Percentage | Per Share | Percentage |
Net Investment Income | $ 0.018 | $ 0.173 | ||
Net Realized Short-Term Capital Gains | - | - | ||
Net Realized Long-Term Capital Gains | - | - | ||
Return of Capital (or other Capital Source) | 0.062 | 0.547 | ||
Total Distribution | $ 0.080 | $ 0.720 | ||
(1) | Fiscal year started December 1, 2020. |
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.
August 31, 2021 | |||
Average Annual Total Return on NAV for the 5-year period (2) | |||
Current Fiscal YTD Annualized 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) | 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 Total Return Fund Inc. is a diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, Inc. has been the investment adviser, and Duff & Phelps Investment Management Co. and Newfleet Asset Management, LLC have been subadvisers, to the Fund since December 9, 2011. Performance and characteristics prior to December 9, 2011 were attained by the previous adviser using a different investment strategy.
For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the closed end fund 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 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 bottom of this press release.
About Duff & Phelps Investment Management Co.
Duff & Phelps Investment Management Co. has more than 35 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, master limited partnerships (MLPs), infrastructure and real estate investment trusts (REITs). For more information, visit www.dpimc.com.
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 Total Return Fund Inc. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/virtus-total-return-fund-inc-declares-distribution-and-discloses-sources-of-distribution--section-19a-notice-301368745.html
SOURCE Virtus Total Return Fund Inc.
FAQ
What is the distribution amount for Virtus Total Return Fund Inc. (ZTR) in October 2021?
When is the ex-date for the November 2021 distribution of Virtus Total Return Fund Inc. (ZTR)?
What percentage of the August 2021 distribution for Virtus Total Return Fund Inc. (ZTR) is a return of capital?
What are the record and payable dates for the October 2021 distribution of Virtus Total Return Fund Inc. (ZTR)?
