Virtus Total Return Fund Inc. Discloses Sources of Distribution – Section 19(a) Notice
Virtus Total Return Fund Inc. (NYSE: ZTR) has announced its monthly distribution of $0.05 per share, payable on December 30, 2024. The distribution breakdown shows that 29.9% ($0.015) comes from net investment income, while 70.1% ($0.035) represents return of capital. The Fund's performance metrics indicate a 5.25% average annual total return on NAV for the 5-year period and an 8.57% annualized current distribution rate. The Fund's fiscal YTD cumulative total return on NAV stands at 24.24%. Under its Managed Distribution Plan, the Fund aims to maintain consistent distribution levels, though shareholders should note that when aggregate net investment income and realized capital gains are less than the distribution amount, the difference will constitute a return of capital.
Virtus Total Return Fund Inc. (NYSE: ZTR) ha annunciato la sua distribuzione mensile di $0,05 per azione, che sarà pagata il 30 dicembre 2024. La suddivisione della distribuzione mostra che il 29,9% ($0,015) proviene da reddito da investimenti netti, mentre il 70,1% ($0,035) rappresenta un rimborso di capitale. Le metriche di performance del Fondo indicano un 5,25% di rendimento totale medio annuo sul NAV per il periodo di 5 anni e un 8,57% di tasso di distribuzione attuale annualizzato. Il rendimento totale cumulativo anno fino ad oggi del Fondo sul NAV si attesta al 24,24%. Sotto il suo Piano di Distribuzione Gestita, il Fondo punta a mantenere livelli di distribuzione coerenti, sebbene gli azionisti debbano notare che quando il reddito da investimenti netti aggregato e i guadagni in conto capitale realizzati sono inferiori all’importo della distribuzione, la differenza costituirà un rimborso di capitale.
Virtus Total Return Fund Inc. (NYSE: ZTR) ha anunciado su distribución mensual de $0,05 por acción, pagadera el 30 de diciembre de 2024. El desglose de la distribución muestra que el 29,9% ($0,015) proviene de ingresos netos por inversiones, mientras que el 70,1% ($0,035) representa un retorno de capital. Las métricas de desempeño del Fondo indican un 5,25% de rendimiento total promedio anual sobre NAV durante el período de 5 años y un 8,57% de tasa de distribución anualizada actual. El rendimiento total acumulado del Fondo hasta la fecha del NAV se sitúa en el 24,24%. Bajo su Plan de Distribución Administrada, el Fondo busca mantener niveles de distribución consistentes, aunque los accionistas deben tener en cuenta que cuando los ingresos netos por inversiones agregados y las ganancias de capital realizadas son inferiores al monto de la distribución, la diferencia constituirá un retorno de capital.
Virtus Total Return Fund Inc. (NYSE: ZTR)는 주당 $0.05의 월 배당금을 발표했으며, 지급일은 2024년 12월 30일입니다. 배당금 분배 내역에 따르면 29.9%($0.015)는 순 투자 수익에서 나오고, 70.1%($0.035)는 자본 회수로 나타납니다. 펀드의 성과 지표는 5년 기간 동안 NAV에 대해 평균 연간 총 수익률 5.25%와 8.57%의 현재 배당률 연환산율을 나타냅니다. 펀드의 올해 회계 연도 누적 NAV 기준 총 수익률은 24.24%입니다. 관리 배당 계획에 따라 펀드는 일관된 배당 수준을 유지하는 것을 목표로 하지만, 주주들은 총 순 투자 수익 및 실현된 자본 이익이 배당금보다 적으면 그 차액이 자본 회수로 간주된다는 점을 알아야 합니다.
Virtus Total Return Fund Inc. (NYSE: ZTR) a annoncé sa distribution mensuelle de 0,05 $ par action, payable le 30 décembre 2024. La répartition de la distribution montre que 29,9 % (0,015 $) provient des revenus nets d'investissement, tandis que 70,1 % (0,035 $) représente un retour de capital. Les indicateurs de performance du Fonds indiquent un rendement total annuel moyen de 5,25 % sur le NAV pour la période de 5 ans et un taux de distribution annualisé actuel de 8,57 %. Le rendement total cumulé à ce jour du Fonds sur le NAV s'élève à 24,24 %. Dans le cadre de son Plan de Distribution Géré, le Fonds vise à maintenir des niveaux de distribution cohérents, bien que les actionnaires doivent noter que lorsque les revenus nets d'investissement agrégés et les gains en capital réalisés sont inférieurs au montant de la distribution, la différence constituera un retour de capital.
Virtus Total Return Fund Inc. (NYSE: ZTR) hat seine monatliche Verteilung von $0,05 pro Aktie angekündigt, die am 30. Dezember 2024 ausgezahlt wird. Die Verteilung zeigt, dass 29,9% ($0,015) aus netto erzielten Einkünften stammen, während 70,1% ($0,035) eine Rückzahlung von Kapital darstellen. Die Leistungskennzahlen des Fonds zeigen eine durchschnittliche jährliche Gesamtrendite von 5,25% auf den NAV über einen Zeitraum von 5 Jahren und eine aktuelle annualisierte Ausschüttungsquote von 8,57%. Die kumulierte Gesamtrendite des Fonds auf den NAV für das laufende Geschäftsjahr beträgt 24,24%. Im Rahmen seines verwalteten Ausschüttungsplans strebt der Fonds an, konsistente Ausschüttungsniveaus aufrechtzuerhalten, jedoch sollten die Aktionäre beachten, dass, wenn die aggregierten netto erzielten Einkünfte und realisierten Kapitalgewinne unter dem Ausschüttungsbetrag liegen, die Differenz als Rückzahlung von Kapital gilt.
- 5.25% average annual total return on NAV over 5 years
- 24.24% fiscal YTD cumulative total return on NAV
- 8.57% annualized current distribution rate
- 70.1% of current distribution represents return of capital rather than earned income
- No realized capital gains (short-term or long-term) in current distribution
Insights
This monthly distribution disclosure reveals concerning aspects of Virtus Total Return Fund's capital return strategy. 70.1% of the
The fund's
For retail investors, this means that despite receiving regular monthly payments, a significant portion is simply getting their own money back rather than earning investment returns. This can create misleading yield appearances and potentially erode the fund's capital base over time.
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
|
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 provided this estimate of the sources of the distributions:
Distribution Estimates |
December 2024 (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 |
$ |
0.015 |
29.9 |
% |
$ |
0.015 |
29.9 |
% |
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) |
|
0.035 |
70.1 |
% |
|
0.035 |
70.1 |
% |
Total Distribution |
$ |
0.050 |
100.0 |
% |
$ |
0.050 |
100.0 |
% |
(1) Fiscal year started December 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 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. is the investment adviser and Duff & Phelps Investment Management Co. and Newfleet Asset Management are the subadvisers to the Fund.
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 bottom of this press release.
About Duff & Phelps Investment Management Co.
Duff & Phelps Investment Management Co. pursues investment strategies with exceptional depth of resources and expertise. With more than 35 years of experience managing investment portfolios, Duff & Phelps has earned a reputation as a leader in investing in global listed infrastructure, global listed real estate, clean energy, and diversified real assets in institutional separate accounts and open- and closed-end funds. For more information, visit dpimc.com.
About Newfleet Asset Management
Newfleet Asset Management provides comprehensive fixed income portfolio management in multiple strategies. The Newfleet Multi-Sector Strategies team that manages the Virtus Total Return Fund Inc. employs active sector rotation and disciplined risk management in portfolio construction, avoiding interest rate bets, and remaining duration neutral to each strategy’s stated benchmark. Newfleet Asset Management is a division of Virtus Fixed Income Advisers, LLC, which is a registered investment adviser affiliated with Virtus Investment Partners. For more information, visit newfleet.com.
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 Total Return Fund Inc.
FAQ
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