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 August 29, 2024. The fund operates under a Managed Distribution Plan, aiming to maintain consistent distribution levels. However, the current distribution is estimated to be 100% return of capital, as the fund has distributed more than its income and capital gains. This means shareholders are receiving back part of their investment rather than earnings.
The fund's performance metrics show an average annual total return on NAV of 3.58% for the 5-year period and a fiscal YTD cumulative total return on NAV of 12.84%. The annualized current distribution rate stands at 9.13%. Investors should note that return of capital distributions do not necessarily reflect the fund's investment performance and should not be confused with yield or income.
Il Virtus Total Return Fund Inc. (NYSE: ZTR) ha annunciato la sua distribuzione mensile di $0,05 per azione, pagabile il 29 agosto 2024. Il fondo opera secondo un Piano di Distribuzione Gestita, con l'obiettivo di mantenere livelli di distribuzione costanti. Tuttavia, l'attuale distribuzione è stimata come 100% restituzione di capitale, poiché il fondo ha distribuito più del suo reddito e dei guadagni in conto capitale. Questo significa che gli azionisti stanno ricevendo indietro parte del loro investimento piuttosto che utili.
I parametri di performance del fondo mostrano un ritorno totale annuo medio su NAV del 3,58% per il periodo di 5 anni e un ritorno totale cumulativo fino ad oggi sul NAV del 12,84%. Il tasso di distribuzione attuale annualizzato è del 9,13%. Gli investitori dovrebbero notare che le distribuzioni di restituzione di capitale non riflettono necessariamente la performance degli investimenti del fondo e non devono essere confuse con il rendimento o il reddito.
Virtus Total Return Fund Inc. (NYSE: ZTR) ha anunciado su distribución mensual de $0.05 por acción, pagadera el 29 de agosto de 2024. El fondo opera bajo un Plan de Distribución Administrada, con el objetivo de mantener niveles de distribución consistentes. Sin embargo, la distribución actual se estima como 100% retorno de capital, puesto que el fondo ha distribuido más de sus ingresos y ganancias de capital. Esto significa que los accionistas están recibiendo de vuelta parte de su inversión en lugar de ganancias.
Los indicadores de rendimiento del fondo muestran un retorno total anual promedio sobre el NAV del 3.58% para el periodo de 5 años y un retorno total acumulado del YTD sobre el NAV del 12.84%. La tasa de distribución actual anualizada se sitúa en el 9.13%. Los inversores deben tener en cuenta que las distribuciones de retorno de capital no reflejan necesariamente el rendimiento de inversión del fondo y no deben confundirse con el rendimiento o ingresos.
Virtus Total Return Fund Inc. (NYSE: ZTR)는 주당 $0.05의 월 배당금을 발표했으며, 2024년 8월 29일에 지급될 예정입니다. 이 펀드는 관리 배당 계획에 따라 운영되며, 일관된 배당 수준을 유지하는 것을 목표로 합니다. 그러나 현재의 배당금은 자본의 100% 반환으로 추정되며, 이는 펀드가 수익 및 자본 이익보다 더 많은 금액을 분배했음을 의미합니다. 즉, 주주들은 수익이 아니라 투자금의 일부를 되찾고 있는 것입니다.
펀드의 성과 지표는 5년 기간 동안 NAV에 대한 연평균 총 수익률이 3.58%임을 보여주며, 2023년 현재 NAV에 대한 총 누적 수익률이 12.84%에 달합니다. 현재의 연환산 배당률은 9.13%입니다. 투자자들은 자본 반환 배당금이 펀드의 투자 성과를 반드시 반영하지 않으며, 수익이나 수입과 혼동해서는 안 된다는 점을 유의해야 합니다.
Le Virtus Total Return Fund Inc. (NYSE: ZTR) a annoncé sa distribution mensuelle de $0,05 par action, payable le 29 août 2024. Le fonds opère selon un Plan de Distribution Géré, visant à maintenir des niveaux de distribution constants. Cependant, la distribution actuelle est estimée à 100% de retour du capital, car le fonds a distribué plus de ses revenus et de ses plus-values. Cela signifie que les actionnaires récupèrent une partie de leur investissement au lieu de bénéfices.
Les indicateurs de performance du fonds montrent un rendement total annuel moyen sur la NAV de 3,58% pour la période de 5 ans et un rendement total cumulatif depuis le début de l'exercice sur la NAV de 12,84%. Le taux de distribution actuel annualisé est de 9,13%. Les investisseurs doivent garder à l'esprit que les distributions de retour de capital ne reflètent pas nécessairement la performance d'investissement du fonds et ne doivent pas être confondues avec le rendement ou le revenu.
Der Virtus Total Return Fund Inc. (NYSE: ZTR) hat seine monatliche Ausschüttung von 0,05 $ pro Aktie angekündigt, die am 29. August 2024 zahlbar ist. Der Fonds operiert unter einem verwalteten Ausschüttungsplan, der darauf abzielt, konsistente Ausschüttungslevels aufrechtzuerhalten. Allerdings wird die aktuelle Ausschüttung auf 100% Rückzahlung des Kapitals geschätzt, da der Fonds mehr verteilt hat als seine Einnahmen und Kapitalgewinne. Das bedeutet, dass die Aktionäre einen Teil ihrer Investition zurückerhalten, anstatt Erträge.
Die Leistungskennzahlen des Fonds zeigen eine durchschnittliche jährliche Gesamtrendite auf den NAV von 3,58% über den Zeitraum von 5 Jahren und eine kumulative Gesamtrendite bis heute auf den NAV von 12,84%. Der annualisierte aktuelle Ausschüttungssatz liegt bei 9,13%. Investoren sollten beachten, dass Rückzahlungen des Kapitals nicht unbedingt die Investmentleistung des Fonds widerspiegeln und nicht mit Ertrag oder Einkommen verwechselt werden sollten.
- Fiscal YTD Cumulative Total Return on NAV is 12.84%
- Annualized Current Distribution Rate is 9.13%
- Average Annual Total Return on NAV for the 5-year period is 3.58%
- 100% of the current distribution is estimated to be return of capital
- The fund has distributed more than its income and capital gains
- Net Investment Income contributes only 4.9% to the Fiscal Year-to-Date distribution
Amount of Distribution |
Ex-Date |
Record Date |
Payable Date |
|
August 12, 2024 |
August 12, 2024 |
August 29, 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 |
August 2024 (MTD) |
Fiscal Year-to-Date
|
||||
(Sources) |
Per Share
|
Percentage
|
Per Share
|
Percentage
|
||
Net Investment Income |
$ |
0.000 |
|
$ |
0.022 |
|
Net Realized Short-Term Capital Gains |
|
0.000 |
|
|
- |
|
Net Realized Long-Term Capital Gains |
|
0.000 |
|
|
- |
|
Return of Capital (or other Capital Source) |
|
0.050 |
|
|
0.428 |
|
Total Distribution |
$ |
0.050 |
|
$ |
0.450 |
|
(1) Fiscal year started December 1, 2023. |
||||||
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.
July 31, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240826646276/en/
For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Total Return Fund Inc.
FAQ
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