Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution – Section 19(a) Notice
July 14 2023 - 3:15PM
Business Wire
Virtus Diversified Income & Convertible Fund (NYSE: ACV)
previously announced the following monthly distribution on May 25,
2023:
Ticker
Amount of Distribution
Ex-Date
Record Date
Payable Date
ACV
$0.18
July 12, 2023
July 13, 2023
August 1, 2023
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 provides this estimate of the sources of its
distributions:
Distribution Estimates
July 2023 (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
$
-
0.0%
$
0.019
1.8%
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)
0.180
100.0%
1.061
98.2%
Total Distribution
$
0.180
100.0%
$
1.080
100.0%
(1) Fiscal year started February 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 NAV and not the market price of the Fund’s
shares. Performance figures are not meant to represent individual
shareholder performance.
June 30, 2023
Average Annual Total Return on NAV for the
5-year period (2)
10.97%
Annualized Current Distribution Rate
(3)
10.10%
Fiscal YTD Cumulative Total Return on NAV
(4)
5.40%
Fiscal YTD Cumulative Distribution Rate
(5)
4.21%
(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 Diversified Income & Convertible Fund is a
diversified closed-end fund that seeks to provide total return
through a combination of current income and capital appreciation,
while seeking to provide downside protection against capital loss.
The Fund strives to dynamically allocate across convertibles,
equities, and income-producing securities. The Fund normally
invests at least 50% of total managed assets in convertibles and
has the latitude to write covered call options on the stocks held
in the equity portion. The Fund has a limited term and will
terminate on the first business day following the 15th anniversary
of the effective date of its registration statement, May 22, 2030,
absent Trustee and shareholder approval to amend the limited term
provision of the Fund’s Amended and Restated Agreement and
Declaration of Trust, as provided therein. Virtus Investment
Advisers, Inc. is the investment adviser to the Fund and Voya
Investment Management 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 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 end of
this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20230714755220/en/
Shareholder Services (866) 270-7788
closedendfunds@virtus.com
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