Virtus Diversified Income & Convertible Fund Discloses Sources of Distribution – Section 19(a) Notice
15 September 2023 - 6:15AM
Business Wire
Virtus Diversified Income & Convertible Fund (NYSE: ACV)
previously announced the following monthly distribution on August
31, 2023:
Ticker
Amount of Distribution
Ex-Date
Record Date
Payable Date
ACV
$0.18
September 8, 2023
September 11, 2023
October 2, 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:
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.
Distribution Estimates
September 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
1.3
%
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
%
1.421
98.7
%
Total Distribution
$
0.180
100.0
%
$
1.440
100.0
%
(1) Fiscal year started February 1, 2023.
August 31, 2023
Average Annual Total Return on
NAV for the 5-year period (2)
9.54%
Annualized Current Distribution
Rate (3)
10.27%
Fiscal YTD Cumulative Total
Return on NAV (4)
5.45%
Fiscal YTD Cumulative
Distribution Rate (5)
5.99%
(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 approval by the Fund’s Board of Trustees to extend the
Fund’s term by up to 12 months. 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 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 end of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20230914701175/en/
Shareholder Services (866) 270-7788
closedendfunds@virtus.com
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