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Virtus Total Return Fund (NYSE: ZTR) announced monthly distributions of $0.05 per share for July and August 2024. The ex-date and record date for both months are set for the 11th and 12th respectively, with payments on the 30th and 29th. These distributions may come from net investment income, capital gains, or the fund’s assets, potentially returning shareholder capital. Estimated sources for May 2024 show 100% return of capital. Performance data includes a 5-year average annual total return on NAV of 3.21%, a fiscal YTD cumulative total return on NAV of 7.00%, and an annualized current distribution rate of 9.46%. Actual tax reporting details will be provided with Form 1099-DIV.
Positive
- Monthly distributions of $0.05 per share for July and August 2024.
- Annualized current distribution rate is 9.46%.
- Fiscal YTD cumulative total return on NAV is 7.00%.
- 5-year average annual total return on NAV is 3.21%.
Negative
- 100% of the May distribution is estimated to be a return of capital.
- The Fund may distribute capital if net investment income and capital gains are insufficient.
- Return of capital may indicate the fund’s distributions exceed its income and capital gains.
- Net investment income for the fiscal YTD is only 7.3% of the current distribution.
HARTFORD, Conn.–(BUSINESS WIRE)– Virtus Total Return Fund Inc. (NYSE: ZTR) today announced the following monthly distributions:
|
Amount of Distribution |
Ex-Date |
Record Date |
Payable Date |
|
$0.05 |
July 11, 2024 |
July 11, 2024 |
July 30, 2024 |
|
$0.05 |
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 previously provided this estimate of the sources of the distributions:
|
Distribution Estimates |
May 2024 (MTD) |
Fiscal Year-to-Date (YTD) (1) |
||||||||
|
(Sources) |
Per Share Amount |
Percentage |
Per Share |
Percentage |
||||||
|
Net Investment Income |
$ |
0.000 |
0.0 |
% |
$ |
0.022 |
7.3 |
% |
||
|
Net Realized Short-Term Capital Gains |
|
0.000 |
0.0 |
% |
|
– |
0.0 |
% |
||
|
Net Realized Long-Term Capital Gains |
|
0.000 |
0.0 |
% |
|
– |
0.0 |
% |
||
|
Return of Capital (or other Capital Source) |
|
0.050 |
100.0 |
% |
|
0.278 |
92.7 |
% |
||
|
Total Distribution |
$ |
0.050 |
100.0 |
% |
$ |
0.300 |
100.0 |
% |
||
|
(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.
|
May 31, 2024 |
|
||
|
Average Annual Total Return on NAV for the 5-year period (2) |
3.21 |
% |
|
|
Annualized Current Distribution Rate (3) |
9.46 |
% |
|
|
Fiscal YTD Cumulative Total Return on NAV (4) |
7.00 |
% |
|
|
Fiscal YTD Cumulative Distribution Rate (5) |
4.73 |
% |
|
|
(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/20240606737593/en/
For Further Information:
Shareholder Services
(866) 270-7788
Source: Virtus Total Return Fund Inc.
FAQ
What are the monthly distribution amounts for ZTR in July and August 2024?
The monthly distribution amounts for ZTR in July and August 2024 are $0.05 per share.
What is the ex-date for ZTR’s distributions in July and August 2024?
The ex-date for ZTR’s distributions in July and August 2024 is July 11, 2024, and August 12, 2024, respectively.
How is ZTR financing its distributions?
ZTR’s distributions may come from net investment income, realized capital gains, or the fund’s assets, which may include a return of shareholder capital.
What is the estimated source of ZTR’s May 2024 distribution?
The estimated source of ZTR’s May 2024 distribution is 100% return of capital.
What is ZTR’s fiscal YTD cumulative total return on NAV?
ZTR’s fiscal YTD cumulative total return on NAV is 7.00%.
What is ZTR’s 5-year average annual total return on NAV?
ZTR’s 5-year average annual total return on NAV is 3.21%.
What is the annualized current distribution rate for ZTR?
The annualized current distribution rate for ZTR is 9.46%.
