HARTFORD, Conn., Jan. 3, 2017 /PRNewswire/ -- Virtus Global
Dividend & Income Fund Inc. (NYSE: ZTR) today announced that it
has declared a supplemental distribution of $0.50 per share of long term capital gains to
meet requirements under the Internal Revenue Code of 1986, as
amended.
Type
|
Amount of
Distribution
|
Declaration
Date
|
Record
Date
|
Payable
Date
|
Long Term
Gain
|
$0.500
|
January 3,
2017
|
December 29,
2016
|
January 10,
2017
|
In addition, the fund previously announced the following monthly
income distribution:
Type
|
Amount of
Distribution
|
Declaration
Date
|
Record
Date
|
Payable
Date
|
Income
|
$0.113
|
December 2,
2016
|
December 29,
2016
|
January 10,
2017
|
The ex-dividend date for both distributions will be January 5, 2017. The fund also announced today
the final results of its tender offer; tendered shares will be
entitled to these distributions. Thus, shareholders as of the
record date will receive an aggregate distribution of $0.613 per share on January 10, 2017.
The fund's total distributions for the 2016 calendar year were
$1.774 per share, including this
special distribution as well as the fund's monthly distributions.
That is an annualized distribution rate of 13.9 percent, based on
the fund's closing share price of $12.77 on December 30,
2016.
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 provided this estimate of the sources of the
distributions:
Distribution
Estimates
|
December 2016
(MTD)
|
Year-to-date
(YTD) (1)
|
(Sources)
|
Per
Share
Amount
|
Percentage
of Current
Distribution
|
Per Share
Amount
|
Percentage
of Current
Distribution
|
Net Investment
Income
|
$0.022
|
3.6%
|
$0.295
|
16.6%
|
Net Realized Foreign
Currency Gains
|
-
|
0.0%
|
-
|
0.0%
|
Net Realized
Short-Term Capital Gains
|
-
|
0.0%
|
-
|
0.0%
|
Net Realized
Long-Term Capital Gains
|
0.591
|
96.4%
|
1.479
|
83.4%
|
Return of Capital (or
other Capital Source)
|
-
|
0.0%
|
-
|
0.0%
|
Total
Distribution
|
$0.613
|
100.0%
|
$1.774
|
100.0%
|
(1) YTD January 12,
2016 to January 11, 2017. (The distribution paid on January
11, 2016 was reportable for tax on Form 1099 in 2015)
|
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.
December 30,
2016
|
|
|
Average Annual
Total Return on NAV for the 5-year period ended this quarter
(2)
|
6.49%
|
|
Current Fiscal YTD
Annualized Distribution Rate (3)
|
10.62%
|
|
YTD Cumulative
Total Return on NAV (4)
|
3.74%
|
|
YTD Cumulative
Distribution Rate (5)
|
13.89%
|
|
(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)
|
Current Fiscal YTD
Annualized Distribution Rate is the current distribution rate
(excluding the supplemental gain) annualized as a percentage of the
fund's NAV at month end.
|
|
(4)
|
YTD Cumulative Total
Return on NAV is the percentage change in the fund's NAV from the
first day of the year to this month end, including distributions
paid and assuming reinvestment of those distributions.
|
|
(5)
|
YTD Cumulative
Distribution Rate is the dollar value of distributions from the
first day of the 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 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 will send shareholders a Form 1099-DIV for
the calendar year that will tell shareholders what distributions to
report for federal income tax purposes.
About the Fund
The Virtus Global Dividend & Income Fund is a diversified
closed-end fund that seeks to generate total return, consisting of
capital appreciation and income. It currently targets an allocation
of 60 percent equity securities and 40 percent fixed income. The
equity allocation is invested exclusively in what the managers
believe are high-quality companies within the high yielding global
equity universe. The fixed income allocation is invested primarily
in intermediate-term debt securities across 14 fixed income
sectors. The fund also pursues an options income strategy whereby
it purchases and sells out-of-the money puts and calls, creating an
options spread.
Virtus Investment Advisers has been the investment adviser to
the fund and Kayne Anderson Rudnick
and Newfleet Asset Management have been subadvisers since
September 7, 2016. Performance and
characteristics prior to that date were attained by the previous
adviser using a different investment strategy.
For more information on the fund, contact shareholder services
at (866) 270-7788, by email at closedendfunds@virtus.com, or
through the closed end fund section on the web at
www.virtus.com.
Fund Risks
An investment in the fund is subject to risk. The fund's shares
may be worth less than what an investor paid for them when they are
sold. The options strategy may not be successful in its objective
of increasing distributable income while limiting the risk of loss
and could result in increased losses for investors.
About Kayne Anderson
Rudnick
Kayne Anderson Rudnick (KAR) believes that superior
risk-adjusted returns may be achieved through investment in
high-quality companies with market dominance, excellent management,
financial strength, and consistent growth, purchased at reasonable
prices. KAR's investment strategy is to build a portfolio of
companies that have strong, consistent growth with low business and
financial risk, and hold these companies over the long term based
on its conviction that the investment returns of the portfolio will
mirror the financial results of these companies.
About Newfleet Asset Management
Newfleet Asset Management provides comprehensive fixed income
portfolio management in multiple strategies. Newfleet leverages the
knowledge and skill of a team of investment professionals with
expertise in every sector of the bond market, including evolving,
specialized, and out-of-favor sectors. The team employs active
sector rotation and disciplined risk management to portfolio
construction, avoiding interest rate bets, and remaining duration
neutral to each strategy's stated benchmark.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/virtus-global-dividend--income-fund-inc-declares-supplemental-distributions-and-discloses-sources-of-distribution---section-19a-notice-300385067.html
SOURCE Virtus Global Dividend & Income Fund Inc.