HARTFORD, Conn., May 26, 2020 /PRNewswire/ -- Virtus Total
Return Fund Inc. (NYSE: ZTR) today announced the following
monthly distributions:
Amount of
Distribution
|
Ex-Date
|
Record
Date
|
Payable
Date
|
$0.08
|
June 10,
2020
|
June 11,
2020
|
June 18,
2020
|
$0.08
|
July 10,
2020
|
July 13,
2020
|
July 20,
2020
|
$0.08
|
August 12,
2020
|
August 13,
2020
|
August 20,
2020
|
$0.08
|
September 10,
2020
|
September 11,
2020
|
September 18,
2020
|
This distribution represents a per annum distribution rate of
approximately 11.24% based on the market price of the fund's shares
of $8.54 as of the close of the New
York Stock Exchange on Friday, May 22,
2020 and approximately 11.64% based on the fund's net asset
value (NAV) of $8.25 as of the same
date.
The fund's monthly distribution rate has been reduced by
$0.033 per share effective with the
June 18, 2020 distribution. As a
result of market events during the first quarter of 2020, including
the rapid and significant decline in the equities markets, the
distribution rate was reduced in order to provide a distribution
rate more sustainable in the current environment.
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
|
April 2020
(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
|
$
0.001
|
1.1%
|
$
0.096
|
17.0%
|
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)
|
0.112
|
98.9%
|
0.469
|
83.0%
|
Total
Distribution
|
$
0.113
|
100.0%
|
$
0.565
|
100.0%
|
(1) Fiscal year
starts December 1, 2019.
|
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.
April 30,
2020
|
|
|
Average Annual
Total Return on NAV for the 5-year period
(2)
|
3.02%
|
|
Current Fiscal YTD
Annualized Distribution Rate (3)
|
16.40%
|
|
Fiscal YTD
Cumulative Total Return on NAV (4)
|
(14.67)%
|
|
Fiscal YTD
Cumulative Distribution Rate (5)
|
6.83%
|
|
(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
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 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 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
Virtus Total Return Fund Inc. is a diversified closed-end
fund whose investment objective is capital appreciation, with
income as a secondary objective. The fund also pursues an options
overlay strategy that seeks to generate additional income. Virtus
Investment Advisers, Inc. has been the investment adviser, and Duff
& Phelps Investment Management Co. and Newfleet Asset
Management, LLC have been subadvisers to the fund since
December 9, 2011. Rampart Investment
Management Company, LLC has been a subadviser since
October 15, 2018. Performance and
characteristics prior to December 9,
2011 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 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. The options
overlay strategy may not be successful in achieving its objective
of increasing distributable income while limiting the risk of loss
and, in periods of significant moves in the S&P 500® Index, has
resulted in, and in the future, may result in, losses for
investors. Shares of closed-end funds may trade at a discount to
their net asset value. For more information about each 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.
About Duff & Phelps Investment Management
Duff & Phelps Investment Management Co. has more than 35
years of experience managing investment portfolios, including
institutional separate accounts and open- and closed-end funds
investing in utilities, master limited partnerships (MLPs),
infrastructure and real estate investment trusts (REITs). For
more information, visit www.dpimc.com.
About Newfleet Asset Management
Newfleet Asset Management, an affiliated manager of Virtus
Investment Partners, provides comprehensive fixed income portfolio
management in multiple strategies. The Newfleet Multi-Sector
Strategies team that manages the Virtus Total Return Fund leverages
the knowledge and skill 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. For more information,
visit www.newfleet.com.
About Rampart Investment Management
Rampart Investment Management is an affiliated manager of Virtus
Investment Partners specializing in option strategies. A registered
investment adviser since 1983, Rampart manages client positions and
portfolios using domestic and international index and equity
options.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The
company provides investment management products and services
through its affiliated managers and select subadvisers, each with a
distinct investment style, autonomous investment process, and
individual brand. For
more information, visit www.virtus.com.
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SOURCE Virtus Total Return Fund Inc.