DALLAS, May 28, 2021 /PRNewswire/ -- As previously
announced, Vertical Capital Income Fund (NYSE: VCIF) paid a monthly
distribution of $0.0786 per share to
all shareholders of record as of May 18,
2021, pursuant to the Fund's managed distribution plan (the
"Plan").
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As a general matter, the amount of the Fund's distributable
income depends on the aggregate gains and losses realized by the
Fund during the entire year. Distributions may consist of net
investment income, capital gains and return of capital but the
character of these distributions cannot be determined until after
the end of the Fund's fiscal year. However, under the Investment
Company Act of 1940, as amended, and the terms of the Plan, the
Fund may be required to indicate the source of each distribution to
its shareholders. The following table sets forth the estimated
sources of the current distribution, and the cumulative
distributions paid during the 2021 fiscal year to date from the
sources indicated in the table. All amounts are expressed on a per
share basis and as a percentage of the distribution amount.
Source
|
Current Distribution Per
Share
|
Breakdown
of Current Distribution Per Share (%)
|
Fiscal
YTD Cumulative Distributions
Per Share
|
Breakdown of
Fiscal
YTD Cumulative Distributions
Per Share (%)
|
Net
Investment Income
|
$0.0264
|
33.59%
|
$0.3156
|
39.86%
|
Net Realized
Short- Term Capital
Gains
|
$0.0073
|
9.29%
|
$0.0291
|
3.67%
|
Net Realized
Long-
Term Capital Gains
|
$0.0449
|
57.12%
|
$0.4410
|
55.69%
|
Return of Capital
or Other Capital
Source(s)
|
$0.0000
|
0.00%
|
$0.0062
|
0.78%
|
Total
Distributions
|
$0.0786
|
100.00%
|
$0.7919
|
100.00%
|
(1) 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 Distribution Policy.
(2) The amounts and sources of distributions reported in this
19(a) Notice are only estimates and are not being provided for tax
reporting purposes. The actual amounts and sources of the
amounts for tax reporting purposes will depend upon 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 you a Form 1099-DIV for the calendar year that will tell
you how to report these distributions for federal income tax
purposes.
(3) The Fund estimates that it has distributed more than its
income and net realized 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."
Average annual total
return at NAV for the 5-year period ended on April 30,
20211
|
4.95%
|
Annualized current
distribution rate expressed as a percentage of NAV as of April 30,
20212
|
7.97%
|
Cumulative total
return at NAV for the fiscal year through April 30,
20213
|
4.35%
|
Cumulative fiscal
year to date distribution rate as a percentage of NAV as of April
30, 20214
|
6.69%
|
1 Average annual total return at NAV represents the
change in NAV of the Fund, with all distributions reinvested, for
the 5-year period ended on April 30,
2021.
2 The annualized current distribution rate is the
cumulative distribution rate annualized as a percentage of the
Fund's NAV as of April 30, 2021.
3 Cumulative total return at NAV is the percentage
change in the Fund's NAV for the period from the beginning of its
fiscal year to April 30, 2021
including distributions paid and assuming reinvestment of those
distributions.
4 Cumulative fiscal year distribution rate for the
period from the beginning of its fiscal year to April 30, 2021 measured on the dollar value of
distributions in the year-to-date period as a percentage of the
Fund's NAV as of April 30, 2021.
The Plan will be subject to periodic review by the Board, and
the Board may amend the terms of the Plan including amending the
annual rate of payment or may terminate the Plan at any time
without prior notice to the Fund's shareholders. The Fund's
distribution rate may be affected by numerous factors, including
changes in realized and projected market returns, Fund performance,
and other factors. There can be no assurance that an
unanticipated change in market conditions or other unforeseen
factors will not result in a change in the Fund's distribution rate
at a future time. The amendment or termination of the Plan
could have an adverse effect on the market price of the Fund's
shares. The public health crises caused by the COVID-19
outbreak may exacerbate other pre-existing political, social and
economic risks to which the Fund is exposed. The duration of
the COVID-19 outbreak and its effects cannot be determined with
certainty. In order to comply with the requirements of
Section 19 of the Investment Company Act of 1940, and an exemptive
order received by the Fund from the Securities and Exchange
Commission, the Fund will provide its shareholders of record on
each distribution date with a 19(a) Notice and issue an
accompanying press release disclosing the sources of its
distribution payment when a distribution includes anything other
than net investment income. This information will be
forthcoming later this month.
The amounts and sources of distributions reported in 19(a)
Notices are only estimates and are not provided for tax reporting
purposes. The actual amounts and sources of the amounts for tax
reporting purposes will depend upon the Fund's investment
experience during its full 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 them how to
report these distributions for federal income tax purposes.
Information on the Fund's 19(a) Notices, if any, can be found at
www.vertical-incomefund.com. The final determination of the
source and tax characteristics of all distributions in 2021 will be
made after the end of the year.
Shares of closed-end funds often trade at a discount from
their net asset value. The market price of Fund shares may vary
from net asset value based on factors affecting the supply and
demand for shares, such as Fund distribution rates relative to
similar investments, investors' expectations for future
distribution changes, the clarity of the Fund's investment strategy
and future return expectations, and investors' confidence in the
underlying markets in which the Fund invests. Fund shares are
subject to investment risk, including possible loss of principal
invested. No Fund is a complete investment program and you may lose
money investing in a Fund. An investment in the Fund may not be
appropriate for all investors. Before investing, prospective
investors should consider carefully the Fund's investment
objective, risks, charges and expenses. For further details,
please visit Vertical Capital Income Fund's website at
vertical-incomefund.com.
This release contains forward-looking statements relating to
the business and financial outlook of Vertical Capital Income Fund
that are based on the Fund's current expectations, estimates,
forecasts and projections and are not guarantees of future
performance. There is no assurance that the Fund will achieve its
investment objective. Actual results may differ materially from
those expressed in these forward-looking statements, and you should
not place undue reliance on any such statements. A number of
important factors could cause actual results to differ materially
from the forward-looking statements contained in this
release.
About Vertical Capital Income Fund
Vertical Capital Income Fund is an NYSE listed closed-end fund
that primarily invests in residential whole mortgage loans and
residential whole loans secured by deeds of trust. The
investment objective of the Fund is to seek income.
About Oakline Advisors, LLC
Oakline Advisors, LLC is the adviser to Vertical Capital Income
Fund. Founded in 2013, Oakline Advisors, LLC is an
SEC-registered investment adviser that specializes in the
residential whole loan market. It is a wholly owned subsidiary of
Dallas, TX-based Behringer.
Since its inception in 1989, Behringer, together with its
affiliates, has raised equity of more than $6 billion in assets through public and private
fund structures. For more information about Oakline and
Behringer please visit their respective websites at
oaklineadvisors.com and behringerinvestments.com.
Fund shares are identified by CUSIP 92535C104
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SOURCE Vertical Capital Income Fund