Understanding Distribution Sources for Virtus Total Return Fund
Distribution Overview of Virtus Total Return Fund Inc.
Virtus Total Return Fund Inc. (NYSE: ZTR) has shared important details regarding its distribution strategy and projections. This fund is utilizing a Managed Distribution Plan to ensure steady and predictable payment patterns to its shareholders.
Monthly Distribution Details
The fund announced a monthly distribution amounting to $0.05 per share. It is essential for shareholders to stay informed about significant dates related to their investments, particularly the Ex-Date and Payable Date, which play a crucial role in the functioning of these distributions. The Ex-Date is noted as September 12, 2025, while the payments will be issued on September 29, 2025.
Insight into the Distribution Sources
The distributions that shareholders receive may come from various sources such as net investment income, capital gains, or may even involve a return of capital. For instance, should the total income and gains fall short of the distribution requirements, the fund will utilize its assets to cover the remainder, highlighting a potential return of capital. Shareholders are encouraged to view these distributions as they reflect the fund's objectives rather than its actual investment performance.
Return of Capital Explained
Understanding the notion of return on capital is vital. When part of the capital you initially invested is paid back, it could be categorized as a return of capital. This situation doesn’t directly suggest the performance metrics of the fund and might confuse yield with income.
Projected Source of Distributions
As for the fund’s distribution estimates for September 2025, it is confirmed that some of it stems from net investment income amounting to about $0.013 per share, which represents 26% of the distribution. Another portion may come from short-term capital gains, although they are currently estimated at $0.000, equating to 0% of the current distribution. Long-term capital gains will contribute approximately $0.027, representing 54% of the total.
Performance and Distribution Rates
Recent metrics indicate that the average annual total return on the NAV (Net Asset Value) for the five years preceding leads to 7.53%. Meanwhile, the current annualized distribution rate sits at approximately 8.53%, suggesting investors could anticipate returns on their investments. Tracking the fiscal year-to-date cumulative total return helps investors understand how well the fund has performed relative to its benchmarks.
About Virtus Total Return Fund Inc.
This diversified closed-end fund aims to achieve capital appreciation, with income acting as an essential secondary objective. Guided by the expertise of Virtus Investment Advisers, LLC, the fund incorporates various strategies, with backing from subadvisors such as Duff & Phelps Investment Management Co. and Newfleet Asset Management, to enhance diversified portfolio management.
Contact Information for Shareholders
For any inquiries regarding investment details or shareholder concerns, the fund encourages contacting its shareholder services team at (866) 270-7788 or through the email closedendfunds@virtus.com. Ensuring that all shareholder queries are promptly addressed remains one of the fund's commitments.
Frequently Asked Questions
What is the distribution amount for Virtus Total Return Fund Inc.?
The distribution amount is set at $0.05 per share for the upcoming payment period.
When will the payments be issued to shareholders?
Payments will be made on September 29, 2025, after the Ex-Date of September 12, 2025.
What sources provide funding for the fund's distributions?
Distributions can come from net investment income, capital gains, or a return of capital.
How is the return of capital defined within the fund?
A return of capital occurs when portions of your initial investment are paid back to you, which may not necessarily indicate the fund's performance.
How can shareholders find more information about the fund?
Shareholders can contact shareholder services directly or reach out through the dedicated shareholder email at closedendfunds@virtus.com for additional details.
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