HARTFORD, Conn., Dec. 17, 2021 /PRNewswire/ -- Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ), a diversified closed-end fund, today announced that it will institute a managed distribution plan effective with the quarterly distribution payable March 25, 2022. Coincident with the adoption of the plan, the Fund will raise its quarterly distribution rate to $0.245 per share, a 9% increase from the quarterly distribution of $0.225 per share payable on January 7, 2022. The increased distribution represents an annualized distribution rate of 6.2% based on the closing market price of $15.73 on December 16, 2021.
The Fund is undertaking these actions as part of its ongoing efforts to enhance shareholder value by both seeking to provide a more attractive distribution rate and furthering its efforts to reduce the current discount to net asset value at which its shares currently trade.
The Fund announced the following quarterly distribution:
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Ticker
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Amount of Distribution
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Ex-Date
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Record Date
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Payable Date
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NFJ
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$0.245
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March 11, 2022
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March 14, 2022
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March 25, 2022
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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 amounts 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 Dividend, Interest & Premium Strategy Fund is a diversified closed-end fund that seeks current income and gains, with long-term capital appreciation as a secondary objective. The Fund will generally invest approximately 75% of its total assets in equity securities and approximately 25% in convertible securities. The Fund will employ an option strategy of writing (selling) covered call options on equity securities held in the Fund. The equity portion of the Fund generally invests in U.S. equities and American depositary receipts (ADRs) with attractive quality characteristics, shareholder yield, and consistent financial output. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and NFJ Investment Group is its subadviser.
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 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 NFJ Investment Group
NFJ Investment Group, an affiliated manager of Virtus Investment Partners, is a global value equity manager with a rich heritage and deep roots in Dallas, dating to 1989. NFJ is unwavering in its commitment to investing at the intersection of value, quality, and shareholder yield, seeking to identify companies with the strongest prospects for returning capital to shareholders and with low market expectations.
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 virtus.com.
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SOURCE Virtus Dividend, Interest & Premium Strategy Fund
