VIRTUS GLOBAL DIVIDEND & INCOME FUND INC. 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 Declaration Date Record Date Payable Date
Distribution
--- ------------
Long Term $0.500 January 3, 2017 December 29, 2016 January 10, 2017
Gain
----
In addition, the fund previously announced the following monthly income distribution:
Type Amount of Declaration Date Record Date Payable Date
Distribution
--- ------------
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)
---------------------- ------------------ ---------------------
Per Share Percentage Per Share Percentage
of Current Amount
Amount Distribution of Current
Distribution
(Sources)
-------- ---
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.
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SOURCE Virtus Global Dividend & Income Fund Inc.
