Amount of Distribution
December 11, 2019
December 12, 2019
December 19, 2019
January 6, 2020
December 31, 2019
January 9, 2020
February 12, 2020
February 13, 2020
February 21, 2020
March 11, 2020
March 12, 2020
March 19, 2020
For record date December 31, 2019, the fund intends to distribute the greater of $0.113 per share or all available net investment income and net short and long term capital gains, in accordance with requirements under the Internal Revenue Code of 1986, as amended. The amount of any supplemental distribution over the $0.113 per share, if any, will be announced on January 2, 2020.
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:
October 2019 (MTD) (2)
Year-to-date (YTD) (1) (2)
Per Share Amount
Percentage of Current Distribution
Per Share Amount
Percentage of Current Distribution
Net Investment Income
Net Realized Short-Term Capital Gains
Net Realized Long-Term Capital Gains
Return of Capital (or other Capital Source)
YTD December 1, 2018 to November 30, 2019
Distribution estimates for October 2019 and Year-to-date represents information for ZTR (formerly known as Virtus Global Dividend & Income Fund Inc.) prior to the reorganization with Virtus Total Return Fund Inc. (ZF) on November 18, 2019. Post-reorganization, the per share distribution amount will remain at the same monthly rate. The strategy and equity subadviser (Duff & Phelps Investment Management Co.) has changed postreorganization to that of ZF. 19a notices starting in December will reflect the combined fund activity.
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.
October 31, 2019 (7)
Average Annual Total Return on NAV for the 5-year period (3)
Current Fiscal YTD Annualized Distribution Rate (4)
YTD Cumulative Total Return on NAV (5)
YTD Cumulative Distribution Rate (6)
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.
Current Fiscal YTD Annualized Distribution Rate is the current distribution rate annualized as a percentage of the Fund's NAV at quarter end.
YTD Cumulative Total Return on NAV is the percentage change in the Fund's NAV from the first day of the year to this quarter end, including distributions paid and assuming reinvestment of those distributions.
YTD Cumulative Distribution Rate is the dollar value of distributions from the first day of the year to this quarter end as a percentage of the Fund's NAV at quarter end.
Table as of October 31, 2019 represents total return and distribution rate for ZF, the performance survivor in the reorganization with ZTR, which took place effective November 18, 2019. 19a notices starting in December will reflect the combined fund activity.
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 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.
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 top of this press release.
About Duff & Phelps Investment Management Co.
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, real estate investment trusts (REITs) and international equity. 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 Inc. 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.
SOURCE Virtus Total Return Fund Inc.