HARTFORD, Conn., Feb. 3, 2014 /PRNewswire/ -- Virtus Total
Return Fund (NYSE: DCA) today announced that it will increase its
quarterly distribution and implement other actions intended to
enhance shareholder value, including the adoption of a level
distribution plan and changes to its investment strategy. The fund
is undertaking these actions to provide a more attractive
distribution rate, increase investment flexibility, and continue
efforts to address the fund's current discount to its net asset
value (NAV).
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Effective with the first quarter of 2014, the fund will increase
its distribution by 67 percent to $0.10 per share from the current quarterly
distribution of $0.06 per share. This
is the second time the fund has increased its distribution in the
past five months; in September 2013,
the fund increased its distribution by 20 percent to $0.06 per share from the prior quarterly
distribution of $0.05 per share. The
increased distribution to $0.10 per
share represents an annualized distribution rate of 10.2 percent
based on the closing market price of $3.94 on January 31,
2014. The first quarter distribution is payable on
April 21, 2014 to shareholders of
record as of April 11, 2014 (ex-date
April 9, 2014).
Concurrent with the increase in the distribution, the fund will
adopt a level distribution plan and seek to maintain a consistent
distribution level of $0.10 per
share. Although the fund will seek to maintain a consistent
quarterly distribution level, the amount of future distributions is
subject to change.
The fund also announced that it intends to implement an options
overlay strategy that will include purchasing and selling puts and
calls with the objective of generating additional income from
premiums, while limiting potential losses.
The Virtus Total Return Fund is a diversified closed-end fund
with an objective of total return, consisting of both capital
appreciation and current income, as determined by the fund's
investment adviser, Virtus Investment Advisers, Inc. For the
twelve-month period ended December 31,
2013, the fund's total return was 15.02% based upon its net
asset value and including $0.21 in
reinvested distributions.
The fund has been managed since December
9, 2011 by Duff & Phelps Investment Management Co. and
Newfleet Asset Management, LLC, both affiliated managers of Virtus
Investment Partners.
An investment in the fund is subject to risk and the fund's
shares may be worth less than what an investor paid for them when
they are sold. Distributions may represent earnings from net
investment income, excess gains taxable as ordinary income or, if
necessary, return of capital. Any portion of the fund's
distributions that is a return of capital does not necessarily
reflect the fund's investment performance and should not be
confused with "yield" or "income." The tax status of the fund's
distributions is determined at the end of the taxable year. The
options strategy may not be successful in its objective of limiting
the risk of loss and could result in increased losses for
investors.
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.
About Duff & Phelps Investment Management
Co.
Duff & Phelps Investment Management is a leader in investing
in real estate investment trusts, infrastructure, and utility
companies and in developing and managing focused investment
strategies for specialized clients, including nuclear
decommissioning trusts. For more information about Duff &
Phelps, visit www.dpimc.com.
About Newfleet Asset Management
Newfleet Asset Management provides comprehensive fixed income
portfolio management in multiple strategies. Newfleet Multi-Sector
Strategies, which manages assets in the Virtus Total Return Fund,
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.
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. For more information visit www.virtus.com.
Forward-Looking Information
This press release contains statements that are, or may be
considered to be, forward-looking statements. All statements that
are not historical facts, including statements about beliefs or
expectations, are "forward-looking statements" within the meaning
of The Private Securities Litigation Reform Act of 1995. These
statements may be identified by such forward-looking terminology as
"expect," "estimate," "plan," "intend," "believe," "anticipate,"
"may," "will," "should," "could," "continue," "project," or similar
statements or variations of such terms. Forward-looking statements
are based on a series of expectations, assumptions and projections;
are not guarantees of future results or performance; and may
involve risks and uncertainty. All forward-looking statements are
as of the date of this release only. The company can give no
assurance that such expectations or forward-looking statements will
prove to be correct. Actual results may differ materially. You are
urged to carefully consider all such factors.
SOURCE Virtus Total Return Fund