Feb. 3, 2014
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).
Effective with the first quarter of 2014, the fund will increase its distribution by 67 percent to
per share from the current quarterly distribution of
per share. This is the second time the fund has increased its distribution in the past five months; in
, the fund increased its distribution by 20 percent to
per share from the prior quarterly distribution of
per share. The increased distribution to
per share represents an annualized distribution rate of 10.2 percent based on the closing market price of
January 31, 2014
. The first quarter distribution is payable on
April 21, 2014
to shareholders of record as of
April 11, 2014
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
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.