PR Newswire | Dec 17, 2021 09:28AM EST

Distribution Plan, Increases Monthly Distribution to $0.18/Share

12/17 08:27 CST

Virtus AllianzGI Diversified Income & Convertible Fund Institutes Managed Distribution Plan, Increases Monthly Distribution to $0.18/Share HARTFORD, Conn., Dec. 17, 2021

HARTFORD, Conn., Dec. 17, 2021 /PRNewswire/ -- Virtus AllianzGI Diversified Income & Convertible Fund (NYSE: ACV), a diversified closed-end fund, today announced that it will institute a managed distribution plan effective with the distribution payable February 1, 2022. Coincident with the adoption of the plan, the Fund will raise its monthly distribution rate to $0.18 per share, an 8% increase from the distribution of $0.167 per share payable January 3, 2022. The increased distribution represents an annualized distribution rate of 6.3% based on the closing market price of $34.21 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 monthly distributions:

TickerAmount of DistributionEx-Date Record Date Payable Date

ACV $0.18 January 12, 2022 January 13, 2022 February 1, 2022

ACV $0.18 February 10, 2022February 11, 2022March 1, 2022

ACV $0.18 March 10, 2022 March 11, 2022 April 1, 2022

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 AllianzGI Diversified Income & Convertible Fund is a diversified closed-end fund that seeks to provide total return through a combination of current income and capital appreciation, while seeking to provide downside protection against capital loss. The Fund normally invests at least 50% of total managed assets in convertibles. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and Allianz Global Investors 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 Allianz Global Investors

Allianz Global Investors or AllianzGI is a leading active asset manager with over 750 investment professionals in 25 offices worldwide and manages assets for individuals, families, and institutions. The investment team has extensive experience managing closed-end funds and a differentiated, multi-asset approach based on fundamental research designed to dynamically allocate across convertible securities and equities.

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 AllianzGI Diversified Income & Convertible Fund