Virtus AI & Tech Opportunities Fund Highlights 3 Key Sources in December Distribution Update
The Virtus Artificial Intelligence & Technology Opportunities Fund (NYSE: AIO) recently reaffirmed its commitment to shareholders by disclosing the sources of its December 2024 monthly distribution, offering transparency and valuable insights into its managed distribution strategy. The Fund announced on November 20, 2024, that it would distribute $0.15 per share on December 30, 2024, to shareholders of record as of December 12, 2024. This announcement highlights its dedication to delivering consistent income opportunities through its Managed Distribution Plan.
Key Details of the Distribution
Under the Managed Distribution Plan, the Virtus AI & Tech Opportunities Fund aims to provide shareholders with a stable and predictable income stream. This is achieved by paying distributions from net investment income, realized capital gains, or a combination of the two. When necessary, a portion of the distributions may also include a return of capital.
The primary purpose of this plan is to offer consistent income AI & Tech regardless of short-term market fluctuations or performance. However, shareholders are cautioned that a return of capital is not indicative of the Fund’s investment performance and does not constitute income or yield in the traditional sense.
The Fund has detailed the sources of its December 2024 distribution as follows:
December 2024 Monthly Distribution Breakdown
- Net Investment Income: $0.00 (0.0%)
- Net Realized Short-Term Capital Gains: $0.15 (100.0%)
- Net Realized Long-Term Capital Gains: $0.00 (0.0%)
- Return of Capital: $0.00 (0.0%)
For the fiscal year-to-date (starting February 1, 2024), the distribution sources were allocated as follows:
- Net Investment Income: $0.006 (0.4%)
- Net Realized Short-Term Capital Gains: $0.747 (45.3%)
- Net Realized Long-Term Capital Gains: $0.750 (45.4%)
- Return of Capital: $0.147 (8.9%)
This level of disclosure empowers shareholders to understand the components of their returns and make informed decisions about their investments.
Fund Performance Metrics
The Fund has demonstrated strong performance metrics, reflecting its strategic investment focus on artificial intelligence and technology opportunities. As of November 29, 2024, the following figures were reported:
- Average Annual Total Return on NAV (5-Year): 14.22%
- Annualized Current Distribution Rate: 7.66%
- Fiscal Year-to-Date Cumulative Total Return on NAV: 22.11%
- Fiscal Year-to-Date Cumulative Distribution Rate: 6.38%
These figures underscore the Fund’s ability to generate returns while maintaining its commitment to monthly distributions. The NAV-based performance illustrates the Fund’s growth potential and its effectiveness AI & Tech in navigating market trends within the AI and technology sectors.
Tax Considerations
Shareholders should note that the amounts and sources of distributions provided in this notice are estimates and are not intended for tax reporting purposes. AI & Tech The final tax characterization of the distributions will be detailed in Form 1099-DIV, which shareholders will receive for federal income tax reporting. The actual breakdown may vary depending on the Fund’s investment activities and changes in tax regulations.
Managed Distribution Plan Highlights
The Managed Distribution Plan ensures that shareholders receive consistent distributions, a feature that appeals to income-focused investors. However, if the Fund’s net investment income and realized capital gains fall short of the distribution amount, the difference is drawn from the Fund’s capital.
This strategic approach aims to balance income stability with the flexibility needed to adapt to varying market conditions. Shareholders should not draw conclusions about the Fund’s overall performance solely based AI & Tech on the distribution amount or the terms of the Managed Distribution Plan.
Risks and Investment Outlook
While the Virtus Artificial Intelligence & Technology Opportunities Fund offers a compelling investment strategy, potential investors should be aware of associated risks AI & Tech. The Fund’s focus on artificial intelligence and technology opportunities may involve greater price volatility and exposure to smaller companies with less predictable performance. Additionally, the use of derivatives and leverage introduces unique risks that may amplify gains or losses.
Despite these risks, the Fund’s strong historical performance and commitment to transparency AI & Tech make it a noteworthy option for investors seeking exposure to cutting-edge technology sectors combined with a steady income stream.
Final Thoughts
The Virtus AI & Tech Opportunities Fund’s December 2024 distribution highlights its focus on delivering value and transparency to shareholders. By providing a detailed breakdown of its distribution sources and AI & Tech maintaining a robust Managed Distribution Plan, the Fund continues to demonstrate its commitment to meeting the needs of income-focused investors.
As artificial intelligence and technology remain at the forefront of innovation, the Fund is well-positioned to capitalize on emerging opportunities while offering consistent returns. Investors are encouraged to review the Fund’s prospectus and consult with financial advisors to ensure alignment with their individual investment goals and risk tolerance.
