Virtus Global Multi-Sector Income Fund Declares a Special Distribution

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Jan 02, 2015, 12:53 ET

HARTFORD, Conn., Jan. 2, 2015 /PRNewswire/ -- Virtus Global Multi-Sector Income Fund (NYSE: VGI), a diversified closed-end fund, today announced that it has declared a supplemental distribution of $0.250 per share for long term capital gains to meet requirements under the Internal Revenue Code of 1986, as amended.

The special distribution is attributable, in part, to the success of the fund's option overlay strategy that was implemented earlier this year. Newfleet Asset Management, the subadviser to VGI, utilizes an option overlay strategy that purchases and sells puts and calls with the objective of monetizing the volatility inherent in the equity market.

Type	Amount of Distribution	Declaration Date	Record Date	Payable Date
Long Term Gain	$0.250	January 2, 2015	December 31, 2014	January 9, 2015

In addition, the fund previously announced the following monthly income distribution:

Type	Amount of Distribution	Declaration Date	Record Date	Payable Date
Income	$0.130	December 15, 2014	December 31, 2014	January 9, 2015

The ex-dividend date for both distributions will be January 6, 2015.

VGI's total distribution for the 2014 tax year was $1.73, including this special distribution as well as the fund's monthly distributions. That is an annualized distribution rate of 10.9 percent, based on the fund's closing share price of $15.85 on December 31, 2014.

Distributions may represent earnings from net investment income, capital gains, or if necessary, return of capital. In addition, distributions may include net realized long-term capital gains as permitted by the Investment Company Act of 1940. There is no guarantee that the fund will realize capital gains in any given year. Distributions are subject to re-characterization for tax purposes after the end of the fiscal year. All shareholders with taxable accounts will receive written notification regarding the components and tax treatment for distributions via Form 1099-DIV. Distributions from the fund are generally subject to federal income taxes.

The Virtus Global Multi-Sector Income Fund seeks to maximize current income while preserving capital by giving investors an opportunity to benefit from broadly diversified holdings across the major domestic and international fixed-income sectors. It is managed by Newfleet Asset Management, LLC, an affiliated manager of Virtus Investment Partners, Inc. that specializes in multi-sector fixed income investing.

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. The options strategy may not be successful in its objective of increasing distributable income while 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 [email protected], or through the closed end fund section on the web at www.virtus.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 team that manages the Virtus Global Multi-Sector Income Fund 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, and will utilize option overlay strategies to attempt to generate additional income for the fund.

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.

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SOURCE Virtus Investment Partners