Virtus AI and Technology Opportunity Fund reveals distribution sources

Hartford, Connecticut.And January 19, 2023 /PRNewswire/ — Virtus Artificial Intelligence & Technology Opportunity Fund (NYSE:AIO) previously announced the following monthly dividend on… December 2, 2022:

distribution amount

previous date

date of registration

Payment Date

$0.15

January 19, 2023

January 20, 2023

February 1, 2023

Under the terms of the managed distribution plan, the fund will seek to maintain a constant distribution level that may be paid in part or in full from net investment income and capital gains realized, or a combination thereof. However, shareholders should note that if the fund’s total net investment income and realized net capital gains are less than the distribution level, the difference will be distributed from the fund’s assets and will constitute a return to the shareholder’s capital. No conclusions about the fund’s investment performance should be drawn from the amount of such distribution or from the terms of the fund’s managed distribution plan.

The fund estimates that it has distributed more than its income and capital gains. So, part of your distribution may be a return of principal. A return of capital might occur, for example, when some or all of the money you invested in the fund is returned to you. Capital distribution return does not necessarily reflect the fund’s investment performance and should not be confused with “return” or “income”.

The Fund provided this estimate for the sources of distributions:

distribution estimates

January 2023 (million dinars)

fiscal year to date
(YTD)(1)

(Sources)

per share
amount

percentage
from the current
distribution

per share
amount

percentage
from the current
distribution

net investment income

dollar –

0.0%

dollar –

0.0%

Net realized short-term capital gains

0.0%

0.495

27.5%

Net realized long-term capital gains

0.0%

0.887

49.3%

Return on principal (or other source of capital)

0.150

100.0%

0.418

23.2%

aggregate distribution

$0.150

100.0%

$1,800

100.0%

(1)

The fiscal year began February 1, 2022

Information on fund performance and distribution rates is provided below. Please note that all performance figures are based on the Fund’s NAV and not the market price of the Fund’s shares. Performance figures are not intended to represent the performance of individual contributors.

December 30, 2022



Average annual total return on net asset value for a 5-year period (2)

10.56%


Annual current distribution rate (3)

9.42%


The total cumulative financial return to date on the net asset value (4)

-14.35%


The cumulative financial distribution rate to date (5)

8.63%


(2)

Average annual total return over net asset value is the compound annual return for the five-year period. It reflects the change in the fund’s net asset value and the reinvestment of all distributions. The AIO started on October 31, 2019, so the proceeds represent the beginning returns to date.

(3)

The annual current distribution rate is the annual current distribution rate as a percentage of the fund’s net asset value at the end of the month.

(4)

The total cumulative financial return to date on the net asset value is the percentage change in the net asset value of the fund from the first day of the fiscal year to the end of that month, including the dividends paid and the assumption that those distributions are reinvested.

(5)

The fiscal cumulative distribution rate to date is the dollar value of the distributions from the first day of the fiscal year through the end of that month as a percentage of the fund’s net asset value at the end of the month.

The amounts and sources of distributions in this notice are estimates only and are not provided for tax reporting purposes. The actual amounts and sources of distributions for tax purposes 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 broker will send you a 1099-DIV form for the calendar year that will tell you which distributions must be reported for federal income tax purposes.

about the fund

The Virtus AI & Technology Opportunity Fund is a diversified, closed-end fund that seeks to provide total return through a combination of current income, current earnings and long-term capital appreciation. A multi-asset approach based on fundamental research is used, dynamically allocating attractive segments of the company’s debt and equity in order to offer an attractive risk/return profile. Virtus Investment Advisers, Inc. She is the fund’s investment advisor and Voya Investment Management is its sub-adviser.

For more information about the fund, contact Shareholder Services at (866) 270-7788, via email at [email protected]or through the Closed Funds section of Virtus.com.

Fund risks
An investment in the Fund is subject to risks, including the risk of possible loss of principal. The value of the Fund’s shares when sold may be less than what the investor paid for them. Shares of closed-end funds may be traded at a premium or at a discount to their net asset value. For more information about the fund’s investment objectives 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 indicated at the end of this press release.

Source: Virtus Fund for Artificial Intelligence and Technology Opportunities

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