Virtus Artificial Intelligence & Technology Opportunities Fund Announces Special Year-End Distribution and Discloses Sources of Distribution - Section 19(a) Notice
MWN-AI** Summary
Virtus Artificial Intelligence & Technology Opportunities Fund (NYSE: AIO) has announced a special year-end distribution for its common shareholders, amounting to $1.191 per share. This distribution is scheduled for an ex-date of December 29, 2025, with the payment made on January 9, 2026. The decision for this additional distribution aligns with the Fund's objective to manage federal tax requirements while ensuring that shareholders receive consistent returns.
In addition to this special distribution, the Fund had previously announced a regular monthly distribution of $0.15, with an ex-date of December 11, 2025, payment occurring on December 30, 2025. The Fund employs a Managed Distribution Plan aimed at sustaining a stable distribution level, which may derive from net investment income, realized capital gains, or a mixture of both.
The sources of the special distribution have been detailed, indicating that it consists solely of net realized long-term capital gains, accounting for 100% of this amount. Meanwhile, the regular monthly distribution is composed of 1.3% from net investment income and 56.7% from net realized short-term capital gains.
In terms of performance metrics, the Fund reports an average annual total return of 9.87% over five years and a fiscal year-to-date cumulative total return of 14.37%. The annualized current distribution rate stands at 7.15%, with a cumulative distribution rate of 10.68%.
Investors are encouraged to consider potential risks associated with the Fund, including the possibility of share values fluctuating below the original investment. Ultimately, further details regarding the Fund's performance and investment strategies can be accessed through its annual report and investor communications, reinforcing its commitment to transparency and shareholder engagement.
MWN-AI** Analysis
The recent announcement from the Virtus Artificial Intelligence & Technology Opportunities Fund (NYSE: AIO) regarding a special year-end distribution of $1.191 per share is certainly noteworthy for current and prospective investors. This distribution, set to be paid on January 9, 2026, comes alongside regular monthly distributions, illustrating the Fund's commitment to manage federal tax requirements effectively.
Investors should consider the distribution sources, which primarily consist of short- and long-term capital gains. Notably, 56.7% of the special distribution is classified as net realized short-term capital gains, with 42.0% from long-term capital gains. Such allocations may suggest the Fund's proactive investment approach in exploiting market conditions throughout the year.
Of equal significance are the figures related to the Fund's distribution strategy, which aims to deliver consistent distributions even when total income may not cover the payout. The Managed Distribution Plan indicates that if net income and realized gains are insufficient, the excess will be drawn from the Fund’s assets, potentially classified as a return of capital. This positioning may imply a heightened risk for investors if too much reliance on capital withdrawals occurs.
In terms of performance metrics, the Fund has shown resilience with a 9.87% average annual total return on NAV over five years and a current distribution rate of 7.15%. However, investors should weigh these figures against the possibility of distributions stemming from capital depletion.
For those considering entry or further investment, it’s advisable to keep close tabs on the Fund’s fiscal performance and monitor the macroeconomic landscape, particularly the impact on AI and technology sectors, where the Fund primarily operates. As with any investment, ensure alignment with your individual risk tolerance and financial goals. Be aware of potential market volatility, particularly as the Fund approaches its termination date around October 2023.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Virtus Artificial Intelligence & Technology Opportunities Fund (NYSE: AIO) today announced the following special year-end distribution to holders of its common shares:
Ticker | Amount of Distribution | Ex-Date/Record Date | Payable Date |
AIO | $1.191 | December 29, 2025 | January 9, 2026 |
This special year-end distribution, which is in addition to the regular monthly distribution paid to holders of its common shares, is being paid by the Fund to manage certain federal tax requirements.
The Fund previously announced the following monthly distribution on November 19, 2025:
Ticker | Amount of Distribution | Ex-Date/Record Date | Payable Date |
AIO | $0.15 | December 11, 2025 | December 30, 2025 |
The Fund provides this estimate of the sources of the special distribution and the December 2025 and fiscal year-to-date distributions made pursuant to the Fund’s Managed Distribution Plan:
Distribution Estimates | December 2025 (MTD) | Special Year-End Distribution Sources | Fiscal Year-to-Date (YTD) (1) | |||
(Sources) | Per Share Amount | Percentage of Current Distribution | Per Share Amount | Percentage of Current Distribution | Per Share Amount | Percentage of Current Distribution |
Net Investment Income | $ 0.002 | 1.3% | $ 0.000 | 0.0% | $ 0.071 | 2.5% |
Net Realized Short-Term Capital Gains | 0.085 | 56.7% | 0.000 | 0.0% | 0.422 | 14.9% |
Net Realized Long-Term Capital Gains | 0.063 | 42.0% | 1.191 | 100.0% | 2.348 | 82.6% |
Return of Capital (or other Capital Source) | 0.000 | 0.0% | 0.000 | 0.0% | 0.000 | 0.0% |
Total Distribution | $ 0.150 | 100.0% | $ 1.191 | 100.0% | $ 2.841 | 100.0% |
(1) Fiscal year started February 1, 2025. |
Under the terms of its Managed Distribution Plan, the Fund seeks 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.
Information regarding the Fund’s performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund’s net asset value (NAV) and not the market price of the Fund’s shares. Performance figures are not meant to represent individual shareholder performance.
November 28, 2025 | |
Average Annual Total Return on NAV for the 5-year period (2) | 9.87% |
Annualized Current Distribution Rate (3) | 7.15% |
Fiscal YTD Cumulative Total Return on NAV (4) | 14.37% |
Fiscal YTD Cumulative Distribution Rate (5) | 10.68% |
(2) Average Annual Total Return on NAV is the annual compound return for the five-year period. It reflects the change in the Fund’s NAV and reinvestment of all distributions. | |
(3) Annualized Current Distribution Rate is the current distribution rate ($0.15 per share) annualized as a percentage of the Fund's NAV at month end. | |
(4) Fiscal YTD Cumulative Total Return on NAV is the percentage change in the Fund's NAV from the first day of the fiscal year to this month end, including distributions paid and assuming reinvestment of those distributions. | |
(5) Fiscal YTD Cumulative Distribution Rate is the dollar value of distributions from the first day of the fiscal year to this month end (inclusive of the special year-end distribution) as a percentage of the Fund's NAV at month end. The Fiscal YTD Cumulative Distribution Rate would be 5.95% if the special year-end distribution of $1.191 per share was excluded. |
The amounts and sources 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 Artificial Intelligence & Technology Opportunities Fund is a diversified closed-end fund that seeks to provide total return through a combination of current income, current gains, and long-term capital appreciation. A multi-asset approach based on fundamental research is employed, dynamically allocating to attractive segments of a company's debt and equity in order to offer an attractive risk/reward profile. The Fund has a limited term and will terminate on or around October 29, 2031, absent approval by the Fund’s Board of Trustees to extend the Fund’s term by up to 18 months. Virtus Investment Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners, Inc., is the investment adviser to the Fund and Voya Investment Management 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 NAV. For more information about the Fund’s investment objective and risks, please see the Fund’s annual report. A copy of the Fund’s most recent annual report can be accessed through the Closed-End Funds section of virtus.com and may be obtained free of charge by contacting “Shareholder Services” as set forth at the end of this press release.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers , each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com .
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Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
FAQ**
How has the special year-end distribution announced by the Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) on December 29, 2025, impacted the overall investment strategy of Virtus Investment Partners Inc. VRTS?
With the announcement of monthly and special distributions for AIO, what insights can be gained about the distribution sustainability in relation to Virtus Investment Partners Inc. VRTS’s performance metrics?
In light of the managed distribution plan for AIO, how does the allocation of net investment income and realized capital gains by Virtus Investment Partners Inc. VRTS affect investor sentiment and share pricing?
Given the fund's projected termination date of October 29, 2031, how does Virtus Investment Partners Inc. VRTS plan to manage potential risks associated with the returns from its diversified investment strategy?
**MWN-AI FAQ is based on asking OpenAI questions about AllianzGI Artificial Intelligence & Technology Opportunities Fund (NYSE: AIO).
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