Vertical Capital Income Fund (VCIF) Announces Estimated Sources for May 2022 Distribution

0

DALLAS, May 31, 2022 /PRNewswire/ — As previously announced, Vertical Capital Income Fund (NYSE: VCIF) paid a monthly distribution of $0.0731 per share to all shareholders registered in the May 18, 2022pursuant to the Fund’s Managed Distribution Plan (the “Plan”).

In general, the amount of the Fund’s distributable income depends on the total gains and losses realized by the Fund during the entire year. Distributions may consist of net investment income, capital gains and return of capital, but the nature of such distributions cannot be determined until after the end of the Fund’s financial year. However, under the Investment Company Act of 1940, as amended, and the terms of the Plan, the Fund may be required to disclose the source of each distribution to its shareholders. The following table shows the estimated sources of the current distribution and the cumulative distributions paid in fiscal 2022 to date from the sources indicated in the table. All amounts are expressed on a per share basis and as a percentage of the distribution amount.

Source

Running

Distribution

Per share

failure of

Running

Breakdown by

To share (%)

Cumulative fiscal year since the beginning of the year

Cumulative

Distributions
Per share

Breakdown of the exercise
Cumulative since the beginning of the year

Breakdown by

To share (%)

Net investment Revenue

$0.0281

38.44%

$0.2065

28.98%

Short-circuit realized net-Forward capital gains

$0.0000

0.00%

$0.0031

0.44%

Net realized long-term capital gains

$0.0008

1.09%

$0.3435

48.21%

Return of capital or other source(s) of capital

$0.0442

60.47%

$0.1594

22.37%

Total distributions

$0.0731

100.00%

$0.7125

100.00%

(1) You should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Fund’s distribution policy.

(2) The amounts and sources of distributions reported in this 19(a) Notice are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the Fund’s investment experience over the remainder of its financial year and may be subject to change as a result of tax regulations. The Fund will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.

(3) The Fund believes it has distributed more than its income and net realized capital gains; therefore, part of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money you have invested in the Fund is returned to you. A return of capital distribution does not necessarily reflect the investment performance of the Fund and should not be confused with “yield” or “income”.

Average annual total return at net asset value for the 5-year period ended April 30, 20221

2.60%

Current annualized distribution rate expressed as a percentage of the net asset value as of April 30, 20222

8.19%

Cumulative Total Return at Net Asset Value for the Year to April 30, 20223

(3.06)%

Year-to-date cumulative distribution rate as a percentage of net asset value as of April 30, 20224

6.65%



1

The average annual total return to net asset value represents the change in net asset value of the fund, with all distributions reinvested, for the 5-year period ending April 30, 2022.



2

The current annualized distribution rate is the annualized cumulative distribution rate as a percentage of the net asset value of the Fund as at April 30, 2022.



3

Cumulative total return to net asset value is the percentage change in the net asset value of the Fund for the period from the beginning of its financial year to April 30, 2022, including distributions paid and assuming the reinvestment of such distributions.



4

Fiscal year cumulative distribution rate for the period from the beginning of its fiscal year to April 30, 2022 measured on the dollar value of distributions during the cumulative period as a percentage of the net asset value of the Fund on April 30, 2022.

The Plan will be subject to periodic review by the Board, and the Board may change the terms of the Plan, including changing the annual payout rate or may terminate the Plan at any time without notice to shareholders of the Fund. The Fund’s distribution rate may be affected by many factors, including changes in realized and projected market returns, the performance of the Fund and other factors. There can be no assurance that an unforeseen change in market conditions or other unforeseen factors will not cause the Fund’s distribution rate to change at a later date. The amendment or termination of the Plan could have an adverse effect on the market price of the shares of the Fund. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks to which the Fund is exposed. The duration of the COVID-19 epidemic and its effects cannot be determined with certainty. In order to comply with the requirements of Section 19 of the Investment Company Act of 1940 and an exemption order received by the Fund from the Securities and Exchange Commission, the Fund will provide its shareholders of record on each date distribution a 19(a) Notice and issue an accompanying press release disclosing the sources of its distribution payment where a distribution includes anything other than net investment income.

The amounts and sources of distributions reported in the 19(a) Notices are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the investment experience of the Fund over its full financial year and may be subject to change as a result of tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will instruct them how to report such distributions for federal income tax purposes. Information about the Fund’s 19(a) notices, if any, is available at www.vcif.us. The final the determination of the source and tax characteristics of all distributions in 2022 will be made after the end of the year.

Shares of closed-end funds often trade at a discount to their net asset value. The market price of shares in the Fund may differ from the net asset value depending on factors affecting supply and demand for shares, such as the distribution rates of the Fund compared to similar investments, investors’ expectations regarding future distribution changes, the clarity of the Fund’s investment strategy and the return expectations and confidence of investors in the underlying markets in which the Fund invests. The shares of the Fund are subject to investment risk, including possible loss of principal invested. No fund is a complete investment program and you can lose money investing in a fund. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the Fund’s investment objective, risks, charges and expenses. For more details, please visit the Vertical Capital Income Fund website at vcif.us.

This press release contains forward-looking statements relating to the business and financial prospects of Vertical Capital Income Fund which are based on the Fund’s current expectations, estimates, forecasts and projections and are not guarantees of future performance. There can be no assurance that the Fund will achieve its investment objective. Actual results may differ materially from those expressed in such forward-looking statements, and you should not place undue reliance on such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release.

About the Vertical Capital Income Fund

The Vertical Capital Income Fund (VCIF) is a NYSE-listed closed-end fund that seeks monthly income by investing primarily in non-agency residential loans secured by real estate. As a secondary strategy, the Fund aims to provide total return by acquiring performing residential loans at a discount to the outstanding principal balance (UPB). VCIF realizes capital gains when loans are repaid before maturity. For more information, visit VCIF.us and connect with the Fund on Twitter.

About Oakline Advisors, LLC

Oakline Advisors, LLC is the advisor to Vertical Capital Income Fund. Founded in 2013, Oakline Advisors, LLC is an SEC-registered investment adviser specializing in the residential lending market. It is a 100% subsidiary of Dallas, TX-based Behringer. Since its inception in 1989, Behringer, together with its subsidiaries, has raised equity capital of more than $6 billion of assets through public and private fund structures. For more information about Oakline and Behringer, please visit their respective websites at oaklineadvisors.com and behringerinvestments.com.

Fund units are identified by CUSIP 92535C104

SOURCE Vertical Capital Income Fund

Share.

Comments are closed.