DALLAS, November 30, 2021 / PRNewswire / –
As previously announced, Vertical Capital Income Fund (NYSE: VCIF) paid a monthly distribution of $ 0.0778 per share to all shareholders of record November 17, 2021, in accordance with the Fund’s managed distribution plan (the “Plan”).
In general, the amount of distributable income of the Fund depends on the cumulative 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 character of such distributions can not be determined until after the end of the fiscal year of the Fund. 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 shown in the table. All amounts are expressed per share and as a percentage of the amount of the distribution.
To share (%)
Cumulative cumulative over the current financial year
To share (%)
Net realized short-
Capital gains over time
Net realized long-
Capital gains over time
Repayment of capital
or other capital
(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 shown in this 19 (a) notice are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to change depending on 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 considers that 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 performance of the Fund’s investments and should not be confused with “return” or “income”.
Average annual total return at net asset value for the 5-year period ended October 31, 20211
Current annualized payout rate expressed as a percentage of NAV as of October 31
Total cumulative return at net asset value for the year ended October 31, 20213
Cumulated distribution rate since the beginning of the fiscal year as a percentage of the net asset value as at October 31
1 The average annual total return at net asset value represents the change in the net asset value of the Fund, with all distributions reinvested, for the 5-year period ending on October 31, 2021.
2 The current annualized distribution rate is the annualized cumulative distribution rate as a percentage of the net asset value of the Fund as of October 31, 2021.
3 The total cumulative return at the net asset value corresponds to the percentage change in the net asset value of the Fund for the period from the start of its financial year to October 31, 2021 including distributions paid and assuming reinvestment of such distributions.
4 Cumulated payout rate for the fiscal year for the period from the start of its fiscal year to October 31, 2021 measured on the dollar value of distributions during the cumulative period as a percentage of the net asset value of the Fund as of October 31, 2021.
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 distribution rate of the Fund 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 result in a change in the distribution rate of the Fund at any future date. The modification or termination of the Plan could have an adverse effect on the 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 outbreak and its effects cannot be determined with certainty. In order to comply with the requirements of Section 19 of the Investment Companies Act of 1940 and with an exemption order received by the Fund from the Securities and Exchange Commission, the Fund will provide its shareholders of record on each date 19 (a) Notify and issue an accompanying press release disclosing the sources of its distribution payment when a distribution includes anything other than net investment income. This information will be available later this month.
The amounts and sources of distributions shown in notices 19 (a) are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during its full financial year and may be subject to change depending on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will tell them how to report these distributions for federal income tax purposes. Information on the Fund’s 19 (a) notices, if any, can be found at www.vertical-revenufund.com. The final the determination of the source and the tax characteristics of all distributions in 2021 will be made after the end of the year.
Closed-end fund stocks often trade at a discount to their net asset value. The market price of the shares of the Fund may vary from the net asset value depending on factors affecting the supply and demand of 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 return expectations and investor confidence in the underlying markets in which the Fund invests. Shares of the Fund are subject to investment risk, including the possible loss of invested capital. No Fund is a complete investment program and you can lose money by investing in a Fund. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the investment objective, risks, charges and expenses of the Fund. For more details, please visit the Vertical Capital Income Fund website at vertical-revenufund.com.
This press release contains forward-looking statements regarding the business and financial prospects of Vertical Capital Income Fund which are based on current expectations, estimates, forecasts and projections of the Fund 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 these 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 press release.
About the Vertical Capital Income Fund
Vertical Capital Income Fund (VCIF) is a NYSE-listed closed-end fund that seeks monthly income by investing primarily in full agency-free residential real estate loans backed by real estate. As a secondary strategy, the Fund aims to provide a total return by acquiring performing residential loans at a price below the outstanding principal balance (UPB). The VCIF realizes capital gains because the loans are repaid before maturity.
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 advisor that specializes in the entire residential loan market. It is a wholly owned subsidiary of Dallas, Texas-based on Behringer. Since its inception in 1989, Behringer and its subsidiaries have raised equity capital of over $ 6 billion in assets through public and private fund structures. For more information on Oakline and Behringer, please visit their respective websites at Oaklineadvisors.com and behringerinvestments.com.
Fund units are identified by CUSIP 92535C104
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SOURCE Vertical Capital Income Fund