Virtus Equity & Convertible Income Fund (NIE) Soars 0.97% on Distribution Announcement

Virtus Equity & Convertible Income Fund (NIE) rose 0.97% today, marking its fifth consecutive day of gains, with a total increase of 4.43% over the past five days. The share price reached its highest level since March 2025, with an intraday gain of 1.57%.

The strategy of buying NIE shares after they reached a recent high and holding for 1 week showed mixed results over the past five years. The annualized return was -1.2%, with a maximum drawdown of 18.3% during the backtested period. This suggests that while there were some positive returns, the overall performance was lackluster and the strategy was not able to capitalize on broader market movements.

The primary factor influencing the stock price of Virtus Equity & Convertible Income Fund (NIE) is the recent announcement of its quarterly distribution. The fund declared a distribution of $0.50 per share, payable on June 27, 2025. This distribution is mainly derived from net realized long-term capital gains, which constitute 91% of the current payout. The fund's Managed Distribution Plan aims to maintain a consistent distribution level, which may include a return of capital if net investment income and realized capital gains are insufficient to meet the distribution amount. This announcement is likely to impact investor sentiment and market response regarding the fund's financial stability and income-generating capabilities.