NEW YORK, March 19, 2020 /PRNewswire/ -- The Virtus InfraCap U.S. Preferred Stock ETF (NYSE Arca: PFFA) (the "Fund") has declared a monthly distribution of $0.15 per share ($1.80 per share on an annualized basis). This rate compares to a monthly rate of $0.19 per share paid in the prior month. The distribution will be paid March 30, 2020 to shareholders of record as of the close of business March 23, 2020.
The reduction in the monthly distribution rate is in direct response to unprecedented stock market volatility, particularly in the market for shares of preferred stocks, which has seen precipitous drops in prices over the last several weeks. Portfolio leverage has been prudently reduced, directly impacting the fund's normal distributions. Additionally, the fund's option overlay strategy is at reduced levels due to unfavorable market conditions, also negatively impacting distribution levels.
The Fund's policy of reviewing the distribution rate on an annual basis has been put on hold. Monthly reviews will be done until financial market conditions stabilize.
PFFA Cash Distribution:
- Ex-Date: Friday, March 20, 2020
- Record Date: Monday, March 23, 2020
- Payable Date: Monday, March 30, 2020
Infrastructure Capital Advisors expects to declare future distributions on a monthly basis. Distributions are planned, but not guaranteed, for every month. The next distribution is scheduled to occur in April 2020.
For more information about PFFA's distribution policy, its 2020 distribution calendar, or tax information, please visit the Fund's website at www.virtusetfs.com.
About Virtus ETF Advisers
Virtus ETF Advisers is a New York-based, multi-manager ETF sponsor and affiliate of Virtus Investment Partners. With actively managed and index-based investment capabilities across multiple asset classes, Virtus offers a range of complementary exchange-traded-funds subadvised by select investment managers.
About Infrastructure Capital Advisors, LLC
Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered investment advisor that manages exchange traded funds and a series of hedge funds. The firm was formed in 2012 and is based in New York City. ICA seeks total-return opportunities in key infrastructure sectors, including energy, real estate, transportation, industrials and utilities. It often identifies opportunities in entities that are not taxed at the entity level, such as master limited partnerships ("MLPs") and real estate investment trusts ("REITs"). It also looks for opportunities in credit and related securities, such as preferred stocks. Current income is a primary objective in most, but not all, of the company's investing activities. The focus is generally on asset-intensive companies that generate and distribute substantial streams of free cash flow. For more information, please visit www.infracapfunds.com.
Exchange Traded Funds: The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities. Preferred Stock: Preferred stocks may decline in price, fail to pay dividends, or be illiquid. Non-Diversified: The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets. Short Sales: The Fund may engage in short sales, and may experience a loss if the price of a borrowed security increases before the date on which the Fund replaces the security. Leverage: When a Fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded. Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment. No Guarantee: There is no guarantee that the portfolio will meet its objective. Prospectus: For additional information on risks, please see the Fund's prospectus.
You should consider the Fund's investment objectives, risks, and charges and expenses carefully before investing. Contact ETF Distributors LLC at 1-888-383-4184 or visit www.virtusetfs.com to obtain a prospectus which contains this and other information about the Fund. The prospectus should be read carefully before investing.
Virtus ETF Advisers, LLC serves as the investment advisor and Infrastructure Capital Advisors, LLC serves as the subadviser to the Fund.
The Fund is distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.
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SOURCE Virtus InfraCap U.S. Preferred Stock ETF