Virtus Total Return Fund Inc · NYSE:ZTR
Virtus Total Return Fund — Proxy Contest (May 2016)
23 slides from Virtus Total Return Fund's proxy contest presentation, May 13, 2016
Slide 1: Virtus Total Return Fund (DCA) Presentation to Institutional Shareholder Services Inc.
V IRTUS T OTAL R ETURN F UND (DCA) A P RESENTATION TO I NSTITUTIONAL S HAREHOLDER S ERVICES I NC . May 13, 2016
Slide 2: Disclaimer
D ISCLAIMER This presentation is neither an offer to sell nor a solicitation of an offer to buy the Virtus Total Return Fund 2
Slide 3: Executive Summary
E XECUTIVE S UMMARY DCA continues to deliver on its investment objective of total return by providing strong investment performance and attractive and consistent distributions to shareholders DCA’s discount is attractive relative to peers and the broader closed end fund market DCA benefits from the
Slide 4: Investment Performance
I NVESTMENT P ERFORMANCE NAV/ MKT YTD 1 Year 3 Years 5 Years Since Adoption 1 Since Inception 2 DCA – NAV $4.64 6.75% 0.92% 7.95% 8.36% 10.77% - 1.21% DCA – Market Price $4.24 14.44% 3.01% 9.13% 9.63% 12.79% - 2.41% Composite Benchmark 3 6.45% - 1.12% 4.33% 5.17% 5.76% 5.51% Lipper Rank 4 4% 17% 14%
Slide 5: Investment Performance: Rolling Three Year Return Analysis
I NVESTMENT P ERFORMANCE -30 -20 -10 0 10 20 30 40 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Excess to Composite Index Excess to Lipper Global Fund Peers Rolling Three Year Return A
Slide 6: Distribution Information
D ISTRIBUTION I NFORMATION Since the current portfolio managers began managing the Fund in 2011, DCA has paid $1.39 per share, totaling $38.3 million, to shareholders in distributions The Fund has not had any return of capital to shareholders for all the full fiscal years (2012 - 2015) that the curr
Slide 7: Discount Details and Comparisons
D ISCOUNT D ETAILS AND C OMPARISONS The Fund’s trading discount to NAV has narrowed significantly since the adoption of the Fund in December of 2011 – Fund traded at a discount of - 16.38 as of market close on December 8, 2011 – As of May 3, 2016, the discount had narrowed to - 7.54 % – The average
Slide 8: Discount Details and Comparisons: Premium/Discount Trend
-20.00 -15.00 -10.00 -5.00 0.00 5.00 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Virtus Total Return Fund Lipper Global Funds Median Virtus Total Return Fund Premium/Discount Trend - 8.41% -
Slide 9: Board Experience and Oversight
B OARD E XPERIENCE AND O VERSIGHT The Board is comprised of five highly qualified professionals with extensive experience and a proven track record – please see biographies in appendix Four of the five directors are independent under the Investment Company Act of 1940 and NYSE rules The Board has ta
Slide 10: Bulldog's Actions and Claims
B ULLDOGS A CTIONS AND C LAIMS Bulldog is focused on a short term agenda to benefit its own shareholders – From December 31, 2015 to April 11, 2016, Bulldog purchased over 71% of its current holdings resulting in reported ownership of 13.75% Bulldog’s proposal, if enacted, would deprive long term sh
Slide 11: Conclusion
C ONCLUSION DCA continues to deliver on its investment objectives of capital appreciation and income to shareholders The Fund’s discount is in line with its peers and has narrowed significantly since the current portfolio managers began managing the Fund in 2011 as a result of the various actions ta
Slide 12: Disclaimer
D ISCLAIMER The Fund has filed with the Securities and Exchange Commission (SEC) and mailed to shareholders a notice of annual meeting and a definitive proxy statement dated April 18, 2016 together with a White Proxy Card that can be used to elect the Board’s current incumbent nominee and vote again
Slide 13: Appendix
_VIRTUS | CLOSED-END FUNDS APPENDIX
Slide 14: Trustees' Biographies
T RUSTEES ’ B IOGRAPHIES Independent Trustees Philip R. McLoughlin (Chair) Trustee of DCA since 2011 Mr. McLoughlin has extensive knowledge regarding asset management and the financial services industry, having served for a number of years in various executive and director positions of the company t
Slide 15: Trustees' Biographies
T RUSTEES ’ B IOGRAPHIES Independent Trustees Thomas F Mann Trustee of DCA since 2011 Mr. Mann has over 40 years of experience in various senior management positions at large global finance institutions and small entrepreneurial environments. He is also a Chartered Financial Analyst (CFA) and holds
Slide 16: Trustees' Biographies
T RUSTEES ’ B IOGRAPHIES Independent Trustees James M Oates Trustee of DCA since 2013 Mr. Oates was instrumental in the founding of a private global finance, portfolio management and administration company, and he has also served in executive and director roles for various types of financial service
Slide 17: Trustees' Biographies: Interested Trustee
T RUSTEES ’ B IOGRAPHIES Interested Trustee George R Aylward Trustee of DCA since 2011 In addition to his positions with the Fund, Mr. Aylward is a Director and the President and Chief Executive Officer of Virtus, the ultimate parent company of the Adviser. He also holds various executive positions
Slide 18: Newfleet – An Overview
N EWFLEET – A N O VERVIEW Our Firm Hartford, CT - based investment management company with 40 investment professionals Wholly - owned affiliate of Virtus Investment Partners (VRTS ) Core Newfleet team has worked together for over 19 years and has been active in fixed income markets since 1992, inclu
Slide 19: Newfleet – Investment Overview
N EWFLEET – I NVESTMENT O VERVIEW 19 ► Investment Strategy • Multi - Sector manager with a credit bias • Investment approach is a combination of top down sector selection and bottom up issue selection • Based on relative valuations • Specialists across 14 sectors perform in - depth fundamental resea
Slide 20: Newfleet – Investment Overview: Portable Yield Strategy (PYS)
N EWFLEET – I NVESTMENT O VERVIEW Portable Yield Strategy (PYS) PYS targets 2 - 3% of annual income , net of fees and commissions. It aims to achieve its objective through a fully transparent, systematic options strategy. The strategy generates option premium, and features a clearly defined target r
Slide 21: Newfleet – Investment Overview: Portable Yield Strategy (PYS)
If the market level is within the green area of the chart at expiration, all premium generated is retained. A loss will be incurred if the Index falls in the blue area at expiration. In this example, the maximum loss will occur when the Index level has moved more than +/ - 9%. Note: only one side (p
Slide 22: Duff & Phelps – An Overview
D UFF & P HELPS – A N O VERVIEW Founded in 1932 as a research firm, Duff & Phelps began investment management in 1979 and now focuses on listed real assets as a liquid alternative to direct investments We apply disciplined bottom - up investment processes to listed real assets with the objective of
Slide 23: Duff & Phelps – Investment Overview
We believe a rigorous fundamentally driven investment process will uncover securities that are mispriced which will provide superior risk - adjusted returns. We invest globally in the owners/operators of scarce infrastructure assets given their consistent and predictable business models. We have a t