Preferred Share Distribution
Virtus Convertible & Income Fund Declares Quarterly Cash Distribution for Series A Preferred Shares
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Virtus Convertible & Income Fund has declared a quarterly cash distribution of $0.3515625 per share for its 5.625% Series A Cumulative Preferred Shares, according to Business Wire. The payment covers the period from April 1 to June 30, 2026, with a record date of June 23 and a payable date of June 30, 2026.
The shares trade on the New York Stock Exchange under the ticker NCV PR A. They carry an annual dividend rate of $1.40625 per share — equal to 5.625% of their $25.00 liquidation preference. Fitch Ratings gives them an "A" credit rating, reflecting the fund's strong asset coverage, per Yahoo Finance.
What This Distribution Means for Preferred Shareholders
The fund originally issued 4,000,000 Series A Preferred Shares in September 2018 at $25.00 each, according to Business Wire. Shareholders on record by June 23 will receive $0.3515625 per share on June 30. Because these shares are "cumulative," any missed future payment must be paid back before common shareholders get a dime.
Total managed assets for NCV stand at roughly $390.74 million as of April 30, 2026, per Market Screener. The fund carries a total leverage ratio of 32.12%, which includes both bank loans and preferred shares. That leverage boosts returns but also adds risk for common shareholders.
Fitch Keeps "A" Rating on Back of Strict Asset Rules
Fitch Ratings reaffirmed its "A" rating on the preferred shares on April 21, 2026, citing what it called "structural protections afforded by mandatory collateral maintenance." Under the Investment Company Act of 1940, NCV must keep asset coverage of at least 200% for its preferred shares. If that level drops, the fund must redeem shares or halt common dividends until it is back in compliance.
This regulatory floor is the key reason preferred shareholders enjoy a high credit rating even as the fund uses leverage. Common shareholders face more risk. Their monthly dividend of $0.136 per share could be cut if asset coverage slips, according to Financial Content.
Virtus and Voya Manage the Fund After 2021 Allianz Exit
NCV was originally run by Allianz Global Investors under the name AllianzGI Convertible & Income Fund. In February 2021, Virtus Investment Partners took over management. Voya Investment Management now handles day-to-day portfolio decisions, led by Justin M. Kass, Senior Managing Director and Chief Investment Officer, per Business Wire.
Virtus Investment Partners, based in Hartford, CT, manages about $154.8 billion in total assets as of April 30, 2026. George R. Aylward, the firm's CEO, was re-elected as a trustee on June 1, 2026, with 92% of votes cast — roughly 20.4 million shares voting in favor, according to Yahoo Finance.
High Rates and Discount to NAV Create Headwinds for the Fund
The broader backdrop for NCV is tricky. Convertible securities have seen uneven fund flows in mid-2026 as investors weigh equity upside against high interest rates. High rates raise the cost of the fund's bank leverage, squeezing income available to common shareholders, per Financial Content.
NCV's shares have traded at an average discount of 10.59% to net asset value over the past three years. That signals some market skepticism about long-term growth. There is also call risk: the preferred shares can be redeemed at $25.00 plus accrued dividends at any time, meaning investors could lose a high-yielding position if the fund refinances at lower cost, according to Market Screener.
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