Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) is a closed-end management investment company that seeks to provide a high level of total return through a blend of dividend income, interest income and option premium generation. The fund pursues its objective by investing primarily in dividend-paying equity securities, fixed-income instruments and derivative overlay strategies. Its flexible mandate allows for dynamic allocation across sectors and regions in order to adapt to changing market conditions.
The portfolio typically holds a diversified mix of U.S. and global dividend-paying stocks selected for their potential income and long-term growth characteristics, alongside investment-grade and high-yield bonds. To enhance yield, NFJ employs covered call writing and cash-secured put writing strategies on individual equities and equity indexes. These option overlays are designed to generate additional premium income while managing downside risk in volatile markets.
Launched in 2008, the fund is part of Virtus Investment Partners’ suite of closed-end funds. Virtus, headquartered in Hartford, Connecticut, is a publicly traded asset management company with a history dating back to the mid-1990s. NFJ benefits from the firm’s global research capabilities and risk-management framework, which combine fundamental equity analysis with credit research and quantitative screening to identify income opportunities across multiple asset classes.
NFJ’s portfolio is managed by a team of seasoned investment professionals at Virtus, drawing on decades of experience in equity income, fixed-income markets and derivatives. The fund is distributed through a network of financial intermediaries, including broker-dealers, banks and registered investment advisors. Its monthly distribution policy and total-return focus make it a potential option for investors seeking diversified income solutions in a single vehicle.
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