Form 4: Virtus Diversified Income & Convertible Fund Director Purchases Shares Under Pre-Planned Trading Plan

Connie D. McDaniel, a Director of Virtus Diversified Income & Convertible Fund (ACV), purchased 237 shares of common stock at $21.885 per share under a Rule 10b5-1 trading plan, effective June 17, 2025.

Summary

• Connie D. McDaniel, a Director of Virtus Diversified Income & Convertible Fund (ACV), acquired 237 shares of the company's common stock.
• The transaction is scheduled to occur on June 17, 2025, at a price of $21.885 per share.
• This purchase was made pursuant to a Rule 10b5-1(c) pre-arranged trading plan, indicating it was established in advance.
• Following this transaction, Ms. McDaniel will directly beneficially own 237 shares of the company's common stock.
• The Form 4 filing was signed by Ronnie D. Kryak, Attorney-in-Fact, on June 18, 2025, under a Power of Attorney dated March 21, 2025.

Sentiment

Score: 7

Explanation: The purchase of shares by a director, even a small amount under a 10b5-1 plan, generally indicates confidence in the company's prospects. The future transaction date and small volume temper the immediate positive impact, but it remains a positive signal.

Positives

• A director's purchase of company stock, even under a pre-planned Rule 10b5-1 plan, can signal confidence in the company's future prospects and valuation.
• The transaction represents a direct investment by a key insider at a specific price of $21.885 per share.

Negatives

• The number of shares purchased (237) is relatively small, which might limit the perceived significance of the insider buying as a strong market signal.

Risks

• The Power of Attorney explicitly states that the attorneys-in-fact and the Fund are not assuming the undersigned's responsibilities to comply with Section 16 of the Securities Exchange Act of 1934, highlighting the individual responsibility of the director for compliance with insider trading regulations.

Future Outlook

The document does not contain explicit forward-looking statements or guidance regarding the company's future performance or strategic direction. The reported transaction is a pre-planned insider purchase under Rule 10b5-1(c).

Management Comments

• "The undersigned acknowledges that the foregoing attorneys-in-fact, in serving in such capacity at the request of the undersigned, are not assuming, nor is the Fund assuming, any of the undersigned's responsibilities to comply with Section 16 of the Securities Exchange Act of 1934."

Industry Context

Insider purchases, particularly by directors, are often viewed by the market as a positive signal, suggesting that those with intimate knowledge of the company believe its stock is undervalued or has strong future prospects. In the investment fund industry, such transactions can reinforce investor confidence in the fund's management and strategy, although the relatively small size of this particular transaction may limit its broader market impact.

Comparison to Industry Standards

• This document reports a standard insider transaction (Form 4) under a Rule 10b5-1 plan, which is a common practice for corporate insiders to manage their stock transactions in compliance with insider trading laws.
• There are no specific comparable companies, projects, or performance metrics mentioned within the document to assess the results against broader industry benchmarks. The transaction itself is a direct purchase of shares, not a performance report.

Corporate Governance

Stakeholder Impact

• Shareholders: The director's purchase may instill confidence in existing shareholders and potentially attract new investors, as it signals an insider's belief in the company's value and future prospects.

Next Steps

• The reported transaction is scheduled to be executed on June 17, 2025.

Key Dates

Recommendation

Keywords

Virtus Diversified Income & Convertible Fund, ACV, Insider Trading, Form 4, Director Purchase, Connie D. McDaniel, Rule 10b5-1, Closed-End Fund, Investment Company, Equity Acquisition