Virtus Total Return Fund Inc. Discloses Sources of Distribution – Section 19(a) Notice

Key Terms

managed distribution plan financial

A managed distribution plan is a company’s program to pay regular, predictable cash amounts to shareholders by setting a fixed schedule and target payout, often funded from operating cash, reserves, or return of capital. Think of it like a household budget that guarantees a monthly allowance: it provides steady income for investors but can mask when distributions exceed sustainable earnings, which may reduce the company’s capital over time and affect long‑term value.

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net realized short-term capital gains financial

Gains from selling investments held one year or less, after subtracting any short-term losses, so it represents the net profit from quick trades. Investors care because these gains are taxed at ordinary income rates rather than the lower long-term rates, which can significantly reduce after-tax returns; think of it like the higher sales tax you pay on a quick flip versus a discounted rate for holding something longer.

net realized long-term capital gains financial

Net realized long-term capital gains are the total profit an investor actually locks in from selling assets held more than one year, after subtracting any losses or adjustments. Think of it like the net cash you keep after selling a long-owned item and paying off related losses or costs; it matters because these gains determine taxable income and after-tax investment returns, influence dividend capacity and tax planning, and usually face lower tax rates than short-term gains.

return of capital financial

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

net asset value (NAV) financial

Net asset value (NAV) is the per-share value of an investment fund calculated by totaling the fund’s assets, subtracting its liabilities, and dividing the remainder by the number of outstanding shares. Think of it like a price tag on each share of a collective piggy bank: investors use NAV to see what each share is worth, to compare funds, and, for many funds, it’s the price at which shares are bought or redeemed.

annualized current distribution rate financial

Annualized current distribution rate is the income yield you would get if the most recent per-share payout continued at the same amount for a full year, expressed as a percentage of the current share price (or net asset value). It gives investors a quick, snapshot estimate of how much cash return a security is currently generating — like looking at last month’s paycheck and multiplying it to see your projected annual income — useful for comparing income potential across investments but not a guarantee of future payments.

fiscal ytd cumulative total return on nav financial

The fiscal year-to-date cumulative total return on NAV measures how much a fund’s net asset value (the per-share value of its holdings) has changed, in percentage terms, from the start of its fiscal year to now, counting both price changes and any payouts that are assumed reinvested. Investors use it to track how effectively the fund has grown the value of their stake since the fiscal year began — like checking how much a savings pot has grown when you count both gains and reinvested interest — and to compare performance across funds on an apples-to-apples basis.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Total Return Fund Inc. (NYSE: ZTR) previously announced the following monthly distribution on November 19, 2025:

Ticker	Amount of Distribution	Ex-Date/Record Date	Payable Date
ZTR	$0.05	February 12, 2026	February 26, 2026

Under the terms of its Managed Distribution Plan, the Fund will seek to maintain a consistent distribution level that may be paid, in part or in full, from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Managed Distribution Plan.

The Fund provided this estimate of the sources of the distributions:

Distribution Estimates	February 2026 (MTD)			Fiscal Year-to-Date (YTD) (1)
(Sources)	Per Share Amount		Percentage of Current Distribution	Per Share Amount		Percentage of Current Distribution
Net Investment Income	$	0.015	30.0%	$	0.033	21.9%
Net Realized Short-Term Capital Gains		0.003	6.0%		0.055	37.0%
Net Realized Long-Term Capital Gains		0.032	64.0%		0.062	41.1%
Return of Capital (or other Capital Source)		0.000	0.0%		0.000	0.0%
Total Distribution	$	0.050	100.0%	$	0.150	100.0%
(1) Fiscal year started December 1, 2025.

Information regarding the Fund’s performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund’s net asset value (NAV) and not the market price of the Fund’s shares. Performance figures are not meant to represent individual shareholder performance.

January 30, 2026
Average Annual Total Return on NAV for the 5-year period (2)		8.10%
Annualized Current Distribution Rate (3)		8.15%
Fiscal YTD Cumulative Total Return on NAV (4)		3.39%
Fiscal YTD Cumulative Distribution Rate (5)		1.36%
(2)	Average Annual Total Return on NAV is the annual compound return for the five-year period. It reflects the change in the Fund’s NAV and reinvestment of all distributions.
(3)	Annualized Current Distribution Rate is the current distribution rate annualized as a percentage of the Fund's NAV at month end.
(4)	Fiscal YTD Cumulative Total Return on NAV is the percentage change in the Fund's NAV from the first day of the fiscal year to this month end, including distributions paid and assuming reinvestment of those distributions.
(5)	Fiscal YTD Cumulative Distribution Rate is the dollar value of distributions from the first day of the fiscal year to this month end as a percentage of the Fund's NAV at month end.

The amounts and sources of distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.

About the Fund

Virtus Total Return Fund Inc. is a diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, LLC, a registered investment adviser and an affiliate of Virtus Investment Partners, Inc., is the investment adviser and Duff & Phelps Investment Management Co. and Newfleet Asset Management are the subadvisers to the Fund.

For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section of virtus.com.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their NAV. For more information about the Fund’s investment objective and risks, please see the Fund’s annual report. A copy of the Fund’s most recent annual report can be accessed through the Closed-End Funds section of virtus.com and may be obtained free of charge by contacting “Shareholder Services” as set forth at the bottom of this press release.

About Duff & Phelps Investment Management Co.

Duff & Phelps Investment Management Co. pursues investment strategies with exceptional depth of resources and expertise. With more than 35 years of experience managing investment portfolios, Duff & Phelps has earned a reputation as a leader in investing in global listed infrastructure, global listed real estate, clean energy, and diversified real assets in institutional separate accounts and open- and closed-end funds. For more information, visit dpimc.com.

About Newfleet Asset Management

Newfleet Asset Management provides comprehensive fixed income portfolio management in multiple strategies. The Newfleet Multi-Sector Strategies team that manages the Virtus Total Return Fund Inc. employs active sector rotation and disciplined risk management in portfolio construction, avoiding interest rate bets, and remaining duration neutral to each strategy’s stated benchmark. Newfleet Asset Management is a division of Virtus Fixed Income Advisers, LLC, which is a registered investment adviser affiliated with Virtus Investment Partners. For more information, visit newfleet.com.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

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For Further Information:

Shareholder Services

(866) 270-7788

closedendfunds@virtus.com

Source: Virtus Total Return Fund Inc.