The Virtus Dividend, Interest & Premium Strategy Fund (NFJ) has initiated a tender offer to buy back up to 25% of its outstanding shares at nearly full value, specifically 99% of its net asset value (NAV). This offer opened on September 1, 2026, and will expire on October 5, 2026. As of now, NFJ’s shares are trading at a 5.4% discount to NAV, and its average discount over the past decade has been 11.5%.
Investors who purchased shares at a wider discount will benefit, as they can tender their holdings at a higher value compared to their buy-in price. For instance, long-term holders could have acquired shares at about 88.5 cents on the dollar, allowing them to cash in at 99 cents during this offer.
This strategic decision follows pressure from activist investor Saba Capital Management, underscoring the importance of tender offers in providing liquidity and unlocking value for shareholders. Investors must elect to tender through their brokers.
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