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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/05/24 Virtus Global Multi-Sector In… Fd N-CSR 11/30/23 4:1.7M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: N-CSR Virtus Global Multi-Sector Income Fund HTML 1.65M 4: EX-99.906 CERT Certification Pursuant to Section 906 HTML 9K 3: EX-99.CERT Certification Pursuant to Section 302 HTML 22K 2: EX-99.CODE Code of Ethics HTML 25K
Virtus Global Multi-Sector Income Fund |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22608
Virtus Global Multi-Sector Income Fund
(Exact name of registrant as specified in charter)
101 Munson Street
(Address of principal executive offices) (Zip code)
Jennifer Fromm, Esq.
Vice President, Chief Legal Officer, Counsel and Secretary for Registrant
One Financial Plaza
(Name and address of agent for service)
Registrant’s telephone number, including area code: (866) 270-7788
Date of fiscal year end: November 30
Date of reporting period: November 30, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
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1 Year | 5 Years | 10 Years | |
Market Value1,2 | 2.66% | 1.99% | 3.28% |
Net Asset Value1,2 | 7.19% | 2.30% | 3.38% |
Bloomberg Global Aggregate Bond Index1,3 | 2.05% | -0.73% | -0.09% |
1 | Past performance is not indicative of future results. Current performance may be lower or higher than performance in historical periods. |
2 | Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values. |
3 | The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio. |
Corporate Bonds and Notes | 49% | |
Energy | 13% | |
Financials | 13 | |
Materials | 3 | |
All other Corporate Bonds and Notes | 20 | |
Foreign Government Securities | 19 | |
Mortgage-Backed Securities | 10 | |
Leveraged Loans | 9 | |
Asset-Backed Securities | 8 | |
U.S. Government Securities | 2 | |
Municipal Bonds | 2 | |
Other | 1 | |
Total | 100% |
United States | 58% |
Mexico | 6 |
Indonesia | 3 |
Canada | 3 |
Turkey | 2 |
Saudi Arabia | 2 |
Netherlands | 2 |
Other | 24 |
Total | 100% |
Par Value(1) | Value | ||
U.S. Government Securities—3.1% | |||
U.S. Treasury Bonds | |||
1.250%, 5/15/50 | $ 1,965 | $ 965 | |
3.625%, 5/15/53 | 1,425 | 1,216 | |
U.S. Treasury Notes | |||
1.375%, 12/31/28 | 475 | 411 | |
3.375%, 5/15/33 | 450 | 416 | |
Total
U.S. Government Securities (Identified Cost $3,719) |
3,008 | ||
Municipal Bonds—2.2% | |||
California—0.7% | |||
State
of California, Build America Bond Taxable 7.500%, 4/1/34 |
570 | 667 | |
Florida—0.3% | |||
Broward
County, Water & Sewer Utility Revenue Series A 4.000%, 10/1/47 |
300 | 299 | |
Illinois—0.7% | |||
State
of Illinois, Build America Bond Taxable 6.900%, 3/1/35 |
700 | 730 | |
New York—0.5% | |||
Metropolitan
Transportation Authority Bidding Group Series A 5.000%, 11/15/45 |
430 | 462 | |
Total
Municipal Bonds (Identified Cost $2,249) |
2,158 | ||
Foreign Government Securities—27.4% | |||
Arab Republic of Egypt | |||
144A
7.600%, 3/1/29(2) |
845 | 588 | |
144A
8.500%, 1/31/47(2) |
715 | 407 |
Par Value(1) | Value | ||
Foreign Government Securities—continued | |||
Bolivarian
Republic of Venezuela RegS 7.650%, 4/21/25(3)(4) |
$ 1,380 | $ 215 | |
Brazil
Notas do Tesouro Nacional Series F 10.000%, 1/1/29 |
2,680 BRL | 533 | |
Dominican Republic | |||
144A
4.875%, 9/23/32(2) |
1,565 | 1,346 | |
144A
6.850%, 1/27/45(2) |
615 | 568 | |
Federative Republic of Brazil | |||
6.000%, 10/20/33 | 715 | 695 | |
4.750%, 1/14/50 | 365 | 263 | |
Finance
Department Government of Sharjah 144A 6.500%, 11/23/32(2) |
300 | 303 | |
Hungary
Government International Bond 144A 6.250%, 9/22/32(2) |
585 | 597 | |
Islamic
Republic of Pakistan 144A 6.875%, 12/5/27(2) |
630 | 410 | |
Kingdom
of Jordan 144A 5.850%, 7/7/30(2) |
1,450 | 1,318 | |
Kingdom of Morocco | |||
144A
3.000%, 12/15/32(2) |
200 | 157 | |
144A
5.500%, 12/11/42(2) |
590 | 501 | |
Mongolia
Government International Bond 144A 3.500%, 7/7/27(2) |
525 | 458 | |
Oman
Government International Bond 144A 7.375%, 10/28/32(2) |
595 | 655 | |
Republic
of Angola 144A 8.250%, 5/9/28(2) |
1,105 | 978 | |
Republic
of Argentina 3.500%, 7/9/41(5) |
1,350 | 440 | |
Republic of Colombia | |||
3.250%, 4/22/32 | 690 | 518 |
Par Value(1) | Value | ||
Foreign Government Securities—continued | |||
4.125%, 5/15/51 | $ 270 | $ 162 | |
Republic
of Ghana RegS 8.125%, 3/26/32(3)(4) |
970 | 413 | |
Republic of Guatemala | |||
144A
5.250%, 8/10/29(2) |
315 | 293 | |
144A
3.700%, 10/7/33(2) |
830 | 642 | |
Republic
of Indonesia 2.850%, 2/14/30 |
1,540 | 1,355 | |
Republic of Ivory Coast | |||
144A
6.375%, 3/3/28(2) |
385 | 370 | |
144A
6.125%, 6/15/33(2) |
435 | 384 | |
Republic
of Kenya 144A 8.000%, 5/22/32(2) |
510 | 430 | |
Republic
of Nigeria 144A 7.375%, 9/28/33(2) |
525 | 416 | |
Republic
of Philippines 3.700%, 3/1/41 |
960 | 763 | |
Republic
of Poland 4.875%, 10/4/33 |
440 | 426 | |
Republic
of Serbia 144A 6.500%, 9/26/33(2) |
300 | 296 | |
Republic of South Africa | |||
5.875%, 6/22/30 | 530 | 492 | |
5.650%, 9/27/47 | 360 | 260 | |
Republic of Turkiye | |||
7.625%, 4/26/29 | 1,175 | 1,160 | |
9.125%, 7/13/30 | 1,055 | 1,104 | |
4.875%, 4/16/43 | 935 | 614 | |
Saudi International Bond | |||
144A
3.625%, 3/4/28(2) |
900 | 854 | |
144A
4.875%, 7/18/33(2) |
445 | 435 | |
144A
4.500%, 10/26/46(2) |
1,655 | 1,340 | |
State
of Israel 2.750%, 7/3/30 |
480 | 407 | |
State of Qatar | |||
144A
3.750%, 4/16/30(2) |
450 | 426 |
Par Value(1) | Value | ||
Foreign Government Securities—continued | |||
144A
4.400%, 4/16/50(2) |
$ 365 | $ 306 | |
Ukraine Government | |||
144A
7.750%, 9/1/26(2)(3) |
300 | 83 | |
RegS
7.750%, 9/1/26(3)(4) |
350 | 97 | |
United Mexican States | |||
2.659%, 5/24/31 | 310 | 253 | |
6.350%, 2/9/35 | 300 | 303 | |
6.338%, 5/4/53 | 1,177 | 1,119 | |
Total
Foreign Government Securities (Identified Cost $30,240) |
26,153 | ||
Mortgage-Backed Securities—13.9% | |||
Agency—4.4% | |||
Federal National Mortgage Association | |||
Pool
#FS4438 5.000%, 11/1/52 |
905 | 872 | |
Pool
#MA4785 5.000%, 10/1/52 |
457 | 441 | |
Pool
#MA4805 4.500%, 11/1/52 |
799 | 749 | |
Pool
#MA4980 6.000%, 4/1/53 |
1,472 | 1,477 | |
Pool
#MA5072 5.500%, 7/1/53 |
689 | 680 | |
4,219 | |||
Non-Agency—9.5% | |||
Ajax
Mortgage Loan Trust 2022-B, A1 144A 3.500%, 3/27/62(2)(5) |
597 | 552 | |
American
Homes 4 Rent Trust 2014-SFR2, C 144A 4.705%, 10/17/36(2) |
770 | 758 | |
Arroyo
Mortgage Trust 2019-1, A1 144A 3.805%, 1/25/49(2)(5) |
82 | 75 |
Par Value(1) | Value | ||
Non-Agency—continued | |||
Benchmark
Mortgage Trust 2023-B38, A2 5.626%, 4/15/56 |
$ 365 | $ 362 | |
BPR
Trust 2022-OANA, A (1 month Term SOFR + 1.898%, Cap N/A, Floor 1.898%) 144A 7.221%, 4/15/37(2)(5) |
270 | 265 | |
BX
Trust 2019-OC11, D 144A 4.075%, 12/9/41(2)(5) |
515 | 431 | |
Chase Mortgage Finance Corp. | |||
2016-SH1,
M2 144A 3.750%, 4/25/45(2)(5) |
81 | 72 | |
2016-SH2,
M2 144A 3.750%, 12/25/45(2)(5) |
208 | 183 | |
CIM
Trust 2022-R2, A1 144A 3.750%, 12/25/61(2)(5) |
329 | 299 | |
COLT Mortgage Loan Trust | |||
2022-4,
A1 144A 4.301%, 3/25/67(2)(5) |
145 | 137 | |
2022-5,
A1 144A 4.550%, 4/25/67(2)(5) |
349 | 331 | |
Ellington
Financial Mortgage Trust 2019-2, A3 144A 3.046%, 11/25/59(2)(5) |
34 | 31 | |
Extended
Stay America Trust 2021-ESH, C (1 month Term SOFR + 1.814%, Cap N/A, Floor 1.700%) 144A 7.137%, 7/15/38(2)(5) |
268 | 262 | |
FirstKey
Homes Trust 2020-SFR2, B 144A 1.567%, 10/19/37(2) |
475 | 434 |
Par Value(1) | Value | ||
Non-Agency—continued | |||
Homes
Trust 2023-NQM2, A1 144A 6.456%, 2/25/68(2)(5) |
$ 480 | $ 479 | |
INTOWN
Mortgage Trust 2022-STAY, A (1 month Term SOFR + 2.489%, Cap N/A, Floor 2.489%) 144A 7.812%, 8/15/39(2)(5) |
435 | 436 | |
JPMorgan
Chase Mortgage Trust 2014-5, B2 144A 2.751%, 10/25/29(2)(5) |
163 | 143 | |
Mill
City Mortgage Loan Trust 2017-3, B1 144A 3.250%, 1/25/61(2)(5) |
338 | 272 | |
Morgan
Stanley Bank of America Merrill Lynch Trust 2015-C22, AS 3.561%, 4/15/48 |
220 | 207 | |
New Residential Mortgage Loan Trust | |||
2016-3A,
B1 144A 4.000%, 9/25/56(2)(5) |
163 | 150 | |
2016-4A,
B1A 144A 4.500%, 11/25/56(2)(5) |
482 | 451 | |
ORL
Trust 2023-GLKS, A (1 month Term SOFR + 2.350%, Cap N/A, Floor 2.350%) 144A 7.673%, 10/19/36(2)(5) |
375 | 375 | |
Palisades
Mortgage Loan Trust 2021-RTL1, A1 144A 2.857%, 6/25/26(2)(5) |
150 | 147 | |
Provident
Funding Mortgage Trust 2019-1, A2 144A 3.000%, 12/25/49(2)(5) |
75 | 61 |
Par Value(1) | Value | ||
Non-Agency—continued | |||
Starwood
Mortgage Residential Trust 2021-3, A3 144A 1.518%, 6/25/56(2)(5) |
$ 50 | $ 39 | |
Towd Point Mortgage Trust | |||
2016-4,
B1 144A 3.957%, 7/25/56(2)(5) |
260 | 238 | |
2017-1,
M1 144A 3.750%, 10/25/56(2)(5) |
265 | 249 | |
2017-4,
A2 144A 3.000%, 6/25/57(2)(5) |
171 | 152 | |
2018-6,
A2 144A 3.750%, 3/25/58(2)(5) |
215 | 182 | |
Tricon
Residential Trust 2021-SFR1, B 144A 2.244%, 7/17/38(2) |
150 | 135 | |
TVC
Mortgage Trust 2020-RTL1, M 144A 6.193%, 9/25/24(2)(5) |
500 | 499 | |
VCAT LLC | |||
2021-NPL3,
A1 144A 1.743%, 5/25/51(2)(5) |
216 | 203 | |
2021-NPL4,
A1 144A 1.868%, 8/25/51(2)(5) |
142 | 134 | |
Verus
Securitization Trust 2022-4, A1 144A 4.474%, 4/25/67(2)(5) |
299 | 285 | |
9,029 | |||
Total
Mortgage-Backed Securities (Identified Cost $13,855) |
13,248 | ||
Asset-Backed Securities—11.4% | |||
Automobiles—4.0% | |||
Avis
Budget Rental Car Funding LLC (AESOP) 2019-2A, D 144A 3.040%, 9/22/25(2) |
480 | 462 |
Par Value(1) | Value | ||
Automobiles—continued | |||
DT
Auto Owner Trust 2023-1A, D 144A 6.440%, 11/15/28(2) |
$ 450 | $ 445 | |
GLS Auto Receivables Issuer Trust | |||
2020-3A,
D 144A 2.270%, 5/15/26(2) |
345 | 340 | |
2020-3A,
E 144A 4.310%, 7/15/27(2) |
550 | 537 | |
2023-1A,
B 144A 6.190%, 6/15/27(2) |
439 | 438 | |
LAD Auto Receivables Trust | |||
2021-1A,
D 144A 3.990%, 11/15/29(2) |
470 | 444 | |
2023-2A,
D 144A 6.300%, 2/15/31(2) |
365 | 359 | |
OneMain
Direct Auto Receivables Trust 2022-1A, C 144A 5.310%, 6/14/29(2) |
320 | 309 | |
Santander
Drive Auto Receivables Trust 2022-7, A2 5.810%, 1/15/26 |
131 | 131 | |
Tesla
Auto Lease Trust 2023-A, B 144A 6.410%, 7/20/27(2) |
363 | 364 | |
3,829 | |||
Consumer Loans—0.7% | |||
Affirm
Asset Securitization Trust 2023-B, A 144A 6.820%, 9/15/28(2) |
350 | 352 | |
Marlette
Funding Trust 2023-2A, B 144A 6.540%, 6/15/33(2) |
363 | 363 | |
715 | |||
Par Value(1) | Value | ||
Credit Card—0.5% | |||
Avant
Credit Card Master Trust 2021-1A, A 144A 1.370%, 4/15/27(2) |
$ 480 | $ 453 | |
Other—6.2% | |||
Adams
Outdoor Advertising LP 2023-1, A2 144A 6.967%, 7/15/53(2) |
365 | 364 | |
Aqua Finance Trust | |||
2017-A,
A 144A 3.720%, 11/15/35(2) |
26 | 26 | |
2020-AA,
D 144A 7.150%, 7/17/46(2) |
400 | 348 | |
Arby’s
Funding LLC 2020-1A, A2 144A 3.237%, 7/30/50(2) |
465 | 414 | |
BXG
Receivables Note Trust 2023-A, A 144A 5.770%, 11/15/38(2) |
388 | 384 | |
Conn’s
Receivables Funding LLC 2022-A, B 144A 9.520%, 12/15/26(2) |
217 | 218 | |
FAT
Brands Royalty LLC 2021-1A, A2 144A 4.750%, 4/25/51(2) |
478 | 444 | |
Hardee’s
Funding LLC 2020-1A, A2 144A 3.981%, 12/20/50(2) |
410 | 355 | |
Jersey
Mike’s Funding 2019-1A, A2 144A 4.433%, 2/15/50(2) |
348 | 323 | |
Mariner
Finance Issuance Trust 2020-AA, A 144A 2.190%, 8/21/34(2) |
340 | 332 | |
Octane
Receivables Trust 2023-3A, C 144A 6.740%, 8/20/29(2) |
425 | 429 | |
Oportun
Funding XIV LLC 2021-A, B 144A 1.760%, 3/8/28(2) |
320 | 304 | |
Planet
Fitness Master Issuer LLC 2018-1A, A2II 144A 4.666%, 9/5/48(2) |
513 | 496 |
Par Value(1) | Value | ||
Other—continued | |||
Progress
Residential Trust 2021-SFR6, D 144A 2.225%, 7/17/38(2) |
$ 190 | $ 167 | |
Trinity
Rail Leasing LLC 2019-1A, A 144A 3.820%, 4/17/49(2) |
288 | 272 | |
VFI
ABS LLC 2022-1A, B 144A 3.040%, 7/24/28(2) |
585 | 560 | |
ZAXBY’S
Funding LLC 2021-1A, A2 144A 3.238%, 7/30/51(2) |
531 | 447 | |
5,883 | |||
Total
Asset-Backed Securities (Identified Cost $11,225) |
10,880 | ||
Corporate Bonds and Notes—69.0% | |||
Communication Services—4.1% | |||
Altice
France Holding S.A. 144A 6.000%, 2/15/28(2) |
185 | 75 | |
Altice France S.A. | |||
144A 5.125%, 7/15/29(2) | 125 | 89 | |
144A 5.500%, 10/15/29(2) | 185 | 134 | |
AT&T,
Inc. 5.400%, 2/15/34 |
290 | 287 | |
CSC Holdings LLC | |||
5.250%, 6/1/24 | 145 | 138 | |
144A 7.500%, 4/1/28(2) | 295 | 202 | |
CT
Trust 144A 5.125%, 2/3/32(2) |
550 | 455 | |
DISH DBS Corp. | |||
5.875%, 11/15/24 | 180 | 158 | |
7.750%, 7/1/26 | 170 | 101 | |
Gray
Television, Inc. 144A 7.000%, 5/15/27(2) |
330 | 300 | |
Grupo
Televisa SAB 4.625%, 1/30/26 |
525 | 511 | |
Level
3 Financing, Inc. 144A 3.625%, 1/15/29(2) |
365 | 131 |
Par Value(1) | Value | ||
Communication
Services—continued |
|||
Millennium
Escrow Corp. 144A 6.625%, 8/1/26(2) |
$ 250 | $ 193 | |
Rackspace
Technology Global, Inc. 144A 5.375%, 12/1/28(2) |
275 | 83 | |
Sprint
Capital Corp. 8.750%, 3/15/32 |
235 | 281 | |
Telecomunicaciones
Digitales S.A. 144A 4.500%, 1/30/30(2) |
725 | 597 | |
Telesat
Canada 144A 6.500%, 10/15/27(2) |
180 | 84 | |
T-Mobile
USA, Inc. 5.050%, 7/15/33 |
151 | 146 | |
3,965 | |||
Consumer Discretionary—3.9% | |||
Ashtead
Capital, Inc. 144A 2.450%, 8/12/31(2) |
570 | 445 | |
Carnival
Corp. 144A 7.000%, 8/15/29(2) |
35 | 36 | |
Churchill
Downs, Inc. 144A 6.750%, 5/1/31(2) |
215 | 211 | |
Clarios Global LP | |||
144A 8.500%, 5/15/27(2) | 245 | 246 | |
144A 6.750%, 5/15/28(2) | 25 | 25 | |
Ford
Motor Co. 3.250%, 2/12/32 |
120 | 96 | |
Ford
Motor Credit Co. LLC 7.350%, 3/6/30 |
200 | 208 | |
Jacobs
Entertainment, Inc. 144A 6.750%, 2/15/29(2) |
164 | 147 | |
MDC
Holdings, Inc. 3.966%, 8/6/61 |
440 | 261 | |
Newell
Brands, Inc. 6.625%, 9/15/29 |
227 | 221 | |
Nissan
Motor Acceptance Co. LLC 144A 7.050%, 9/15/28(2) |
210 | 213 |
Par Value(1) | Value | ||
Consumer
Discretionary—continued |
|||
NMG
Holding Co., Inc. 144A 7.125%, 4/1/26(2) |
$ 220 | $ 206 | |
Nordstrom,
Inc. 4.250%, 8/1/31 |
300 | 237 | |
Ontario
Gaming GTA LP 144A 8.000%, 8/1/30(2) |
175 | 177 | |
PetSmart,
Inc. 144A 7.750%, 2/15/29(2) |
285 | 269 | |
Premier
Entertainment Sub LLC 144A 5.625%, 9/1/29(2) |
154 | 111 | |
Royal
Caribbean Cruises Ltd. 144A 9.250%, 1/15/29(2) |
12 | 13 | |
Tapestry,
Inc. 7.850%, 11/27/33 |
325 | 330 | |
Weekley
Homes LLC 144A 4.875%, 9/15/28(2) |
255 | 234 | |
3,686 | |||
Consumer Staples—2.2% | |||
Anheuser-Busch
InBev Worldwide, Inc. 3.500%, 6/1/30 |
305 | 282 | |
BAT
Capital Corp. 7.750%, 10/19/32 |
330 | 365 | |
Central
American Bottling Corp. 144A 5.250%, 4/27/29(2) |
295 | 268 | |
Coty,
Inc. 144A 6.625%, 7/15/30(2) |
230 | 231 | |
Minerva
Luxembourg S.A. 144A 8.875%, 9/13/33(2) |
710 | 716 | |
Pilgrim’s
Pride Corp. 6.250%, 7/1/33 |
230 | 226 | |
2,088 | |||
Par Value(1) | Value | ||
Energy—18.4% | |||
Aker
BP ASA 144A 2.000%, 7/15/26(2) |
$ 263 | $ 240 | |
Alliance
Resource Operating Partners LP 144A 7.500%, 5/1/25(2) |
269 | 268 | |
Ascent
Resources Utica Holdings LLC 144A 8.250%, 12/31/28(2) |
255 | 255 | |
BP
Capital Markets plc 4.875% (6) |
375 | 337 | |
CITGO
Petroleum Corp. 144A 7.000%, 6/15/25(2) |
95 | 94 | |
Civitas
Resources, Inc. 144A 8.750%, 7/1/31(2) |
180 | 186 | |
Columbia Pipelines Operating Co. LLC | |||
144A 6.036%, 11/15/33(2) | 215 | 217 | |
144A 6.714%, 8/15/63(2) | 40 | 41 | |
Coronado
Finance Pty Ltd. 144A 10.750%, 5/15/26(2) |
382 | 398 | |
CrownRock
LP 144A 5.625%, 10/15/25(2) |
255 | 253 | |
Ecopetrol S.A. | |||
4.625%, 11/2/31 | 695 | 554 | |
8.875%, 1/13/33 | 585 | 600 | |
Enbridge,
Inc. 7.625%, 1/15/83 |
345 | 326 | |
Energy
Transfer LP Series H 6.500% (6) |
245 | 229 | |
Fermaca
Enterprises S de RL de C.V. 144A 6.375%, 3/30/38(2) |
703 | 669 | |
Flex
Intermediate Holdco LLC 144A 3.363%, 6/30/31(2) |
175 | 137 | |
Genesis
Energy LP 8.875%, 4/15/30 |
395 | 402 | |
Greensaif
Pipelines Bidco S.a.r.l. 144A 6.129%, 2/23/38(2) |
235 | 235 |
Par Value(1) | Value | ||
Energy—continued | |||
Helix
Energy Solutions Group, Inc. 144A 9.750%, 3/1/29(2) |
$ 185 | $ 185 | |
Hilcorp
Energy I LP 144A 5.750%, 2/1/29(2) |
290 | 273 | |
International Petroleum Corp. | |||
144A, RegS 7.250%, 2/1/27(2)(4) | 200 | 186 | |
144A, RegS 7.250%, 2/1/27(2)(4) | 300 | 279 | |
KazMunayGas National Co. JSC | |||
144A 5.375%, 4/24/30(2) | 310 | 291 | |
144A 5.750%, 4/19/47(2) | 640 | 509 | |
144A 6.375%, 10/24/48(2) | 200 | 170 | |
Kinder
Morgan, Inc. 7.750%, 1/15/32 |
380 | 422 | |
Korea
National Oil Corp. 144A 4.875%, 4/3/28(2) |
200 | 197 | |
Magnolia
Oil & Gas Operating LLC 144A 6.000%, 8/1/26(2) |
270 | 262 | |
Mesquite
Energy, Inc. 144A 7.250%, 2/15/24(2) |
135 | 10 | |
Nabors
Industries Ltd. 144A 7.250%, 1/15/26(2) |
195 | 186 | |
Northriver
Midstream Finance LP 144A 5.625%, 2/15/26(2) |
255 | 248 | |
Occidental
Petroleum Corp. 6.125%, 1/1/31 |
405 | 409 | |
Odebrecht
Oil & Gas Finance Ltd. 144A 0.000% (2)(6)(7)(8) |
154 | 2 | |
Pertamina Persero PT | |||
144A 2.300%, 2/9/31(2) | 1,075 | 874 | |
RegS 6.450%, 5/30/44(4) | 815 | 818 | |
Petroleos
de Venezuela S.A. 144A 6.000%, 5/16/24(2)(3) |
1,820 | 218 |
Par Value(1) | Value | ||
Energy—continued | |||
Petroleos Mexicanos | |||
6.500%, 3/13/27 | $ 930 | $ 836 | |
5.950%, 1/28/31 | 825 | 615 | |
6.700%, 2/16/32 | 935 | 727 | |
6.500%, 6/2/41 | 350 | 220 | |
7.690%, 1/23/50 | 595 | 394 | |
6.375%, 1/23/45 | 1,700 | 1,011 | |
6.350%, 2/12/48 | 520 | 307 | |
Petronas
Capital Ltd. 144A 3.500%, 4/21/30(2) |
555 | 504 | |
Reliance
Industries Ltd. 144A 2.875%, 1/12/32(2) |
760 | 622 | |
State
Oil Co. of the Azerbaijan Republic RegS 6.950%, 3/18/30(4) |
625 | 631 | |
Teine
Energy Ltd. 144A 6.875%, 4/15/29(2) |
250 | 236 | |
Transocean, Inc. | |||
144A 11.500%, 1/30/27(2) | 9 | 9 | |
144A 8.750%, 2/15/30(2) | 214 | 218 | |
Venture
Global Calcasieu Pass LLC 144A 4.125%, 8/15/31(2) |
245 | 211 | |
Viper
Energy, Inc. 144A 7.375%, 11/1/31(2) |
30 | 30 | |
17,551 | |||
Financials—17.9% | |||
Acrisure
LLC 144A 7.000%, 11/15/25(2) |
370 | 365 | |
Allianz
SE 144A 6.350%, 9/6/53(2) |
200 | 200 | |
Allstate
Corp. (The) Series B (3 month Term SOFR + 3.200%) 8.579%, 8/15/53(5) |
391 | 386 | |
American
Express Co. 5.625%, 7/28/34 |
255 | 252 |
Par Value(1) | Value | ||
Financials—continued | |||
Australia
& New Zealand Banking Group Ltd. 144A 4.400%, 5/19/26(2) |
$ 260 | $ 250 | |
Banco
de Credito e Inversiones S.A. 144A 3.500%, 10/12/27(2) |
990 | 916 | |
Banco
Mercantil del Norte S.A. 144A 6.625% (2)(6) |
780 | 645 | |
Banco
Nacional de Comercio Exterior SNC 144A 4.375%, 10/14/25(2) |
510 | 494 | |
Banco
Santander Chile 144A 3.177%, 10/26/31(2) |
150 | 125 | |
Bancolombia
S.A. 4.625%, 12/18/29 |
300 | 270 | |
Bank of America Corp. | |||
5.015%, 7/22/33 | 295 | 280 | |
2.482%, 9/21/36 | 395 | 298 | |
Bank
of New York Mellon Corp. (The) 5.834%, 10/25/33 |
385 | 392 | |
Barclays
plc 7.437%, 11/2/33 |
420 | 447 | |
BBVA
Bancomer S.A. 144A 5.125%, 1/18/33(2) |
700 | 625 | |
Blackstone
Private Credit Fund 2.625%, 12/15/26 |
200 | 176 | |
Blue
Owl Credit Income Corp. 4.700%, 2/8/27 |
259 | 238 | |
BroadStreet
Partners, Inc. 144A 5.875%, 4/15/29(2) |
160 | 146 | |
Brookfield
Finance, Inc. 6.350%, 1/5/34 |
345 | 348 | |
Capital
One Financial Corp. 2.359%, 7/29/32 |
420 | 298 |
Par Value(1) | Value | ||
Financials—continued | |||
Charles
Schwab Corp. (The) Series H 4.000% (6) |
$ 360 | $ 272 | |
Citadel
LP 144A 4.875%, 1/15/27(2) |
270 | 261 | |
Citigroup, Inc. | |||
6.270%, 11/17/33 | 270 | 279 | |
6.174%, 5/25/34 | 204 | 202 | |
Citizens
Bank N.A. 2.250%, 4/28/25 |
250 | 236 | |
Cobra
AcquisitionCo. LLC 144A 6.375%, 11/1/29(2) |
162 | 118 | |
Corebridge
Financial, Inc. 6.875%, 12/15/52 |
337 | 324 | |
Discover
Bank 4.650%, 9/13/28 |
250 | 228 | |
Drawbridge
Special Opportunities Fund LP 144A 3.875%, 2/15/26(2) |
585 | 528 | |
Export-Import
Bank Korea 5.125%, 1/11/33 |
600 | 601 | |
Fifth
Third Bancorp 4.337%, 4/25/33 |
245 | 215 | |
First
American Financial Corp. 4.000%, 5/15/30 |
330 | 286 | |
Global
Atlantic Fin Co. 144A 7.950%, 6/15/33(2) |
137 | 148 | |
Global
Payments, Inc. 2.900%, 5/15/30 |
395 | 336 | |
Goldman Sachs Group, Inc. (The) | |||
3.102%, 2/24/33 | 175 | 144 | |
6.450%, 5/1/36 | 135 | 139 | |
Huntington
Bancshares, Inc. 2.550%, 2/4/30 |
280 | 230 | |
JPMorgan Chase & Co. | |||
5.350%, 6/1/34 | 135 | 132 | |
6.254%, 10/23/34 | 200 | 209 | |
Liberty
Mutual Group, Inc. 144A 4.125%, 12/15/51(2) |
400 | 326 |
Par Value(1) | Value | ||
Financials—continued | |||
Lincoln
National Corp. (3 month LIBOR + 2.040%) 7.717%, 4/20/67(5) |
$ 324 | $ 198 | |
MDGH-GMTN
RSC Ltd. 144A 4.500%, 11/7/28(2) |
750 | 727 | |
MetLife,
Inc. Series G 3.850% (6) |
220 | 207 | |
Midcap
Financial Issuer Trust 144A 6.500%, 5/1/28(2) |
370 | 322 | |
Morgan Stanley | |||
6.342%, 10/18/33 | 290 | 300 | |
5.948%, 1/19/38 | 174 | 169 | |
MSCI,
Inc. 144A 3.625%, 9/1/30(2) |
261 | 227 | |
National
Rural Utilities Cooperative Finance Corp. (3 month Term SOFR + 3.172%) 8.562%, 4/30/43(5) |
165 | 163 | |
Nationstar
Mortgage Holdings, Inc. 144A 5.750%, 11/15/31(2) |
165 | 144 | |
NCR
Atleos Corp. 144A 9.500%, 4/1/29(2) |
184 | 190 | |
Nippon
Life Insurance Co. 144A 6.250%, 9/13/53(2) |
200 | 202 | |
Prudential
Financial, Inc. 6.750%, 3/1/53 |
220 | 219 | |
State
Street Corp. 4.821%, 1/26/34 |
300 | 282 | |
Synchrony Financial | |||
4.875%, 6/13/25 | 65 | 63 | |
3.700%, 8/4/26 | 93 | 85 | |
Toronto-Dominion
Bank (The) 8.125%, 10/31/82 |
435 | 437 | |
UBS Group AG | |||
144A 9.250%(2)(6) | 35 | 37 | |
144A 4.988%, 8/5/33(2) | 310 | 285 | |
Wells Fargo & Co. | |||
5.389%, 4/24/34 | 145 | 140 |
Par Value(1) | Value | ||
Financials—continued | |||
Series
BB 3.900%(6) |
$ 400 | $ 361 | |
17,123 | |||
Health Care—3.8% | |||
Akumin,
Inc. 144A 7.000%, 11/1/25(2)(9) |
235 | 189 | |
Bausch Health Cos., Inc. | |||
144A 6.125%, 2/1/27(2) | 25 | 14 | |
144A 11.000%, 9/30/28(2) | 105 | 66 | |
144A 14.000%, 10/15/30(2) | 20 | 11 | |
Catalent
Pharma Solutions, Inc. 144A 3.500%, 4/1/30(2) |
255 | 213 | |
Cheplapharm
Arzneimittel GmbH 144A 5.500%, 1/15/28(2) |
370 | 343 | |
Community
Health Systems, Inc. 144A 6.125%, 4/1/30(2) |
245 | 137 | |
DENTSPLY
SIRONA, Inc. 3.250%, 6/1/30 |
335 | 287 | |
HCA,
Inc. 5.500%, 6/1/33 |
290 | 285 | |
IQVIA,
Inc. 144A 6.250%, 2/1/29(2) |
250 | 254 | |
Lannett
Co., Inc. 144A 7.750%, 4/15/26(2)(7) |
60 | 3 | |
LifePoint
Health, Inc. 144A 9.875%, 8/15/30(2) |
360 | 350 | |
Surgery Center Holdings, Inc. | |||
144A 6.750%, 7/1/25(2) | 84 | 83 | |
144A 10.000%, 4/15/27(2) | 125 | 126 | |
Team
Health Holdings, Inc. 144A 6.375%, 2/1/25(2) |
220 | 184 | |
Teva
Pharmaceutical Finance Netherlands III B.V. 5.125%, 5/9/29 |
280 | 258 |
Par Value(1) | Value | ||
Health Care—continued | |||
Universal
Health Services, Inc. 2.650%, 1/15/32 |
$ 400 | $ 315 | |
Viatris,
Inc. 2.700%, 6/22/30 |
265 | 215 | |
Zimmer
Biomet Holdings, Inc. 3.550%, 3/20/30 |
325 | 285 | |
3,618 | |||
Industrials—4.5% | |||
Alaska
Airlines Pass-Through Trust 2020-1, A 144A 4.800%, 2/15/29(2) |
340 | 324 | |
Avolon
Holdings Funding Ltd. 144A 4.375%, 5/1/26(2) |
301 | 287 | |
Beacon
Roofing Supply, Inc. 144A 6.500%, 8/1/30(2) |
90 | 90 | |
Boeing Co. (The) | |||
3.750%, 2/1/50 | 215 | 156 | |
5.930%, 5/1/60 | 160 | 155 | |
British
Airways Pass-Through Trust 2021-1, A 144A 2.900%, 9/15/36(2) |
376 | 315 | |
Chart
Industries, Inc. 144A 9.500%, 1/1/31(2) |
200 | 213 | |
Concentrix
Corp. 6.650%, 8/2/26 |
175 | 176 | |
CoStar
Group, Inc. 144A 2.800%, 7/15/30(2) |
481 | 395 | |
GFL
Environmental, Inc. 144A 6.750%, 1/15/31(2) |
15 | 15 | |
Global
Infrastructure Solutions, Inc. 144A 7.500%, 4/15/32(2) |
265 | 231 | |
Hertz
Corp. (The) 144A 5.000%, 12/1/29(2) |
180 | 138 | |
Icahn
Enterprises LP 6.250%, 5/15/26 |
235 | 222 |
Par Value(1) | Value | ||
Industrials—continued | |||
LBM
Acquisition LLC 144A 6.250%, 1/15/29(2) |
$ 250 | $ 209 | |
Neptune
Bidco U.S., Inc. 144A 9.290%, 4/15/29(2) |
175 | 162 | |
Regal
Rexnord Corp. 144A 6.400%, 4/15/33(2) |
371 | 366 | |
Sempra
Global 144A 3.250%, 1/15/32(2) |
405 | 321 | |
United
Airlines Pass-Through Trust 2023-1, A 5.800%, 7/15/37 |
240 | 230 | |
Veralto
Corp. 144A 5.450%, 9/18/33(2) |
210 | 209 | |
VistaJet
Malta Finance plc 144A 9.500%, 6/1/28(2) |
155 | 129 | |
4,343 | |||
Information Technology—2.1% | |||
Booz Allen Hamilton, Inc. | |||
144A 3.875%, 9/1/28(2) | 195 | 179 | |
144A 4.000%, 7/1/29(2) | 220 | 200 | |
CommScope
Technologies LLC 144A 6.000%, 6/15/25(2) |
225 | 177 | |
Consensus Cloud Solutions, Inc. | |||
144A 6.000%, 10/15/26(2) | 35 | 33 | |
144A 6.500%, 10/15/28(2) | 55 | 50 | |
Dell
International LLC 8.100%, 7/15/36 |
243 | 286 | |
GTCR
W-2 Merger Sub LLC 144A 7.500%, 1/15/31(2) |
145 | 148 | |
ION
Trading Technologies S.a.r.l. 144A 5.750%, 5/15/28(2) |
49 | 42 | |
Kyndryl
Holdings, Inc. 3.150%, 10/15/31 |
180 | 143 | |
Leidos,
Inc. 2.300%, 2/15/31 |
390 | 312 |
Par Value(1) | Value | ||
Information
Technology—continued |
|||
Oracle
Corp. 3.850%, 4/1/60 |
$ 185 | $ 127 | |
Viasat,
Inc. 144A 5.625%, 9/15/25(2) |
345 | 330 | |
2,027 | |||
Materials—4.9% | |||
ArcelorMittal
S.A. 6.800%, 11/29/32 |
210 | 216 | |
ASP
Unifrax Holdings, Inc. 144A 5.250%, 9/30/28(2) |
455 | 313 | |
Bayport
Polymers LLC 144A 5.140%, 4/14/32(2) |
370 | 336 | |
Cleveland-Cliffs,
Inc. 144A 6.750%, 3/15/26(2) |
295 | 295 | |
Corp.
Nacional del Cobre de Chile 144A 5.950%, 1/8/34(2) |
235 | 230 | |
Glencore
Funding LLC 144A 2.850%, 4/27/31(2) |
340 | 279 | |
Illuminate
Buyer LLC 144A 9.000%, 7/1/28(2) |
202 | 190 | |
INEOS Quattro Finance 2 plc | |||
144A 3.375%, 1/15/26(2) | 147 | 138 | |
144A 9.625%, 3/15/29(2) | 200 | 206 | |
LSB
Industries, Inc. 144A 6.250%, 10/15/28(2) |
260 | 242 | |
Mauser
Packaging Solutions Holding Co. 144A 7.875%, 8/15/26(2) |
145 | 144 | |
New
Enterprise Stone & Lime Co., Inc. 144A 9.750%, 7/15/28(2) |
405 | 404 | |
OCP S.A. | |||
144A 5.625%, 4/25/24(2) | 660 | 657 | |
144A 3.750%, 6/23/31(2) | 200 | 165 | |
Taseko
Mines Ltd. 144A 7.000%, 2/15/26(2) |
230 | 215 | |
Teck
Resources Ltd. 6.125%, 10/1/35 |
270 | 269 |
Par Value(1) | Value | ||
Materials—continued | |||
Trivium
Packaging Finance B.V. 144A 8.500%, 8/15/27(2) |
$ 259 | $ 235 | |
WR
Grace Holdings LLC 144A 5.625%, 8/15/29(2) |
172 | 145 | |
4,679 | |||
Real Estate—2.3% | |||
Ashton
Woods USA LLC 144A 4.625%, 4/1/30(2) |
340 | 284 | |
EPR Properties | |||
4.750%, 12/15/26 | 260 | 245 | |
3.600%, 11/15/31 | 95 | 74 | |
GLP Capital LP | |||
3.250%, 1/15/32 | 132 | 106 | |
6.750%, 12/1/33 | 135 | 136 | |
Office
Properties Income Trust 4.500%, 2/1/25 |
575 | 512 | |
Ontario
Teachers’ Cadillac Fairview Properties Trust 144A 2.500%, 10/15/31(2) |
285 | 222 | |
Service
Properties Trust 4.500%, 3/15/25 |
290 | 280 | |
VICI Properties LP | |||
4.950%, 2/15/30 | 110 | 102 | |
5.125%, 5/15/32 | 185 | 170 | |
144A 4.625%, 6/15/25(2) | 70 | 68 | |
2,199 | |||
Utilities—4.9% | |||
CMS
Energy Corp. 4.750%, 6/1/50 |
460 | 397 | |
Electricite de France S.A. | |||
144A 6.250%, 5/23/33(2) | 345 | 356 | |
144A 6.900%, 5/23/53(2) | 365 | 376 | |
Enel
Finance International N.V. 144A 7.500%, 10/14/32(2) |
400 | 439 |
Par Value(1) | Value | ||
Utilities—continued | |||
Eskom
Holdings SOC Ltd. 144A 7.125%, 2/11/25(2) |
$ 640 | $ 637 | |
Ferrellgas LP | |||
144A 5.375%, 4/1/26(2) | 90 | 86 | |
144A 5.875%, 4/1/29(2) | 170 | 156 | |
KeySpan
Gas East Corp. 144A 5.994%, 3/6/33(2) |
255 | 250 | |
NRG
Energy, Inc. 144A 7.000%, 3/15/33(2) |
320 | 324 | |
Perusahaan
Perseroan Persero PT Perusahaan Listrik Negara 144A 4.125%, 5/15/27(2) |
950 | 911 | |
Southern
Co. (The) Series 21-A 3.750%, 9/15/51 |
490 | 429 | |
Sunnova
Energy Corp. 144A 5.875%, 9/1/26(2) |
240 | 195 | |
Vistra
Corp. 144A 8.000% (2)(6) |
125 | 122 | |
4,678 | |||
Total
Corporate Bonds and Notes (Identified Cost $72,951) |
65,957 | ||
Leveraged Loans—13.5% | |||
Aerospace—1.0% | |||
Amentum
Government Services Holdings LLC (1 month Term SOFR + 4.000%) 9.331%, 2/15/29(5) |
128 | 128 | |
Brown
Group Holding LLC (1 month Term SOFR + 2.850%) 8.198%, 6/7/28(5) |
162 | 161 |
Par Value(1) | Value | ||
Aerospace—continued | |||
Dynasty Acquisition Co., Inc. | |||
2023,
Tranche B-1 (1 month Term SOFR + 4.000%) 9.348%, 8/24/28(5) |
$ 128 | $ 128 | |
2023,
Tranche B-2 (1 month Term SOFR + 4.000%) 9.348%, 8/24/28(5) |
55 | 55 | |
Kestrel
Bidco, Inc. (1 month Term SOFR + 3.100%) 8.443%, 12/11/26(5) |
149 | 146 | |
Mileage
Plus Holdings LLC (3 month Term SOFR + 5.400%) 10.798%, 6/21/27(5) |
184 | 189 | |
Peraton
Corp. Tranche B, First Lien (1 month Term SOFR + 3.850%) 9.198%, 2/1/28(5) |
147 | 145 | |
Transdigm,
Inc. Tranche J (1 month Term SOFR + 3.250%) 0.000%, 2/14/31(5)(10) |
25 | 25 | |
977 | |||
Chemicals—0.3% | |||
LSF11
A5 Holdco LLC (1 month Term SOFR + 4.350%) 9.698%, 10/15/28(5) |
150 | 148 | |
Nouryon
Finance B.V. (3 month Term SOFR + 4.100%) 9.467%, 4/3/28(5) |
60 | 60 | |
Windsor
Holdings III LLC Tranche B (1 month Term SOFR + 4.500%) 9.820%, 8/1/30(5) |
125 | 125 | |
333 | |||
Par Value(1) | Value | ||
Consumer Non-Durables—0.6% | |||
AI
Aqua Merger Sub, Inc. 2023 0.000%, 7/31/28(5)(10) |
$ 138 | $ 137 | |
DS
Parent, Inc. Tranche B (6 month Term SOFR + 6.000%) 11.337%, 12/8/28(5) |
169 | 168 | |
Kronos
Acquisition Holdings, Inc. Tranche B-1 (3 month Term SOFR + 4.012%) 9.402%, 12/22/26(5) |
294 | 291 | |
596 | |||
Energy—0.8% | |||
GIP
Pilot Acquisition Partners LP (3 month Term SOFR + 3.000%) 8.388%, 10/4/30(5) |
40 | 40 | |
Hamilton
Projects Acquiror LLC (1 month Term SOFR + 4.614%) 9.963%, 6/17/27(5) |
157 | 158 | |
Medallion
Midland Acquisition LLC (3 month Term SOFR + 4.012%) 9.402%, 10/18/28(5) |
156 | 156 | |
Oryx
Midstream Services Permian Basin LLC 2023 (1 month Term SOFR + 3.364%) 8.694% - 8.710%, 10/5/28(5) |
138 | 138 | |
Traverse
Midstream Partners LLC 2023, Tranche B (3 month Term SOFR + 3.850%) 9.240%, 2/16/28(5) |
293 | 292 | |
784 | |||
Par Value(1) | Value | ||
Financials—0.6% | |||
Acrisure
LLC 2023 (3 month Term SOFR + 4.500%) 9.888%, 10/18/30(5) |
$ 100 | $ 100 | |
AssuredPartners, Inc. | |||
2020
(1 month Term SOFR + 3.614%) 0.000%, 2/12/27(5)(10) |
135 | 135 | |
2023
(1 month Term SOFR + 3.750%) 9.098%, 2/12/27(5) |
20 | 20 | |
Asurion
LLC Tranche B-9 (1 month Term SOFR + 3.364%) 8.713%, 7/31/27(5) |
135 | 132 | |
Blackhawk
Network Holdings, Inc. First Lien (3 month Term SOFR + 2.750%) 8.138%, 6/15/25(5) |
152 | 151 | |
538 | |||
Food / Tobacco—1.3% | |||
Del
Monte Foods, Inc. (1 month Term SOFR + 4.350% - 3 month PRIME + 3.250%) 9.698% - 11.750%, 5/16/29(5) |
144 | 142 | |
Froneri
U.S., Inc. Tranche B-2 (1 month Term SOFR + 2.350%) 7.698%, 1/29/27(5) |
224 | 223 | |
Naked
Juice LLC (3 month Term SOFR + 3.350%) 8.740%, 1/24/29(5) |
233 | 218 | |
Pegasus
Bidco B.V. Tranche B-2 (3 month Term SOFR + 4.250%) 9.630%, 7/12/29(5) |
119 | 119 | |
Shearer’s
Foods LLC First Lien (1 month Term SOFR + 3.614%) 8.963%, 9/23/27(5) |
149 | 149 |
Par Value(1) | Value | ||
Food / Tobacco—continued | |||
Sigma
Bidco B.V. Tranche B-7 (1 month Term SOFR + 3.000%) 0.000%, 1/2/28(5)(10) |
$ 279 | $ 270 | |
Triton
Water Holdings, Inc. First Lien (3 month Term SOFR + 3.512%) 8.902%, 3/31/28(5) |
140 | 138 | |
1,259 | |||
Forest Prod / Containers—0.1% | |||
TricorBraun,
Inc. (1 month Term SOFR + 3.364%) 8.713%, 3/3/28(5) |
136 | 133 | |
Gaming / Leisure—0.4% | |||
ECL
Entertainment LLC Tranche B (3 month Term SOFR + 4.750%) 10.140%, 9/3/30(5) |
155 | 154 | |
Ontario
Gaming GTA Ltd. Partnership Tranche B (3 month Term SOFR + 4.250%) 9.640%, 8/1/30(5) |
60 | 60 | |
Playa
Hotels & Resorts B.V. (1 month Term SOFR + 4.250%) 9.580%, 1/5/29(5) |
146 | 146 | |
360 | |||
Health Care—2.2% | |||
Amneal
Pharmaceuticals LLC (1 month Term SOFR + 5.500%) 10.822%, 5/4/28(5) |
140 | 133 | |
Bausch
& Lomb Corp. (1 month Term SOFR + 4.000%) 9.348%, 9/14/28(5) |
100 | 98 |
Par Value(1) | Value | ||
Health Care—continued | |||
CHG
Healthcare Services, Inc. First Lien (1 month Term SOFR + 3.364%) 8.713%, 9/29/28(5) |
$ 107 | $ 106 | |
Gainwell
Acquisition Corp. Tranche B (3 month Term SOFR + 4.100%) 9.490%, 10/1/27(5) |
147 | 142 | |
Hunter
Holdco 3 Ltd. First Lien (3 month Term SOFR + 4.350%) 9.740%, 8/19/28(5) |
114 | 112 | |
IVC
Acquisition Ltd. (1 month Term SOFR + 5.500%) 0.000%, 11/17/28(5)(10) |
95 | 94 | |
Medline
Borrower LP (1 month Term SOFR + 3.114%) 8.463%, 10/23/28(5) |
303 | 303 | |
Phoenix
Guarantor, Inc. Tranche B-1 (1 month Term SOFR + 3.364%) 8.713%, 3/5/26(5) |
134 | 134 | |
Sotera
Health Holdings LLC (1 month Term SOFR + 3.750%) 9.091%, 12/11/26(5) |
65 | 65 | |
Star
Parent, Inc. Tranche B (1 month Term SOFR + 4.000%) 9.386%, 9/28/30(5) |
310 | 303 | |
Sunshine
Luxembourg VII S.a.r.l. Tranche B-3 (3 month Term SOFR + 3.850%) 9.240%, 10/1/26(5) |
141 | 142 | |
Upstream
Newco, Inc. 2021 (1-3 month Term SOFR + 4.512%) 9.713% - 9.895%, 11/20/26(5) |
187 | 173 |
Par Value(1) | Value | ||
Health Care—continued | |||
Viant
Medical Holdings, Inc. First Lien (1 month Term SOFR + 3.864%) 9.213%, 7/2/25(5) |
$ 253 | $ 249 | |
2,054 | |||
Information Technology—2.5% | |||
Applied Systems, Inc. | |||
2026
(3 month Term SOFR + 4.500%) 9.890%, 9/18/26(5) |
134 | 135 | |
Second
Lien (3 month Term SOFR + 6.750%) 12.140%, 9/17/27(5) |
247 | 248 | |
Central
Parent LLC Tranche B (3 month Term SOFR + 4.000%) 9.406%, 7/6/29(5) |
283 | 283 | |
ConnectWise
LLC (1 month Term SOFR + 3.614%) 8.963%, 9/29/28(5) |
83 | 81 | |
Epicor
Software Corp. Tranche C (1 month Term SOFR + 3.364%) 8.713%, 7/30/27(5) |
164 | 164 | |
GTCR
W Merger Sub LLC Tranche B (1 month Term SOFR + 3.000%) 0.000%, 9/20/30(5)(10) |
85 | 85 | |
Indicor
LLC (3 month Term SOFR + 4.500%) 9.890%, 11/22/29(5) |
194 | 194 | |
Mosel
Bidco SE Tranche B (3 month Term SOFR + 4.750%) 10.136%, 9/16/30(5) |
92 | 92 | |
NCR
Atleos LLC Tranche B (1 month Term SOFR + 4.850%) 10.198%, 3/27/29(5) |
300 | 293 |
Par Value(1) | Value | ||
Information
Technology—continued |
|||
Polaris
Newco LLC First Lien (1 month Term SOFR + 4.114%) 9.463%, 6/2/28(5) |
$ 155 | $ 150 | |
Project
Ruby Ultimate Parent Corp. First Lien (1 month Term SOFR + 3.364%) 8.713%, 3/10/28(5) |
194 | 192 | |
RealPage,
Inc. First Lien (1 month Term SOFR + 3.114%) 8.463%, 4/24/28(5) |
146 | 142 | |
Sophia
LP Tranche B (1 month Term SOFR + 3.600%) 8.948%, 10/7/27(5) |
174 | 174 | |
UKG, Inc. | |||
2021,
Second Lien (3 month Term SOFR + 5.350%) 10.764%, 5/3/27(5) |
10 | 10 | |
2021-2,
First Lien (3 month Term SOFR + 3.350%) 8.764%, 5/4/26(5) |
162 | 163 | |
2,406 | |||
Manufacturing—0.8% | |||
Chart
Industries, Inc. Tranche B (1 month Term SOFR + 3.350%) 8.670%, 3/15/30(5) |
144 | 144 | |
CPM
Holdings, Inc. (1 month Term SOFR + 4.500%) 9.827%, 9/28/28(5) |
166 | 166 | |
Filtration
Group Corp. 2021 (1 month Term SOFR + 3.614%) 8.963%, 10/21/28(5) |
220 | 219 |
Par Value(1) | Value | ||
Manufacturing—continued | |||
Safe
Fleet Holdings LLC 2022 (1 month Term SOFR + 3.850%) 9.191%, 2/23/29(5) |
$ 189 | $ 189 | |
718 | |||
Media
/ Telecom - Broadcasting—0.1% |
|||
Terrier
Media Buyer, Inc. 2021, Tranche B (3 month Term SOFR + 3.600%) 8.990%, 12/17/26(5) |
150 | 137 | |
Media
/ Telecom - Cable/Wireless Video—0.4% |
|||
DIRECTV
Financing LLC (1-3 month Term SOFR + 5.262%) 10.463% - 10.650%, 8/2/27(5) |
240 | 236 | |
Eagle
Broadband Investments LLC (3 month Term SOFR + 3.262%) 8.652%, 11/12/27(5) |
144 | 140 | |
376 | |||
Media
/ Telecom - Diversified Media—0.5% |
|||
Century
DE Buyer LLC (3 month Term SOFR + 4.000%) 9.390%, 10/30/30(5) |
108 | 108 | |
McGraw-Hill
Education, Inc. (1 month Term SOFR + 4.864%) 10.213%, 7/28/28(5) |
170 | 167 |
Par Value(1) | Value | ||
Media
/ Telecom - Diversified Media—continued |
|||
Neptune
Bidco U.S., Inc. Tranche B (3 month Term SOFR + 5.100%) 10.507%, 4/11/29(5) |
$ 174 | $ 156 | |
431 | |||
Retail—0.1% | |||
PetsMart
LLC (1 month Term SOFR + 3.850%) 9.198%, 2/11/28(5) |
126 | 124 | |
Service—1.3% | |||
Ascend
Learning LLC (1 month Term SOFR + 3.600%) 8.948%, 12/11/28(5) |
154 | 150 | |
BrightView
Landscapes LLC Tranche B (3 month Term SOFR + 3.250%) 8.633%, 4/20/29(5) |
180 | 179 | |
DG
Investment Intermediate Holdings 2, Inc. 2022 (1 month Term SOFR + 4.750%) 10.098%, 3/31/28(5) |
164 | 163 | |
DXP
Enterprises, Inc. (3 month Term SOFR + 4.850%) 10.291%, 10/15/30(5) |
110 | 110 | |
Garda
World Security Corp. Tranche B-2 (3 month Term SOFR + 4.350%) 9.746%, 10/30/26(5) |
65 | 65 | |
Grab
Holdings, Inc. (1 month Term SOFR + 4.614%) 9.963%, 1/29/26(5) |
76 | 76 | |
Kuehg
Corp. (3 month Term SOFR + 5.000%) 10.390%, 6/12/30(5) |
225 | 225 | |
The
Hertz Corp. 2023 (1 month Term SOFR + 3.750%) 9.080%, 6/30/28(5) |
88 | 87 |
Par Value(1) | Value | ||
Service—continued | |||
TMF
Sapphire Bidco B.V. Tranche B-2 (3 month Term SOFR + 5.000%) 10.414%, 5/3/28(5) |
$ 70 | $ 70 | |
Trugreen
Ltd. Partnership First Lien (1 month Term SOFR + 4.100%) 9.448%, 11/2/27(5) |
150 | 141 | |
1,266 | |||
Transportation - Automotive—0.4% | |||
American
Axle & Manufacturing, Inc. Tranche B, First Lien (1-3 month Term SOFR + 3.600%) 8.921% - 9.007%, 12/13/29(5) |
96 | 96 | |
Clarios
Global LP 2023 (1 month Term SOFR + 3.750%) 9.098%, 5/6/30(5) |
115 | 115 | |
PAI
Holdco, Inc. Tranche B (3 month Term SOFR + 4.012%) 9.395%, 10/28/27(5) |
137 | 126 | |
337 | |||
Utilities—0.1% | |||
Generation
Bridge Northeast LLC Tranche B (1 month Term SOFR + 4.250%) 9.598%, 8/7/29(5) |
70 | 70 | |
Total
Leveraged Loans (Identified Cost $12,875) |
12,899 |
Shares | ||
Preferred Stocks—1.4% | ||
Financials—1.4% | ||
Capital Farm Credit ACA Series 1 144A, 5.000%(2) | 275 (11) | 250 |
Shares | Value | ||
Financials—continued | |||
MetLife, Inc. Series D, 5.875% | 213 (11) | $ 202 | |
Truist Financial Corp. Series Q, 5.100% | 315 (11) | 271 | |
Zions Bancorp NA, 9.561% | 23,200 | 585 | |
1,308 | |||
Total
Preferred Stocks (Identified Cost $1,385) |
1,308 | ||
Common Stocks—0.1% | |||
Consumer Discretionary—0.1% | |||
MYT Holding LLC Class B(7)(12) | 29,850 | 5 | |
NMG Parent LLC(7)(12) | 618 | 68 | |
73 | |||
Total
Common Stocks (Identified Cost $215) |
73 | ||
Total
Long-Term Investments—142.0% (Identified Cost $148,714) |
135,684 | ||
TOTAL
INVESTMENTS—142.0% (Identified Cost $148,714) |
$ 135,684(13) | ||
Other assets and liabilities, net—(42.0)% | (40,106 ) | ||
NET ASSETS—100.0% | $ 95,578 |
Abbreviations: | |
ABS | Asset-Backed Securities |
ACA | American Capital Access Financial Guarantee Corp. |
GMTN | Global Medium Term Note |
JSC | Joint Stock Company |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
MSCI | Morgan Stanley Capital International |
NA | National Association |
SOFR | Secured Overnight Financing Rate |
Footnote Legend: | |
(1) | Par Value disclosed in foreign currency is reported in thousands. |
(2) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2023, these securities amounted to a value of $71,061 or 74.3% of net assets. |
(3) | Security in default; no interest payments are being received. |
(4) | Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933. |
(5) | Variable rate security. Rate disclosed is as of November 30, 2023. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
(6) | No contractual maturity date. |
(7) | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments. |
(8) | Issued with a zero coupon. Income is recognized through the accretion of discount. |
(9) | Security in default; interest payments are being received. |
(10) | This loan will settle after November 30, 2023, at which time the interest rate, calculated on the base lending rate and the agreed upon spread on trade date, will be reflected. |
(11) | Value shown as par value. |
(12) | Non-income producing. |
(13) | All or a portion of securities is segregated as collateral for borrowings. |
Foreign Currencies: | |
BRL | Brazilian Real |
Total
Value at November 30, 2023 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | ||||
Assets: | |||||||
Debt Instruments: | |||||||
U.S. Government Securities | $ 3,008 | $ — | $ 3,008 | $— | |||
Municipal Bonds | 2,158 | — | 2,158 | — | |||
Foreign Government Securities | 26,153 | — | 26,153 | — | |||
Mortgage-Backed Securities | 13,248 | — | 13,248 | — | |||
Asset-Backed Securities | 10,880 | — | 10,880 | — | |||
Corporate Bonds and Notes | 65,957 | — | 65,952 | 5 | |||
Leveraged Loans | 12,899 | — | 12,899 | — | |||
Equity Securities: | |||||||
Preferred Stocks | 1,308 | 585 | 723 | — | |||
Common Stocks | 73 | — | — | 73 | |||
Total Investments | $135,684 | $585 | $135,021 | $78 |
Assets | |
Investment in securities at value (Identified cost
$148,714) |
$ 135,684 |
Cash
|
2,336 |
Receivables | |
Investment securities sold
|
1,235 |
Dividends and
interest |
1,637 |
Prepaid Trustees’
retainer |
1 |
Prepaid expenses and other assets (Note
3) |
44 |
Total
assets |
140,937 |
Liabilities | |
Borrowings (Note
7) |
43,000 |
Payables | |
Investment securities
purchased |
1,638 |
Interest on borrowings (Note
7) |
491 |
Investment advisory fees (Note
3) |
107 |
Trustee deferred compensation plan (Note
3) |
42 |
Professional fees
|
22 |
Administration and accounting
fees |
13 |
Other accrued
expenses |
46 |
Total
liabilities |
45,359 |
Net
Assets |
$ 95,578 |
Net Assets Consist of: | |
Capital paid on shares of beneficial interest (no par value, unlimited
authorization) |
$ 143,094 |
Total distributable earnings (accumulated
losses) |
(47,516) |
Net
Assets |
$ 95,578 |
Common Shares
Outstanding |
11,313,094 |
Net Asset Value Per
Share(a) |
$ 8.45 |
(a) | Net Asset Value Per Share is calculated using unrounded net assets. |
Investment Income | |
Interest
|
$ 8,725 |
Dividends
|
174 |
Total investment
income |
8,899 |
Expenses | |
Investment advisory
fees |
1,361 |
Administration and accounting
fees |
160 |
Professional fees
|
48 |
Printing fees and expenses
|
30 |
Trustees’ fees and
expenses |
19 |
Transfer agent fees and
expenses |
13 |
Custodian fees
|
6 |
Miscellaneous
expenses |
48 |
Total expenses before interest
expense |
1,685 |
Interest expense on borrowings (Note
7) |
2,701 |
Total expenses after interest
expense |
4,386 |
Net investment income
(loss) |
4,513 |
Net Realized and Unrealized Gain (Loss) on Investments | |
Net realized gain (loss) from: | |
Investments |
(7,170) |
Foreign currency
transactions |
2 |
Net change in unrealized appreciation (depreciation) on: | |
Investments |
7,930 |
Foreign currency
transactions |
(—) (1) |
Net realized and unrealized gain (loss) on
investments |
762 |
Net increase (decrease) in net assets resulting from
operations |
$ 5,275 |
(1) | Amount is less than $500 (not in thousands). |
Year
Ended November 30, 2023 |
Year
Ended November 30, 2022 | ||
Increase
(Decrease) In Net Assets From Operations |
|||
Net investment income
(loss) |
$ 4,513 | $ 5,231 | |
Net realized gain
(loss) |
(7,168) | (6,184) | |
Net change in unrealized appreciation
(depreciation) |
7,930 | (19,080) | |
Increase (decrease) in net assets resulting from
operations |
5,275 | (20,033) | |
From Dividends and Distributions to Shareholders | |||
Net investment income and net realized
gains |
(4,629) | (5,220) | |
Return of
capital |
(6,232) | (5,641) | |
Dividends and Distributions to
Shareholders |
(10,861) | (10,861) | |
Net increase (decrease) in net
assets |
(5,586) | (30,894) | |
Net Assets | |||
Beginning of
period |
101,164 | 132,058 | |
End of
period |
$ 95,578 | $101,164 |
Increase (Decrease) in cash | |
Cash flows provided by (used for) operating activities: | |
Net increase (decrease) in net assets resulting from operations
|
$ 5,275 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities: | |
Proceeds from sales and paydowns of long-term investments
|
88,812 |
(Increase) Decrease in investment securities sold receivable
|
(224) |
Purchases of long-term investments
|
(80,697) |
Increase (Decrease) in investment securities purchased payable
|
(132) |
Net (purchases) or sales of short-term
investments |
3,439 |
Net change in unrealized (appreciation)/depreciation
on
investments |
(7,930) |
Net realized (gain)/loss on investments
|
7,170 |
Amortization of premium and accretion of discounts on investments
|
(344) |
(Increase) Decrease in dividends and interest receivable
|
(28) |
(Increase) Decrease in prepaid expenses and other
assets |
(2) |
Increase (Decrease) in interest payable on
borrowings |
139 |
Increase (Decrease) in affiliated expenses
payable |
(4) |
Increase (Decrease) in non-affiliated expenses
payable |
17 |
Cash provided by (used for) operating
activities |
15,491 |
Cash provided by (used for) financing activities: | |
Cash payments to reduce borrowings
|
(2,400) |
Cash distributions paid to shareholders
|
(10,861) |
Cash provided by (used for) financing
activities |
(13,261) |
Net increase (decrease) in
cash |
2,230 |
Cash and foreign currency at beginning of
period |
106 |
Cash and foreign currency at end of
period |
$ 2,336 |
Supplemental cash flow information: | |
Cash paid during the period for interest expense on
borrowings |
$ 2,562 |
Year Ended November 30, | |||||||||
2023 | 2022 | 2021 | 2020 | 2019 | |||||
PER SHARE DATA: | |||||||||
Net asset value, beginning of
period |
$ 8.94 | $ 11.67 | $ 12.55 | $ 13.16 | $ 13.30 | ||||
Income (loss) from investment operations: | |||||||||
Net investment income
(loss)(1) |
0.40 | 0.46 | 0.52 | 0.55 | 0.58 | ||||
Net realized and unrealized gain
(loss) |
0.07 | (2.23) | (0.32) | 0.20 | 0.79 | ||||
Payment from
affiliate |
— | — | — | — | — (2) | ||||
Total from investment
operations |
0.47 | (1.77) | 0.20 | 0.75 | 1.37 | ||||
Dividends and Distributions to Shareholders: | |||||||||
Net investment
income |
(0.41) | (0.46) | (0.52) | (0.51) | (0.49) | ||||
Return of
capital |
(0.55) | (0.50) | (0.56) | (0.85) | (1.02) | ||||
Total dividends and distributions to
shareholders |
(0.96) | (0.96) | (1.08) | (1.36) | (1.51) | ||||
Net asset value, end of
period |
$ 8.45 | $ 8.94 | $ 11.67 | $ 12.55 | $ 13.16 | ||||
Market value, end of
period(3) |
$ 7.35 | $ 8.12 | $ 11.56 | $ 11.69 | $ 12.54 | ||||
Total return, net asset
value(4) |
7.19% | (14.70)% | 1.76% | 7.70% | 11.82% | ||||
Total return, market
value(4) |
2.66% | (21.78)% | 8.22% | 5.28% | 20.61% | ||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||
Ratio of total expenses after interest expense to average net
assets(5) |
4.46% | 2.76% | 2.14% | 2.40% | 3.13% | ||||
Ratio of net investment income (loss) to average net
assets |
4.59% | 4.62% | 4.28% | 4.51% | 4.39% | ||||
Portfolio turnover
rate |
57% | 44% | 54% | 75% | 62% | ||||
Net assets, end of period
(000’s) |
$95,578 | $101,164 | $132,058 | $141,880 | $148,730 | ||||
Borrowings, end of period
(000’s) |
$43,000 | $ 45,400 | $ 52,500 | $ 52,500 | $ 57,000 | ||||
Asset coverage, per $1,000 principal amount of
borrowings(6) |
$ 3,223 | $ 3,228 | $ 3,515 | $ 3,702 | $ 3,609 |
(1) | Calculated using average shares outstanding. |
(2) | Amount is less than $0.005 per share. |
(3) | Closing Price – New York Stock Exchange. |
(4) | Total return on market value is calculated assuming a purchase of common shares on the opening of the first day and sale on the closing of the last day of each period reported. Dividends and distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s Automatic Reinvestment and Cash Purchase Plan. Total return on market value is not annualized for periods of less than one year. Brokerage commissions that a shareholder may pay are not reflected. Total return on market value does not reflect the deduction of taxes that a shareholder may pay on fund distributions or the sale of fund shares. Total return on net asset value uses the same methodology, but with use of net asset value for the beginning and ending values. |
(5) | Ratio of total expenses, before interest expense on borrowings, was 1.71%, 1.74%, 1.74%, 1.74% and 1.86% for the years ended November 30, 2023, 2022, 2021, 2020 and 2019, respectively. |
(6) | Represents value of net assets plus the borrowings at the end of the period divided by the borrowings at the end of the period multiplied by $1,000. |
A. | Security Valuation |
The Fund’s Board of Trustees has designated the investment adviser as the valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Investment Company Act of 1940. The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Fund’s policy is to recognize transfers into or out of Level 3 at the end of the reporting period. |
B. | Security Transactions and Investment Income |
Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income and capital gain distributions are recognized on the ex-dividend date or, in the case of certain |
foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Premiums on callable debt instruments are amortized to interest income to the earliest call date using the effective interest method. | |
Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds. | |
C. | Income Taxes |
It is the Fund’s intention to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to distribute substantially all of its taxable income and capital gains, if any, to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. | |
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. | |
Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. The Fund’s U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State, local and/or non-U.S. tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction. | |
D. | Distributions to Shareholders |
The Fund declares distributions on a monthly basis. Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. | |
Distributions may represent earnings from net investment income, realized capital gains, or, if necessary, return of capital. | |
E. | Foreign Currency Transactions |
Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. For fixed income instruments, the Fund bifurcates that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on foreign currency transactions. For equity securities, the Fund does not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on investments. |
F. | Payment-In-Kind Securities |
The Fund may invest in payment-in-kind securities, which are debt or preferred stock securities that require or permit payment of interest in the form of additional securities. Payment-in-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash. | |
G. | When-Issued Purchases and Forward Commitments (Delayed Delivery) |
The Fund may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by the Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. The Fund records when-issued and forward commitment securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date. | |
H. | Leveraged Loans |
The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. The Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. | |
The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due. | |
The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, SOFR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased the Fund may pay an assignment fee. On an ongoing basis, the Fund may |
receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid. | |
The Fund may invest in both secured loans and “covenant lite” loans which have few or no financial maintenance covenants that would require a borrower to maintain certain financial metrics. The lack of financial maintenance covenants in covenant lite loans increases the risk that the Fund will experience difficulty or delays in enforcing its rights on its holdings of such loans, which may result in losses, especially during a downturn in the credit cycle. | |
I. | Expenses |
Expenses incurred together by the Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to the Fund and each such other fund, or an alternative allocation method, can be more appropriately used. | |
In addition to the net annual operating expenses that the Fund bears directly, the shareholders of the Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests. | |
J. | Cash and Cash Equivalents |
Cash and cash equivalents include deposits held at financial institutions, which are available for the Fund’s use with no restrictions, and are inclusive of dollar denominated and foreign currency. |
A. | Investment Adviser |
Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Fund. The Adviser manages the Fund’s investment program and general operations of the Fund, including oversight of the Fund’s subadviser. | |
As compensation for its services to the Fund, the Adviser receives a fee at an annual rate of 0.95% of the Fund’s average daily Managed Assets, which is calculated daily and paid monthly. “Managed Assets” is defined as the value of the total assets of the Fund minus the sum of all accrued liabilities of the Fund (other than the aggregate amount of any outstanding borrowings or other indebtedness, entered into for the purpose of leverage). | |
B. | Subadviser |
Virtus Fixed Income Advisers, LLC, an indirect, wholly-owned subsidiary of Virtus, acting through its division, Newfleet Asset Management, is the Fund’s subadviser. The subadviser is responsible for the day-to-day portfolio management of the Fund for which it is paid a fee by the Adviser. | |
C. | Administration Services |
Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as administrator to the Fund. For the services provided by the administrator under the |
Administration Agreement, the Fund pays the administrator an asset-based fee calculated on the Fund’s average daily Managed Assets. This fee is calculated daily and paid monthly. | |
For the year ended November 30, 2023, the Fund incurred administration fees totaling $143 which are included in the Statement of Operations within the line item “Administration and accounting fees.” | |
D. | Trustees’ Fees |
For the year ended November 30, 2023, the Fund incurred Trustees’ fees totaling $18, which are included in the Statement of Operations within the line item “Trustees’ fees and expenses.” | |
E. | Investments with Affiliates |
The Fund is permitted to purchase assets from or sell assets to certain related affiliates under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of assets by the Fund from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. | |
During the year ended November 30, 2023, the Fund did not engage in any transactions pursuant to Rule 17a-7 under the 1940 Act. | |
F. | Trustees Deferred Compensation Plan |
The Fund provides a deferred compensation plan for its Trustees who receive compensation from the Fund. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Fund, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Prepaid expenses and other assets” in the Statement of Assets and Liabilities at November 30, 2023. |
Purchases | Sales | ||
$60,201 | $69,710 |
Purchases | Sales | ||
$20,496 | $19,102 |
Federal
Tax Cost |
Unrealized
Appreciation |
Unrealized
(Depreciation) |
Net
Unrealized Appreciation (Depreciation) | ||||
$148,974 | $801 | $(14,091) | $(13,290) |
Short-Term | Long-Term | ||||
$9,751 | $23,130 |
Post-October
Capital Loss Deferred |
Capital
Loss Deferred | |
$ 1,303 | $ 32,881 |
2023 | 2022 | ||
Ordinary
Income |
$ 4,629 | $ 5,220 | |
Return of
Capital |
6,232 | 5,641 | |
Total |
$10,861 | $10,861 |
Outstanding
Borrowings |
Interest
Rate | ||
$43,000 | 6.26% |
Qualified
Dividend Income % (for non-corporate shareholders) |
Dividend
Received Deduction % (for corporate shareholders) |
Long-Term
Capital Gain Distributions ($) | |||
0% | 0% | $0 |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Burke,
Donald C. YOB: 1960 Served Since: 2020, Class II 100 Portfolios |
Private investor (since 2009). Formerly, President and Chief Executive Officer, BlackRock U.S. Funds (2007 to 2009); Managing Director, BlackRock, Inc. (2006 to 2009); and Managing Director, Merrill Lynch Investment Managers (1990 to 2006). | Trustee (since May 2023) and Advisory Board Member (May 2023), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Advisory Board Member (since May 2023), Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II and Virtus Diversified Income & Convertible Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (50 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2014) closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director, Avista Corp. (energy company) (since 2011); Trustee, Goldman Sachs Fund Complex (2010 to 2014); and Director, BlackRock Luxembourg and Cayman Funds (2006 to 2010). |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Cogan,
Sarah E. YOB: 1956 Served Since: 2021, Class II 97 Portfolios |
Retired Partner, Simpson Thacher & Bartlett LLP (“STB”) (law firm) (since 2019); Director, Girl Scouts of Greater New York (since 2016); Trustee, Natural Resources Defense Council, Inc. (since 2013); and formerly, Partner, STB (1989 to 2018). | Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (50 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2019), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; and Trustee (since 2019), PIMCO Closed-End Funds* (30 portfolios). |
DeCotis,
Deborah A. YOB: 1952 Served Since: 2021, Class I 97 Portfolios |
Director, Cadre Holdings Inc. (since 2022); Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); and Trustee, Smith College (since 2017). Formerly, Director, Watford Re (2017 to 2021); Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005 to 2015); and Trustee, Stanford University (2010 to 2015). | Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (50 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2017), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Diversified Income & Convertible Fund; Trustee (since 2014), Virtus Investment Trust (13 portfolios); Trustee (since 2011), Virtus Strategy Trust (8 portfolios); Trustee (since 2011), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; and Trustee (since 2011), PIMCO Closed-End Funds* (30 portfolios). |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Drummond,
F. Ford YOB: 1962 Served Since: 2021, Class III 97 Portfolios |
President (since 1998), F.G. Drummond Ranches, Inc.; and Director (since 2015), Texas and Southwestern Cattle Raisers Association. Formerly, Chairman, Oklahoma Nature Conservancy (2019 to 2020); Trustee (since 2014), Frank Phillips Foundation; Trustee (since 2008), Oklahoma Nature Conservancy; Board Member (2006 to 2020) and Chairman (2016 to 2018), Oklahoma Water Resources Board; Director (1998 to 2008), The Cleveland Bank; and General Counsel (1998 to 2008), BMIHealth Plans (benefits administration). | Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (50 portfolios), and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2017), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2014), Virtus Strategy Trust (8 portfolios); Director (since 2011), Bancfirst Corporation; and Trustee (since 2006), Virtus Investment Trust (13 portfolios). |
Harris,
Sidney E. YOB: 1949 Served Since: 2020, Class II 90 Portfolios |
Private Investor (since 2021); Dean Emeritus (since 2015), Professor (2015 to 2021 and 1997 to 2014), and Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University. | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2019), Mutual Fund Directors Forum; Trustee (since 2017), Virtus Mutual Fund Family (50 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (4 portfolios); Trustee (2013 to 2020) and Honorary Trustee (since 2020), KIPP Metro Atlanta; Director (1999 to 2019), Total System Services, Inc.; Trustee (2004 to 2017), RidgeWorth Funds; Chairman (2012 to 2017), International University of the Grand Bassam Foundation; Trustee (since 2012), International University of the Grand Bassam Foundation; and Trustee (2011 to 2015), Genspring Family Offices, LLC. |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Mallin,
John R. YOB: 1950 Served Since: 2020, Class II 90 Portfolios |
Partner/Attorney (since 2003), McCarter & English LLP (law firm) Real Property Practice Group; and Member (2014 to 2022), Counselors of Real Estate. | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (50 portfolios) and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2019), 1892 Club, Inc. (non-profit); Director (2013 to 2020), Horizons, Inc. (non-profit); and Trustee (since 1999), Virtus Variable Insurance Trust (8 portfolios). |
McDaniel,
Connie D. YOB: 1958 Served Since: 2020, Class III 97 Portfolios |
Retired (since 2013). Vice President, Chief of Internal Audit, Corporate Audit Department (2009 to 2013); Vice President Global Finance Transformation (2007 to 2009); and Vice President and Controller (1999 to 2007), The Coca-Cola Company. | Trustee (since May 2023) and Advisory Board Member (May 2023), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Director (since 2019), Global Payments Inc.; Chairperson (since 2021), Governance & Nominating Committee, Global Payments Inc.; Trustee (since 2017), Virtus Mutual Fund Family (50 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2021), North Florida Land Trust; Director (2014 to 2019), Total System Services, Inc.; Member (2011 to 2022) and Chair (2014 to 2016), Georgia State University, Robinson College of Business Board of Advisors; and Trustee (2005 to 2017), RidgeWorth Funds. |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
McLoughlin,
Philip R. YOB: 1946 Served Since: 2011, Class III Chairman 100 Portfolios |
Private investor since 2010. | Trustee and Chairman (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee and Chairman (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee and Chairman (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Chairman (since 2023) and Trustee (since 2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund and Virtus Dividend, Interest & Premium Strategy Fund; Chairman (since 2023), Trustee (since 2022) and Advisory Board Member (2021), Virtus Convertible & Income 2024 Target Term Fund and Virtus Convertible & Income Fund; Director and Chairman (since 2016), Virtus Total Return Fund Inc.; Director and Chairman (2016 to 2019), the former Virtus Total Return Fund Inc.; Director and Chairman (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and Chairman (since 2013), Virtus Alternative Solutions Trust (4 portfolios); Trustee and Chairman (since 2011), Virtus Global Multi-Sector Income Fund; Chairman and Trustee (since 2003), Virtus Variable Insurance Trust (8 portfolios); Director (since 1995), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director (1991 to 2019) and Chairman (2010 to 2019), Lazard World Trust Fund (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (50 portfolios). |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
McNamara,
Geraldine M. YOB: 1951 Served Since: 2020, Class I 100 Portfolios |
Private investor (since 2006); and Managing Director, U.S. Trust Company of New York (1982 to 2006). | Trustee (since May 2023) and Advisory Board Member (January 2023 to May 2023), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2023), Virtus Artificial Intelligence & Technology Opportunities Fund and Virtus Equity & Convertible Income Fund; Advisory Board Member (since 2023), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016) Virtus Alternative Solutions Trust (4 portfolios); Trustee (since 2015), Virtus Variable Insurance Trust (8 portfolios); Director (since 2003), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); and Trustee (since 2001), Virtus Mutual Fund Family (50 portfolios). |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Walton,
R. Keith YOB: 1964 Served Since: 2016, Class I 97 Portfolios |
Senior Adviser (since 2022), Brightwood Capital LLC; Venture and Operating Partner (2020 to 2021), Plexo Capital, LLC; Venture Partner (2019 to 2021) and Senior Adviser (2018 to 2019), Plexo, LLC; and Partner (since 2006), Global Infrastructure Partners. Formerly, Managing Director (2020 to 2021), Lafayette Square Holding Company LLC; Senior Adviser (2018 to 2019), Vatic Labs, LLC; Executive Vice President, Strategy (2017 to 2019), Zero Mass Water, LLC; and Vice President, Strategy (2013 to 2017), Arizona State University. | Trustee (since September 2023) and Advisory Board Member (2022 to September 2023), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since May 2023) and Advisory Board Member (2022 to May 2023), Virtus Convertible & Income Fund II and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since July 2022) and Advisory Board Member (January 2022 to July 2022), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), Virtus Diversified Income & Convertible Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2020) Virtus Alternative Solutions Trust (4 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (50 portfolios); Director (since 2017), certain funds advised by Bessemer Investment Management LLC; Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (2006 to 2019), Systematica Investments Limited Funds; Director (2006 to 2017), BlueCrest Capital Management Funds; Trustee (2014 to 2017), AZ Service; Director (since 2004), Virtus Total Return Fund Inc.; and Director (2004 to 2019), the former Virtus Total Return Fund Inc. |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal Occupation(s) During Past 5 Years | Other Trusteeships Held by Trustee |
Zino,
Brian T. YOB: 1952 Served Since: 2016, Class I 97 Portfolios |
Retired. Various roles at J. & W. Seligman & Co. Incorporated (1982 to 2009), including President (1994 to 2009). | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2022) and Advisory Board Member (2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2020) Virtus Alternative Solutions Trust (4 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (50 portfolios); Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (since 2014), Virtus Total Return Fund Inc.; Director (2014 to 2019), the former Virtus Total Return Fund Inc.; Trustee (since 2011), Bentley University; Director (1986 to 2009) and President (1994 to 2009), J&W Seligman Co. Inc.; Director (1998 to 2009), Chairman (2002 to 2004) and Vice Chairman (2000 to 2002), ICI Mutual Insurance Company; Member, Board of Governors of ICI (1998 to 2008). |
Name, Year of Birth,
Length of Time Served, and Number of Portfolios in Fund Complex Overseen by Trustee |
Principal
Occupation(s) During Past 5 Years |
Other Trusteeships Held by Trustee |
Aylward,
George R.** Trustee and President YOB: 1964 Served Since: 2014, Class lll 104 Portfolios |
Director, President and Chief Executive Officer (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various senior officer positions with Virtus affiliates (since 2005). | Director (since 2023), Stone Harbor Investment Funds plc (21 sub-funds), Stone Harbor Global Funds plc (27 sub-funds) and Virtus Global Funds ICAV (5 portfolios); Trustee, President and Chief Executive Officer (since 2022), Virtus Stone Harbor Emerging Markets Income Fund; Trustee, President and Chief Executive Officer (2022 to 2023), Virtus Stone Harbor Emerging Markets Total Income Fund; Member, Board of Governors of the Investment Company Institute (since 2021); Trustee and President (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Chairman and Trustee (since 2015), Virtus ETF Trust II (7 portfolios); Director, President and Chief Executive Officer (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and President (since 2013), Virtus Alternative Solutions Trust (4 portfolios); Director (since 2013), Virtus Global Funds, plc (5 portfolios); Trustee (since 2012) and President (since 2010), Virtus Variable Insurance Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2011), Virtus Global Multi-Sector Income Fund; Trustee and President (since 2006) and Executive Vice President (2004 to 2006), Virtus Mutual Fund Family (50 portfolios); Director, President and Chief Executive Officer (since 2006), Virtus Total Return Fund Inc.; and Director, President and Chief Executive Officer (2006 to 2019), the former Virtus Total Return Fund Inc. |
Name and Year of Birth | Position(s) Held with
Fund and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Batchelar,
Peter J. YOB: 1970 |
Senior Vice President (since 2017) and Vice President (2016 to 2017). | Senior Vice President, Product Development (since 2017), Vice President, Product Development (2008 to 2017) and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Bradley,
W. Patrick YOB: 1972 |
Executive Vice President (since 2016); Senior Vice President (2013 to 2016); Vice President (2011 to 2013); and Chief Financial Officer and Treasurer (since 2011). | Executive Vice President, Fund Services (since 2016), Senior Vice President, Fund Services (2010 to 2016) and various officer positions (since 2004), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Director (since 2023), Stone Harbor Investment Funds plc and Stone Harbor Global Funds plc; Director (since 2019), Virtus Global Funds ICAV; Director (since 2013), Virtus Global Funds, plc; various officer positions (since 2006) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Member (since 2022), BNY Mellon Asset Servicing Client Advisory Board. |
Branigan,
Timothy YOB: 1976 |
Vice President and Fund Chief Compliance Officer (since 2022) and Assistant Vice President and Deputy Fund Chief Compliance Officer (March to May 2022). | Various officer positions (since 2019) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Chisolm,
Daphne YOB: 1969 |
Vice President, Counsel and Assistant Secretary (since 2023). | Vice President and Senior Counsel (since 2023), Virtus Investment Partners, Inc.; Attorney at Law engaged in private practice as a solo practitioner (2018 to 2023); and various officer positions (since 2023) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Fromm,
Jennifer YOB: 1973 |
Vice President, Chief Legal Officer, Counsel and Secretary (since 2020). | Vice President (since 2016) and Senior Counsel, Legal (since 2007) and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Hackett,
Amy YOB: 1968 |
Vice President (since 2013) and Assistant Treasurer (since 2011). | Vice President (since 2010) and Assistant Vice President (2007 to 2010), Fund Services, Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2007) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Krishnan,
Suneeta YOB: 1965 |
Vice President (since 2018) and Assistant Treasurer (since 2011). | Vice President (since 2017) and Assistant Treasurer (since 2007), Mutual Fund Administration, Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2009) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Name and Year of Birth | Position(s) Held with
Fund and Length of Time Served |
Principal Occupation(s) During Past 5 Years |
Rahman,
Mahmood YOB: 1967 |
Assistant Vice President (since 2021). | Vice President (since 2023), Tax Director (since 2020) and Assistant Vice President, Fund Administration (2020 to 2023), Virtus Investment Partners, Inc.; Assistant Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Assistant Treasurer and Tax Director, Grantham, Mayo, Van Otterloo & Co. LLC (2007 to 2019). |
Short,
Julia R. YOB: 1972 |
Senior Vice President (since 2018). | Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017). |
Smirl,
Richard W. YOB: 1967 |
Executive Vice President (since 2021). | Chief Operating Officer (since 2021), Virtus Investment Partners, Inc.; Executive Vice President (since 2021), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Chief Operating Officer (2018 to 2021), Russell Investments; Executive Director (Jan. to July 2018), State of Wisconsin Investment Board; and Partner and Chief Operating Officer (2004 to 2018), William Blair Investment Management. |
Thaker,
Nikita K. YOB: 1978 |
Vice President and Controller (since 2021) and Assistant Treasurer (since 2017). | Vice President (since 2021) and Assistant Vice President (2016 to 2021), Mutual Fund Administration, Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2013) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
Shareholder Services | 1-866-270-7788 |
8528 | 01-24 |
Item 1. Reports to Stockholders (cont.).
(b) | Not applicable. |
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
(a)(1) | The Registrant’s Board of Trustees has determined that the Registrant has an “audit committee financial expert” serving on its Audit Committee. |
(a)(2) | As of the end of the period covered by the report, the Registrant’s Board of Trustees has determined that each of Donald C. Burke, Connie D. McDaniel and Brian T. Zino is qualified to serve as an “audit committee financial expert” serving on its audit committee and that each is an “independent” Trustee, as defined by Item 3 of Form N-CSR. |
(a)(3) | Not Applicable. |
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $33,881 for 2023 and $33,055 for 2022. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $7,931 for 2023 and $4,724 for 2022. Such audit-related fees include out of pocket expenses. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $3,504 for 2023 and $4,078 for 2022. |
“Tax Fees” are those primarily associated with review of the Fund’s tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Fund’s financial statement, review of year-end distributions by the Fund to avoid excise tax for the Fund, periodic discussion with management on tax issues affecting the Fund and reviewing and signing the Fund’s federal income tax returns.
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2023 and $0 for 2022. |
(e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
The Virtus Global Multi-Sector Income Fund (the “Fund”) Board has adopted policies and procedures with regard to the pre-approval of services provided by PwC. Audit, audit-related and tax compliance services provided to the Fund on an annual basis require specific pre-approval by the Board. As noted above, the Board must also approve other non-audit services provided to the Fund and those non-audit services provided to the Fund’s Affiliate Service Providers that related directly to the operations and financial reporting of the Fund. Certain of these non-audit services that the Board believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent auditors may be approved by the Board without consideration on a specific case-by-case basis (“general pre-approval”).
The Audit Committee has determined that the Chair of the Audit Committee, may provide pre-approval for such services that meet the above requirements but are not included in the general pre-approval in the event such approval is sought between regularly scheduled meetings. In any event, the Board is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) 0%
(c) 0%
(d) N/A
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $3,504 for 2023 and $4,078 for 2022. |
(h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
(i) | Not applicable. |
(j) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
(a) | The registrant has a separately designated audit committee. During the period covered by the report, the members of the audit committee were: Donald C. Burke, Deborah A. DeCotis, John R. Mallin, Connie D. McDaniel and Brian T. Zino. |
(b) | Not applicable. |
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
The Fund has adopted a Policy Regarding Proxy Voting (the “Policy”) stating the Fund’s intention to exercise stock ownership rights with respect to portfolio securities in a manner that is reasonably anticipated to further the best economic interests of shareholders of the Fund. The Fund or its voting delegates will endeavor to analyze and vote all proxies that are likely to have financial implications, and where appropriate, to participate in corporate governance, shareholder proposals, management communications and legal proceedings. The Fund or its voting delegates must also identify potential or actual conflicts of interest in voting proxies and must address any such conflict of interest in accordance with the Policy.
In the absence of a specific direction to the contrary from the Board, the Adviser or the subadviser that is managing the Fund is responsible for voting proxies for such fund, or for delegating such responsibility to a qualified, independent organization engaged by the Adviser or respective subadviser to vote proxies on its behalf. The applicable voting party will vote proxies in accordance with the Policy or its own policies and procedures, which must be reasonably designed to further the best economic interests of the affected fund shareholders. Because the Policy and the applicable voting party’s policies and procedures used to vote proxies for the funds both are designed to further the best economic interests of the affected fund shareholders, they are not expected to conflict with one another although the types of factors considered by the applicable voting party under its own policies and procedures may be in addition to or different from the ones listed below for the Policy.
The Policy specifies the types of factors to be considered when analyzing and voting proxies on certain issues when voting in accordance with the Policy, including, but not limited to:
• | Anti-takeover measures – the overall long-term financial performance of the target company relative to its industry competition. |
• | Corporate Governance Matters – tax and economic benefits of changes in the state of incorporation; dilution or improved accountability associated with changes in capital structure. |
• | Contested elections – the qualifications of all nominees; independence and attendance record of board and key committee members; entrenchment devices in place that may reduce accountability. |
• | Stock Option and Other Management Compensation Issues—executive pay and spending on perquisites, particularly in conjunction with sub-par performance and employee layoffs. |
• | Shareholder proposals – whether the proposal is likely to enhance or protect shareholder value; whether identified issues are more appropriately or effectively addressed by legal or regulatory changes; whether the issuer has already appropriately addressed the identified issues; whether the proposal is unduly burdensome or prescriptive; whether the issuer’s existing approach to the identified issues is comparable to industry best practice. |
The Fund and its voting delegates seek to avoid actual or perceived conflicts of interest of Fund shareholders, on the one hand, and those of the Adviser, subadviser, other voting delegate, Distributor, or any affiliated person of the Fund, on the other hand.
Depending on the type and materiality, the Board or its delegates may take the following actions, among others, in addressing any material conflicts of interest that arise with respect to voting (or directing voting delegates to vote): (i) rely on the recommendations of an established, independent third party proxy voting vendor; (ii) vote pursuant to the recommendation of the proposing delegate; (iii) abstain; (iv) where two or more delegates provide conflicting requests, vote shares in proportion to the assets under management of each proposing delegate; (v) vote shares in the same proportion as the vote of all other shareholders of such issuer; or (vi) the Adviser may vote proxies where the subadviser has a direct conflict of interest. The Policy requires each Adviser/subadviser that is a voting delegate to notify the Chief Compliance Officer of the Fund (or, in the case of a subadviser, the Chief Compliance Officer of the Adviser) of any actual or potential conflict of interest that is identified, and provide a recommended course of action for protecting the best interests of the affected fund’s shareholders. No Adviser/subadviser or other voting delegate may waive any conflict of interest or vote any conflicted proxies without the prior written approval of the Board (or the Executive Committee thereof) or the Chief Compliance Officer of the Fund.
The Policy further imposes certain record-keeping and reporting requirements on each Adviser/subadviser or other voting delegate.
Information regarding how the funds voted proxies relating to portfolio securities during the most recent 12-month period ended September 30 will be available, no later than August 31 of each year, free of charge by calling, toll-free, 866.270.7788, or on the SEC’s Web site at www.sec.gov.
During the period of the report, any proxies for the Fund were handled by the Fund’s subadviser, Newfleet Asset Management, a division of Virtus Fixed Income Advisers, LLC (“Newfleet”). Following is a summary of Newfleet’s proxy voting policies.
Newfleet
Although the nature of Newfleet’s portfolios is such that ballots are rarely required, Newfleet has adopted pre-determined proxy voting guidelines (the “Guidelines”) to make every effort to ensure the manner in which shares are voted is in the best interest of its clients and the value of the investment. Under the Guidelines, Newfleet sometimes delegates to a non-affiliated third party vendor the responsibility to review proxy proposals and make voting recommendations on behalf of Newfleet. Newfleet may also vote a proxy contrary to the Guidelines if it determines that such action in the best interest of its clients including the Fund.
A complete copy of Newfleet’s current Proxy Voting Policies & Procedures is available by sending a written request to Newfleet Asset Management, LLC, Attn: Compliance Department, One Financial Plaza, Hartford, CT 06103. Email requests may be sent to: james.sena@virtus.com.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
The names, titles, and length of service of the person or persons employed by or associated with the registrant or an investment adviser of the registrant who are primarily responsible for the day-to-day management of the registrant’s portfolio (“Portfolio Manager”) and each Portfolio Manager’s business experience during the past 5 years as of the date of filing of this report:
(a)(1) | Identification of Portfolio Manager(s) or Management Team Members and Description of Role of Portfolio Manager(s) or Management Team Members |
Newfleet Asset Management, a division of Virtus Fixed Income Advisers, LLC
David L. Albrycht, CFA. David Albrycht is president and chief investment officer of Newfleet, an affiliated manager of Virtus Investment Partners (“Virtus”). Prior to joining Newfleet in 2011, Mr. Albrycht was executive managing director and senior portfolio manager with Goodwin Capital Advisers, a former affiliate of Virtus. He joined the Goodwin multi-sector fixed income team in 1985 as a credit analyst and has managed fixed income portfolios since 1991.
Mr. Albrycht has been a portfolio manager of the Fund since its inception, Virtus Newfleet Multi-Sector Short Term Bond Fund since 1993, Virtus Newfleet Multi-Sector Intermediate Bond Fund since 1994, Virtus Newfleet Senior Floating Rate Fund since 2008, Virtus Tactical Allocation Fund and Virtus Newfleet High Yield Fund since 2011, Virtus Newfleet Core Plus Bond Fund and Virtus Newfleet Low Duration Income Fund since 2012. He also co-manages two variable investment options and is co-manager of another closed-end fund, Virtus Total Return Fund (NYSE: ZTR). He also is a manager of four exchange-traded funds, AdvisorShares Newfleet Multi-Sector Income ETF (NYSE: MINC), Virtus Newfleet Multi-Sector Bond ETF (NFLT), Virtus Newfleet High Yield Bond ETF (BLHY), and Virtus Newfleet ABS/MBS ETF (VABS), and two offshore funds, the Virtus GF Multi-Sector Short Duration Bond Fund and Virtus GF Multi-Sector Income Fund. He is also responsible for the structuring and management of Newfleet’s CLO platform.
Mr. Albrycht earned a B.A., cum laude, from Central Connecticut State University and an M.B.A., with honors, from the University of Connecticut. He is a Chartered Financial Analyst® (CFA®) charterholder and has been working in the investment industry since 1985.
Benjamin Caron, CFA. Ben Caron is a senior managing director and portfolio manager at Newfleet. In addition to the Fund, Mr. Caron is co-portfolio manager of the Virtus Newfleet Low Duration Core Plus Bond Fund, and two actively managed ETFs: AdvisorShares Newfleet Multi-Sector Income ETF (NYSE: MINC), and Virtus Newfleet Multi-Sector Bond ETF (NYSE: NFLT). He also assists in the management of Virtus Newfleet Multi-Sector Short Term Bond Fund, Virtus Newfleet Multi-Sector Intermediate Bond Fund, Virtus Tactical Allocation Fund, two variable insurance investment options and the closed-end Virtus Total Return Fund Inc. (NYSE: ZTR).
Prior to joining Newfleet in 2011, Mr. Caron was on the fixed income team at Goodwin Capital Advisers, a former Virtus investment management subsidiary. He joined Goodwin Capital in 2002 as a client service associate for the institutional markets group focusing on institutional fixed income clients. Earlier in his career, he was with Fidelity Investments, where he was responsible for client management and sales in the managed account group.
Mr. Caron earned a B.A. from Syracuse University and an M.B.A. from Suffolk University. He is a Chartered Financial Analyst® (CFA®) charterholder and has been working in the investment industry since 1997.
Kyle A. Jennings, CFA. Kyle Jennings is a senior managing director and the head of credit research at Newfleet. Mr. Jennings is also co-portfolio manager of Virtus Newfleet Senior Floating Rate Fund and Virtus Newfleet High Yield Fund.
Mr. Jennings has been a member of Newfleet’s corporate credit research team since 1998 and currently covers the gaming, healthcare, and pharmaceutical industries. He is also a member of the team that formulates the leveraged finance strategy for the multi-sector fixed income strategies. In addition, Mr. Jennings is responsible for the structuring and management of Newfleet’s CLO platform.
Prior to joining Newfleet in 2011, Mr. Jennings was on the fixed income team at Goodwin Capital Advisers, a former Virtus investment management subsidiary. Before that, he was a credit research analyst in the banking industry for Shawmut Bank, Ironwood Capital, and Citizens Bank.
Mr. Jennings earned a B.S. in finance from the University of Connecticut and is a Chartered Financial Analyst® (CFA®) charterholder. He began his career in the investment industry in 1992.
Daniel Senecal, CFA. Daniel Senecal is a managing director and credit analyst at Newfleet. Mr. Senecal is a sector manager within the emerging markets analyzing both sovereign and corporate debt.
Prior to joining Newfleet in 2011, Mr. Senecal was on the fixed income team at Goodwin Capital Advisers, a former Virtus investment management subsidiary. He began at Goodwin Capital in 1997 as a corporate credit research analyst, followed by several roles, including sector manager for investment grade corporate credit and sovereign credit. He was also the lead portfolio manager for the Phoenix High Yield Fund from 2003 until 2005 and the Phoenix Emerging Market Fund from 2004 to 2005.
Earlier in his career, Mr. Senecal completed a formal credit training program at Shawmut National Bank where he was a credit research analyst and lender. He also worked at BankBoston as a corporate bond analyst.
Mr. Senecal earned a B.A. in economics and English from Assumption College and an M.B.A. in finance from the University of Connecticut. He is a Chartered Financial Analyst® (CFA®) charterholder, and he began his career in the investment industry in 1990.
(a)(2) | Other Accounts Managed by Portfolio Manager(s) or Management Team Member |
There may be certain inherent conflicts of interest that arise in connection with the portfolio managers’ management of the Fund’s investments and the investments of any other accounts they manage. Such conflicts could include the aggregation of orders for all accounts managed by a particular portfolio manager, the allocation of purchases across all such accounts, the allocation of IPOs and any soft dollar arrangements that the adviser/subadviser may have in place that could benefit the Fund and/or such other accounts. The Board of Trustees has adopted policies and procedures designed to address any such conflicts of interest to ensure that all transactions are executed in the best interest of the Fund’s shareholders. Each adviser/subadviser is required to certify its compliance with these procedures on a quarterly basis. There have been no material compliance issues with respect to any of these policies and procedures during the Fund’s most recent fiscal year. Additionally, there are no material conflicts of interest between the investment strategy of the Fund and the investment strategy of other accounts managed by portfolio managers since the portfolio managers generally manage funds and other accounts having similar investment strategies.
The following table provides information as of November 30, 2023, regarding any other accounts managed by the portfolio managers and portfolio management team members for the Fund. As noted in the table, the portfolio managers managing the Fund may also manage or be members of management teams for other mutual funds within the Virtus Fund complex or other similar accounts.
Manager or Team Member |
Type of Accounts |
Total No. of Accounts Managed |
Total Assets (in millions) |
No. of Accounts where Advisory Fee is Based on Performance |
Total Assets in Accounts where Advisory Fee is Based on Performance (in millions) |
|||||||||||||
David L. Albrycht |
Registered Investment Companies: |
17 | $ | 7,525.3 | 1 | $ | 144.9 | |||||||||||
Other Pooled Investment Vehicles: |
2 | $ | 109.5 | 0 | 0 | |||||||||||||
Other Accounts: |
0 | 0 | 0 | 0 | ||||||||||||||
Benjamin Caron |
Registered Investment Companies: |
5 | $ | 1,062.5 | 0 | 0 | ||||||||||||
Other Pooled Investment Vehicles: |
0 | 0 | 0 | 0 | ||||||||||||||
Other Accounts: |
0 | 0 | 0 | 0 | ||||||||||||||
Kyle A. Jennings |
Registered Investment Companies: |
4 | $ | 993.4 | 0 | 0 | ||||||||||||
Other Pooled Investment Vehicles: |
0 | 0 | 0 | 0 | ||||||||||||||
Other Accounts: |
0 | 0 | 0 | 0 | ||||||||||||||
Daniel Senecal |
Registered Investment Companies: |
1 | $ | 143.3 | 0 | 0 | ||||||||||||
Other Pooled Investment Vehicles: |
0 | 0 | 0 | 0 | ||||||||||||||
Other Accounts: |
0 | 0 | 0 | 0 |
(a)(3) Compensation Structure of Portfolio Manager(s) or Management Team Members
Virtus, along with certain of its affiliated investment management firms, including Newfleet (collectively, “Virtus”), believes that the firm’s compensation program is adequate and competitive to attract and retain high-caliber investment professionals. Investment professionals at Virtus receive a competitive base salary, an incentive bonus opportunity, and a benefits package. Certain professionals who supervise and manage others also participate in a management incentive program reflecting their personal contribution and team performance. Certain key individuals also have the opportunity to take advantage of a long-term incentive compensation program, including potential awards of Virtus restricted stock units (“RSUs”) with multi-year vesting, subject to Virtus board of directors’ approval.
Following is a more detailed description of the compensation structure:
• | Base Salary: Each portfolio manager is paid a fixed based salary, which is designed to be competitive in light of the individual’s experience and responsibilities. Base salary is determined using compensation survey results of investment industry compensation conducted by an independent third party in evaluating competitive market compensation for its investment management professionals. |
Incentive Bonus: Annual incentive payments are based on targeted compensation levels, adjusted based on profitability, investment performance factors and a subjective assessment of contribution to the team effort. The short-term incentive payment is generally paid in cash, but a portion may be payable in RSUs and mutual fund investments that appreciate or depreciate in value based on returns of one or more mutual funds managed by the investment professional. Individual payments are assessed using comparisons of actual investment performance with specific peer group or index measures. Performance of funds managed is generally measured over one-, three-, and five-year periods and an individual manager’s participation is based on the performance of each fund/account managed.
• | Other Benefits: Portfolio managers are also eligible to participate in broad-based plans offered generally to employees of Virtus and its affiliates, including 401(k), health, and other employee benefit plans. |
While portfolio managers compensation contains a performance component, this component is adjusted to reward investment personnel for managing within the stated framework and for not taking unnecessary risk. This approach helps ensure that investment management personnel remain focused on managing and acquiring securities that correspond to a fund’s mandate and risk profile and are discouraged from taking on more risk and unnecessary exposure to chase performance for personal gain. Virtus believes it has appropriate controls in place to handle any potential conflicts that may result from a substantial portion of portfolio manager compensation being tied to performance.
(a)(4) Disclosure of Securities Ownership
For the most recently completed fiscal year ended November 30, 2023, beneficial ownership of shares of the Fund by Messrs. Albrycht, Caron, Jennings and Senecal are as follows. Beneficial ownership was determined in accordance with rule 16a-1(a)(2) under the Securities Exchange Act of 1934 (17 CFR 240.161-1(a)(2)).
Name of Portfolio Manager or Team Member |
Dollar ($) Range of Fund Shares
Beneficially | |
David L. Albrycht |
NONE | |
Benjamin Caron |
$100,001 - $500,00 | |
Kyle A. Jennings |
NONE | |
Daniel Senecal |
NONE |
(b) | Not applicable. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Virtus Global Multi-Sector Income Fund |
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By (Signature and Title)* |
||||
George R. Aylward, President and Chief Executive Officer (principal executive officer) |
||||
Date February 5, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* |
||||
George R. Aylward, President and Chief Executive Officer (principal executive officer) |
||||
Date February 5, 2024 |
||||
By (Signature and Title)* |
||||
W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer (principal financial officer) |
||||
Date February 5, 2024 |
* | Print the name and title of each signing officer under his or her signature. |
This ‘N-CSR’ Filing | Date | Other Filings | ||
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12/31/24 | ||||
9/30/24 | ||||
Filed on / Effective on: | 2/5/24 | |||
1/24/24 | ||||
1/5/24 | ||||
For Period end: | 11/30/23 | NPORT-P | ||
11/1/23 | ||||
6/30/23 | N-PX | |||
4/3/23 | ||||
3/31/23 | ||||
12/21/22 | ||||
12/16/22 | ||||
11/30/22 | N-CEN, N-CSR, NPORT-P | |||
3/15/22 | ||||
12/31/21 | ||||
11/30/21 | N-CEN, N-CSR, NPORT-P | |||
11/30/20 | N-CEN, N-CSR, NPORT-P | |||
3/12/20 | ||||
11/30/19 | N-CEN, N-CEN/A, N-CSR | |||
2/23/12 | 3, 4, EFFECT, N-2/A, N-2MEF | |||
8/23/11 | ||||
List all Filings |