Report 
 
      
Registrant:   Virtus Total Return Fund Inc. — List all N-SARs

Semi-Annual Report (at mid-year) for the 1st-half period ended:  5/31/17
Is this a Transition Report?  Yes

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      812090
SEC File #:   811-04739

Telephone #:  302-791-1353
 
 2.
Address:      101 Munson Street, Suite 104
              Greenfield, MA  01301
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  No
 
Investment Adviser 
 
 8.1
Name:         Virtus Investment Advisers, Inc.
Role:         Adviser
SEC File #:   801-05995
Location:     Hartford, CT
 
 8.2
Name:         Duff & Phelps Investment Management Co.
Role:         Sub-Adviser
SEC File #:   801-14813
Location:     Chicago, IL
 
 8.3
Name:         Newfleet Asset Management, LLC
Role:         Sub-Adviser
SEC File #:   801-51559
Location:     Hartford, CT
 
Administrator 
 
10.1
Name:         Virtus Fund Services, LLC
SEC File #:   084-06485
Location:     Hartford, CT
 
10.2
Name:         Bny Mellon Investment Servicing (US) Inc.
SEC File #:   085-11196
Location:     Wilmington, DE
 
Shareholder Servicing/Transfer Agent 
 
12.1
Name:         Computershare Trust Co., N.A.
SEC File #:   085-11340
Location:     Providence, RI
 
Independent Public Accountant 
 
13.1
Name:         Pricewaterhousecoopers LLP
Location:     Philadelphia, PA
 
Affiliated Broker/Dealer 
 
14.1
Name:         VP Distributors LLC
SEC File #:   008-14100
 
14.2
Name:         ETF Distributors LLC
SEC File #:   008-69191
 
Custodian 
 
15.1
Name:         JPMorgan Chase Bank, N.A.
Role:         Custodian
Location:     New York, NY

Type of custody:  Section 17(f)(1) — Bank
 
15.2
Name:         BNP Paribas Securities Services S.C.A.
Role:         Sub-Custodian
Location:     Milan
              Italy

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.3
Name:         BNP Paribas Securities Services
Role:         Sub-Custodian
Location:     Paris
              France

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.4
Name:         HSBC Bank Co. Ltd.
Role:         Sub-Custodian
Location:     Jakarta
              Indonesia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.5
Name:         JPMorgan Chase Bank, N.A.
Role:         Sub-Custodian
Location:     Wellington
              New Zealand

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.6
Name:         JPMorgan Chase Bank, N.A.
Role:         Sub-Custodian
Location:     London
              UK

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.7
Name:         J.P. Morgan S.A. DTVM
Role:         Sub-Custodian
Location:     Sao Paulo
              Brazil

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.8
Name:         Royal Bank of Canada
Role:         Sub-Custodian
Location:     Toronto, Ontario
              Canada

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.9
Name:         UBS AG
Role:         Sub-Custodian
Location:     Zurich
              Switzerland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.10
Name:         Santander Securities Services, S.A.
Role:         Sub-Custodian
Location:     Madrid
              Spain

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.11
Name:         Banco Santander Chile
Role:         Sub-Custodian
Location:     Santiago
              Chile

Type of custody:  Rule 17f-5 — Foreign Custodian
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family:  76

The Identification Code of the family for Form N-SAR Filings:  VIRTUSFUND
 
Brokerage Commissions Paid on Portfolio Transactions 
 
20.
The brokers who received the largest amount of gross brokerage
commissions during the period:
 
20.1
Broker:       Susquehanna Securities
IRS #:        23-2754552
Commissions paid ($000s):  77
 
20.2
Broker:       Citicorp Securities Services Inc.
IRS #:        13-3214963
Commissions paid ($000s):  50
 
20.3
Broker:       UBS AG
IRS #:        13-2638166
Commissions paid ($000s):  41
 
20.4
Broker:       Bank of America LLC
IRS #:        56-2058405
Commissions paid ($000s):  25
 
20.5
Broker:       Macquarie Securities (USA) Inc.
IRS #:        98-0141094
Commissions paid ($000s):  13
 
20.6
Broker:       RBC Capital Markets, LLC
IRS #:        41-1416330
Commissions paid ($000s):  12
 
20.7
Broker:       Barclays Bank plc
IRS #:        13-4942190
Commissions paid ($000s):  10
 
20.8
Broker:       Morgan Stanley
IRS #:        13-2655998
Commissions paid ($000s):  10
 
20.9
Broker:       Goldman Sachs & Co.
IRS #:        13-5108880
Commissions paid ($000s):  6
 
20.10
Broker:       Wolfe Research Securities
Commissions paid ($000s):  1
 
21.
Total brokerage commissions paid by the Registrant during the period:
  Aggregate paid ($000s):  247
 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       Bank of America LLC
IRS #:        56-2058405
Registrant’s purchases ($000s):  11,368
Registrant’s sales ($000s):  23,014
 
22.2
Entity:       Credit Suisse First Boston Corp.
IRS #:        13-5659485
Registrant’s purchases ($000s):  4,187
Registrant’s sales ($000s):  6,188
 
22.3
Entity:       JPMorgan Chase & Co.
IRS #:        13-3379014
Registrant’s purchases ($000s):  4,151
Registrant’s sales ($000s):  5,495
 
22.4
Entity:       Morgan Stanley
IRS #:        13-2655998
Registrant’s purchases ($000s):  8,051
Registrant’s sales ($000s):  1,374
 
22.5
Entity:       Barclays Bank plc
IRS #:        13-4942190
Registrant’s purchases ($000s):  2,518
Registrant’s sales ($000s):  4,890
 
22.6
Entity:       Citicorp Securities Services Inc.
IRS #:        13-3214963
Registrant’s purchases ($000s):  2,890
Registrant’s sales ($000s):  3,840
 
22.7
Entity:       Deutsche Bank Securities Inc.
IRS #:        13-2730828
Registrant’s purchases ($000s):  6,106
Registrant’s sales ($000s):  437
 
22.8
Entity:       Wells Fargo Securities, LLC
IRS #:        94-3379992
Registrant’s purchases ($000s):  986
Registrant’s sales ($000s):  3,564
 
22.9
Entity:       Goldman Sachs & Co.
IRS #:        13-5108880
Registrant’s purchases ($000s):  794
Registrant’s sales ($000s):  2,983
 
22.10
Entity:       HSBC Securities Inc.
IRS #:        13-2650272
Registrant’s purchases ($000s):  1,251
Registrant’s sales ($000s):  1,655
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  107,505
   Aggregate sales ($000s):  126,070
 
Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers 
 
24.
At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities?  Yes

25.

The brokers or dealers, or their parents (issuers):
 
25.1
Name:         JPMorgan Chase & Co.
IRS #:        13-3379014
Type of security owned:  Equity
Value of securities owned at period end ($000s):  36
 
25.2
Name:         JPMorgan Chase & Co.
IRS #:        13-3379014
Type of security owned:  Debt
Value of securities owned at period end ($000s):  2,466
 
25.3
Name:         Bank of America LLC
IRS #:        56-2058405
Type of security owned:  Debt
Value of securities owned at period end ($000s):  1,041
 
25.4
Name:         Citicorp Securities Services Inc.
IRS #:        13-3214963
Type of security owned:  Equity
Value of securities owned at period end ($000s):  1,369
 
25.5
Name:         Citicorp Securities Services Inc.
IRS #:        13-3214963
Type of security owned:  Debt
Value of securities owned at period end ($000s):  801
 
25.6
Name:         Wells Fargo Securities, LLC
IRS #:        94-3379992
Type of security owned:  Equity
Value of securities owned at period end ($000s):  430
 
25.7
Name:         Wells Fargo Securities, LLC
IRS #:        94-3379992
Type of security owned:  Debt
Value of securities owned at period end ($000s):  187
 
25.8
Name:         Credit Suisse First Boston Corp.
IRS #:        13-5659485
Type of security owned:  Debt
Value of securities owned at period end ($000s):  320
 
25.9
Name:         Morgan Stanley
IRS #:        13-2655998
Type of security owned:  Debt
Value of securities owned at period end ($000s):  868
 
25.10
Name:         Goldman Sachs & Co.
IRS #:        13-5108880
Type of security owned:  Debt
Value of securities owned at period end ($000s):  95
 
Considerations which Affected the Participation of Brokers or Dealers 
 
26.
Considerations which affected the participation of brokers or dealers or
other entities in commissions or other compensation paid on portfolio
transactions of the Registrant:

Consideration?
Sales of the Registrant’s/Series’ shares ...............................  No
Receipt of investment research and statistical info ....................  Yes
Receipt of quotations for portfolio valuations .........................  No
Ability to execute portfolio transactions to obtain the best price
  and execution ........................................................  Yes
Receipt of telephone line and wire services ............................  No
Broker or Dealer which is an affiliated person .........................  No
An arrangement to return or credit part or all of commissions or
  profits thereon...
    To an Investment Adviser or Principal Underwriter, or to an
      affiliated person of either ......................................  No
    To the Registrant ..................................................  No
Other ..................................................................  No
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  No, Closed-End
 
Advisory Fee 
 
45.
Did the Registrant/Series have an advisory contract during the period?  Yes
 
46.
Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period?  No
 
47.
Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets?  Yes
 
48.
Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
    Single-fee rate:  0.85%
    Step-fee rates:
      For 1st $000s:  0
        Annual rate:  0.0%
 
49.
Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income?  No
 
50.
Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets?  No
 
51.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance?  No
 
52.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants?  No
 
53.
Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws?  No
 
54.
Indicated below are whether services were supplied or paid for wholly or
in substantial part by Investment Adviser(s) or Administrator(s) in
connection with the advisory or administrative contract(s) but for which
the Adviser(s) or Administrator(s) are not reimbursed by the Registrant:

Provided to the Registrant?
Occupancy and office rental ............................................  Yes
Clerical and bookkeeping services ......................................  Yes
Accounting services ....................................................  Yes
Services of independent auditors .......................................  No
Services of outside counsel ............................................  No
Registration and filing fees ...........................................  No
Stationery, supplies and printing ......................................  Yes
Salaries & compensation of Registrant’s interested Directors ...........  Yes
Salaries & compensation of Registrant’s disinterested Directors ........  No
Salaries & compensation of Registrant’s Officers who aren’t Directors ..  Yes
Reports to current shareholders ........................................  No
Determination of offering and redemption prices ........................  No
Trading department .....................................................  Yes
Prospectus preparation and printing for current shareholders ...........  No
Other ..................................................................  No
 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  Yes
 
56.
During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies?  No
 
57.
Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend?  No
 
Classification and Asset Allocation 
 
58.
Is the Registrant/Series a Separate Account of an insurance company?  No
 
59.
Is the Registrant/Series a management investment company?  Yes
 
60.
Was the Registrant/Series a diversified investment company at any time
during the period?  Yes

Was the Registrant/Series a diversified investment company at the end of
the period?  Yes
 
61.
The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity:  $0
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  Yes

Which best describes its primary investment objective:

    Aggressive capital appreciation?  No
               Capital appreciation?  Yes
    Growth?                           No
    Growth and income?                No
               Income?                No
    Total return?                     No
 
67.
Is the Registrant/Series a “balanced” Fund?  Yes
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  No
 
69.
Is the Registrant/Series an index Fund?  No
 
Investment Practices 
 
70.
Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity                                            Permitted Engaged In
Writing or investing in repurchase agreements?           Yes      No
Writing or investing in options on equities?             Yes      No
Writing or investing in options on debt securities?      Yes      No
Writing or investing in options on stock indices?        Yes to both
Writing or investing in interest rate futures?           Yes      No
Writing or investing in stock index futures?             Yes      No
Writing or investing in options on futures?              Yes      No
Writing or investing in options on stock index futures?  Yes      No
Writing or investing in other commodity futures?         Yes      No
Investments in restricted securities?                    Yes      No
Investments in shares of other investment companies?     Yes to both
Investments in securities of foreign issuers?            Yes to both
Currency exchange transactions?                          Yes to both
Loaning portfolio securities?                            Yes      No
Borrowing of money?                                      Yes to both
Purchases/sales by certain exempted affiliated persons?  Yes      No
Margin purchases?                                        Yes      No
Short selling?                                           Yes      No
 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  83,884
Sales ($000s):      156,032

Monthly average Value of portfolio ($000s):  224,932

Percent turnover (lesser of Purchases or Sales, divided by Value):  37%
 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  6

Income  ($000s)
Net interest income ..............................................
 2,488
Net dividend income ..............................................
 3,005
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 1,055
Administrator fees ...............................................
 166
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 32
Custodian fees ...................................................
 31
Postage ..........................................................
 –
Printing expenses ................................................
 276
Directors’ fees ..................................................
 119
Registration fees ................................................
 –
Taxes ............................................................
 –
Interest .........................................................
 573
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 18
Legal fees .......................................................
 268
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 45
Total expenses ...................................................
 2,583

Expense reimbursements ($000s):   43

Net investment income ($000s):    2,953

Realized capital gains ($000s):   15,759
Realized capital losses ($000s):  0

Net unrealized appreciation during the period ($000s):  11,829
Net unrealized depreciation during the period ($000s):  0

Total income dividends for which the record date passed during the
period ($000s):  4,395

Total capital gains distributions for which the record date passed
during the period ($000s):  0
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.5100

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 326
Repurchase agreements ............................................
 –
Short-term debt securities, other than repurchase agreements .....
 –
Long-term debt securities, including convertible debt ............
 140,035
Preferred, conv. preferred and adjustable-rate preferred stock ...
 4,529
Common stock .....................................................
 247,945
Options on equities ..............................................
 248
Options on all futures ...........................................
 –
Other investments ................................................
 9,195
Receivables from portfolio instruments sold ......................
 704
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 2,800
All other assets .................................................
 7,438
Total assets .....................................................
 413,220

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 2,664
Amounts owed to affiliated persons ...............................
 303
Senior long-term debt ............................................
 105,000
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 –
  Written options ................................................
 562
  All other liabilities ..........................................
 233

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 304,458

Number of shares outstanding (000s):   22,660

Net Asset Value (NAV) per share (to nearest cent):  $13.44

Total number of shareholder accounts:  4,448

Total value of assets in segregated accounts ($000s):  23,402
 
75.
Monthly average net assets during the period ($000s):  171,822
 
76.
Market price per share at period end:  $12.09
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77C:  Matters Submitted to a Vote of Security Holders?  Yes

EX-99.77M:  Merger Info?  Yes

EX-99.77Q1: Other Disclosure?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
Sales, Repurchases and Redemptions 
 
86.
Sales, repurchases and redemptions of the Registrant’s securities:
 
Common Stock
Sales:
    Number of shares (000s):   6,181
    Net consideration received ($000s):  0
Repurchases:
    Number of shares (000s):   10,986
    Net consideration paid ($000s):      53,513

Preferred Stock
Sales:
    Number of shares (000s):   0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Number of shares (000s):   0
    Net consideration paid ($000s):      0

Debt Securities
Sales:
    Principal amount ($000s):  0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Principal amount ($000s):  0
    Net consideration paid ($000s):      0
 
Securities Outstanding 
 
87.
Securities of the Registrant that are registered on a national
securities exchange or listed on Nasdaq:
 
Title of class:  Common Stock
    CUSIP/CINS:  92837G·10·0
        Symbol:  ZF
 
88.
Did the Registrant have any of the following outstanding which exceeded
1% of aggregate net assets at any time during the period:

Notes or bonds?     Yes
Uncovered options?  No
Margin loans?       No
Preferred stock?    No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      W. Patrick Bradley      
Name:   W. Patrick Bradley
Title:  Cfo & Treasurer