Virtus Global Multi-Sector Income Fund
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number
811-22608
Virtus Global Multi-Sector Income
Fund
(Exact name of registrant as specified in charter)
101 Munson Street
Greenfield, MA
01301-9683
(Address
of principal executive offices) (Zip code)
William Renahan, Esq.
Vice President, Chief Legal Officer and Secretary for Registrant
100 Pearl Street
Hartford, CT
06103-4506
(Name and address of agent for service)
Registrant’s telephone number, including area code: (866) 270-7788
Date of fiscal year end: December 31
Date of reporting period: March 31, 2014
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§
239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The
Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A
registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained
in Form N-Q 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 the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44
U.S.C. § 3507.
Item 1. Schedule of Investments.
The Schedules of Investments are attached herewith.
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2014
(Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
| MUNICIPAL BONDS—1.2% |
|
|
|
|
| California—0.7% |
|
|
|
|
|
|
|
|
| San Diego Tobacco Settlement Revenue Funding Corp. Bond Taxable 7.125%, 6/1/32 |
|
$ |
689 |
|
|
$ |
664 |
|
| State of California Build America Bond Taxable 7.500%, 4/1/34 |
|
|
570 |
|
|
|
769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Illinois—0.4% |
|
|
|
|
|
|
|
|
| State of Illinois Build America Bond Taxable 6.900%, 3/1/35 |
|
|
700 |
|
|
|
761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Puerto Rico—0.1% |
|
|
|
|
|
|
|
|
| Commonwealth of Puerto Rico Taxable Series A, 8.000%, 7/1/35 |
|
|
315 |
|
|
|
294 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL MUNICIPAL BONDS
(Identified Cost $2,328)
|
|
|
|
2,488 |
|
| FOREIGN GOVERNMENT
SECURITIES—14.2% |
|
|
|
|
| Argentine Republic 8.280%, 12/31/33 |
|
|
2,341 |
|
|
|
1,865 |
|
| Bolivarian Republic of Venezuela |
|
|
|
|
|
|
|
|
| RegS 8.250%, 10/13/24(4) |
|
|
570 |
|
|
|
399 |
|
| 7.650%, 4/21/25 |
|
|
125 |
|
|
|
84 |
|
| Commonwealth of Australia Series 125 6.250%, 6/15/14 |
|
|
1,165AUD |
|
|
|
1,089 |
|
| Commonwealth of New Zealand Series 415, 6.000%, 4/15/15 |
|
|
1,400NZD |
|
|
|
1,248 |
|
| Dominican Republic 144A 5.875%, 4/18/24(3) |
|
|
1,000 |
|
|
|
998 |
|
| Federative Republic of Brazil 8.500%, 1/5/24 |
|
|
3,460BRL |
|
|
|
1,430 |
|
| Hungary 5.750%, 11/22/23 |
|
|
352 |
|
|
|
365 |
|
| Kingdom of Morocco 144A 4.250%, 12/11/22(3) |
|
|
795 |
|
|
|
771 |
|
| Mongolia 144A 4.125%, 1/5/18(3) |
|
|
800 |
|
|
|
728 |
|
| New South Wales, Australia Treasury Corp. Series 17 5.500%, 3/1/17 |
|
|
435AUD |
|
|
|
430 |
|
| Provincia de Neuquen, Argentina 144A 7.875%, 4/26/21(3) |
|
|
704 |
|
|
|
700 |
|
| Republic of Azerbaijan 144A 4.750%, 3/18/24(3) |
|
|
800 |
|
|
|
803 |
|
| Republic of Croatia 144A 6.375%, 3/24/21(3) |
|
|
1,420 |
|
|
|
1,530 |
|
| Republic of Iceland 144A 5.875%, 5/11/22(3) |
|
|
1,180 |
|
|
|
1,279 |
|
| Republic of Indonesia |
|
|
|
|
|
|
|
|
| Series FR30, 10.750%, 5/15/16 |
|
|
6,120,000IDR |
|
|
|
575 |
|
| Series FR55, 7.375%, 9/15/16 |
|
|
4,365,000IDR |
|
|
|
384 |
|
| Series FR63, 5.625%, 5/15/23 |
|
|
7,482,000IDR |
|
|
|
557 |
|
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
|
|
| Republic of Peru |
|
|
|
|
|
|
|
|
| GDN 144A 7.840%, 8/12/20(3) |
|
$ |
875PEN |
|
|
$ |
345 |
|
| RegS 6.900%, 8/12/37(4) |
|
|
1,700PEN |
|
|
|
598 |
|
| Republic of Poland Series 0414, 5.750%, 4/25/14 |
|
|
9,300PLN |
|
|
|
3,083 |
|
| Republic of Slovak 144A 4.375%, 5/21/22(3) |
|
|
1,235 |
|
|
|
1,309 |
|
| Republic of Sri Lanka 144A 6.000%, 1/14/19(3) |
|
|
1,085 |
|
|
|
1,138 |
|
| Republic of Uruguay 4.375%, 12/15/28 |
|
|
25,813UYU(9) |
|
|
|
1,186 |
|
| Russian Federation |
|
|
|
|
|
|
|
|
| 144A 7.850%, 3/10/18(3) |
|
|
55,000RUB |
|
|
|
1,544 |
|
| 144A 4.875%, 9/16/23(3) |
|
|
2,000 |
|
|
|
1,977 |
|
| United Mexican States |
|
|
|
|
|
|
|
|
| Series M, 6.000%, 6/18/15 |
|
|
35,100MXN |
|
|
|
2,759 |
|
| Series M, 6.500%, 6/9/22 |
|
|
19,000MXN |
|
|
|
1,500 |
|
|
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified Cost $32,383) |
|
|
|
30,674 |
|
|
| MORTGAGE-BACKED SECURITIES—2.6% |
|
|
|
|
| Non-Agency—2.6% |
|
|
|
|
|
|
|
|
| Aventura Mall Trust 13-AVM, C 144A 3.743%, 12/5/32(2)(3) |
|
|
448 |
|
|
|
448 |
|
| Banc of America Alternative Loan Trust 03-2, CB3 5.750%, 4/25/33 |
|
|
727 |
|
|
|
789 |
|
| Bear Stearns Commercial Mortgage Securities, Inc. |
|
|
|
|
|
|
|
|
| 05-PW10, AM 5.449%,
12/11/40(2) |
|
|
1,000 |
|
|
|
1,063 |
|
| 07-PW18, AM 6.084%,
6/11/50(2) |
|
|
1,400 |
|
|
|
1,587 |
|
| Credit Suisse First Boston Mortgage Securities Corp.
04-CF2, 1M1 144A 5.250%,
1/25/43(2)(3) |
|
|
716 |
|
|
|
727 |
|
| JPMorgan Chase (Washington Mutual) Commercial Mortgage Securities Trust 06-SL1, A 144A 4.249%, 11/23/43(2)(3) |
|
|
85 |
|
|
|
85 |
|
| JPMorgan Chase Commercial Mortgage Securities Trust
07-LDPX, AM 5.464%,
1/15/49(2) |
|
|
820 |
|
|
|
858 |
|
|
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $5,484) |
|
|
|
5,557 |
|
|
| ASSET-BACKED SECURITIES—3.2% |
|
|
|
|
| CIT Group Home Equity Loan Trust 03-1, A5 4.980%,
7/20/34(2) |
|
|
1,450 |
|
|
|
1,458 |
|
| Dominos Pizza Master Issuer LLC 12-1A, A2 144A 5.216%,
1/25/42(3) |
|
|
1,455 |
|
|
|
1,557 |
|
| Drug Royalty LP I 12-1, A2 144A 5.800%, 7/15/24(3) |
|
|
746 |
|
|
|
776 |
|
1
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
PAR VALUE |
|
|
VALUE |
|
|
|
|
|
| Fairway Outdoor Funding LLC 12-1A, A2 144A 4.212%, 10/15/42(3) |
|
$ |
|
|
461 |
|
|
$ |
464 |
|
| GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35(2) |
|
|
|
|
1,310 |
|
|
|
1,333 |
|
| Orange Lake Timeshare Trust 12-AA, B 144A 4.870%, 3/10/27(3) |
|
|
|
|
596 |
|
|
|
608 |
|
| Residential Asset Mortgage Trust 04-RZ1, M1 4.320%, 3/25/34(2) |
|
|
|
|
772 |
|
|
|
768 |
|
|
TOTAL ASSET-BACKED SECURITIES
(Identified Cost $6,654)
|
|
|
|
6,964
|
|
|
| CORPORATE BONDS—98.4% |
|
|
|
| Consumer Discretionary—5.7% |
|
|
|
|
|
| Arcelik AS 144A 5.000%, 4/3/23(3) |
|
|
|
|
470 |
|
|
|
414 |
|
| Arcos Dorados Holdings, Inc. |
|
|
|
|
|
|
|
|
|
|
| 144A 10.250%, 7/13/16(3) |
|
|
|
|
1,115BRL |
|
|
|
458 |
|
| 144A 6.625%, 9/27/23(3) |
|
|
|
|
600 |
|
|
|
615 |
|
| Bon-Ton Department Stores, Inc. (The) 8.000%, 6/15/21 |
|
|
|
|
615 |
|
|
|
597 |
|
| Boyd Gaming Corp. 9.000%, 7/1/20 |
|
|
|
|
325 |
|
|
|
361 |
|
| Brookfield Residential Properties, Inc. |
|
|
|
|
|
|
|
|
|
|
| 144A 6.500%, 12/15/20(3) |
|
|
|
|
960 |
|
|
|
1,027 |
|
| 144A 6.125%, 7/1/22(3) |
|
|
|
|
215 |
|
|
|
223 |
|
| Caesars Entertainment Operating Co., Inc. 9.000%, 2/15/20 |
|
|
|
|
1,000 |
|
|
|
902 |
|
| Caesars Entertainment Resort Properties LLC 144A 11.000%, 10/1/21(3) |
|
|
|
|
775 |
|
|
|
818 |
|
| Columbus International, Inc. 144A 7.375%, 3/30/21(3) |
|
|
|
|
225 |
|
|
|
232 |
|
| GLP Capital LP (GLP Financing II, Inc.) |
|
|
|
|
|
|
|
|
|
|
| 144A 4.375%, 11/1/18(3) |
|
|
|
|
25 |
|
|
|
26 |
|
| 144A 4.875%, 11/1/20(3) |
|
|
|
|
710 |
|
|
|
729 |
|
| 144A 5.375%, 11/1/23(3) |
|
|
|
|
20 |
|
|
|
21 |
|
| Grupo Televisa SAB 7.250%, 5/14/43 |
|
|
|
|
8,000MXN |
|
|
|
494 |
|
| Guitar Center, Inc. 144A 9.625%, 4/15/20(3) |
|
|
|
|
175 |
|
|
|
174 |
|
| Hot Topic, Inc. 144A 9.250%, 6/15/21(3) |
|
|
|
|
475 |
|
|
|
515 |
|
| KOC Holding AS 144A 3.500%, 4/24/20(3) |
|
|
|
|
1,110 |
|
|
|
1,010 |
|
| Penn National Gaming, Inc. 144A 5.875%, 11/1/21(3) |
|
|
|
|
395 |
|
|
|
389 |
|
| QVC, Inc. 5.125%, 7/2/22 |
|
|
|
|
690 |
|
|
|
716 |
|
| Sirius XM Radio, Inc. 144A 4.250%, 5/15/20(3) |
|
|
|
|
815 |
|
|
|
799 |
|
| Toll Brothers Finance Corp. 6.750%, 11/1/19 |
|
|
|
|
615 |
|
|
|
701 |
|
| VTR Finance B.V. 144A 6.875%, 1/15/24(3) |
|
|
|
|
555 |
|
|
|
579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
PAR VALUE |
|
|
VALUE |
|
|
|
| Consumer Discretionary—(continued) |
|
|
|
|
|
| Wynn Macau Ltd. 144A 5.250%, 10/15/21(3) |
|
$ |
|
|
|
|
565 |
|
|
$ |
576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer Staples—0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| Cosan Luxembourg SA 144A 5.000%, 3/14/23(3) |
|
|
|
|
|
|
300 |
|
|
|
282 |
|
| Elizabeth Arden, Inc. 7.375%, 3/15/21 |
|
|
|
|
|
|
405 |
|
|
|
437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Energy—19.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| Afren plc |
|
|
|
|
|
|
|
|
|
|
|
|
| 144A 10.250%, 4/8/19(3) |
|
|
|
|
|
|
651 |
|
|
|
741 |
|
| 144A 6.625%, 12/9/20(3) |
|
|
|
|
|
|
750 |
|
|
|
765 |
|
| BreitBurn Energy Partners (BreitBurn Finance Corp.) 7.875%, 4/15/22 |
|
|
|
|
|
|
570 |
|
|
|
620 |
|
| Calumet Specialty Products Partners LP 144A 6.500%, 4/15/21(3) |
|
|
|
|
|
|
1,415 |
|
|
|
1,429 |
|
| CHC Helicopter SA 9.250%, 10/15/20 |
|
|
|
|
|
|
1,035 |
|
|
|
1,130 |
|
| Dolphin Energy Ltd. 144A 5.500%, 12/15/21(3) |
|
|
|
|
|
|
2,000 |
|
|
|
2,258 |
|
| Ecopetrol S.A. 5.875%, 9/18/23 |
|
|
|
|
|
|
640 |
|
|
|
699 |
|
| Energy XXI Gulf Coast, Inc. 144A 7.500%, 12/15/21(3) |
|
|
|
|
|
|
805 |
|
|
|
847 |
|
| Exterran Partners LP 144A 6.000%, 10/1/22(3) |
|
|
|
|
|
|
360 |
|
|
|
354 |
|
| Forest Oil Corp. 7.250%, 6/15/19 |
|
|
|
|
|
|
1,086 |
|
|
|
957 |
|
| Gazprom Neft OAO (GPN Capital SA) 144A 6.000%, 11/27/23(3)(7) |
|
|
|
|
|
|
335 |
|
|
|
328 |
|
| Gazprom OAO (Gaz Capital SA) |
|
|
|
|
|
|
|
|
|
|
|
|
| 144A 6.510%, 3/7/22(3)(7) |
|
|
|
|
|
|
1,100 |
|
|
|
1,133 |
|
| 144A 4.950%, 2/6/28(3)(7) |
|
|
|
|
|
|
1,300 |
|
|
|
1,108 |
|
| GeoPark Latin America Ltd. 144A 7.500%, 2/11/20(3) |
|
|
|
|
|
|
1,020 |
|
|
|
1,061 |
|
| Gulfmark Offshore, Inc. 6.375%, 3/15/22 |
|
|
|
|
|
|
1,700 |
|
|
|
1,768 |
|
| Hercules Offshore, Inc. 144A 10.250%, 4/1/19(3) |
|
|
|
|
|
|
625 |
|
|
|
703 |
|
| KazMunayGas National Co. JSC 144A 5.750%, 4/30/43(3) |
|
|
|
|
|
|
300 |
|
|
|
270 |
|
| Linn Energy LLC (Linn Energy Finance Corp.) 144A 7.250%, 11/1/19(3) |
|
|
|
|
|
|
975 |
|
|
|
1,021 |
|
| Lukoil OAO International Finance BV |
|
|
|
|
|
|
|
|
|
|
|
|
| 144A 6.125%, 11/9/20(3)(7) |
|
|
|
|
|
|
1,100 |
|
|
|
1,139 |
|
| 144A 4.563%, 4/24/23(3) |
|
|
|
|
|
|
800 |
|
|
|
732 |
|
| MEG Energy Corp. 144A 7.000%, 3/31/24(3) |
|
|
|
|
|
|
500 |
|
|
|
530 |
|
| Memorial Production Partners LP 7.625%, 5/1/21 |
|
|
|
|
|
|
700 |
|
|
|
742 |
|
| Midcontinent Express Pipeline LLC 144A 6.700%, 9/15/19(3) |
|
|
|
|
|
|
2,000 |
|
|
|
2,040 |
|
2
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
| Energy—(continued) |
|
| MIE Holdings Corp. 144A 9.750%, 5/12/16(3) |
|
$ |
800 |
|
|
$ |
846 |
|
| Pacific Rubiales Energy Corp. 144A 7.250%, 12/12/21(3) |
|
|
965 |
|
|
|
1,064 |
|
| Parker Drilling Co.(The) 144A 6.750%, 7/15/22(3) |
|
|
350 |
|
|
|
362 |
|
| Petrobras Global Finance BV 6.250%, 3/17/24 |
|
|
770 |
|
|
|
793 |
|
| Petrobras International Finance Co. 6.750%, 1/27/41 |
|
|
3,275 |
|
|
|
3,174 |
|
| Petroleos de Venezuela SA |
|
|
|
|
|
|
|
|
| Series 2014 4.900%, 10/28/14 |
|
|
1,720 |
|
|
|
1,647 |
|
| RegS 8.500%, 11/2/17(4) |
|
|
5,245 |
|
|
|
4,406 |
|
| Petroleos Mexicanos 144A 6.375%, 1/23/45(3) |
|
|
1,500 |
|
|
|
1,618 |
|
| QGOG Constellation SA 144A 6.250%, 11/9/19(3) |
|
|
955 |
|
|
|
956 |
|
| Regency Energy Partners LP 5.875%, 3/1/22 |
|
|
910 |
|
|
|
946 |
|
| Sabine Pass Liquefaction LLC 5.625%, 2/1/21 |
|
|
675 |
|
|
|
700 |
|
| Teekay Corp. 8.500%, 1/15/20 |
|
|
1,000 |
|
|
|
1,143 |
|
| Transportadora de Gas del Peru SA 144A 4.250%, 4/30/28(3) |
|
|
800 |
|
|
|
728 |
|
| Tullow Oil plc 144A 6.000%,
11/1/20(3) |
|
|
930 |
|
|
|
949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,707 |
|
|
|
|
|
|
|
|
|
|
|
| Financials—41.0% |
|
| Aircastle Ltd. 5.125%, 3/15/21 |
|
|
1,470 |
|
|
|
1,472 |
|
| Akbank TAS 144A 7.500%, 2/5/18(3) |
|
|
1,145TRY |
|
|
|
460 |
|
| Alfa Bank OJSC (Alfa Bond Issuance plc) |
|
|
|
|
|
|
|
|
| 144A 7.500%, 9/26/19(3)(7) |
|
|
1,100 |
|
|
|
1,111 |
|
| 144A 7.750%, 4/28/21(3)(7) |
|
|
925 |
|
|
|
941 |
|
| Allstate Corp. (The) 5.750%,
8/15/53(2)(6) |
|
|
2,460 |
|
|
|
2,583 |
|
| ALROSA Finance S.A. 144A 7.750%, 11/3/20(3) |
|
|
750 |
|
|
|
799 |
|
| Banco ABC Brasil S.A. 144A 7.875%, 4/8/20(3) |
|
|
800 |
|
|
|
841 |
|
| Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A 6.500%, 3/10/21(3) |
|
|
1,750 |
|
|
|
1,892 |
|
| Banco Bradesco S.A. 144A 5.750%, 3/1/22(3)(6) |
|
|
2,000 |
|
|
|
2,052 |
|
| Banco Continental S.A. RegS 5.500%, 11/18/20(4)(7) |
|
|
2,000 |
|
|
|
2,105 |
|
| Banco de Credito del Peru 144A 6.125%, 4/24/27(2)(3) |
|
|
1,225 |
|
|
|
1,271 |
|
| Banco de Credito e Inversiones 144A 4.000%, 2/11/23(3) |
|
|
1,860 |
|
|
|
1,805 |
|
| Banco do Brasil SA |
|
|
|
|
|
|
|
|
| RegS 5.375%, 1/15/21(4) |
|
|
525 |
|
|
|
537 |
|
| 144A 9.250%, 10/31/49(2)(3)(5)(6) |
|
|
1,425 |
|
|
|
1,543 |
|
| Banco Internacional del Peru SAA 144A 6.625%, 3/19/29(2)(3) |
|
|
1,260 |
|
|
|
1,266 |
|
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
| Financials—(continued) |
|
| Banco Santander Brasil SA 144A 8.000%, 3/18/16(3) |
|
$ |
600BRL |
|
|
$ |
244 |
|
| Banco Santander Chile 144A 3.875%, 9/20/22(3) |
|
|
1,750 |
|
|
|
1,697 |
|
| Banco Santander Mexico SA 144A 5.950%, 1/30/24(2)(3)(6) |
|
|
1,000 |
|
|
|
1,035 |
|
| Banco Votorantim S.A. 144A 7.375%, 1/21/20(3) |
|
|
1,900 |
|
|
|
2,026 |
|
| Bancolombia S.A. 5.125%, 9/11/22 |
|
|
1,220 |
|
|
|
1,189 |
|
| Bank of Baroda 144A 4.875%, 7/23/19(3) |
|
|
695 |
|
|
|
714 |
|
| Bank of Georgia JSC 144A 7.750%, 7/5/17(3) |
|
|
745 |
|
|
|
779 |
|
| Barclays Bank plc 144A 6.050%, 12/4/17(3) |
|
|
2,450 |
|
|
|
2,746 |
|
| Braskem Finance Ltd. 144A 5.750%, 4/15/21(3) |
|
|
2,200 |
|
|
|
2,197 |
|
| Brazil Loan Trust 1 144A 5.477%, 7/24/23(3) |
|
|
1,100 |
|
|
|
1,116 |
|
| Carlyle Holdings Finance LLC 144A 3.875%, 2/1/23(3) |
|
|
810 |
|
|
|
807 |
|
| Chubb Corp. (The) 6.375%,
3/29/67(2) |
|
|
2,175 |
|
|
|
2,414 |
|
| Corp Andina de Fomento 8.125%, 6/4/19 |
|
|
1,000 |
|
|
|
1,245 |
|
| CorpGroup Banking S.A. 144A 6.750%, 3/15/23(3) |
|
|
1,000 |
|
|
|
985 |
|
| Country Garden Holdings Co., Ltd. 144A 7.250%, 4/4/21(3) |
|
|
1,000 |
|
|
|
933 |
|
| Credit Bank of Moscow 144A 7.700%, 2/1/18(3)(7) |
|
|
220 |
|
|
|
214 |
|
| Development Bank of Kazakhstan OJSC 144A 4.125%, 12/10/22(3) |
|
|
845 |
|
|
|
763 |
|
| Eurasian Development Bank 144A 4.767%, 9/20/22(3) |
|
|
1,600 |
|
|
|
1,504 |
|
| Evergrande Real Estate Group Ltd. 144A 8.750%, 10/30/18(3) |
|
|
635 |
|
|
|
595 |
|
| First Cash Financial Services, Inc. 144A 6.750%, 4/1/21(3) |
|
|
465 |
|
|
|
478 |
|
| First Niagara Financial Group, Inc. 7.250%, 12/15/21 |
|
|
1,400 |
|
|
|
1,603 |
|
| Genworth Holdings, Inc. 4.900%, 8/15/23 |
|
|
1,060 |
|
|
|
1,112 |
|
| GRD Holdings III Corp. 144A 10.750%, 6/1/19(3) |
|
|
610 |
|
|
|
674 |
|
| Guanay Finance Ltd. 144A 6.000%, 12/15/20(3) |
|
|
950 |
|
|
|
1,002 |
|
| HSBC Finance Corp. 6.676%, 1/15/21 |
|
|
1,900 |
|
|
|
2,217 |
|
| Hutchison Whampoa International Ltd. Series 12, 144A
6.000% (2)(3)(5)(6) |
|
|
1,560 |
|
|
|
1,681 |
|
| ICICI Bank Ltd. 144A 4.800%, 5/22/19(3) |
|
|
925 |
|
|
|
961 |
|
| ING (U.S.), Inc. 5.500%, 7/15/22 |
|
|
1,210 |
|
|
|
1,357 |
|
| ING Bank NV 144A 5.000%,
6/9/21(3) |
|
|
1,000 |
|
|
|
1,102 |
|
| International Lease Finance Corp. |
|
|
|
|
|
|
|
|
| 3.875%, 4/15/18 |
|
|
195 |
|
|
|
199 |
|
| 5.875%, 8/15/22 |
|
|
2,310 |
|
|
|
2,443 |
|
3
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
|
|
| Financials—(continued) |
|
|
|
|
|
|
|
|
| Itau Unibanco Holding SA RegS 5.650%, 3/19/22(4) |
|
$ |
900 |
|
|
$ |
906 |
|
| Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42(3) |
|
|
800 |
|
|
|
816 |
|
| Macquarie Group Ltd. |
|
|
|
|
|
|
|
|
| 144A 7.625%, 8/13/19(3) |
|
|
1,000 |
|
|
|
1,199 |
|
| 144A 6.250%, 1/14/21(3) |
|
|
325 |
|
|
|
363 |
|
| MFB Magyar Fejlesztesi Bank Zrt. 144A 6.250%, 10/21/20(3) |
|
|
400 |
|
|
|
424 |
|
| Morgan Stanley 144A 10.090%, 5/3/17(3) |
|
|
6,050BRL |
|
|
|
2,537 |
|
| Nomos Bank Via Nomos Capital plc 144A 7.250%, 4/25/18(3)(7) |
|
|
1,000 |
|
|
|
990 |
|
| Nordea Bank AB 144A 4.250%, 9/21/22(3) |
|
|
2,035 |
|
|
|
2,053 |
|
| PKO Finance AB 144A 4.630%, 9/26/22(3)(7) |
|
|
1,805 |
|
|
|
1,819 |
|
| Progressive Corp. (The) 6.700%, 6/15/37(2) |
|
|
2,160 |
|
|
|
2,376 |
|
| Prudential Financial, Inc. |
|
|
|
|
|
|
|
|
| 5.875%, 9/15/42(2) |
|
|
2,500 |
|
|
|
2,609 |
|
| 5.625%, 6/15/43(2)(6) |
|
|
400 |
|
|
|
408 |
|
| Resona Bank Ltd. 144A
5.850% (2)(3)(5)(6) |
|
|
2,050 |
|
|
|
2,193 |
|
| Royal Bank of Scotland Group plc (The) 6.400%, 10/21/19 |
|
|
1,400 |
|
|
|
1,614 |
|
| Russian Agricultural Bank OJSC (RSHB Capital SA) |
|
|
|
|
|
|
|
|
| 144A 5.298%, 12/27/17(3) |
|
|
850 |
|
|
|
842 |
|
| 144A 5.100%, 7/25/18(3)(7) |
|
|
750 |
|
|
|
731 |
|
| Santander U.S. Debt S.A.U. 144A 3.724%, 1/20/15(3) |
|
|
145 |
|
|
|
148 |
|
| Sberbank of Russia (Sberbank Capital SA) 144A 5.125%, 10/29/22(3)(7) |
|
|
800 |
|
|
|
746 |
|
| SLM Corp. 5.500%, 1/25/23 |
|
|
1,515 |
|
|
|
1,487 |
|
| Telecom Italia Capital SA 7.175%, 6/18/19 |
|
|
725 |
|
|
|
831 |
|
| TMK OAO (TMK Capital) SA 144A 6.750%, 4/3/20(3)(7) |
|
|
965 |
|
|
|
847 |
|
| Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22(3) |
|
|
1,095 |
|
|
|
1,046 |
|
| UPCB Finance Ltd. Series VI 144A 6.875%, 1/15/22(3) |
|
|
725 |
|
|
|
794 |
|
| Vnesheconombank (VEB Finance plc) 144A 6.800%, 11/22/25(3)(7) |
|
|
1,400 |
|
|
|
1,386 |
|
| VTB Bank OJSC (VTB Capital SA) 144A 6.000%, 4/12/17(3)(7) |
|
|
725 |
|
|
|
747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
|
|
| Health Care—0.3% |
|
|
|
|
|
|
|
|
| Catamaran Corp. 4.750%, 3/15/21 |
|
$ |
310 |
|
|
$ |
315 |
|
| Community Health Systems, Inc. 144A 6.875%, 2/1/22(3) |
|
|
185 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Industrials—9.1% |
|
|
|
|
|
|
|
|
| AAR Corp. 7.250%, 1/15/22 |
|
|
710 |
|
|
|
772 |
|
| ADT Corp. (The) 144A 6.250%, 10/15/21(3) |
|
|
920 |
|
|
|
946 |
|
| Air Canada Pass-Through-Trust 13-1, B 144A 5.375%, 5/15/21(3) |
|
|
374 |
|
|
|
380 |
|
| America West Airlines Pass-Through-Trust |
|
|
|
|
|
|
|
|
| 99-1, G 7.930%, 1/2/19 |
|
|
855 |
|
|
|
958 |
|
| 01-1, G 7.100%, 4/2/21 |
|
|
1,553 |
|
|
|
1,708 |
|
| Automotores Gildemeister S.A. |
|
|
|
|
|
|
|
|
| 144A 8.250%, 5/24/21(3) |
|
|
690 |
|
|
|
517 |
|
| 144A 6.750%, 1/15/23(3) |
|
|
240 |
|
|
|
163 |
|
| Bharti Airtel International Netherlands BV 144A 5.125%, 3/11/23(3) |
|
|
805 |
|
|
|
804 |
|
| Builders FirstSource, Inc. 144A 7.625%, 6/1/21(3) |
|
|
800 |
|
|
|
868 |
|
| Ceridian HCM Holding, Inc. 144A 11.000%, 3/15/21(3) |
|
|
35 |
|
|
|
41 |
|
| Delta Air Lines Pass-Through-Trust |
|
|
|
|
|
|
|
|
| 09-1, A 7.750%, 12/17/19 |
|
|
995 |
|
|
|
1,164 |
|
| 02-1, G-1 6.718%, 1/2/23 |
|
|
792 |
|
|
|
919 |
|
| DP World Ltd. 144A 6.850%,
7/2/37(3) |
|
|
1,000 |
|
|
|
1,081 |
|
| Embraer S.A. 5.150%, 6/15/22 |
|
|
1,300 |
|
|
|
1,349 |
|
| ESAL GmbH 144A 6.250%,
2/5/23(3) |
|
|
980 |
|
|
|
931 |
|
| Northwest Airlines Pass-Through-Trust 02-1, G2 6.264%, 11/20/21 |
|
|
638 |
|
|
|
686 |
|
| Odebrecht Finance Ltd. 144A 8.250%, 4/25/18(3) |
|
|
350BRL |
|
|
|
129 |
|
| Odebrecht Offshore Drilling Finance Ltd. 144A 6.750%, 10/1/22(3) |
|
|
890 |
|
|
|
924 |
|
| Spirit AeroSystems, Inc. 144A 5.250%, 3/15/22(3) |
|
|
220 |
|
|
|
222 |
|
| Transnet SOC Ltd. 144A 4.000%, 7/26/22(3) |
|
|
1,000 |
|
|
|
919 |
|
| U.S. Airways Pass-Through-Trust 11-1, A 7.125%, 10/22/23 |
|
|
878 |
|
|
|
1,021 |
|
| UAL Pass-Through-Trust |
|
|
|
|
|
|
|
|
| 09-2 9.750%, 1/15/17 |
|
|
1,923 |
|
|
|
2,212 |
|
| 07-01, A 6.636%, 7/2/22 |
|
|
883 |
|
|
|
975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Information Technology—3.7% |
|
|
|
|
|
|
|
|
| Avaya, Inc. 144A 7.000%, 4/1/19(3) |
|
|
1,285 |
|
|
|
1,282 |
|
4
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
| Information Technology—(continued) |
|
| First Data Corp. 11.750%, 8/15/21 |
|
$ |
3,790 |
|
|
$ |
3,998 |
|
| First Data Holdings, Inc. PIK Interest Capitalization, 144A 14.500%, 9/24/19(3)(12) |
|
|
817 |
|
|
|
772 |
|
| Sensata Technologies BV 144A 4.875%, 10/15/23(3) |
|
|
970 |
|
|
|
958 |
|
| SunGard Availability Services Capital, Inc. 144A 8.750%, 4/1/22(3) |
|
|
570 |
|
|
|
574 |
|
| VeriSign, Inc. 4.625%, 5/1/23 |
|
|
475 |
|
|
|
458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,042 |
|
|
|
|
|
|
|
|
|
|
| Materials—9.7% |
|
| Alpek SA de C.V. 144A 5.375%, 8/8/23(3) |
|
|
1,230 |
|
|
|
1,270 |
|
| Cascades, Inc. 7.875%, 1/15/20 |
|
|
650 |
|
|
|
699 |
|
| Cemex SAB de CV 144A 9.500%, 6/15/18(3) |
|
|
695 |
|
|
|
804 |
|
| Corp Nacional del Cobre de Chile 144A 3.750%, 11/4/20(3) |
|
|
940 |
|
|
|
951 |
|
| Eldorado Gold Corp. 144A 6.125%, 12/15/20(3) |
|
|
415 |
|
|
|
417 |
|
| EuroChem Mineral & Chemical Co. OJSC 144A 5.125%, 12/12/17(3)(7) |
|
|
425 |
|
|
|
415 |
|
| Evraz Group S.A. 144A 6.500%, 4/22/20(3) |
|
|
775 |
|
|
|
647 |
|
| FMG Resources Property Ltd. 144A 8.250%, 11/1/19(3) |
|
|
1,050 |
|
|
|
1,159 |
|
| Gerdau Holdings, Inc. 144A 7.000%, 1/20/20(3) |
|
|
1,600 |
|
|
|
1,776 |
|
| Hexion U.S. Finance Corp. |
|
|
|
|
|
|
|
|
| 8.875%, 2/1/18 |
|
|
730 |
|
|
|
763 |
|
| 6.625%, 4/15/20 |
|
|
720 |
|
|
|
749 |
|
| Ineos Finance plc 144A 8.375%, 2/15/19(3) |
|
|
1,175 |
|
|
|
1,303 |
|
| Inversiones CMPC S.A. 144A 4.375%, 5/15/23(3) |
|
|
1,000 |
|
|
|
967 |
|
| Mexichem SAB de C.V. 144A 4.875%, 9/19/22(3) |
|
|
450 |
|
|
|
450 |
|
| Sappi Papier Holding GmbH 144A 6.625%, 4/15/21(3) |
|
|
1,500 |
|
|
|
1,564 |
|
| Severstal OAO Via Steel Capital SA 144A 5.900%, 10/17/22(3)(7) |
|
|
2,200 |
|
|
|
2,068 |
|
| Tronox Finance LLC 6.375%, 8/15/20 |
|
|
805 |
|
|
|
831 |
|
| United States Steel Corp. 6.875%, 4/1/21 |
|
|
965 |
|
|
|
1,033 |
|
| Vale Overseas Ltd. 4.375%, 1/11/22 |
|
|
1,315 |
|
|
|
1,306 |
|
| Vedanta Resources plc 144A 9.500%, 7/18/18(3) |
|
|
1,650 |
|
|
|
1,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,045 |
|
|
|
|
|
|
|
|
|
|
|
| Telecommunication Services—6.7% |
|
| America Movil SAB de C.V. Series 12 6.450%, 12/5/22 |
|
|
8,000MXN |
|
|
|
571 |
|
| Axtel SAB de CV 144A 8.000%, 1/31/20(2)(3) |
|
|
360 |
|
|
|
359 |
|
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
|
| Telecommunication Services—(continued) |
|
| CenturyLink, Inc. |
|
|
|
|
|
|
|
|
| Series V 5.625%, 4/1/20 |
|
$ |
965 |
|
|
$ |
1,019 |
|
| Series S, 6.450%, 6/15/21 |
|
|
1,600 |
|
|
|
1,728 |
|
| Cincinnati Bell, Inc. 8.375%, 10/15/20 |
|
|
650 |
|
|
|
715 |
|
| Comcel Trust 144A 6.875%, 2/6/24(3) |
|
|
570 |
|
|
|
598 |
|
| Digicel Group Ltd. 144A 8.250%, 9/30/20(3) |
|
|
1,075 |
|
|
|
1,153 |
|
| ENTEL Chile S.A. 144A 4.875%, 10/30/24(3) |
|
|
415 |
|
|
|
418 |
|
| Koninklijke KPN NV 144A 7.000%, 3/28/73(2)(3)(6) |
|
|
955 |
|
|
|
992 |
|
| Millicom International Cellular SA 144A 6.625%, 10/15/21(3) |
|
|
250 |
|
|
|
265 |
|
| Sprint Corp. 144A 7.250%, 9/15/21(3) |
|
|
1,000 |
|
|
|
1,094 |
|
| T-Mobile USA, Inc. |
|
|
|
|
|
|
|
|
| 6.633%, 4/28/21 |
|
|
110 |
|
|
|
119 |
|
| 6.125%, 1/15/22 |
|
|
450 |
|
|
|
473 |
|
| 6.836%, 4/28/23 |
|
|
290 |
|
|
|
312 |
|
| 6.500%, 1/15/24 |
|
|
325 |
|
|
|
341 |
|
| Telefonica Emisiones, S.A.U. 5.462%, 2/16/21 |
|
|
660 |
|
|
|
725 |
|
| Vimpel Communications OJSC 144A 7.748%, 2/2/21(3)(7) |
|
|
1,000 |
|
|
|
1,034 |
|
| Wind Acquisition Finance S.A. |
|
|
|
|
|
|
|
|
| 144A 11.750%, 7/15/17(3) |
|
|
750 |
|
|
|
791 |
|
| 144A 7.250%, 2/15/18(3) |
|
|
430 |
|
|
|
455 |
|
| Windstream Corp. 7.750%, 10/15/20 |
|
|
1,150 |
|
|
|
1,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,401 |
|
|
|
|
|
|
|
|
|
|
| Utilities—2.6% |
|
|
|
|
|
|
|
|
| AmeriGas Partners LP 6.750%, 5/20/20 |
|
|
1,200 |
|
|
|
1,305 |
|
| Calpine Corp. |
|
|
|
|
|
|
|
|
| 144A 6.000%, 1/15/22(3) |
|
|
50 |
|
|
|
53 |
|
| 144A 7.875%, 1/15/23(3) |
|
|
678 |
|
|
|
760 |
|
| Electricite de France SA 144A 5.250% (2)(3)(5)(6) |
|
|
1,325 |
|
|
|
1,327 |
|
| Enel SpA 144A 8.750%, 9/24/73(2)(3) |
|
|
380 |
|
|
|
427 |
|
| Israel Electric Corp Ltd 144A 6.875%, 6/21/23(3) |
|
|
725 |
|
|
|
794 |
|
| NRG Energy, Inc. 7.875%, 5/15/21 |
|
|
925 |
|
|
|
1,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,688 |
|
|
TOTAL CORPORATE BONDS
(Identified Cost $211,084) |
|
|
|
212,798 |
|
| LOAN AGREEMENTS(2)—16.2% |
|
|
| Consumer Discretionary—3.7% |
|
| Caesars Entertainment Operating Co., Inc. Tranche B-4, 9.500%, 10/31/16 |
|
|
928 |
|
|
|
927 |
|
| CBAC Borrower LLC Tranche B, 8.250%, 7/2/20 |
|
|
675 |
|
|
|
705 |
|
5
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
| Consumer Discretionary—(continued) |
|
| Cengage Learning ACQ, Inc. 0.000%, 3/6/20(8) |
|
$ |
292 |
|
|
$ |
296 |
|
| Cumulus Media Holdings, Inc. 4.250%, 12/23/20 |
|
|
869 |
|
|
|
874 |
|
| EB Sports Corp. 11.500%, 12/31/15 |
|
|
500 |
|
|
|
499 |
|
| Granite Broadcasting Corp. Tranche B, First Lien, 6.750%, 5/23/18 |
|
|
454 |
|
|
|
458 |
|
| Landry’s, Inc. Tranche B, 4.000%, 4/24/18 |
|
|
1,123 |
|
|
|
1,131 |
|
| Marina District Finance Co., Inc. 6.750%, 8/15/18 |
|
|
432 |
|
|
|
439 |
|
| Peppermill Casinos, Inc. Tranche B, 7.250%, 11/9/18 |
|
|
633 |
|
|
|
650 |
|
| Radio One, Inc. Tranche 2011, 7.500%, 3/31/16 |
|
|
1,016 |
|
|
|
1,043 |
|
| Shingle Springs Tribal Gaming Authority 6.250%, 8/29/19 |
|
|
480 |
|
|
|
491 |
|
| TWCC Holding Corp. Second Lien, 7.000%, 6/26/20 |
|
|
566 |
|
|
|
553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,066 |
|
|
|
|
|
|
|
|
|
|
| Energy—1.9% |
|
| Fieldwood Energy LLC Second Lien, 8.125%, 9/30/20 |
|
|
608 |
|
|
|
635 |
|
| FTS International, Inc. 8.500%, 5/6/16 |
|
|
989 |
|
|
|
1,008 |
|
| NGPL Pipeco LLC 6.750%, 9/15/17 |
|
|
751 |
|
|
|
734 |
|
| Sabine Oil & Gas LLC Second Lien, 8.750%, 12/31/18 |
|
|
825 |
|
|
|
838 |
|
| Templar Energy LLC Second Lien, 8.000%, 11/25/20 |
|
|
915 |
|
|
|
926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,141 |
|
|
|
|
|
|
|
|
|
|
| Financials—1.1% |
|
| Altisource Solutions S.A.R.L Tranche B, 4.500%, 12/9/20 |
|
|
364 |
|
|
|
366 |
|
| Asurion LLC Second Lien, 8.500%, 3/3/21 |
|
|
460 |
|
|
|
476 |
|
| Capital Automotive LP Second Lien, 6.000%, 4/30/20 |
|
|
73 |
|
|
|
75 |
|
| iStar Financial, Inc. Tranche A-2, 7.000%, 3/19/17 |
|
|
1,335 |
|
|
|
1,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,300 |
|
|
|
|
|
|
|
|
|
|
| Health Care—1.4% |
|
|
|
|
|
|
|
|
| Ardent Medical Services, Inc. First Lien, 6.750%, 7/2/18 |
|
|
270 |
|
|
|
272 |
|
| Second Lien, 11.000%, 1/2/19 |
|
|
225 |
|
|
|
227 |
|
| Gentiva Health Services, Inc. Tranche B, 6.500%, 10/18/19 |
|
|
635 |
|
|
|
629 |
|
| InVentiv Health, Inc. 7.500%, 8/4/16 |
|
|
547 |
|
|
|
548 |
|
| MMM Holdings, Inc. 9.750%, 12/12/17 |
|
|
237 |
|
|
|
239 |
|
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
| Health Care—(continued) |
|
| MSO of Puerto Rico, Inc. 9.750%, 12/12/17 |
|
$ |
173 |
|
|
$ |
174 |
|
| Sheridan Holdings, Inc. Second Lien, 8.250%, 12/20/21 |
|
|
531 |
|
|
|
547 |
|
| Surgery Center Holdings, Inc. Second Lien, 9.750%, 4/11/20 |
|
|
342 |
|
|
|
340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,976 |
|
|
|
|
|
|
|
|
|
|
| Industrials—3.1% |
|
|
|
|
|
|
|
|
| AWAS Finance Luxembourg SA 3.500%, 7/16/18 |
|
|
1,059 |
|
|
|
1,063 |
|
| Commercial Barge Line Co. First Lien, 7.500%, 9/22/19 |
|
|
797 |
|
|
|
800 |
|
| DynCorp International, Inc. 6.250%, 7/7/16 |
|
|
691 |
|
|
|
697 |
|
| Filtration Group Corp. Second Lien, 8.250%, 11/22/21 |
|
|
785 |
|
|
|
804 |
|
| Harland Clarke Holdings Corp. (Clarke American Corp.) Tranche B-3, 7.000%, 5/22/18 |
|
|
524 |
|
|
|
532 |
|
| Tranche B-4, 6.000%, 8/4/19 |
|
|
150 |
|
|
|
151 |
|
| Husky Injection Molding Systems Ltd. (Yukon Acquisition, Inc.) 4.250%, 7/2/18 |
|
|
1,030 |
|
|
|
1,035 |
|
| Mirion Technologies, Inc. 5.750%, 3/30/18 |
|
|
730 |
|
|
|
736 |
|
| Navistar, Inc. Tranche B, 5.750%, 8/17/17 |
|
|
507 |
|
|
|
516 |
|
| SESAC Holding Co. II LLC First Lien, 5.000%, 2/7/19 |
|
|
299 |
|
|
|
303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,637 |
|
|
|
|
|
|
|
|
|
|
| Information Technology—4.3% |
|
| Alcatel-Lucent USA, Inc. 4.500%, 1/30/19 |
|
|
846 |
|
|
|
852 |
|
| Applied Systems, Inc. Second Lien, 7.500%, 1/24/22 |
|
|
48 |
|
|
|
49 |
|
| Blue Coat Systems, Inc. |
|
|
|
|
|
|
|
|
| 4.000%, 5/31/19 |
|
|
935 |
|
|
|
939 |
|
| Second Lien, 9.500%, 6/26/20 |
|
|
585 |
|
|
|
608 |
|
| Deltek, Inc. Second Lien, 10.000%, 10/10/19 |
|
|
777 |
|
|
|
794 |
|
| Excelitas Technologies Corp. Tranche B, 6.000%, 11/2/20 |
|
|
575 |
|
|
|
579 |
|
| IPC Systems, Inc. Tranche C, First Lien, 7.750%, 7/31/17 |
|
|
857 |
|
|
|
859 |
|
| Kronos, Inc. Second Lien, 9.750%, 4/30/20 |
|
|
959 |
|
|
|
1,000 |
|
| Mitchell International, Inc. Second Lien, 8.500%, 10/11/21 |
|
|
300 |
|
|
|
308 |
|
| Mood Media Corp. First Lien, 7.000%, 5/6/18 |
|
|
587 |
|
|
|
594 |
|
6
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (Continued)
MARCH
31, 2014 (Unaudited)
($ reported in thousands)
|
|
|
|
|
|
|
|
|
| |
|
PAR VALUE |
|
|
VALUE |
|
| Information Technology—(continued) |
|
| Novell, Inc. (Attachmate Corp.) First Lien, 7.250%, 11/22/17 |
|
$ |
480 |
|
|
$ |
484 |
|
| RP Crown Parent LLC Second Lien, 11.250%, 12/21/19 |
|
|
872 |
|
|
|
888 |
|
| Sorenson Communications, Inc. 11.500%, 10/31/14 |
|
|
1,131 |
|
|
|
1,138 |
|
| Wall Street Systems Delaware, Inc. Second Lien, 9.250%, 10/25/20 |
|
|
339 |
|
|
|
342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,434 |
|
|
|
|
|
|
|
|
|
|
| Materials—0.6% |
|
|
|
|
|
|
|
|
| Essar Steel Algoma, Inc. (Algoma Steel, Inc.) 9.250%, 9/19/14 |
|
|
1,300 |
|
|
|
1,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Utilities—0.1% |
|
|
|
|
|
|
|
|
| ExGen Renewables I LLC 5.250%, 2/6/21 |
|
|
190 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOAN AGREEMENTS
(Identified Cost $34,596) |
|
|
|
35,053 |
|
|
|
|
| |
|
SHARES |
|
|
VALUE |
|
| PREFERRED STOCK—3.1% |
|
|
|
|
| Financials—3.1% |
|
|
|
|
|
|
|
|
| Citigroup, Inc. Series J, 7.125% |
|
|
30,800 |
|
|
|
813 |
|
| General Electric Capital Corp. Series B, 6.250%(2) |
|
|
500(10) |
|
|
|
535 |
|
| General Electric Capital Corp. Series C, 5.250%(2) |
|
|
600(10) |
|
|
|
584 |
|
| JPMorgan Chase & Co., Series Q, 5.150%(2) |
|
|
960(10) |
|
|
|
905 |
|
| PNC Financial Services Group, Inc. (The) Series R, 4.850%(2) |
|
|
890(10) |
|
|
|
834 |
|
| U.S. Bancorp Series G, 6.000% |
|
|
32,400 |
|
|
|
889 |
|
| Wells Fargo & Co. Series K, 7.980%(2) |
|
|
840(10) |
|
|
|
955 |
|
| Zions Bancorp, 6.950% |
|
|
47,150 |
|
|
|
1,247 |
|
|
TOTAL PREFERRED STOCK
(Identified Cost $6,744) |
|
|
|
6,762 |
|
|
TOTAL LONG TERM INVESTMENTS—138.9%
(Identified cost $299,273) |
|
|
|
300,296 |
|
|
| SHORT-TERM INVESTMENTS—2.4% |
|
|
| Money Market Mutual Funds—2.4% |
|
| Fidelity Money Market Portfolio - Institutional Shares (Seven-day effective yield 0.090%) |
|
|
5,252,015 |
|
|
|
5,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $5,252) |
|
|
|
5,252 |
|
|
|
| TOTAL INVESTMENTS—141.3%
(Identified Cost $304,525) |
|
|
|
305,548(1) |
|
|
|
| Other assets and liabilities, net—(41.3)% |
|
|
|
(89,376) |
|
|
|
|
|
|
|
|
|
|
| NET ASSETS—100.0% |
|
$ |
|
|
|
|
216,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Abbreviations: |
| PIK |
|
Payment-in-Kind Security |
|
| Footnote Legend: |
| (1) |
|
Federal Income Tax Information: For tax information at March 31, 2014, see Note 3 Federal Income Tax Information in the Notes to Schedules of Investments. |
| (2) |
|
Variable or step coupon security; interest rate shown reflects the rate in effect at March 31, 2014. |
| (3) |
|
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 March 31, 2014,
these securities amounted to a value of $145,460 or 67.3% of net assets. |
| (4) |
|
Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933. |
| (5) |
|
No contractual maturity date. |
| (6) |
|
Interest payments may be deferred. |
| (7) |
|
This note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the
borrower. |
| (8) |
|
This loan will settle after March 31, 2014, at which time the interest rate, based on the London Interbank Offered Rate (“LIBOR”) and the agreed upon spread on trade date, will be reflected. |
| (9) |
|
Principal amount is adjusted according to local inflation Index. |
| (10) |
|
Value shown as par value. |
| (11) |
|
All or a portion of the security is segregrated as collateral for the line of credit. |
| (12) |
|
100% of the income received was in cash. |
|
| Foreign Currencies: |
| AUD |
|
Australian Dollar |
| BRL |
|
Brazilian Real |
| IDR |
|
Indonesian Rupiah |
| MXN |
|
Mexican Peso |
| NZD |
|
New Zealand Dollar |
| PEN |
|
Peruvian Nuevo Sol |
| PLN |
|
Polish Zloty |
| RUB |
|
Russian Ruble |
| TRY |
|
Turkish Lira |
| UYU |
|
Uruguayan Peso |
7
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2014
(Unaudited)
($ reported in thousands)
|
|
|
|
|
| Country Weightings † |
|
|
|
|
| United States |
|
|
45 |
% |
| Brazil |
|
|
6 |
|
| Luxembourg |
|
|
5 |
|
| Mexico |
|
|
4 |
|
| Chile |
|
|
3 |
|
| United Kingdom |
|
|
3 |
|
| Venezuela |
|
|
3 |
|
| Other |
|
|
31 |
|
|
Total |
|
|
100 |
% |
† % of total investments as of March 31, 2014
8
The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2014 (See
Security Valuation Note 1A in the Notes to Schedules of Investments):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total |
|
|
|
|
|
Level 2 |
|
| |
|
Value at |
|
|
Level 1 |
|
|
Significant |
|
| |
|
March 31, |
|
|
Quoted |
|
|
Observable |
|
| |
|
2014 |
|
|
Prices |
|
|
Inputs |
|
| Debt Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Asset-Backed Securities |
|
$ |
6,964 |
|
|
$ |
— |
|
|
$ |
6,964 |
|
| Corporate Bonds |
|
|
212,798 |
|
|
|
— |
|
|
|
212,798 |
|
| Foreign Government Securities |
|
|
30,674 |
|
|
|
— |
|
|
|
30,674 |
|
| Loan Agreements |
|
|
35,053 |
|
|
|
— |
|
|
|
35,053 |
|
| Mortgage-Backed Securities |
|
|
5,557 |
|
|
|
— |
|
|
|
5,557 |
|
| Municipal Bonds |
|
|
2,488 |
|
|
|
— |
|
|
|
2,488 |
|
| Equity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred Stock |
|
|
6,762 |
|
|
|
2,949 |
|
|
|
3,813 |
|
| Short-Term Investments |
|
|
5,252 |
|
|
|
5,252 |
|
|
|
— |
|
| Total Investments |
|
$ |
305,548 |
|
|
$ |
8,201 |
|
|
$ |
297,347 |
|
There are no Level 3 (significant unobservable inputs) priced securities
There were no transfers between level 1 and level 2 for the period.
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
NOTES TO SCHEDULE OF INVESTMENTS
MARCH 31, 2014 (Unaudited)
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES
The following
is a summary of significant accounting policies followed by the Fund in the preparation of its Schedule of Investments in conformity with accounting principals generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the Schedule of Investments. Actual results could differ from those estimates and those differences could
be significant.
A. SECURITY VALUATION
Security valuation procedures for the Fund, which include, nightly price variance, as well as back-testing such as bi-weekly unchanged price, monthly
secondary source and transaction analysis, have been approved by the Board of Trustees (the “Board” or the “Trustees”). All internally fair valued securities are approved by a valuation committee (the “Valuation
Committee”) appointed by the Board. The Valuation Committee is comprised of certain members of management as identified by the Board and convenes independently from portfolio management. All internally fair valued securities are updated daily
and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of any model inputs and any changes to the model. Fair valuations are ratified by the Board at least
quarterly.
The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three
broad levels.
— Level 1 – quoted prices
in active markets for identical securities.
—
Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
— Level 3 – prices determined using
significant unobservable inputs (including the valuation committee’s own assumptions in determining the fair value of investments).
A
description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:
Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no
closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid or are internally fair valued by the valuation committee,
are generally categorized as Level 3 in the hierarchy.
Certain non–U.S. securities may be fair valued in cases where closing prices are not
readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that
non–U.S. markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (“NAV”) (generally, 4 p.m. Eastern time the close of the New York Stock Exchange (“NYSE”)) that may
impact the value of securities traded in these non – U.S. markets. In such cases the Fund fair values non – U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non – U.S.
security to the intraday trading the U.S. markets for investments such as ADRS, financial futures, ETFs and certain indexes as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the
frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2014 (Unaudited)
Debt securities, including restricted securities, are valued based on evaluated quotations received
from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable
quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured Debt Instruments such as mortgage-backed
and asset-backed securities may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore
indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally
fair valued by the valuation committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives that are actively traded are
valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter (“OTC”) derivative contracts, which include forward currency contracts and equity linked instruments, do not require material
subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.
Investments in open-end
mutual funds are valued at NAV. Investments in closed-end mutual funds are valued as of the close of regular trading on the NYSE generally 4 pm Eastern time each business day. Both are categorized as Level 1 in the hierarchy.
Short-term notes having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market and are generally categorized as
Level 2 in the hierarchy.
A summary of the inputs used to value the Fund’s major categories of assets and liabilities, which primarily include
investments of the Fund, by each major security type is disclosed at the end of the Schedule of Investments for the Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing
in those securities.
NOTE 2 — FEDERAL INCOME TAX INFORMATION
($
reported in thousands)
At March 31, 2014, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by
the Fund were as follows:
|
|
|
|
|
|
|
| |
|
|
|
|
|
Net |
| Federal |
|
Unrealized |
|
Unrealized |
|
Appreciation |
| Tax Cost |
|
Appreciation |
|
(Depreciation) |
|
(Depreciation) |
|
|
|
|
| $304,530 |
|
$8,545 |
|
$(7,527) |
|
$1,018 |
Other information regarding the
Fund is available in the Fund’s most recent Report to Shareholders
VIRTUS GLOBAL MULTI-SECTOR FIXED INCOME FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued)
MARCH 31, 2014 (Unaudited)
NOTE 3 — SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the Schedule of Investments was available for issuance, and
has determined that there are no subsequent events requiring recognition or disclosure in the Notes to Schedule of Investments.
Other information regarding the
Fund is available in the Fund’s most recent Report to Shareholders
Item 2. 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 the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule
30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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 |
|
|
|
|
|
|
|
|
|
|
| By (Signature and Title)* |
|
/s/ George R. Aylward |
|
|
|
|
George R. Aylward, President |
|
|
|
|
(principal executive officer) |
|
|
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)* |
|
/s/ George R. Aylward |
|
|
|
|
George R. Aylward, President |
|
|
|
|
(principal executive officer) |
|
|
|
|
|
|
|
|
|
|
| By (Signature and Title)* |
|
/s/ W. Patrick Bradley |
|
|
|
|
W. Patrick Bradley, Senior Vice President, Chief Financial Officer,
and Treasurer |
|
|
|
|
(principal financial officer) |
|
|
* Print the name and
title of each signing officer under his or her signature.