VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2023
($ reported in thousands)
Par Value | Value | ||
Convertible Bonds and Notes—24.4% | |||
Auto Manufacturers—0.4% | |||
Ford Motor Co. 0.000%, 3/15/26(1) | $ 6,700 | $ 6,583 | |
Lucid Group, Inc. 144A 1.250%, 12/15/26(2) | 17,880 | 10,737 | |
17,320 | |||
Banks—1.3% | |||
Barclays Bank plc Series mtn 4.000%, 8/28/26(3) | 39,145 | 41,611 | |
BofA Finance LLC 0.600%, 5/25/27 | 19,120 | 20,419 | |
62,030 | |||
Biotechnology—1.3% | |||
Alnylam Pharmaceuticals, Inc. 1.000%, 9/15/27 | 12,410 | 11,448 | |
BioMarin Pharmaceutical, Inc. | |||
0.599%, 8/1/24 | 3,550 | 3,444 | |
1.250%, 5/15/27 | 8,620 | 8,539 | |
Bridgebio Pharma, Inc. 2.250%, 2/1/29 | 12,175 | 9,070 | |
Guardant Health, Inc. 0.000%, 11/15/27(1) | 10,085 | 6,934 | |
Halozyme Therapeutics, Inc. 0.250%, 3/1/27 | 16,055 | 13,547 | |
Insmed, Inc. 0.750%, 6/1/28 | 4,225 | 4,191 | |
Livongo Health, Inc. 0.875%, 6/1/25 | 6,900 | 6,305 | |
Sarepta Therapeutics, Inc. 1.250%, 9/15/27 | 1,830 | 2,044 | |
65,522 | |||
Commercial Services—1.4% | |||
Affirm Holdings, Inc. 0.000%, 11/15/26(1) | 17,000 | 12,687 | |
Block, Inc. | |||
0.125%, 3/1/25 | 5,735 | 5,322 | |
0.000%, 5/1/26(1) | 19,765 | 16,504 | |
0.250%, 11/1/27 | 2,860 | 2,147 | |
Chegg, Inc. 0.125%, 3/15/25 | 9,215 | 8,284 | |
Euronet Worldwide, Inc. 0.750%, 3/15/49 | 7,110 | 6,532 | |
Shift4 Payments, Inc. | |||
0.000%, 12/15/25(1) | 3,525 | 3,469 | |
0.500%, 8/1/27 | 16,220 | 13,858 | |
68,803 | |||
Computers—1.0% | |||
Lumentum Holdings, Inc. | |||
0.250%, 3/15/24 | 1,640 | 1,624 | |
0.500%, 12/15/26 | 14,475 | 12,130 | |
0.500%, 6/15/28 | 17,745 | 12,888 |
Par Value | Value | ||
Computers—continued | |||
Seagate HDD Cayman 144A 3.500%, 6/1/28(2) | $ 7,705 | $ 7,902 | |
Zscaler, Inc. 0.125%, 7/1/25 | 10,240 | 12,298 | |
46,842 | |||
Electric Utilities—0.4% | |||
Southern Co. (The) 144A 3.875%, 12/15/25(2) | 17,910 | 17,409 | |
Energy-Alternate Sources—0.6% | |||
Enphase Energy, Inc. | |||
0.000%, 3/1/26(1) | 10,400 | 9,126 | |
0.000%, 3/1/28(1) | 4,290 | 3,550 | |
SolarEdge Technologies, Inc. 0.000%, 9/15/25(1) | 4,665 | 4,252 | |
Sunnova Energy International, Inc. 2.625%, 2/15/28 | 18,640 | 11,454 | |
28,382 | |||
Engineering & Construction—0.3% | |||
Fluor Corp. 144A 1.125%, 8/15/29(2) | 14,250 | 14,727 | |
Entertainment—0.7% | |||
DraftKings Holdings, Inc. 0.000%, 3/15/28(1) | 17,990 | 13,609 | |
Live Nation Entertainment, Inc. | |||
2.000%, 2/15/25 | 5,555 | 5,658 | |
144A 3.125%, 1/15/29(2) | 6,645 | 6,891 | |
Vail Resorts, Inc. 0.000%, 1/1/26(1) | 10,560 | 9,293 | |
35,451 | |||
Financial Services—2.1% | |||
Coinbase Global, Inc. 0.500%, 6/1/26 | 21,960 | 16,483 | |
Goldman Sachs Finance Corp. Series dMTN 4.000%, 9/28/26(3) | 37,880 | 41,530 | |
JPMorgan Chase Financial Co., LLC 0.500%, 6/15/27 | 18,000 | 19,975 | |
SoFi Technologies, Inc. 144A 0.000%, 10/15/26(1)(2) | 21,245 | 16,380 | |
Upstart Holdings, Inc. 0.250%, 8/15/26 | 12,330 | 8,146 | |
102,514 | |||
Health Care REITs—0.5% | |||
Welltower OP LLC 144A 2.750%, 5/15/28(2) | 23,235 | 23,712 | |
Healthcare-Products—0.9% | |||
Envista Holdings Corp. 2.375%, 6/1/25 | 5,275 | 7,319 |
Par Value | Value | ||
Healthcare-Products—continued | |||
Exact Sciences Corp. | |||
0.375%, 3/15/27 | $ 8,110 | $ 7,340 | |
0.375%, 3/1/28 | 16,810 | 14,509 | |
Novocure Ltd. 0.000%, 11/1/25(1) | 8,475 | 7,278 | |
Omnicell, Inc. 0.250%, 9/15/25 | 7,965 | 7,183 | |
43,629 | |||
Healthcare-Services—0.2% | |||
Teladoc Health, Inc. 1.250%, 6/1/27 | 11,000 | 8,766 | |
Hotel & Resort REITs—0.2% | |||
Pebblebrook Hotel Trust 1.750%, 12/15/26 | 12,180 | 10,102 | |
Internet—4.2% | |||
Etsy, Inc. | |||
0.125%, 9/1/27 | 4,955 | 3,964 | |
0.250%, 6/15/28 | 24,535 | 18,536 | |
Expedia Group, Inc. 0.000%, 2/15/26(1) | 23,335 | 20,273 | |
Match Group Financeco 2, Inc. 144A 0.875%, 6/15/26(2) | 10,295 | 9,002 | |
Match Group Financeco 3, Inc. 144A 2.000%, 1/15/30(2) | 6,620 | 5,763 | |
Okta, Inc. 0.375%, 6/15/26 | 3,405 | 2,964 | |
Opendoor Technologies, Inc. 144A 0.250%, 8/15/26(2) | 7,375 | 4,958 | |
Palo Alto Networks, Inc. 0.375%, 6/1/25 | 165 | 389 | |
Sea Ltd. 0.250%, 9/15/26 | 24,825 | 19,798 | |
Shopify, Inc. 0.125%, 11/1/25 | 13,000 | 11,590 | |
Snap, Inc. | |||
0.750%, 8/1/26 | 7,500 | 6,570 | |
0.000%, 5/1/27(1) | 7,755 | 5,747 | |
0.125%, 3/1/28 | 30,440 | 20,973 | |
Spotify U.S.A., Inc. 0.000%, 3/15/26(1) | 18,205 | 15,483 | |
Uber Technologies, Inc. 0.000%, 12/15/25(1) | 20,775 | 19,381 | |
Wayfair, Inc. 0.625%, 10/1/25 | 18,685 | 16,093 | |
Wix.com Ltd. 0.000%, 8/15/25(1) | 5,000 | 4,428 | |
Zillow Group, Inc. | |||
2.750%, 5/15/25 | 8,965 | 9,203 | |
1.375%, 9/1/26 | 5,500 | 6,553 | |
201,668 | |||
Leisure Time—0.4% | |||
NCL Corp., Ltd. 1.125%, 2/15/27 | 25,520 | 21,118 |
See Notes to Schedule of Investments
1
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Par Value | Value | ||
Machinery-Diversified—0.2% | |||
Middleby Corp. (The) 1.000%, 9/1/25 | $ 8,915 | $ 9,980 | |
Media—1.1% | |||
DISH Network Corp. | |||
0.000%, 12/15/25(1) | 14,730 | 9,832 | |
3.375%, 8/15/26 | 7,890 | 4,742 | |
Liberty Broadband Corp. 144A 3.125%, 3/31/53(2) | 15,365 | 16,003 | |
Liberty Media Corp. | |||
1.375%, 10/15/23 | 7,310 | 8,027 | |
144A 2.375%, 9/30/53(2) | �� 14,753 | 14,805 | |
53,409 | |||
Mining—0.2% | |||
MP Materials Corp. 144A 0.250%, 4/1/26(2) | 12,250 | 10,520 | |
Miscellaneous Manufacturing—0.4% | |||
Axon Enterprise, Inc. 144A 0.500%, 12/15/27(2) | 17,995 | 19,165 | |
Passenger Airlines—0.3% | |||
Southwest Airlines Co. 1.250%, 5/1/25 | 14,365 | 14,257 | |
Pharmaceuticals—0.8% | |||
Dexcom, Inc. 0.250%, 11/15/25 | 16,125 | 15,198 | |
Jazz Investments I Ltd. 2.000%, 6/15/26 | 23,155 | 23,575 | |
38,773 | |||
Retail—0.1% | |||
Burlington Stores, Inc. 144A 1.250%, 12/15/27(2) | 4,895 | 4,577 | |
Semiconductors—1.1% | |||
Microchip Technology, Inc. 0.125%, 11/15/24 | 18,800 | 19,740 | |
ON Semiconductor Corp. 144A 0.500%, 3/1/29(2) | 18,310 | 20,105 | |
Wolfspeed, Inc. 0.250%, 2/15/28 | 23,015 | 15,512 | |
55,357 | |||
Software—4.3% | |||
Akamai Technologies, Inc. | |||
0.125%, 5/1/25 | 12,050 | 14,212 | |
0.375%, 9/1/27 | 7,975 | 8,306 | |
Bentley Systems, Inc. 0.375%, 7/1/27 | 19,350 | 16,718 | |
BILL Holdings, Inc. 0.000%, 4/1/27(1) | 18,870 | 15,273 | |
BlackLine, Inc. 0.000%, 3/15/26(1) | 7,290 | 6,279 | |
Cloudflare, Inc. 0.000%, 8/15/26(1) | 15,450 | 13,132 | |
Confluent, Inc. 0.000%, 1/15/27(1) | 16,890 | 13,775 |
Par Value | Value | ||
Software—continued | |||
Datadog, Inc. 0.125%, 6/15/25 | $ 5,515 | $ 6,472 | |
DigitalOcean Holdings, Inc. 0.000%, 12/1/26(1) | 17,485 | 13,366 | |
MicroStrategy, Inc. | |||
0.750%, 12/15/25 | 3,920 | 4,219 | |
0.000%, 2/15/27(1) | 12,620 | 8,787 | |
Nutanix, Inc. 0.250%, 10/1/27 | 9,495 | 8,474 | |
RingCentral, Inc. 0.000%, 3/1/25(1) | 16,565 | 15,271 | |
Splunk, Inc. | |||
1.125%, 9/15/25 | 20,000 | 21,490 | |
1.125%, 6/15/27 | 6,025 | 5,685 | |
Tyler Technologies, Inc. 0.250%, 3/15/26 | 14,910 | 14,396 | |
Unity Software, Inc. 0.000%, 11/15/26(1) | 28,435 | 22,506 | |
208,361 | |||
Total Convertible Bonds and Notes (Identified Cost $1,424,959) | 1,182,394 | ||
Corporate Bonds and Notes—33.4% | |||
Advertising—0.2% | |||
Clear Channel Outdoor Holdings, Inc. | |||
144A 7.750%, 4/15/28(2) | 5,410 | 4,319 | |
144A 7.500%, 6/1/29(2) | 7,810 | 5,972 | |
10,291 | |||
Aerospace & Defense—0.4% | |||
Bombardier, Inc. 144A 7.500%, 2/1/29(2) | 13,020 | 12,356 | |
Spirit AeroSystems, Inc. 144A 9.375%, 11/30/29(2) | 900 | 916 | |
Triumph Group, Inc. 144A 9.000%, 3/15/28(2) | 8,445 | 8,350 | |
21,622 | |||
Auto Manufacturers—0.7% | |||
Ford Motor Co. | |||
9.625%, 4/22/30 | 2,075 | 2,371 | |
7.450%, 7/16/31 | 9,690 | 10,053 | |
6.100%, 8/19/32 | 8,875 | 8,359 | |
Ford Motor Credit Co. LLC | |||
5.113%, 5/3/29 | 2,245 | 2,055 | |
4.000%, 11/13/30 | 14,895 | 12,440 | |
35,278 | |||
Automotive Parts & Equipment—1.2% | |||
American Axle & Manufacturing, Inc. | |||
6.500%, 4/1/27 | 6,070 | 5,763 | |
5.000%, 10/1/29 | 7,700 | 6,228 | |
Clarios Global LP | |||
144A 8.500%, 5/15/27(2) | 8,615 | 8,590 | |
144A 6.750%, 5/15/28(2) | 9,585 | 9,357 |
Par Value | Value | ||
Automotive Parts & Equipment—continued | |||
Goodyear Tire & Rubber Co. (The) 5.250%, 7/15/31 | $ 21,515 | $ 17,802 | |
Tenneco, Inc. 144A 8.000%, 11/17/28(2) | 10,695 | 8,703 | |
56,443 | |||
Building Materials—0.7% | |||
Builders FirstSource, Inc. | |||
144A 4.250%, 2/1/32(2) | 10,405 | 8,533 | |
144A 6.375%, 6/15/32(2) | 8,065 | 7,591 | |
Griffon Corp. 5.750%, 3/1/28 | 8,175 | 7,421 | |
Summit Materials LLC 144A 5.250%, 1/15/29(2) | 11,970 | 10,869 | |
34,414 | |||
Chemicals—0.7% | |||
Chemours Co. (The) | |||
144A 5.750%, 11/15/28(2) | 6,645 | 5,767 | |
144A 4.625%, 11/15/29(2) | 13,120 | 10,555 | |
Tronox, Inc. 144A 4.625%, 3/15/29(2) | 10,895 | 8,792 | |
WR Grace Holdings LLC 144A 5.625%, 8/15/29(2) | 11,740 | 9,495 | |
34,609 | |||
Commercial Services—1.5% | |||
ADT Security Corp. (The) 144A 4.125%, 8/1/29(2) | 14,625 | 12,366 | |
Avis Budget Car Rental LLC | |||
144A 5.750%, 7/15/27(2) | 6,905 | 6,535 | |
144A 5.375%, 3/1/29(2) | 5,680 | 5,048 | |
Deluxe Corp. 144A 8.000%, 6/1/29(2) | 5,540 | 4,570 | |
Herc Holdings, Inc. 144A 5.500%, 7/15/27(2) | 10,975 | 10,378 | |
Hertz Corp. (The) 144A 5.000%, 12/1/29(2) | 13,315 | 10,425 | |
Monitronics International Escrow 9.125%, 4/1/49(3) | 6,450 | — | |
NESCO Holdings II, Inc. 144A 5.500%, 4/15/29(2) | 12,150 | 10,662 | |
United Rentals North America, Inc. 5.250%, 1/15/30 | 11,630 | 10,757 | |
Williams Scotsman International, Inc. 144A 6.125%, 6/15/25(2) | 3,246 | 3,213 | |
73,954 | |||
See Notes to Schedule of Investments
2
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Par Value | Value | ||
Computers—0.8% | |||
McAfee Corp. 144A 7.375%, 2/15/30(2) | $ 11,960 | $ 10,013 | |
NCR Corp. 144A 5.125%, 4/15/29(2) | 6,740 | 5,938 | |
Seagate HDD Cayman 144A 8.500%, 7/15/31(2) | 10,995 | 11,279 | |
Western Digital Corp. 4.750%, 2/15/26 | 12,635 | 12,039 | |
39,269 | |||
Containers & Packaging—0.9% | |||
Berry Global, Inc. 144A 5.625%, 7/15/27(2) | 13,090 | 12,646 | |
Mauser Packaging Solutions Holding Co. 144A 7.875%, 8/15/26(2) | 13,755 | 13,270 | |
Owens-Brockway Glass Container, Inc. 144A 7.250%, 5/15/31(2) | 7,195 | 7,033 | |
Trivium Packaging Finance B.V. 144A 8.500%, 8/15/27(2) | 12,770 | 11,670 | |
44,619 | |||
Diversified REITS—0.8% | |||
Iron Mountain Information Management Services, Inc. 144A 5.000%, 7/15/32(2) | 7,535 | 6,193 | |
Iron Mountain, Inc. | |||
144A 7.000%, 2/15/29(2) | 15,125 | 14,793 | |
144A 5.250%, 7/15/30(2) | 10,050 | 8,780 | |
SBA Communications Corp. 3.125%, 2/1/29 | 11,135 | 9,287 | |
39,053 | |||
Electronic Equipment, Instruments & Components—0.2% | |||
WESCO Distribution, Inc. 144A 7.250%, 6/15/28(2) | 11,220 | 11,274 | |
Electronics—0.2% | |||
Coherent Corp. 144A 5.000%, 12/15/29(2) | 11,315 | 9,811 | |
Engineering & Construction—0.1% | |||
AECOM 5.125%, 3/15/27 | 4,625 | 4,380 | |
Entertainment—1.9% | |||
AMC Entertainment Holdings, Inc. 144A 7.500%, 2/15/29(2) | 3,600 | 2,501 | |
Caesars Entertainment, Inc. | |||
144A 8.125%, 7/1/27(2) | 11,990 | 12,047 | |
144A 7.000%, 2/15/30(2) | 12,500 | 12,163 |
Par Value | Value | ||
Entertainment—continued | |||
CDI Escrow Issuer, Inc. 144A 5.750%, 4/1/30(2) | $ 10,035 | $ 9,066 | |
International Game Technology plc | |||
144A 4.125%, 4/15/26(2) | 7,305 | 6,872 | |
144A 6.250%, 1/15/27(2) | 3,200 | 3,132 | |
Light & Wonder International, Inc. 144A 7.500%, 9/1/31(2) | 10,495 | 10,373 | |
Lions Gate Capital Holdings LLC 144A 5.500%, 4/15/29(2) | 10,975 | 7,236 | |
Live Nation Entertainment, Inc. | |||
144A 6.500%, 5/15/27(2) | 860 | 848 | |
144A 4.750%, 10/15/27(2) | 14,410 | 13,194 | |
SeaWorld Parks & Entertainment, Inc. 144A 5.250%, 8/15/29(2) | 14,510 | 12,746 | |
90,178 | |||
Environmental Services—0.3% | |||
GFL Environmental, Inc. 144A 4.750%, 6/15/29(2) | 14,905 | 13,249 | |
Equity Real Estate Investment Trusts (REITs)—0.2% | |||
Brookfield Property REIT, Inc. 144A 4.500%, 4/1/27(2) | 9,205 | 7,671 | |
Financial Services—1.4% | |||
Nationstar Mortgage Holdings, Inc. | |||
144A 5.500%, 8/15/28(2) | 13,230 | 11,670 | |
144A 5.750%, 11/15/31(2) | 9,870 | 8,165 | |
Navient Corp. | |||
6.750%, 6/15/26 | 10,725 | 10,375 | |
5.000%, 3/15/27 | 12,315 | 11,069 | |
4.875%, 3/15/28 | 7,065 | 5,988 | |
9.375%, 7/25/30 | 1,000 | 986 | |
OneMain Finance Corp. | |||
6.625%, 1/15/28 | 9,655 | 8,908 | |
9.000%, 1/15/29 | 1,850 | 1,844 | |
5.375%, 11/15/29 | 7,480 | 6,264 | |
PRA Group, Inc. 144A 8.375%, 2/1/28(2) | 3,755 | 3,417 | |
68,686 | |||
Food & Beverage—1.0% | |||
Kraft Heinz Foods Co. 5.000%, 7/15/35 | 8,175 | 7,579 | |
Performance Food Group, Inc. | |||
144A 5.500%, 10/15/27(2) | 7,630 | 7,229 | |
144A 4.250%, 8/1/29(2) | 10,125 | 8,746 |
Par Value | Value | ||
Food & Beverage—continued | |||
Post Holdings, Inc. | |||
144A 5.500%, 12/15/29(2) | $ 3,660 | $ 3,318 | |
144A 4.500%, 9/15/31(2) | 9,420 | 7,840 | |
Simmons Foods, Inc. 144A 4.625%, 3/1/29(2) | 6,935 | 5,689 | |
US Foods, Inc. 144A 4.750%, 2/15/29(2) | 7,810 | 6,980 | |
47,381 | |||
Food Service—0.2% | |||
Aramark Services, Inc. 144A 5.000%, 2/1/28(2) | 8,355 | 7,727 | |
Healthcare-Products—0.4% | |||
Medline Borrower LP 144A 5.250%, 10/1/29(2) | 22,630 | 19,559 | |
Healthcare-Services—1.2% | |||
Centene Corp. 4.625%, 12/15/29 | 2,490 | 2,243 | |
Community Health Systems, Inc. | |||
144A 5.625%, 3/15/27(2) | 6,495 | 5,571 | |
144A 6.875%, 4/15/29(2) | 9,715 | 5,159 | |
Select Medical Corp. 144A 6.250%, 8/15/26(2) | 11,245 | 10,986 | |
Tenet Healthcare Corp. 6.125%, 10/1/28 | 34,410 | 32,302 | |
56,261 | |||
Home Builders—0.1% | |||
Taylor Morrison Communities, Inc. 144A 5.750%, 1/15/28(2) | 4,615 | 4,299 | |
Hotel & Resort REITs—0.6% | |||
Park Intermediate Holdings LLC | |||
144A 5.875%, 10/1/28(2) | 8,830 | 8,069 | |
144A 4.875%, 5/15/29(2) | 9,060 | 7,664 | |
Service Properties Trust | |||
4.500%, 3/15/25 | 5,185 | 4,853 | |
7.500%, 9/15/25 | 5,355 | 5,261 | |
4.375%, 2/15/30 | 5,355 | 3,843 | |
29,690 | |||
Household Products/Wares—0.1% | |||
Spectrum Brands, Inc. 144A 3.875%, 3/15/31(2) | 8,430 | 6,839 | |
Housewares—0.1% | |||
Newell Brands, Inc. 6.625%, 9/15/29 | 3,165 | 3,012 | |
Internet—0.7% | |||
Gen Digital, Inc. 144A 7.125%, 9/30/30(2) | 13,645 | 13,442 | |
Uber Technologies, Inc. | |||
144A 8.000%, 11/1/26(2) | 4,925 | 4,983 | |
144A 7.500%, 9/15/27(2) | 13,190 | 13,299 |
See Notes to Schedule of Investments
3
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Par Value | Value | ||
Internet—continued | |||
144A 6.250%, 1/15/28(2) | $ 2,410 | $ 2,357 | |
34,081 | |||
Investment Companies—0.3% | |||
Compass Group Diversified Holdings LLC | |||
144A 5.250%, 4/15/29(2) | 14,195 | 12,411 | |
144A 5.000%, 1/15/32(2) | 3,650 | 2,975 | |
15,386 | |||
Iron & Steel—0.2% | |||
Cleveland-Cliffs, Inc. 144A 6.750%, 3/15/26(2) | 4,870 | 4,855 | |
United States Steel Corp. 6.875%, 3/1/29 | 7,210 | 7,088 | |
11,943 | |||
Leisure Time—1.1% | |||
Carnival Corp. | |||
144A 5.750%, 3/1/27(2) | 8,455 | 7,654 | |
144A 6.000%, 5/1/29(2) | 10,775 | 9,191 | |
144A 10.500%, 6/1/30(2) | 8,440 | 8,692 | |
NCL Corp., Ltd. 144A 5.875%, 3/15/26(2) | 12,550 | 11,587 | |
Royal Caribbean Cruises Ltd. | |||
144A 11.500%, 6/1/25(2) | 705 | 744 | |
144A 5.375%, 7/15/27(2) | 9,215 | 8,528 | |
144A 5.500%, 4/1/28(2) | 6,100 | 5,594 | |
51,990 | |||
Lodging—0.6% | |||
Boyd Gaming Corp. 144A 4.750%, 6/15/31(2) | 6,045 | 5,144 | |
Hilton Domestic Operating Co., Inc. 144A 4.000%, 5/1/31(2) | 9,890 | 8,314 | |
Hilton Grand Vacations Borrower Escrow LLC 144A 5.000%, 6/1/29(2) | 8,230 | 7,139 | |
MGM Resorts International 4.750%, 10/15/28 | 7,595 | 6,692 | |
27,289 | |||
Machinery-Construction & Mining—0.1% | |||
Terex Corp. 144A 5.000%, 5/15/29(2) | 7,100 | 6,358 | |
Machinery-Diversified—0.2% | |||
Chart Industries, Inc. 144A 7.500%, 1/1/30(2) | 9,100 | 9,150 | |
Media—4.0% | |||
CCO Holdings LLC | |||
4.500%, 5/1/32 | 6,375 | 5,003 | |
144A 5.375%, 6/1/29(2) | 14,405 | 12,924 | |
144A 6.375%, 9/1/29(2) | 12,135 | 11,315 | |
144A 7.375%, 3/1/31(2) | 8,400 | 8,113 |
Par Value | Value | ||
Media—continued | |||
CSC Holdings LLC | |||
144A 7.500%, 4/1/28(2) | $ 14,490 | $ 9,408 | |
144A 5.750%, 1/15/30(2) | 3,000 | 1,681 | |
DirecTV Financing LLC 144A 5.875%, 8/15/27(2) | 15,910 | 14,067 | |
DISH DBS Corp. | |||
7.375%, 7/1/28 | 21,985 | 13,853 | |
144A 5.750%, 12/1/28(2) | 9,505 | 7,307 | |
DISH Network Corp. 144A 11.750%, 11/15/27(2) | 4,500 | 4,534 | |
Gray Escrow II, Inc. 144A 5.375%, 11/15/31(2) | 14,095 | 9,224 | |
Gray Television, Inc. | |||
144A 7.000%, 5/15/27(2) | 10,060 | 8,652 | |
144A 4.750%, 10/15/30(2) | 2,325 | 1,540 | |
iHeartCommunications, Inc. 8.375%, 5/1/27 | 11,905 | 8,540 | |
Nexstar Media, Inc. | |||
144A 5.625%, 7/15/27(2) | 13,405 | 11,929 | |
144A 4.750%, 11/1/28(2) | 5,800 | 4,801 | |
Scripps Escrow II, Inc. 144A 5.375%, 1/15/31(2) | 13,495 | 8,292 | |
Sirius XM Radio, Inc. | |||
144A 4.000%, 7/15/28(2) | 9,960 | 8,502 | |
144A 4.125%, 7/1/30(2) | 9,665 | 7,738 | |
TEGNA, Inc. 5.000%, 9/15/29 | 12,820 | 10,768 | |
Virgin Media Finance plc 144A 5.000%, 7/15/30(2) | 8,345 | 6,559 | |
Virgin Media Secured Finance plc | |||
144A 5.500%, 5/15/29(2) | 12,100 | 10,780 | |
144A 4.500%, 8/15/30(2) | 9,225 | 7,621 | |
193,151 | |||
Mining—0.5% | |||
Arsenal AIC Parent LLC 144A 8.000%, 10/1/30(2) | 8,340 | 8,299 | |
FMG Resources August 2006 Pty Ltd. 144A 4.375%, 4/1/31(2) | 4,130 | 3,398 | |
Hudbay Minerals, Inc. | |||
144A 4.500%, 4/1/26(2) | 9,720 | 9,094 | |
144A 6.125%, 4/1/29(2) | 5,375 | 4,973 | |
25,764 | |||
Oil, Gas & Consumable Fuels—2.8% | |||
Callon Petroleum Co. | |||
144A 8.000%, 8/1/28(2) | 13,490 | 13,509 | |
144A 7.500%, 6/15/30(2) | 7,640 | 7,408 | |
CITGO Petroleum Corp. 144A 8.375%, 1/15/29(2) | 9,490 | 9,478 | |
Civitas Resources, Inc. 144A 8.750%, 7/1/31(2) | 12,300 | 12,564 |
Par Value | Value | ||
Oil, Gas & Consumable Fuels—continued | |||
CNX Resources Corp. 144A 7.375%, 1/15/31(2) | $ 4,510 | $ 4,421 | |
Cobalt International Energy, Inc. 7.750%, 12/1/23(3) | 9,216 | —(4) | |
Comstock Resources, Inc. | |||
144A 6.750%, 3/1/29(2) | 8,700 | 8,003 | |
144A 5.875%, 1/15/30(2) | 6,595 | 5,709 | |
Mesquite Energy, Inc. 0.000%, 1/15/24 | 6,240 | 437 | |
Northern Oil & Gas, Inc. 144A 8.750%, 6/15/31(2) | 6,295 | 6,342 | |
Occidental Petroleum Corp. | |||
8.875%, 7/15/30 | 6,600 | 7,421 | |
6.625%, 9/1/30 | 1,610 | 1,631 | |
SM Energy Co. | |||
6.625%, 1/15/27 | 7,980 | 7,820 | |
6.500%, 7/15/28 | 7,075 | 6,792 | |
Southwestern Energy Co. | |||
5.375%, 3/15/30 | 12,115 | 11,037 | |
4.750%, 2/1/32 | 4,720 | 4,051 | |
Transocean, Inc. 144A 7.500%, 1/15/26(2) | 10,490 | 10,252 | |
USA Compression Partners LP 6.875%, 9/1/27 | 12,545 | 12,162 | |
Weatherford International Ltd. 144A 8.625%, 4/30/30(2) | 8,565 | 8,631 | |
137,668 | |||
Paper & Forest Products—0.2% | |||
Mercer International, Inc. 5.125%, 2/1/29 | 10,985 | 8,662 | |
Passenger Airlines—0.4% | |||
American Airlines, Inc. | |||
144A 11.750%, 7/15/25(2) | 3,875 | 4,166 | |
144A 5.750%, 4/20/29(2) | 14,125 | 13,137 | |
17,303 | |||
Personal Care Product—0.2% | |||
Coty, Inc. 144A 6.500%, 4/15/26(2) | 10,335 | 10,283 | |
Pharmaceuticals—0.9% | |||
Bausch Health Americas, Inc. 144A 8.500%, 1/31/27(2) | 32,710 | 16,600 | |
Jazz Securities DAC 144A 4.375%, 1/15/29(2) | 11,825 | 10,310 | |
Organon & Co. 144A 5.125%, 4/30/31(2) | 21,695 | 17,386 | |
44,296 | |||
Pipelines—0.8% | |||
Antero Midstream Partners LP 144A 5.375%, 6/15/29(2) | 8,185 | 7,494 |
See Notes to Schedule of Investments
4
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Par Value | Value | ||
Pipelines—continued | |||
Crestwood Midstream Partners LP 144A 6.000%, 2/1/29(2) | $ 9,405 | $ 9,079 | |
NGL Energy Operating LLC 144A 7.500%, 2/1/26(2) | 13,625 | 13,476 | |
NuStar Logistics LP 6.375%, 10/1/30 | 9,135 | 8,653 | |
38,702 | |||
Real Estate—0.2% | |||
Kennedy-Wilson, Inc. 5.000%, 3/1/31 | 12,550 | 9,155 | |
Retail—1.0% | |||
Asbury Automotive Group, Inc. | |||
4.750%, 3/1/30 | 6,155 | 5,260 | |
144A 5.000%, 2/15/32(2) | 4,280 | 3,546 | |
Bath & Body Works, Inc. 144A 6.625%, 10/1/30(2) | 12,955 | 12,146 | |
Macy’s Retail Holdings LLC | |||
144A 5.875%, 3/15/30(2) | 4,510 | 3,823 | |
144A 6.125%, 3/15/32(2) | 4,955 | 4,089 | |
Mariposa Borrower, Inc. Escrow 8.000%, 10/15/23(3) | 6,810 | 2,202 | |
New Red Finance, Inc. 144A 4.000%, 10/15/30(2) | 12,185 | 10,126 | |
Yum! Brands, Inc. 4.625%, 1/31/32 | 9,655 | 8,375 | |
49,567 | |||
Semiconductors—0.1% | |||
Amkor Technology, Inc. 144A 6.625%, 9/15/27(2) | 3,650 | 3,586 | |
Software—0.9% | |||
Alteryx, Inc. 144A 8.750%, 3/15/28(2) | 7,995 | 7,959 | |
Central Parent LLC 144A 8.000%, 6/15/29(2) | 8,235 | 8,205 | |
Clarivate Science Holdings Corp. 144A 4.875%, 7/1/29(2) | 10,575 | 9,014 | |
Consensus Cloud Solutions, Inc. | |||
144A 6.000%, 10/15/26(2) | 3,065 | 2,821 | |
144A 6.500%, 10/15/28(2) | 6,765 | 5,765 | |
SS&C Technologies, Inc. 144A 5.500%, 9/30/27(2) | 10,885 | 10,271 | |
44,035 | |||
Par Value | Value | ||
Telecommunications—1.8% | |||
CommScope Technologies LLC 144A 5.000%, 3/15/27(2) | $ 10,105 | $ 5,735 | |
CommScope, Inc. 144A 6.000%, 3/1/26(2) | 2,000 | 1,867 | |
Frontier Communications Holdings LLC | |||
144A 5.000%, 5/1/28(2) | 10,165 | 8,679 | |
144A 6.000%, 1/15/30(2) | 12,310 | 9,003 | |
144A 8.750%, 5/15/30(2) | 5,420 | 5,146 | |
Hughes Satellite Systems Corp. 6.625%, 8/1/26 | 15,020 | 12,842 | |
Lumen Technologies, Inc. | |||
144A 5.125%, 12/15/26(2) | 9,205 | 5,017 | |
144A 5.375%, 6/15/29(2) | 23,075 | 7,384 | |
Sprint LLC | |||
7.125%, 6/15/24 | 6,860 | 6,902 | |
7.625%, 3/1/26 | 7,435 | 7,641 | |
T-Mobile USA, Inc. | |||
3.375%, 4/15/29 | 8,250 | 7,256 | |
3.500%, 4/15/31 | 14,160 | 11,973 | |
Windstream Services LLC 144A 6.375%, 8/1/23(2)(3)(5) | 7,464 | — | |
89,445 | |||
Transportation—0.5% | |||
Fortress Transportation & Infrastructure Investors LLC | |||
144A 9.750%, 8/1/27(2) | 8,420 | 8,709 | |
144A 5.500%, 5/1/28(2) | 7,450 | 6,754 | |
XPO, Inc. 144A 7.125%, 6/1/31(2) | 6,365 | 6,270 | |
21,733 | |||
Total Corporate Bonds and Notes (Identified Cost $1,906,684) | 1,619,116 |
Shares | ||
Convertible Preferred Stocks—1.8% | ||
Banks—1.3% | ||
Bank of America Corp. Series L, 7.250% | 21,900 | 24,358 |
Wells Fargo & Co. Series L, 7.500% | 35,490 | 39,571 |
63,929 | ||
Financial Services—0.4% | ||
Apollo Global Management, Inc., 6.750% | 373,105 | 20,558 |
Shares | Value | ||
Professional Services—0.1% | |||
Clarivate plc Series A, 5.250% | 140,520 | $ 4,107 | |
Total Convertible Preferred Stocks (Identified Cost $113,447) | 88,594 | ||
Preferred Stock—0.1% | |||
Entertainment—0.1% | |||
LiveStyle, Inc. Series B (3)(6)(7) | 27,523 | 2,296 | |
Total Preferred Stock (Identified Cost $2,699) | 2,296 | ||
Common Stocks—35.7% | |||
Aerospace & Defense—0.4% | |||
Boeing Co. (The)(6) | 38,950 | 7,466 | |
RTX Corp. | 182,630 | 13,144 | |
20,610 | |||
Air Freight & Logistics—0.7% | |||
FedEx Corp.(8) | 130,705 | 34,626 | |
Automobile Components—0.3% | |||
Aptiv plc(6) | 136,291 | 13,437 | |
Automobiles—1.5% | |||
Tesla, Inc.(6) | 287,883 | 72,034 | |
Banks—1.1% | |||
CCF Holdings LLC (3)(6) | 7,416,755 | 4,450 | |
CCF Holdings LLC Class M(3)(6) | 1,759,917 | 1,056 | |
JPMorgan Chase & Co. | 156,885 | 22,751 | |
Wells Fargo & Co. | 665,555 | 27,195 | |
55,452 | |||
Biotechnology—0.0% | |||
Clovis Liquidation Trust Units(3)(6) | 4,474,067 | 369 | |
Broadline Retail—1.7% | |||
Alibaba Group Holding Ltd. Sponsored ADR(6) | 92,535 | 8,026 | |
Amazon.com, Inc.(6) | 578,270 | 73,510 | |
81,536 | |||
Capital Markets—1.0% | |||
CME Group, Inc. Class A | 91,265 | 18,273 | |
Moody’s Corp. | 100,300 | 31,712 | |
49,985 | |||
Chemicals—1.1% | |||
DuPont de Nemours, Inc. | 405,835 | 30,271 | |
Sherwin-Williams Co. (The)(8) | 81,385 | 20,757 | |
51,028 | |||
See Notes to Schedule of Investments
5
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Shares | Value | ||
Communications Equipment—0.3% | |||
Cisco Systems, Inc. | 299,340 | $ 16,093 | |
Consumer Finance—0.4% | |||
Capital One Financial Corp.(8) | 216,470 | 21,009 | |
Erickson, Inc.(3)(6) | 10,866 | 154 | |
21,163 | |||
Consumer Staples Distribution & Retail—0.5% | |||
Costco Wholesale Corp.(8) | 35,015 | 19,782 | |
Target Corp. | 54,415 | 6,017 | |
25,799 | |||
Electric Utilities—1.3% | |||
Exelon Corp. | 1,109,750 | 41,938 | |
NextEra Energy, Inc. | 371,642 | 21,291 | |
63,229 | |||
Electrical Equipment—0.2% | |||
Generac Holdings, Inc.(6) | 49,720 | 5,418 | |
Plug Power, Inc.(6) | 437,288 | 3,323 | |
8,741 | |||
Entertainment—0.0% | |||
LiveStyle, Inc. (3)(6)(7) | 202,319 | — | |
Financial Services—1.6% | |||
Global Payments, Inc.(8) | 164,845 | 19,021 | |
Mastercard, Inc. Class A | 145,350 | 57,546 | |
76,567 | |||
Ground Transportation—1.2% | |||
Uber Technologies, Inc.(6)(8) | 411,855 | 18,941 | |
Union Pacific Corp.(8) | 188,945 | 38,475 | |
57,416 | |||
Healthcare Equipment & Supplies—0.9% | |||
Abbott Laboratories | 129,765 | 12,568 | |
Align Technology, Inc.(6)(8) | 42,222 | 12,891 | |
Boston Scientific Corp.(6) | 372,765 | 19,682 | |
45,141 | |||
Healthcare Providers & Services—0.8% | |||
McKesson Corp. | 29,645 | 12,891 | |
UnitedHealth Group, Inc. | 50,490 | 25,457 | |
38,348 | |||
Hotels, Restaurants & Leisure—1.4% | |||
Chipotle Mexican Grill, Inc. Class A(6) | 9,905 | 18,144 | |
Las Vegas Sands Corp. | 440,905 | 20,211 | |
Starbucks Corp. | 202,655 | 18,496 | |
Trip.com Group Ltd. ADR(6) | 251,540 | 8,797 | |
65,648 | |||
Shares | Value | ||
Insurance—0.4% | |||
Aon plc Class A | 66,855 | $ 21,676 | |
Interactive Media & Services—2.7% | |||
Alphabet, Inc. Class A(6) | 787,460 | 103,047 | |
Meta Platforms, Inc. Class A(6) | 95,075 | 28,542 | |
131,589 | |||
IT Services—0.1% | |||
EPAM Systems, Inc.(6) | 20,020 | 5,119 | |
GTT Communications, Inc.(6) | 8,647 | 99 | |
5,218 | |||
Life Sciences Tools & Services—1.9% | |||
Avantor, Inc.(6) | 280,592 | 5,915 | |
Danaher Corp. | 118,914 | 29,502 | |
IQVIA Holdings, Inc.(6) | 118,460 | 23,307 | |
Thermo Fisher Scientific, Inc. | 61,680 | 31,221 | |
89,945 | |||
Machinery—0.1% | |||
Stanley Black & Decker, Inc. | 82,623 | 6,906 | |
Media—0.0% | |||
Postmedia Network Canada Corp.(3)(6) | 1,018,823 | 591 | |
Oil, Gas & Consumable Fuels—1.7% | |||
Chevron Corp.(8) | 77,080 | 12,997 | |
ConocoPhillips | 218,150 | 26,134 | |
Devon Energy Corp. | 426,520 | 20,345 | |
Pioneer Natural Resources Co.(8) | 101,450 | 23,288 | |
Riviera Resources, Inc.(3)(6) | 25,527 | — | |
82,764 | |||
Pharmaceuticals—0.9% | |||
Elanco Animal Health, Inc.(6) | 358,695 | 4,032 | |
Eli Lilly & Co. | 40,890 | 21,963 | |
Zoetis, Inc. Class A(8) | 86,775 | 15,097 | |
41,092 | |||
Semiconductors & Semiconductor Equipment—2.7% | |||
Advanced Micro Devices, Inc.(6) | 153,605 | 15,794 | |
Marvell Technology, Inc. | 376,990 | 20,406 | |
Micron Technology, Inc.(8) | 389,325 | 26,486 | |
NVIDIA Corp. | 125,352 | 54,527 | |
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | 146,300 | 12,713 | |
129,926 | |||
Software—4.4% | |||
Adobe, Inc. (6)(8) | 51,345 | 26,181 | |
Atlassian Corp. Class A(6) | 55,805 | 11,245 |
Shares | Value | ||
Software—continued | |||
Crowdstrike Holdings, Inc. Class A(6) | 163,550 | $ 27,375 | |
Intuit, Inc. | 46,030 | 23,519 | |
Microsoft Corp. | 260,796 | 82,346 | |
Salesforce, Inc.(6)(8) | 108,545 | 22,011 | |
ServiceNow, Inc.(6) | 33,425 | 18,683 | |
Workday, Inc. Class A(6) | 4,974 | 1,069 | |
212,429 | |||
Specialized REITs—0.4% | |||
American Tower Corp. | 113,300 | 18,632 | |
Specialty Retail—2.0% | |||
AutoZone, Inc.(6)(8) | 10,955 | 27,826 | |
Chewy, Inc. Class A(6) | 245,667 | 4,486 | |
Home Depot, Inc. (The) | 100,200 | 30,276 | |
TJX Cos., Inc. (The)(8) | 397,955 | 35,370 | |
97,958 | |||
Technology Hardware, Storage & Peripherals—1.5% | |||
Apple, Inc.(8) | 414,995 | 71,051 | |
Textiles, Apparel & Luxury Goods—0.5% | |||
NIKE, Inc. Class B(8) | 239,095 | 22,862 | |
Quiksilver, Inc.(3)(6) | 2 | — | |
22,862 | |||
Total Common Stocks (Identified Cost $2,096,748) | 1,729,861 | ||
Warrants—0.0% | |||
Banks—0.0% | |||
CCF Holdings LLC, 4/1/24(3)(6) | 2,911,361 | 961 | |
IT Services—0.0% | |||
GTT Communications, Inc., 12/30/27(3)(6) | 27,745 | —(4) | |
Media—0.0% | |||
Tenerity, Inc., 4/1/24(3)(6)(7) | 7,203 | — | |
Oil, Gas & Consumable Fuels—0.0% | |||
Nabors Industries Ltd., 6/11/26(6) | 2,910 | 43 | |
Total Warrants (Identified Cost $1,422) | 1,004 | ||
Equity-Linked Notes—1.0% | |||
Banks—0.6% | |||
JPMorgan Chase Bank N.A. 144A(2)(3) | 29,500 | 28,499 |
See Notes to Schedule of Investments
6
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Shares | Value | ||
Financial Services—0.4% | |||
Goldman Sachs Finance Corp.(3) | 22,280,000 | $ 19,501 | |
Total Equity-Linked Notes (Identified Cost $52,337) | 48,000 | ||
Equity-Linked Warrants—2.2% | |||
Financial Services—2.2% | |||
Barclays Bank plc 144A(2)(3) | 42,120 | 35,110 | |
Merrill Lynch International & Co. CV(3) | 129,820 | 38,150 | |
Merrill Lynch International & Co. CV Series 0001(3) | 252,920 | 31,739 | |
104,999 | |||
Total Equity-Linked Warrants (Identified Cost $105,145) | 104,999 | ||
Total Long-Term Investments—98.6% (Identified Cost $5,703,441) | 4,776,264 | ||
TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—98.6% (Identified Cost $5,703,441) | 4,776,264 |
Value | ||
Written Options—(0.0)% | ||
(See open written options schedule) | ||
Total Written Options (Premiums Received $1,044) | $ (693) | |
TOTAL INVESTMENTS, NET OF WRITTEN OPTIONS—98.6% (Identified Cost $5,702,397) | $4,775,571 | |
Other assets and liabilities, net—1.4% | 67,003 | |
NET ASSETS—100.0% | $4,842,574 |
Abbreviations: | |
ADR | American Depositary Receipt |
DAC | Designated Activity Company |
EV | Enterprise Value |
LLC | Limited Liability Company |
LP | Limited Partnership |
REIT | Real Estate Investment Trust |
Footnote Legend: | |
(1) | Issued with a zero coupon. Income is recognized through the accretion of discount. |
(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 September 30, 2023, these securities amounted to a value of $1,479,683 or 30.6% of net assets. |
(3) | 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. |
(4) | Amount is less than $500 (not in thousands). |
(5) | Security in default; no interest payments are being received. |
(6) | Non-income producing. |
(7) | All or a portion of the security is restricted. |
(8) | All or a portion of the security is segregated as collateral for written options. The value of securities segregated as collateral is $217,105. |
Country Weightings† | |
United States | 90% |
United Kingdom | 3 |
Curaçao | 2 |
Bermuda | 2 |
Canada | 1 |
Cayman Islands | 1 |
Panama | 1 |
Total | 100% |
† % of total investments, net of written options, as of September 30, 2023. |
Open written options contracts as of September 30, 2023 were as follows: | |||||
Description of Options | Number of Contracts | Contract Notional Amount | Strike Price(1) | Expiration Date | Value |
Call Options(2) | |||||
Adobe, Inc. | (286) | $(16,445) | $575.00 | 10/20/23 | $(21) |
Advanced Micro Devices, Inc. | (1,075) | (13,975) | 130.00 | 10/20/23 | (8) |
Alibaba Group Holding Ltd. | (648) | (6,804) | 105.00 | 10/20/23 | (8) |
Align Technology, Inc. | (211) | (7,913) | 375.00 | 10/20/23 | (40) |
Alphabet, Inc. | (2,064) | (30,754) | 149.00 | 10/20/23 | (14) |
Apple, Inc. | (2,075) | (41,500) | 200.00 | 10/20/23 | (4) |
AutoZone, Inc. | (55) | (15,125) | 2,750.00 | 10/20/23 | (19) |
Boeing Co. (The) | (195) | (4,485) | 230.00 | 10/20/23 | (3) |
Capital One Financial Corp. | (1,515) | (18,180) | 120.00 | 10/20/23 | (3) |
Chevron Corp. | (134) | (2,412) | 180.00 | 10/20/23 | (3) |
Chipotle Mexican Grill, Inc. | (29) | (6,090) | 2,100.00 | 10/20/23 | (2) |
ConocoPhillips | (1,527) | (20,615) | 135.00 | 10/20/23 | (14) |
Costco Wholesale Corp. | (175) | (10,500) | 600.00 | 10/20/23 | (14) |
DuPont de Nemours, Inc. | (952) | (7,426) | 78.00 | 10/20/23 | (31) |
FedEx Corp. | (740) | (21,090) | 285.00 | 10/20/23 | (24) |
Global Payments, Inc. | (824) | (10,712) | 130.00 | 10/20/23 | (10) |
Home Depot, Inc. (The) | (9) | (306) | 340.00 | 10/20/23 | (— ) (3) |
Intuit, Inc. | (230) | (13,110) | 570.00 | 10/20/23 | (14) |
Marvell Technology, Inc. | (2,639) | (15,834) | 60.00 | 10/20/23 | (71) |
Mastercard, Inc. | (727) | (31,261) | 430.00 | 10/20/23 | (10) |
Meta Platforms, Inc. | (475) | (16,387) | 345.00 | 10/20/23 | (22) |
Micron Technology, Inc. | (1,315) | (10,191) | 77.50 | 11/17/23 | (79) |
Moody’s Corp. | (251) | (8,785) | 350.00 | 10/20/23 | (10) |
See Notes to Schedule of Investments
7
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
Open written options contracts as of September 30, 2023 were as follows (continued): | |||||
Description of Options | Number of Contracts | Contract Notional Amount | Strike Price(1) | Expiration Date | Value |
Call Options(2) (continued) | |||||
NIKE, Inc. | (1,008) | $(13,608) | $135.00 | 01/19/24 | $(5) |
NVIDIA Corp. | (877) | (43,850) | 500.00 | 10/20/23 | (97) |
Pioneer Natural Resources Co. | (507) | (12,675) | 250.00 | 10/20/23 | (30) |
RTX Corp. | (1,735) | (17,350) | 100.00 | 11/17/23 | (2) |
Salesforce, Inc. | (543) | (14,118) | 260.00 | 10/20/23 | (1) |
ServiceNow, Inc. | (167) | (10,271) | 615.00 | 10/20/23 | (31) |
Sherwin-Williams Co. (The) | (457) | (13,710) | 300.00 | 10/20/23 | (1) |
Starbucks Corp. | (1,419) | (15,325) | 108.00 | 10/20/23 | (1) |
TJX Cos., Inc. (The) | (1,990) | (19,104) | 96.00 | 10/20/23 | (12) |
Trip.com Group Ltd. | (1,761) | (6,868) | 39.00 | 10/20/23 | (26) |
Uber Technologies, Inc. | (2,059) | (10,295) | 50.00 | 10/20/23 | (60) |
Union Pacific Corp. | (334) | (8,183) | 245.00 | 10/20/23 | (1) |
Zoetis, Inc. | (217) | (4,231) | 195.00 | 10/20/23 | (2) |
Total Written Options | $(693) |
Footnote Legend: | |
(1) Strike price not reported in thousands. | |
(2) Exchange-traded options. | |
(3) Amount is less than $500 (not in thousands). |
See Notes to Schedule of Investments
8
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 1 in the Notes to Schedule of Investments):
Total Value at September 30, 2023 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
Assets: | |||||||
Debt Instruments: | |||||||
Corporate Bonds and Notes | $1,619,116 | $— | $1,616,914 | $2,202(1) | |||
Convertible Bonds and Notes | 1,182,394 | — | 1,099,253 | 83,141 | |||
Equity Securities: | |||||||
Common Stocks | 1,729,861 | 1,723,142 | 99 | 6,620(1) | |||
Convertible Preferred Stocks | 88,594 | 88,594 | — | — | |||
Warrants | 1,004 | 43 | — | 961(1) | |||
Preferred Stock | 2,296 | — | — | 2,296 | |||
Equity-Linked Notes | 48,000 | — | — | 48,000 | |||
Equity-Linked Warrants | 104,999 | — | — | 104,999 | |||
Total Assets | 4,776,264 | 1,811,779 | 2,716,266 | 248,219 | |||
Liabilities: | |||||||
Other Financial Instruments: | |||||||
Written Options | (693) | (637) | (56) | — | |||
Total Investments, Net of Written Options | $4,775,571 | $1,811,142 | $2,716,210 | $248,219 |
(1) | Includes internally fair valued securities currently priced at zero ($0). |
Securities held by the Fund with an end of period value of $437 were transferred from Level 3 to Level 2 due to an increase in trading activities at period end.
Securities held by the Fund with an end of period value of $19,501 were transferred from Level 2 to Level 3 due to a decrease in trading activities at period end.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
Total | Corporate Bonds And Notes | Common Stocks | Preferred Stocks | Warrants | Equity-Linked Notes | Equity-Linked Warrants | Convertible Bonds and Notes | ||||||||
Investments in Securities | |||||||||||||||
Balance as of June 30, 2023: | $ 148,473 | $ 2,296(a) | $ 7,247(a) | $ 2,227 | $ 1,165(a) | $ 29,500 | $ 106,038 | $ — | |||||||
Net realized gain (loss) | (33) | — | — | — | — | — | (33) | — | |||||||
Net change in unrealized appreciation (depreciation)(b) | (3,609) | 343 | (1,108) | 69 | (204) | (1,001) | (181) | (1,527) | |||||||
Purchases | 85,149 | — | 481 | — | — | — | — | 84,668 | |||||||
Sales(c) | (825) | — | — | — | — | — | (825) | — | |||||||
Transfers into Level 3(d) | 19,501 | — | — | — | — | 19,501 | — | — | |||||||
Transfers from Level 3(d) | (437) | (437) | — | — | — | — | — | — | |||||||
Balance as of September 30, 2023 | $ 248,219 | $ 2,202(a) | $ 6,620(a) | $ 2,296 | $ 961(a) | $ 48,000 | $ 104,999 | $ 83,141 |
(a) Includes internally fair valued security currently priced at zero ($0).
(b) The net change in unrealized appreciation (depreciation) on investments still held at September 30, 2023, was $(3,952).
(c) Amount is less than $500 (not in thousands).
(d) Includes paydowns on securities.
See Notes to Schedule of Investments
9
VIRTUS Income & Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
September 30, 2023
($ reported in thousands)
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at September 30, 2023:
Investments in Securities – Assets | Ending Balance at September 30, 2023 | Valuation Technique Used | Unobservable Inputs | Input Values | ||||
Preferred Stock: | ||||||||
LiveStyle, Inc. Series B | $ 2,296 | Discounted cash flows liquidation approach | Discount rate | 28.05% (27.60% - 28.50%) | ||||
Common Stocks: | ||||||||
CCF Holdings LLC | $ 4,450 | Market and Company Comparables | EV Multiples | 1.15x (0.55x - 1.93x) | ||||
5.42x (4.19x - 6.89x) | ||||||||
0.52x (0.14x - 0.84x) | ||||||||
Illiquidity Discount | 20% | |||||||
CCF Holdings LLC Class M | $ 1,056 | Market and Company Comparables | EV Multiples | 1.15x (0.55x - 1.93x) | ||||
5.42x (4.19x - 6.89x) | ||||||||
0.52x (0.14x - 0.84x) | ||||||||
Illiquidity Discount | 20% | |||||||
Erickson, Inc. | $ 154 | Market and Company Comparables | EV Multiples | 1.19x (0.61x - 3.13x) | ||||
11.18x (10.91x - 14.33x) | ||||||||
1.04x (0.50x - 1.92x) | ||||||||
M&A Transaction Multiples | 1.13x (0.62x - 1.35x) | |||||||
Illiquidity Discount | 20% | |||||||
LiveStyle, Inc. | $ —(1) | Discounted cash flows liquidation approach | Discount rate | 28.05% (27.60% - 28.50%) | ||||
Postmedia Network Canada Corp. | $ 591 | Market and Company Comparables | EV Multiples | 1.25x (0.49x - 2.68x) | ||||
8.74x (2.59x - 18.23x) | ||||||||
Illiquidity Discount | 10% | |||||||
Warrants: | ||||||||
CCF Holdings LLC | $ 961 | Market and Company Comparables | EV Multiples | 1.15x (0.55x - 1.93x) | ||||
5.42x (4.19x - 6.89x) | ||||||||
0.52x (0.14x - 0.84x) | ||||||||
Illiquidity Discount | 20% | |||||||
Black-Scholes Model | Volatility | 44.28% | ||||||
(1) Includes internally fair valued securities currently priced at zero ($0). |
See Notes to Schedule of Investments
10
VIRTUS Income & Growth Fund
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2023
Note 1. Security Valuation
The Fund’s Board of Trustees have 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.
• | Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities). |
• | 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 Investment Adviser’s 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. Illiquid, restricted equity securities and illiquid private placements are internally fair valued by the Investment Adviser’s Valuation Committee, and 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”) at the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4 p.m. Eastern time) 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 in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange-Traded Funds (“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.
Debt instruments, including convertible bonds, and 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, activity of the underlying equities, 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 instruments that are internally fair valued by the Investment Adviser’s Valuation Committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives, such as options, that are actively traded are valued at the last posted settlement price from the exchange where they are principally traded and are categorized as Level 1 in the hierarchy. Over-the-counter 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 funds and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is categorized as Level 1 in the hierarchy.
A summary of the inputs used to value the Fund’s net assets 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.
For additional information about significant accounting policies, refer to the Fund’s most recent semi or annual report.
11