Virtus Global Multi-Sector Income Fund (VGI)

Overview

Virtus Global Multi-Sector Income Fund is a closed-end fund with a focus on global fixed income investments. The fund's primary goal is to maximize current income while safeguarding capital through extensive credit research and the identification of opportunities in undervalued areas of the global bond markets. By diversifying its holdings across a minimum of 14 sectors, the fund is able to provide exposure to both U.S. and non-U.S. issuers. This includes a mix of investment-grade and high-yield corporate debt, government securities, bank loans, mortgage-backed and asset-backed securities, as well as taxable and tax-exempt municipal bonds. Typically, over 80% of the managed assets are allocated to fixed income securities, with substantial investments in issuers beyond the United States, highlighting the fund's commitment to international diversification and effective risk management.

The fund is managed by a seasoned team of professionals at Newfleet Asset Management, employing strategies such as sector rotation and strict risk management controls to improve returns and mitigate volatility. By utilizing leverage, the Virtus Global Multi-Sector Income Fund aspires to deliver high current income for its shareholders, establishing itself as a prominent entity in the multi-sector income bracket of the fixed income market.

Products and Services

• Global Fixed Income Investments:

  The fund invests in a diverse array of fixed income securities from various global markets. This includes both U.S. and international debt instruments, allowing the fund to seek high income while reducing risk through diversification.

• Investment Grade and High-Yield Corporate Debt:

  The fund allocates assets to both high-quality investment-grade securities and higher-risk high-yield corporate bonds. This dual strategy aims to maximize returns while maintaining a balanced risk profile.

• Government Securities:

  Incorporating government bonds into the portfolio provides a level of safety and stability. These securities contribute to capital preservation while still generating income.

• Mortgage-Backed and Asset-Backed Securities:

  Investments in these securities offer the potential for attractive yields, leveraging the backing of notable asset classes to enhance return opportunities while managing risk.

• Bank Loans:

  The fund may invest in floating rate bank loans, which can provide a hedge against rising interest rates while offering competitive income generation.

• Taxable and Tax-Exempt Municipal Bonds:

  Investments in municipal bonds, both taxable and tax-exempt, can enhance yield and provide beneficial tax outcomes for shareholders, catering to a variety of investor needs.

• Leverage Utilization:

  The use of leverage allows the fund to increase its investment potential, with the aim of enhancing income for shareholders. This strategy, however, is approached with mitigated risk through careful management.

• Sector Rotation Strategy:

  The management team strategically rotates allocations among sectors based on market conditions, maximizing returns as different sectors perform variably over time.

• Risk Management:

  Discipline in risk control is fundamental to the fund's strategy. Comprehensive risk management techniques safeguard capital while striving for optimal income generation.