Our Products | Mutual Funds | Newfleet Credit Opportunities (VCOAX)

Back to Products

Investment Opportunity

The fund seeks to generate long-term total return from a combination of capital appreciation and interest by seeking the best opportunities in distressed, stressed, and performing credit.

Effective May 8, 2017 this fund changed its name from the Virtus Credit Opportunities Fund.

Fund Risks

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value and have longer settlement times than other investments, which can make loans relatively illiquid at times.

Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.

Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets.

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

Prospectus: For additional information on risks, please see the fund's prospectus.

Key Stats (as of 6/23/2017)

Inception: 6/5/2015
Ticker: VCOAX
CUSIP: 92835M760
Fund No: 2460
Net Assets by Fund: $91,438,836
Net Assets by Class: $1,920,108

Management Team

David L. Albrycht, CFA
David L. Albrycht, CFA Newfleet Asset Management, LLC

Industry start date: 1985

Start date with Fund: 2015

Timothy Dias, CFA, CAIA
Timothy Dias, CFA, CAIA Newfleet Asset Management, LLC

Industry start date: 2004

Start date with Fund: 2017

Patrick D. Fleming
Patrick D. Fleming Newfleet Asset Management, LLC

Industry start date: 2015

Start date with Fund: 2017

Eric Hess, CFA
Eric Hess, CFA Newfleet Asset Management, LLC

Industry start date: 2006

Start date with Fund: 2017

Newfleet Asset Management, LLC

Newfleet leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction.

Average Annual Total Returns

Monthly Performance (%) (as of 5/31/2017)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 0.90 3.05 8.05 NA NA NA 3.54
POP -2.88 -0.82 4.00 NA NA NA 1.57
Quarterly Performance (%) (as of 3/31/2017)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 2.02 2.02 8.66 NA NA NA 3.31
POP -1.80 -1.80 4.58 NA NA NA 1.16
Index 1.95 1.95 13.01 4.16 5.86 5.88 NA

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Sales Charge and Expenses

POP (Public Offering Price) performance reflects the deduction of the maximum sales charge of 3.75%. A contingent deferred sales charge of 0.50% may be imposed on certain redemptions within 18 months on purchases on which a finder’s fee has been paid.

The fund class gross expense ratio is 1.97%. The net expense ratio is 1.40%, which reflects a contractual expense reimbursement in effect through 04/30/2018. This ratio reflects the direct and indirect expenses paid by the Fund.

The net expense ratio minus the indirect expenses incurred by the underlying funds in which the Fund invests is 1.35%.

Index: 50% Bloomberg Barclays High Yield / 50% Credit Suisse Leveraged Loan
The composite index consists of 50% Bloomberg Barclays U.S. High-Yield Bond Index (an index that measures fixed rate non-investment grade debt securities of U.S. and non-U.S. corporations, calculated on a total return basis) and 50% Credit Suisse Leveraged Loan Index (an index designed to mirror the investable universe of the U.S. dollar denominated leveraged loan market, calculated on a total return basis). The composite index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

Daily Price (as of 6/23/2017)

NAV Change ($)
10.03 0.00
POP Change ($)
10.42 0.00

Yields/Distributions1 (as of 5/31/2017)

Distribution Yield (at NAV) 4.37%
SEC Yield 4.48%
SEC Yield (gross) 4.22%
Distributions YTD $0.110000

Top Holdings (% Fund)
(as of 3/31/2017)

Terraform Global Operating Llc, 9.75% 08/15/2022 4.46
Energy Future Holdings, 06/30/2017 3.96
Altegrity Inc, 9.50% 07/01/2019 3.92
Lbi Media Inc, 10.00% 04/15/2019 2.96
Avaya Inc 01/19/2018, 01/23/2018 2.89
CPI Acquisition, Inc., 08/17/2022 2.77
Caesars Entertainment Operating Co., Inc., 10% 12/15/2018 2.70
Citgo Holding Inc, 10.75% 02/15/2020 2.52
First Data Corp, 03/24/2021 2.49
Caesars Entertainment Operating Co., Inc., 03/01/2017 2.41

Top Sectors (Percent NewFleet Hart)
(as of 3/31/2017)

Corporate - High Yield 68.06
Bank Loans 28.71
Equity 2.17
Cash 1.06
Corporate - High Quality 0.00
Credit Default Swaps 0.00
Currency 0.00
Emerging Market - High Yield 0.00
Non-Agency Commercial MBS 0.00
Non-Agency Residential MBS 0.00
Non-USD 0.00

(as of 3/31/2017)

Duration 2.51 years

Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800- 243-4361 or visit www.virtus.com to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. NAV returns do not include the effect of any applicable sales charges. POP and w/CDSC returns include the effect of maximum applicable sales charges.

Returns for periods of less than one year are cumulative total returns.

1 Yields/Distributions: Distribution Yield (at NAV) is calculated by (a) annualizing the latest distribution for fixed income funds or funds less than 1 year old (b) summing all distributions over the preceding 12 months for all other funds, and dividing the NAV on the last business date of the period. SEC Yield represents the net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's public offering share price at the end of the 30-day period.  Gross SEC Yield represents the yield if there were no expense reimbursements.

2 Distribution History: Distributions are represented on a cash basis and may be reclassified at year end for tax purposes. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. STCG: Short Term Capital Gain, LTCG: Long Term Capital Gain

3 Risk Statistics:  R2 is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Beta is a quantitative measure of the volatility of a given portfolio to the overall market. Alpha is a risk adjusted measure of an investment's excess return relative to a benchmark. A positive Alpha indicates that the investment produced a return greater than expected for the risk (as measured by Beta) taken. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Risk Statistics are calculated using 36 monthly returns.

4 Characteristics: For Equity Funds:Trailing P/E: Per-share stock price divided by the latest12-months Earnings per Share; Price/Cash Flow: Per-share stock price divided by the per-share operating cash flow; Price/Book: Per-share stock price divided by the latest 12-month per-share Book Value; 3-Year EPS Growth Rate: Average of earnings per share growth for latest 3-year period. The 3-Year EPS Growth Rate is not a forecast of the fund's performance.

4 Characteristics: For Fixed Income Funds:  Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's duration is five years, a 1% increase in interest rates would result in a 5% decline in the fund's price. Similarly, a 1% decline in interest rates would result in a 5% gain in the fund's price.

Morningstar Disclosures:
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.