AllianzGI Preferred Securities and Income

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Mutual Fund Fixed Income Hybrid

AllianzGI Preferred Securities and Income

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Ticker
APEIX
CUSIP
92838V619
POP
$ (as of )
Inception
05/30/2018
Total Assets by Class
$9,390,218.26 (as of 10/22/2021)
Total Assets by Fund
$25,611,030.84 (as of 10/22/2021)
Morningstar Category
Preferred Stock

Portfolio Overview

Investment Overview

The Fund seeks to generate total return consisting of high current income and capital appreciation by building a diversified portfolio of preferred securities.

Effective February 1, 2021, this fund's name and investment adviser have changed. The fund's distributor is now VP Distributors, LLC.

Management Team

Investment Partner

Allianz Global Investors U.S. LLC

At Allianz Global Investors, active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors


Learn more about Allianz Global Investors U.S. LLC

Investment Professionals

Pappo, Carl

Carl W. Pappo, Jr., CFA

Managing Director, CIO US Fixed Income

Industry start date: 1993
Start date as fund Portfolio Manager: 2018

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Piersol, Willow

Willow Piersol, CFA

Director, Portfolio Manager, and Senior Analyst

Industry start date: 1998
Start date as fund Portfolio Manager: 2018

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Key Features

High-Quality Focus

Strives to provide a high level of income with a bias toward investing in higher-quality companies

Attractive Yield Potential

While offering similar yields to high yield bonds, preferred securities historically have had higher ratings and stronger underlying issuers

Tax-Advantaged Income Potential

Many preferred securities pay qualified dividend income (QDI); QDI is taxed at the same rate as long-term capital gains, which are lower than rates for ordinary income

Portfolio Characteristics

Top Holdings (% Fund)

(as of 09/30/2021)
Security
MetLife Inc, 10.7500% 08/01/2039
6.49
 6.49%
Athene Holding Ltd
3.79
 3.79%
First Horizon Corporation Depositary Shs Repr 1/4000th 6.5% Non-Cum Red Perp Pfd Registered S
3.79
 3.79%
Vodafone Group PLC, 5.1250% 06/04/2081
3.57
 3.57%
Liberty Mutual Group Inc, 4.1250% 12/15/2051
3.23
 3.23%
Wells Fargo & Company Depositary Shs Repr 1/1000th Non-Cum Perp Red Pfd Rg Shs A Ser -CC-
3.18
 3.18%
Global Atlantic Fin Co, 4.7000% 10/15/2051
3.14
 3.14%
Ally Financial Inc, 4.7000% 08/15/2170
3.04
 3.04%
Regions Financial Corp Depositary Shs Repr 1/40th Non-Cum Red Perp Pfd Ser C
3.03
 3.03%
Edison International, 5.3750% 09/15/2170
2.87
 2.87%

Holdings are subject to change.

Sector Allocation (% Fund)

(as of 09/30/2021)
Financials
71.44
 71.44%
Industrials
22.65
 22.65%
Utilities
3.33
 3.33%
Cash & Equivalents
1.76
 1.76%
Treasury Notes and Bonds
0.83
 0.83%

Performance & Risk

Growth of $10,000 Investment

From to
This chart assumes an initial investment of $10,000 made on for Class ddd shares including any applicable sales charges. Performance assumes reinvestment of dividends and capital gain distributions.

Performance

As of
As of

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

Yields / Distributions1

(as of )
30-day SEC Yield
30-day SEC Yield (unsubsidized)
Distribution Rate (at NAV)
Income Distributions Current Month
Income Distributions YTD

Distribution History2

(as of )
Ex-Date
Income
STCG
LTCG
Reinvest NAV

Risk Statistics3

(as of )
Fund Index
R2
Beta
Alpha
Std Dev

Risk Considerations

Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio's assets as intended.
Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Preferred Stocks: Preferred stocks may decline in price, fail to pay dividends, or be illiquid.
Debt Instruments: Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer's or counterparty's deterioration or default.
Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Contingent Convertible Securities: Contingent convertible securities (CoCos") are subject to greater levels of credit and liquidity risk than fixed income securities generally. They may rank junior to other creditors in the event of a liquidation or other bankruptcy-related event and become further subordinated as a result of conversion from debt to equity."
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Liquidity: Certain securities may be difficult to sell at a time and price beneficial to the portfolio.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the portfolio.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.
Prospectus: For additional information on risks, please see the fund's prospectus.

Related Literature

Marketing Materials

Virtus AllianzGI Preferred Securities and Income Fund Fact Sheet - R6
Virtus AllianzGI Preferred Securities and Income Fund Fact Sheet - INST
Virtus AllianzGI Preferred Securities and Income Fund Presentation

Distributions

Mutual Fund Distributions

Financial Materials

Virtus Strategy Trust Statutory Prospectus
Virtus AllianzGI Preferred Securities and Income Fund Summary Prospectus
Virtus Strategy Trust SAI
Multi-Strategy Funds Trust Annual Report
Virtus Strategy Trust Semiannual Report
Virtus Strategy Trust Prospectus Supplement XBRL 497E 06 11 2021
Virtus Strategy Trust Prospectus XBRL 485B 02 01 2021

Holdings

AllianzGI Preferred Securities And Income Holdings Monthly
Virtus AllianzGI Preferred Securities and Income Fund Top Holdings
Virtus Strategy Trust Schedule F Q1
Virtus AllianzGI Preferred Securities And Income Fund Holdings Fiscal Q3

SEC 19(a) Notices

Virtus AllianzGI Preferred Securities and Income SEC 19(a) Notice

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 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: 30-day SEC Yield is a standardized yield calculated according to a formula set by the SEC, and is subject to change. 30-day SEC Yield (unsubsidized) is the 30-day SEC Yield without the effect of applicable expense waivers. Distribution Rate is calculated by (a) annualizing the latest income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

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: Avg. Weighted Market Cap (bn): The total dollar market value of all of a company’s outstanding shares. Trailing P/E Ex-Negative Earnings: Per-share stock price divided by the latest 12-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: Effective Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's effective 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 Rating 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. Ratings do not take into account the effects of sales charges and loads.

© 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.