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Mutual Fund Asset Allocation

Herzfeld

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Ticker
VHFAX
CUSIP
92828W874
POP
$ (as of )
Inception
09/05/2012
Total Assets by Class
$2,382,581.88 (as of 08/05/2020)
Total Assets by Fund
$13,533,082.30 (as of 08/05/2020)
Morningstar Category
Allocation--50% to 70% Equity

Portfolio Overview

Investment Overview

The Fund seeks to generate attractive risk-adjusted returns through an actively managed portfolio of primarily closed-end funds. Extensive closed-end fund industry expertise and rigorous quantitative and qualitative analysis strive to capitalize on potential price dislocations and market inefficiencies.

Effective August 5, 2020, the fund will be closed to new investors and additional investor deposits. On or about August 18, 2020, the fund will be liquidated. For more information, please refer to the prospectus supplement dated June 18, 2020.

Management Team

Investment Partner

Thomas J. Herzfeld Advisors

Thomas J. Herzfeld Advisors' investment philosophy is predicated on recognizing the recurring valuation patterns found in the closed-end fund industry and exploiting them in a systematic manner.


Learn more about Thomas J. Herzfeld Advisors

Investment Professionals

Thomas J. Herzfeld

Chairman and President

Industry start date: 1968
Start date as fund Portfolio Manager: 2012

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Erik M. Herzfeld

President and Portfolio Manager

Industry start date: 1998
Start date as fund Portfolio Manager: 2012

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Ryan Paylor

Portfolio Manager

Industry start date: 2005
Start date as fund Portfolio Manager: 2018

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Key Features

Extensive Fundamental Research

Searches for well-managed closed-end funds trading at attractive relative values

Opportunistic Approach

Engages an active trading strategy based on a deep understanding of each closed-end fund's characteristics and changing fundamentals

A Complement to Traditional Assets

A flexible, unconstrained portfolio approach can help expand overall investor diversification with a highly specialized return source

Portfolio Characteristics

Top Holdings (% Fund)

(as of 06/30/2020)
Security
Nexpoint Strategic Opportunities Fund
15.07
 15.07%
Highland Floating Rate Opportunities Fund
11.41
 11.41%
Cornerstone Strategic Value Fund Inc
9.16
 9.16%
Pgim High Yield Bond Fund Inc
7.53
 7.53%
Pgim Global High Yield Fund Inc
6.90
 6.90%
Eaton Vance Ltd Duration Income Fund
5.99
 5.99%
Nuveen Credit Strategies Income Fund
5.55
 5.55%
Eaton Vance Short Duration Diversified Income Fund
4.74
 4.74%
Cornerstone Total Return Fund Inc
4.04
 4.04%
Apollo Tactical Income Fund Inc
3.18
 3.18%

Holdings are subject to change.

Asset Allocation (% Fund)

(as of 06/30/2020)
Closed End Funds (Domestic Bonds) 30.33%
Closed End Funds (Senior Loan) 16.95%
Closed End Funds (Foreign Equity) 15.05%
Closed End Funds (Domestic Equity) 13.18%
Preferred Stocks 9.97%
Closed End Funds (Foreign Bonds) 7.82%
Cash and Equivalents 3.30%
Closed End Funds (Muni Bonds) 1.98%
Closed End Funds (Convertibles) 1.43%

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
YTD 3 Month 1 Year 3 Years 5 Years 10 Years Since Inception

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

Distribution History2

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

Risk Statistics3

(as of )
Fund Index
R2
Beta
Alpha
Std Dev

Risk Considerations

Closed-End Funds: Closed-end funds may trade at a discount or premium from their net asset values, which may affect whether an investor will realize gains or losses. They may also employ leverage, which may increase volatility.
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.
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.
Real Estate: The fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.
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.
Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.
Fund of Funds: Because the fund can invest in other funds, it indirectly bears its proportionate share of the operating expenses and management fees of the underlying fund(s).
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.
Prospectus: For additional information on risks, please see the fund's prospectus.

Documents & Resources

Marketing Materials

Virtus Herzfeld Fund Fact Sheet - A
Virtus Herzfeld Fund Fact Sheet - I
Virtus Herzfeld Fund Commentary
Focus On: Virtus Herzfeld Fund

Financial Materials

Virtus Opportunities Trust Statutory Prospectus
Virtus Herzfeld Fund Summary Prospectus
Virtus Opportunities Trust Prospectus Supplement XBRL 497E 03 18 2020
Virtus Herzfeld Fund Prospectus Supplement XBRL 497E 03 11 2020
Virtus Opportunities Trust Prospectus XBRL 485B 01 28 2020
Virtus Opportunities Trust SAI
Virtus Opportunities Trust Annual Report
Virtus Opportunities Trust Semiannual Report
Mutual Fund Distributions

Holdings

Virtus Herzfeld Fund Quarterly Holdings
Virtus Herzfeld Fund Top Holdings

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 distribution for fixed income funds or funds less than 1 year old, or (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.

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 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. Ratings do not take into account the effects of sales charges and loads.

© 2020 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.