Virtus Diversified Income & Convertible Fund
Virtus Diversified Income & Convertible Fund
Investment Overview
The Fund seeks to provide total return through a combination of current income and capital appreciation, while seeking to mitigate the risk of capital loss. The Fund strives to dynamically allocate across convertibles, equities, and income-producing securities.
The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified portfolio of convertible securities, income-producing equity securities and income-producing debt and other instruments of varying maturities, of which at least 50% of total managed assets are invested in convertibles. The Fund has the latitude to write covered call options on the stocks held in the equity portion.
Attempts to dampen volatility, relative to an equity-only portfolio, due to the asymmetric risk/return features historically exhibited by convertible securities.
Managed by an experienced investment team that has a long track record in closed-end fund management.
The Fund has a limited term and will terminate on the first business day following the fifteenth anniversary of the effective date of its registration statement, May 22, 2030, absent Trustee and shareholder approval to amend the limited term provision of the Fund's Amended and Restated Agreement and Declaration of Trust, as provided therein.
Effective June 22, 2022, this Fund's name has changed.
Effective July 25, 2022, this Fund's subadviser has changed.
Contact Us
Contact your financial representative for more information.
Email or call for service at
1-866-270-7788
Investment Partner
Voya Investment Management
Voya Investment Management (Voya IM) strives to help investors push what's possible. As the asset management business of Voya Financial (NYSE: VOYA), Voya IM seeks to understand and anticipate client needs, delivering differentiated solutions across public and private fixed income, equity, and multi-asset platforms, including private markets and alternatives.
Learn more about Voya Investment Management
Investment Professionals
Justin M. Kass, CFA
Senior Managing Director, Chief Investment Officer, Co-Head of Income & Growth
Industry start date: 1998
Start date as fund Portfolio Manager: 2015
Michael E. Yee
Managing Director, Lead Portfolio Manager – Income & Growth
Industry start date: 1994
Start date as fund Portfolio Manager: 2015
David J. Oberto
Senior Vice President, Lead Portfolio Manager – Income & Growth
Industry start date: 2003
Start date as fund Portfolio Manager: 2022
Ethan Turner, CFA
Vice President, Portfolio Manager – Income & Growth
Industry start date: 2005
Start date as fund Portfolio Manager: 2023
Performance
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.
Performance reflects the deduction of fund operating expenses. Performance does not reflect the incurrence of brokerage expenses, which typically apply to exchange traded products. Total return net of brokerage expenses would be lower than the total returns on
Expenses
Portfolio Breakdown (% Fund)
| Convertible Securities | |
| Common Equities | |
| High Yield Bonds | |
| Cash and Equivalents | |
| Derivatives |
Allocations are subject to change daily.
Ratings Distribution (% Fixed Income)
| AAA | |
| AA | |
| A | |
| BBB | |
| BB | |
| B | |
| CCC and Below | |
| Not Rated |
Credit ratings issued by Nationally Recognized Statistical Rating Organizations assess the credit worthiness of the issuers of the underlying securities and not to the Fund or its shares. Ratings are measured using a scale that ranges from AAA (highest) to NR (not rated). Not rated securities do not necessarily indicate low quality. The security's credit rating does not eliminate risk and credit ratings are subject to change. Credit Quality reflects the higher of the ratings of Standard & Poor's Corporation and Moody's Investors Service, Inc. Only one rating will be utilized if only one is available. Ratings are then adjusted to the Standard & Poor's rating tiers shown. Ratings are subject to change.
Sector Allocation (% Invested Assets)
| Information Technology | |
| Consumer Discretionary | |
| Health Care | |
| Industrials | |
| Financials | |
| Communication Services | |
| Energy | |
| Consumer Staples | |
| Utilities | |
| Real Estate | |
| Materials |
Sector Allocation (% Invested Assets)
| Information Technology | |
| Consumer Discretionary | |
| Health Care | |
| Industrials | |
| Financials | |
| Communication Services | |
| Energy | |
| Consumer Staples | |
| Utilities | |
| Real Estate | |
| Materials |
Allocations are subject to change daily.
Top Holdings (% Fund)
| Security | |
|---|---|
| Dexcom, Inc. 0.25% 15-nov-2025 | |
| Apple Inc | |
| Wells Fargo & Company 7.5 % Non Cum Perp Conv Pfd Registered Shs A Series L | |
| Microsoft Corp | |
| Alphabet, Inc.- Cl A | |
| Zillow Group, Inc. 2.75% 15-may-2025 | |
| Palo Alto Networks, Inc. 0.375% 01-jun-2025 | |
| Axon Enterprise, Inc. 0.5% 15-dec-2027 | |
| Gs Finance Corp. 0.5% 29-dec-2027 | |
| Liberty Broadband Corporation. 3.125% 31-mar-2053 |
Holdings are subject to change.
Assets (in millions)
(as of 05/31/2023)| Total Net Assets | $209.65 |
| Total Preferred Assets | $30.00 |
| Mandatory Redeemable Preferred Shares | $30.00 |
| Total Borrowed Debt | $75.00 |
| Total Managed Assets | $314.65 |
Effective Leverage
(as of 05/31/2023)| Preferred Assets | 9.53% |
| Borrowed Debt | 23.84% |
| Total Effective Leverage | 33.37% |
Borrowed Debt Leverage Statistics
(as of 05/31/2023)| Long Term Notes | $50.00 |
| Short Term Loan | $25.00 |
Assets (in Millions):
Total Net Assets: includes net assets applicable to Common Shareholders
Total Preferred Assets: consists of the value of: Auction Rate Preferred Shares, and/or Series A Cumulative Preferred Shares, and/or Mandatory Redeemable Preferred Shares
Total Managed Assets: Total Net Assets + Total Preferred Assets + Total Borrowed Debt
Effective Leverage:
Preferred Assets: % consists of Total Preferred Assets divided by Total Managed Assets
Borrowed Debt: % is short term debt + long term debt divided by Total Managed Assets
Total Effective Leverage (%) consists of Total Preferred Assets + Total Borrowed Debt, as applicable, divided by Total Managed Assets
Distributions are not guaranteed and are subject to change.
Distributions may be comprised of net investment income, capital gains and/or return of capital. Please refer to Section 19a notices below, if applicable for estimates on the composition of the distribution.
Year-to-Date Distribution History
| Month | Ex-Date | Payable Date | Distribution |
|---|---|---|---|
| May | 05/10/2023 | 06/01/2023 | $0.180000 |
| April | 04/12/2023 | 05/01/2023 | $0.180000 |
| March | 03/10/2023 | 04/03/2023 | $0.180000 |
| February | 02/10/2023 | 03/01/2023 | $0.180000 |
| January | 01/19/2023 | 02/01/2023 | $0.180000 |
You should not draw any conclusions about the Fund’s investment performance from its distributions. Please view the Fund’s Section 19a notices below, if applicable, which set forth information regarding the estimated composition of the distributions, including any portion that may constitute a return of capital.
Fund Distributions and Managed Distribution Plan
Under the terms of the Fund’s managed distribution policy, the Fund seeks to maintain a consistent distribution level that may be paid in part or in full from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund’s aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund’s assets and will constitute a return of the shareholder’s capital. A return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of the Fund.
The amounts and sources of distributions reported in Section 19(a) Notices are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of the fiscal year and may be subject to changes based on tax regulations. Please note that the characterization of Fund distributions for federal income tax purposes is different from book accounting generally accepted account principles (“GAAP”). 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. Please consult a tax professional regarding specific tax matters.
Please view the Fund’s Section 19-a notices, which set forth information regarding the composition of the distributions, including any portion that may constitute a return of capital.
Form 8937 Organizational Actions
Automatic Reinvestment Plan
This plan offers shareholders a convenient way to acquire additional shares of the fund. Registered holders will be automatically placed in the Plan. If shares are held at a brokerage firm, contact your broker about participation.
Net Asset Value vs. Market Price
Net Asset Value (NAV) represents the total value of all assets held by the Fund (minus its total liabilities), divided by the total number of common shares outstanding. The net asset value returns reflect the performance of the manager. Market price is the price at which investors may purchase or sell shares of the Fund. Market price is determined in the open market by buyers and sellers, based on supply and demand. The Fund’s Market Price fluctuates throughout the day and may differ from its underlying NAV. Shares of the Fund may trade at a premium (higher than) or a discount (lower than) to NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decline. The Fund has no control over the market price. The difference between the market price and the NAV (Premium/Discount) is expressed as a percentage of NAV.
Disclosures
There can be no assurance that the
This information does not represent an offer, or the solicitation of an offer, to buy or sell securities of the Fund.
Contact your financial representative for more information, or email or call for service at 1-866-270-7788.
Risk Considerations
Distributions
| May 25, 2023 | |
| May 16, 2023 | |
| April 19, 2023 | |
| March 16, 2023 | |
| March 3, 2023 | |
| February 17, 2023 | |
| January 19, 2023 | |
| December 20, 2022 | |
| December 19, 2022 | |
| December 2, 2022 | |
| November 18, 2022 | |
| October 17, 2022 | |
| September 8, 2022 | |
| August 18, 2022 | |
| July 15, 2022 | |
| June 16, 2022 | |
| June 7, 2022 | |
| March 16, 2022 | |
| December 17, 2021 | |
| December 15, 2021 | |
| December 1, 2021 | |
| November 1, 2021 | |
| October 1, 2021 |
Holdings
Section 19a Notices
| June 2023 | |
| May 2023 | |
| April 2023 | |
| March 2023 | |
| February 2023 | |
| January 2023 - Special | |
| January 2023 | |
| December 2022 | |
| November 2022 | |
| October 2022 | |
| September 2022 | |
| August 2022 | |
| July 2022 | |
| June 2022 | |
| May 2022 | |
| April 2022 | |
| March 2022 | |
| February 2022 | |
| January 2022 - Special | |
| January 2022 | |
| December 2021 | |
| November 2021 | |
| October 2021 | |
| September 2021 | |
| August 2021 | |
| July 2021 | |
| June 2021 |
News Releases/Communications
| May 23, 2023 - Virtus Closed-End Funds Announce Results of Joint Annual Meeting of Shareholders | |
| April 11, 2023 - Joint Annual Meeting of Shareholders Proxy Statement | |
| March 23, 2023 - Certain Virtus Closed-End Funds Announce Date of Shareholder Meetings | |
| January 27, 2023 - Certain Virtus Closed-End Funds Name Ethan Turner as Portfolio Manager | |
| September 28, 2022 - Certain Virtus Closed-End Funds Announce Results of Shareholder Meeting | |
| August 4, 2022 - Joint Special Meeting of Shareholders Proxy Statement | |
| July 21, 2022 - Certain Virtus Closed-End Funds Announce Shareholder Proposal For New Subadvisory Agreements | |
| July 13, 2022 - Virtus Closed-End Funds Announce Shareholder Meeting Results | |
| June 8, 2022 - Virtus Closed-End Funds Announce Fund Name Changes | |
| May 31, 2022 - Virtus AllianzGI Closed-End Funds Joint Proxy Statement | |
| May 18, 2022 - Virtus AllianzGI Closed-End Funds Announce Future Change in Subadviser | |
| December 17, 2021 - Virtus AllianzGI Diversified Income & Convertible Fund Institutes Managed Distribution Plan, Increases Monthly Distribution to $0.18/Share | |
| July 16, 2021 - Certain Virtus AllianzGI Closed-End Funds Announce Future Change In Portfolio Management Team | |
| June 8, 2021 - Virtus AllianzGI Closed-End Funds Joint Annual Meeting of Shareholders Proxy Statement | |
| January 27, 2021 - AllianzGI Closed-End Funds Provide Additional Information on Fund Name Change | |
| AllianzGI Diversified Income Convertible Fund Press Release July 31 2020 | |
| AllianzGI Monthly Dividend Press Release For ACV AIO NCV NCZ CBH August 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release March 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release February 2020 | |
| AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ October 2019 | |
| AllianzGI Monthly Dividend Press Release NCZ NCV ACV CBH AIO For January 2021 | |
| NCV NCZ ACV CBH Press Release September 2019 | |
| ACV Press Release 10.31.19 | |
| AllianzGI CEF Second Adjournment of Special Meeting - Press Release - 12.24.20 | |
| AllianzGI Diversified Income Convertible Fund Press Release 10.31.20 | |
| AllianzGI Diversified Income Convertible Fund Press Release June 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release July 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release May 2020 | |
| AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ August 2019 | |
| AllianzGI Monthly Dividend Press Release For AIO NCV NCZ CBH ACV December 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO CBH ACV April 2020 Revised | |
| ACV, AIO, CBH, NCV, NCZ - Press Release | |
| AllianzGI Diversified Income Convertible Fund ACV Press Release Form 8K | |
| AllianzGI Diversified Income Convertible Fund Press Release January 31 2020 | |
| AllianzGI Funds ACV and AIO Press Release Special Year-End Distribution - December 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ Press Release June 2020 | |
| AllianzGI Monthly Dividend Press Release For AIO ACV CBH NCV NCZ January 2020 | |
| AllianzGI Monthly Dividend Press Release For ACV CBH NCV NCZ December 2019 | |
| AllianzGI Monthly Dividend Press Release For AIO NCV NCZ CBH ACV October 2020 | |
| NCV NCZ ACV CBH Press Release March 2019 | |
| ACV Press Release 10.31.18 | |
| Allianz CEF Adjournment of Special Meeting - Press Release | |
| AllianzGI Diversified Income Convertible Fund Fiscal Quarter Ended April 30 2020 |