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Closed-End Fund Multi-Asset

Virtus Diversified Income & Convertible Fund

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Ticker
CUSIP
Inception
Market Price
$
(as of )
Premium/Discount
%
Managed Assets
$ (as of )
Net Assets
$ (as of )
Average Daily Volume
(as of )
Shares Outstanding
Distribution Frequency

Portfolio Overview

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.

Strives to dynamically allocate across convertibles, equities, and income-producing securities. The Fund normally invests at least 50% of total managed assets in convertibles, and 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.

15-year limited term structure from the effective date of the Fund's registration statement, which may be extended by one year, based on market conditions.

Effective June 22, 2022, this Fund's name has changed.

Effective July 25, 2022, this Fund's subadviser has changed.

Management Team

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

Kass, Justin

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

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Yee, Michael

Michael E. Yee

Managing Director, Lead Portfolio Manager – Income & Growth

Industry start date: 1994
Start date as fund Portfolio Manager: 2015

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Oberto, David

David J. Oberto

Senior Vice President, Lead Portfolio Manager – Income & Growth

Industry start date: 2003
Start date as fund Portfolio Manager: 2022

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Performance & Risk

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.

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 market value shown in the table.

Expenses

Portfolio

Portfolio Breakdown (% Fund)

(as of 06/30/2022)
Convertible Securities
59.93
 59.93%
Common Equities
21.80
 21.80%
High Yield Bonds
14.01
 14.01%
Cash and Equivalents
4.27
 4.27%
Derivatives
-0.01
 -0.01%

Allocations are subject to change daily.

Credit Quality (% Invested Assets)

(as of 06/30/2022)
AAA
0.00
 0.00%
AA
0.00
 0.00%
A
2.08
 2.08%
BBB
5.78
 5.78%
BB
10.72
 10.72%
B
8.82
 8.82%
CCC and Below
0.95
 0.95%
Not Rated
71.65
 71.65%

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)

(as of 06/30/2022)
Information Technology
32.97
 32.97%
Health Care
14.35
 14.35%
Consumer Discretionary
12.86
 12.86%
Communication Services
11.87
 11.87%
Industrials
7.46
 7.46%
Financials
6.13
 6.13%
Energy
4.62
 4.62%
Materials
3.13
 3.13%
Utilities
2.95
 2.95%
Real Estate
2.17
 2.17%
Consumer Staples
1.50
 1.50%

Sector Allocation (% Invested Assets)

(as of 06/30/2022)
Information Technology
32.97
 32.97%
Health Care
14.35
 14.35%
Consumer Discretionary
12.86
 12.86%
Communication Services
11.87
 11.87%
Industrials
7.46
 7.46%
Financials
6.13
 6.13%
Energy
4.62
 4.62%
Materials
3.13
 3.13%
Utilities
2.95
 2.95%
Real Estate
2.17
 2.17%
Consumer Staples
1.50
 1.50%

Allocations are subject to change daily.

Top Holdings (% Fund)

(as of 06/30/2022)
Security
Microsoft Corp
2.35
 2.35%
Apple Inc
2.15
 2.15%
Broadcom Inc 8.00 % Cum Conv Pfd Registered Shs 2019-30.09.22 Series A
1.91
 1.91%
Alphabet, Inc.- Cl A
1.89
 1.89%
Cloudflare, Inc. 0.0% 15-aug-2026
1.85
 1.85%
Live Nation Entertainment, Inc. 2.0% 15-feb-2025
1.78
 1.78%
Apollo Commercial Real Estate Finance, Inc. 4.75% 23-aug-2022
1.74
 1.74%
Jazz Investments I Ltd
1.72
 1.72%
Dexcom, Inc. 0.25% 15-nov-2025
1.67
 1.67%
Palo Alto Networks, Inc. 0.375% 01-jun-2025
1.62
 1.62%

Holdings are subject to change.

Leverage

Assets (in millions)

(as of 09/30/2022)
Total Net Assets $205.89
Total Preferred Assets $30.00
 Mandatory Redeemable Preferred Shares $30.00
Total Borrowed Debt $75.00
Total Managed Assets $310.89

Effective Leverage

(as of 09/30/2022)
Preferred Assets 9.65%
Borrowed Debt 24.12%
Total Effective Leverage 33.77%

Borrowed Debt Leverage Statistics

(as of 09/30/2022)
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

Ex. Dividend Date
Record Date
Payable Date
Frequency
Latest($/Share)
YTD($/Share)
Market Price Distribution Rate
(as of )

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
September 09/09/2022 10/03/2022 $0.180000
August 08/10/2022 09/01/2022 $0.180000
July 07/08/2022 08/01/2022 $0.180000
June 06/10/2022 07/01/2022 $0.180000
May 05/11/2022 06/01/2022 $0.180000
April 04/08/2022 05/02/2022 $0.180000
March 03/10/2022 04/01/2022 $0.180000
February 02/10/2022 03/01/2022 $0.180000
January 01/12/2022 02/01/2022 $0.180000

Ex-Date Record Date Payable Date Total Distribution ($/Share) Note



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 fund will achieve its investment objectives.

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  or call for service at 1-866-270-7788.

Risk Considerations

Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
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.
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.
Options: Selling call options may limit the opportunity to profit from the increase in price of the underlying asset. Selling put options risks loss if the option is exercised while the price of the underlying asset is rising. Buying options risks loss of the premium paid for those options.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional, or global events such as war (e.g., Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness (e.g., COVID-19 pandemic) 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's manager(s) to invest the portfolio's assets as intended.
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.

Related Literature

Fact Sheet

Virtus Diversified Income & Convertible Fund Fact Sheet

Distributions

September 8, 2022
August 18, 2022
July 15, 2022
June 16, 2022
June 7, 2022
May 16, 2022
April 21, 2022
March 16, 2022
March 7, 2022
February 15, 2022
January 18, 2022
December 17, 2021
December 15, 2021
December 1, 2021
November 1, 2021
October 1, 2021
September 1, 2021
August 3, 2021

Holdings

Virtus Diversified Income & Convertible Fund Holdings Monthly
Virtus AllianzGI Diversified Income & Convertible Fund Holdings Fiscal Q1
Virtus AllianzGI Diversified Income & Convertible Fund Holdings Fiscal Q3

Automatic Reinvestment

Dividend Reinvestment Plan (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)

Section 19a Notices

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
May 2021
April 2021
March 2021

News Releases/Communications

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
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
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
January 22, 2021 - AllianzGI Closed-End Funds Announce Fund Name Changes

Governance

Governance & Nominating Committee Charter (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)
Audit Oversight Committee Charter (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)
Procedures for Complaints Regarding Accounting, Internal Accounting Controls or Auditing Matters (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)

Financial Materials

ACV AIO CBH NCV NCZ NIE NFJ Annual Report
AIO CBH ACV NCV NCZ NIE NFJ Semi-Annual Report
2021 ACV AIO CBH NCV NCZ NIE and NFJ Tax Information