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Closed-End Fund Fixed Income Emerging Markets Debt

Virtus Stone Harbor Emerging Markets Income 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's investment objective is to maximize total return, which consists of income and capital appreciation from investments in emerging markets securities. The Fund normally will invest at least 80% of its net assets (plus borrowings for investment purposes) in emerging markets securities.

Flexibility - Managed portfolio of emerging markets fixed income securities structured to maximize total return potential and high current income with flexible asset allocation to local currency sovereign debt, hard currency sovereign debt, and emerging markets corporate debt.

Portfolio Diversification - Attractive total return and income potential with the possibility to diversify versus U.S. Dollar denominated assets.

Depth of Experience in EMD - Stone Harbor's demonstrated ability in managing emerging markets debt is rooted in teamwork with a 30-year history, a disciplined research and investment process, and the experience to make what are believed to be sound investment judgments.

Management Team

Investment Partner

Stone Harbor Investment Partners

Stone Harbor is a global credit specialist with expertise in emerging and developed markets debt, with three decades of informed experience allocating risk in complex areas of the fixed income markets. We manage credit portfolios for clients globally.

Stone Harbor Investment Partners is a division of Virtus Fixed Income Advisers, LLC ("VFIA"), an SEC registered investment adviser.


Learn more about Stone Harbor Investment Partners

Investment Professionals

Peter J. Wilby, CFA

Co-Chief Investment Officer of SHIP Strategies

Industry start date: 1980
Start date as fund Portfolio Manager: 2010

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Jim Craige

James E. Craige, CFA

Co-Chief Investment Officer, Head of Emerging Markets

Industry start date: 1988
Start date as fund Portfolio Manager: 2010

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Kumaran Damodaran, PhD

Portfolio Manager, Emerging Markets Debt, Global Sovereign, and Asset Allocation

Industry start date: 2000
Start date as fund Portfolio Manager: 2010

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Stuart Sclater-Booth

Stuart Sclater-Booth

Portfolio Manager, Emerging Markets Debt, Global Sovereign, and Asset Allocation

Industry start date: 1992
Start date as fund Portfolio Manager: 2010

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David Oliver

David A. Oliver, CFA

Portfolio Manager, Emerging Markets Debt, Global Sovereign

Industry start date: 1986
Start date as fund Portfolio Manager: 2010

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Darin Batchman

Darin Batchman

Portfolio Manager, Emerging Markets Corporate Debt

Industry start date: 1997
Start date as fund Portfolio Manager: 2024

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Richard Lange

Portfolio Manager, Emerging Markets Corporate Debt

Industry start date: 2002
Start date as fund Portfolio Manager: 2024

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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

Geographic Breakdown (% Fund)

(as of 03/28/2024)
Latin America
53.62
 53.62%
Africa
28.46
 28.46%
Asia
8.49
 8.49%
Middle East
5.59
 5.59%
Europe
3.84
 3.84%

Allocations are subject to change daily.

Credit Quality (% Fund)

(as of 03/28/2024)
AAA
0.00
 0.00%
AA
0.00
 0.00%
A
0.00
 0.00%
BBB
23.56
 23.56%
BB
11.70
 11.70%
B
34.35
 34.35%
CCC & Below
24.56
 24.56%
Not Rated
5.83
 5.83%

The ratings issued by Nationally Recognized Statistical Rating Organizations assess the credit worthiness of a corporation's or government's debt issues. The ratings apply to the fund's holdings and not the fund. Ratings are provided by Standard & Poor's, Moody's, and Fitch. In determining the average credit quality of a security, Stone Harbor uses the following hierarchy: S&P; if S&P is unavailable, Moody's; if Moody's is unavailable, Fitch. If no rating is available, Stone Harbor applies its internal rating methodology to assign a rating. A security that has not been assigned a credit rating through Stone Harbor's methodology is listed as 'not rated'. Ratings have been converted to the equivalent S&P rating category. Cash and currency forwards generally are assigned the AAA rating. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C, and D are below-investment grade ratings.

Sector Allocation (% Fund)

(as of 03/28/2024)
Sovereign Hard Currency
64.42
 64.42%
Corporate Hard Currency
18.75
 18.75%
Sovereign Local Currency
16.45
 16.45%
Corporate Local Currency
0.38
 0.38%

Allocations are subject to change daily.

Leverage

Assets (in millions)

(as of 03/28/2024)
Total Net Assets $136.49
Total Reverse Repurchase Agreements $44.78
Total Managed Assets $181.27

Effective Leverage

(as of 03/28/2024)
Reverse Repurchase Agreements 24.70%
Assets (in Millions):

Total Net Assets: includes net assets applicable to Common Shareholders
Total Managed Assets: Total Net Assets + Total Reverse Repurchase Agreements

Effective Leverage:

Reverse Repurchase Agreements: % is Total Reverse Repurchase Agreements 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
April 04/10/2024 04/29/2024 $0.060000
March 03/08/2024 03/28/2024 $0.060000
February 02/09/2024 02/28/2024 $0.060000
January 01/11/2024 01/30/2024 $0.060000

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.

The distribution table above is for informational purposes only and should not be used for tax reporting purposes. A Form 1099 DIV (or substitute Form 1099 DIV) will be sent to shareholders at the beginning of each year that will state the federal tax status of distributions received during the previous calendar year. Please consult a tax professional regarding specific tax matters.

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

Non-Diversified: The portfolio is not diversified and may be more susceptible to factors negatively impacting its holdings to the extent the portfolio invests more of its assets in the securities of fewer issuers than would a diversified portfolio.
Management: The Fund is subject to management risk because it is an actively managed investment portfolio. Judgments by the Fund's subadviser about the attractiveness and potential appreciation of an investment may prove to be inaccurate and may not produce the desired results.
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. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
Emerging Markets Investing: Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets. Such securities may also be subject to Sanctions Risk.
Sanctions: The imposition of sanctions and other similar measures could cause a decline in the value and/or liquidity of securities issued by or tied to the sanctioned country and increase market volatility and disruption in the sanctioned country and throughout the world. Sanctions and other similar measures could limit or prevent the Fund from buying and selling securities (in the sanctioned country and other markets), significantly delay or prevent the settlement of transactions, and negatively impact the Fund's liquidity and performance.
Currency Rate: Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the portfolio's shares.
Sovereign Debt Obligations: Certain emerging market countries have historically experienced, and may continue to experience, high rates of inflation, high interest rates, exchange rate fluctuations, large amounts of external debt, balance of payments and trade difficulties and extreme poverty and unemployment. The issuer or governmental authority that controls the repayment of an emerging country's debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt.
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.
Derivatives: Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage, or attempt to increase returns. Investments in derivatives may result in increased volatility and the portfolio may incur a loss greater than its principal investment.
Reverse Repurchase Agreements Risk: Reverse repurchase agreements subject the Fund to Leverage Risk and Counterparty Risk, and also to the risk that the market value of the securities that the Fund is obligated to repurchase under the agreements may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund's use of the proceeds of the agreement may be restricted pending determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities.
Counterparty: There is risk that a party upon whom the portfolio relies to complete a transaction will default.
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.
Leverage: When the Fund leverages its portfolio, the Fund may be less liquid and/or may liquidate positions at an unfavorable time, and the value of the Fund's shares will be more volatile and sensitive to market movements.
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.
No Guarantee: There is no guarantee that the portfolio will meet its objective.

Related Literature

Fact Sheet

Virtus Stone Harbor Emerging Markets Income Fund Fact Sheet

Distributions

March 1, 2024 - EDF
November 16, 2023 - EDF
November 16, 2023 - EDI
August 31, 2023 - EDF
August 31, 2023 - EDI
July 10, 2023 - EDI
May 25, 2023 - EDF
May 25, 2023 - EDI

Holdings

Virtus Stone Harbor Emerging Markets Income Fund Quarterly Holdings
Virtus Stone Harbor Emerging Markets Income Fund Holdings Fiscal Q1
Virtus Stone Harbor Emerging Markets Income Fund Holdings Fiscal Q3

Automatic Reinvestment

Virtus Stone Harbor Emerging Markets Income Fund Dividend Reinvestment Plan

Section 19a Notices

December 2023 - EDF
December 2023 - EDI
November 2023 - EDF
November 2023 - EDI
October 2023 - EDF
October 2023 - EDI
September 2023 - EDF
September 2023 - EDI
August 2023 - EDI
August 2023 - EDF
July 2023 - EDF
July 2023 - EDI
June 2023 - EDF
June 2023 - EDI
May 2023 - EDF
May 2023 - EDI
April 2023 - EDF
April 2023 - EDI
March 2023 - EDF
March 2023 - EDI
February 2023 - EDF
February 2023 - EDI
January 2023 - EDF
January 2023 - EDI
December 2022 - EDF
December 2022 - EDI
November 2022 - EDF
November 2022 - EDI
October 2022 - EDF
October 2022 - EDI
September 2022 - EDF
September 2022 - EDI
August 2022 - EDF
August 2022 - EDI
July 2022 - EDF
July 2022 - EDI

News Releases/Communications

April 10, 2024 - Joint Annual Meeting of Shareholders Proxy Statement
March 1, 2024 - Virtus Stone Harbor Emerging Markets Income Fund Announce Distributions and Additions to Portfolio Management Team
December 18, 2023 - Reorganization of Virtus Stone Harbor Closed-End Funds Completed
November 16, 2023 - Virtus Stone Harbor Emerging Markets Income Fund Announces Distributions and Provides Update on Reorganization
November 14, 2023 - Virtus Stone Harbor Emerging Markets Total Income Fund Information Statement
May 23, 2023 - Virtus Stone Harbor Emerging Markets Income Fund Announces Results of Annual Meeting of Shareholders
May 1, 2023 - EDF Annual Meeting Proxy Reminder Letter
April 11, 2023 - Annual Meeting of Shareholders
March 23, 2023 - Certain Virtus Closed-End Funds Announce Date of Shareholder Meetings
March 2, 2023 - Virtus Stone Harbor Closed-End Funds Announce Expected Reorganization
October 11, 2022 - Certain Virtus Closed-End Funds Announce Shareholder Meeting Results
August 29, 2022 - Joint Annual Meeting of Shareholders Proxy Statement
July 5, 2022 - Virtus Closed-End Funds Update
April 8, 2022 - Stone Harbor Emerging Markets Income Fund to Remove Managed Distribution Plan, Declares Monthly Distribution of $0.06 Per Share
Press Release 20220322 - Stone Harbor Closed-End Funds Announce Results Of Shareholder Meeting, Name Changes
Press Release 20220103 - Stone Harbor Emerging Markets Income Fund Announcement
Press Release 20211229 - Stone Harbor Emerging Markets Income Fund

Governance

Governance & Nominating Committee Charter
Procedures for Complaints Regarding Accounting, Internal Accounting Controls or Auditing Matters

Financial Materials

EDF Annual Report
EDI Annual Report
EDF Semiannual Report
EDI Semiannual Report
2023 Virtus Closed-End Funds Tax Information