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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 debt.

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.

Effective April 11, 2022, this Fund's name changed from Stone Harbor Emerging Markets Income Fund and its investment adviser has changed.

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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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

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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William Perry

Head of Global High Yield, Portfolio Manager, Emerging Markets Corporate Debt

Industry start date: 1984
Start date as fund Portfolio Manager: 2010

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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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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 06/30/2022)
Latin America
57.77
 57.77%
Africa
35.02
 35.02%
Asia
10.78
 10.78%
Europe
7.43
 7.43%
Middle East
5.60
 5.60%
Net Cash
-16.60
 -16.60%

Allocations are subject to change daily.

Credit Quality (% Fund)

(as of 06/30/2022)
AAA
27.86
 27.86%
AA
0.00
 0.00%
A
0.00
 0.00%
BBB
23.81
 23.81%
BB
8.54
 8.54%
B
29.78
 29.78%
CCC & Below
4.24
 4.24%
Not Rated
5.77
 5.77%

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 06/30/2022)
Sovereign Hard Currency
72.46
 72.46%
Corporate Hard Currency
28.99
 28.99%
Sovereign Local Currency
14.54
 14.54%
Corporate Local Currency
0.61
 0.61%
Net Cash
-16.60
 -16.60%

Allocations are subject to change daily.

Leverage

Assets (in millions)

(as of 08/31/2022)
Total Net Assets $69.80
Total Reverse Repurchase Agreements $36.26
Total Managed Assets $106.05

Effective Leverage

(as of 08/31/2022)
Reverse Repurchase Agreements 34.19%
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
September 09/12/2022 09/23/2022 $0.060000
August 08/08/2022 08/19/2022 $0.060000
July 07/11/2022 07/22/2022 $0.060000
June 06/06/2022 06/17/2022 $0.060000
May 05/09/2022 05/20/2022 $0.060000
April 04/08/2022 04/22/2022 $0.060000
March 03/07/2022 03/18/2022 $0.060000
February 02/07/2022 02/18/2022 $0.060000
January 01/07/2022 01/21/2022 $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 portfolio's ability to identify and invest in attractive opportunities is dependent upon the Investment Manager. If one or more key individuals leave the Investment Manager, it may not be able to hire qualified replacements, or may require an extended time to do so. This could prevent the portfolio from achieving its investment objective. As with any managed fund, the Investment Manager may not be successful in selecting the best-performing securities, leverage strategy or investment techniques, and the portfolio's performance may lag that of similar funds as a result.
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.
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.
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.
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.
Counterparties: 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 a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded.
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 Stone Harbor Emerging Markets Income Fund Fact Sheet

Distributions

September 2, 2022
May 25, 2022
April 8, 2022
January 26, 2022
October 20, 2021

Holdings

Virtus Stone Harbor Emerging Markets Income Fund 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

September 2022
August 2022
July 2022
October 2021
September 2021
August 2021
May 2021
March 2021
February 2021
December 2020

News Releases/Communications

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

Virtus Closed End Funds Audit Committee Charter
Governance and Nominating Committee Charter
Procedures for Complaints Regarding Accounting, Internal Accounting Controls or Auditing Matters (AIO/CBH/NCV/NCZ/ACV/NIE/NFJ)

Financial Materials

EDF Annual Report
EDF Semiannual Report