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Mutual Fund Fixed Income Leveraged Finance

Stone Harbor High Yield Bond

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Ticker
VSHDX
CUSIP
92828Y540
POP
$ (as of )
Inception
04/11/2022
Total Assets by Class
$88,373.28 (as of 09/29/2022)
Total Assets by Fund
$93,726,372.20 (as of 09/29/2022)
Morningstar Category
High Yield Bond

Portfolio Overview

Investment Overview

The Fund seeks to maximize total return, which consists of income on its investments and capital appreciation.

Virtus Stone Harbor High Yield Bond Fund, a series of Virtus Opportunities Trust, is the successor of Stone Harbor High Yield Bond Fund, formerly a series of Stone Harbor Investment Funds ('Predecessor Fund'), resulting from a reorganization of the Predecessor Fund with and into the fund on April 8, 2022.

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: 2007

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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: 2018

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Matthew Kearns, CFA

Portfolio Manager, U.S. and Euro High Yield

Industry start date: 1997
Start date as fund Portfolio Manager: 2018

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Hunter Schwarz

Portfolio Manager, Leveraged Loans

Industry start date: 2003
Start date as fund Portfolio Manager: 2018

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Daniel Berkery, CFA

Portfolio Manager, Convertible and Global Credit Analyst

Industry start date: 1991
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: 2018

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Key Features

Rigorous Fundamental Research

Intensive fundamental credit research within a top-down framework underpins Stone Harbor's investment process. The team seeks to invest in companies with seasoned management, solid financials, good liquidity, and appropriate leverage and/or asset protection over the cycle

Risk Management

Security selection focuses on taking what the team believes to be appropriate levels of risk as the economy, market, and industry cycles evolve. Quantitative techniques are used to monitor portfolio risks. Stone Harbor's goal is to minimize credit losses while capturing market dislocations

Depth of Experience

Stone Harbor has been managing global high yield assets since 1996

Portfolio Characteristics

Characteristics4

(as of 06/30/2022)
Effective Duration (years) 4.79

Top Holdings (% Fund)

(as of 06/30/2022)
Security
Occidental Petroleum Corp, 8.8750% 07/15/2030
2.37
 2.37%
Ford Motor Credit Co LLC, 5.1130% 05/03/2029
1.85
 1.85%
Prime Security Services Borrower LLC / Prime Finance Inc, 6.2500% 01/15/2028
1.45
 1.45%
Sprint Capital Corp, 6.8750% 11/15/2028
1.40
 1.40%
CSC Holdings LLC, 4.1250% 12/01/2030
1.37
 1.37%
CCO Holdings LLC / CCO Holdings Capital Corp, 4.5000% 08/15/2030
1.33
 1.33%
Hilcorp Energy I LP / Hilcorp Finance Co, 6.2500% 11/01/2028
1.32
 1.32%
Scientific Games International Inc, 7.2500% 11/15/2029
1.28
 1.28%
Consolidated Communications Inc, 6.5000% 10/01/2028
1.26
 1.26%
US Acute Care Solutions LLC, 6.3750% 03/01/2026
1.26
 1.26%

Holdings are subject to change.

Top 10 Industries (% Fund)

(as of 06/30/2022)
E&P 11.14%
Media Cable 8.12%
Healthcare 7.36%
Gaming 6.22%
Financial/Lease 5.64%
Midstream 5.64%
Automotive 5.43%
Building Products 4.87%
Media Other 4.14%
Industrial Other 3.96%

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

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

Yields / Distributions1

(as of )
30-day SEC Yield
30-day SEC Yield (unsubsidized)
Distribution Rate (at NAV)
Income Distributions Current Month
Income Distributions YTD
Distribution Rate is calculated by summing all distributions over the preceding 12 months, and dividing by the NAV on the last business date of the period.

Distribution History2

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

Risk Statistics3

(as of )
Fund Index
R2
Beta
Alpha
Std Dev

Risk Considerations

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.
Counterparties: There is risk that a party upon whom the portfolio relies to complete a transaction will default.
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.
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.
Liquidity: Certain instruments may be difficult or impossible to sell at a time and price beneficial to the portfolio.
Income: Income received from the portfolio may vary widely over the short- and long-term and/or be less than anticipated if the proceeds from maturing securities in the portfolio are reinvested in lower-yielding securities.
Bank Loans: Bank loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be less liquid and may trade infrequently on the secondary market. Bank loans settle on a delayed basis; thus, sale proceeds may not be available to meet redemptions for a substantial period of time after the sale of the loan.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the portfolio.
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.
Prospectus: For additional information on risks, please see the fund's prospectus.

Related Literature

Marketing Materials

Virtus Stone Harbor High Yield Bond Fund Fact Sheet - A
Virtus Stone Harbor High Yield Bond Fund Fact Sheet - I
Virtus Stone Harbor High Yield Bond Fund Commentary
Stone Harbor Market Review & Outlook - Multi-Sector Fixed Income

Financial Materials

Virtus Opportunities Trust SHIP Funds Statutory Prospectus
Virtus Stone Harbor High Yield Bond Fund Summary Prospectus
Virtus Opportunities Trust SHIP Funds SAI
Virtus Opportunities Trust - Virtus Stone Harbor Funds Annual Report
SHIP Semi-Annual Report

Holdings

Virtus Stone Harbor High Yield Bond Fund Holdings
Virtus Stone Harbor High Yield Bond Fund Top Positions
Virtus Stone Harbor High Yield Bond Fund Holdings Fiscal Q1

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 income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing by the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

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 sum of each security's weight within the fund (or index) multiplied by the security's market capitalization. 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 Rating 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.

© 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.