VIRTUS GLOBAL DIVIDEND & INCOME FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number            811-05620                         

                  Virtus Global Dividend & Income Fund Inc.              

(Exact name of registrant as specified in charter)

101 Munson Street

                             Greenfield, MA 01301-9683                            

(Address of principal executive offices) (Zip code)

William Renahan, Esq.

Vice President, Chief Legal Officer and Secretary for Registrant

100 Pearl Street

                   Hartford, CT 06103-4506                 

(Name and address of agent for service)

Registrant’s telephone number, including area code:  (800) 272-2700

Date of fiscal year end: December 31

Date of reporting period: March 31, 2018

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Schedule of Investments.

The Schedule of Investments is attached herewith.


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
U.S. GOVERNMENT SECURITIES—0.7%  

U.S. Treasury Bond
2.500%, 2/15/46

  $ 2,235      $ 2,029  
TOTAL U.S. GOVERNMENT SECURITIES  
(Identified Cost $2,126)        2,029  
MUNICIPAL BONDS—2.0%  
California—1.2%  

State of California, Build America Bonds Taxable 7.600%, 11/1/40

    2,000        3,094  
    

 

 

 
New York—0.6%  

Port Authority of New York & New Jersey, Consolidated Bonds Revenue 5.000%, 4/15/57

    1,515        1,712  
    

 

 

 
Virginia—0.2%  

City of Bristol, General Obligation Taxable 4.210%, 1/1/42

    565        574  
TOTAL MUNICIPAL BONDS  
(Identified Cost $5,425)        5,380  
FOREIGN GOVERNMENT SECURITIES—1.4%  

Argentine Republic
5.875%, 1/11/28

    250        235  

7.625%, 4/22/46

    380        378  

6.875%, 1/11/48

    245        224  

Dominican Republic 144A 5.950%, 1/25/27(2)

    455        475  

Kingdom of Abu Dhabi 144A 2.500%, 10/11/22(2)

    495        477  

Kingdom of Bahrain
144A 7.000%, 10/12/28(2)

    490        472  

Republic of South Africa 4.665%, 1/17/24

    410        412  

4.300%, 10/12/28

    430        402  

Republic of Turkey
7.375%, 2/5/25

    261        289  

Sultanate of Oman
144A, 5.375%, 3/8/27(2)

    285        278  

144A, 5.625%, 1/17/28(2)

    200        195  
TOTAL FOREIGN GOVERNMENT SECURITIES  
(Identified Cost $3,984)        3,837  
    PAR VALUE      VALUE  
MORTGAGE-BACKED SECURITIES—9.6%  
Agency—2.7%  

Federal National Mortgage Association Pool #AS6947, 3.500%, 4/1/46

  $ 3,219      $ 3,227  

Pool #AS7244,
3.500%, 5/1/46

    3,039        3,047  

Pool #AS8483,
3.000%, 12/1/46

    799        779  

Pool #AS9393,
4.000%, 4/1/47

    166        171  
    

 

 

 
       7,224  
    

 

 

 
Non-Agency—6.9%  

American Homes 4 Rent Trust 2014-SFR2, C 144A 4.705%, 10/17/36(2)

    610        641  

Ameriquest Mortgage Securities, Inc. Pass-Through Certificates, 2003-AR3, M4, (5.850% minus 1 month LIBOR) 4.748%, 6/25/33(1)

    93        92  

AMSR Trust
2016-SFR1, C 144A, (1 month LIBOR + 2.250%)
4.058%, 11/17/33(1)(2)

    488        492  

2016-SFR1, D 144A, (1 month LIBOR + 2.400%) 4.208%, 11/17/33(1)(2)

    100        100  

Bank of America (Merrill Lynch) Commercial Mortgage Securities Trust 2015-200P, A 144A 3.218%, 4/14/33(2)

    385        379  

Bayview Opportunity Master Fund IIIb Trust 2017-RN2, A1 144A
3.475%, 4/28/32(1)(2)

    63        63  

Bayview Opportunity Master Fund IVa Trust 2016-SPL1, B1 144A,
4.250%, 4/28/55(2)

    395        408  

2017-SPL5, B1 144A, 4.000%, 6/28/57(1)(2)

    175        180  
 

 

See Notes to Schedules of Investments

 

 

1


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Non-Agency (continued)  

2017-SPL1, B1 144A, 4.250%, 10/28/64(1)(2)

  $ 263      $ 269  

Bayview Opportunity Master Fund IVb Trust 2017-SPL3, B1 144A
4.250%, 11/28/53(1)(2)

    345        360  

Caesars Palace Las Vegas Trust 2017-VICI, C 144A 4.138%, 10/15/34(2)

    270        275  

Citigroup Commercial Mortgage Trust 2016-SMPL, A 144A
2.228%, 9/10/31(2)

    685        664  

Colony Starwood Homes Trust 2016-2A, C 144A, (1 month LIBOR + 2.150%) 3.927%, 12/17/33(1)(2)

    490        490  

COLT Mortgage Loan Trust Funding LLC 2016-2, A1 144A,
2.750%, 9/25/46(1)(2)

    55        54  

2017-1, A3 144A,
3.074%, 5/27/47(1)(2)

    138        139  

Credit Suisse First Boston Mortgage Securities Corp. 2003-AR30, 5A1
3.537%, 1/25/34(1)

    188        193  

Deephaven Residential Mortgage Trust 2017-1A, A2 144A
2.928%, 12/26/46(1)(2)

    235        233  

Galton Funding Mortgage Trust 2017-1, A21 144A 3.500%, 7/25/56(1)(2)

    238        238  

Hilton USA Trust 2016-SFP, B 144A
3.323%, 11/5/35(2)

    965        949  

Home Equity Mortgage Trust 2005-2, M7, (1 month LIBOR + 1.680%)
3.552%, 7/25/35(1)

    203        202  

JPMorgan Chase (Bear Stearns) Alternate Loan Trust 2004-5, 3A1 3.835%, 6/25/34(1)

    435        445  
    PAR VALUE      VALUE  
Non-Agency (continued)  

JPMorgan Chase Commercial Mortgage Securities Trust 2014-C22, A4
3.801%, 9/15/47

  $ 1,320      $ 1,352  

JPMorgan Chase Mortgage Trust
2014-5, B2 144A,
2.998%, 10/25/29(1)(2)

    162        154  

2016-2, M2 144A,
3.750%, 12/25/45(1)(2)

    631        630  

2017-3, 2A2 144A,
2.500%, 8/25/47(1)(2)

    234        227  

2017-5, A1 144A,
3.184%, 10/26/48(1)(2)

    778        774  

MetLife Securitization Trust 2017-1A, M1 144A
3.640%, 4/25/55(1)(2)

    135        136  

New Residential Mortgage Loan Trust 2016-4A, B1A 144A,
4.500%, 11/25/56(1)(2)

    683        707  

2017-2A, A3 144A, 4.000%, 3/25/57(1)(2)

    218        222  

2018-1A, A1A 144A, 4.000%, 12/25/57(1)(2)

    238        243  

One Market Plaza Trust 2017-1MKT, A 144A 3.614%, 2/10/32(2)

    345        348  

Pretium Mortgage Credit Partners I LLC 2017-NPL5, A1 144A
3.327%, 12/30/32(1)(2)

    151        151  

Progress Residential Trust
2017-SFR1, B 144A, 3.017%, 8/17/34(2)

    335        328  

2018-SFR1, B 144A, 3.484%, 3/17/35(2)

    300        300  

RCO Mortgage LLC 2017-1, A1 144A
3.375%, 8/25/22(1)(2)

    597        595  

Sequoia Mortgage Trust 2013-8, B1
3.533%, 6/25/43(1)

    358        351  
 

 

See Notes to Schedules of Investments

 

 

2


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Non-Agency (continued)  

Structured Adjustable Rate Mortgage Loan Trust 2004-4, 3A2
3.813%, 4/25/34(1)

  $ 176      $ 178  

Towd Point Mortgage Trust
2015-1, A2 144A, 3.250%, 10/25/53(1)(2)

    610        608  

2015-6, M1 144A, 3.750%, 4/25/55(1)(2)

    185        188  

2017-1, M1 144A, 3.750%, 10/25/56(1)(2)

    200        202  

2017-6, A2 144A, 3.000%, 10/25/57(1)(2)

    330        319  

2015-2, 1M1 144A, 3.250%, 11/25/60(1)(2)

    945        932  

Tricon American Homes Trust
2016-SFR1, C 144A, 3.487%, 11/17/33(2)

    975        967  

2017-SFR1, A 144A, 2.716%, 9/17/34(2)

    165        161  

Vericrest Opportunity Loan Trust LVI LLC 2017-NPL3, A1 144A 3.500%, 3/25/47(1)(2)

    294        294  

Vericrest Opportunity Loan Trust LX LLC 2017-NPL7, A1 144A 3.250%, 6/25/47(1)(2)

    196        195  

Vericrest Opportunity Loan Trust LXIII LLC 2017-NP10, A1 144A 3.000%, 10/25/47(1)(2)

    100        99  

Verus Securitization Trust 2017-2A, A1 144A, 2.485%, 7/25/47(1)(2)

    393        390  

2018-1, A1 144A, 2.929%, 2/25/48(1)(2)

    295        295  

Wells Fargo Commercial Mortgage Trust 2015-LC20, B 3.719%, 4/15/50

    675        669  
    

 

 

 
               18,881  
TOTAL MORTGAGE-BACKED SECURITIES  
(Identified Cost $26,617)        26,105  
    PAR VALUE      VALUE  
ASSET-BACKED SECURITIES—4.4%  
Auto Floor Plan—0.3%  

Navistar Financial Dealer Note Master Owner Trust II 2016-1, B 144A, (1 month LIBOR + 1.750%)
3.622%, 9/27/21(1)(2)

  $ 780      $ 783  
    

 

 

 
Automobiles—2.3%  

American Credit Acceptance Receivables Trust 2017-2, C 144A
2.860%, 6/12/23(2)

    430        427  

Centre Point Funding LLC 2012-2A, 1 144A 2.610%, 8/20/21(2)

    496        491  

Drive Auto Receivables Trust 2017-2, C
2.750%, 9/15/23

    505        502  

Exeter Automobile Receivables Trust 2015-2A, C 144A, 3.900%, 3/15/21(2)

    580        585  

2016-3A, B 144A, 2.840%, 8/16/21(2)

    685        685  

First Investors Auto Owner Trust 2017-2A, B 144A 2.650%, 11/15/22(2)

    415        410  

Flagship Credit Auto Trust 2017-3, C 144A 2.910%, 9/15/23(2)

    505        499  

Foursight Capital Automobile Receivables Trust 2017-1, B 144A
3.050%, 12/15/22(2)

    400        393  

GLS Auto Receivables Trust 2017-1A, B 144A 2.980%, 12/15/21(2)

    525        522  

OneMain Direct Auto Receivables Trust 2017-2A, C 144A 2.820%, 7/15/24(2)

    415        408  

Prestige Auto Receivables Trust 2017-1A, C 144A 2.810%, 1/17/23(2)

    505        496  
 

 

See Notes to Schedules of Investments

 

 

3


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Automobiles (continued)  

Santander Drive Auto Receivables Trust 2016-1, C 3.090%, 4/15/22

  $ 290      $ 291  

Westlake Automobile Receivables Trust 2017-2A, C 144A 2.590%, 12/15/22(2)

    505        500  
    

 

 

 
       6,209  
    

 

 

 
Other—1.7%  

AXIS Equipment Finance Receivables IV LLC 2018-1A, A2 144A 3.240%, 12/20/23(2)

    355        354  

DB Master Finance LLC 2017-1A, A2I 144A 3.629%, 11/20/47(2)

    424        422  

Dell Equipment Finance Trust 2017-2, A3 144A 2.190%, 10/24/22(2)

    390        386  

Diamond Resorts Owner Trust 2017-1A, A 144A 3.270%, 10/22/29(2)

    332        325  

Drug Royalty II LP 2 2014-1, A2 144A 3.484%, 7/15/23(2)

    187        186  

Mariner Finance Issuance Trust 2017-AA, A 144A 3.620%, 2/20/29(2)

    425        427  

NextGear Floorplan Master Owner Trust 2018-1A, A2144A 3.220%, 2/15/23(2)

    355        355  

OneMain Financial Issuance Trust 2015-1A, A 144A 3.190%, 3/18/26(2)

    449        450  

Prosper Marketplace Issuance Trust 2017-2A, B 144A, 3.480%, 9/15/23(2)

    420        419  

2018-1A, A 144A, 3.110%, 6/17/24(2)

    355        355  

SoFi Consumer Loan Program LLC
2016-3, A 144A, 3.050%, 12/26/25(2)

    242        242  
    PAR VALUE      VALUE  
Other (continued)  

2017-1, A 144A, 3.280%, 1/26/26(2)

  $ 280      $ 281  

TGIF Funding LLC 2017-1A, A2 144A 6.202%, 4/30/47(2)

    419        421  
    

 

 

 
       4,623  
    

 

 

 
Student Loans—0.2%  

Laurel Road Prime Student Loan Trust 2017-B, A2FX 144A
2.770%, 8/25/42(2)

    505        497  
TOTAL ASSET-BACKED SECURITIES  
(Identified Cost $12,183)        12,112  
CORPORATE BONDS AND NOTES—28.3%  
Consumer Discretionary—2.3%  

Altice France S.A. 144A 7.375%, 5/1/26(2)

    415        395  

Beazer Homes USA, Inc. 6.750%, 3/15/25

    305        302  

Charter Communications Operating LLC 4.908%, 7/23/25

    430        439  

CSC Holdings LLC 144A 5.375%, 2/1/28(2)

    300        283  

Discovery Communications LLC
3.950%, 3/20/28

    405        389  

Dollar General Corp. 4.125%, 5/1/28

    405        408  

Gateway Casinos & Entertainment Ltd. 144A 8.250%, 3/1/24(2)

    150        159  

Horton (D.R.), Inc.
4.750%, 2/15/23

    510        535  

L Brands, Inc. 6.875%, 11/1/35

    182        177  

Lear Corp.
3.800%, 9/15/27

    505        485  

Lennar Corp.
144A, 5.250%, 6/1/26(2)

    350        346  

144A, 4.750%, 11/29/27(2)

    335        321  

Live Nation Entertainment, Inc. 144A 5.625%, 3/15/26(2)

    230        233  
 

 

See Notes to Schedules of Investments

 

 

4


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Consumer Discretionary (continued)  

Meredith Corp. 144A 6.875%, 2/1/26(2)

  $ 115      $ 118  

QVC, Inc. 4.375%, 3/15/23(4)

    665        665  

TRI Pointe Group, Inc. 5.875%, 6/15/24

    245        249  

Wyndham Worldwide Corp.
5.100%, 10/1/25(4)

    615        636  

4.500%, 4/1/27

    130        129  
    

 

 

 
       6,269  
    

 

 

 
Consumer Staples—0.7%  

CVS Health Corp. 2.875%, 6/1/26(4)

    700        645  

4.300%, 3/25/28

    311        313  

Flowers Foods, Inc. 4.375%, 4/1/22(4)

    330        341  

Kraft Heinz Foods Co. (The)
3.000%, 6/1/26

    420        387  

Safeway, Inc. 7.250%, 2/1/31

    285        231  
    

 

 

 
       1,917  
    

 

 

 
Energy—3.3%  

Anadarko Petroleum Corp.
6.600%, 3/15/46

    215        270  

Andeavor Logistics LP 4.250%, 12/1/27(4)

    420        409  

Bristow Group, Inc. 144A 8.750%, 3/1/23(2)

    50        51  

Cheniere Corpus Christi Holdings LLC 5.875%, 3/31/25

    280        293  

Crestwood Midstream Partners LP 5.750%, 4/1/25

    290        288  

Enbridge Energy Partners LP
5.875%, 10/15/25

    430        471  

Energy Transfer Partners LP
4.200%, 4/15/27

    430        415  

EP Energy LLC 144A 8.000%, 11/29/24(2)

    165        166  

Gazprom OAO 144A 4.950%, 2/6/28(2)(5)

    470        466  
    PAR VALUE      VALUE  
Energy (continued)  

Helmerich & Payne International Drilling Co. 4.650%, 3/15/25

  $ 290      $ 301  

HollyFrontier Corp. 5.875%, 4/1/26(4)

    480        516  

Kinder Morgan Energy Partners LP 7.500%, 11/15/40(4)

    615        767  

MPLX LP 4.875%, 12/1/24(4)

    695        728  

NuStar Logistics LP 5.625%, 4/28/27

    395        383  

Parsley Energy LLC 144A 5.625%, 10/15/27(2)

    380        380  

Petrobras Global Finance BV
7.375%, 1/17/27

    460        498  

Petroleos Mexicanos 6.500%, 3/13/27

    480        513  

Range Resources Corp. 4.875%, 5/15/25

    335        311  

Sabine Pass Liquefaction LLC
6.250%, 3/15/22

    355        385  

SM Energy Co. 5.625%, 6/1/25

    100        95  

State Oil Co. of the Azerbaijan Republic RegS
6.950%, 3/18/30(3)

    445        482  

Sunoco LP 144A 5.500%, 2/15/26(2)

    160        154  

TransMontaigne Partners LP
6.125%, 2/15/26

    130        130  

USA Compression Partners LP 144A
6.875%, 4/1/26(2)

    210        213  

Valero Energy Partners LP
4.500%, 3/15/28

    330        332  
    

 

 

 
       9,017  
    

 

 

 
Financials—9.5%  

AerCap Ireland Capital Ltd.
3.950%, 2/1/22

    495        497  

Allstate Corp. (The) Series B 5.750%, 8/15/53(4)(7)

    485        508  
 

 

See Notes to Schedules of Investments

 

 

5


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Financials (continued)  

Apollo Management Holdings LP 144A 4.000%, 5/30/24(2)(4)

  $ 475      $ 477  

Ares Capital Corp. 3.500%, 2/10/23

    175        170  

4.250%, 3/1/25(4)

    325        316  

Ares Finance Co., LLC 144A 4.000%, 10/8/24(2)(4)

    675        655  

Athene Holding Ltd. 4.125%, 1/12/28

    395        379  

Aviation Capital Group LLC 144A 3.500%, 11/1/27(2)

    410        384  

Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A
5.125%, 1/18/33(2)

    325        312  

Banco de Credito e Inversiones 144A 3.500%, 10/12/27(2)

    740        692  

Bank of America Corp. 144A, 3.004%, 12/20/23(2)

    339        332  

4.200%, 8/26/24

    938        951  

Bank of Montreal 3.803%, 12/15/32

    121        115  

BrightSphere Investment Group plc
4.800%, 7/27/26

    495        497  

Brookfield Finance LLC 4.000%, 4/1/24

    598        602  

Capital One Financial Corp. 4.200%, 10/29/25(4)

    450        446  

3.750%, 7/28/26(4)

    545        519  

Citigroup, Inc.
5.500%, 9/13/25

    2,200        2,384  

Compass Bank 3.875%, 4/10/25(4)

    625        611  

Development Bank of Kazakhstan JSC 144A 4.125%, 12/10/22(2)

    720        718  

Discover Financial Services 3.950%, 11/6/24

    475        470  
    PAR VALUE      VALUE  
Financials (continued)  

Ford Motor Credit Co., LLC
2.343%, 11/2/20

  $ 740      $ 720  

FS Investment Corp. 4.250%, 1/15/20

    410        414  

4.750%, 5/15/22

    100        101  

Goldman Sachs Group, Inc. (The)
5.750%, 1/24/22(4)

    455        492  

Guanay Finance Ltd. 144A 6.000%, 12/15/20(2)

    475        485  

ICAHN Enterprises LP 6.375%, 12/15/25

    330        332  

Jefferies Group LLC 5.125%, 1/20/23

    235        249  

4.850%, 1/15/27

    250        255  

JPMorgan Chase & Co. 3.300%, 4/1/26(4)

    920        889  

Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42(2)

    535        598  

Leucadia National Corp. 5.500%, 10/18/23

    375        385  

Liberty Mutual Group, Inc. 144A
4.250%, 6/15/23(2)(4)

    610        622  

Lincoln National Corp. 4.200%, 3/15/22(4)

    340        350  

Macquarie Group Ltd. 144A 6.250%, 1/14/21(2)(4)

    520        559  

Manulife Financial Corp. 4.150%, 3/4/26(4)

    540        548  

Morgan Stanley 4.100%, 5/22/23

    385        390  

3.125%, 7/27/26

    955        903  

Navient Corp.
7.250%, 9/25/23

    100        104  

6.750%, 6/25/25

    250        253  

Powszechna Kasa Oszczednosci Bank Polski S.A. 144A 4.630%, 9/26/22(2)(5)

    440        458  

Prudential Financial, Inc. 5.875%, 9/15/42

    165        174  

5.625%(7)

    400        419  
 

 

See Notes to Schedules of Investments

 

 

6


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Financials (continued)  

Santander Holdings USA, Inc.
3.700%, 3/28/22

  $ 425      $ 426  

4.400%, 7/13/27

    185        184  

Societe Generale S.A. 144A 4.750%, 11/24/25(2)(4)

    500        506  

Springleaf Finance Corp. 6.875%, 3/15/25

    140        140  

Trinity Acquisition plc 4.400%, 3/15/26

    200        203  

Turkiye Vakiflar Bankasi TAO 144A 5.625%, 5/30/22(2)

    430        422  

UBS AG 7.625%, 8/17/22(4)

    1,235        1,386  

Wells Fargo & Co.
3.550%, 9/29/25

    285        280  

Series S, 5.900%, 8/15/27(4)

    585        603  
    

 

 

 
       25,885  
    

 

 

 
Health Care—2.6%             

Abbott Laboratories 3.750%, 11/30/26

    605        601  

AbbVie, Inc. 3.600%, 5/14/25

    485        478  

3.200%, 5/14/26

    305        290  

Allergan Sales LLC 144A 4.875%, 2/15/21(2)

    184        190  

AmerisourceBergen Corp. 3.450%, 12/15/27

    335        319  

Anthem, Inc. 3.650%, 12/1/27

    126        122  

4.101%, 3/1/28

    365        366  

Becton Dickinson & Co. 3.363%, 6/6/24

    89        86  

3.700%, 6/6/27

    585        564  

Cardinal Health, Inc. 3.200%, 3/15/23

    325        320  

3.079%, 6/15/24

    25        24  

3.410%, 6/15/27

    185        174  

Community Health Systems, Inc. 6.250%, 3/31/23

    210        193  

Endo Dac 144A 6.000%, 7/15/23(2)

    275        208  
    PAR VALUE      VALUE  
Health Care (continued)  

Envision Healthcare Corp. 144A
6.250%, 12/1/24(2)

  $ 85      $ 88  

HCA, Inc.
5.375%, 2/1/25

    200        200  

Mylan, Inc. 4.200%, 11/29/23(4)

    500        506  

Shire Acquisitions Investments Ireland DAC
2.400%, 9/23/21

    200        193  

Surgery Center Holdings, Inc. 144A 8.875%, 4/15/21(2)

    305        318  

Tenet Healthcare Corp. 4.500%, 4/1/21

    215        213  

144A, 4.625%, 7/15/24(2)

    170        163  

Teva Pharmaceutical Finance Netherlands III BV
3.150%, 10/1/26

    165        132  

Valeant Pharmaceuticals International, Inc. 144A, 6.500%, 3/15/22(2)

    25        26  

144A, 7.000%, 3/15/24(2)

    40        42  

144A, 5.500%, 11/1/25(2)

    250        243  

Zimmer Biomet Holdings, Inc. (3 month LIBOR + 0.750%) 2.928%, 3/19/21(1)

    430        431  

3.550%, 4/1/25

    665        645  
    

 

 

 
       7,135  
    

 

 

 
Industrials—1.1%  

Ashtead Capital, Inc. 144A
4.375%, 8/15/27(2)

    345        328  

Bombardier, Inc. 144A 6.125%, 1/15/23(2)

    260        259  

CNH Industrial N.V. 4.500%, 8/15/23

    359        365  

3.850%, 11/15/27

    222        215  

Masco Corp. 5.950%, 3/15/22

    213        231  

4.450%, 4/1/25

    140        143  
 

 

See Notes to Schedules of Investments

 

 

7


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Industrials (continued)  

Owens Corning 3.400%, 8/15/26(4)

  $ 495      $ 477  

Pitney Bowes, Inc. 4.125%, 5/15/22

    410        388  

Standard Industries, Inc. 144A
6.000%, 10/15/25(2)

    410        420  

TransDigm, Inc. 6.500%, 5/15/25

    115        116  
    

 

 

 
       2,942  
    

 

 

 
Information Technology—1.6%  

Analog Devices, Inc. 2.950%, 1/12/21

    425        424  

Arrow Electronics, Inc. 3.875%, 1/12/28

    420        406  

Broadcom Corp. 3.000%, 1/15/22

    185        182  

3.625%, 1/15/24

    340        334  

Citrix Systems, Inc. 4.500%, 12/1/27

    380        376  

Dell International LLC

    

144A, 6.020%, 6/15/26(2)

    100        108  

144A, 8.100%, 7/15/36(2)

    230        279  

Hewlett Packard Enterprise Co.
4.900%, 10/15/25

    330        342  

Jabil, Inc.
3.950%, 1/12/28

    325        315  

VeriSign, Inc. 4.750%, 7/15/27

    300        287  

Verisk Analytics, Inc. 4.000%, 6/15/25

    470        473  

VMware, Inc. 2.950%, 8/21/22

    216        207  

3.900%, 8/21/27

    233        220  

Western Digital Corp. 4.750%, 2/15/26

    370        369  
    

 

 

 
       4,322  
    

 

 

 
Materials—2.2%  

Anglo American Capital plc 144A
4.000%, 9/11/27(2)

    525        503  

BHP Billiton Finance USA Ltd. 144A 6.750%(2)(6)(7)

    410        460  
    PAR VALUE      VALUE  
Materials (continued)  

CRH America Finance, Inc. 144A
3.400%, 5/9/27(2)

  $ 425      $ 407  

FMG Resources August 2006 Pty Ltd. 144A 5.125%, 3/15/23(2)

    185        184  

Glencore Funding LLC 144A 4.000%, 3/27/27(2)

    425        410  

GTL Trade Finance, Inc. 144A 5.893%, 4/29/24(2)

    295        314  

INEOS Group Holdings S.A. 144A
5.625%, 8/1/24(2)

    495        501  

Inversiones CMPC S.A. 144A 4.375%, 5/15/23(2)

    935        954  

NOVA Chemicals Corp. 144A, 4.875%, 6/1/24(2)

    175        168  

144A, 5.000%, 5/1/25(2)

    240        230  

OCP SA 144A 5.625%, 4/25/24(2)

    500        527  

Rusal Capital DAC 144A 5.125%, 2/2/22(2)

    430        424  

Teck Resources Ltd. 144A
8.500%, 6/1/24(2)

    80        89  

United States Steel Corp. 6.250%, 3/15/26

    285        284  

Vulcan Materials Co. 3.900%, 4/1/27

    425        418  
    

 

 

 
       5,873  
    

 

 

 
Real Estate—2.2%  

Alexandria Real Estate Equities, Inc. 3.950%, 1/15/27

    300        293  

Corporate Office Properties LP
3.600%, 5/15/23(4)

    660        646  

EPR Properties 4.750%, 12/15/26

    620        620  

Healthcare Trust of America Holdings LP 3.750%, 7/1/27

    435        420  

Hospitality Properties Trust
4.950%, 2/15/27

    510        518  

Kilroy Realty LP 4.375%, 10/1/25

    475        481  
 

 

See Notes to Schedules of Investments

 

 

8


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Real Estate (continued)  

LifeStorage LP 3.500%, 7/1/26

  $ 455      $ 434  

3.875%, 12/15/27

    165        159  

MPT Operating Partnership LP
6.375%, 3/1/24

    50        53  

5.500%, 5/1/24

    225        230  

5.000%, 10/15/27

    195        191  

National Retail Properties, Inc.
4.000%, 11/15/25

    150        149  

Physicians Realty LP 3.950%, 1/15/28

    435        417  

Select Income REIT 4.500%, 2/1/25

    470        464  

Welltower, Inc. 4.000%, 6/1/25(4)

    500        499  

WP Carey, Inc. 4.600%, 4/1/24(4)

    400        410  
    

 

 

 
       5,984  
    

 

 

 
Telecommunication Services—1.6%  

AT&T, Inc. 144A 6.375%, 6/1/28(2)

    2,000        2,224  

Consolidated Communications, Inc. 6.500%, 10/1/22

    204        182  

Frontier Communications Corp.
7.125%, 1/15/23

    370        249  

144A, 8.500%, 4/1/26(2)

    135        131  

Level 3 Financing, Inc. 5.375%, 1/15/24

    325        317  

Sprint Spectrum Co., LLC 144A
3.360%, 9/20/21(2)

    175        174  

Telenet Finance Luxembourg Notes S.a.r.l. 144A 5.500%, 3/1/28(2)

    400        382  

Verizon Communications, Inc.
4.125%, 3/16/27

    715        724  
    

 

 

 
       4,383  
    

 

 

 
Utilities—1.3%  

American Electric Power Co., Inc.
3.200%, 11/13/27

    390        371  
    PAR VALUE      VALUE  
Utilities (continued)  

Duke Energy Corp. 2.650%, 9/1/26

  $ 505      $ 461  

Eskom Holdings SOC Ltd. 144A
7.125%, 2/11/25(2)

    410        418  

Exelon Corp.
3.497%, 6/1/22

    605        599  

FirstEnergy Transmission LLC 144A 4.350%, 1/15/25(2)

    520        535  

PNM Resources, Inc. 3.250%, 3/9/21

    315        315  

State Grid Overseas Investment 2014 Ltd. 144A 4.125%, 5/7/24(2)

    500        509  

TerraForm Power Operating LLC 144A 5.000%, 1/31/28(2)

    290        275  
    

 

 

 
               3,483  
TOTAL CORPORATE BONDS AND NOTES  
(Identified Cost $79,044)        77,210  
LEVERAGED LOANS(1)—2.9%  
Chemicals—0.0%  

Tronox Blocked Borrower LLC First Lien, (3 month LIBOR + 3.000%)
5.302%, 9/23/24

    20        20  

Tronox Finance LLC First Lien, (3 month LIBOR + 3.000%)
5.302%, 9/23/24

    45        45  
    

 

 

 
       65  
    

 

 

 
Consumer Durables—0.1%  

Global Appliance, Inc. Tranche B, (1 month LIBOR + 4.000%) 5.880%, 9/29/24

    144        146  
    

 

 

 
Consumer Non-Durables—0.0%  

HLF Financing S.a.r.l. Senior Lien, (1 month LIBOR + 5.500%) 7.377%, 2/15/23

    79        79  
    

 

 

 
 

 

See Notes to Schedules of Investments

 

 

9


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Energy—0.1%  

Ultra Resources, Inc., (1 month LIBOR + 3.000%)
4.765%, 4/12/24

  $ 280      $ 277  
    

 

 

 
Financial—0.0%  

Genworth Holdings, Inc., (1 month LIBOR + 4.500%)
6.202%, 3/7/23

    10        10  
    

 

 

 
Food / Tobacco—0.2%  

Aramark Intermediate HoldCo Corp.
Tranche B-1, (1 month LIBOR + 2.000%)
3.877%, 3/11/25

    165        166  

CHG PPC Parent LLC First Lien, (3 month LIBOR + 2.750%)
0.000%, 3/23/25(9)

    15        15  

JBS USA Lux S.A., (3 month LIBOR + 2.500%)
4.678%, 10/30/22

    252        251  
    

 

 

 
       432  
    

 

 

 
Food and Drug—0.1%  

Albertson’s LLC 2017-1, Tranche B-4, (1 month LIBOR + 2.750%)
4.627%, 8/25/21

    256        253  
    

 

 

 
Gaming / Leisure—0.5%  

Gateway Casinos & Entertainment Ltd., (1 month LIBOR + 3.000%)
4.750%, 3/13/25

    65        65  

GVC Holdings plc, (3 month LIBOR + 2.500%)
0.000%, 3/15/24(9)

    185        185  

Playa Resorts Holding B.V., (3 month LIBOR + 3.250%)
5.000%, 4/29/24

    214        215  
    PAR VALUE      VALUE  
Gaming / Leisure (continued)  

Scientific Games International, Inc. Tranche B-5, (2 month LIBOR + 2.750%)
4.686%, 8/14/24

  $ 5      $ 5  

Seminole Tribe of Florida Tranche B, (1 month LIBOR + 2.000%)
3.877%, 7/8/24

    269        270  

Station Casinos LLC Tranche B, (1 month LIBOR + 2.500%)
4.380%, 6/8/23

    241        242  

UFC Holdings LLC First Lien, (1 month LIBOR + 3.250%)
5.130%, 8/18/23

    245        246  

Wyndham Hotels & Resorts, Inc. Tranche B, (3 month LIBOR + 1.750%)
0.000%, 3/29/25(9)

    55        55  
    

 

 

 
       1,283  
    

 

 

 
Healthcare—0.3%  

CHG Healthcare Services, Inc. 2017, First Lien, (3 month LIBOR + 3.000%)
4.772%, 6/7/23

    290        292  

Concentra, Inc. Tranche B-1, First Lien, (3 month LIBOR + 2.750%)
4.530%, 6/1/22

    25        25  

Endo Luxembourg Finance Co. S.a.r.l., (1 month LIBOR + 4.250%)
6.188%, 4/29/24

    124        124  

Envision Healthcare Corp., (1 month LIBOR + 3.000%)
4.880%, 12/1/23

    203        204  

Parexel International Corp., (1 month LIBOR + 2.750%)
4.627%, 9/27/24

    50        50  
 

 

See Notes to Schedules of Investments

 

 

10


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Healthcare (continued)  

Quorum Health Corp., (1 month LIBOR + 6.750%)
8.627%, 4/29/22

  $ 217      $ 221  
    

 

 

 
       916  
    

 

 

 
Housing—0.2%  

Beacon Roofing Supply, Inc., (1 month LIBOR + 2.250%)
3.936%, 1/2/25

    290        291  

Capital Automotive LP Tranche B-2, First Lien, (1 month LIBOR + 2.500%)
4.380%, 3/25/24

    381        383  
    

 

 

 
       674  
    

 

 

 
Information Technology—0.1%  

Rackspace Hosting, Inc. Tranche B, First Lien, (1 month LIBOR + 2.500%)
4.380%, 3/25/24

    389        388  
    

 

 

 
Manufacturing—0.3%  

Accudyne Industries LLC, (1 month LIBOR + 3.250%)
5.127%, 8/18/24

    184        185  

CPI Acquisition, Inc. First Lien, (3 month LIBOR + 4.500%)
6.358%, 8/17/22

    375        256  

Zodiac Pool Solutions LLC

    

Tranche B-1, First Lien, (3 month LIBOR + 4.000%)
6.302%, 12/20/23

    272        272  

Tranche B, (3 month LIBOR + 2.250%) 0.000%, 3/7/25(9)

    70        70  
    

 

 

 
       783  
    

 

 

 
    PAR VALUE      VALUE  
Media Telecom - Telecommunications—0.2%  

CenturyLink, Inc. Tranche B, (1 month LIBOR + 2.750%)
4.627%, 1/31/25

  $ 259      $ 255  

Level 3 Financing, Inc. 2024, Tranche B, (1 month LIBOR + 2.250%)
4.111%, 2/22/24

    335        335  
    

 

 

 
       590  
    

 

 

 
Media/Telecom - Wireless
Communications—0.0%
 

Digicel International Finance Ltd. Tranche B, First Lien, (3 month LIBOR + 3.250%)
5.020%, 5/27/24

    25        25  
    

 

 

 
Media/Telecom - Broadcasting—0.1%  

Sinclair Television Group, Inc. Tranche B, (3 month LIBOR + 2.500%) 0.000%, 12/12/24(9)

    220        221  
    

 

 

 
Media/Telecom - Cable/Wireless Video—0.0%  

Telenet Financing USD LLC, (3 month LIBOR + 2.500%)
0.000%, 3/1/26(9)

    10        10  
    

 

 

 
Media/Telecom - Diversified Media—0.1%  

Crown Finance US, Inc., (1 month LIBOR + 2.500%) 4.377%, 2/28/25

    155        155  

Meredith Corp., (1 month LIBOR + 3.000%) 4.877%, 1/31/25

    210        211  
    

 

 

 
       366  
    

 

 

 
Service—0.3%  

Delek U.S. Holdings, Inc., (3 month LIBOR + 2.500%) 0.000%, 3/14/25(9)

    55        55  
 

 

See Notes to Schedules of Investments

 

 

11


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Service (continued)  

Red Ventures LLC First Lien, (1 month LIBOR + 4.000%) 5.877%, 11/8/24

  $ 169     $ 170  

Sedgwick Claims Management Services, Inc. Second Lien, (3 month LIBOR + 5.750%) 7.734%, 2/28/22

    300       301  

TKC Holdings, Inc. First Lien, (3 month LIBOR + 4.250%)
6.030%, 2/1/23

    193       195  
   

 

 

 
      721  
   

 

 

 
Transportation - Automotive—0.1%  

Navistar, Inc. Tranche B, (1 month LIBOR + 3.500%) 5.210%, 11/6/24

    220       221  
   

 

 

 
Utility—0.2%  

NRG Energy, Inc., (3 month LIBOR + 1.750%) 4.052%, 6/30/23

    244       244  

Vistra Operations Co., LLC
(1 month LIBOR + 2.500%) 4.377%, 8/4/23

    161       162  

Tranche C, (1 month LIBOR + 2.500%) 4.377%, 8/4/23

    29       29  
   

 

 

 
              435  
TOTAL LEVERAGED LOANS  
(Identified Cost $7,974)       7,895  
    SHARES        
PREFERRED STOCKS—1.3%  
Financials—1.3%  

Citigroup, Inc. Series J, 7.125%

    20,000       571  

Huntington Bancshares, Inc. Series E, 5.700%

    365 (8)      367  

JPMorgan Chase & Co. Series Z, 5.300%(4)

    550 (8)      565  

KeyCorp Series D, 5.000%

    415 (8)      409  

M&T Bank Corp. Series F, 5.125%

    355 (8)      354  
    SHARES     VALUE  
Financials (continued)  

MetLife, Inc.
Series D, 5.875%

    156 (8)    $ 159  

PNC Financial Services Group, Inc. (The) Series R, 4.850%

    535 (8)      536  

Series S, 5.000%

    485 (8)      483  
TOTAL PREFERRED STOCKS  
(Identified Cost $3,468)       3,444  
COMMON STOCKS—85.2%  
Consumer Discretionary—3.9%  

Compass Group plc Sponsored ADR

    117,288       2,444  

Las Vegas Sands Corp.

    115,620       8,313  
   

 

 

 
      10,757  
   

 

 

 
Consumer Staples—7.7%  

Altria Group, Inc.

    71,637       4,464  

British American Tobacco plc Sponsored ADR

    49,499       2,855  

Clorox Co. (The)

    18,840       2,508  

Coca-Cola Co. (The)

    107,730       4,679  

Imperial Brands plc

    57,340       1,952  

Imperial Brands plc Sponsored ADR

    129,977       4,504  
   

 

 

 
      20,962  
   

 

 

 
Energy—9.0%  

Royal Dutch Shell plc Class B Sponsored ADR

    162,510       10,649  

TOTAL S.A. Sponsored ADR

    116,280       6,708  

Vermilion Energy, Inc.

    222,198       7,173  
   

 

 

 
      24,530  
   

 

 

 
Financials—17.5%  

Bank of Hawaii Corp.

    38,390       3,190  

CI Financial Corp.

    168,650       3,602  

HSBC Holdings plc

    243,930       2,277  

HSBC Holdings plc Sponsored ADR

    170,000       8,104  

Royal Bank of Canada

    103,319       7,986  

SCOR SE Sponsored ADR

    1,967,977       8,049  

Tokio Marine Holdings, Inc.

    88,350       3,932  
 

 

See Notes to Schedules of Investments

 

 

12


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

    SHARES      VALUE  
Financials (continued)  

Zurich Insurance Group AG ADR

    320,370      $ 10,503  
    

 

 

 
       47,643  
    

 

 

 
Health Care—7.6%  

AstraZeneca plc Sponsored ADR

    224,030        7,834  

GlaxoSmithKline plc

    94,260        1,844  

GlaxoSmithKline plc Sponsored ADR

    188,060        7,347  

Sonic Healthcare Ltd. Sponsored ADR

    206,534        3,625  
    

 

 

 
       20,650  
    

 

 

 
Industrials—8.8%  

ABB Ltd. Registered Shares

    156,200        3,712  

Air New Zealand Ltd.

    1,988,670        4,660  

BAE Systems plc Sponsored ADR

    193,080        6,422  

Deutsche Post AG Registered Shares

    53,765        2,350  

Port of Tauranga Ltd.

    558,800        1,938  

Waste Management, Inc.

    27,590        2,321  

Watsco, Inc.

    13,950        2,524  
    

 

 

 
       23,927  
    

 

 

 
Information Technology—4.7%  

Analog Devices, Inc.

    35,930        3,274  

Cisco Systems, Inc.

    53,100        2,278  

Paychex, Inc.

    45,110        2,778  

Tieto OYJ

    134,770        4,491  
    

 

 

 
       12,821  
    

 

 

 
Materials—1.5%  

BASF SE Sponsored ADR

    163,640        4,155  
    

 

 

 
Real Estate—6.9%  

Crown Castle International Corp.

    54,870        6,014  

Lamar Advertising Co. Class A

    106,432        6,776  

Realty Income Corp.

    115,695        5,985  
    

 

 

 
       18,775  
    

 

 

 
Telecommunication Services—10.2%  

AT&T, Inc.

    209,303        7,461  

BCE, Inc.

    244,240        10,512  
    SHARES      VALUE  
Telecommunication Services (continued)  

Spark New Zealand Ltd.

    3,997,540      $ 9,700  
    

 

 

 
       27,673  
    

 

 

 
Utilities—7.4%  

Duke Energy Corp.

    98,220        7,609  

Fortis, Inc.

    199,390        6,733  

WEC Energy Group, Inc.

    94,640        5,934  
    

 

 

 
               20,276  
TOTAL COMMON STOCKS  
(Identified Cost $228,811)        232,169  
TOTAL LONG TERM INVESTMENTS—135.8%  
(Identified Cost $369,632)        370,181  
SHORT-TERM INVESTMENTS—2.3%  
Purchased Options—0.1%  

(see open purchased options schedule)

                
TOTAL PURCHASED OPTIONS—0.1%  
(Premiums Paid $795)        228  
Money Market Mutual Fund—2.2%  

Dreyfus Government Cash Management Fund –Institutional Shares (seven-day effective yield 1.540%)(10)

    6,061,146        6,061  
TOTAL SHORT-TERM INVESTMENTS  
(Identified Cost $6,856)        6,289  
TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—138.0%  
(Identified Cost $376,894)        376,470 (11) 
WRITTEN OPTIONS—(0.3)%  

(see open written options schedule)

                
TOTAL WRITTEN OPTIONS —(0.3)%  
(Premiums Received $1,390)        (772
TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—137.7%  
(Identified Cost $375,504)        375,698  

Other assets and liabilities,
net—(37.7)%

 

     (103,049
    

 

 

 
NET ASSETS—100.0%      $272,649  
    

 

 

 
 

 

See Notes to Schedules of Investments

 

 

13


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands except for strike price)

 

Abbreviations

ADR American Depositary Receipt
ICE Intercontinental Exchange
LIBOR London Interbank Offered Rate
REIT Real Estate Investment Trust

Footnote Legend:

(1) Variable rate security. Rate disclosed is as of March 31, 2018. For Leveraged loans, the rate shown may represent a weighted average interest rate. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2018, these securities amounted to a value of $51,611 or 18.9% of net assets.
(3) Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(4) All or a portion of the security is segregated as collateral for written options.
(5) This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.
(6) No contractual maturity date.
(7) Interest payments may be deferred.
(8) Value shown as par value.
(9) This loan will settle after March 31, 2018, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.
(10) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(11) All or a portion of the portfolio is segregated as collateral for borrowings.

 

Country Weightings  

United States

     52

United Kingdom

     15  

Canada

     10  

New Zealand

     4  

France

     4  

Switzerland

     4  

Germany

     2  

Other

     9  

Total

     100

 

 

% of total investments net of written options as of March 31, 2018.

 

 

 

See Notes to Schedules of Investments

 

 

14


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

Open Purchased Options contracts as of March 31, 2018, were as follows:

 

Description of Options    Number of
Contracts
     Contract Notional
Amount
     Strike
Price(1)
     Expiration
Date
     Value  

Call Options

              

S&P 500® Index

     435      $ 126,150      $ 2,900        4/2/2018      $ 2  

S&P 500® Index

     541        157,431        2,910        4/4/2018        3  

S&P 500® Index

     147        41,675        2,835        4/6/2018        2  

S&P 500® Index

     430        123,840        2,880        4/9/2018        (2) 

S&P 500® Index

     500        143,500        2,870        4/11/2018        2  

Put Options

              

S&P 500® Index

     435        108,315        2,490        4/2/2018        11  

S&P 500® Index

     541        135,521        2,505        4/4/2018        58  

S&P 500® Index

     147        34,545        2,350        4/6/2018        9  

S&P 500® Index

     430        104,705        2,435        4/9/2018        65  

S&P 500® Index

     500        119,500        2,390        4/11/2018        76  
                                              

Total Purchased Options

               $ 228  
              

 

 

 

Open Written Options contracts as of March 31, 2018, were as follows:

 

Description of Options    Number of
Contracts
     Contract Notional
Amount
     Strike
Price(1)
     Expiration
Date
     Value  

Call Options

              

S&P 500® Index

     435      $ 123,105      $ 2,830        4/2/2018      $ (2

S&P 500® Index

     541        153,644        2,840        4/4/2018        (3

S&P 500® Index

     147        40,940        2,785        4/6/2018        (8

S&P 500® Index

     430        120,830        2,810        4/9/2018        (13

S&P 500® Index

     500        139,750        2,795        4/11/2018        (49

Put Options

              

S&P 500® Index

     435        111,360        2,560        4/2/2018        (19

S&P 500® Index

     541        139,308        2,575        4/4/2018        (297

S&P 500® Index

     147        35,280        2,400        4/6/2018        (10

S&P 500® Index

     430        107,715        2,505        4/9/2018        (175

S&P 500® Index

     500        123,250        2,465        4/11/2018        (196
                                              

Total Written Options

               $ (772
              

 

 

 

Footnote Legend:

(1)  Strike price not reported in thousands.
(2)  Amount is less than $500.

 

See Notes to Schedules of Investments

 

15


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

 

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

 

     Total Value at
March 31, 2018
    Level 1
Quoted Prices
    Level 2
Significant
Observable
Inputs
 

Debt Securities:

      

Asset-Backed Securities

   $ 12,112     $     $ 12,112  

Corporate Bonds And Notes

     77,210             77,210  

Foreign Government Securities

     3,837             3,837  

Leveraged Loans

     7,895             7,895  

Mortgage-Backed Securities

     26,105             26,105  

Municipal Bonds

     5,380             5,380  

U.S. Government Securities

     2,029             2,029  

Equity Securities:

      

Common Stocks

     232,169       215,871       16,298  

Preferred Stocks

     3,444       571       2,873  

Money Market Mutual Fund

     6,061       6,061        

Purchased Options

     228       86       143  
  

 

 

   

 

 

   

 

 

 

Total Investments before Written Options

   $ 376,470     $ 222,588     $ 153,882  
  

 

 

   

 

 

   

 

 

 

Written Options

   $ (772   $ (527   $ (245
  

 

 

   

 

 

   

 

 

 

Total Investments Net of Written Options

   $ 375,698     $ 222,061     $ 153,637  
  

 

 

   

 

 

   

 

 

 

There were no securities valued using significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2 or Level 3 related to securities held at March 31, 2018.

 

See Notes to Schedules of Investments

 

16


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS

MARCH 31, 2018 (Unaudited)

 

Note 1. Significant Accounting Policies

The Fund is a closed-end, diversified management investment company registered under the Investment Company Act of 1940 (the “Act”).

The significant accounting policies consistently followed by the Fund in the preparation of its Schedule of Investments are summarized below and, for derivatives, included in Note 2 below. The preparation of the Schedule of Investments in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the Schedule of Investments. Actual results could differ from those estimates and those differences could be significant.

 

  A. Security Valuation

Security valuation procedures for the Fund, which include nightly price variance, as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Directors (the “Board”, or the “Directors”). All internally fair valued securities are approved by a valuation committee appointed by the Board (the “Valuation Committee”). The Valuation Committee is comprised of certain members of management as identified to the Board and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of the model inputs and any changes to the model. Fair valuations are reviewed quarterly by the Board.

The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

 

      Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).

 

      Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

      Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market or other

 

17


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

MARCH 31, 2018 (Unaudited)

 

regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) (at the close of regular trading on the New York Stock Exchange (“NYSE”), generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets.

In such cases the Fund fair values non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, exchange-traded funds and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer-supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation, and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Both are categorized as Level 1 in the hierarchy.

A summary of the inputs used to value the Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for the Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

18


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

MARCH 31, 2018 (Unaudited)

 

Note 2. Derivative Financial Instruments

Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why a Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a Fund’s results of operations and financial position. Summarized below are such disclosures and accounting policies for each specific type of derivative instrument used by the Fund.

 

  Options contracts

($ reported in thousands)

An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed-upon price. The Fund pursues an option income strategy whereby it purchases and sells out-of-the-money puts and calls, creating an options spread designed to generate a consistent level of option cash flow which should result in additional yield. The Fund is subject to equity price risk in the normal course of pursuing its investment objectives.

When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option.

Holdings of the Fund designated to cover outstanding written options are noted in the Schedule of Investments. Purchased options are reported as an asset within “Investment in securities at value” in the Statement of Assets and Liabilities. Options written are reported as a liability within “Written options outstanding at value”. Changes in value of the purchased option is included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations. Changes in value of written options is included in “Net change in unrealized appreciation (depreciation) on written options”.

If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in “Net realized gain (loss) on investments” in the Statement of Operations. Gain or loss on written options is presented separately as “Net realized gain (loss) on written options” in the Statement of Operations.

The risk in writing covered call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing covered put options is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying options is that the Fund pays a premium whether or not the option is exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. Writers (sellers) of options are normally subject to unlimited risk of loss, as the seller will be obligated to deliver or take delivery of the security at a predetermined price which may, upon exercise of the option, be significantly different from the then-market value. However, the Fund may limit its risk of loss when writing an option by purchasing an option by purchasing an option similar to the one that is sold except for the fact it is further “out of the money”.

 

19


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

MARCH 31, 2018 (Unaudited)

 

For the period ended March 31, 2018, the average daily premiums paid by the Fund for purchased options were $634, and the average daily premiums received by the Fund for written options were $1,219.

Note 3. Illiquid and Restricted Securities

($ reported in thousands)

Investments are generally considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category, except where defined as illiquid. The Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

At March 31, 2018, the Fund did not hold any securities that were both illiquid and restricted.

Note 4. Regulatory Matters And Litigation

From time to time, Virtus Investment Advisers, LLC (“VIA”), the Fund’s Adviser, Kayne Anderson Rudnick Investment Management Co. (“KAR”) and Newfleet Asset Management LLC (“Newfleet”) the Fund’s subadvisers and/or their respective affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their products and other activities. At this time, the Fund’s Adviser believes that the outcomes of such matters are not likely, either individually or in the aggregate, to be material to these financial statements.

Note 5. Recent Accounting Pronouncement

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

Note 6. Subsequent Events

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there are no subsequent events that require recognition or disclosure in these financial statements.

 

20


Item 2. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

 

            Virtus Global Dividend & Income Fund Inc.

 

By (Signature and Title)*

 

      /s/ George R. Aylward

 

      George R. Aylward, President

 

      (principal executive officer)

 

Date

 

    May 28, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*

 

      /s/ George R. Aylward

 

      George R. Aylward, President

 

      (principal executive officer)

 

Date

 

    May 28, 2018

 

By (Signature and Title)*

 

      /s/ W. Patrick Bradley

 

      W. Patrick Bradley, Executive Vice President,

      Chief Financial Officer, and Treasurer

 

      (principal financial officer)

 

Date

 

    May 28, 2018

* Print the name and title of each signing officer under his or her signature.