VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

LOGO

 

 

 

QUARTERLY REPORT

 

 

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports like this one will no longer be sent by mail, unless specifically requested from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect at any time to receive not only shareholder reports but also certain other communications from the Fund electronically, or you may elect to receive all future shareholder reports in paper free of charge to you. (Please note that the Fund will incur additional expenses when printing and mailing any paper shareholder reports, and Fund expenses pass indirectly to all shareholders.) If you own your shares directly with the Fund, you may make such elections by calling the Fund at 1-866-270-7788 or, with respect to requesting electronic delivery, by visiting www.virtus.com. If you own your shares through a financial intermediary, please contact your financial intermediary to make your request and to determine whether your election will apply to all funds in which you own shares through that intermediary.

 

 

 

Not FDIC Insured

No Bank Guarantee

May Lose Value

  February 28, 2019


FUND DISTRIBUTIONS AND MANAGED DISTRIBUTION PLAN

The Board of Directors (“the Board”) of Virtus Global Dividend & Income Fund Inc. (“Fund”) adopted a Managed Distribution Plan (the “Plan”) which currently provides for the Fund to make a monthly distribution of $0.113 per share. Under the terms of the Plan, the Fund seeks to maintain a consistent distribution level that may be paid in part or in full from net investment income, realized capital gains, and a return of capital, or a combination thereof.

If the Fund estimates that it has distributed more than its income and capital gains in a particular period, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution should not be confused with “yield” or “income.”

To the extent that the Fund uses capital gains and/or return of capital to supplement its investment income, you should not draw any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s Managed Distribution Plan.

The amounts and sources of distributions reported in Section 19(a) notices of the Investment Company Act of 1940 are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that tells them how to report distributions for federal income tax purposes.

The Board may amend, suspend or terminate the Managed Distribution Plan at any time, without prior notice to shareholders if it deems such action to be in the best interest of the Fund and its shareholders.

Information on the Fund is available through the closed-end fund section on the web at www.Virtus.com. Section 19(a) notices are posted on the website at:
http://www.virtus.com/
our-products/closed-end-fund-details/ZTR.


MESSAGE TO SHAREHOLDERS

Dear Virtus Global Dividend & Income Fund Inc. Shareholder:

Enclosed is the quarterly report for the Virtus Global Dividend & Income Fund Inc. (ZTR) for the period ended February 28, 2019.

For the three months ended February 28, 2019, the fund’s NAV increased 0.23%, including $0.339 in reinvested distributions, and its market price increased 10.21%. The fund’s NAV return during the period included a (2.06%) impact from the options overlay strategy.

Effective January 1, 2019, the equity index in the fund’s composite benchmark was changed to the MSCI World High Dividend Yield Index (net) after the former equity index, the Russell Developed Large Cap Index (net), was discontinued and no longer being calculated after December 31, 2018.

For the three months ended February 28, 2019, the fund’s composite benchmark with the new equity index, consisting of 60% MSCI World High Dividend Yield Index (net) and 40% Bloomberg Barclays U.S. Aggregate Bond Index, increased 4.70%, including reinvested dividends. Performance of the composite’s underlying indices for this period included a gain of 1.66% for the MSCI World High Dividend Yield Index (net) and a gain of 2.86% for the Bloomberg Barclays U.S. Aggregate Bond Index.

For the month of December 2018, the fund’s composite benchmark with the old equity index, consisting of 60% Russell Developed Large Cap Index (net) and 40% Bloomberg Barclays U.S. Aggregate Bond Index, returned (3.88%), including reinvested dividends. Performance of the composite’s underlying indices for this period included (7.70%) for the Russell Developed Large Cap Index (net) and a gain of 1.84% for the Bloomberg Barclays U.S. Aggregate Bond Index.

On behalf of Virtus Investment Partners and our affiliated portfolio managers, I thank you for your investment. Should you have any questions or require support, the Virtus customer service team is ready to assist at 1-866-270-7788 or through the closed-end fund section of our website, www.virtus.com.

Sincerely,

 

LOGO

George R. Aylward

President, Chief Executive Officer and Director

Virtus Global Dividend & Income Fund Inc.

April 2019

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than performance shown above. Any market index referenced herein is unmanaged; its returns do not reflect any fees, expenses, or sales charges; and is not available for direct investment.

 

2


MESSAGE TO SHAREHOLDERS (Continued)

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

Options Overlay Strategy: The options overlay strategy may not be successful in achieving its objective of increasing distributable income while limiting the risk of loss and, in periods of significant moves in the S&P 500 Index, has resulted and, in the future, may result in losses for investors.

Foreign Investing: Investing internationally involves additional risks such as currency, political, accounting, economic, and market risk.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

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 repayment of underlying collateral.

Leveraged Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value and have longer settlement times than other investments, which can make loans relatively illiquid at times.

Leverage: When a fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded.

Market Price/NAV: At the time of purchase and/or sale, an investor’s shares may have a market price that is above or below the fund’s NAV, which may increase the investor’s risk of loss.

Fundamental Risk of Investing: There can be no assurance that the Fund will achieve its investment objectives. An investment in the shares of the Fund is subject to loss of principal; shares may decrease in value.

 

3


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE      VALUE  
U.S. GOVERNMENT SECURITIES—4.4%  

U.S. Treasury Bond
3.000%, 8/15/48

  $ 5,905      $ 5,803  

U.S. Treasury Note
2.875%, 8/15/28

    5,230        5,298  

TOTAL U.S. GOVERNMENT SECURITIES

 

(Identified Cost $11,087)              11,101  
MUNICIPAL BONDS—2.3%  
California—0.7%  

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

    1,000        1,494  

University of California, Series B-A, Taxable
4.428%, 5/15/48

    290        298  
    

 

 

 
       1,792  
    

 

 

 
Idaho—0.2%  

Idaho Health Facilities Authority Saint Lukes Health System Revenue Taxable
5.020%, 3/1/48

    355        364  
    

 

 

 
New York—1.2%  

New York City Transitional Finance Authority Future Tax Secured Revenue Series A-3
5.000%, 8/1/40

    1,235        1,404  

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

    1,515        1,686  
    

 

 

 
       3,090  
    

 

 

 
Virginia—0.2%  

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

    565        552  
TOTAL MUNICIPAL BONDS

 

(Identified Cost $5,878)

 

     5,798  
    PAR VALUE     VALUE  
FOREIGN GOVERNMENT SECURITIES—1.3%  

Argentine Republic

 

Treasury Bill, 0.000%, 9/30/19

  $ 1,570 ARS    $ 50  

Treasury Bill, 0.000%, 4/30/20

    2,405 ARS      71  

4.625%, 1/11/23

    755       640  

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

    455       472  

Kingdom of Saudi Arabia
144A 4.375%, 4/16/29(2)

    310       316  

Republic of Indonesia
144A 8.500%, 10/12/35(2)

    440       613  

Republic of Turkey

   

7.375%, 2/5/25

    305       319  

6.000%, 3/25/27

    245       234  

Sultanate of Oman

   

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

    285       267  

144A, 5.625%, 1/17/28(2)

    200       189  
TOTAL FOREIGN GOVERNMENT SECURITIES

 

(Identified Cost $3,187)

 

    3,171  
MORTGAGE-BACKED SECURITIES—8.9%  
Non-Agency—8.9%  

Ajax Mortgage Loan Trust 2018-C, A
144A 4.360%, 9/25/65(1)(2)

    416       419  

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

    610       630  

Angel Oak Mortgage Trust I LLC

   

2018-2, A1
144A, 3.674%, 7/27/48(1)(2)

    122       122  

2019-1, 1A
144A, 3.920%, 11/25/48(1)(2)

    480       482  

Arroyo Mortgage Trust 2019-1, A1
144A 3.805%, 1/25/49(1)(2)

    255       255  

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

    1,085       1,080  

Bayview Opportunity Master Fund IVa Trust

   

2016-SPL1, B1
144A, 4.250%, 4/28/55(2)

    395       402  
 

 

See Notes to Financial Statements

 

 

4


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Non-Agency (continued)  

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

  $ 175     $ 176  

BX Trust 2018-MCSF, A
144A, (1 month LIBOR + 0.577%) 3.066%, 4/15/35(1)(2)

    315       310  

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

    470       478  

Citigroup Commercial Mortgage Trust 2019-SST2, A 144A, (1 month LIBOR + 0.920%) 3.420%, 12/15/36(1)(2)

    385       385  

Colony Starwood Homes Trust 2016-2A, C
144A, (1 month LIBOR + 2.150%) 4.639%, 12/17/33(1)(2)

    306       306  

COLT Mortgage Loan Trust Funding LLC

   

2016-2, A1
144A, 2.750%, 9/25/46(1)(2)

    30       29  

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

    72       72  

2019-1, A1
144A, 3.705%, 3/25/49(1)(2)

    124       124  

CoreVest American Finance Trust 2018-2, A
144A 4.026%, 11/15/52(2)

    314       318  

Credit Suisse First Boston Mortgage Securities Corp. 2003-AR30, 5A1
4.422%, 1/25/34(1)

    161       165  

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

    116       115  

Ellington Financial Mortgage Trust
2018-1, A1FX
144A 4.140%, 10/25/58(1)(2)

    187       188  
    PAR VALUE     VALUE  
Non-Agency (continued)  

Galton Funding Mortgage Trust

   

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

  $ 193     $ 191  

2018-2, A41
144A, 4.500%, 10/25/58(1)(2)

    178       180  

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

    965       948  

JPMorgan Chase (Bear Stearns) Alternate Loan Trust 2004-5, 3A1 4.482%, 6/25/34(1)

    365       371  

JPMorgan Chase Mortgage Trust

   

2014-5, B2
144A, 2.985%, 10/25/29(1)(2)

    146       139  

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

    579       580  

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

    201       195  

MetLife Securitization Trust 2017-1A, M1
144A 3.707%, 4/25/55(1)(2)

    135       131  

Mill City Mortgage Loan Trust 2018-4, A1B
144A 3.500%, 4/25/66(1)(2)

    770       763  

New Residential Mortgage Loan Trust

   

2018-4A, A1S
144A, (1 month LIBOR + 0.750%) 3.240%, 1/25/48(1)(2)

    117       116  

2016-4A, B1A
144A, 4.500%, 11/25/56(1)(2)

    659       683  

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

    180       182  

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

    504       511  

OBX Trust

   

2018-EXP2, 1A1
144A, 4.000%, 11/25/48(1)(2)

    311       313  

2019-INV1, A3
144A, 4.500%, 11/25/48(1)(2)

    372       377  
 

 

See Notes to Financial Statements

 

 

5


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Non-Agency (continued)  

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

  $ 345     $ 350  

Preston Ridge Partners Mortgage LLC
2019-1A, A1
144A 4.500%, 1/25/24(1)(2)

    518       520  

Pretium Mortgage Credit Partners I LLC
2019-NPL1, A1
144A 4.213%, 7/25/60(1)(2)

    315       315  

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       298  

2018-SFR2, B
144A, 3.841%, 8/17/35(2)

    185       186  

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

    224       224  

Residential Mortgage Loan Trust 2019-1, A1
144A 3.936%, 10/25/58(1)(2)

    190       190  

Sequoia Mortgage Trust 2013-8, B1
3.529%, 6/25/43(1)

    343       340  

Structured Adjustable Rate Mortgage Loan Trust 2004-4, 3A2
4.480%, 4/25/34(1)

    131       134  

Towd Point Mortgage Trust

   

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

    610       606  

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

    185       184  

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

    200       196  

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

    330       308  

2019-1, A1
144A, 3.750%, 3/25/58(1)(2)

    623       623  
    PAR VALUE     VALUE  
Non-Agency (continued)  

2018-4, A1
144A, 3.000%, 6/25/58(1)(2)

  $ 247     $ 241  

2018-SJ1, A1
144A, 4.000%, 10/25/58(1)(2)

    194       194  

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

    350       340  

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       162  

Vericrest Opportunity Loan Trust 2019-NPL2, A1
144A 3.967%, 2/25/49(1)(2)

    275       275  

Vericrest Opportunity Loan Trust LXIX LLC
2018-NPL5, A1A
144A 4.213%, 8/25/48(2)

    372       372  

Vericrest Opportunity Loan Trust LXXI LLC
2018-NPL7, A1A
144A 3.967%, 9/25/48(2)

    235       234  

Vericrest Opportunity Loan Trust LXXV LLC
2019-NPL1, A1A
144A 4.336%, 1/25/49(1)(2)

    372       373  

Verus Securitization Trust

   

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

    273       269  

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

    182       181  

2018-2, A1
144A, 3.677%, 6/1/58(1)(2)

    582       584  

2018-3, A1
144A, 4.108%, 10/25/58(1)(2)

    308       310  

2019-1, A1
144A, 3.836%, 2/25/59(1)(2)

    470       470  
 

 

See Notes to Financial Statements

 

 

6


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Non-Agency (continued)  

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

  $ 675     $ 674  
TOTAL MORTGAGE-BACKED SECURITIES

 

(Identified Cost $22,307)             22,184  
ASSET-BACKED SECURITIES—5.1%  
Auto Floor Plan—0.2%  

NextGear Floorplan Master Owner Trust 2018-1A, A2
144A 3.220%, 2/15/23(2)

    355       355  
   

 

 

 
Automobiles—3.4%  

ACC Trust 2018-1, A

   

144A, 3.700%, 12/21/20(2)

    159       159  

2018-1, B
144A, 4.820%, 5/20/21(2)

    335       336  

2019-1, A
144A, 3.750%, 5/20/22(2)

    385       385  

American Credit Acceptance Receivables Trust 2017-2, C

   

144A, 2.860%, 6/12/23(2)

    388       388  

2018-3, C
144A, 3.750%, 10/15/24(2)

    430       431  

2018-4, C
144A, 3.970%, 1/13/25(2)

    400       404  

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

    360       356  

DT Auto Owner Trust 2018-3A, C
144A 3.790%, 7/15/24(2)

    285       287  

Exeter Automobile Receivables Trust 2015-2A, C

   

144A, 3.900%, 3/15/21(2)

    376       377  

2016-3A, B
144A, 2.840%, 8/16/21(2)

    550       549  

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

    415       412  

Flagship Credit Auto Trust 2016-2, B

   

144A, 3.840%, 9/15/22(2)

    285       286  
    PAR VALUE     VALUE  
Automobiles (continued)  

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

  $ 505     $ 502  

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

    400       398  

GLS Auto Receivables Trust 2017-1A, B

   

144A, 2.980%, 12/15/21(2)

    525       524  

2018-3A, C
144A, 4.180%, 7/15/24(2)

    515       521  

Hertz Vehicle Financing II LP 2019-1A, A
144A 3.710%, 3/25/23(2)

    310       312  

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

    415       412  

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

    505       501  

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

    205       205  

Tricolor Auto Securitization Trust 2018-2A, B
144A 4.760%, 2/15/22(2)

    318       321  

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

    505       502  
   

 

 

 
      8,568  
   

 

 

 
Other—1.3%  

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

    348       349  

AXIS Equipment Finance Receivables VI LLC 2018-2A, A2
144A 3.890%, 7/20/22(2)

    392       395  

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

    420       413  
 

 

See Notes to Financial Statements

 

 

7


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Other (continued)  

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

  $ 390     $ 388  

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

    207       207  

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

    82       82  

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

    57       58  

Prosper Marketplace Issuance Trust
2017-2A, B

   

144A, 3.480%, 9/15/23(2)

    343       343  

2018-1A, A
144A, 3.110%, 6/17/24(2)

    116       116  

SoFi Consumer Loan Program LLC 2016-3, A

   

144A, 3.050%, 12/26/25(2)

    133       132  

2017-1, A
144A, 3.280%, 1/26/26(2)

    166       166  

Stack Infrastructure Issuer LLC 2019-1A, A2
144A 4.540%, 2/25/44(2)

    370       374  

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

    328       317  
   

 

 

 
      3,340  
   

 

 

 
Student Loans—0.2%  

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

    460       454  
TOTAL ASSET-BACKED SECURITIES

 

 
(Identified Cost $12,741)             12,717  
CORPORATE BONDS AND NOTES—23.3%  
Communication Services—1.5%  

AT&T, Inc.
4.100%, 2/15/28

    640       631  

Charter Communications Operating LLC

   

4.908%, 7/23/25

    430       445  

5.050%, 3/30/29

    355       362  
    PAR VALUE     VALUE  
Communication Services (continued)  

Comcast Corp.

   

3.950%, 10/15/25

  $ 189     $ 195  

4.150%, 10/15/28

    91       94  

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

    300       295  

Discovery Communications LLC
3.950%, 3/20/28

    405       386  

DISH DBS Corp.
5.875%, 7/15/22

    125       119  

Frontier Communications Corp.
144A 8.500%, 4/1/26(2)

    125       116  

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

    185       191  

Sprint Spectrum Co., LLC

   

144A, 3.360%, 9/20/21(2)

    138       137  

144A, 4.738%, 3/20/25(2)

    265       265  

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

    200       193  

Verizon Communications, Inc.
4.125%, 3/16/27(4)

    330       338  
   

 

 

 
      3,767  
   

 

 

 
Consumer Discretionary—1.6%  

Bunge Ltd. Finance Corp.
4.350%, 3/15/24

    290       287  

Dollar Tree, Inc.
4.000%, 5/15/25

    440       432  

Eldorado Resorts, Inc.
144A 6.000%, 9/15/26(2)

    90       92  

Frontdoor, Inc.
144A 6.750%, 8/15/26(2)

    175       178  

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

    135       140  

GLP Capital LP
5.750%, 6/1/28

    395       410  

Horton (D.R.), Inc.
4.750%, 2/15/23

    510       519  

Lear Corp.
3.800%, 9/15/27

    505       470  

PulteGroup, Inc.
6.375%, 5/15/33

    280       265  
 

 

See Notes to Financial Statements

 

 

8


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Consumer Discretionary (continued)  

QVC, Inc.
4.375%, 3/15/23

  $ 665     $ 670  

Tenneco, Inc.
5.000%, 7/15/26

    165       141  

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

    210       206  

Wyndham Destinations, Inc.
5.750%, 4/1/27

    280       278  
   

 

 

 
      4,088  
   

 

 

 
Consumer Staples—0.9%  

Bacardi Ltd.
144A 4.700%, 5/15/28(2)

    345       335  

Conagra Brands, Inc.
4.300%, 5/1/24

    335       339  

CVS Health Corp.

   

2.875%, 6/1/26

    700       651  

4.300%, 3/25/28

    311       311  

Flowers Foods, Inc.
4.375%, 4/1/22(4)

    330       334  

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

    420       387  
   

 

 

 
      2,357  
   

 

 

 
Energy—2.2%  

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

    420       413  

Cheniere Energy Partners LP
144A 5.625%, 10/1/26(2)

    140       143  

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

    430       419  

Helmerich & Payne, Inc. 144A
4.650%, 3/15/25(2)

    290       296  

HollyFrontier Corp.
5.875%, 4/1/26(4)

    480       506  

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

    615       763  

MPLX LP
4.875%, 12/1/24

    695       725  

NuStar Logistics LP
5.625%, 4/28/27

    320       321  

Petroleos Mexicanos
6.500%, 1/23/29

    210       199  
    PAR VALUE     VALUE  
Energy (continued)  

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

  $ 355     $ 380  

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

    445       492  

Transocean Guardian Ltd.
144A 5.875%, 1/15/24(2)

    104       106  

USA Compression Partners LP
6.875%, 4/1/26

    290       295  

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

    330       334  
   

 

 

 
      5,392  
   

 

 

 
Financials—8.3%  

AerCap Ireland Capital DAC
3.950%, 2/1/22

    495       497  

Allstate Corp. (The) Series B
5.750%, 8/15/53(4)(6)

    485       490  

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

    475       470  

Ares Capital Corp.

   

3.500%, 2/10/23

    175       166  

4.250%, 3/1/25(4)

    325       310  

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

    675       643  

Athene Holding Ltd.
4.125%, 1/12/28

    395       369  

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

    410       381  

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

    325       291  

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

    740       697  

Bank of America Corp.

   

3.004%, 12/20/23

    339       335  

4.200%, 8/26/24

    938       956  

Bank of Montreal
3.803%, 12/15/32

    621       593  

Brighthouse Financial, Inc.
3.700%, 6/22/27

    400       359  
 

 

See Notes to Financial Statements

 

 

9


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Financials (continued)  

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

  $ 495     $ 473  

Brookfield Finance LLC
4.000%, 4/1/24

    598       599  

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

    450       448  

3.750%, 7/28/26(4)

    545       518  

Citigroup, Inc.
5.500%, 9/13/25

    1,300       1,404  

Discover Bank
4.682%, 8/9/28

    375       374  

Fairfax Financial Holdings Ltd.
4.850%, 4/17/28

    430       423  

FS KKR Capital Corp.

   

4.250%, 1/15/20

    410       411  

4.750%, 5/15/22

    100       100  

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

    455       486  

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

    353       355  

iStar, Inc.
5.250%, 9/15/22

    140       137  

Jefferies Financial Group, Inc.
5.500%, 10/18/23

    240       250  

Jefferies Group LLC

   

6.875%, 4/15/21

    59       62  

5.125%, 1/20/23

    95       98  

4.850%, 1/15/27

    250       242  

JPMorgan Chase & Co.
3.300%, 4/1/26

    920       901  

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

    535       613  

Liberty Mutual Group, Inc.

   

144A, 4.250%, 6/15/23(2)

    135       137  

144A, 4.569%, 2/1/29(2)

    475       481  

Morgan Stanley
4.100%, 5/22/23

    385       391  

Navient Corp.
6.750%, 6/25/25

    295       289  

Prudential Financial, Inc.

   

5.875%, 9/15/42

    165       174  

5.625%, 6/15/43(6)

    400       415  
    PAR VALUE     VALUE  
Financials (continued)  

Santander Holdings USA, Inc.

   

4.450%, 12/3/21

  $ 214     $ 218  

3.700%, 3/28/22

    343       343  

4.400%, 7/13/27

    185       181  

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

    500       508  

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

    180       184  

Synchrony Financial
3.950%, 12/1/27

    360       330  

Synovus Financial Corp.
5.900%, 2/7/29

    173       174  

Trinity Acquisition plc
4.400%, 3/15/26

    200       203  

UBS AG
7.625%, 8/17/22

    1,235       1,360  

Wells Fargo & Co.

   

3.550%, 9/29/25

    285       285  

Series S, 5.900%(5)

    585       596  
   

 

 

 
      20,720  
   

 

 

 
Health Care—2.3%  

AbbVie, Inc.

   

3.600%, 5/14/25

    485       476  

3.200%, 5/14/26

    305       288  

Allergan Funding SCS
3.450%, 3/15/22

    540       538  

Anthem, Inc.
4.101%, 3/1/28

    365       370  

Bausch Health Cos., Inc.

   

144A, 6.500%, 3/15/22(2)

    25       26  

144A, 7.000%, 3/15/24(2)

    40       42  

144A, 5.750%, 8/15/27(2)

    15       15  

Becton Dickinson & Co.

   

3.363%, 6/6/24

    89       88  

3.700%, 6/6/27

    370       358  

Cardinal Health, Inc.

   

3.200%, 3/15/23

    325       318  

3.410%, 6/15/27

    185       173  

Cigna Corp.

   

144A, 4.125%, 11/15/25(2)

    15       15  

144A, 4.375%, 10/15/28(2)

    682       691  

Elanco Animal Health, Inc.
144A 4.900%, 8/28/28(2)

    80       83  

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

    325       337  
 

 

See Notes to Financial Statements

 

 

10


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Health Care (continued)  

Mylan NV
3.950%, 6/15/26

  $ 345     $ 322  

Perrigo Finance Unlimited Co.
4.375%, 3/15/26

    320       303  

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

    255       259  

Takeda Pharmaceutical Co. Ltd
144A 4.000%, 11/26/21(2)

    405       412  

Zimmer Biomet Holdings, Inc.
3.550%, 4/1/25

    665       646  
   

 

 

 
      5,760  
   

 

 

 
Industrials—0.9%  

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

    345       332  

CNH Industrial N.V.
4.500%, 8/15/23

    359       366  

Navistar International Corp.
144A 6.625%, 11/1/25(2)

    125       129  

Oshkosh Corp.
4.600%, 5/15/28

    459       458  

Owens Corning
3.400%, 8/15/26

    495       456  

TransDigm, Inc.
6.375%, 6/15/26

    130       126  

United Airlines Pass-Through Trust 07-1, A
6.636%, 7/2/22

    333       347  
   

 

 

 
      2,214  
   

 

 

 
Information Technology—1.0%  

Broadcom Corp.

   

3.000%, 1/15/22

    185       182  

3.625%, 1/15/24

    340       330  

Citrix Systems, Inc.
4.500%, 12/1/27

    290       278  

CommScope Finance LLC
144A 8.250%, 3/1/27(2)

    80       83  

Dell International LLC

   

144A, 6.020%, 6/15/26(2)

    100       106  

144A, 8.100%, 7/15/36(2)

    230       262  
    PAR VALUE     VALUE  
Information Technology (continued)  

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

  $ 330     $ 344  

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

    470       476  

VMware, Inc.

   

2.950%, 8/21/22

    216       211  

3.900%, 8/21/27

    233       217  
   

 

 

 
      2,489  
   

 

 

 
Materials—1.8%  

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

    300       283  

ArcelorMittal
6.125%, 6/1/25

    450       492  

BHP Billiton Finance USA Ltd.
144A 6.750%, 10/19/75(2)(6)

    410       450  

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

    425       394  

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

    425       404  

Greif, Inc. 144A 6.500%, 3/1/27(2)

    165       168  

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

    935       947  

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

    130       126  

SABIC Capital II BV
144A 4.500%, 10/10/28(2)

    360       370  

Syngenta Finance N.V.
144A 4.441%, 4/24/23(2)

    430       430  

Vulcan Materials Co.
3.900%, 4/1/27

    425       405  
   

 

 

 
      4,469  
   

 

 

 
Real Estate—2.0%  

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

    300       295  

Corporate Office Properties LP
3.600%, 5/15/23

    660       645  

EPR Properties
4.750%, 12/15/26

    620       624  
 

 

See Notes to Financial Statements

 

 

11


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Real Estate (continued)  

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

  $ 435     $ 419  

Hospitality Properties Trust
4.950%, 2/15/27

    510       495  

Kilroy Realty LP
4.375%, 10/1/25

    475       482  

LifeStorage LP

   

3.500%, 7/1/26

    455       430  

3.875%, 12/15/27

    165       158  

MPT Operating Partnership LP
5.000%, 10/15/27

    170       169  

Office Properties Income Trust
4.500%, 2/1/25

    470       446  

Physicians Realty LP
3.950%, 1/15/28

    435       411  

Welltower, Inc.
4.000%, 6/1/25

    500       504  
   

 

 

 
      5,078  
   

 

 

 
Utilities—0.8%  

American Electric Power Co., Inc. Series I 3.650%, 12/1/21

    158       160  

Duke Energy Corp.
2.650%, 9/1/26

    505       470  

Exelon Corp. 3.497%, 6/1/22

    605       601  

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

    520       529  

PSEG Power LLC
3.850%, 6/1/23

    118       119  

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

    215       204  
   

 

 

 
        2,083  
TOTAL CORPORATE BONDS AND NOTES

 

(Identified Cost $59,422)             58,417  
    PAR VALUE     VALUE  
LEVERAGED LOANS(1)—3.1%  
Aerospace—0.1%  

Atlantic Aviation FBO, Inc., (1 month LIBOR + 3.750%)
6.270%, 12/6/25

  $ 45     $ 45  

TransDigm, Inc. Tranche E, (1 month LIBOR + 2.500%)
4.993%, 5/30/25

    124       122  
   

 

 

 
      167  
   

 

 

 
Consumer Durables—0.1%  

Global Appliance, Inc. Tranche B, (1 month LIBOR + 4.000%) 6.500%, 9/29/24

    210       209  
   

 

 

 
Consumer Non-Durables—0.1%  

Kronos Acquisition Intermediate, Inc., (1 month LIBOR + 4.000%)
6.493%, 5/15/23

    280       261  
   

 

 

 
Financial—0.1%  

Financial & Risk US Holdings, Inc., (1 month LIBOR + 3.750%)
6.243%, 10/1/25

    275       271  
   

 

 

 
Food/Tobacco—0.2%  

Aramark Intermediate HoldCo Corp. Tranche B-3, (1 month LIBOR + 1.750%)
4.243%, 3/11/25

    154       153  

CHG PPC Parent LLC First Lien, (1 month LIBOR + 2.750%) 5.243%, 3/31/25

    139       138  

H-Food Holdings, LLC

 

(1 month LIBOR + 3.688%) 6.181%, 5/23/25

    35       34  

Tranche B-2, (1 month LIBOR + 4.000%) 6.493%, 5/23/25

    175       174  
   

 

 

 
      499  
   

 

 

 
 

 

See Notes to Financial Statements

 

 

12


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Gaming/Leisure—0.4%  

Scientific Games International, Inc. Tranche B-5, (1 month LIBOR + 2.750%) 5.312%, 8/14/24

  $ 208     $ 206  

Seminole Tribe of Florida 2018 Replacement, Tranche B, (1 month LIBOR + 1.750%) 4.243%, 7/8/24

    267       266  

Station Casinos LLC Tranche B, (1 month LIBOR + 2.500%) 5.000%, 6/8/23

    239       238  

Wyndham Hotels & Resorts, Inc. Tranche B, (1 month LIBOR + 1.750%) 4.243%, 5/30/25

    224       223  
   

 

 

 
      933  
   

 

 

 
Healthcare—0.4%  

Bausch Health Cos., Inc.

 

(1 month LIBOR + 3.000%) 5.512%, 6/2/25

    43       43  

(1 month LIBOR + 2.750%) 5.262%, 11/27/25

    72       72  

CHG Healthcare Services, Inc. First Lien, (3 month LIBOR + 3.000%) 5.654%, 6/7/23

    297       296  

Iqvia, Inc. Tranche B-3, (1 month LIBOR + 1.750%) 4.243%, 6/11/25

    274       272  

RegionalCare Hospital Partners Holdings, Inc. Tranche B, (1 month LIBOR + 4.500%) 6.981%, 11/16/25

    285       284  
   

 

 

 
      967  
   

 

 

 
Housing—0.5%  

American Builders & Contractors Supply Co., Inc. Tranche B-2, (1 month LIBOR + 2.000%) 4.493%, 10/31/23

    347       345  
    PAR VALUE     VALUE  
Housing (continued)  

Capital Automotive LP Tranche B-2, (1 month LIBOR + 2.500%) 5.000%, 3/25/24

  $ 379     $ 373  

CPG International LLC, (3 month LIBOR + 3.750%) 0.000%, 5/5/24(9)

    255       253  

Summit Materials, LLC, (1 month LIBOR + 2.000%) 4.493%, 11/21/24

    279       277  
   

 

 

 
      1,248  
   

 

 

 
Information Technology—0.1%  

Boxer Parent Co., Inc., (3 month LIBOR + 4.250%) 7.053%, 10/2/25

    285       283  
   

 

 

 
Manufacturing—0.2%  

Accudyne Industries Borrower S.C.A., (1 month LIBOR + 3.000%) 5.493%, 8/18/24

    288       288  

CommScope, Inc. Tranche B, (3 month LIBOR + 3.250%) 0.000%, 2/6/26(9)

    240       241  
   

 

 

 
      529  
   

 

 

 
Media/Telecom - Cable/Wireless Video—0.0%  

CSC Holdings, LLC, (1 month LIBOR + 2.250%) 4.739%, 1/15/26

    115       113  
   

 

 

 
Media/Telecom - Diversified Media—0.1%  

Crown Finance US, Inc., (1 month LIBOR + 2.500%) 4.993%, 2/28/25

    279       277  
   

 

 

 
Media Telecom - Telecommunications—0.2%  

CenturyLink, Inc. Tranche B, (1 month LIBOR + 2.750%) 5.243%, 1/31/25

    495       487  
   

 

 

 
 

 

See Notes to Financial Statements

 

 

13


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    PAR VALUE     VALUE  
Media/Telecom - Wireless
Communications—0.1%
 

SBA Senior Finance II LLC, (1 month LIBOR + 2.000%) 4.500%, 4/11/25

  $ 154     $ 153  
   

 

 

 
Retail—0.0%  

Bass Pro Group LLC, (1 month LIBOR + 5.000%) 7.493%, 9/25/24

    70       70  
   

 

 

 
Service—0.3%  

Dun & Bradstreet Corp. (The), (1 month LIBOR + 5.000%) 0.000%, 2/6/26(9)

    255       255  

Red Ventures LLC Tranche B-1, (1 month LIBOR + 3.000%) 5.493%, 11/8/24

    259       259  

Sedgwick Claims Management Services, Inc., (1 month LIBOR + 3.250%) 5.743%, 12/31/25

    10       10  

TKC Holdings, Inc. First Lien, (1 month LIBOR + 3.750%) 6.250%, 2/1/23

    192       189  
   

 

 

 
      713  
   

 

 

 
Transportation - Automotive—0.1%  

Navistar, Inc. Tranche B, (1 month LIBOR + 3.500%) 6.020%, 11/6/24

    218       217  
   

 

 

 
Utility—0.1%  

Brookfield WEC Holdings, Inc. First Lien, (1 month LIBOR + 3.750%) 6.243%, 8/1/25

    220       220  

Vistra Operations Co., LLC, (1 month LIBOR + 2.000%)
4.484%, 12/31/25

    159       159  
   

 

 

 
        379  
TOTAL LEVERAGED LOANS    
(Identified Cost $7,831)             7,776  
    SHARES     VALUE  
PREFERRED STOCKS—1.1%  
Financials—1.1%  

Bank of New York Mellon Corp. (The)
Series E, 4.950%

    255 (7)    $ 259  

Huntington Bancshares, Inc.
Series E, 5.700%

    280 (7)      269  

JPMorgan Chase & Co.
Series Z, 5.300%

    550 (7)      560  

KeyCorp
Series D, 5.000%(8)

    270 (7)      259  

M&T Bank Corp.
Series F, 5.125%(8)

    355 (7)      352  

MetLife, Inc.
Series D, 5.875%

    156 (7)      157  

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

    535 (7)      526  

Series S, 5.000%(4)

    485 (7)      469  
TOTAL PREFERRED STOCKS

 

(Identified Cost $2,919)             2,851  
COMMON STOCKS—80.7%  
Communication Services—9.7%  

AT&T, Inc.

    170,743       5,314  

BCE, Inc.

    209,710       9,332  

Spark New Zealand Ltd.

    3,747,644       9,519  
   

 

 

 
    24,165  
 

 

 

 
Consumer Discretionary—3.2%  

Compass Group plc Sponsored ADR

    94,578       2,120  

Las Vegas Sands Corp.

    94,900       5,830  
   

 

 

 
    7,950  
 

 

 

 
Consumer Staples—5.5%  

Clorox Co. (The)

    12,620       1,994  

Coca-Cola Co. (The)

    135,660       6,151  

Tate & Lyle plc

    613,953       5,660  
   

 

 

 
    13,805  
 

 

 

 
Energy—9.2%  

ONEOK, Inc.

    87,700       5,635  

Royal Dutch Shell plc Class B Sponsored ADR

    139,880       8,898  

TOTAL S.A. Sponsored ADR

    63,850       3,634  

Vermilion Energy, Inc.

    190,388       4,870  
   

 

 

 
    23,037  
 

 

 

 
 

 

See Notes to Financial Statements

 

 

14


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    SHARES     VALUE  
Financials—17.4%  

Bank of Hawaii Corp.

    30,420     $ 2,502  

HSBC Holdings plc

    243,930       1,983  

HSBC Holdings plc Sponsored ADR

    133,455       5,449  

Royal Bank of Canada

    88,299       6,903  

Sabre Insurance Group plc

    1,641,620       5,857  

SCOR SE Sponsored ADR

    416,228       1,848  

Tokio Marine Holdings, Inc.

    72,370       3,523  

Tryg A/S

    173,457       4,728  

Zurich Insurance Group AG

    8,190       2,708  

Zurich Insurance Group AG ADR

    246,970       8,130  
   

 

 

 
    43,631  
 

 

 

 
Health Care—6.5%  

AstraZeneca plc Sponsored ADR

    48,088       2,000  

GlaxoSmithKline plc

    94,260       1,872  

GlaxoSmithKline plc Sponsored ADR

    146,160       5,899  

Merck & Co., Inc.

    27,590       2,243  

Sonic Healthcare Ltd.

    95,000       1,625  

Sonic Healthcare Ltd. Sponsored ADR

    157,944       2,699  
   

 

 

 
    16,338  
 

 

 

 
Industrials—4.8%  

ABB Ltd. Registered Shares

    192,840       3,819  

Port of Tauranga Ltd.

    558,800       2,032  

Waste Management, Inc.

    22,260       2,254  

Watsco, Inc.

    27,309       3,929  
   

 

 

 
    12,034  
 

 

 

 
Information Technology—5.8%  

Analog Devices, Inc.

    27,350       2,925  

Cisco Systems, Inc.

    41,930       2,171  

Paychex, Inc.

    37,810       2,912  

Tieto OYJ

    221,552       6,552  
   

 

 

 
    14,560  
 

 

 

 
Materials—1.7%  

Sonoco Products Co.

    72,717       4,209  
   

 

 

 
Real Estate—9.1%  

Crown Castle International Corp.

    63,230       7,509  
    SHARES     VALUE  
Real Estate (continued)  

Lamar Advertising Co. Class A

    111,161     $ 8,623  

Realty Income Corp.

    96,375       6,665  
   

 

 

 
    22,797  
 

 

 

 
Utilities—7.8%  

Duke Energy Corp.

    82,820       7,426  

Fortis, Inc.

    168,640       6,079  

WEC Energy Group, Inc.

    78,220       5,967  
   

 

 

 
        19,472  
TOTAL COMMON STOCKS
(Identified Cost $195,517)

 

    201,998  
TOTAL LONG-TERM INVESTMENTS—130.2%

 

(Identified Cost $320,889)             326,013 (11) 
SHORT-TERM INVESTMENTS—1.9%  
Purchased Options—0.0%  

(See the open purchased options table on page 17 for the detailed information)

               
TOTAL PURCHASED OPTIONS—0.0%

 

(Premiums Paid $135)

 

    65  
Money Market Mutual Fund —1.9%  

Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 2.301%)(10)

    4,732,459       4,732 (11) 
TOTAL SHORT-TERM INVESTMENTS

 

(Identified Cost $4,867)             4,797  
TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—132.1%

 

(Identified Cost $325,756)

 

    330,810  
 

 

See Notes to Financial Statements

 

 

15


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

    SHARES     VALUE  
WRITTEN OPTIONS—(0.1)%  

(See the open written options table on page 17 for the detailed information)

               
TOTAL WRITTEN OPTIONS—(0.1)% (Premiums Received $257)

 

  $ (128
TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—132.0%

 

(Identified Cost $325,499)

 

    330,682  

Other assets and liabilities,
net—(32.0)%

      (80,219
   

 

 

 
NET ASSETS—100.0%     $250,463  
   

 

 

 

Abbreviations

ADR

American Depositary Receipt

LIBOR

London Interbank Offered Rate

Footnote Legend:

(1) 

Variable rate security. Rate disclosed is as of February 28, 2019. 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 February 28, 2019, these securities amounted to a value of $48,692 or 19.4% 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) 

No contractual maturity date.

(6) 

Interest payments may be deferred.

(7) 

Value shown as par value.

(8) 

Interest may be forfeited.

(9) 

This loan will settle after February 28, 2019, 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.

Foreign Currency:

ARS

Argentine Peso

 

Country Weightings†  

United States

     59

United Kingdom

     12  

Canada

     9  

Switzerland

     5  

New Zealand

     3  

Finland

     2  

France

     2  

Other

     8  

Total

     100

% of total investments net of written options as of February 28, 2019.

 

 

 

See Notes to Financial Statements

 

 

16


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

Open Purchased Options contracts as of February 28, 2019, were as follows:

 

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

Call Options

              

S&P 500® Index

     111      $ 32,468      $ 2,925        3/1/19      $  

S&P 500® Index

     93        27,435        2,950        3/4/19         

S&P 500® Index

     102        30,090        2,950        3/6/19         

S&P 500® Index

     112        33,152        2,960        3/8/19         

S&P 500® Index

     102        30,345        2,975        3/11/19         

S&P 500® Index

     102        30,192        2,960        3/13/19         
              

 

 

 
                  
              

 

 

 

Put Options

              

S&P 500® Index

     111        28,805        2,595        3/1/19         

S&P 500® Index

     93        24,227        2,605        3/4/19        2  

S&P 500® Index

     102        26,622        2,610        3/6/19        5  

S&P 500® Index

     112        29,400        2,625        3/8/19        14  

S&P 500® Index

     102        26,928        2,640        3/11/19        19  

S&P 500® Index

     102        26,724        2,620        3/13/19        25  
              

 

 

 
                 65  
                                              

Total Purchased Options

               $ 65  
              

 

 

 

Open Written Options contracts as of February 28, 2019, were as follows:

 

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

Call Options

              

S&P 500® Index

     111      $ 31,913      $ 2,875        3/1/19      $  

S&P 500® Index

     93        26,877        2,890        3/4/19         

S&P 500® Index

     102        29,529        2,895        3/6/19         

S&P 500® Index

     112        32,592        2,910        3/8/19        (1

S&P 500® Index

     102        29,784        2,920        3/11/19        (2) 

S&P 500® Index

     102        29,631        2,905        3/13/19        (2
              

 

 

 
                 (3
              

 

 

 

Put Options

              

S&P 500® Index

     111        29,360        2,645        3/1/19        (1

S&P 500® Index

     93        24,785        2,665        3/4/19        (2

S&P 500® Index

     102        27,183        2,665        3/6/19        (9

S&P 500® Index

     112        29,960        2,675        3/8/19        (26

S&P 500® Index

     102        27,489        2,695        3/11/19        (43

S&P 500® Index

     102        27,285        2,675        3/13/19        (44
              

 

 

 
                 (125
                                              

Total Written Options

               $ (128
              

 

 

 

Footnote Legend:

(1) 

Strike price not reported in thousands.

(2) 

Amount is less than $500.

 

See Notes to Schedules of Investments

 

17


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

($ reported in thousands)

 

The following table provides a summary of inputs used to value the Fund’s investments as of February 28, 2019 (See Security Valuation Note 1A in the Notes to Schedules of Investments):

 

     Total Value at
February 28, 2019
    Level 1
Quoted Prices
    Level 2
Significant
Observable
Inputs
 

Debt Securities:

      

Asset-Backed Securities

   $ 12,717     $     $ 12,717  

Corporate Bonds and Notes

     58,417             58,417  

Foreign Government Securities

     3,171             3,171  

Leveraged Loans

     7,776             7,776  

Mortgage-Backed Securities

     22,184             22,184  

Municipal Bonds

     5,798             5,798  

U.S. Government Securities

     11,101             11,101  

Equity Securities:

      

Common Stocks

     201,998       201,998        

Preferred Stocks

     2,851             2,851  

Money Market Mutual Fund

     4,732       4,732        

Purchased Options

     65       65        
  

 

 

   

 

 

   

 

 

 

Total Investments, before Written Options

   $ 330,810     $ 206,795     $ 124,015  
  

 

 

   

 

 

   

 

 

 

Liabilities:

      

Written Options

   $ (128   $ (126   $ (2
  

 

 

   

 

 

   

 

 

 

Total Investments, net of Written Options

   $ 330,682     $ 206,669     $ 124,013  
  

 

 

   

 

 

   

 

 

 

There were no securities valued using significant unobservable inputs (Level 3) at February 28, 2019.

There were no transfers between Level 1, Level 2 or Level 3 related to securities held at February 28, 2019.

 

See Notes to Schedules of Investments

 

18


VIRTUS GLOBAL DIVIDEND & INCOME FUND

FINANCIAL HIGHLIGHTS (Unaudited)

FEBRUARY 28, 2019

(Reported in thousands except for the per share amounts)

 

     Total Net Assets     Net Asset Value
per share
 

Beginning of period: November 30, 2018

     $ 259,013       $ 10.54  

Net investment income*

   $ 1,022       $ 0.04    

Net realized and unrealized gain on investments

     (1,414       (0.05  

Dividends from net investment income and distributions from net long-term and short-term capital gains**

     (8,328       (0.34  

Capital share transactions:

        

Issuance of common stock related to reinvestment of distributions

     170            
  

 

 

     

 

 

   

Net increase (decrease) in net assets/net asset value

  
 

        

 
    (8,550  
 

        

 
    (0.35
    

 

 

     

 

 

 

End of period: February 28, 2019

     $ 250,463       $ 10.19  
    

 

 

     

 

 

 

 

*

Calculated using average shares outstanding.

**

Please note that the tax status of our distributions is determined at the end of the taxable year. However, based on interim data as of February 28, 2019, we estimate that 12.3% of distributions will represent net investment income, and 87.7% will represent return of capital. Also refer to inside front cover for information on the Managed Distribution Plan.

 

See Notes to Schedules of Investments

 

19


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

FEBRUARY 28, 2019

 

Note 1. Significant Accounting Policies

Virtus Global Dividend & Income Fund Inc. is a closed-end, diversified management investment company registered under the Investment Company Act of 1940 (the “Act”). The Fund follows the accounting and reporting guidance of of Accounting Standards Codification Topic 946 applicable to Investment Companies.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its Schedule of Investments 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

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 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

 

20


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

 

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 internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Listed derivatives, such as options, 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 and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is 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.

 

  B.

Security Transactions and Investment Income

Security transactions are recorded on the trade date. Realized gains and losses from sales of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method.

Any distributions from the underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

 

  C.

Foreign Currency Transactions

Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is

 

21


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

 

accrued and the date it is paid is treated as a gain or loss on foreign currency. The Fund does not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

 

  D.

Leveraged Loans

The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the leveraged loans with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.

The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers, and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.

The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a Leveraged loans by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

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.

 

22


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

 

 

  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 as collateral for outstanding written options are noted in the Schedule of Investments.

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.

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”.

For the period ended February 28, 2019, the average daily premiums paid by the Fund for purchased options were $270, and the average daily premiums received by the Fund for written options were $521.

Note 3. Regulatory Matters And Litigation

From time to time, Virtus Investment Advisers, LLC (“VIA”), the Fund’s Adviser, Kayne Anderson Rudnick Investment Management Co. (“KAR”) Newfleet Asset Management LLC (“Newfleet”) and Rampart Investment Management Company LLC (“Rampart”) 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.

 

23


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

 

Note 4. Recent Accounting Pronouncement

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), ASU No. 2018-13, which changes certain fair value measurement disclosure requirements. This ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. For public companies, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management has evaluated the implications of certain provisions of ASU No. 2018-13 and has determined to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately.

Note 5. 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 the following subsequent event requires recognition or disclosure in these financial statements.

 

24


KEY INFORMATION

Shareholder Relations: 1-866-270-7788

For general information and literature, as well as updates on net asset value, share price, major industry groups and other key information

REINVESTMENT PLAN

The Automatic Reinvestment and Cash Purchase Plan (the “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 in the Plan.

REPURCHASE OF SECURITIES

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may from time to time purchase its shares of common stock in the open market when Fund shares are trading at a discount from their net asset value.

PROXY VOTING INFORMATION (FORM N-PX)

The Adviser and subadvisers vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Fund’s Board. You may obtain a description of these procedures, along with information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-866-270-7788.

FORM N-Q INFORMATION

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC’s Public Reference Room. Information on the operation of the SEC’s Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330.

 

25


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

101 Munson Street

Greenfield, MA 01301-9668

 

Board of Directors

George R. Aylward

Philip R. McLoughlin, Chairman

William R. Moyer

James M. Oates

James B. Rogers, Jr.

R. Keith Walton

Brian T. Zino

William H. Wright II, Advisory Member

Officers

George R. Aylward, President and Chief Executive Officer

Frances G. Waltman, Executive Vice President

W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer

Nancy Engberg, Senior Vice President and Chief Compliance Officer

Julia R. Short, Senior Vice President

William Renahan, Vice President, Chief Legal Officer, and Secretary

Investment Adviser

Virtus Investment Advisers, Inc.

One Financial Plaza

Hartford, CT 06103-2608

Fund Administrator

Virtus Fund Services, LLC

One Financial Plaza

Hartford, CT 06103-2608

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286-1048

Transfer Agent

Computershare Trust Company, NA

P.O. Box 43078

Providence, RI 02940-3078

Fund Counsel

Sullivan & Worcester LLP

1666 K Street NW

7th Floor

Washington D.C. 20006

How to Contact Us

Shareholder Services 1-866-270-7788

Website www.Virtus.com

 

 

This report is transmitted to the shareholders of Virtus Global Dividend & Income Fund Inc. for their information. This is not a prospectus, circular, or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.


 

 

 

For more information about

Virtus Closed-End Funds, please

contact us at 1-866-270-7788

or closedendfunds@virtus.com

or visit Virtus.com.

 

Q-1    04-19

 

LOGO

c/o Computershare Investor Services

P.O. Box 43078

Providence, RI 02940