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 01301-9668                              

(Address of principal executive offices) (Zip code)

William Renahan, Esq.

Vice President, Chief Legal Officer and Secretary for Registrant

One Financial Plaza

                                             Hartford, CT 06103                                             

(Name and address of agent for service)

Registrant’s telephone number, including area code: (866) 270-7788

Date of fiscal year end: November 30

Date of reporting period: February 28, 2019

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, 100 F Street, NE, Washington, DC 20549. 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)

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

 

 

1


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

 

 

2


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

 

 

3


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

 

 

4


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

 

 

5


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

 

 

6


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

 

 

7


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

 

 

8


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

 

 

9


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

 

 

10


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

 

 

11


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

 

 

12


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

 

 

13


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

 

14


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

 

15


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

 

16


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.

 

17


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

FEBRUARY 28, 2019

 

 

  B.

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.

 

18


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.

 

19


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.

 

20


Item 2. Controls and Procedures.

 

  (a)

The Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report and have concluded that these controls and procedures are effective.

 

  (b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 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

 

    April 26, 2019

 

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

 

    April 26, 2019

 

 

By (Signature and Title)*

 

    /s/ W. Patrick Bradley

 

    W. Patrick Bradley, Executive Vice President,

 

    Chief Financial Officer, and Treasurer

 

    (principal financial officer)

 

Date

 

    April 26, 2019

 

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