Virtus GF Multi-Sector Income Fund

Product Overview

Investment Partner

Newfleet Asset Management

Newfleet Asset Management leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction.

Newfleet Asset Management is a division of Virtus Fixed Income Advisers, LLC ("VFIA"), an SEC registered investment adviser.


Learn more about Newfleet Asset Management

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.

Investment Overview

  • The fund seeks to generate high current income and total return by applying extensive credit research and a time-tested approach to capitalize on opportunities across undervalued sectors of the bond market. The portfolio seeks diversification among 14 sectors in order to potentially increase return and manage risk.
  • A team of investment professionals provides significant research depth across all bond market sectors.

  • Investors invest in shares of the Fund. The Fund is suitable for long-term investors seeking high current income and who are prepared to accept a moderate level of volatility.
  • The Fund is actively managed. The Fund uses the Bloomberg U.S. Aggregate Bond Index as a comparator benchmark but not to constrain portfolio composition or as a target for performance.

This fund is registered in the following country: the UK

Risk Considerations

Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the portfolio.
Bank Loans: Bank loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be less liquid and may trade infrequently on the secondary market. Bank loans settle on a delayed basis; thus, sale proceeds may not be available to meet redemptions for a substantial period of time after the sale of the loan.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional, or global events such as war (e.g., Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness (e.g., COVID-19 pandemic) or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio's manager(s) to invest the portfolio's assets as intended.
Prospectus: For additional information on risks, please see the fund's prospectus.

Fund Codes

Share Class ISIN Currency Bloomberg
A Shares Accumulating IE00BF41FJ72 USD VGMSIAA
A Shares Distributing IE00BF41FK87 USD VGMSIAD
C Shares Accumulating IE00BF41FQ40 USD VGMSICA
C Shares Distributing IE00BF41FR56 USD VGMSICD
I Shares Accumulating IE00BF41FX17 USD VGMSIIA
I Shares Distributing IE00BF41FY24 USD VGMSIID
R Shares Accumulating IE00BF41G388 USD VGMSIRA
R Shares Distributing IE00BF41G495 USD VGMSIRD

Process


Step 1:
Sector Analysis & Allocation

> Top down, relative value approach

> Relative value analysis looks at:

– yield and spreads
– supply and demand
– investment environment
– sector fundamentals


Step 2:

Issue Selection

> Bottom up, fundamental research driven

> Fundamental analysis includes assessment of:

– credit risk
– company management
– issue structure
– technical market conditions
– focus on valuations

Step 3:
Portfolio Construction, Oversight, and Risk Management

> Duration neutral strategy
> Sector concentration
> Issuer exposure
> Non-U.S. exposure
> Manager review
> Systematic review

Investment Professional

David Albrycht, CFA

David L. Albrycht, CFA

President and Chief Investment Officer

Industry start date: 1985
Start date as fund Portfolio Manager: 2017

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