Updated:
Virtus Convertible & Income Fund
Virtus Convertible & Income Fund is a NYSE-listed closed-end fund investing in convertible securities and high-yield bonds for income and growth.
Virtus Convertible & Income Fund
Virtus Convertible & Income Fund is a publicly traded closed-end fund managed by Virtus Investment Partners, a multi-boutique asset manager headquartered in Hartford, Connecticut. The fund focuses on constructing a diversified portfolio of convertible securities and income-producing instruments, targeting total return through a combination of current income and capital appreciation. Its mandate allows it to invest across the capital structure, with allocations spanning convertible bonds, convertible preferred stock, and high-yield corporate debt. The strategy relies on the hybrid nature of convertibles, which offer bond-like downside protection and equity-like participation in issuer upside. The portfolio managers actively manage credit exposure, duration, and equity sensitivity to balance risk and return. The fund's holdings typically include a mix of investment-grade and below-investment-grade securities, with sector exposures that often reflect technology, healthcare, and consumer discretionary names where convertible issuance is common. As a closed-end fund, the vehicle trades on an exchange and may employ leverage to enhance yield, a feature that distinguishes its structure from open-end mutual funds. The fund trades under a ticker on the New York Stock Exchange, providing daily liquidity to investors. Virtus Investment Partners oversees the fund, while portfolio management and research functions are typically executed by a sub-adviser within the Virtus ecosystem, such as Voya Investment Management or Duff & Phelps, depending on the specific fund and series. A structural differentiator for the fund is its closed-end wrapper with the ability to use leverage, which can amplify income distributions in a low-rate environment but also magnify volatility. The fund's governance follows the Investment Company Act of 1940, with an independent board overseeing the management agreement. This regulatory structure provides a layer of investor protection not found in private credit or direct lending vehicles.
General information
Firm type
Asset Manager
Year founded
—
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Sector focus
Frequently asked questions
What is the investment objective of the Virtus Convertible & Income Fund?
The fund seeks total return through a combination of current income and capital appreciation. It invests primarily in a diversified portfolio of convertible securities and income-producing instruments, including convertible bonds, convertible preferred stocks, and high-yield corporate debt. The strategy leverages the hybrid nature of convertibles to capture equity upside while maintaining fixed-income downside protection.
How does the fund's closed-end structure affect investor outcomes?
As a closed-end fund, it issues a fixed number of shares that trade on the New York Stock Exchange. This structure allows the managers to employ leverage and invest in less liquid securities without facing daily redemptions. However, shares can trade at a premium or discount to net asset value, introducing an additional layer of price risk for investors who buy or sell on the secondary market.
Who manages the day-to-day portfolio for the Virtus Convertible & Income Fund?
The fund is part of the Virtus Investment Partners platform, which operates a multi-boutique model. Portfolio management is typically delegated to a specialized sub-adviser with expertise in convertible securities and fixed income. The specific sub-adviser and named portfolio managers are disclosed in the fund's shareholder reports and regulatory filings.
Does the fund use leverage, and what are the implications?
The fund has the ability to utilize leverage through borrowing or issuing preferred shares, a common feature of closed-end funds. Leverage can enhance distributable income and total returns in favorable markets. The trade-off is increased volatility and higher sensitivity to interest rate changes, which can amplify losses during market downturns.
What types of convertible securities does the fund typically hold?
The portfolio holds a mix of investment-grade and below-investment-grade convertible bonds alongside convertible preferred stock. Holdings tend to concentrate in sectors with active convertible issuance, including technology, healthcare, and consumer discretionary. The managers balance credit quality, conversion premium, and yield to structure the portfolio, as detailed in the fund's quarterly fact sheets and annual reports.
How does this fund generate income compared to a traditional high-yield bond fund?
Income is generated from coupon payments on convertible bonds and dividends from convertible preferred stocks. While yields may be lower than those of pure high-yield bond funds, the trade-off is participation in equity appreciation if the underlying stock price rises above the conversion price. This hybrid mechanism provides a differentiated income-and-growth profile that a traditional high-yield corporate bond fund cannot replicate.
Is the Virtus Convertible & Income Fund a suitable vehicle for institutional allocators?
The fund is exchange-listed and accessible to both retail and institutional investors, offering daily liquidity through secondary market trading. For institutional allocators, it can serve as a liquid proxy for a convertible bond allocation without the operational complexity of a separately managed account. However, institutions must model for the discount/premium to NAV, leverage exposure, and sub-adviser concentration risk when sizing a position.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
Need institutional-grade insight on family offices?
Altss delivers:
Prefer a guided tour?
We’ll walk you through: