Virtus Global Multi-Sector Income Fund

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.


	PAR VALUE			VALUE
MUNICIPAL BONDS—1.0%

California—0.6%
San Diego Tobacco Settlement Revenue Funding Corp. 7.125%, 6/1/32	$	734		$	598
State of California Build America Bond Taxable 7.500%, 4/1/34		570			751

					1,349

Illinois—0.4%
State of Illinois Build America Bond Taxable 6.900%, 3/1/35		700			804

TOTAL MUNICIPAL BONDS (Identified Cost $2,074)					2,153


FOREIGN GOVERNMENT SECURITIES—15.7%

Bolivarian Republic of Venezuela RegS 5.750%, 2/26/16⁽⁴⁾		2,250			2,062
Commonwealth of Australia Series 118, 6.500%, 5/15/13		3,100	^AUD		3,287
Commonwealth of Canada 1.750%, 3/1/13		765			781
Commonwealth of New Zealand Series 413, 6.500%, 4/15/13		1,750	^NZD		1,481
Federative Republic of Brazil
12.500%, 1/5/16		1,025	^BRL		635
8.500%, 1/5/24		4,355	^BRL		2,513
Kingdom of Spain 5.850%, 1/31/22		370	^EUR		471
Kingdom of Sweden Series 1041, 6.750%, 5/5/14		4,695	^SEK		783
Republic of Argentina PIK Interest Capitalization 8.280%, 12/31/33		5,740			4,534
Republic of Croatia 144A 6.375%, 3/24/21⁽³⁾		875			971
Republic of Iceland 144A 5.875%, 5/11/22⁽³⁾		1,180			1,286
Republic of Korea Series 1403, 4.750%, 3/10/14		800,000			740
Republic of Peru
144A 7.840%, 8/12/20⁽³⁾		875	^PEN		417
RegS 6.900%, 8/12/37⁽⁴⁾		1,700	^PEN		788
Republic of Poland Series 0414, 5.750%, 4/25/14		9,300	^PLZ		2,976
Republic of Slovak 144A 4.375%, 5/21/22⁽³⁾		1,235			1,299
Republic of South Africa Series R206 7.500%, 1/15/14		21,200	^ZAR		2,622
Republic of Turkey 9.000%, 3/5/14		5,565	^TRY		3,157
United Mexican States Series M, 6.000%, 6/18/15		35,100	^MXN		2,817


	PAR VALUE			VALUE
Series M, 6.500%, 6/9/22		19,000	^MXN	$	1,605

TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $35,028)					35,225


MORTGAGE-BACKED SECURITIES—4.6%

Non-Agency—4.6%
Bear Stearns Commercial Mortgage Securities, Inc.
05-PW10, AM 5.449%, 12/11/40⁽²⁾	$	1,000			1,065
07-PW18, AM 6.084%, 6/11/50⁽²⁾		1,400			1,525
Extended Stay America Trust 10-ESHA, D 144A 5.498%, 11/5/27⁽³⁾		1,390			1,401
Indymac Index Mortgage Loan Trust 05-AR1, 3A1 2.699%, 3/25/35⁽²⁾		1,779			1,618
JPMorgan Chase Commercial Mortgage Securities Corp. 06-CB17, AM 5.464%, 12/12/43		750			767
Morgan Stanley Capital I, Inc. 07-IQ14, A4 5.692%, 4/15/49⁽²⁾		1,940			2,221
Opteum Mortgage Acceptance Corp. 06-1, 2APT 5.750%, 4/25/36⁽²⁾		1,016			971
Washington Mutual Commercial Mortgage Securities Trust 06-SL1, A, 144A 5.290%, 11/23/43⁽²⁾⁽³⁾		748			736

TOTAL MORTGAGE-BACKED SECURITIES (Identified Cost $9,999)					10,304


ASSET-BACKED SECURITIES—3.0%

CIT Group Home Equity Loan Trust 03-1, A5 4.980%, 7/20/34⁽²⁾		1,450			1,360
Dominos Pizza Master Issuer LLC 12-1A, A2 144A 5.216%, 1/25/42⁽³⁾		1,489			1,660
Drug Royalty Corp., Inc. 12-1, A2 144A 5.800%, 7/15/24⁽³⁾		1,014			1,013
Franklin Auto Trust 08-A, D 144A 8.180%, 5/20/16⁽³⁾		700			703
GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35⁽²⁾		1,092			1,096
Orange Lake Timeshare Trust 12-AA, B 144A 4.870%, 3/10/27⁽³⁾		908			931

TOTAL ASSET-BACKED SECURITIES (Identified Cost $6,476)					6,763


	PAR VALUE			VALUE
CORPORATE BONDS AND NOTES—95.9%

Consumer Discretionary—6.4%
American Axle & Manufacturing, Inc. 6.625%, 10/15/22	$	785		$	799
Arcos Dorados Holdings, Inc. 144A 10.250%, 7/13/16⁽³⁾		1,115	^BRL		591
Boyd Gaming Corp. 9.125%, 12/1/18		950			1,002
Caesars Operating Escrow LLC (Caesars Escrow Corp.) 144A 8.500%, 2/15/20⁽³⁾		1,050			1,053
Chrysler Group LLC (Chrysler Group, Inc.) 8.250%, 6/15/21		950			1,017
Claire’s Stores, Inc. 144A 9.000%, 3/15/19⁽³⁾		805			839
Clear Channel Communications, Inc. 9.000%, 3/1/21		1,250			1,119
Globo Comunicacao e Participacoes SA 144A 4.875%, 4/11/22⁽³⁾		620			672
HOA Restaurant Group LLC (HOA Finance Corp.) 144A 11.250%, 4/1/17⁽³⁾		1,150			1,055
Isle of Capri Casinos, Inc. 7.750%, 3/15/19		1,050			1,134
MGM Resorts International 144A 6.750%, 10/1/20⁽³⁾		950			952
Nara Cable Funding Ltd. 144A 8.875%, 12/1/18⁽³⁾		1,425			1,307
Pittsburgh Glass Works LLC 144A 8.500%, 4/15/16⁽³⁾		1,100			1,028
QVC, Inc. 144A 5.125%, 7/2/22⁽³⁾		690			731
Univision Communications, Inc. 144A 7.875%, 11/1/20⁽³⁾		850			914

					14,213

Consumer Staples—0.3%
Delhaize Group SA 4.125%, 4/10/19		755			730

Energy—19.1%
Afren plc 144A 10.250%, 4/8/19⁽³⁾		925			1,057
Barrett (Bill) Corp. 7.000%, 10/15/22		1,250			1,288
BreitBurn Energy Partners LP (BreitBurn Finance Corp.) 144A 7.875%, 4/15/22⁽³⁾		1,575			1,638
Chesapeake Energy Corp. 6.775%, 3/15/19		1,540			1,546
Dolphin Energy Ltd. 144A 5.500%, 12/15/21⁽³⁾		2,000			2,313
EP Energy LLC (EP Energy Finance, Inc.) 144A 9.375%, 5/1/20⁽³⁾		1,250			1,364
Expro Finance Luxembourg SCA 144A 8.500%, 12/15/16⁽³⁾		1,041			1,077
Forest Oil Corp. 7.250%, 6/15/19		1,450			1,446


	PAR VALUE		VALUE
Energy—(continued)
Gazprom OAO (Gaz Capital SA) 144A 6.510%, 3/7/22⁽³⁾⁽⁷⁾	$	2,200	$	2,586
Gulfmark Offshore, Inc. 144A 6.375%, 3/15/22⁽³⁾		1,700		1,768
Hercules Offshore, Inc. 144A 10.250%, 4/1/19⁽³⁾		1,250		1,300
KazMunayGas National Co. 144A 6.375%, 4/9/21⁽³⁾		1,200		1,441
Midcontinent Express Pipeline LLC 144A 6.700%, 9/15/19⁽³⁾		2,000		2,131
MIE Holdings Corp. 144A 9.750%, 5/12/16⁽³⁾		800		834
National JSC Naftogaz of Ukraine 9.500%, 9/30/14		1,350		1,379
OGX Austria GmbH 144A 8.375%, 4/1/22⁽³⁾		1,600		1,396
Petrobras International Finance Co. 6.750%, 1/27/41		2,750		3,417
Petroleos de Venezuela SA
Series 2014 4.900%, 10/28/14		1,720		1,557
RegS 8.500%, 11/2/17⁽⁴⁾		5,820		5,282
Petroleos Mexicanos 6.500%, 6/2/41		1,850		2,306
Quicksilver Resources, Inc. 7.125%, 4/1/16		1,735		1,492
Teekay Corp. 8.500%, 1/15/20		1,000		1,055
TNK-BP Finance S.A. 144A 7.250%, 2/2/20⁽³⁾		1,900		2,299
Venoco, Inc. 8.875%, 2/15/19		850		744

				42,716

Financials—39.9%
Agile Property Holdings Ltd. 144A 8.875%, 4/28/17⁽³⁾		830		845
Aircastle Ltd. 7.625%, 4/15/20		1,500		1,669
Alfa Bank OJSC (Alfa Bond Issuance plc)
144A 7.500%, 9/26/19⁽³⁾⁽⁷⁾		1,100		1,112
144A 7.750%, 4/28/21⁽³⁾⁽⁷⁾		925		984
Allstate Corp. 6.125%, 5/15/37⁽²⁾		2,500		2,575
ALROSA Finance SA 144A 7.750%, 11/3/20⁽³⁾		750		853
Alta Mesa Holdings LP (Alta Mesa Finance Services Corp.) 9.625%, 10/15/18		1,150		1,156
American International Group, Inc. 4.875%, 6/1/22		1,000		1,127
Banco ABC Brasil SA 144A 7.875%, 4/8/20⁽³⁾		800		859
Banco Bilbao Vizcaya Argentaria Bancomer SA 144A 6.500%, 3/10/21⁽³⁾		1,750		1,917
Banco Bradesco SA 144A 5.750%, 3/1/22⁽³⁾⁽⁶⁾		2,000		2,130
Banco Continental SA Via Continental Senior Trustees Cayman Ltd. RegS 5.500%, 11/18/20⁽⁴⁾⁽⁷⁾		2,000		2,150


	PAR VALUE			VALUE
Financials—(continued)
Banco de Credito del Peru 144A 5.375%, 9/16/20⁽³⁾	$	1,250		$	1,344
Banco do Brasil S.A.
RegS 5.375%, 1/15/21⁽⁴⁾⁽⁶⁾		525			557
144A 9.250%^(2)(3)(5)(6)		1,425			1,703
Banco Santander Chile 144A 3.875%, 9/20/22⁽³⁾		1,000			1,003
Banco Votorantim SA 144A 7.375%, 1/21/20⁽³⁾		1,900			2,128
Bancolombia SA 5.125%, 9/11/22		910			919
Bank of Georgia JSC 144A 7.750%, 7/5/17⁽³⁾		745			760
Barclays Bank plc 144A 6.050%, 12/4/17⁽³⁾		2,450			2,637
Braskem Finance Ltd. 144A 5.750%, 4/15/21⁽³⁾		2,200			2,332
Chubb Corp. (The) 6.375%, 3/29/67⁽²⁾		2,175			2,316
Corp Andina de Fomento 8.125%, 6/4/19		1,000			1,293
Eurasian Development Bank 144A 4.767%, 9/20/22⁽³⁾		1,000			1,014
First Niagara Financial Group, Inc. 7.250%, 12/15/21		1,400			1,609
First Tennessee Bank N.A. 5.650%, 4/1/16		1,100			1,188
Genworth Financial, Inc. 7.625%, 9/24/21		1,490			1,521
Goodman Funding Property Ltd. 144A 6.000%, 3/22/22⁽³⁾		1,000			1,074
GRD Holdings III Corp. 144A 10.750%, 6/1/19⁽³⁾		610			615
HSBC Finance Corp. 6.676%, 1/15/21		1,900			2,204
Hutchison Whampoa International Ltd.
Series 11, 144A 4.625%, 1/13/22⁽³⁾		450			492
Series 12 144A 6.000%⁽³⁾⁽⁵⁾		1,075			1,110
ING Bank NV 144A 5.000%, 6/9/21⁽³⁾		1,000			1,111
ING U.S., Inc. 144A 5.500%, 7/15/22⁽³⁾		1,210			1,263
International Lease Finance Corp. 5.875%, 8/15/22		2,310			2,387
Kazkommerts Bank International BV 144A 7.875%, 4/7/14⁽³⁾		1,850			1,841
Legg Mason, Inc. 144A 5.500%, 5/21/19⁽³⁾		225			241
Macquarie Group Ltd. 144A 7.625%, 8/13/19⁽³⁾		1,000			1,159
Morgan Stanley 144A 10.090%, 5/3/17⁽³⁾		4,850	^BRL		2,577
Nordea Bank AB 144A 4.250%, 9/21/22⁽³⁾		1,400			1,392
OAO Lukoil International Finance BV 144A 6.125%, 11/9/20⁽³⁾⁽⁷⁾		2,100			2,371
PKO Finance AB 144A 4.630%, 9/26/22⁽³⁾⁽⁷⁾		1,235			1,239
Progressive Corp. (The) 6.700%, 6/15/37⁽²⁾		2,160			2,333
Prudential Financial, Inc. 5.875%, 9/15/42⁽²⁾		2,500			2,562
Republic of Argentina Provincia de Neuquen 144A 7.875%, 4/26/21⁽³⁾		800			708


	PAR VALUE		VALUE
Financials—(continued)
Resona Bank Ltd. 144A 5.850%^(2)(3)(5)(6)	$	2,050	$	2,196
Reynolds Group Issuer, Inc. (Reynolds Group Issuer LLC)
9.000%, 4/15/19		1,050		1,076
7.875%, 8/15/19		1,000		1,085
Royal Bank of Scotland Group plc (The) 6.400%, 10/21/19		1,400		1,609
Santander U.S. Debt S.A.U. 144A 3.724%, 1/20/15⁽³⁾		1,590		1,578
Unipersonal 144A 3.781%, 10/7/15⁽³⁾		1,300		1,303
Sberbank of Russia (Sberbank CapItal SA) 144A 6.125%, 2/7/22⁽³⁾⁽⁷⁾		2,050		2,265
SLM Corp. 8.450%, 6/15/18		2,150		2,519
Spansion LLC 7.875%, 11/15/17		1,200		1,194
Springleaf Finance Corp. 5.400%, 12/1/15		1,000		903
Telecom Italia Capital SA 7.175%, 6/18/19		1,450		1,599
Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22⁽³⁾		1,095		1,103
UPCB Finance VI Ltd. VI 144A 6.875%, 1/15/22⁽³⁾		725		772
Vnesheconombank (VEB Finance plc) 144A 6.800%, 11/22/25⁽³⁾⁽⁷⁾		1,400		1,645
VTB Bank OJSC (VTB Capital SA) 144A 6.000%, 4/12/17⁽³⁾⁽⁷⁾		725		758
Zions Bancorp 4.500%, 3/27/17		1,250		1,291

				89,276

Health Care—1.3%
Hologic, Inc. 144A 6.250%, 8/1/20⁽³⁾		95		101
IASIS Healthcare LLC (IASIS Capital Corp.) 8.375%, 5/15/19		1,000		960
Kinetic Concepts, Inc. 144A 10.500%, 11/1/18⁽³⁾		850		903
Symbion, Inc. 8.000%, 6/15/16		1,000		1,030

				2,994

Industrials—13.8%
ADS Tactical, Inc. 144A 11.000%, 4/1/18⁽³⁾		900		902
America West Airlines, Inc. Pass-Through-Trust
Series 99-1, G 7.930%, 1/2/19		1,013		1,066
Series 00-1, G 8.057%, 7/2/20		1,287		1,370
Series 01-1, G 7.100%, 4/2/21		1,110		1,155
AWAS Aviation Capital Ltd. 144A 7.000%, 10/17/16⁽³⁾		728		775
Bombardier, Inc. 144A 5.750%, 3/15/22⁽³⁾		615		633


	PAR VALUE		VALUE
Industrials—(continued)
CDRT Holding Corp. PIK 144A 9.250%, 10/1/17⁽³⁾	$	725	$	703
Cemex Finance LLC 144A 9.500%, 12/14/16⁽³⁾		1,200		1,245
CHC Helicopter SA 9.250%, 10/15/20		1,150		1,187
Delta Airlines, Inc. Pass-Through-Trust
09-1, A 7.750%, 12/17/19		1,232		1,408
02-1, G-1 6.718%, 1/2/23		866		953
DP World Ltd. 144A 6.850%, 7/2/37⁽³⁾		1,000		1,078
Embraer SA 5.150%, 6/15/22		1,300		1,395
FTS International, LLC 144A 7.125%, 11/15/18⁽³⁾		500		535
Harland Clarke Holdings Corp. 144A 9.750%, 8/1/18⁽³⁾		330		317
Kratos Defense & Security Solutions, Inc. 10.000%, 6/1/17		1,000		1,085
Masco Corp. 5.950%, 3/15/22		1,500		1,644
McJunkin Red Man Corp. 9.500%, 12/15/16		850		921
Navistar, Inc. Tranche B, 7.000%, 8/17/17		100		101
Northwest Airlines Pass-Through-Trust 02-1, G2 6.264%, 11/20/21		1,348		1,423
Oshkosh Corp. 8.500%, 3/1/20		1,250		1,406
Severstal OAO (Steel Capital SA) 144A 6.250%, 7/26/16⁽³⁾⁽⁷⁾		1,150		1,205
Transnet SOC Ltd. 144A 4.000%, 7/26/22⁽³⁾		1,000		1,017
U.S. Airways Pass-Through-Trust
99-1A 8.360%, 1/20/19		558		609
11-1 A 7.125%, 10/22/23		984		1,073
UAL Pass-Through-Trust
09-2 9.750%, 1/15/17		2,551		2,921
07-01A 6.636%, 7/2/22		967		1,010
Voto-Votorantim Ltd. 144A 6.750%, 4/5/21⁽³⁾		1,500		1,740

				30,877

Information Technology—0.8%
First Data Corp. 12.625%, 1/15/21		1,100		1,146
Mirion Technologies, Inc. 6.250%, 3/30/18		746		750

				1,896

Materials—7.8%
ArcelorMittal 6.250%, 2/25/22		1,100		1,084
Ardagh Packaging Finance plc 144A 7.375%, 10/15/17⁽³⁾		1,100		1,185
Calumet Specialty Products Partners LP (Calumet Finance Corp.) 144A 9.625%, 8/1/20⁽³⁾		1,200		1,299
Cascades, Inc. 7.875%, 1/15/20		650		684


	PAR VALUE		VALUE
Materials—(continued)
Edgen Murray Corp. 12.250%, 1/15/15	$	800	$	858
FMG Resources Property Ltd. 144A 8.250%, 11/1/19⁽³⁾		1,050		1,024
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20⁽³⁾		1,150		1,328
Ineos Finance plc 144A 8.375%, 2/15/19⁽³⁾		1,175		1,241
JMC Steel Group 144A 8.250%, 3/15/18⁽³⁾		750		769
Mexichem SAB de CV 144A 4.875%, 9/19/22⁽³⁾		450		457
Momentive Performance Materials, Inc. 144A 10.000%, 10/15/20⁽³⁾		1,000		1,012
Pactiv LLC 8.125%, 6/15/17		1,500		1,477
Sappi Papier Holding GmbH 144A 6.625%, 4/15/21⁽³⁾		1,500		1,447
Severstal OAO (Steel Capital SA) 144A 6.700%, 10/25/17⁽³⁾⁽⁷⁾		900		967
United States Steel Corp. 7.500%, 3/15/22		840		834
Vedanta Resources plc 144A 9.500%, 7/18/18⁽³⁾		1,650		1,712

				17,378

Telecommunication Services—4.6%
CenturyLink, Inc. Series S, 6.450%, 6/15/21		1,600		1,809
Digicel Group Ltd. 144A 8.250%, 9/30/20⁽³⁾		930		981
Frontier Communications Corp. 8.125%, 10/1/18		835		944
Telefonica Emisiones, S.A.U. 5.462%, 2/16/21		660		647
Telemar Norte Leste SA 144A 5.500%, 10/23/20⁽³⁾		1,300		1,365
Vimpel Communications OJSC (VIP Finance Ireland Ltd.) 144A 7.748%, 2/2/21⁽³⁾⁽⁷⁾		1,000		1,071
WideOpenWest Finance LLC (WideOpenWest Capital Corp.) 144A 10.250%, 7/15/19⁽³⁾		1,000		1,060
Wind Acquisition Finance S.A.
144A 11.750%, 7/15/17⁽³⁾		750		711
144A 7.250%, 2/15/18⁽³⁾		430		408
Windstream Corp. 7.750%, 10/15/20		1,150		1,239

				10,235

Utilities—1.9%
AmeriGas Partners LP (AmeriGas Finance Corp.) 6.750%, 5/20/20		1,200		1,284
Calpine Corp. 144A 7.875%, 1/15/23⁽³⁾		850		943
Centrais Eletricas Brasileiras SA 144A 6.875%, 7/30/19⁽³⁾		850		1,013


	PAR VALUE			VALUE
Utilities—(continued)
NRG Energy, Inc. 7.875%, 5/15/21	$	925		$	1,011

					4,251

TOTAL CORPORATE BONDS AND NOTES (Identified Cost $208,901)					214,566

LOAN AGREEMENTS⁽²⁾—17.4%

Consumer Discretionary—6.9%
BJ’s Wholesale Club, Inc. Second Lien 9.750%, 3/29/19		217			220
Caesars Entertainment Operating Co., Inc. (Harrah’s Operating Company, Inc.) Tranche B- 4, 9.500%, 10/31/16		943			971
Cengage Learning Acquisitions, Inc. 2.470%, 7/3/14		1,191			1,139
Chrysler Group LLC (Chrysler Group Co-Issuer, Inc.) Tranche B, 6.000%, 5/24/17		893			913
Cumulus Media Holdings, Inc. Second Lien, 7.500%, 9/16/19		900			912
Fram Group Holdings, Inc. (Prestone Holdings, Inc.) Second Lien, 10.500%, 1/29/18		1,000			910
Gateway Casinos & Entertainment Ltd. Tranche B, 6.750%, 5/12/16		1,077	^CAD		1,088
Granite Broadcasting Corp. Tranche B 8.500%, 5/23/18		584			587
HD Supply, Inc. Tranche B, 7.250%, 10/12/17		870			900
HHI Holdings LLC 7.750%, 3/21/17		993			993
Hubbard Radio LLC Second Lien, 8.750%, 4/30/18		600			612
InVentiv Health, Inc. (Ventive Health, Inc.) 6.500%, 8/4/16		716			695
Landry’s, Inc. (Landry’s Restaurants, Inc.) Tranche B, 6.500%, 4/24/18		1,194			1,214
Radio One, Inc. 7.500%, 3/31/16		1,032			1,041
Seven Seas Cruises, Inc. Tranche B, 6.250%, 12/21/18		757			763
TI Group Automotive Systems LLC 0.000%, 3/14/18		476			479
Transtar Holding Co. Second Lien, 10.750%, 12/21/17		950			970
Visant Corp. (Jostens) Tranche B, 5.250%, 12/22/16		1,100			1,062

					15,469


	PAR VALUE		VALUE
Consumer Staples—0.5%
SuperValu, Inc. 0.000%, 8/30/18	$	1,117	$	1,126

Energy—1.2%
Chesapeake Energy Corp. 8.500%, 12/2/17		930		934
Frac Tech Services LLC 6.250%, 5/6/16		1,017		982
NGPL PipeCo LLC 6.750%, 9/15/17		810		827

				2,743

Financials—2.0%
Asurion LLC (Asurion Corp.) Second Lien, 9.000%, 5/24/19		401		416
Harland Clarke Holdings Corp. Tranche B-2 5.466%, 6/30/17		693		626
Homeward Residential, Inc. 8.250%, 8/8/17		987		1,002
iStar Financial, Inc. Tranche A-2, 7.000%, 3/19/17		1,500		1,529
Nuveen Investments, Inc. Second Lien, 8.250%, 2/28/19		333		337
Ocwen Financial Corp. 7.000%, 9/1/16		461		464

				4,374

Health Care—1.5%
AMN Healthcare, Inc. Tranche B, 6.000%, 4/5/18		862		876
Aveta, Inc.
(NAMM Holdings, Inc.) 8.500%, 4/4/17		300		303
(MMM Holdings, Inc.) 8.500%, 4/4/17		300		303
MModal, Inc. Tranche B, 6.750%, 8/16/19		1,100		1,093
National Specialty Hospitals, Inc. Tranche B, 8.250%, 2/3/17		898		884

				3,459

Industrials—1.4%
AWAS Finance Luxemborg S.A. 5.750%, 7/16/18		1,150		1,158
DynCorp International LLC 6.250%, 7/7/16		942		947
Husky Injection Molding System (Yukon Acquisition, Inc.) 5.750%, 7/2/18		1,073		1,084

				3,189

Information Technology—2.9%
Avaya, Inc. Tranche B-3, 4.927%, 10/26/17		1,191		1,090
Blue Coat Systems, Inc. First Lien, 7.500%, 2/15/18		770		777
Infor (US), Inc. (Lawson Software, Inc.) Tranche B 6.250%, 4/5/18		1,496		1,504
Mood Media Corp. First Lien 7.750%, 5/6/18		992		992


	PAR VALUE		VALUE
Information Technology—(continued)
Novell, Inc. (Attachmate Corp.) First Lien, 7.250%, 11/22/17	$	981	$	992
Oberthur Technologies, Inc. Tranche B-3, 6.250%, 11/30/18		560		556
Zayo Group LLC (Zayo Capital, Inc.) 7.125%, 7/2/19		579		585

				6,496

Materials—1.0%
Essar Steel Algoma, Inc. (Algoma Steel, Inc.) 8.750%, 9/20/14		1,320		1,333
Waupaca Foundry, Inc. 8.500%, 6/29/17		825		831

				2,164

TOTAL LOAN AGREEMENTS (Identified Cost $38,725)				39,020


	SHARES		VALUE
PREFERRED STOCK—0.9%

Financials—0.9%
General Electric Capital Corp.⁽²⁾⁽⁸⁾		1,100,000		1,161
U.S. Bancorp Series G 6.000%⁽²⁾		32,400		907

TOTAL PREFERRED STOCK (Identified Cost $1,925)				2,068

TOTAL LONG TERM INVESTMENTS—138.5% (Identified cost $303,128)				310,099

SHORT-TERM INVESTMENTS—0.2%

Money Market Mutual Funds—0.2%
Dreyfus Cash Management Fund-Institutional Shares (seven-day effective yield 0.060%)		378,111		378

TOTAL SHORT-TERM INVESTMENTS (Identified Cost $378)				378

TOTAL INVESTMENTS—138.7% (Identified Cost $3 03,506)				310,477	⁽¹⁾
Other assets and liabilities, net—(38.7)%				(86,634	)

NET ASSETS—100.0%			$	223,843

Abbreviations:

PIK	Payment-in-Kind Security

Footnote Legend:

⁽¹⁾	Federal Income Tax Information: For tax information at September 30, 2012, see Note 4 Federal Income Tax Information in the Notes to Schedules of Investments.

⁽²⁾	Variable or step coupon security; interest rate shown reflects the rate in effect at September 30, 2012.

⁽³⁾	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 September 30, 2012, these securities amounted to a value of $122,344 or 54.7% of net assets.

⁽⁴⁾	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.

⁽⁵⁾	No contractual maturity date

⁽⁶⁾	Interest payments may be deferred.

⁽⁷⁾	This note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁸⁾	Non-cummulative.


Foreign Currencies:
AUD		Australian Dollar
BRL		Brazilian Real
CAD		Canadian Dollar
EUR		European Currency Unit
MXN		Mexican Peso
NZD		New Zealand Dollar
PEN		Peruvian Nuevo Sol
PLZ		Polish Zloty
SEK		Swedish Krona
TRY		Turkish Lira
ZAR		South African Rand


Country Weightings †
United States	51	%
Brazil	5
Cayman Islands	5
Luxembourg	5
Ireland	3
Mexico	3
Venezuela	3
Other	25

Total	100	%

The following table provides a summary of inputs used to value the Fund’s investments as of September 30, 2012 (See Security Valuation Note 1A in the Notes to Schedules of Investments):

There was 1 security transferred from Level 3 into Level 2 during the period of 3/31/12 to 9/30/12. There are no Level 3 (significant unobservable input) priced securities held at the end of the period.

The following is a summary of significant accounting policies followed by the Fund in the preparation of its Schedule of Investments in conformity with accounting principals generally accepted in the United States of America 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.

Security valuation procedures for the Fund, which include, nightly price variance, as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Trustees (the “Board” or the “Trustees”). All internally fair valued securities are approved by a valuation committee (“Valuation Committee”) appointed by the Board. The Valuation Committee is comprised of the treasurer, assistant treasurer, secretary and chief compliance officer for the Fund. All internally fair valued securities, referred to below, are updated daily and reviewed in detail by the valuation committee monthly unless changes occur within the period. The valuation committee reviews the validity of the model inputs and any changes to the model. Fair valuations are ratified by the Board at least quarterly.

The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

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 the Fund calculates its net asset value (“NAV”) (generally, 4 p.m. Eastern time the close of the New York Stock Exchange (“NYSE”)) 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 the U.S. markets for investments such as ADRS, financial futures, ETFs and certain indexes as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Besause the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

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 which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured Debt Instruments such as mortgage-backed and asset-backed securities may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued by the valuation committee are generally categorized as Level 3 in the hierarchy.

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

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

A summary of the inputs used to value the Fund’s major categories of assets and liabilities, which primarily include investments of the Fund, 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.

Security transactions are recorded on the trade date. Dividend income is recorded 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. Realized gains and losses are determined on the identified cost basis.

In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as the Fund’s ability to repatriate such amounts.

High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield securities may be complex, and as a result, it may be more difficult for the adviser and/or subadviser to accurately predict risk.

The Fund may invest a high percentage of its assets in specific sectors of the market in its pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

At September 30, 2012, the Fund held securities issued by various companies in the financial sector, representing 37% of the total investments of the Fund.

Under the Trust’s organizational documents and related agreements, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business the Fund enters into contracts that provide a variety of indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund and that have not occurred. However, the Fund has not had prior claims or losses pursuant to these arrangements and expects the risk loss to be remote.

At September 30, 2012, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Fund were as follows:

Management has evaluated the impact of all subsequent events on the Funds through the date the Schedule of Investments was available for issuance, and has determined that there are no subsequent events requiring recognition or disclosure in the Notes to Schedule of Investments.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

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

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.

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)



By (Signature and Title)*				/s/ George R. Aylward
				George R. Aylward, President
				(principal executive officer)



By (Signature and Title)*				/s/ W. Patrick Bradley
				W. Patrick Bradley, Vice President, Chief Financial Officer, and Treasurer
				(principal financial officer)


	Total Value at September 30, 2012		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Debt Securities:
Asset-Backed Securities	$	6,763	$	—	$	6,763
Corporate Bonds And Notes		214,566		—		214,566
Foreign Government Securities		35,225		—		35,225
Loan Agreements		39,020		—		39,020
Mortgage-Backed Securities		10,304		—		10,304
Municipal Bonds		2,153		—		2,153
Equity Securities:
Preferred Stock		2,068		907		1,161
Short-Term Investments		378		378		—

Total Investments	$	310,477	$	1,285	$	309,192


Date		11/28/12


Date		11/28/12


Date		11/28/12