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—0.9%

California—0.6%
San Diego Tobacco Settlement Revenue Funding Corp. Bond Taxable 7.125%, 6/1/32	$	689		$	586
State of California Build America Bond Taxable 7.500%, 4/1/34		570			724

					1,310


Illinois—0.3%
State of Illinois Build America Bond Taxable 6.900%, 3/1/35		700			700
TOTAL MUNICIPAL BONDS (Identified Cost $2,037)					2,010

FOREIGN GOVERNMENT SECURITIES—15.6%

Argentine Republic PIK Interest Capitalization, 5.77% interest, 2.510% PIK, 12/31/33⁽¹¹⁾		1,765			1,139
Bolivarian Republic of Venezuela RegS 5.750%, 2/26/16⁽⁴⁾		570			516
RegS 12.750%, 8/23/22⁽⁴⁾		390			390
RegS 8.250%, 10/13/24⁽⁴⁾		570			432
Commonwealth of Australia Series 125 6.250%, 6/15/14		1,165	^AUD		1,116
New South Wales Treasury Corp. Series 17 5.500%, 3/1/17		435	^AUD		436
Commonwealth of Canada 2.000%, 3/1/14		765	^CAD		746
Commonwealth of New Zealand Series 415, 6.000%, 4/15/15		1,400	^NZD		1,214
Dominican Republic 144A 5.875%, 4/18/24⁽³⁾		1,000			932
Federative Republic of Brazil 8.500%, 1/5/24		3,460	^BRL		1,410
Hellenic Republic 2.000%, 2/24/23⁽²⁾		410	^EUR		347
2.000%, 2/24/27⁽²⁾		850	^EUR		616
Kingdom of Morocco 144A 4.250%, 12/11/22⁽³⁾		795			724
Kingdom of Norway Series 21 Treasury Bill, 0.000%, 12/18/13		2,215	^NOK		367
Mongolia 144A 4.125%, 1/5/18⁽³⁾		800			734
Provincia de Neuquen 144A 7.875%, 4/26/21⁽³⁾		752			714
Republic of Croatia 144A 6.375%, 3/24/21⁽³⁾		1,420			1,466
Republic of Iceland 144A 5.875%, 5/11/22⁽³⁾		1,180			1,213
Republic of Indonesia Series FR30, 10.750%, 5/15/16		6,120,000	^IDR		571
Series FR63, 5.625%, 5/15/23		7,482,000	^IDR		523


	PAR VALUE			VALUE
Republic of Korea Treasury Bond, Series 1403, 4.750%, 3/10/14	$	800,000	^KOR	$	751
Republic of Peru 144A 7.840%, 8/12/20⁽³⁾		875	^PEN		364
RegS 6.900%, 8/12/37⁽⁴⁾		1,700	^PEN		637
Republic of Poland Series 0414, 5.750%, 4/25/14		9,300	^PLZ		3,030
Republic of Portugal Treasury Obligation 4.950%, 10/25/23		395	^EUR		467
Republic of Slovak 144A 4.375%, 5/21/22⁽³⁾		1,235			1,274
Republic of South Africa Series R206, 7.500%, 1/15/14		14,400	^ZAR		1,443
Republic of Turkey 9.000%, 3/5/14		2,465	^TRY		1,227
Republic of Uruguay 4.375%, 12/15/28		24,404	^UYU(9)		1,188
Russian Federation 144A 7.850%, 3/10/18⁽³⁾		55,000	^RUB		1,759
Series 6207 8.150%, 2/3/27		34,830	^RUB		1,125
United Mexican States Series M, 6.000%, 6/18/15		35,100	^MXN		2,780
Series M, 6.500%, 6/9/22		19,000	^MXN		1,503
TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $35,923)					33,154

MORTGAGE-BACKED SECURITIES—3.1%

Non-Agency—3.1%
Banc of America Alternative Loan Trust 03-2, CB3 5.750%, 4/25/33		749			807
Bear Stearns Commercial Mortgage Securities, Inc. 05-PW10, AM 5.449%, 12/11/40⁽²⁾		1,000			1,072
07-PW18, AM 6.084%, 6/11/50⁽²⁾		1,400			1,559
Credit Suisse First Boston Mortgage Securities Corp. 04-CF2, 1M1, 144A 5.250%, 1/25/43⁽²⁾⁽³⁾		716			776
Extended Stay America Trust 13-ESHM, M 144A 7.625%, 12/5/19⁽³⁾		1,100			1,125
JPMorgan Chase Commercial Mortgage Securities Trust 07-LDP10, AM 5.464%, 1/15/49⁽²⁾		820			824
Washington Mutual Commercial Mortgage Securities Trust 06-SL1, A, 144A 5.424%, 11/23/43⁽³⁾		333			329
TOTAL MORTGAGE-BACKED SECURITIES (Identified Cost $6,477)					6,492


	PAR VALUE			VALUE
ASSET-BACKED SECURITIES—4.6%
AABS Ltd. 13-1, A 4.875%, 1/10/38⁽²⁾	$	479		$	480
Chase Funding Trust 02-2, 1A5 6.333%, 4/25/32⁽²⁾		957			979
CIT Group Home Equity Loan Trust 03-1, A5 4.980%, 7/20/34⁽²⁾		1,450			1,456
Dominos Pizza Master Issuer LLC 12-1A, A2, 144A 5.216%, 1/25/42⁽³⁾		1,466			1,575
Drug Royalty LP I 12-1, A2, 144A 5.800%, 7/15/24⁽³⁾		839			861
Fairway Outdoor Funding LLC 12-1A, A2, 144A 4.212%, 10/15/42⁽³⁾		468			467
GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35⁽²⁾		1,580			1,570
Orange Lake Timeshare Trust 12-AA, B 144A 4.870%, 3/10/27⁽³⁾		696			712
Residential Asset Mortgage Trust 04-RZ1, M1 4.820%, 3/25/34⁽²⁾		772			758
Security National Mortgage Loan Trust 04-1A, AF3, 144A 6.420%, 6/25/32⁽²⁾⁽³⁾		1,227			989
TOTAL ASSET-BACKED SECURITIES (Identified Cost $9,746)					9,847

CORPORATE BONDS—98.4%

Consumer Discretionary—6.2%
Arcelik AS 144A 5.000%, 4/3/23⁽³⁾		470			406
Arcos Dorados Holdings, Inc. 144A 10.250%, 7/13/16⁽³⁾		1,115	^BRL		498
6.625%, 9/27/23⁽³⁾		600			594
Bon-Ton Department Stores, Inc. (The) 8.000%, 6/15/21		615			578
Boyd Gaming Corp. 9.000%, 7/1/20		325			354
Brookfield Residential Properties, Inc. 144A 6.500%, 12/15/20⁽³⁾		960			970
Caesars Entertainment Operating Co., Inc. 8.500%, 2/15/20		1,050			969
Cencosud SA 144A 4.875%, 1/20/23⁽³⁾		410			388
Chrysler Group LLC (Chrysler Group, Inc.) 8.250%, 6/15/21		950			1,069
Clear Channel Communications, Inc. 9.000%, 3/1/21		1,250			1,216
Grupo Televisa SAB 7.250%, 5/14/43		8,000	^MXN		516
Hot Topic, Inc. 144A 9.250%, 6/15/21⁽³⁾		475			490


	PAR VALUE			VALUE

Consumer Discretionary—(continued)
KOC Holding AS 144A 3.500%, 4/24/20⁽³⁾	$	1,110		$	945
Nara Cable Funding Ltd. 144A 8.875%, 12/1/18⁽³⁾		725			769
Pittsburgh Glass Works LLC 144A 8.500%, 4/15/16⁽³⁾		1,100			1,136
SACI Falabella 144A 6.500%, 4/30/23⁽³⁾		466,500	^CLP		861
Sirius XM Radio, Inc. 144A 4.250%, 5/15/20⁽³⁾		815			764
Toll Brothers Finance Corp. 6.750%, 11/1/19		615			683

					13,206


Consumer Staples—0.5%
Chiquita Brands International, Inc. 144A 7.875%, 2/1/21⁽³⁾		800			852
Cosan Luxembourg SA 144A 5.000%, 3/14/23⁽³⁾		300			271

					1,123


Energy—18.3%
Afren plc 144A 10.250%, 4/8/19⁽³⁾		925			1,064
Alta Mesa Holdings LP 9.625%, 10/15/18		1,150			1,219
Calumet Specialty Products Partners LP (Calumet Finance Corp.) 9.625%, 8/1/20		1,200			1,332
CHC Helicopter SA 9.250%, 10/15/20		1,150			1,230
Chesapeake Energy Corp. 5.375%, 6/15/21		815			817
Dolphin Energy Ltd. 144A 5.500%, 12/15/21⁽³⁾		2,000			2,192
Ecopetrol SA 5.875%, 9/18/23		640			666
Energy XXI Gulf Coast, Inc. 144A 7.500%, 12/15/21⁽³⁾		805			797
EP Energy LLC 9.375%, 5/1/20		575			650
Expro Finance Luxembourg SCA 144A 8.500%, 12/15/16⁽³⁾		100			105
Forest Oil Corp. 7.250%, 6/15/19		1,450			1,457
Gazprom OAO (Gaz Capital SA) 144A 6.510%, 3/7/22⁽³⁾⁽⁷⁾		1,100			1,177
144A 4.950%, 2/6/28⁽³⁾⁽⁷⁾		1,300			1,151
GeoPark Latin America Ltd. (Agencia en Chile) 144A 7.500%, 2/11/20⁽³⁾		1,020			1,025
Gulfmark Offshore, Inc. 6.375%, 3/15/22		1,700			1,708
Hercules Offshore, Inc. 144A 10.250%, 4/1/19⁽³⁾		625			703
KazMunayGas National Co. JSC 144A 5.750%, 4/30/43⁽³⁾		300			263
Linn Energy LLC 144A 6.750%, 11/1/19⁽³⁾		975			924
Memorial Production Partners LP 7.625%, 5/1/21		700			681
Midcontinent Express Pipeline LLC 144A 6.700%, 9/15/19⁽³⁾		2,000			2,058


	PAR VALUE			VALUE
Energy—(continued)
MIE Holdings Corp. 144A 9.750%, 5/12/16⁽³⁾	$	800		$	824
OAO Lukoil International Finance BV 144A 6.125%, 11/9/20⁽³⁾⁽⁷⁾		1,100			1,172
Pertamina Persero PT 144A 4.875%, 5/3/22⁽³⁾		895			812
Petrobras International Finance Co. 6.750%, 1/27/41		3,275			3,167
Petroleos de Venezuela SA Series 2014 4.900%, 10/28/14		1,720			1,623
RegS 8.500%, 11/2/17⁽⁴⁾		5,820			5,287
QGOG Constellation SA 144A 6.250%, 11/9/19⁽³⁾		955			910
Quicksilver Resources, Inc. 7.125%, 4/1/16		615			587
Sabine Pass Liquefaction LLC 144A 5.625%, 2/1/21⁽³⁾		675			664
Teekay Corp. 8.500%, 1/15/20		1,000			1,075
Transportadora de Gas del Peru SA 144A 4.250%, 4/30/28⁽³⁾		800			692
Venoco, Inc. 8.875%, 2/15/19		850			861

					38,893

Financials—42.5%
Aircastle Ltd. 7.625%, 4/15/20		1,500			1,665
Akbank TAS 144A 7.500%, 2/5/18⁽³⁾		1,145	^TRY		515
Alfa Bank OJSC (Alfa Bond Issuance plc)
144A 7.500%, 9/26/19⁽³⁾⁽⁷⁾		1,100			1,141
144A 7.750%, 4/28/21⁽³⁾⁽⁷⁾		925			985
Allstate Corp. (The) 5.750%, 8/15/53⁽²⁾⁽⁶⁾		2,460			2,399
ALROSA Finance SA 144A 7.750%, 11/3/20⁽³⁾		750			836
Banco ABC Brasil SA 144A 7.875%, 4/8/20⁽³⁾		800			804
Banco Bilbao Vizcaya Argentaria Bancomer SA 144A 6.500%, 3/10/21⁽³⁾		1,750			1,820
Banco Bradesco SA 144A 5.750%, 3/1/22⁽³⁾⁽⁶⁾		2,000			1,970
Banco Continental SA Via Continental Senior Trustees Cayman Ltd. RegS 5.500%, 11/18/20⁽⁴⁾⁽⁷⁾		2,000			2,020
Banco de Credito e Inversiones 144A 4.000%, 2/11/23⁽³⁾		1,860			1,695
Banco do Brasil SA
RegS 5.375%, 1/15/21⁽⁴⁾		525			510
144A 9.250%, 10/31/49^(2)(3)(5)(6)		1,425			1,518
Banco Santander Brasil SA 144A 8.000%, 3/18/16⁽³⁾		600	^BRL		250
Banco Santander Chile 144A 3.875%, 9/20/22⁽³⁾		1,750			1,619
Banco Votorantim SA 144A 7.375%, 1/21/20⁽³⁾		1,900			1,971


	PAR VALUE			VALUE
Financials—(continued)
Bancolombia SA 5.125%, 9/11/22	$	1,220		$	1,113
Bank of Georgia JSC 144A 7.750%, 7/5/17⁽³⁾		745			767
Barclays Bank plc 144A 6.050%, 12/4/17⁽³⁾		2,450			2,722
Braskem Finance Ltd. 144A 5.750%, 4/15/21⁽³⁾		2,200			2,156
Brazil Loan Trust 1 144A 5.477%, 7/24/23⁽³⁾		1,100			1,130
Carlyle Holdings Finance LLC 144A 3.875%, 2/1/23⁽³⁾		810			792
Chubb Corp. (The) 6.375%, 3/29/67⁽²⁾		2,175			2,333
Corp Andina de Fomento 8.125%, 6/4/19		1,000			1,222
CorpGroup Banking SA 144A 6.750%, 3/15/23⁽³⁾		1,000			855
Country Garden Holdings Co., Ltd. 144A 7.250%, 4/4/21⁽³⁾		1,000			996
Credit Bank of Moscow 144A 7.700%, 2/1/18⁽³⁾⁽⁷⁾		220			228
Development Bank of Kazakhstan JSC 144A 4.125%, 12/10/22⁽³⁾		845			780
ESAL GmbH 144A 6.250%, 2/5/23⁽³⁾		980			870
Eurasian Development Bank 144A 4.767%, 9/20/22⁽³⁾		1,600			1,496
First Niagara Financial Group, Inc. 7.250%, 12/15/21		1,400			1,629
Genworth Holdings, Inc. 4.900%, 8/15/23		1,060			1,065
GRD Holdings III Corp. 144A 10.750%, 6/1/19⁽³⁾		610			650
HSBC Finance Corp. 6.676%, 1/15/21		1,900			2,170
Hutchison Whampoa International Ltd. Series 12, 144A 6.000%^(2)(3)(5)(6)		1,560			1,640
ING (U.S.), Inc. 5.500%, 7/15/22		1,210			1,303
ING Bank NV 144A 5.000%, 6/9/21⁽³⁾		1,000			1,074
International Lease Finance Corp.
3.875%, 4/15/18		195			189
5.875%, 8/15/22		2,310			2,275
Itau Unibanco Holding SA RegS 5.650%, 3/19/22⁽⁴⁾		900			858
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42⁽³⁾		800			807
Lukoil International Finance BV 144A 4.563%, 4/24/23⁽³⁾		800			744
Macquarie Group Ltd.
144A 7.625%, 8/13/19⁽³⁾		1,000			1,179
144A 6.250%, 1/14/21⁽³⁾		325			353
Morgan Stanley 144A 10.090%, 5/3/17⁽³⁾		6,050	^BRL		2,634
Nomos Bank Via Nomos Capital plc 144A 7.250%, 4/25/18⁽³⁾⁽⁷⁾		1,000			1,005
Nordea Bank AB 144A 4.250%, 9/21/22⁽³⁾		2,035			2,012


	PAR VALUE		VALUE
Financials—(continued)
PKO Finance AB 144A 4.630%, 9/26/22⁽³⁾⁽⁷⁾	$	1,805	$	1,772
Progressive Corp. (The) 6.700%, 6/15/37⁽²⁾		2,160		2,311
Prudential Financial, Inc.
5.875%, 9/15/42⁽²⁾		2,500		2,450
5.200%, 3/15/44⁽²⁾⁽⁶⁾		205		186
Resona Bank Ltd. 144A 5.850%^(2)(3)(5)(6)		2,050		2,194
Royal Bank of Scotland Group plc (The) 6.400%, 10/21/19		1,400		1,600
Russian Agricultural Bank OJSC (RSHB Capital SA)
144A 5.298%, 12/27/17⁽³⁾		850		873
144A 5.100%, 7/25/18⁽³⁾⁽⁷⁾		750		760
Santander U.S. Debt S.A.U. 144A 3.724%, 1/20/15⁽³⁾		1,590		1,613
Unipersonal 144A 3.781%, 10/7/15⁽³⁾		1,300		1,326
Sberbank of Russia (Sberbank CapItal SA)
144A 6.125%, 2/7/22⁽³⁾⁽⁷⁾		2,050		2,147
144A 5.125%, 10/29/22⁽³⁾⁽⁷⁾		800		746
Severstal OAO Via Steel Capital SA 144A 5.900%, 10/17/22⁽³⁾⁽⁷⁾		2,200		2,120
SLM Corp. 5.500%, 1/25/23		2,670		2,446
Spansion LLC 7.875%, 11/15/17		1,200		1,257
Telecom Italia Capital SA 7.175%, 6/18/19		725		797
TMK OAO Via (TMK Capital) SA 144A 6.750%, 4/3/20⁽³⁾⁽⁷⁾		965		919
Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22⁽³⁾		1,095		1,007
UPCB Finance Ltd. Series VI 144A 6.875%, 1/15/22⁽³⁾		725		772
Vnesheconombank (VEB Finance plc) 144A 6.800%, 11/22/25⁽³⁾⁽⁷⁾		1,400		1,481
VTB Bank OJSC (VTB Capital SA) 144A 6.000%, 4/12/17⁽³⁾⁽⁷⁾		725		763

				90,305

Health Care—0.5%
inVentiv Health, Inc. 144A 9.000%, 1/15/18⁽³⁾		320		323
Valeant Pharmaceuticals International, Inc. Escrow Corp. 144A 7.500%, 7/15/21⁽³⁾		590		639

				962

Industrials—11.4%
AAR Corp. 144A 7.250%, 1/15/22⁽³⁾		710		744


	PAR VALUE			VALUE
Industrials—(continued)
ADS Tactical, Inc. 144A 11.000%, 4/1/18⁽³⁾	$	900		$	819
ADT Corp. (The) 144A 6.250%, 10/15/21⁽³⁾		920			935
Air Canada Pass-Through-Trust 13-1, B 144A 5.375%, 5/15/21⁽³⁾		374			361
America West Airlines Pass-Through-Trust
99-1, G 7.930%, 1/2/19		912			976
00-1, G 8.057%, 7/2/20		1,086			1,178
01-1, G 7.100%, 4/2/21		1,030			1,090
American Airlines Pass-Through-Trust 13-1, A 144A 4.000%, 7/15/25⁽³⁾		1,640			1,537
Automotores Gildemeister SA
144A 8.250%, 5/24/21⁽³⁾		690			597
144A 6.750%, 1/15/23⁽³⁾		240			188
Bharti Airtel International Netherlands BV 144A 5.125%, 3/11/23⁽³⁾		805			728
Builders FirstSource, Inc. 144A 7.625%, 6/1/21⁽³⁾		800			802
Delta Air Lines Pass-Through-Trust
09-1, A 7.750%, 12/17/19		1,071			1,244
02-1, G-1 6.718%, 1/2/23		829			906
DP World Ltd. 144A 6.850%, 7/2/37⁽³⁾		1,000			1,005
Embraer SA 5.150%, 6/15/22		1,300			1,261
FTS International, LLC 144A 8.125%, 11/15/18⁽³⁾		441			481
Hellenic Railways 5.460%, 1/30/14		945	^EUR		1,234
Northwest Airlines Pass-Through-Trust 02-1, G2 6.264%, 11/20/21		1,205			1,242
Odebrecht Finance Ltd. 144A 8.250%, 4/25/18⁽³⁾		350	^BRL		131
Transnet SOC Ltd. 144A 4.000%, 7/26/22⁽³⁾		1,000			882
U.S. Airways Pass-Through-Trust 11-1 A 7.125%, 10/22/23		911			999
UAL Pass-Through-Trust
09-2 9.750%, 1/15/17		2,108			2,398
07-01, A 6.636%, 7/2/22		913			950
Voto-Votorantim Ltd. 144A 6.750%, 4/5/21⁽³⁾		1,500			1,605

					24,293

Information Technology—3.1%
Ceridian Corp. 144A 11.000%, 3/15/21⁽³⁾		35			41
First Data Corp.
11.250%, 3/31/16		1,021			1,026
12.625%, 1/15/21		1,100			1,215
144A 11.750%, 8/15/21⁽³⁾		2,270			2,202
QVC, Inc. 5.125%, 7/2/22		690			679


	PAR VALUE			VALUE

Information Technology—(continued)
Sensata Technologies BV 144A 4.875%, 10/15/23⁽³⁾	$	970		$	907
VeriSign, Inc. 144A 4.625%, 5/1/23⁽³⁾		475			449

					6,519


Materials—8.9%
Alpek SA de C.V. 144A 5.375%, 8/8/23⁽³⁾		1,230			1,218
Ardagh Packaging Finance plc 144A 7.000%, 11/15/20⁽³⁾		300			289
Cascades, Inc. 7.875%, 1/15/20		650			689
Cemex SAB de CV 144A 9.500%, 6/15/18⁽³⁾		695			773
Corp Nacional del Cobre de Chile 144A 3.750%, 11/4/20⁽³⁾		940			934
Eldorado Gold Corp. 144A 6.125%, 12/15/20⁽³⁾		415			403
EuroChem Mineral & Chemical Co. OJSC 144A 5.125%, 12/12/17⁽³⁾⁽⁷⁾		425			425
Evraz Group SA 144A 6.500%, 4/22/20⁽³⁾		775			716
FMG Resources Property Ltd. 144A 8.250%, 11/1/19⁽³⁾		1,050			1,137
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20⁽³⁾		1,600			1,704
Hexion U.S. Finance Corp.
8.875%, 2/1/18		730			759
6.625%, 4/15/20		720			724
Ineos Finance plc 144A 8.375%, 2/15/19⁽³⁾		1,175			1,300
Inversiones CMPC SA 144A 4.375%, 5/15/23⁽³⁾		1,000			930
Mexichem SAB de CV 144A 4.875%, 9/19/22⁽³⁾		450			436
Sappi Papier Holding GmbH 144A 6.625%, 4/15/21⁽³⁾		1,500			1,410
Sealed Air Corp. 144A 6.500%, 12/1/20⁽³⁾		185			195
Tronox Finance LLC 6.375%, 8/15/20		805			801
United States Steel Corp. 6.875%, 4/1/21		965			982
Vale Overseas Ltd. 4.375%, 1/11/22		1,315			1,267
Vedanta Resources plc 144A 9.500%, 7/18/18⁽³⁾		1,650			1,819

					18,911


Telecommunication Services—4.4%
America Movil SAB de CV Series 12 6.450%, 12/5/22		8,000	^MXN		572
Axtel SAB de CV 144A 7.000%, 1/31/20⁽²⁾⁽³⁾		360			340
CenturyLink, Inc. Series S, 6.450%, 6/15/21		1,600			1,600
Cincinnati Bell, Inc. 8.375%, 10/15/20		650			693
Frontier Communications Corp. 7.125%, 1/15/23		915			922
Koninklijke KPN NV 144A 7.000%, 3/28/73^(2)(3)(6)		955			962


	PAR VALUE			VALUE

Telecommunication Services—(continued)
Telefonica Emisiones, S.A.U. 5.462%, 2/16/21	$	660		$	676
Vimpel Communications OJSC 144A 7.748%, 2/2/21⁽³⁾⁽⁷⁾		1,000			1,080
Wind Acquisition Finance S.A.
144A 11.750%, 7/15/17⁽³⁾		750			798
144A 7.250%, 2/15/18⁽³⁾		430			447
Windstream Corp. 7.750%, 10/15/20		1,150			1,193

					9,283


Utilities—2.6%
AmeriGas Partners LP (AmeriGas Finance Corp.) 6.750%, 5/20/20		1,200			1,281
Calpine Corp. 144A 7.875%, 1/15/23⁽³⁾		764			808
Electricite de France SA 144A 5.250% ^(2)(3)(5)(6)		1,325			1,253
Enel SpA 144A 8.750%, 9/24/73⁽²⁾⁽³⁾		380			386
Israel Electric Corp Ltd 144A 6.875%, 6/21/23⁽³⁾		725			757
NRG Energy, Inc. 7.875%, 5/15/21		925			994

					5,479
TOTAL CORPORATE BONDS (Identified Cost $211,476)					208,974

LOAN AGREEMENTS⁽²⁾—16.2%

Consumer Discretionary—4.8%
BJ’s Wholesale Club, Inc. Second Lien, 9.750%, 3/26/20		217			222
Caesars Entertainment Operating Co., Inc. (Harrah’s Operating Company, Inc.) Tranche B-4, 9.500%, 10/31/16		933			933
CBAC Borrower LLC Tranche B, 8.250%, 7/2/20		300			310
Cumulus Media Holdings, Inc. Second Lien, 7.500%, 9/16/19		872			886
EB Sports Corp. 11.500%, 12/31/15		500			499
Fram Group Holdings, Inc. (Prestone Holdings, Inc.) Second Lien, 10.500%, 1/29/18		1,000			972
Gateway Casinos & Entertainment Ltd. Tranche B, 7.500%, 5/12/16		949	^CAD		922
Granite Broadcasting Corp. Tranche B First Lien 6.750%, 5/23/18		536			540
Landry’s, Inc. (Landry’s Restaurant, Inc.) Tranche B, 4.750%, 4/24/18		1,173			1,183
Merrill Communications LLC Tranche B, 8.500%, 3/8/18		990			997


	PAR VALUE		VALUE

Consumer Discretionary—(continued)
Peppermill Casinos, Inc. Tranche B, 7.250%, 11/9/18	$	636	$	649
Radio One, Inc. Tranche 2011, 7.500%, 3/31/16		1,021		1,047
Shingle Springs Tribal Gaming Authority 6.250%, 8/29/19		487		487
TWCC Holding Corp. Second Lien, 7.000%, 6/26/20		566		582

				10,229


Consumer Staples—0.2%
Supervalu, Inc. 5.000%, 3/21/19		372		372


Energy—1.5%
Fieldwood Energy LLC 0.000%, 9/30/20⁽⁸⁾		578		577
FTS International, Inc. (Frac Tech International LLC) 8.500%, 5/6/16		1,017		1,000
NGPL Pipeco LLC 6.750%, 9/15/17		760		681
Sabine Oil & Gas LLC Second Lien, 8.750%, 12/31/18		825		831

				3,089


Financials—0.9%
Altisource Portfolio Solutions S.A.R.L Tranche B, 5.750%, 11/27/19		366		370
Capital Automotive LP Second Lien, 6.000%, 4/30/20		73		75
iStar Financial, Inc. Tranche A-2, 7.000%, 3/19/17		1,404		1,442

				1,887


Health Care—0.7%
Ardent Medical Services, Inc. First Lien, 6.750%, 7/2/18		271		273
Second Lien, 11.000%, 1/2/19		225		231
InVentiv Health, Inc. (Ventive Health, Inc.) 7.500%, 8/4/16		547		530
MMM Holdings, Inc. 9.750%, 12/12/17		254		255
MSO of Puerto Rico, Inc. 9.750%, 12/12/17		184		185

				1,474


Industrials—2.9%
AWAS Finance Luxemborg SA Tranche 2012, 3.500%, 7/16/18		1,094		1,098
Commercial Barge Line Co. First Lien 7.500%, 9/22/19		801		781
DynCorp International, Inc. 6.750%, 7/7/16		823		830


	PAR VALUE			VALUE

Industrials—(continued)
HD Supply, Inc. 4.500%, 10/12/17	$	859		$	861
Husky Injection Molding 4.250%, 7/2/18		1,030			1,033
Mirion Technologies, Inc. 5.750%, 3/30/18		734			733
Navistar, Inc. Tranche B, 5.750%, 8/17/17		507			514
SESAC Holding Co. II LLC First Lien, 6.000%, 2/7/19		301			303

					6,153


Information Technology—4.6%
Alcatel-Lucent U.S.A., Inc. 5.750%, 1/30/19		851			858
Avaya, Inc. Tranche B-3, 4.762%, 10/26/17		1,177			1,057
Blue Coat Systems, Inc.
4.500%, 5/31/19		890			894
Second Lien 9.500%, 6/28/20		500			504
Deltek, Inc. Second Lien, 10.000%, 10/10/19		777			784
IPC Systems, Inc. Tranche C, First Lien, 7.750%, 7/31/17		861			844
Kronos, Inc. Second Lien, 9.750%, 4/30/20		640			664
Mood Media Corp. First Lien, 7.000%, 5/6/18		590			592
Novell, Inc. (Attachmate Corp.) First Lien, 7.250%, 11/22/17		792			795
Oberthur Technologies Finance SAS Tranche B-3, 0.002%, 11/30/18		554			557
RP Crown Parent LLC Second Lien, 11.250%, 12/21/19		722			738
Sorenson Communications, Inc. 9.500%, 10/31/14		1,134			1,147
Wall Street Systems Holdings, Inc. Second Lien, 9.250%, 10/25/20		339			342

					9,776


Materials—0.6%
Essar Steel Algoma, Inc. (Algoma Steel, Inc.) Second Lien, 8.750%, 9/19/14		1,307			1,331
TOTAL LOAN AGREEMENTS (Identified Cost $34,231)					34,311

	SHARES			VALUE

PREFERRED STOCK⁽²⁾—2.7%

Financials—2.7%
General Electric Capital Corp. Series C, 5.25%		600,000	⁽¹⁰⁾		556
Series B 6.25%		500,000	⁽¹⁰⁾		505
JPMorgan Chase & Co., Series Q, 5.15%		960,000	⁽¹⁰⁾		845


	SHARES			VALUE
Financials—(continued)
PNC Financial Services Group, Inc. (The) Series R, 4.85%		890,000	⁽¹⁰⁾	$	765
U.S. Bancorp Series G 6.00%		32,400			873
Wells Fargo & Co. Series K, 7.98%		840,000	⁽¹⁰⁾		924
Zions Bancorp, 6.95%		47			1,202

TOTAL PREFERRED STOCK (Identified Cost $5,922)					5,670

TOTAL LONG TERM INVESTMENTS—141.5% (Identified cost $305,812)					300,458


SHORT-TERM INVESTMENTS—1.2%

Money Market Mutual Funds—1.2%
Fidelity Money Market Portfolio - Institutional Shares (Seven-day effective yield 0.090%)		2,592,035			2,592

TOTAL SHORT-TERM INVESTMENTS (Identified Cost $2,592)					2,592


TOTAL INVESTMENTS—142.7% (Identified Cost $308,404)					303,050	⁽¹⁾
Other assets and liabilities, net—(42.7)%					(90,634	)

NET ASSETS—100.0%				$	212,416


Abbreviations:

PIK		Payment-in-Kind Security

Footnote Legend:
⁽¹⁾		Federal Income Tax Information: For tax information at September 30, 2013, see Note 3 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, 2013.
⁽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, 2013, these securities amounted to a value of $135,894 or 64.0% 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⁾		This loan will settle after September 30, 2013, at which time the interest rate, based on the London Interbank Offered Rate (“LIBOR”) and the agreed upon spread on trade date, will be reflected.
⁽⁹⁾		Principal amount is adjusted according to local inflation Index.
⁽¹⁰⁾		Value shown as par value (not reported in thousands).
⁽¹¹⁾		69.7% of the income received was in cash and 30.3% in PIK.

Foreign Currencies:
AUD		Australian Dollar

The following table provides a summary of inputs used to value the Fund’s investments as of September 30, 2013 (See Security Valuation Note 1A in the Notes to Schedules of Investments):

The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.

^(a) “Transfers into and/or from” represent the ending value as of September 30, 2013, for any investment security where a change in the pricing level occurred from the beginning to 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, and two other appropriate investment professionals of the Virtus Product Management team who previously have been identified to the Board. All internally fair valued securities 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 any model inputs and any changes to the model. Fair valuations are reviewed 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.

Ÿ Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Ÿ 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 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. 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 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 (“OTC”) 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.

Short-term notes having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market and are generally categorized as Level 2 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.

Investments are generally considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Series. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are noted as such in each Series’ Schedule of Investments, where applicable.

Restricted securities are not registered under the Securities Act of 1933 as amended. Generally, 144A securities are excluded from this category, except where defined as illiquid.

At September 30, 2013, the Fund did not hold any illiquid and restricted securities.

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

At September 30, 2013,, 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.


Investments in Securities	Asset-Backed Securities
Balance as of September 30, 2012:	$	—
Accrued discount/(premium)		—	^(c)
Realized gain (loss)		—	^(c)
Change in unrealized appreciation (depreciation)		(4	)
Purchases		502
Sales^(b)		(18	)
Transfers into Level 3^(a)		—
Transfers from Level 3^(a)		—

Balance as of September 30, 2013	$	480


Federal Tax Cost	Unrealized Appreciation		Unrealized (Depreciation)			Net Appreciation (Depreciation)
$308,340	$	5,550	$	(10,840	)	$	(5,290	)



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, Senior Vice President, Chief Financial Officer, and Treasurer
		(principal financial officer)


BRL		Brazilian Real
CAD		Canadian Dollar
CLP		Chilean Peso
EUR		European Currency Unit
IDR		Indonesian Rupiah
KOR		Korean Won
MXN		Mexican Peso
NOK		Norwegian Krone
NZD		New Zealand Dollar
PEN		Peruvian Nuevo Sol
PLZ		Polish Zloty
RUB		Russian Ruble
TRY		Turkish Lira
UYU		Uruguayan Peso
ZAR		South African Rand


Country Weightings †
United States	46	%
Luxembourg	6
Brazil	5
Cayman Islands	4
Mexico	3
United Kingdom	3
Venezuela	3
Other	30
Total	100	%


	Total Value at September 30, 2013		Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs
Debt Securities:
Asset-Backed Securities	$	9,847	$	—	$	9,367	$	480
Corporate Bonds		208,974		—		208,974		—
Foreign Government Securities		33,154		—		33,154		—
Loan Agreements		34,311		—		34,311		—
Mortgage-Backed Securities		6,492		—		6,492		—
Municipal Bonds		2,010		—		2,010		—
Equity Securities:
Preferred Stock		5,670		2,075		3,595		—
Short-Term Investments		2,592		2,592		—		—
Total Investments	$	303,050	$	4,667	$	297,903	$	480


Date		11/27/2013


Date		11/27/2013


Date		11/27/2013