Edgar Filing: Virtus Global Multi-Sector Income Fund

London Interbank Offered Rate

Payment-in-Kind Security

Real Estate Investment Trust

Virtus Global Multi-Sector 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 811-22608

Virtus Global Multi-Sector Income Fund

(Exact name of registrant as specified in charter)

101 Munson Street

Greenfield, MA 01301-9683

(Address of principal executive offices) (Zip code)

William Renahan, Esq.

Vice President, Chief Legal Officer and Secretary for Registrant

100 Pearl Street

Hartford, CT 06103-4506

(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: August 31, 2018

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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments.

The Schedules of Investments are attached herewith.

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE			VALUE

U.S. GOVERNMENT SECURITIES—3.4%

U.S. Treasury Note

1.375%, 4/30/20		$ 680			$ 666

2.375%, 1/31/23		1,800			1,772

2.250%, 8/15/27		3,125			2,975

TOTAL U.S. GOVERNMENT SECURITIES (Identified Cost $5,397)					5,413


MUNICIPAL BONDS—1.0%

California—0.5%

State of California Build America Bond Taxable 7.500%, 4/1/34		570			801


Illinois—0.5%

State of Illinois Build America Bond Taxable 6.900%, 3/1/35		700			752

TOTAL MUNICIPAL BONDS (Identified Cost $1,480)					1,553


FOREIGN GOVERNMENT SECURITIES—20.6%

Argentine Republic

7.500%, 4/22/26		710			586

6.875%, 1/26/27		545			426

Series NY, 8.280%, 12/31/33		1,269			1,060

7.125%, 7/6/36		365			266

Bermuda RegS 4.854%, 2/6/24⁽³⁾		700			724

Bolivarian Republic of Venezuela RegS 7.650%, 4/21/25^(3)(10)		1,380			338

Dominican Republic

144A, 6.875%, 1/29/26⁽²⁾		155			167

144A, 6.000%, 7/19/28⁽²⁾		800			814

144A, 6.850%, 1/27/45⁽²⁾		800			806

Federal Republic of Nigeria

12.500%, 1/22/26		215,000	^NGN		526

144A, 6.500%, 11/28/27⁽²⁾		455			423

144A, 7.625%, 11/28/47⁽²⁾		440			399

Federative Republic of Brazil

12.500%, 1/5/22		625	^BRL		170

Notas do Tesouro Nacional Series F, 10.000%, 1/1/23		2,560	^BRL		614

10.000%, 1/1/25		940	^BRL		217

10.250%, 1/10/28		2,325	^BRL		600


	PAR VALUE			VALUE

Kingdom of Bahrain 144A 7.000%, 10/12/28⁽²⁾		$ 795			$ 743

Kingdom of Jordan 144A 5.750%, 1/31/27⁽²⁾		1,085			1,010

Kingdom of Morocco 144A 5.500% 12/11/42⁽²⁾		800			848

Provincia de Buenos Aires

144A, 9.125%, 3/16/24⁽²⁾		405			342

144A, 7.875%, 6/15/27⁽²⁾		1,165			845

Republic of Angola 144A 9.375%, 5/8/48⁽²⁾		370			371

Republic of Armenia 144A 7.150%, 3/26/25⁽²⁾		700			737

Republic of Chile 5.500%, 8/5/20		547,000	^CLP		828

Republic of Colombia

Treasury Note Series B, 11.250%, 10/24/18		998,500	^COP		333

4.375%, 3/21/23		1,588,000	^COP		493

Republic of Costa Rica

RegS, 7.000%, 4/4/44⁽³⁾		1,000			953

144A, 7.000%, 4/4/44⁽²⁾		800			762

Republic of Ecuador 144A 8.875%, 10/23/27⁽²⁾		870			792

Republic of Indonesia

FR63, 5.625%, 5/15/23		7,482,000	^IDR		462

FR70, 8.375%, 3/15/24		7,721,000	^IDR		529

144A, 8.500%, 10/12/35⁽²⁾		1,290			1,798

Republic of Philippines 9.500%, 2/2/30		1,220			1,802

Republic of South Africa

Series 2023, 7.750%, 2/28/23		10,000	^ZAR		664

4.300%, 10/12/28		525			462

5.650%, 9/27/47		955			853

Republic of Turkey

6.250%, 9/26/22		340			306

7.375%, 2/5/25		420			383

4.875%, 10/9/26		2,185			1,704

4.875%, 4/16/43		935			622

Republic of Uruguay 5.100%, 6/18/50		500			509

Russian Federation Series 6216 6.700%, 5/15/19		78,125	^RUB		1,154

Sultanate of Oman

144A, 5.375%, 3/8/27⁽²⁾		1,240			1,181

144A, 5.625%, 1/17/28⁽²⁾		760			728

Ukraine

144A, 7.750%, 9/1/23⁽²⁾		785			761

144A, 7.750%, 9/1/26⁽²⁾		1,335			1,227

United Mexican States
Series M, 6.500%, 6/9/22		9,038	^MXN		452

4.150%, 3/28/27		520			513


TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $38,470)					33,303

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE		VALUE

MORTGAGE-BACKED SECURITIES—14.8%

Agency—3.8%

Federal National Mortgage Association

Pool #MA2471, 3.500%, 12/1/45		$ 974		$ 970

Pool #AS6311, 3.500%, 12/1/45		441		439

Pool #BC9083, 3.000%, 12/1/46		1,168		1,131

Pool #MA2959, 3.500%, 4/1/47⁽⁴⁾		1,560		1,551

Pool #AS9393, 4.000%, 4/1/47		408		416

Pool #MA3121, 4.000%, 9/1/47		1,567		1,596


				6,103

Non-Agency—11.0%

American Homes 4 Rent Trust 2014-SFR2, C 144A 4.705%, 10/17/36⁽²⁾		770		800

Ameriquest Mortgage Securities, Inc. Pass-Through Certificates, 2003-AR3, M4, (3 month LIBOR minus 5.850%) 3.329%, 6/25/33⁽¹⁾		743		739

AMSR Trust 2016-SFR1, D 144A, (1 month LIBOR + 2.400%) 4.460%, 11/17/33⁽¹⁾⁽²⁾		665		668

Bayview Opportunity Master Fund IVa Trust

2016-SPL1, B1 144A, 4.250%, 4/28/55⁽²⁾		540		550

2017-SPL5, B1 144A, 4.000%, 6/28/57⁽¹⁾⁽²⁾		130		131

Bayview Opportunity Master Fund IVb Trust 2016-SPL2, B1 144A 4.250%, 6/28/53⁽¹⁾⁽²⁾		385		392

Caesars Palace Las Vegas Trust 2017-VICI, C 144A 4.138%, 10/15/34⁽²⁾		425		428

CIT Home Equity Loan Trust 2003-1, A5 5.480%, 7/20/34		732		741

Cold Storage Trust 2017-ICE3, A 144A, (1 month LIBOR + 1.000%) 3.063%, 4/15/36⁽¹⁾⁽²⁾		1,200		1,204

COLT Mortgage Loan Trust Funding LLC 2018-1, A1 144A 2.930%, 2/25/48⁽¹⁾⁽²⁾		371		369

Credit Suisse Commercial Mortgage-Backed Trust 2006-8, 3A1 6.000%, 10/25/21		127		116

GAHR Commercial Mortgage Trust 2015-NRF, CFX 144A 3.495%, 12/15/34⁽¹⁾⁽²⁾		525		524

GSAA Home Equity Trust 2005-12, AF3W 4.999%, 9/25/35⁽¹⁾		292		295

Home Equity Loan Trust 2007-HSA3, AI4 6.110%, 6/25/37⁽¹⁾		462		462

JPMorgan Chase Mortgage Trust

2014-5, B2 144A, 2.988%, 10/25/29⁽¹⁾⁽²⁾		232		218

2016-1, M2 144A, 3.750%, 4/25/45⁽¹⁾⁽²⁾		260		257


	PAR VALUE		VALUE

Non-Agency—(continued)

2016-2, M2 144A, 3.750%, 12/25/45⁽¹⁾⁽²⁾		$ 246		$ 243

2017-5, A1 144A, 3.172%, 10/26/48⁽¹⁾⁽²⁾		564		558

Motel 6 Trust 2017-MTL6, A 144A, (1 month LIBOR + 0.920%) 2.983%, 8/15/34⁽¹⁾⁽²⁾		1,184		1,184

New Residential Mortgage Loan Trust 2016-4A, B1A 144A 4.500%, 11/25/56⁽¹⁾⁽²⁾		533		546

Oak Hill Advisors Residential Loan Trust 2017- NPL2, A1 144A 3.000%, 7/25/57⁽²⁾		1,130		1,112

One Market Plaza Trust 2017-1MKT, A 144A 3.614%, 2/10/32⁽²⁾		520		520

Pretium Mortgage Credit Partners I LLC 2017- NPL5, A1 144A 3.327%, 12/30/32⁽¹⁾⁽²⁾		198		197

Progress Residential Trust 2018-SFR2, B 144A 3.841%, 8/17/35⁽²⁾		530		532

Towd Point Mortgage Trust

2015-6, M1 144A, 3.750%, 4/25/55⁽¹⁾⁽²⁾		275		275

2017-1, M1 144A, 3.750%, 10/25/56⁽¹⁾⁽²⁾		265		263

2017-6, A2 144A, 3.000%, 10/25/57⁽¹⁾⁽²⁾		260		245

2018-4, A1 144A, 3.000%, 6/25/58⁽¹⁾⁽²⁾		485		472

2015-2, 1M1 144A, 3.250%, 11/25/60⁽¹⁾⁽²⁾		1,665		1,616

Vericrest Opportunity Loan Trust LXIV LLC 2017- NP11, A1 144A 3.375%, 10/25/47⁽²⁾		894		890

Verus Securitization Trust 2018-2, A1 144A 3.677%, 6/1/58⁽¹⁾⁽²⁾		450		450

VSD 2017-PLT1, A 3.600%, 12/25/43		128		128

Wells Fargo Commercial Mortgage Trust 2015- LC20, B 3.719%, 4/15/50		690		674


				17,799

TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $24,102)				23,902

ASSET-BACKED SECURITIES—8.1%

Automobiles—4.1%

ACC Trust 2018-1, B 144A 4.820%, 5/20/21⁽²⁾		470		470

CarNow Auto Receivables Trust 2016-1A, D 144A 7.340%, 11/15/21⁽²⁾		640		645

Drive Auto Receivables Trust 2017-2, C 2.750%, 9/15/23		790		789

Exeter Automobile Receivables Trust 2014-3A, D 144A 5.690%, 4/15/21⁽²⁾		790		803

Flagship Credit Auto Trust 2016-3, D 144A 3.890%, 11/15/22⁽²⁾		785		787

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


Automobiles—(continued)

GLS Auto Receivables Trust

2017-1A, C 144A, 3.500%, 7/15/22⁽²⁾	$ 790	$ 786

2018-1A, B 144A, 3.520%, 8/15/23⁽²⁾	760	758

Hertz Vehicle Financing II LP 2016-4A, A 144A 2.650%, 7/25/22⁽²⁾	790	769

Skopos Auto Receivables Trust 2018-1A, B 144A 3.930%, 5/16/22⁽²⁾	790	788


		6,595


Other—4.0%

Aqua Finance Trust 2017-A, A 144A 3.720%, 11/15/35⁽²⁾	631	619

Conn’s Receivables Funding LLC 2017-B, B 144A 4.520%, 4/15/21⁽²⁾	655	659

DB Master Finance LLC 2017-1A, A2I 144A 3.629%, 11/20/47⁽²⁾	655	644

Diamond Resorts Owner Trust 2017-1A, A 144A 3.270%, 10/22/29⁽²⁾	402	400

Drug Royalty III LP 1 2016-1A, A 144A 3.979%, 4/15/27⁽²⁾	441	441

HOA Funding LLC 2014-1A, A2 144A 4.846%, 8/20/44⁽²⁾	731	720

Oportun Funding VIII LLC 2018-A, A 144A 3.610%, 3/8/24⁽²⁾	605	602

TGIF Funding LLC 2017-1A, A2 144A 6.202%, 4/30/47⁽²⁾	639	640

Upstart Securitization Trust 2018-1, B 144A 3.887%, 8/20/25⁽²⁾	475	474

Wendy’s Funding LLC

2015-1A, A2II 144A, 4.080%, 6/15/45⁽²⁾	763	768

2018-1A, A2I 144A, 3.573%, 3/15/48⁽²⁾	522	508


		6,475

TOTAL ASSET-BACKED SECURITIES (Identified Cost $13,099)		13,070

CORPORATE BONDS AND NOTES—68.9%

Consumer Discretionary—7.3%

American Axle & Manufacturing, Inc. 6.250%, 3/15/26	35	34

Beazer Homes USA, Inc.

6.750%, 3/15/25	195	182

5.875%, 10/15/27	375	320

Boyd Gaming Corp. 6.000%, 8/15/26	135	136


	PAR VALUE			VALUE
Consumer Discretionary—(continued)

Charter Communications Operating LLC 4.908%, 7/23/25	$	655		$	668

Clear Channel Worldwide Holdings, Inc. Series B 7.625%, 3/15/20		365			366

Discovery Communications LLC 3.950%, 3/20/28		775			737

DISH DBS Corp.

5.875%, 7/15/22		355			341

7.750%, 7/1/26		330			298

Dollar Tree, Inc. 4.000%, 5/15/25		337			333

Downstream Development Authority of The Quapaw Tribe of Oklahoma 144A 10.500%, 2/15/23⁽²⁾		140			140

frontdoor, Inc. 144A 6.750%, 8/15/26⁽²⁾		415			425

Gateway Casinos & Entertainment Ltd. 144A 8.250%, 3/1/24⁽²⁾		495			525

GLP Capital LP 5.250%, 6/1/25		410			426

Graham Holdings Co. 144A 5.750%, 6/1/26⁽²⁾		650			665

Grupo Televisa SAB

4.625%, 1/30/26		525			535

7.250%, 5/14/43		8,000	^MXN		300

iHeartCommunications, Inc. 9.000%, 12/15/19⁽¹⁰⁾		255			189

Lear Corp. 3.800%, 9/15/27		600			566

Lennar Corp. 4.750%, 11/29/27		640			610

M/I Homes, Inc. 5.625%, 8/1/25		450			422

Marriott Ownership Resorts, Inc. 144A 6.500%, 9/15/26⁽²⁾		315			321

McGraw-Hill Global Education Holdings LLC 144A 7.875%, 5/15/24⁽²⁾		425			374

MDC Holdings, Inc. 5.500%, 1/15/24		545			542

Meredith Corp. 144A 6.875%, 2/1/26⁽²⁾		315			319

Neiman Marcus Group Ltd. 144A 8.000%, 10/15/21⁽²⁾		360			244

QVC, Inc. 5.125%, 7/2/22		690			704

Vista Outdoor, Inc. 5.875%, 10/1/23		530			519

William Lyon Homes, Inc. 144A 6.000%, 9/1/23⁽²⁾		610			589


					11,830


Consumer Staples—1.6%

BAT Capital Corp. 144A 3.557%, 8/15/27⁽²⁾		535			501

Kronos Acquisition Holdings, Inc. 144A 9.000%, 8/15/23⁽²⁾		390			357

Safeway, Inc. 7.250%, 2/1/31		520			495

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE		VALUE
Consumer Staples—(continued)

Sigma Finance Netherlands BV 144A 4.875%, 3/27/28⁽²⁾		$ 880		$ 859

Tops Holding LLC 144A 8.000%, 6/15/22^(2)(10)		480		279


				2,491

Energy—14.8%

Afren plc

144A, 10.250%, 4/8/19^(2)(10)(13)		635		—⁽¹⁵⁾

144A, 6.625%, 12/9/20^(2)(10)(13)		732		—⁽¹⁵⁾

Alta Mesa Holdings LP 7.875%, 12/15/24		315		309

American Midstream Partners LP 144A 9.250%, 12/15/21⁽²⁾		245		242

Anadarko Petroleum Corp. 6.600%, 3/15/46		390		469

Bristow Group, Inc. 144A 8.750%, 3/1/23⁽²⁾		210		201

Callon Petroleum Co. 6.125%, 10/1/24		495		506

Cheniere Corpus Christi Holdings LLC 7.000%, 6/30/24		495		548

Chesapeake Energy Corp. 8.000%, 6/15/27		555		562

Citgo Holding, Inc. 144A 10.750%, 2/15/20⁽²⁾		295		315

Continental Resources, Inc. 4.500%, 4/15/23		260		266

Denbury Resources, Inc.

144A, 9.250%, 3/31/22⁽²⁾		419		448

144A, 7.500%, 2/15/24⁽²⁾		225		229

Ecopetrol S.A. 5.375%, 6/26/26		695		718

Encana Corp. 8.125%, 9/15/30		280		362

EP Energy LLC

144A, 9.375%, 5/1/24⁽²⁾		235		185

144A, 8.000%, 11/29/24⁽²⁾		350		351

144A, 7.750%, 5/15/26⁽²⁾		205		210

Fermaca Enterprises S de RL de CV 144A 6.375%, 3/30/38⁽²⁾⁽⁴⁾		1,281		1,309

Geopark Ltd. 144A 6.500%, 9/21/24⁽²⁾		595		594

Jagged Peak Energy LLC 144A 5.875%, 5/1/26⁽²⁾		550		542

KazMunayGas National Co. JSC 144A 4.750%, 4/19/27⁽²⁾		1,015		1,009

Kinder Morgan, Inc. 7.750%, 1/15/32⁽⁴⁾		980		1,216

Lukoil International Finance BV

144A, 6.125%, 11/9/20⁽²⁾⁽⁷⁾		1,100		1,141

144A, 4.563%, 4/24/23⁽²⁾		400		393

Nabors Industries, Inc.

5.500%, 1/15/23		355		354

144A, 5.750%, 2/1/25⁽²⁾		245		236


	PAR VALUE		VALUE
Energy—(continued)

Odebrecht Offshore Drilling Finance Ltd. PIK Interest Capitalization, 144A 7.720%, 12/1/26^(2)(16)	$	994	$	268

Odebrecht Oil & Gas Finance Ltd. 144A 0.000%⁽²⁾⁽⁵⁾		154		1

Petrobras Global Finance BV 7.375%, 1/17/27		1,505		1,492

Petroleos de Venezuela S.A. 144A 6.000%, 5/16/24^(2)(10)		1,820		346

Petroleos Mexicanos

4.875%, 1/24/22		250		251

6.500%, 6/2/41		1,360		1,245

6.375%, 1/23/45		1,515		1,357

PTTEP Treasury Center Co., Ltd. 144A 4.875% ⁽²⁾⁽⁵⁾		383		383

Range Resources Corp. 4.875%, 5/15/25		650		622

Sanchez Energy Corp. 144A 7.250%, 2/15/23⁽²⁾		135		131

Sinopec Group Overseas Development 2017 Ltd. 144A 3.625%, 4/12/27⁽²⁾		800		771

State Oil Co. of the Azerbaijan Republic RegS 6.950%, 3/18/30⁽³⁾		780		822

Sunoco LP

144A, 5.500%, 2/15/26⁽²⁾		170		163

144A, 5.875%, 3/15/28⁽²⁾		150		144

Transocean, Inc.

144A, 9.000%, 7/15/23⁽²⁾		290		313

6.800%, 3/15/38		185		152

Transportadora de Gas del Peru SA 144A 4.250%, 4/30/28⁽²⁾		1,350		1,331

Vine Oil & Gas LP 144A 8.750%, 4/15/23⁽²⁾		430		415

Weatherford International Ltd. 9.875%, 2/15/24		170		161

YPF S.A. 144A 6.950%, 7/21/27⁽²⁾		835		683


				23,766

Financials—18.9%

Acrisure LLC 144A 7.000%, 11/15/25⁽²⁾		620		595

Africa Finance Corp. 144A 4.375%, 4/29/20⁽²⁾		800		799

Allstate Corp. (The) Series B 5.750%, 8/15/53⁽⁴⁾⁽⁶⁾		1,446		1,507

Apollo Management Holdings LP 144A 4.000%, 5/30/24⁽²⁾		785		787

Ares Finance Co., LLC 144A 4.000%, 10/8/24⁽²⁾⁽⁴⁾		830		786

Australia & New Zealand Banking Group Ltd. 144A 4.400%, 5/19/26⁽²⁾		755		747

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE			VALUE

Financials—(continued)

Banco Bilbao Vizcaya Argentaria Bancomer S.A.

144A, 6.500%, 3/10/21⁽²⁾⁽⁴⁾		$ 900			$ 941

144A, 5.125%, 1/18/33⁽²⁾		700			640

Banco de Bogota S.A. 144A 6.250%, 5/12/26⁽²⁾		560			582

Banco de Credito e Inversiones 144A 3.500%, 10/12/27⁽²⁾		1,335			1,224

Banco Internacional del Peru SAA Interbank 144A 6.625%, 3/19/29⁽²⁾		1,085			1,176

Banco Nacional de Comercio Exterior SNC 144A 4.375%, 10/14/25⁽²⁾		510			502

Banco Santander Chile 144A 3.875%, 9/20/22⁽²⁾⁽⁴⁾		900			900

Bancolombia S.A. 5.125%, 9/11/22		1,220			1,249

Bank of China Hong Kong Ltd. 144A 5.550%, 2/11/20⁽²⁾		780			803

Bank of Montreal 3.803%, 12/15/32		1,064			1,000

Brighthouse Financial, Inc. 3.700%, 6/22/27		660			589

BrightSphere Investment Group plc 4.800%, 7/27/26⁽⁴⁾		675			658

Development Bank of Kazakhstan JSC 144A 8.950%, 5/4/23⁽²⁾		105,000^KZ	^T		283

Discover Bank 4.682%, 8/9/28		630			630

Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21⁽²⁾⁽⁴⁾		925			930

E*TRADE Financial Corp. 4.500%, 6/20/28		600			606

Fairfax Financial Holdings Ltd. 144A 4.850%, 4/17/28⁽²⁾		650			650

FS Investment Corp. 4.750%, 5/15/22		225			224

Goldman Sachs Group, Inc. (The), (3 month LIBOR + 1.170%) 3.484%, 5/15/26⁽¹⁾		575			572

Grupo de Inversiones Suramericana S.A. 144A 5.500%, 4/29/26⁽²⁾		755			781

Guanay Finance Ltd. 144A 6.000%, 12/15/20⁽²⁾		1,022			1,025

ICAHN Enterprises LP 6.375%, 12/15/25		630			638

ING Groep N.V. 6.000% ⁽⁵⁾⁽⁶⁾		615			610

Jefferies Group LLC 4.850%, 1/15/27		180			178

Kazakhstan Temir Zholy National Co. JSC 144A 4.850%, 11/17/27⁽²⁾		1,435			1,415

Nuveen Finance LLC 144A 4.125%, 11/1/24⁽²⁾		985			981

Santander Holdings USA, Inc. 4.400%, 7/13/27		660			642

Sberbank of Russia 144A 5.500%, 2/26/24⁽²⁾⁽⁷⁾		650			643

Springleaf Finance Corp. 7.125%, 3/15/26		290			289

Synchrony Financial 3.950%, 12/1/27		925			843


	PAR VALUE		VALUE

Financials—(continued)

Teachers Insurance & Annuity Association of America 144A 4.375%, 9/15/54⁽²⁾⁽⁴⁾		$ 640		$ 639

Tempo Acquisition LLC 144A 6.750%, 6/1/25⁽²⁾		600		584

Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22⁽²⁾		435		359

Turkiye Vakiflar Bankasi TAO 144A 5.625%, 5/30/22⁽²⁾		855		627

Ukreximbank Via Biz Finance plc 144A 9.625%, 4/27/22⁽²⁾		870		885


				30,519


Health Care—3.9%

Avantor, Inc.

144A, 6.000%, 10/1/24⁽²⁾		260		264

144A, 9.000%, 10/1/25⁽²⁾		405		418

Bausch Health Cos., Inc.

144A, 6.500%, 3/15/22⁽²⁾		55		57

144A, 7.000%, 3/15/24⁽²⁾		65		69

144A, 5.500%, 11/1/25⁽²⁾		525		524

144A, 9.250%, 4/1/26⁽²⁾		155		164

Bayer US Finance II LLC 144A 3.875%, 12/15/23⁽²⁾		685		685

Becton Dickinson & Co. 3.700%, 6/6/27		600		574

Centene Corp. 144A 5.375%, 6/1/26⁽²⁾		160		165

Concordia International Corp. 144A 9.000%, 4/1/22⁽²⁾		160		146

DJO Finco, Inc. 144A 8.125%, 6/15/21⁽²⁾		245		253

Eagle Holding Co. II, LLC PIK Interest Capitalization, 144A 7.625%, 5/15/22⁽²⁾⁽¹¹⁾		300		304

HLF Financing S.a.r.l. LLC 144A 7.250%, 8/15/26⁽²⁾		620		629

Mylan NV 3.950%, 6/15/26		600		569

Surgery Center Holdings, Inc.

144A, 8.875%, 4/15/21⁽²⁾		405		422

144A, 6.750%, 7/1/25⁽²⁾		70		67

Tenet Healthcare Corp.

8.125%, 4/1/22		140		148

7.000%, 8/1/25		570		569

Teva Pharmaceutical Finance Netherlands III BV 3.150%, 10/1/26		365		302


				6,329

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE		VALUE

Industrials—4.8%

Alfa SAB de CV 144A 5.250%, 3/25/24⁽²⁾		$ 910	$	926

Ashtead Capital, Inc. 144A 4.375%, 8/15/27⁽²⁾		705		679

Bombardier, Inc. 144A 6.125%, 1/15/23⁽²⁾		430		433

DP World Ltd. 144A 6.850%, 7/2/37⁽²⁾		1,000		1,174

Hulk Finance Corp. 144A 7.000%, 6/1/26⁽²⁾		495		475

JSL Europe S.A. 144A 7.750%, 7/26/24⁽²⁾		675		598

Latam Finance Ltd. 144A 6.875%, 4/11/24⁽²⁾		585		571

New Enterprise Stone & Lime Co., Inc. 144A 10.125%, 4/1/22⁽²⁾		45		48

Oshkosh Corp. 4.600%, 5/15/28		752		755

Pitney Bowes, Inc. 4.375%, 5/15/22		757		690

Topaz Marine S.A. 144A 9.125%, 7/26/22⁽²⁾		440		446

Transnet SOC Ltd. 144A 4.000%, 7/26/22⁽²⁾		1,000		939


				7,734


Information Technology—2.0%

Banff Merger Sub, Inc. 144A 9.750%, 9/1/26⁽²⁾		70		70

Citrix Systems, Inc. 4.500%, 12/1/27⁽⁴⁾		630		612

Dell International LLC

144A, 5.450%, 6/15/23⁽²⁾		135		142

144A, 8.100%, 7/15/36⁽²⁾		255		301

Jabil, Inc. 3.950%, 1/12/28		655		626

Rackspace Hosting, Inc. 144A 8.625%, 11/15/24⁽²⁾		280		276

Radiate Holdco LLC

144A, 6.875%, 2/15/23⁽²⁾		65		63

144A, 6.625%, 2/15/25⁽²⁾		615		575

VMware, Inc. 3.900%, 8/21/27		627		593


				3,258

Materials—8.9%

AK Steel Corp. 7.500%, 7/15/23		275		287

Alpek SAB de C.V. 144A 5.375%, 8/8/23⁽²⁾		1,000		1,019

Anglo American Capital plc 144A 4.000%, 9/11/27⁽²⁾⁽⁴⁾		970		894

ArcelorMittal 6.125%, 6/1/25		595		648

BHP Billiton Finance USA Ltd. 144A 6.750%^(2)(5)(6)		635		697

CPG Merger Sub LLC 144A 8.000%, 10/1/21⁽²⁾		435		442

Equate Petrochemical BV 144A 4.250%, 11/3/26⁽²⁾		790		778

Fibria Overseas Finance Ltd. 4.000%, 1/14/25		789		726

FMG Resources August 2006 Pty Ltd. 144A 5.125%, 3/15/23⁽²⁾		280		274

GTL Trade Finance, Inc. 144A 5.893%, 4/29/24⁽²⁾		840		844

Hexion, Inc. 6.625%, 4/15/20		360		341


	PAR VALUE			VALUE

Materials—(continued)

Inversiones CMPC S.A. 144A 4.375%, 5/15/23⁽²⁾		$ 1,000		$	1,002

James Hardie International Finance DAC 144A 5.000%, 1/15/28⁽²⁾		515			484

Kraton Polymers LLC 144A 7.000%, 4/15/25⁽²⁾		440			454

NOVA Chemicals Corp.

144A, 4.875%, 6/1/24⁽²⁾		245			239

144A, 5.000%, 5/1/25⁽²⁾		490			473

OCP SA 144A 5.625%, 4/25/24⁽²⁾		1,500			1,541

Rusal Capital Designated Activity Co. 144A 5.125%, 2/2/22⁽²⁾		910			573

Severstal OAO Via Steel Capital S.A. 144A 5.900%, 10/17/22⁽²⁾⁽⁷⁾		1,100			1,125

Syngenta Finance N.V.

144A, 4.441%, 4/24/23⁽²⁾		355			356

144A, 4.892%, 4/24/25⁽²⁾		250			249

Teck Resources Ltd. 144A 8.500%, 6/1/24⁽²⁾		125			137

Trident Merger Sub, Inc. 144A 6.625%, 11/1/25⁽²⁾		345			326

United States Steel Corp. 6.250%, 3/15/26		485			483


					14,392


Real Estate—1.9%

EPR Properties

4.750%, 12/15/26		260			257

4.500%, 6/1/27		395			381

Hospitality Properties Trust 4.500%, 3/15/25		745			731

MPT Operating Partnership LP

5.500%, 5/1/24		140			142

5.000%, 10/15/27		270			264

Physicians Realty LP 4.300%, 3/15/27		655			639

Select Income REIT 4.500%, 2/1/25		690			670


					3,084


Telecommunication Services—3.4%

Altice Luxembourg S.A. 144A 7.625%, 2/15/25⁽²⁾		590			545

America Movil SAB de C.V. 6.450%, 12/5/22		8,000	^MXN		382

Axtel SAB de C.V. 144A 6.375%, 11/14/24⁽²⁾		600			583

Cincinnati Bell, Inc. 144A 7.000%, 7/15/24⁽²⁾		630			554

Digicel Group Ltd. 144A 8.250%, 9/30/20⁽²⁾		520			391

Frontier Communications Corp.

8.500%, 4/15/20		195			197

7.625%, 4/15/24		570			359

144A, 8.500%, 4/1/26⁽²⁾		175			165

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)



	PAR VALUE		VALUE

Telecommunication Services—(continued)

Sprint Corp.

7.875%, 9/15/23	$ 145	$	156

7.625%, 3/1/26	170		179

Sprint Spectrum Co. LLC 144A 5.152%, 3/20/28⁽²⁾	485		485

Telenet Finance Luxembourg Notes S.a.r.l. 144A 5.500%, 3/1/28⁽²⁾	800		748

West Corp. 144A 8.500%, 10/15/25⁽²⁾	145		132

Windstream Services LLC

144A, 10.500%, 6/30/24⁽²⁾	255		204

144A, 8.625%, 10/31/25⁽²⁾	385		359

			5,439


Utilities—1.4%

Eskom Holdings SOC Ltd. 144A 7.125%, 2/11/25⁽²⁾	200		189

Ferrellgas Partners LP 8.625%, 6/15/20	125		123

Perusahaan Listrik Negara PT 144A 4.125%, 5/15/27⁽²⁾	950		896

State Grid Overseas Investment 2014 Ltd. 144A 4.125%, 5/7/24⁽²⁾	620		629

TerraForm Power Operating LLC 144A 5.000%, 1/31/28⁽²⁾	450		421

			2,258

TOTAL CORPORATE BONDS AND NOTES (Identified Cost $116,311)			111,100


LEVERAGED LOANS⁽¹⁾—17.5%

Aerospace—0.3%

TransDigm, Inc.
Tranche G, (1 month LIBOR + 2.500%) 4.576%, 8/22/24	272		272
Tranche E, (1 month LIBOR + 2.500%) 4.576%, 5/30/25	200		199

			471


Chemicals—0.4%

New Arclin U.S. Holding Corp. First Lien, (3 month LIBOR + 3.500%) 5.834%, 2/14/24	149		150

Omnova Solutions, Inc. Tranche B-2, (1 month LIBOR + 3.250%) 5.326%, 8/25/23	449		450

			600


	PAR VALUE		VALUE

Consumer Durables—0.3%

Global Appliance, Inc. Tranche B, (1 month LIBOR + 4.000%) 6.080%, 9/29/24	$	447	$	444


Consumer Non-Durables—0.6%

American Greetings Corp., (1 month LIBOR + 4.500%) 6.576%, 4/6/24		244		244

Energizer Holdings, Inc. Tranche B, (3 month LIBOR + 2.250%) 0.000%, 6/20/25⁽⁸⁾		115		116

Herbalife Nutrition Ltd. Tranche B, (1 month LIBOR + 3.250%) 5.326%, 8/9/25		75		75

Kronos Acquisition Intermediate, Inc., (1 month LIBOR + 4.000%) 6.065%, 5/15/23		228		226

Parfums Holdings Co., Inc. First Lien, (3 month LIBOR + 4.750%) 7.063%, 6/30/24		272		274

				935


Energy—0.5%

California Resources Corp., (1 month LIBOR + 10.375%) 12.440%, 12/31/21		360		398

Chesapeake Energy Corp. Tranche A, (1 month LIBOR + 7.500%) 9.576%, 8/23/21		106		111

Traverse Midstream Partners LLC, (3 month LIBOR + 4.000%) 6.340%, 9/27/24		375		376

				885


Financial—1.5%

Asurion LLC Tranche B-2, Second Lien, (1 month LIBOR + 6.500%) 8.576%, 8/4/25		819		842

Blackhawk Network Holdings, Inc. First Lien, (2 month LIBOR + 3.000%) 5.183%, 6/15/25		300		301

Ditech Holding Corp. Tranche B, (1 month LIBOR + 6.000%) 8.076%, 6/30/22		429		407

FinCo I LLC 2018 Replacement, (1 month LIBOR + 2.000%) 4.076%, 12/27/22		125		125

Franklin Square Holdings LP, (3 month LIBOR + 2.500%) 4.625%, 8/1/25		80		80

Genworth Holdings, Inc., (1 month LIBOR + 4.500%) 6.567%, 3/7/23		40		41

iStar, Inc., (1 month LIBOR + 2.750%) 4.877%, 6/28/23		614		613

				2,409

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE		VALUE

Food and Drug—0.3%

Albertson’s LLC Tranche B-5, (3 month LIBOR + 3.000%) 5.337%, 12/21/22		$ 508		$ 507


Food/Tobacco—0.5%

Chobani LLC First Lien, (1 month LIBOR + 3.500%) 5.576%, 10/10/23		255		241

JBS USA Lux S.A., (3 month LIBOR + 2.500%) 4.835%, 10/30/22		173		173

Milk Specialties Co., (1 month LIBOR + 4.000%) 6.076%, 8/16/23		322		322

				736


Forest Prod/Containers—0.1%

Anchor Glass Container Corp. Second Lien, (1 month LIBOR + 7.750%) 9.814%, 12/7/24		173		113


Gaming/Leisure—1.7%

Aristocrat Leisure Ltd. Tranche B-3, (2 month LIBOR + 1.750%) 4.098%, 10/19/24		702		700

Everi Payments, Inc. Tranche B, (1 month LIBOR + 3.000%) 5.076%, 5/9/24		183		184

Gateway Casinos & Entertainment Ltd., (3 month LIBOR + 3.000%) 5.473%, 12/1/23		150		150

Playa Resorts Holding B.V., (1 month LIBOR + 2.750%) 4.830%, 4/29/24		531		527

Scientific Games International, Inc. Tranche B-5, (1 month LIBOR + 2.750%) 4.826%, 8/14/24		229		229

Seminole Tribe of Florida 2018 Replacement, Tranche B, (1 month LIBOR + 1.750%) 3.826%, 7/8/24		412		413

Stars Group Holdings B.V., (3 month LIBOR + 3.500%) 5.831%, 7/10/25		90		91

UFC Holdings LLC First Lien, (1 month LIBOR + 3.250%) 5.330%, 8/18/23		341		343

Wyndham Hotels & Resorts, Inc. Tranche B, (1 month LIBOR + 1.750%) 3.826%, 5/30/25		70		70

				2,707


Healthcare—1.0%

21st Century Oncology, Inc. Tranche B, (3 month LIBOR + 6.125%) 8.465%, 1/16/23		160		150

AHP Health Partners, Inc., (1 month LIBOR + 4.500%) 6.576%, 6/30/25		345		347


	PAR VALUE		VALUE

Healthcare—(continued)

Auris LuxCo Tranche B, First Lien, (3 month LIBOR + 3.750%) 0.000%, 7/24/25⁽⁸⁾		$ 55		$ 56

Bausch Health Cos., Inc., (1 month LIBOR + 3.000%) 5.081%, 6/2/25		69		69

CHG Healthcare Services, Inc. First Lien, (3 month LIBOR + 3.000%) 5.209%, 6/7/23		436		437

MPH Acquisition Holdings LLC, (3 month LIBOR + 2.750%) 5.084%, 6/7/23		157		157

Quorum Health Corp., (1 month LIBOR + 6.750%) 8.826%, 4/29/22		203		205

Verscend Holding Corp. Tranche B, (3 month LIBOR + 4.500%) 0.000%, 8/10/25⁽⁸⁾		255		257

				1,678


Housing—0.7%

84 Lumber Co. Tranche B-1, (1 month LIBOR + 5.250%) 7.315%, 10/25/23		359		362

American Builders & Contractors Supply Co., Inc. Tranche B-2, (1 month LIBOR + 2.000%) 4.076%, 10/31/23		579		576

Capital Automotive LP Tranche B, Second Lien, (1 month LIBOR + 6.000%) 8.076%, 3/24/25		253		257

				1,195


Information Technology—1.3%

Applied Systems, Inc. Second Lien, (3 month LIBOR + 7.000%) 9.334%, 9/19/25		70		72

Intralinks, Inc. First Lien, (1 month LIBOR + 4.000%) 6.080%, 11/14/24		230		231

Kronos, Inc.
First Lien, (3 month LIBOR + 3.000%) 5.252%, 11/1/23		484		485
Second Lien, (3 month LIBOR + 8.250%) 10.593%, 11/1/24		166		169

Presidio Holdings, Inc. Tranche B, (3 month LIBOR + 2.750%) 4.999%, 2/2/24		484		484

SS&C Technologies Holdings, Inc. (3 month LIBOR + 2.500%) 0.000%, 4/16/25⁽⁸⁾		90		90

Tranche B-3, (1 month LIBOR + 2.250%) 4.326%, 4/16/25		444		444

Tranche B-4, (1 month LIBOR + 2.250%) 4.326%, 4/16/25		173		173

				2,148

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE		VALUE

Manufacturing—0.8%

Accudyne Industries Borrower S.C.A., (1 month LIBOR + 3.000%) 5.076%, 8/18/24		$ 441		$ 442

CPI Acquisition, Inc. First Lien, (3 month LIBOR + 4.500%) 6.839%, 8/17/22		845		557

Deliver Buyer, Inc., (3 month LIBOR + 5.000%) 7.194%, 5/1/24		294		295


				1,294


Media/Telecom - Diversified Media—0.2%

Meredith Corp., (1 month LIBOR + 3.000%) 5.076%, 1/31/25		320		321


Media/Telecom - Telecommunications—1.2%

CenturyLink, Inc. Tranche B, (1 month LIBOR + 2.750%) 4.826%, 1/31/25		633		625

Securus Technologies Holdings, Inc.

(3 month LIBOR + 4.500%) 0.000%, 11/1/24⁽⁸⁾		92		92

First Lien, (1 month LIBOR + 4.500%) 6.576%, 11/1/24		450		450

Second Lien, (1 month LIBOR + 8.250%) 10.326%, 11/1/25		295		294

West Corp.

Tranche B-1, (1 month LIBOR + 3.500%) 5.576%, 10/10/24		110		109

Tranche B, (1 month LIBOR + 4.000%) 6.076%, 10/10/24		321		319


				1,889


Media/Telecom - Wireless Communications—0.0%

Digicel International Finance Ltd. Tranche B, First Lien, (3 month LIBOR + 3.250%) 5.570%, 5/27/24		79		74


Metals/Minerals—0.5%

Contura Energy, Inc., (1 month LIBOR + 5.000%) 7.080%, 3/18/24		248		249

Covia Holdings Corp., (3 month LIBOR + 3.750%) 6.050%, 6/1/25		155		153

Graftech International Ltd., (1 month LIBOR + 3.500%) 5.576%, 2/12/25		460		462

				864


	PAR VALUE		VALUE

Retail—0.5%

Bass Pro Group LLC, (1 month LIBOR + 5.000%) 7.076%, 9/25/24		$ 392		$ 396

Neiman Marcus Group Ltd. LLC, (1 month LIBOR + 3.250%) 5.330%, 10/25/20		466		432

				828


Service—3.1%

Advantage Sales & Marketing, Inc.
Tranche B-2, First Lien, (1 month LIBOR + 3.250%) 5.326%, 7/23/21		342		323
Second Lien, (1 month LIBOR + 6.500%) 8.576%, 7/25/22		405		334

Hoya Midco LLC First Lien, (1 month LIBOR + 3.500%) 5.576%, 6/30/24		458		454

Laureate Education, Inc., (1 month LIBOR + 3.500%) 5.576%, 4/26/24		404		405

NAB Holdings LLC 2018 Refinancing, (3 month LIBOR + 3.000%) 5.334%, 7/1/24		468		466

One Call Corp. First Lien, (1 month LIBOR + 5.250%) 7.313%, 11/27/22		454		432

PI UK Holdco II Ltd. Tranche B-1, (1 month LIBOR + 3.500%) 5.576%, 1/3/25		713		709

Red Ventures LLC First Lien, (1 month LIBOR + 4.000%) 6.076%, 11/8/24		622		629

Sedgwick Claims Management Services, Inc. Second Lien, (3 month LIBOR + 5.750%) 7.944%, 2/28/22		570		572

SSH Group Holdings, Inc. First Lien, (3 month LIBOR + 4.250%) 6.590%, 7/30/25		230		232

TKC Holdings, Inc. First Lien, (1 month LIBOR + 3.750%) 5.830%, 2/1/23		380		380


				4,936


Transportation—Automotive—0.3%

Navistar, Inc. Tranche B, (1 month LIBOR + 3.500%) 5.580%, 11/6/24		488		489


Utility—1.7%

APLP Holdings LP, (1 month LIBOR + 3.000%) 5.076%, 4/13/23		445		445

Brookfield WEC Holdings, Inc. Second Lien, (1 month LIBOR + 6.750%) 8.826%, 7/24/26		235		238

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)


	PAR VALUE			VALUE

Utility—(continued)

Brookfield WEC Holdings, Inc. (Westinghouse Electric Co., LLC) First Lien, (1 month LIBOR + 3.750%) 5.826%, 8/1/25		$ 410			$ 412

NRG Energy, Inc., (3 month LIBOR + 1.750%) 4.084%, 6/30/23		439			438

Talen Energy Supply LLC, (1 month LIBOR + 4.000%) 6.076%, 4/15/24		325			326

Vistra Operations Co., LLC

(1 month LIBOR + 2.000%) 4.076%, 8/4/23		282			281

(1 month LIBOR + 2.000%) 4.068%, 12/31/25		520			519

					2,659
TOTAL LEVERAGED LOANS (Identified Cost $28,476)					28,182

	SHARES
PREFERRED STOCKS—3.0%

Financials—2.2%

Huntington Bancshares, Inc. Series E, 5.700%		595	⁽⁹⁾		593

KeyCorp Series D, 5.000%⁽¹⁸⁾		530	⁽⁹⁾		523

M&T Bank Corp. Series F, 5.125%⁽¹⁸⁾		795	⁽⁹⁾		791

MetLife, Inc. Series D, 5.875%		313	⁽⁹⁾		324

Zions Bancorp 6.950%		47,150			1,389

					3,620


Industrials—0.8%

General Electric Co. Series D, 5.000%⁽⁴⁾		1,248	⁽⁹⁾		1,229
TOTAL PREFERRED STOCKS (Identified Cost $4,593)					4,849

COMMON STOCKS—0.1%

Energy—0.1%

Frontera Energy Corp.⁽¹⁴⁾		7,526			107

Hercules Offshore, Inc.^(10)(12)(14)		10,017			17

Sabine Oil & Gas LLC^(13)(14)		457			23
TOTAL COMMON STOCKS (Identified Cost $771)					147

WARRANTS—0.0%

Energy—0.0%

Sabine Oil & Gas LLC^(13)(14)		258			1

Sabine Oil & Gas LLC^(13)(14)		1,450			9


	SHARES		VALUE
TOTAL WARRANTS (Identified Cost $12)				10
TOTAL LONG-TERM INVESTMENTS—137.4% (Identified Cost $232,711)				221,529	⁽¹⁹⁾
SHORT-TERM INVESTMENTS—0.0%

Purchased Options—0.1%

(See the open purchased options table on page 13 for the detailed information)
TOTAL PURCHASED OPTIONS – 0.1%

(Premiums Paid $352)				177

SHORT-TERM INVESTMENTS—1.9%

Money Market Mutual Fund—1.9%

Dreyfus Government Cash Management Fund—Institutional Shares (seven-day effective yield 1.840%)⁽¹⁷⁾		2,999,984	$	3,000	⁽¹⁹⁾
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $3,352)				3,177

	CONTRACTS

TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—139.3% (Identified Cost $236,063)				224,706
WRITTEN OPTIONS—(0.3)%

See the table on page 13 for the detailed information

TOTAL WRITTEN OPTIONS – (0.3%)

(Premiums Received $726)				(445	)

TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—139.0% (Identified Cost $235,337)				224,261

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

($ reported in thousands)




Other assets and liabilities, net—(39.0)%		(63,039	)

NET ASSETS—100.0%	$	161,222


Abbreviations:

Footnote Legend:

⁽¹⁾

Variable rate security. Rate disclosed is as of August 31, 2018. 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 August 31, 2018, these securities amounted to a value of $110,006 or 68.2% 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⁾	This Note was issued for the sole purpose of funding a leveraged loan 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 August 31, 2018, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.

⁽⁹⁾	Value shown as par value.

⁽¹⁰⁾	Security in default, no interest payments are being received during the bankruptcy proceedings.

⁽¹¹⁾	100% of the income received was in cash.

⁽¹²⁾	Security valued at fair value as determined in good faith by or under the direction of the Trustees. This security is disclosed as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.

⁽¹³⁾	The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located at the end of the Schedule of Investments.

⁽¹⁴⁾	Non-income producing.

⁽¹⁵⁾	Amount is less than $500.

⁽¹⁶⁾	87% of the income received was in cash and 13% in PIK.

⁽¹⁷⁾	Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

⁽¹⁸⁾	Interest may be forfeited.

⁽¹⁹⁾	All or a portion of the portfolio is segregated as collateral for borrowings.

Foreign Currencies:

BRL	Brazilian Real

CLP	Chilean Peso

COP	Colombian Peso

IDR	Indonesian Rupiah

KZT	Kazakhstani Tenge

MXN	Mexican Peso

NGN	Nigerian Naira

RUB	Russian Ruble

ZAR	South African Rand

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

($ reported in thousands)


Country Weightings †

United States			57%

Mexico			5

Netherlands			3

Argentina			2

Canada			2

Chile			2

Colombia			2

Other			27

Total			100%

† % of total investments net of options as of August 31, 2018

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

Open Purchased Options contracts as of August 31,

2018, were as follows:



Description of Options	Number of Contracts		Contract Notional Amount		Strike Price ⁽¹⁾		Expiration Date		Value
Call Options

S&P 500^® Index		280	$	84,000	$	3,000		9/4/18	$	1

S&P 500^® Index		381		113,919		2,990		9/5/18		4

S&P 500^® Index		91		27,255		2,995		9/7/18		2

S&P 500^® Index		305		92,415		3,030		9/10/18		1

S&P 500^® Index		415		125,745		3,030		9/12/18		2

S&P 500^® Index		91		27,664		3,040		9/14/18		4


										14


Put Options

S&P 500^® Index		280		75,600		2,700		9/4/18		6

S&P 500^® Index		381		103,632		2,720		9/5/18		23

S&P 500^® Index		91		24,934		2,740		9/7/18		8

S&P 500^® Index		305		84,028		2,755		9/10/18		38

S&P 500^® Index		415		114,540		2,760		9/12/18		65

S&P 500^® Index		91		25,116		2,760		9/14/18		23

										163

Total Purchased Options									$	177

Open Written Options contracts as of August 31, 2018, were as follows:



Description of Options	Number of Contracts		Contract Notional Amount		Strike Price ⁽¹⁾		Expiration Date		Value
Call Options

S&P 500^® Index		280	$	82,180	$	2,935		9/4/18		$ (5	)

S&P 500^® Index		381		111,633		2,930		9/5/18		(39	)

S&P 500^® Index		91		26,800		2,945		9/7/18		(9	)

S&P 500^® Index		305		90,585		2,970		9/10/18		(16	)

S&P 500^® Index		415		123,463		2,975		9/12/18		(29	)

S&P 500^® Index		91		27,209		2,990		9/14/18		(7	)


										(105	)


Put Options

S&P 500^® Index		280		77,420		2,765		9/4/18		(8	)

S&P 500^® Index		381		105,918		2,780		9/5/18		(17	)

S&P 500^® Index		91		25,389		2,790		9/7/18		(11	)

S&P 500^® Index		305		85,858		2,815		9/10/18		(93	)

S&P 500^® Index		415		116,823		2,815		9/12/18		(174	)

S&P 500^® Index		91		25,571		2,810		9/14/18		(37	)

Total Written Options										(340	)

										$(445	)

Footnote Legend:

⁽¹⁾ Strike price not reported in thousands.

The following table provides a summary of inputs used to value the Fund’s investments as of August 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):


	Total Value at August 31, 2018			Level 1 Quoted Prices			Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs
Debt Securities:
Asset-Backed Securities	$	13,070		$	—		$	13,070		$ —
Corporate Bonds and Notes		111,100			—			111,099		1
Foreign Government Securities		33,303			—			33,303		—
Leveraged Loans		28,182			—			28,182		—
Mortgage-Backed Securities		23,902			—			23,902		—
Municipal Bonds		1,553			—			1,553		—
U.S. Government Securities		5,413			—			5,413		—
Equity Securities:
Common Stocks		147			107			—		40
Preferred Stocks		4,849			1,389			3,460		—
Warrants		10			—			—		10
Money Market Mutual Fund		3,000			3,000			—		—
Purchased Options		177			109			68		—

Total Investments before Written Options	$	224,706		$	4,605		$	220,050		$ 51
Liabilities:
Written Options	$	(445	)	$	(445	)	$	—		$ —

Total Investments Net of Written Options	$	224,261		$	4,160		$	220,050		$ 51

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at August 31, 2018.

Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information

without adjustment. Such valuations are based on unobservable inputs. A significant change in third party

information could result in a significantly lower or higher value of Level 3 investments.

Management has determined that the amount of Level 3 securities compared to total net assets is de minimis; therefore, the rollforward of Level 3 securities and assumptions are not shown for the period ended August 31, 2018.

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES

The Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to Investment Companies.

The significant accounting policies consistently followed by the Fund in the preparation of its Schedule of Investments are summarized below and, for derivatives, included in Note 2 below. The preparation of the Schedule of Investments in conformity with U.S. generally accepted accounting principles 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

Security valuation procedures for the Fund, which include nightly price variance, as well as back-testing items 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 appointed by the Board (the “Valuation Committee”). The Valuation Committee is comprised of certain members of management as identified to the Board and convenes independently from portfolio management. 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. 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

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

Report to Shareholders

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

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 American Depositary Receipts, financial futures, exchange-traded funds, 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 or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Claims are valued by brokers based on pricing models that take into account, among other factors, both cash and non-cash assets. The valuation is derived from expected cash flow of the claims and the non-cash assets, which include all real estate, private equity or other securities within the estate. To the extent that these inputs are observable, the values of the claims are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

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 NAV. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Both are 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.

B. When-issued Purchases and Forward Commitments (Delayed Delivery)

The Fund may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by the Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). Delayed delivery enables the Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates.

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

Report to Shareholders

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

The Fund records delayed delivery securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.

C. 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 leveraged loan. 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 loan 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 the London Interbank Offered Rate (‘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 loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

D. Credit Risk and Asset Concentrations

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/high-risk 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 the pursuit of its investment objective. Fluctuations in these sectors of concentration

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

Report to Shareholders

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.

The Fund borrows through its line of credit for the purpose of leveraging its portfolio. While leverage presents opportunities for increasing the Fund’s total return, it also has the effect of potentially increasing losses. Accordingly, any event which adversely affects the value of an investment held by the Fund would be magnified to the extent the Fund is leveraged.

NOTE 2 — DERIVATIVE FINANCIAL INSTRUMENTS

Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why the Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect the Fund’s results of operations and financial position. Summarized below is a specific type of derivative instrument used by the Fund.

Options contracts

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 August 31, 2018, the average daily premiums paid by the Fund for purchased options were $328, and the average daily premiums received by the Fund for written options were $672.

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

Report to Shareholders

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

NOTE 3 — ILLIQUID AND RESTRICTED SECURITIES

($ reported in thousands)

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 Fund. 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.

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

The Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

The Fund held securities considered to be illiquid at August 31, 2018, with an aggregate value of $ 51 representing 0.03% of the Fund’s net assets.

At August 31, 2018, the Fund did not hold any securities that were restricted.

NOTE 4 — REGULATORY MATTERS AND LITIGATION

From time to time, the Adviser, Newfleet and/or their respective affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the Securities and Exchange Commission, 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 Adviser believes that the outcomes of such matters are not likely, either individually or in the aggregate, to be material to these financial statements.

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.

Effective October 15, 2018, Rampart Investment Management, an investment management affiliate of Virtus Investment Partners that specializes in options strategies, has been appointed as an additional investment subadviser to manage the existing options overlay strategy on the Fund. Warun Kumar, chief investment officer, Rampart, who previously managed the strategy through Newfleet Asset Management, has been added as a portfolio manager to the Fund.

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

Report to Shareholders

Item 2. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 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 Multi-Sector Income Fund


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


Date		10/30/2018

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		10/30/2018


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


Date		10/30/2018

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