Edgar Filing: Virtus Global Multi-Sector Income Fund

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, 2017

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, 2017

($ reported in thousands)


		PAR VALUE				VALUE
U.S. GOVERNMENT SECURITIES—1.2%
U.S. Treasury Note
1.625%, 2/15/26	$		675		$		652
2.250%, 8/15/27			1,800				1,820

TOTAL U.S. GOVERNMENT SECURITIES (Identified Cost $2,456)							2,472


MUNICIPAL BONDS—0.8%

California—0.4%
State of California Build America Bond Taxable
7.500%, 4/1/34			570				840


Illinois—0.4%
State of Illinois Build America Bond Taxable
6.900%, 3/1/35			700				776


TOTAL MUNICIPAL BONDS (Identified Cost $1,489)							1,616


FOREIGN GOVERNMENT SECURITIES—24.1%

Argentine Republic
5.625%, 1/26/22			520				544
7.500%, 4/22/26			1,895				2,127
6.875%, 1/26/27			545				587
Series NY, 8.280%, 12/31/33			1,269				1,472
7.125%, 7/6/36			780				818
7.625%, 4/22/46			590				648
Bermuda RegS 4.854%, 2/6/24⁽⁴⁾			700				766
Bolivarian Republic of Venezuela RegS 7.650%, 4/21/25⁽⁴⁾			1,380				490
Dominican Republic
144A, 6.875%, 1/29/26⁽³⁾			155				178
144A, 6.850%, 1/27/45⁽³⁾			800				900
Federative Republic of Brazil
12.500%, 1/5/22			2,185	^BRL			788
Treasury Note Series F, 10.000%, 1/1/23			2,560	^BRL			843
8.500%, 1/5/24			1,405	^BRL			444
Treasury Note Series F, 10.000%, 1/1/25			1,960	^BRL			642
10.250%, 1/10/28			2,960	^BRL			1,023
5.625%, 1/7/41			725				726
Islamic Republic of Pakistan 144A 8.250%, 4/15/24⁽³⁾			600				676
Kingdom of Bahrain 144A 7.000%, 10/12/28⁽³⁾			795				819


		PAR VALUE				VALUE
Kingdom of Jordan 144A 5.750%, 1/31/27⁽³⁾	$		1,085		$		1,081
Kingdom of Morocco 144A 5.500%, 12/11/42⁽³⁾			800				908
Kingdom of Qatar 144A 4.625%, 6/2/46⁽³⁾			300				317
Mongolia RegS 5.125%, 12/5/22⁽⁴⁾			800				774
Provincia de Buenos Aires
144A, 9.125%, 3/16/24⁽³⁾			730				843
144A, 7.875%, 6/15/27⁽³⁾			1,165				1,260
Republic of Armenia 144A 7.150%, 3/26/25⁽³⁾			700				780
Republic of Chile 5.500%, 8/5/20			547,000	^CLP			930
Republic of Colombia
Treasury Note, Series B, 11.250%, 10/24/18			998,500	^COP			363
4.375%, 3/21/23			1,588,000	^COP			505
3.875%, 4/25/27			805				820
9.850%, 6/28/27			824,000	^COP			350
Republic of Costa Rica
144A, 7.000%, 4/4/44⁽³⁾			800				841
RegS, 7.000%, 4/4/44⁽⁴⁾			1,000				1,051
Republic of Ecuador 144A 9.650%, 12/13/26⁽³⁾			960				1,012
Republic of El Salvador 144A 6.375%, 1/18/27⁽³⁾			1,320				1,270
Republic of Ghana 144A 10.750%, 10/14/30⁽³⁾			655				848
Republic of Indonesia
Series FR63, 5.625%, 5/15/23			7,482,000	^IDR			534
Series FR70, 8.375%, 3/15/24			7,827,000	^IDR			637
Series FR56, 8.375%, 9/15/26			5,996,000	^IDR			499
144A, 5.250%, 1/17/42⁽³⁾			850				942
Republic of Iraq RegS 5.800%, 1/15/28⁽⁴⁾			890				847
Republic of Kazakhstan 144A 5.125%, 7/21/25⁽³⁾			260				291
Republic of South Africa
Series R203, 8.250%, 9/15/17			8,060	^ZAR			620
Series R208, 6.750%, 3/31/21			1,940	^ZAR			146
4.875%, 4/14/26			370				380
4.300%, 10/12/28			1,885				1,815
Republic of Turkey
6.250%, 9/26/22			340				375
7.375%, 2/5/25			1,215				1,435
4.875%, 10/9/26			2,185				2,220
6.000%, 3/25/27			650				712
4.875%, 4/16/43			935				862
Republic of Uruguay 5.100%, 6/18/50			500				527
Russian Federation
144A, 7.850%, 3/10/18⁽³⁾			55,000	^RUB			947
Series 6216, 6.700%, 5/15/19			48,000	^RUB			816
Sultanate of Oman 144A 4.750%, 6/15/26⁽³⁾			1,280				1,277

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE				VALUE
Ukraine
144A, 7.750%, 9/1/22⁽³⁾	$		790		$		823
144A, 7.750%, 9/1/26⁽³⁾			730				748
United Mexican States
Series M, 6.500%, 6/9/22			9,038	^MXN			501
4.150%, 3/28/27			520				550
4.750%, 3/8/44			506				528

TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $47,324)							47,476


MORTGAGE-BACKED SECURITIES—11.4%

Agency—4.9%
FHLMC 3.500%, 4/1/46			374				388
FNMA
3.500%, 11/1/42⁽¹¹⁾			567				590
3.500%, 9/1/45⁽¹¹⁾			1,827				1,894
3.000%, 12/1/45⁽¹¹⁾			1,924				1,947
3.500%, 12/1/45⁽¹¹⁾			1,129				1,170
3.500%, 12/1/45			501				519
3.500%, 1/1/46⁽¹¹⁾			682				708
3.000%, 5/1/46⁽¹¹⁾			576				583
3.500%, 4/1/47			1,740				1,804

							9,603

Non-Agency—6.5%
American Homes 4 Rent Trust 14-SFR2, C 144A 4.705%, 10/17/36⁽³⁾			770				840
Ameriquest Mortgage Securities, Inc. Pass- Through Certificates, 03-AR3, M4 (5.850% minus 1 month LIBOR) 4.290%, 6/25/33⁽²⁾			855				849
AMSR Trust 16-SFR1, D 144A, (1 month LIBOR + 2.400%) 3.628%, 11/17/33⁽²⁾⁽³⁾			665				674
Bank of America (Merrill Lynch) Commercial Mortgage Securities Trust 15-200P, A 144A 3.218%, 4/14/33⁽³⁾			580				596
Bayview Opportunity Master Fund IV a Trust
16-SPL1, B1 144A, 4.250%, 4/28/55⁽³⁾			540				558
17-SLP5, B1 144A, 4.000%, 6/28/57⁽²⁾⁽³⁾			130				137
Bayview Opportunity Master Fund IV b Trust 16-SPL2, B1 144A 4.250%, 6/28/53⁽²⁾⁽³⁾			385				398
CIT Home Equity Loan Trust 03-1, A5 5.480%, 7/20/34⁽²⁾			1,153				1,175
Credit Suisse Commercial Mortgage-Backed Trust 06-08, 3A1 6.000%, 10/25/21			215				206


	PAR VALUE		VALUE
Non-Agency—(continued)
GAHR Commercial Mortgage Trust 15-NRF, CFX 144A 3.495%, 12/15/34⁽²⁾⁽³⁾	$	525	$	536
GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35⁽²⁾		351		355
Home Equity Loan Trust 07-HSA3, AI4 6.110%, 6/25/37⁽²⁾		888		891
JPMorgan Chase Commercial Mortgage Securities Trust 07-LDP10, AM 5.464%, 1/15/49⁽²⁾		113		113
JPMorgan Chase Mortgage Trust 16-5, A1 144A 2.606%, 12/25/46⁽²⁾⁽³⁾		676		681
MASTR Alternative Loan Trust 04-6, 7A1 6.000%, 7/25/34		690		684
New Residential Mortgage Loan Trust 16-4A, B1A 144A 4.500%, 11/25/56⁽²⁾⁽³⁾		555		582
One Market Plaza Trust 17-1MKT, A 144A 3.614%, 2/10/32⁽³⁾		520		547
Towd Point Mortgage Trust
15-6, M1 144A, 3.750%, 4/25/55⁽²⁾⁽³⁾		275		286
15-1, 1M1 144A, 3.250%, 11/25/60⁽²⁾⁽³⁾		1,665		1,664
VSD 17-PLT1, A 3.600%, 12/25/43		270		270
Wells Fargo Commercial Mortgage Trust 15-LC20, B 3.719%, 4/15/50		690		705

				12,747

TOTAL MORTGAGE- BACKED SECURITIES (Identified Cost $22,122)				22,350


ASSET-BACKED SECURITIES—5.2%
Carnow Auto Receivables Trust 16-1A, D 144A 7.340%, 11/15/21⁽³⁾		640		643
CKE Restaurant Holdings, Inc. 13-1A, A2 144A 4.474%, 3/20/43⁽³⁾		751		757
Drive Auto Receivables Trust 17-2, C 2.750%, 9/15/23		790		792
Drug Royalty III LP 1 16-1A, A 144A 3.979%, 4/15/27⁽³⁾		691		694
Exeter Automobile Receivables Trust 14-3A, D 144A 5.690%, 4/15/21⁽³⁾		790		819
First Investors Auto Owner Trust 15-2A, E 144A 5.590%, 11/15/22⁽³⁾		800		809
Flagship Credit Auto Trust 16-3, D 144A 3.890%, 11/15/22⁽³⁾		785		796

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE				VALUE
GLS Auto Receivables Trust 17-1A, C 144A 3.500%, 7/15/22⁽³⁾	$		790		$		792
HOA Funding LLC 14-1A, A2 144A 4.846%, 8/20/44⁽³⁾			747				716
Prosper Marketplace Issuance Trust 17-21A, B 144A 3.480%, 9/15/23⁽³⁾			1,060				1,066
Santander Drive Auto Receivables Trust 17-2, D 3.490%, 7/17/23			790				806
TGIF Funding LLC 17-1A, A2 144A 6.202%, 4/30/47⁽³⁾			652				660
Wendy’s Funding LLC 15-1A, A2II 144A 4.080%, 6/15/45⁽³⁾			771				796

TOTAL ASSET-BACKED SECURITIES (Identified Cost $10,061)							10,146

CORPORATE BONDS AND NOTES—72.7%

Consumer Discretionary—6.7%
Altice Luxembourg S.A. 144A 7.625%, 2/15/25⁽³⁾			590				638
Beazer Homes USA, Inc. 6.750%, 3/15/25			240				253
Caesars Entertainment Operating Co., Inc. 9.000%, 2/15/20⁽¹²⁾			472				614
Caesars Entertainment Resort Properties LLC 8.000%, 10/1/20			500				513
Caesars Growth Properties Holdings LLC 9.375%, 5/1/22			905				974
CalAtlantic Group, Inc.
5.250%, 6/1/26			275				283
5.000%, 6/15/27			420				421
Charter Communications Operating LLC 4.908%, 7/23/25			655				702
Clear Channel Worldwide Holdings, Inc. Series B,
7.625%, 3/15/20			405				403
Eldorado Resorts, Inc. 6.000%, 4/1/25			105				112
Gateway Casinos & Entertainment Ltd. 144A 8.250%, 3/1/24⁽³⁾			555				579
Grupo Televisa SAB
4.625%, 1/30/26			525				568
7.250%, 5/14/43			8,000	^MXN			354
iHeartCommunications, Inc. 9.000%, 12/15/19			315				250
Laureate Education, Inc. 144A 8.250%, 5/1/25⁽³⁾			155				169
Lear Corp. 3.800%, 9/15/27			785				787
M/I Homes, Inc. 144A 5.625%, 8/1/25⁽³⁾			545				553


		PAR VALUE			VALUE
Consumer Discretionary—(continued)
McGraw-Hill Global Education Holdings LLC 144A 7.875%, 5/15/24⁽³⁾	$		525	$		503
MDC Holdings, Inc. 5.500%, 1/15/24			680			734
PetSmart, Inc. 144A 8.875%, 6/1/25⁽³⁾			350			291
QVC, Inc. 5.125%, 7/2/22			690			740
SFR Group S.A. 144A 7.375%, 5/1/26⁽³⁾			490			529
TI Group Automotive Systems LLC 144A 8.750%, 7/15/23⁽³⁾			415			437
Toll Brothers Finance Corp. 4.875%, 11/15/25			80			83
TRI Pointe Group, Inc. 5.875%, 6/15/24			640			680
Vista Outdoor, Inc. 5.875%, 10/1/23			655			671
Ziggo Bond Finance BV 144A 6.000%, 1/15/27⁽³⁾			300			308

						13,149

Consumer Staples—1.5%
BAT Capital Corp. 144A 3.557%, 8/15/27⁽³⁾			535			543
Cumberland Farms, Inc. 144A 6.750%, 5/1/25⁽³⁾			310			333
MARB BondCo PLC 144A 7.000%, 3/15/24⁽³⁾			400			395
Rite Aid Corp. 144A 6.125%, 4/1/23⁽³⁾			585			577
Safeway, Inc. 7.250%, 2/1/31			655			591
Tops Holding LLC 144A 8.000%, 6/15/22⁽³⁾			575			421

						2,860

Energy—19.7%
Afren PLC
144A, 10.250%, 4/8/19^{(3)(10)(14)(20)}			635			—⁽¹⁶⁾
144A, 6.625%, 12/9/20^{(3)(10)(14)(20)}			732			—⁽¹⁶⁾
Alliance Resource Operating Partners LP 144A 7.500%, 5/1/25⁽³⁾			641			670
Alta Mesa Holdings LP 144A 7.875%, 12/15/24⁽³⁾			380			408
American Midstream Partners LP 144A 8.500%, 12/15/21⁽³⁾			315			313
Anadarko Petroleum Corp. 6.600%, 3/15/46			390			472
Blue Racer Midstream LLC 144A 6.125%, 11/15/22⁽³⁾			295			303
Callon Petroleum Co. 6.125%, 10/1/24			595			604
Carrizo Oil & Gas, Inc. 6.250%, 4/15/23			565			548
Cheniere Corpus Christi Holdings LLC 7.000%, 6/30/24			605			688
Chesapeake Energy Corp. 144A 8.000%, 6/15/27⁽³⁾			670			637
Continental Resources, Inc. 4.500%, 4/15/23			260			256
Denbury Resources, Inc. 5.500%, 5/1/22			300			137

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE			VALUE

Energy—(continued)
Ecopetrol S.A.
5.875%, 9/18/23	$		535	$		596
5.375%, 6/26/26			1,610			1,713
Encana Corp.
3.900%, 11/15/21			275			283
8.125%, 9/15/30			280			362
EP Energy LLC
9.375%, 5/1/20			255			188
144A, 8.000%, 11/29/24⁽³⁾			440			430
Fermaca Enterprises S de RL de CV 144A 6.375%, 3/30/38^(3)(11)			1,319			1,428
FTS International, Inc. 6.250%, 5/1/22			620			536
Gazprom OAO 144A 4.950%, 2/6/28⁽³⁾⁽⁷⁾			1,300			1,320
Helmerich & Payne International Drilling Co. 4.650%, 3/15/25			405			434
Kinder Morgan, Inc. 7.750%, 1/15/32			980			1,261
Lukoil International Finance BV
144A, 6.125%, 11/9/20⁽³⁾⁽⁷⁾			1,100			1,199
144A, 4.563%, 4/24/23⁽³⁾			400			415
Matador Resources Co. 6.875%, 4/15/23			795			827
MEG Energy Corp. 144A 6.500%, 1/15/25⁽³⁾			370			344
Midcontinent Express Pipeline LLC 144A 6.700%, 9/15/19^(3)(11)			1,000			1,071
MPLX LP 4.875%, 12/1/24			725			781
Nabors Industries, Inc. 5.500%, 1/15/23			395			370
Noble Holding International Ltd. 7.750%, 1/15/24			355			274
NuStar Logistics LP 5.625%, 4/28/27			340			360
Oasis Petroleum, Inc. 6.875%, 1/15/23			635			608
Odebrecht Offshore Drilling Finance Ltd. 144A 6.750%, 10/1/22^(3)(14)			1,265			471
Parker Drilling Co. 6.750%, 7/15/22			350			266
Peabody Energy Corp.
144A, 6.000%, 3/31/22⁽³⁾			75			77
144A, 6.375%, 3/31/25⁽³⁾			240			245
Pertamina Persero PT
144A, 6.000%, 5/3/42^(3)(11)			1,200			1,336
144A, 5.625%, 5/20/43⁽³⁾			410			439
Petrobras Global Finance BV
8.375%, 5/23/21			355			403
8.750%, 5/23/26			1,210			1,450
7.375%, 1/17/27			260			288
6.750%, 1/27/41			1,800			1,778


		PAR VALUE			VALUE

Energy—(continued)
Petroleos de Venezuela S.A.
144A, 8.500%, 10/27/20⁽³⁾	$		377	$		280
144A, 6.000%, 5/16/24⁽³⁾			1,445			434
Petroleos Mexicanos
4.250%, 1/15/25			700			702
6.875%, 8/4/26			700			805
6.500%, 6/2/41			1,360			1,426
6.375%, 1/23/45			800			825
144A, 6.750%, 9/21/47⁽²⁾⁽³⁾			650			696
PTTEP Treasury Center Co., Ltd. 144A 4.875%⁽³⁾⁽⁵⁾			383			390
RSP Permian, Inc. 144A 5.250%, 1/15/25⁽³⁾			750			752
SESI LLC 144A 7.750%, 9/15/24⁽³⁾			520			525
Southern Gas Corridor CJSC 144A 6.875%, 3/24/26⁽³⁾			655			732
State Oil Co. of the Azerbaijan Republic 6.950%, 3/18/30			780			853
Transocean, Inc.
144A, 9.000%, 7/15/23⁽³⁾			355			378
6.800%, 3/15/38			215			164
Transportadora de Gas del Peru SA 144A 4.250%, 4/30/28⁽³⁾			1,350			1,404
Ultra Resources, Inc.
144A, 6.875%, 4/15/22⁽³⁾			30			30
144A, 7.125%, 4/15/25⁽³⁾			151			147
Weatherford International Ltd. 144A 9.875%, 2/15/24⁽³⁾			215			220
YPF S.A.
144A, 8.500%, 3/23/21⁽³⁾			510			579
144A, 6.950%, 7/21/27⁽³⁾			835			892

						38,823


Financials—18.1%
Africa Finance Corp. 144A 4.375%, 4/29/20⁽³⁾			800			828
Akbank TAS 144A 7.500%, 2/5/18⁽³⁾			1,900^TRY			540
Allstate Corp. (The) 5.750%, 8/15/53⁽⁶⁾			1,710			1,877
Apollo Management Holdings LP 144A 4.000%, 5/30/24⁽³⁾			785			810
Ares Finance Co., LLC 144A 4.000%, 10/8/24⁽³⁾			830			806

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


	PAR VALUE			VALUE

Financials—(continued)
Australia & New Zealand Banking Group Ltd. 144A 4.400%, 5/19/26⁽³⁾	$	755		$	790
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A 6.500%, 3/10/21^(3)(11)		1,750			1,932
Banco de Bogota S.A. 144A 6.250%, 5/12/26⁽³⁾		760			823
Banco de Credito del Peru 144A 6.125%, 4/24/27^(3)(11)		1,225			1,355
Banco de Credito e Inversiones 144A 4.000%, 2/11/23⁽³⁾		1,160			1,217
Banco Internacional del Peru SAA Interbank 144A 6.625%, 3/19/29⁽³⁾		1,260			1,416
Banco Nacional de Comercio Exterior SNC 144A 4.375%, 10/14/25⁽³⁾		510			530
Banco Santander Chile 144A 3.875%, 9/20/22^(3)(11)		900			945
Bancolombia S.A. 5.125%, 9/11/22		1,220			1,284
Bank of China Hong Kong Ltd. 144A 5.550%, 2/11/20⁽³⁾		780			834
Bonos del Banco Central de Chile En Pesos 4.500%, 6/1/20		160,000	^CLP		267
Brighthouse Financial, Inc. 144A 3.700%, 6/22/27⁽³⁾		660			652
Compass Bank 3.875%, 4/10/25		945			949
Development Bank of Kazakhstan JSC 144A 4.125%, 12/10/22⁽³⁾		845			858
Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21^(3)(11)		925			943
Eurasian Development Bank 144A 4.767%, 9/20/22⁽³⁾		1,600			1,665
FS Investment Corp. 4.750%, 5/15/22		225			235
Genworth Holdings, Inc. 4.900%, 8/15/23		530			450
GrupoSura Finance S.A. 144A 5.500%, 4/29/26⁽³⁾		755			825
Guanay Finance Ltd. 144A 6.000%, 12/15/20⁽³⁾		1,390			1,431
ING Groep N.V. 6.000%⁽⁵⁾⁽⁶⁾		815			836
Jefferies Group LLC 4.850%, 1/15/27		180			192
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42⁽³⁾		800			892
Macquarie Group Ltd. 144A 6.250%, 1/14/21⁽³⁾		325			364
Navient Corp. 6.750%, 6/25/25		555			572
Nuveen Finance LLC 144A 4.125%, 11/1/24⁽³⁾		985			1,048
OM Asset Management PLC 4.800%, 7/27/26		675			697


		PAR VALUE			VALUE

Financials—(continued)
Powszechna Kasa Oszczednosci Bank Polski S.A. 144A 4.630%, 9/26/22^(3)(7)(11)	$		1,090	$		1,171
Santander Holdings USA, Inc. 144A 4.400%, 7/13/27⁽³⁾			660			680
Sberbank of Russia 144A 5.500%, 2/26/24⁽³⁾⁽⁷⁾			650			665
TC Ziraat Bankasi AS 144A 5.125%, 5/3/22⁽³⁾			600			613
Teachers Insurance & Annuity Association of America 144A 4.375%, 9/15/54⁽³⁾			640			649
Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22⁽³⁾			1,095			1,134
Turkiye Vakiflar Bankasi TAO 144A 5.625%, 5/30/22⁽³⁾			855			875
Ukreximbank Via Biz Finance plc 144A 9.625%, 4/27/22⁽³⁾			870			920

						35,570


Health Care—2.7%
Becton Dickinson & Co.
3.363%, 6/6/24			137			139
3.700%, 6/6/27			815			825
Community Health Systems, Inc.
6.875%, 2/1/22			300			249
6.250%, 3/31/23			100			101
Concordia International Corp. 144A 9.000%, 4/1/22⁽³⁾			160			115
DJO Finco, Inc. 144A 8.125%, 6/15/21⁽³⁾			265			252
Eagle Holding Co. II, LLC PIK Interest Capitalization, 144A 7.625%, 5/15/22^(3)(18)			370			382
MEDNAX, Inc. 144A 5.250%, 12/1/23⁽³⁾			310			321
SP Finco LLC 144A 6.750%, 7/1/25⁽³⁾			95			90
Surgery Center Holdings, Inc. 144A 8.875%, 4/15/21⁽³⁾			495			509
Team Health Holdings, Inc. 144A 6.375%, 2/1/25⁽³⁾			390			376
Tenet Healthcare Corp.
8.125%, 4/1/22			145			152
144A, 5.125%, 5/1/25⁽³⁾			210			211
144A, 7.000%, 8/1/25⁽³⁾			710			697
Valeant Pharmaceuticals International, Inc.
144A, 6.375%, 10/15/20⁽³⁾			695			688
144A, 6.500%, 3/15/22⁽³⁾			55			58

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE			VALUE

Health Care—(continued)
144A, 5.875%, 5/15/23⁽³⁾	$		80	$		68
144A, 7.000%, 3/15/24⁽³⁾			65			69

						5,302

Industrials—6.8%
Alfa SAB de CV 144A 5.250%, 3/25/24⁽³⁾			1,810			1,968
America West Airlines Pass-Through-Trust 01-1, G 7.100%, 4/2/21			986			1,072
Ashtead Capital, Inc.
144A, 4.125%, 8/15/25⁽³⁾			395			405
144A, 4.375%, 8/15/27⁽³⁾			425			433
Bombardier, Inc. 144A 6.125%, 1/15/23⁽³⁾			420			431
DP World Ltd. 144A 6.850%, 7/2/37⁽³⁾			1,000			1,238
Hillman Group, Inc. (The) 144A 6.375%, 7/15/22⁽³⁾			330			316
JBS Investments GmbH 144A 7.250%, 4/3/24⁽³⁾			725			732
JSL Europe S.A. 144A 7.750%, 7/26/24⁽³⁾			815			853
Latam Finance Ltd. 144A 6.875%, 4/11/24⁽³⁾			785			832
New Enterprise Stone & Lime Co., Inc. 144A 10.125%, 4/1/22⁽³⁾			45			49
Pitney Bowes, Inc. 3.875%, 5/15/22			757			769
Prime Security Services Borrower LLC 144A 9.250%, 5/15/23⁽³⁾			265			293
SCF Capital Designated Activity Co. 144A 5.375%, 6/16/23⁽³⁾			430			447
Standard Industries, Inc. 144A 5.500%, 2/15/23⁽³⁾			190			200
Transnet SOC Ltd. 144A 4.000%, 7/26/22⁽³⁾			1,000			985
UAL Pass-Through-Trust 07-01, A 6.636%, 7/2/22			1,700			1,842
United Airlines Pass-Through Trust 14-1, B 4.750%, 4/11/22			448			466

						13,331

Information Technology—2.1%
Arrow Electronics, Inc. 3.875%, 1/12/28			670			676
Blackboard, Inc. 144A 9.750%, 10/15/21⁽³⁾			436			395
Dell International LLC
144A, 5.450%, 6/15/23⁽³⁾			135			148
144A, 8.100%, 7/15/36⁽³⁾			255			321
Rackspace Hosting, Inc. 144A 8.625%, 11/15/24⁽³⁾			950			1,008
Radiate Holdco LLC 144A 6.625%, 2/15/25⁽³⁾			765			757
VMware, Inc.
2.950%, 8/21/22			255			256
3.900%, 8/21/27			627			632

						4,193


		PAR VALUE			VALUE

Materials—8.1%
AK Steel Corp.
7.500%, 7/15/23	$		340	$		368
7.000%, 3/15/27			510			519
Aleris International, Inc. 144A 9.500%, 4/1/21⁽³⁾			420			446
Alpek SAB de C.V. 144A 5.375%, 8/8/23⁽³⁾			1,000			1,085
ArcelorMittal 6.125%, 6/1/25			865			993
BHP Billiton Finance USA Ltd. 144A 6.750%, 10/19/75⁽³⁾⁽⁶⁾			635			737
Equate Petrochemical BV 144A 4.250%, 11/3/26⁽³⁾			790			816
FMG Resources August 2006 Pty Ltd. 144A 9.750%, 3/1/22⁽³⁾			510			578
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20⁽³⁾			585			629
Gerdau Trade, Inc. 144A 5.750%, 1/30/21⁽³⁾			500			529
Inversiones CMPC S.A. 144A 4.375%, 5/15/23⁽³⁾			1,000			1,041
Kraton Polymers LLC 144A 7.000%, 4/15/25⁽³⁾			895			962
NOVA Chemicals Corp.
144A, 4.875%, 6/1/24⁽³⁾			295			295
144A, 5.000%, 5/1/25⁽³⁾			610			608
OCP SA 144A 5.625%, 4/25/24⁽³⁾			1,500			1,621
Rusal Capital DAC 144A 5.125%, 2/2/22⁽³⁾			910			923
Severstal OAO 144A 5.900%, 10/17/22⁽³⁾⁽⁷⁾			1,100			1,207
Standard Industries, Inc. 144A 6.000%, 10/15/25⁽³⁾			410			441
Trinseo Materials Operating SCA 144A 5.375%, 9/1/25⁽³⁾			76			78
Vale Overseas Ltd.
5.875%, 6/10/21			585			649
6.250%, 8/10/26			400			453
Vedanta Resources plc 144A 6.125%, 8/9/24⁽³⁾			815			820
Venator Finance S.a.r.l. 144A 5.750%, 7/15/25⁽³⁾			130			133

						15,931


Real Estate—1.9%
EPR Properties
4.750%, 12/15/26			260			270
4.500%, 6/1/27			395			401
Hospitality Properties Trust 4.500%, 3/15/25			745			773
MPT Operating Partnership LP 5.500%, 5/1/24			145			153
Physicians Realty LP 4.300%, 3/15/27			655			676
Select Income REIT 4.500%, 2/1/25			690			701
Uniti Group, Inc. 144A 7.125%, 12/15/24⁽³⁾			770			717

						3,691

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE				VALUE

Telecommunication Services—2.6%
Altice Financing S.A. 144A 6.625%, 2/15/23⁽³⁾	$		460		$		486
America Movil SAB de C.V. Series 12, 6.450%, 12/5/22			8,000	^MXN			424
AT&T, Inc. 3.900%, 8/14/27			830				839
Bharti Airtel International Netherlands BV 144A 5.125%, 3/11/23^(3)(11)			830				879
Digicel Group Ltd. 144A 8.250%, 9/30/20⁽³⁾			720				692
Frontier Communications Corp.
6.250%, 9/15/21			330				281
10.500%, 9/15/22			545				490
GTH Finance BV 144A 7.250%, 4/26/23⁽³⁾			600				679
Qwest Corp. 7.250%, 9/15/25			345				384

							5,154

Utilities—2.5%
AmeriGas Partners LP 5.500%, 5/20/25			295				299
Dynegy, Inc. 7.375%, 11/1/22			580				600
Eskom Holdings SOC Ltd. 144A 7.125%, 2/11/25⁽³⁾			200				210
Ferrellgas Partners LP
8.625%, 6/15/20			125				113
6.750%, 6/15/23			645				611
Israel Electric Corp Ltd. 144A 6.875%, 6/21/23⁽³⁾			725				856
Lamar Funding Ltd. 144A 3.958%, 5/7/25⁽³⁾			715				675
State Grid Overseas Investment 2014 Ltd. 144A 4.125%, 5/7/24⁽³⁾			620				668
Talen Energy Supply LLC 144A 4.625%, 7/15/19⁽³⁾			93				91
TerraForm Power Operating LLC 144A 6.375%, 2/1/23⁽³⁾			750				776

							4,899

TOTAL CORPORATE BONDS AND NOTES (Identified Cost $141,576)							142,903


LOAN AGREEMENTS⁽²⁾—12.9%

Consumer Discretionary—2.7%
Advantage Sales & Marketing, Inc.
Tranche B-2, First Lien, (3 month LIBOR + 3.250%) 4.561%, 7/23/21			275				264
Second Lien, (3 month LIBOR + 6.500%) 7.796%, 7/25/22			560				510
Bass Pro Group LLC, (3 month LIBOR + 5.000%) 6.296%, 12/15/23			395				374


		PAR VALUE			VALUE

Consumer Discretionary—(continued)
Caesars Entertainment Operating Co., Inc.
Tranche B-4, 1.500%, 10/31/17⁽¹²⁾	$		539	$		696
(3 month LIBOR + 0.000%) 0.000%, 4/4/24⁽⁸⁾			155			155
Caesars Entertainment Resort Properties LLC Tranche B, First Lien, (1 month LIBOR + 3.500%) 4.739%, 10/11/20			525			527
Caesars Growth Properties Holdings LLC 2017, First Lien, (1 month LIBOR + 3.000%) 4.239%, 5/8/21			306			306
Gateway Casinos & Entertainment Ltd. Tranche B-1, (3 month LIBOR + 3.750%) 5.046%, 2/22/23			115			115
Harbor Freight Tools USA, Inc. 2016, (1 month LIBOR + 3.250%) 4.489%, 8/18/23			290			291
Hoya Midco LLC First Lien, (3 month LIBOR + 4.000%) 5.296%, 6/30/24			185			185
Laureate Education, Inc. 2024, (1 month LIBOR + 4.500%) 5.739%, 4/26/24			521			523
Playa Resorts Holding B.V., (3 month LIBOR + 3.000%) 4.320%, 4/29/24			95			95
Scientific Games International, Inc. Tranche B-4, (3 month LIBOR + 3.250%) 4.512%, 8/14/24			530			534
Seminole Tribe of Florida, Tranche B, (3 month LIBOR + 2.000%) 3.456%, 7/8/24			415			416
UFC Holdings LLC First Lien, (1 month LIBOR + 3.250%) 4.490%, 8/18/23			345			346

						5,337


Consumer Staples—0.9%
Albertson’s LLC 2017-1, Tranche B-5, (3 month LIBOR + 3.000%) 4.293%, 12/21/22			513			498
Chobani LLC First Lien, (1 month LIBOR + 4.250%) 5.489%, 10/10/23			130			131
JBS USA Lux S.A., (3 month LIBOR + 2.500%) 3.781%, 10/30/22			175			172
Milk Specialties Co., (3 month LIBOR + 4.000%) 5.296%, 8/16/23			326			328
Parfums Holdings Co., Inc. First Lien, (3 month LIBOR + 4.750%) 6.046%, 6/30/24			260			261

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE			VALUE

Consumer Staples—(continued)
TKC Holdings, Inc. First Lien, (1 month LIBOR + 4.250%) 5.489%, 2/1/23	$		364	$		365

						1,755

Energy—0.9%
California Resources Corp., (1 month LIBOR + 10.375%) 11.603%, 12/31/21			360			381
Chesapeake Energy Corp. Tranche A, (3 month LIBOR + 7.500%) 8.814%, 8/23/21			106			113
Contura Energy, Inc., (2 month LIBOR + 5.000%) 6.260%, 3/18/24			253			247
Jonah Energy LLC Second Lien, (1 month LIBOR + 6.500%) 7.739%, 5/12/21			456			447
Peabody Energy Corp. 2017, (1 month LIBOR + 4.500%) 5.739%, 3/31/22			273			275
Ultra Resources, Inc., (3 month LIBOR + 3.000%) 4.309%, 4/12/24			280			279

						1,742


Financials—1.3%
Asurion LLC Tranche B-2, Second Lien, (1 month LIBOR + 6.000%) 0.000%, 8/4/25⁽⁸⁾			819			836
FinCo I LLC, (1 month LIBOR + 1.375%) 3.931%, 7/14/22			150			151
Focus Financial Partners LLC First Lien, (3 month LIBOR + 3.250%) 4.549%, 7/3/24			80			81
iStar, Inc., (1 month LIBOR + 3.750%) 4.981%, 7/1/20			970			976
Walter Investment Management Corp. Tranche B, (1 month LIBOR + 3.750%) 4.989%, 12/18/20			530			488

						2,532


Health Care—1.5%
21st Century Oncology Holdings, Inc. Tranche B, (3 month LIBOR + 6.125%) 7.425%, 4/30/22⁽¹⁹⁾			161			151
Change Healthcare Holdings, Inc., (1 month LIBOR + 2.750%) 3.989%, 3/1/24			274			274
CHG Healthcare Services, Inc. First Lien, (3 month LIBOR + 3.250%) 4.534%, 6/7/23			374			377
Endo Luxembourg Finance Co. S.a.r.l., (1 month LIBOR + 4.250%) 5.500%, 4/29/24			280			282


		PAR VALUE			VALUE

Health Care—(continued)
Envision Healthcare Corp., (3 month LIBOR + 3.000%) 4.300%, 12/1/23	$		88	$		88
HLF Financing S.a.r.l. Senior Lien, (1 month LIBOR + 5.500%) 6.739%, 2/15/23			182			182
lasis Healthcare LLC Tranche B-3, (3 month LIBOR + 4.000%) 5.296%, 2/17/21			25			25
MMM Holdings, Inc., (3 month LIBOR + 8.750%) 10.250%, 6/30/19			160			158
MPH Acquisition Holdings LLC, (3 month LIBOR + 3.000%) 4.296%, 6/7/23			170			171
MSO of Puerto Rico, Inc., (3 month LIBOR + 8.750%) 10.250%, 6/30/19			116			115
NVA Holdings, Inc. Second Lien, (3 month LIBOR + 7.000%) 8.296%, 8/14/22			67			68
Quorum Health Corp., (3 month LIBOR + 6.750%) 8.028%, 4/29/22			347			349
U.S. Renal Care, Inc. First Lien, (3 month LIBOR + 4.250%) 5.546%, 12/30/22			685			669

						2,909


Industrials—1.1%
84 Lumber Co., (1 month LIBOR + 5.750%) 6.984%, 10/25/23			374			377
Accudyne Industries LLC, (2 month LIBOR + 3.750%) 5.013%, 8/18/24			75			75
Hayward Industries Inc. First Lien, (3 month LIBOR + 3.500%) 4.731%, 8/5/24			80			80
Navistar, Inc. Tranche B, (1 month LIBOR + 4.000%) 5.240%, 8/7/20			411			413
PAE Holding Corp. First Lien, (1 month LIBOR + 5.500%) 6.739%, 10/20/22			237			238
Sedgwick Claims Management Services, Inc. Second Lien, (3 month LIBOR + 5.750%) 7.067%, 2/28/22			570			571
TransDigm, Inc. Tranche G, (3 month LIBOR + 3.000%) 4.264%, 8/22/24			275			275
Zodiac Pool Solutions LLC Tranche B-1, First Lien, (3 month LIBOR + 4.000%) 5.296%, 12/20/23			179			181

						2,210

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


		PAR VALUE			VALUE
Information Technology—1.4%
Applied Systems, Inc. Second Lien, (3 month LIBOR + 6.500%) 7.796%, 1/24/22	$		234	$		237
Blackboard, Inc. Tranche B-4, First Lien, (3 month LIBOR + 5.000%) 6.304%, 6/30/21			201			198
Everi Payments, Inc. Tranche B, (1 month LIBOR + 4.500%) 5.739%, 5/9/24			185			187
Kronos, Inc. Second Lien, (3 month LIBOR + 8.250%) 9.561%, 11/1/24			166			171
NAB Holdings LLC, (3 month LIBOR + 3.500%) 4.799%, 7/1/24			230			231
Presidio LLC Tranche B, (3 month LIBOR + 3.250%) 4.549%, 2/2/22			536			538
Rackspace Hosting, Inc. 2017 Refinancing, Tranche B, First Lien, (3 month LIBOR + 3.000%) 4.283%, 11/3/23			104			104
Sorenson Communications LLC First Lien, (3 month LIBOR + 5.750%) 8.000%, 4/30/20			65			65
Sungard Availability Services Capital, Inc. 2021, Tranche B, (1 month LIBOR + 7.000%) 8.239%, 9/29/21⁽²⁰⁾			510			484
Veritas US, Inc. Tranche B, (3 month LIBOR + 4.500%) 5.796%, 1/27/23			562			566

						2,781


Materials—1.1%
Anchor Glass Container Corp.
July 2017, First Lien, (1 month LIBOR + 2.750%) 4.022%, 12/7/23			160			161
Second Lien, (1 month LIBOR + 7.750%) 8.981%, 12/7/24			173			175
CPI Acquisition, Inc. First Lien, (3 month LIBOR + 4.500%) 5.962%, 8/17/22			845			549
KMG Chemicals, Inc., (1 month LIBOR + 4.250%) 5.489%, 6/15/24			112			114
MacDermid, Inc. Tranche B-5, (1 month LIBOR + 3.500%) 4.739%, 6/7/20			370			372
New Arclin U.S. Holdings Corp. First Lien, (3 month LIBOR + 4.250%) 5.670%, 2/14/24			130			131
Omnova Solutions, Inc. Tranche B-2, (1 month LIBOR + 4.250%) 5.489%, 8/25/23⁽²⁰⁾			514			518


		PAR VALUE			VALUE
Materials—(continued)
PQ Corp. Tranche B-1, (3 month LIBOR + 3.250%) 4.562%, 11/4/22	$		106	$		106

						2,126


Real Estate—0.1%
Capital Automotive LP Tranche B, Second Lien , (1 month LIBOR + 6.000%) 7.240%, 3/24/25			268			271


Telecommunication Services—0.5%
Digicel International Finance Ltd. Tranche-B, First Lien, (3 month LIBOR + 3.750%) 5.070%, 5/27/24			65			66
Securus Technologies Holdings, Inc. (3 month LIBOR + 4.500%) 0.000%, 6/20/24⁽⁸⁾			535			539
Second Lien, (1 month LIBOR + 8.250%) 0.000%, 6/20/25⁽⁸⁾			295			295

						900


Utilities—1.4%
APLP Holdings LP, (1 month LIBOR + 4.250%) 5.489%, 4/13/23			533			539
Dynegy, Inc. Tranche C-1, (1 month LIBOR + 3.250%) 4.489%, 2/7/24			624			624
Energy Future Intermediate Holding Co. LLC, (1 month LIBOR + 3.000%) 4.234%, 6/30/18			475			477
Helix Gen Funding LLC, (3 month LIBOR + 3.750%) 4.960%, 6/3/24			19			19
NRG Energy, Inc., (3 month LIBOR + 2.250%) 3.546%, 6/30/23			443			442
Talen Energy Supply LLC, (1 month LIBOR + 4.000%) 5.239%, 4/15/24			329			323
Vistra Operations Company LLC Tranche C, (1 month LIBOR + 2.750%) 3.982%, 8/4/23			66			66
(1 month LIBOR + 2.750%) 3.985%, 8/4/23			285			285

						2,775

TOTAL LOAN AGREEMENTS (Identified Cost $25,346)						25,338

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


	SHARES			VALUE
PREFERRED STOCKS—2.4%

Financials—1.8%
Citigroup, Inc. Series J, 7.125%		30,800		$	906
JPMorgan Chase & Co. Series Z, 5.300%		160	⁽⁹⁾		165
KeyCorp Series D, 5.000%		650	⁽⁹⁾		670
M&T Bank Corp. Series F, 5.125%		315	⁽⁹⁾		331
Zions Bancorp 6.950%		47,150			1,414

					3,486


Industrials—0.6%
General Electric Co. Series D, 5.000%		1,248	⁽⁹⁾		1,318


TOTAL PREFERRED STOCKS (Identified Cost $4,299)					4,804


COMMON STOCKS—0.1%

Energy—0.1%
Frontera Energy Corp.⁽¹³⁾		3,851			107
Hercules Offshore, Inc.^(10)(13)(17)		10,017			—⁽¹⁶⁾
Sabine Oil & Gas LLC^(10)(13)(20)		457			19

TOTAL COMMON STOCKS (Identified Cost $774)					126


WARRANTS—0.0%

Sabine Oil & Gas LLC ^(10)(13)(20)		258			1
Sabine Oil & Gas LLC ^(10)(13)(20)		1,450			10

TOTAL WARRANTS (Identified Cost $12)					11

VALUE

TOTAL PURCHASED OPTIONS —0.1%

(See open purchased options schedule)

(Premiums Paid $342)

109

TOTAL LONG TERM INVESTMENTS—130.9%

(Identified Cost $255,801)

257,351

⁽¹⁵⁾

TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—130.9%

(Identified Cost $255,801)

257,351

^(1)(15)

TOTAL WRITTEN OPTIONS—(0.2)%

(See open written options schedule)

(Premiums Received $706)

(382

)⁽¹⁾

TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—130.7%

(Identified Cost $255,095)

256,969

Other assets and liabilities, net—(30.7)%

(60,384

)

NET ASSETS—100.0%

196,585


Abbreviations:
FHLMC		Federal Home Loan Mortgage Corporation (“Freddie Mac”)
FNMA		Federal National Mortgage Association (“Fannie Mae”)
PIK		Payment-in-Kind Security
REIT		Real Estate Investment Trust

Footnote Legend:

⁽¹⁾	Federal Income Tax Information: For tax information at August 31, 2017, see Note 3 Federal Income Tax Information in the Notes to Schedules of Investments.

⁽²⁾

Variable rate security. Rate disclosed is as of August 31, 2017. For loan agreements, 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.

⁽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 August 31, 2017, these securities amounted to a value of $121,185 or 61.6% 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 August 31, 2017, 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⁾	Value shown as par value.

⁽¹⁰⁾	Illiquid security.

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)

⁽¹¹⁾	All or a portion of the security is segregated as collateral for written options.

⁽¹²⁾	Security in default, a portion of the interest payments are being received during the bankruptcy proceedings.

⁽¹³⁾	Non-income producing.

⁽¹⁴⁾	Security in default, no interest payments are being received during the bankruptcy proceedings.

⁽¹⁵⁾	All or a portion of the portfolio is segregated as collateral for borrowings.

⁽¹⁶⁾	Amounts are less than $500 (not reported in 000s).

⁽¹⁷⁾	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.

⁽¹⁸⁾	100% of the income received was in cash.

⁽¹⁹⁾	Security in default, interest payments are being received during the bankruptcy proceedings.

⁽²⁰⁾	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.


Foreign Currencies:
BRL		Brazilian Real
CLP		Chilean Peso
COP		Colombian Peso
IDR		Indonesian Rupiah
MXN		Mexican Peso
RUB		Russian Ruble
TRY		Turkish Lira
ZAR		South African Rand

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2017

($ reported in thousands)


Open Purchased Options
Description	# of Contracts		Notional		Exercise Price		Expiration Date		Value
S& P 500 ^® Index		683	$	174,165	$	2,550		9/1/2017	$	3
S& P 500 ^® Index		527		134,385		2,550		9/6/2017		3
S& P 500 ^® Index		528		132,000		2,500		9/8/2017		5
S& P 500 ^® Index		529		134,895		2,550		9/13/2017		10
S& P 500 ^® Index		683		155,724		2,280		9/1/2017		3
S& P 500 ^® Index		527		122,528		2,325		9/6/2017		11
S& P 500 ^® Index		528		122,760		2,325		9/8/2017		21
S& P 500 ^® Index		529		123,257		2,330		9/13/2017		53

Total Purchased Options									$	109


Open Written Options
Description	# of Contracts		Notional		Exercise Price		Expiration Date		Value
S& P 500 ^® Index		512	$	128,000	$	2,500		9/1/2017	$	(9)
S& P 500 ^® Index		527		131,750		2,500		9/6/2017		(34	)
S& P 500 ^® Index		528		132,000		2,500		9/8/2017		(60	)
S& P 500 ^® Index		529		132,250		2,500		9/13/2017		(135	)
S& P 500 ^® Index		512		119,296		2,330		9/1/ 2017		(2	)
S& P 500 ^® Index		527		125,163		2,375		9/6/2017		(2 1	)
S& P 500 ^® Index		528		125,400		2,375		9/8/2017		(37	)
S& P 500 ^® Index		529		125,902		2,380		9/13/2017		(84	)

Total Written Options									$	(382	)

See Notes to Schedules of Investments

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2017

($ reported in thousands)


Country Weightings †
United States		50%
Mexico		6
Argentina		4
Brazil		4
Colombia		3
Turkey		3
Chile		2
Other		28
Total		100%

†	% of total investments net of written options as of August 31, 2017

See Notes to Schedules of Investments

The following table provides a summary of inputs used to value the Fund’s investments as of August 31, 2017 (See Security Valuation Note 1A in the Notes to Schedule of Investments):


	Total Value at August 31, 2017			Level 1 Quoted Prices			Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs
Debt Securities:
Asset-Backed Securities	$	10,146		$	—		$	10,146		$ —
Corporate Bonds and Notes		142,903			—			142,903		—*
Foreign Government Securities		47,476			—			47,476		—
Loan Agreements		25,338			—			24,336		1,002
Mortgage-Backed Securities		22,350			—			22,350		—
Municipal Bonds		1,616			—			1,616		—
U.S. Government Securities		2,472			—			2,472		—
Equity Securities:
Common Stocks		126			107			—		19
Preferred Stocks		4,804			2,320			2,484		—
Warrants		11			—			—		11
Purchased Options		109			109			—		—
Total Investments before Written Options	$	257,351		$	2,536		$	253,783		$ 1,032
Written Options	$	(382	)	$	(382	)	$	—		$ —
Total Investments Net of Written Options	$	256,969		$	2,154		$	253,783		$ 1,032

There were no transfers between Level 1 and Level 2 related to securities held as of August 31, 2017.

*Amount is less than $500.

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.


Investments in Securities	Total			Asset- Backed Securities			Corporate Bonds and Notes			Loans Agreements			Common Stocks			Warrants

Balance as of November 30, 2016:	$	1,207		$	434		$	738		$	-		$	22		$	13
Accrued discount/(premium)		1			-			1			-	^(c)		-			-
Realized gain (loss)		2			4			(2	)		-			-			-
Change in unrealized appreciation (depreciation)^(c)		(150	)		(14	)		(122	)		(17	)		5			(2	)
Purchases		631			-			130			501			-			-
Sales^(b)		(1,177	)		(424	)		(745	)		-			(8	)		-
Transfers into Level 3 ^(a)(d)		518			-			-			518			-			-
Transfers from Level 3 ^(a)(d)		-			-			-			-			-			-

Balance as of August 31, 2017	$	1,032		$	-		$	-	^(c)(e)	$	1,002		$	19		$	11

(a)

“Transfers into and/or from” represent the ending value as of August 31, 2017, for any investment security where a change in the pricing level occurred from the beginning to the end of the period.

(b)

Includes paydowns on securities.

(c)

Amount is less than $500.

(d)

The transfers into/from Level 3 are due to an increase and/or decrease in trading activities at period end.

(e)

Includes internally fair valued securities.

Some of the Fund’s investments that are 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 inputs could result in a significantly lower or higher value of such Level 3 investments.

VIRTUS GLOBAL MULTI-SECTOR INCOME FUND

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2017

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES

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.

A. 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 the 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 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.

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, 2017

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, are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

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

Investments in open-end mutual funds are valued at 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 each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

NOTE 2 — DERIVATIVE FINANCIAL INSTRUMENTS

Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why a Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a Fund’s results of operations and financial position. Summarized below are such disclosures and accounting policies for each 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.

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, 2017

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 to cover outstanding written options are noted in the Schedule of Investments. Purchased options are reported as an asset within “Investment in securities at value” in the Statement of Assets and Liabilities. Options written are reported as a liability within “Written options outstanding at value.” Changes in value of the purchased option is included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations. Changes in value of written options is included in “Net change in unrealized appreciation (depreciation) on written options.”

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. Gain or loss on purchased options is included in “Net realized gain (loss) on investments” in the Statement of Operations. Gain or loss on written options is presented separately as “Net realized gain (loss) on written options” in the Statement of Operations. 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.”

NOTE 3 — FEDERAL INCOME TAX INFORMATION

($ reported in thousands)

At August 31, 2017, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Fund were as follows:


	Federal Tax Cost		Unrealized Appreciation	Unrealized (Depreciation)	Net Unrealized Appreciation (Depreciation)
Investments (including purchased options)		$255,853	$10,103	$(8,605)	$1,498
Written Options		(706)	446	(122)	324

The differences between book basis cost and tax basis cost were attributable primarily to the tax deferral of losses on wash sales.

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, 2017

NOTE 4 — 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. Illiquid securities are footnoted as such at the end of the Fund’s Schedule of Investments, where applicable. However, a portion of such footnoted securities could be liquid where it is determined that some, though not all, of the position could 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.

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, 2017, with an aggregate value of $30 representing 0.0% of the Fund’s net assets.

At August 31, 2017, the Fund did not hold any securities that are both illiquid and restricted.

NOTE 5 — REGULATORY MATTERS AND LITIGATION

From time to time, the Fund, the Fund’s Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, 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 Fund’s 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 6 — SUBSEQUENT EVENTS

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

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 10/26/2017

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 10/26/2017

By (Signature and Title)* /s/ W. Patrick Bradley

W. Patrick Bradley, Executive Vice President,

Chief Financial Officer, and Treasurer

(principal financial officer)

Date 10/26/2017

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