VIRTUS GLOBAL DIVIDEND & 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        811-05620                                 

            Virtus Global Dividend & Income Fund Inc.            

(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: (800) 272-2700

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 Schedule of Investments is attached herewith.


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
U.S. GOVERNMENT SECURITIES—2.8%  

U.S. Treasury Bond
2.500%, 2/15/46

  $ 3,680      $ 3,318  

3.000%, 8/15/48

    775        771  

U.S. Treasury Note
1.375%, 4/30/20

    2,885        2,828  

1.875%, 2/28/22

    735        714  
TOTAL U.S. GOVERNMENT SECURITIES

 

(Identified Cost $7,772)

 

     7,631  
MUNICIPAL BONDS—2.1%  
California—0.7%  

State of California, Build America Bonds Taxable
7.600%, 11/1/40

    1,000        1,511  

University of California, Taxable Series B-A
4.428%, 5/15/48

    290        293  
    

 

 

 
     1,804  
    

 

 

 
Idaho—0.1%  

Idaho Health Facilities Authority Saint Lukes Health System Revenue Taxable
5.020%, 3/1/48

    355        364  
    

 

 

 
New York—1.1%  

New York City Transitional Finance Authority Future Tax Secured Revenue
Series A-3
5.000%, 8/1/40

    1,235        1,409  

Port Authority of New York & New Jersey, Consolidated Bonds Revenue 5.000%, 4/15/57

    1,515        1,703  
    

 

 

 
     3,112  
    

 

 

 
Virginia—0.2%  

City of Bristol, General Obligation Taxable
4.210%, 1/1/42

    565        571  
TOTAL MUNICIPAL BONDS

 

(Identified Cost $5,897)

 

     5,851  
    PAR VALUE     VALUE  
FOREIGN GOVERNMENT SECURITIES—1.2%  

Argentine Republic
7.625%, 4/22/46

  $ 380     $ 280  

6.875%, 1/11/48

    245       171  

Dominican Republic
144A 5.950%, 1/25/27(2)

    455       464  

Kingdom of Abu Dhabi
144A 2.500%, 10/11/22(2)

    495       477  

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

    490       458  

Republic of Indonesia
144A 8.500%, 10/12/35(2)

    440       613  

Republic of South Africa 4.300%, 10/12/28

    430       378  

Sultanate of Oman
144A, 5.375%, 3/8/27(2)

    285       272  

144A, 5.625%, 1/17/28(2)

    200       191  
TOTAL FOREIGN GOVERNMENT SECURITIES

 

(Identified Cost $3,636)

 

    3,304  
MORTGAGE-BACKED SECURITIES—9.0%  
Agency—2.5%  

Federal National Mortgage Association

   

Pool #AS6947, 3.500%, 4/1/46

    3,018       3,006  

Pool #AS7244, 3.500%, 5/1/46

    2,882       2,869  

Pool #AS8483, 3.000%, 12/1/46

    773       747  

Pool #AS9393, 4.000%, 4/1/47

    155       158  
   

 

 

 
    6,780  
   

 

 

 
Non-Agency—6.5%  

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

    610       634  

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

    87       86  
 

 

See Notes to Schedules of Investments

 

 

1


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Non-Agency (continued)  

AMSR Trust
2016-SFR1, C 144A, (1 month LIBOR + 2.250%) 4.310%, 11/17/33(1)(2)

  $ 488     $ 488  

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

    100       100  

Angel Oak Mortgage Trust I LLC 2018-2, A1
144A 3.674%, 7/27/48(1)(2)

    140       140  

Bank of America (Merrill Lynch) Commercial Mortgage Securities Trust 2015-200P, A 144A 3.218%, 4/14/33(2)

    385       378  

Bayview Opportunity Master Fund IVa Trust
2016-SPL1, B1
144A, 4.250%, 4/28/55(2)

    395       402  

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

    175       177  

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

    270       272  

Citigroup Commercial Mortgage Trust 2016-SMPL, A 144A 2.228%, 9/10/31(2)

    685       684  

Colony Starwood Homes Trust 2016-2A, C 144A,
(1 month LIBOR + 2.150%) 4.213%, 12/17/33(1)(2)

    490       492  

COLT Mortgage Loan Trust Funding LLC
2016-2, A1 144A, 2.750%, 9/25/46(1)(2)

    40       40  

2017-1, A3
144A, 3.074%, 5/27/47(1)(2)

    104       104  

Credit Suisse First Boston Mortgage Securities Corp. 2003-AR30, 5A1 3.914%, 1/25/34(1)

    175       180  
    PAR VALUE     VALUE  
Non-Agency (continued)  

Deephaven Residential Mortgage Trust 2017-1A, A2 144A 2.928%, 12/26/46(1)(2)

  $ 171     $ 170  

Galton Funding Mortgage Trust 2017-1, A21
144A 3.500%, 7/25/56(1)(2)

    213       211  

Hilton USA Trust
2016-SFP, B
144A 3.323%, 11/5/35(2)

    965       949  

Home Equity Mortgage Trust 2005-2, M7,
(3 month LIBOR + 1.680%) 3.745%, 7/25/35(1)

    120       120  

JPMorgan Chase (Bear Stearns) Alternate Loan Trust 2004-5, 3A1
4.239%, 6/25/34(1)

    415       422  

JPMorgan Chase Commercial Mortgage Securities Trust 2014-C22, A4
3.801%, 9/15/47

    920       936  

JPMorgan Chase Mortgage Trust
2014-5, B2 144A,
2.988%, 10/25/29(1)(2)

    155       145  

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

    604       596  

2017-3, 2A2 144A,
2.500%, 8/25/47(1)(2)

    215       206  

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

    710       703  

MetLife Securitization Trust 2017-1A, M1 144A
3.663%, 4/25/55(1)(2)

    135       134  

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

    672       688  

2017-2A, A3
144A, 4.000%, 3/25/57(1)(2)

    198       200  

2018-1A, A1A 144A, 4.000%, 12/25/57(1)(2)

    219       221  
 

 

See Notes to Schedules of Investments

 

 

2


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Non-Agency (continued)  

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

  $ 345     $ 345  

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

    123       123  

Progress Residential Trust
2017-SFR1, B
144A, 3.017%, 8/17/34(2)

    335       326  

2018-SFR1, B
144A, 3.484%, 3/17/35(2)

    300       297  

2018-SFR2, B
144A, 3.841%, 8/17/35(2)

    185       186  

RCO Mortgage LLC
2017-1, A1
144A 3.375%, 8/25/22(2)

    342       340  

Sequoia Mortgage Trust
2013-8, B1
3.529%, 6/25/43(1)

    351       341  

Structured Adjustable Rate Mortgage Loan Trust
2004-4, 3A2
4.054%, 4/25/34(1)

    152       154  

Towd Point Mortgage Trust 2015-1, A2 144A, 3.250%, 10/25/53(1)(2)

    610       603  

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

    185       185  

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

    200       198  

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

    330       311  

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

    260       253  

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

    945       917  

Tricon American Homes Trust
2016-SFR1, C
144A, 3.487%, 11/17/33(2)

    975       962  

2017-SFR1, A
144A, 2.716%, 9/17/34(2)

    165       160  

Vericrest Opportunity Loan Trust LVI LLC
2017-NPL3, A1
144A 3.500%, 3/25/47(2)

    223       222  
    PAR VALUE     VALUE  
Non-Agency (continued)  

Vericrest Opportunity Loan Trust LX LLC
2017-NPL7, A1
144A 3.250%, 6/25/47(2)

  $ 146     $ 145  

Vericrest Opportunity Loan Trust LXIII LLC
2017-NP10, A1
144A 3.000%, 10/25/47(2)

    62       61  

Verus Securitization Trust 2017-2A, A1
144A, 2.485%, 7/25/47(1)(2)

    335       328  

2018-1, A1
144A, 2.929%, 2/25/48(1)(2)

    242       239  

2018-2, A1
144A, 3.677%, 6/1/58(1)(2)

    421       421  

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

    675       660  
   

 

 

 
        17,655  
TOTAL MORTGAGE-BACKED SECURITIES

 

(Identified Cost $25,027)             24,435  
ASSET-BACKED SECURITIES—4.3%  
Auto Floor Plan—0.4%  

Navistar Financial Dealer Note Master Owner
Trust II 2016-1, B 144A,
(1 month LIBOR + 1.750%)
3.815%, 9/27/21(1)(2)

    780       781  

NextGear Floorplan Master Owner Trust 2018-1A, A2
144A 3.220%, 2/15/23(2)

    355       353  
   

 

 

 
    1,134  
   

 

 

 
Automobiles—2.4%  

ACC Trust 2018-1, A
144A 3.700%, 12/21/20(2)

    279       279  

American Credit Acceptance Receivables Trust 2017-2, C
144A 2.860%, 6/12/23(2)

    430       429  
 

 

See Notes to Schedules of Investments

 

 

3


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Automobiles (continued)  

Centre Point Funding LLC 2012-2A, 1
144A 2.610%, 8/20/21(2)

  $ 436     $ 431  

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

    505       504  

Exeter Automobile Receivables Trust 2015-2A, C
144A, 3.900%, 3/15/21(2)

    580       583  

2016-3A, B
144A, 2.840%, 8/16/21(2)

    685       684  

First Investors Auto Owner Trust 2017-2A, B
144A 2.650%, 11/15/22(2)

    415       410  

Flagship Credit Auto Trust 2017-3, C
144A 2.910%, 9/15/23(2)

    505       498  

Foursight Capital Automobile Receivables Trust 2017-1, B
144A 3.050%, 12/15/22(2)

    400       395  

GLS Auto Receivables Trust 2017-1A, B
144A 2.980%, 12/15/21(2)

    525       521  

OneMain Direct Auto Receivables Trust 2017-2A, C
144A 2.820%, 7/15/24(2)

    415       409  

Prestige Auto Receivables Trust 2017-1A, C
144A 2.810%, 1/17/23(2)

    505       496  

Santander Drive Auto Receivables Trust 2016-1, C
3.090%, 4/15/22

    290       291  

Westlake Automobile Receivables Trust 2017-2A, C
144A 2.590%, 12/15/22(2)

    505       501  
   

 

 

 
    6,431  
   

 

 

 
Other—1.3%  

AXIS Equipment Finance Receivables IV LLC 2018-1A, A2
144A 3.240%, 12/20/23(2)

    355       354  
    PAR VALUE     VALUE  
Other (continued)  

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

  $ 422     $ 415  

Dell Equipment Finance Trust 2017-2, A3
144A 2.190%, 10/24/22(2)

    390       386  

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

    254       253  

Drug Royalty II LP 2 2014-1, A2
144A 3.484%, 7/15/23(2)

    133       132  

Mariner Finance Issuance Trust 2017-AA, A
144A 3.620%, 2/20/29(2)

    425       426  

OneMain Financial Issuance Trust 2015-1A, A
144A 3.190%, 3/18/26(2)

    237       238  

Prosper Marketplace Issuance Trust
2017-2A, B
144A, 3.480%, 9/15/23(2)

    420       419  

2018-1A, A
144A, 3.110%, 6/17/24(2)

    253       253  

SoFi Consumer Loan Program LLC
2016-3, A
144A, 3.050%, 12/26/25(2)

    189       188  

2017-1, A
144A, 3.280%, 1/26/26(2)

    224       224  

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

    414       415  
   

 

 

 
    3,703  
   

 

 

 
Student Loans—0.2%  

Laurel Road Prime Student Loan Trust 2017-B, A2FX
144A 2.770%, 8/25/42(2)

    505       493  
TOTAL ASSET-BACKED SECURITIES

 

(Identified Cost $11,834)             11,761  
CORPORATE BONDS AND NOTES—25.2%  
Consumer Discretionary—2.7%  

Altice France S.A.
144A 7.375%, 5/1/26(2)

    200       197  

Beazer Homes USA, Inc.
6.750%, 3/15/25

    250       234  
 

 

See Notes to Schedules of Investments

 

 

4


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Consumer Discretionary (continued)  

Charter Communications Operating LLC
4.908%, 7/23/25

  $ 430     $ 438  

CSC Holdings LLC
144A 5.375%, 2/1/28(2)

    300       288  

Discovery Communications LLC
3.950%, 3/20/28

    405       385  

DISH DBS Corp.
5.875%, 7/15/22

    295       283  

Dollar General Corp.
4.125%, 5/1/28

    405       404  

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

    175       179  

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

    135       143  

GLP Capital LP
5.750%, 6/1/28

    395       419  

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

    310       317  

Horton (D.R.), Inc.
4.750%, 2/15/23

    510       524  

Lear Corp.
3.800%, 9/15/27

    505       476  

Lennar Corp.
5.250%, 6/1/26

    290       287  

4.750%, 11/29/27

    275       262  

Live Nation Entertainment, Inc.
144A 5.625%, 3/15/26(2)

    275       276  

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

    155       158  

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

    295       299  

PulteGroup, Inc.
6.375%, 5/15/33

    280       273  

QVC, Inc.
4.375%, 3/15/23(4)

    665       657  

Tenneco, Inc.
5.000%, 7/15/26

    305       271  

TRI Pointe Group, Inc.
5.875%, 6/15/24

    210       209  

Wyndham Worldwide Corp.
4.500%, 4/1/27

    280       268  
   

 

 

 
    7,247  
   

 

 

 
    PAR VALUE     VALUE  
Consumer Staples—0.8%  

Bacardi Ltd.
144A 4.700%, 5/15/28(2)

  $ 345     $ 344  

CVS Health Corp.
2.875%, 6/1/26(4)

    700       642  

4.300%, 3/25/28

    311       309  

Flowers Foods, Inc.
4.375%, 4/1/22(4)

    330       337  

Kraft Heinz Foods Co. (The)
3.000%, 6/1/26

    420       383  

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

    235       224  
   

 

 

 
    2,239  
   

 

 

 
Energy—2.6%  

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

    215       259  

Andeavor Logistics LP
4.250%, 12/1/27(4)

    420       414  

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

    115       110  

Crestwood Midstream Partners LP
5.750%, 4/1/25

    270       276  

Enbridge Energy Partners LP
5.875%, 10/15/25

    430       473  

Energy Transfer Partners LP
4.200%, 4/15/27

    430       417  

EP Energy LLC
144A 8.000%, 11/29/24(2)

    145       145  

Helmerich & Payne International Drilling Co.
4.650%, 3/15/25

    290       300  

HollyFrontier Corp.
5.875%, 4/1/26(4)

    480       517  

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

    220       217  

Kinder Morgan Energy Partners LP
7.500%, 11/15/40(4)

    615       758  

MPLX LP
4.875%, 12/1/24(4)

    695       722  

NuStar Logistics LP
5.625%, 4/28/27

    320       319  

Range Resources Corp.
5.000%, 3/15/23

    210       205  
 

 

See Notes to Schedules of Investments

 

 

5


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Energy (continued)  

Sabine Pass Liquefaction LLC
6.250%, 3/15/22

  $ 355     $ 382  

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

    445       469  

Sunoco LP
144A, 4.875%, 1/15/23(2)

    140       138  

144A, 5.500%, 2/15/26(2)

    145       139  

TransMontaigne Partners LP
6.125%, 2/15/26

    120       113  

Transocean Guardian Ltd.
144A 5.875%, 1/15/24(2)

    110       110  

USA Compression Partners LP
144A 6.875%, 4/1/26(2)

    140       144  

Valero Energy Partners LP
4.500%, 3/15/28

    330       330  
   

 

 

 
    6,957  
   

 

 

 
Financials—8.6%  

AerCap Ireland Capital Ltd.
3.950%, 2/1/22

    495       495  

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

    485       506  

Apollo Management Holdings LP
144A 4.000%, 5/30/24(2)(4)

    475       476  

Ares Capital Corp.
3.500%, 2/10/23

    175       168  

4.250%, 3/1/25(4)

    325       314  

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

    675       639  

Athene Holding Ltd.
4.125%, 1/12/28

    395       371  

Aviation Capital Group LLC
144A 3.500%, 11/1/27(2)

    410       378  

Banco Bilbao Vizcaya Argentaria Bancomer S.A.
144A 5.125%, 1/18/33(2)

    325       297  

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

    740       679  

Bank of America Corp.
3.004%, 12/20/23

    339       330  

4.200%, 8/26/24

    938       942  
    PAR VALUE     VALUE  
Financials (continued)  

Bank of Montreal
3.803%, 12/15/32

  $ 621     $ 584  

BrightSphere Investment Group plc
4.800%, 7/27/26

    495       483  

Brookfield Finance LLC
4.000%, 4/1/24

    598       596  

Capital One Financial Corp.
4.200%, 10/29/25(4)

    450       443  

3.750%, 7/28/26(4)

    545       511  

Citigroup, Inc.
5.500%, 9/13/25

    2,200       2,343  

Compass Bank
3.875%, 4/10/25(4)

    625       606  

FS Investment Corp.
4.250%, 1/15/20

    410       411  

4.750%, 5/15/22

    100       100  

Goldman Sachs Group, Inc. (The)
5.750%, 1/24/22(4)

    455       486  

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

    436       437  

ICAHN Enterprises LP
6.375%, 12/15/25

    285       289  

Jefferies Financial Group, Inc.
5.500%, 10/18/23

    375       390  

Jefferies Group LLC

   

6.875%, 4/15/21

    59       64  

5.125%, 1/20/23

    95       99  

4.850%, 1/15/27

    250       248  

JPMorgan Chase & Co.
3.300%, 4/1/26(4)

    920       887  

Kazakhstan Temir Zholy Finance BV
144A 6.950%, 7/10/42(2)

    535       586  

Liberty Mutual Group, Inc.
144A 4.250%, 6/15/23(2)(4)

    610       620  

Macquarie Group Ltd.
144A 6.250%, 1/14/21(2)(4)

    520       552  

Manulife Financial Corp.
4.150%, 3/4/26(4)

    540       548  

Morgan Stanley
4.100%, 5/22/23

    385       388  

3.125%, 7/27/26

    955       892  

Navient Corp.
7.250%, 9/25/23

    100       105  

6.750%, 6/25/25

    210       209  
 

 

See Notes to Schedules of Investments

 

 

6


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Financials (continued)  

Prudential Financial, Inc.
5.875%, 9/15/42

  $ 165     $ 176  

5.625%, 6/15/43(6)

    400       418  

Santander Holdings USA, Inc.
3.700%, 3/28/22

    425       422  

4.400%, 7/13/27

    185       180  

Societe Generale S.A.
144A 4.750%, 11/24/25(2)(4)

    500       499  

Springleaf Finance Corp.
6.875%, 3/15/25

    180       180  

Synchrony Financial
3.950%, 12/1/27

    360       328  

Trinity Acquisition plc
4.400%, 3/15/26

    200       200  

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

    430       315  

UBS AG
7.625%, 8/17/22(4)

    1,235       1,372  

Wells Fargo & Co.
3.550%, 9/29/25

    285       279  

Series S, 5.900%(4)(5)

    585       593  
   

 

 

 
    23,434  
   

 

 

 
Health Care—2.0%  

AbbVie, Inc.
3.600%, 5/14/25

    485       473  

3.200%, 5/14/26

    305       287  

Allergan Sales LLC
144A 4.875%, 2/15/21(2)

    184       190  

AmerisourceBergen Corp.
3.450%, 12/15/27

    335       314  

Anthem, Inc.
3.650%, 12/1/27

    126       120  

4.101%, 3/1/28

    365       358  

Bausch Health Cos., Inc.
144A, 6.500%, 3/15/22(2)

    25       26  

144A, 7.000%, 3/15/24(2)

    40       42  

144A, 5.500%, 11/1/25(2)

    210       209  

Becton Dickinson & Co.
3.363%, 6/6/24

    89       86  

3.700%, 6/6/27

    370       354  

Cardinal Health, Inc.
3.200%, 3/15/23

    325       316  

3.410%, 6/15/27

    185       170  
    PAR VALUE     VALUE  
Health Care (continued)  

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

  $ 65     $ 67  

Elanco Animal Health Inc
144A 4.900%, 8/28/28(2)

    80       81  

Endo Dac
144A 6.000%, 7/15/23(2)

    275       237  

Envision Healthcare Corp.
144A 6.250%, 12/1/24(2)

    85       91  

HCA, Inc.
5.375%, 2/1/25

    175       177  

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

    200       203  

Mylan, Inc.
4.200%, 11/29/23(4)

    500       498  

Surgery Center Holdings, Inc.
144A 8.875%, 4/15/21(2)

    255       266  

Tenet Healthcare Corp.
4.625%, 7/15/24

    150       147  

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

    145       120  

Zimmer Biomet Holdings, Inc.
3.550%, 4/1/25(4)

    665       641  
   

 

 

 
    5,473  
   

 

 

 
Industrials—0.9%  

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

    345       333  

CNH Industrial N.V.
4.500%, 8/15/23

    359       366  

3.850%, 11/15/27

    222       213  

Masco Corp.
5.950%, 3/15/22

    213       229  

4.450%, 4/1/25

    140       142  

Oshkosh Corp.
4.600%, 5/15/28

    459       461  

Owens Corning
3.400%, 8/15/26(4)

    495       459  

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

    410       374  
   

 

 

 
    2,577  
   

 

 

 
Information Technology—1.3%  

Arrow Electronics, Inc.
3.875%, 1/12/28

    420       397  
 

 

See Notes to Schedules of Investments

 

 

7


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Information Technology (continued)  

Broadcom Corp.
3.000%, 1/15/22

  $ 185     $ 180  

3.625%, 1/15/24

    340       329  

CDK Global, Inc.
5.875%, 6/15/26

    275       282  

Citrix Systems, Inc.
4.500%, 12/1/27

    380       369  

Dell International LLC
144A, 6.020%, 6/15/26(2)

    100       106  

144A, 8.100%, 7/15/36(2)

    230       272  

Hewlett Packard Enterprise Co.
4.900%, 10/15/25

    330       340  

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

    325       310  

Verisk Analytics, Inc.
4.000%, 6/15/25

    470       466  

VMware, Inc.
2.950%, 8/21/22

    216       210  

3.900%, 8/21/27

    233       221  
   

 

 

 
    3,482  
   

 

 

 
Materials—1.8%  

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

    525       484  

ArcelorMittal
6.125%, 6/1/25

    305       332  

BHP Billiton Finance USA Ltd. 144A 6.750%, 10/19/75(2)(6)

    410       450  

CRH America Finance, Inc.
144A 3.400%, 5/9/27(2)

    425       401  

Glencore Funding LLC
144A 4.000%, 3/27/27(2)

    425       399  

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

    295       296  

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

    935       937  

NOVA Chemicals Corp.
144A, 4.875%, 6/1/24(2)

    155       152  

144A, 5.000%, 5/1/25(2)

    205       198  

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

    430       271  

Syngenta Finance N.V.
144A 4.441%, 4/24/23(2)

    430       431  
    PAR VALUE     VALUE  
Materials (continued)  

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

  $ 235     $ 234  

Vulcan Materials Co.
3.900%, 4/1/27

    425       409  
   

 

 

 
    4,994  
   

 

 

 
Real Estate—2.1%  

Alexandria Real Estate Equities, Inc.
3.950%, 1/15/27

    300       292  

Corporate Office Properties LP
3.600%, 5/15/23(4)

    660       643  

EPR Properties
4.750%, 12/15/26

    620       613  

Healthcare Trust of America Holdings LP
3.750%, 7/1/27

    435       414  

Hospitality Properties Trust
4.950%, 2/15/27

    510       507  

Kilroy Realty LP
4.375%, 10/1/25

    475       479  

LifeStorage LP
3.500%, 7/1/26

    455       427  

3.875%, 12/15/27

    165       157  

MPT Operating Partnership LP
6.375%, 3/1/24

    50       53  

5.500%, 5/1/24

    190       192  

5.000%, 10/15/27

    170       167  

National Retail Properties, Inc.
4.000%, 11/15/25

    150       149  

Physicians Realty LP
3.950%, 1/15/28

    435       411  

Select Income REIT
4.500%, 2/1/25

    470       456  

Welltower, Inc.
4.000%, 6/1/25(4)

    500       496  

WP Carey, Inc.
4.600%, 4/1/24(4)

    400       406  
   

 

 

 
    5,862  
   

 

 

 
Telecommunication Services—1.4%  

AT&T, Inc.
144A 6.375%, 6/1/28(2)

    2,000       2,162  
 

 

See Notes to Schedules of Investments

 

 

8


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Telecommunication Services (continued)  

Frontier Communications Corp.
7.625%, 4/15/24

  $ 310     $ 195  

144A, 8.500%, 4/1/26(2)

    125       118  

Sprint Spectrum Co., LLC
144A 3.360%, 9/20/21(2)

    163       162  

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

    400       374  

Verizon Communications, Inc.
4.125%, 3/16/27

    715       718  
   

 

 

 
    3,729  
   

 

 

 
Utilities—1.0%  

Duke Energy Corp.
2.650%, 9/1/26

    505       459  

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

    410       388  

Exelon Corp.
3.497%, 6/1/22

    605       598  

FirstEnergy Transmission LLC
144A 4.350%, 1/15/25(2)

    520       529  

PSEG Power LLC
3.850%, 6/1/23

    118       118  

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

    500       508  

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

    215       201  

Vistra Operations Co., LLC
144A 5.500%, 9/1/26(2)

    45       46  
   

 

 

 
        2,847  
TOTAL CORPORATE BONDS AND NOTES

 

(Identified Cost $71,227)

 

    68,841  
LEVERAGED LOANS(1)—3.5%  
Aerospace—0.0%  

TransDigm, Inc. Tranche E, (1 month LIBOR + 2.500%)
4.576%, 5/30/25

    125       124  
   

 

 

 
    PAR VALUE      VALUE  
Consumer Durables—0.1%  

Fluidra, S.A., (1 month LIBOR + 2.250%)
4.326%, 7/2/25

  $ 70      $ 70  

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

    144        143  
    

 

 

 
     213  
    

 

 

 
Consumer Non-Durables—0.1%  

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

    40        40  

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

    280        278  
    

 

 

 
     318  
    

 

 

 
Financial—0.0%  

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

    50        50  

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

    10        10  
    

 

 

 
     60  
    

 

 

 
Food and Drug—0.1%  

Albertson’s LLC
Tranche B-4, (1 month LIBOR + 2.750%)
4.826%, 8/25/21

    255        255  
    

 

 

 
Food/Tobacco—0.2%  

Aramark Intermediate HoldCo Corp.
Tranche B-3, (3 month LIBOR + 1.750%)
4.084%, 3/11/25

    165        165  

CHG PPC Parent LLC First Lien, (1 month LIBOR + 2.750%)
4.826%, 3/31/25

    140        139  
 

 

See Notes to Schedules of Investments

 

 

9


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Food/Tobacco (continued)  

H-Food Holdings, LLC,
(1 month LIBOR + 3.000%)
5.065%, 5/23/25

  $ 35      $ 35  

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

    252        252  
    

 

 

 
     591  
    

 

 

 
Gaming/Leisure—0.6%  

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

    288        287  

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

    45        45  

GVC Holdings plc Tranche B-2, (1 month LIBOR + 2.500%)
4.576%, 3/29/24

    185        185  

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

    213        211  

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

    209        209  

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

    268        269  

Station Casinos LLC Tranche B, (1 month LIBOR + 2.500%)
4.580%, 6/8/23

    241        241  

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

    350        350  
    

 

 

 
     1,797  
    

 

 

 
    PAR VALUE      VALUE  
Healthcare—0.3%  

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

  $ 44      $ 45  

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

    297        298  

Endo Luxembourg Finance Co. S.a.r.l., (1 month LIBOR + 4.250%)
6.375%, 4/29/24

    124        124  

Iqvia, Inc. Tranche B-3, (3 month LIBOR + 1.750%)
4.084%, 6/11/25

    275        275  

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

    132        133  
    

 

 

 
     875  
    

 

 

 
Housing—0.3%  

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

    349        348  

Capital Automotive LP Tranche B-2, (1 month LIBOR + 2.500%)
4.580%, 3/25/24

    380        380  
    

 

 

 
     728  
    

 

 

 
Information Technology—0.3%  

BMC Software Finance, Inc., (3 month LIBOR + 4.250%)
0.000%, 9/1/25(9)

    285        285  

Rackspace Hosting, Inc. Tranche B, (3 month LIBOR + 3.000%)
5.265%, 11/3/23

    388        385  
 

 

See Notes to Schedules of Investments

 

 

10


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE      VALUE  
Information Technology (continued)  

Renaissance Holding Corp. First Lien, (3 month LIBOR + 3.250%)
5.584%, 5/30/25

  $ 60      $ 60  
    

 

 

 
     730  
    

 

 

 
Manufacturing—0.1%  

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

    171        172  
    

 

 

 
Media/Telecom - Cable/Wireless Video—0.2%  

Altice US Finance I Corp. 2017 Refinancing, (1 month LIBOR + 2.250%) 4.326%, 7/28/25

    279        279  

Telenet Financing USD LLC, (1 month LIBOR + 2.250%) 4.313%, 8/15/26

    210        207  
    

 

 

 
     486  
    

 

 

 
Media/Telecom - Diversified Media—0.1%  

Crown Finance US, Inc., (1 month LIBOR + 2.500%) 4.576%, 2/28/25

    294        293  
    

 

 

 
Media/Telecom - Telecommunications—0.3%  

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

    638        630  

Level 3 Financing, Inc. Tranche B, (1 month LIBOR + 2.250%)
4.317%, 2/22/24

    335        335  
    

 

 

 
     965  
    

 

 

 
    PAR VALUE      VALUE  
Media/Telecom - Wireless
Communications—0.1%
 

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

  $ 25      $ 23  

SBA Senior Finance II LLC, (1 month LIBOR + 2.000%) 4.080%, 4/11/25

    155        155  
    

 

 

 
     178  
    

 

 

 
Metals/Minerals—0.1%  

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

    210        207  
    

 

 

 
Service—0.2%  

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

    250        252  

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

    193        193  
    

 

 

 
     445  
    

 

 

 
Transportation - Automotive—0.1%  

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

    219        219  
    

 

 

 
Utility—0.3%  

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

    220        221  

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

    244        243  
 

 

See Notes to Schedules of Investments

 

 

11


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    PAR VALUE     VALUE  
Utility (continued)  

Vistra Operations Co., LLC

   

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

  $ 160     $ 160  

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

    160       160  
   

 

 

 
        784  
TOTAL LEVERAGED LOANS
(Identified Cost $9,459)

 

    9,440  
    SHARES        
PREFERRED STOCKS—1.0%  
Financials—1.0%  

Huntington Bancshares, Inc.
Series E, 5.700%

    280 (7)       279  

JPMorgan Chase & Co.
Series Z, 5.300%(4)

    550 (7)       562  

KeyCorp
Series D, 5.000%(8)

    270 (7)       266  

M&T Bank Corp.
Series F, 5.125%(8)

    355 (7)       353  

MetLife, Inc.
Series D, 5.875%

    156 (7)       161  

PNC Financial Services Group, Inc. (The)
Series R, 4.850%(4)

    535 (7)       536  

Series S, 5.000%(4)

    485 (7)       485  
TOTAL PREFERRED STOCKS

 

(Identified Cost $2,663)

 

    2,642  
COMMON STOCKS—83.8%  
Consumer Discretionary—3.5%  

Compass Group plc Sponsored ADR

    113,578       2,479  

Las Vegas Sands Corp.

    108,110       7,073  
   

 

 

 
    9,552  
   

 

 

 
Consumer Staples—9.4%  

Altria Group, Inc.

    71,157       4,164  

British American Tobacco plc Sponsored ADR

    47,279       2,287  
    SHARES      VALUE  
Consumer Staples (continued)  

Clorox Co. (The)

    39,680      $ 5,753  

Coca-Cola Co. (The)

    158,980        7,086  

Imperial Brands plc

    57,340        2,040  

Imperial Brands plc Sponsored ADR

    121,477        4,317  
    

 

 

 
     25,647  
    

 

 

 
Energy—8.8%  

Royal Dutch Shell plc Class B Sponsored ADR

    154,140        10,386  

TOTAL S.A. Sponsored ADR

    108,830        6,828  

Vermilion Energy, Inc.

    214,518        6,800  
    

 

 

 
     24,014  
    

 

 

 
Financials—15.2%  

Bank of Hawaii Corp.

    36,520        3,036  

HSBC Holdings plc

    243,930        2,115  

HSBC Holdings plc Sponsored ADR

    156,755        6,899  

Royal Bank of Canada

    99,109        7,881  

Sabre Insurance Group plc

    968,000        3,489  

SCOR SE Sponsored ADR

    1,329,587        5,318  

Tokio Marine Holdings, Inc.

    86,870        4,095  

Zurich Insurance Group AG ADR

    283,280        8,620  
    

 

 

 
     41,453  
    

 

 

 
Health Care—8.7%  

AstraZeneca plc Sponsored ADR

    120,270        4,611  

GlaxoSmithKline plc

    94,260        1,907  

GlaxoSmithKline plc Sponsored ADR

    172,460        6,985  

Merck & Co., Inc.

    97,430        6,683  

Sonic Healthcare Ltd. Sponsored ADR

    190,944        3,614  
    

 

 

 
     23,800  
    

 

 

 
Industrials—6.6%  

ABB Ltd. Registered Shares

    205,410        4,843  

Air New Zealand Ltd.

    1,988,670        4,342  

Port of Tauranga Ltd.

    558,800        1,874  

Waste Management, Inc.

    26,660        2,423  
 

 

See Notes to Schedules of Investments

 

 

12


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

    SHARES     VALUE  
Industrials (continued)  

Watsco, Inc.

    26,260     $ 4,595  
   

 

 

 
    18,077  
   

 

 

 
Information Technology—4.7%  

Analog Devices, Inc.

    31,150       3,079  

Cisco Systems, Inc.

    48,830       2,333  

Paychex, Inc.

    44,110       3,231  

Tieto OYJ

    129,880       4,215  
   

 

 

 
    12,858  
   

 

 

 
Materials—2.3%  

Sonoco Products Co.

    109,440       6,133  
   

 

 

 
Real Estate—7.5%  

Crown Castle International Corp.

    51,970       5,926  

Lamar Advertising Co. Class A

    103,142       7,947  

Realty Income Corp.

    109,745       6,428  
   

 

 

 
    20,301  
   

 

 

 
Telecommunication Services—9.8%  

AT&T, Inc.

    202,083       6,454  

BCE, Inc.

    238,830       9,737  

Spark New Zealand Ltd.

    3,997,540       10,553  
   

 

 

 
    26,744  
   

 

 

 
Utilities—7.3%  

Duke Energy Corp.

    93,300       7,580  

Fortis, Inc.

    190,730       6,241  

WEC Energy Group, Inc.

    89,850       6,072  
   

 

 

 
        19,893  
TOTAL COMMON STOCKS
(Identified Cost $222,976)

 

    228,472  
EXCHANGE-TRADED FUND—0.3%  

iShares iBoxx High Yield Corporate Bond Index Fund(10)

    8,200       708  
TOTAL EXCHANGE-TRADED FUND
(Identified Cost $701)

 

    708  
TOTAL LONG-TERM INVESTMENTS—133.2%

 

(Identified Cost $361,192)

 

    363,085 (11)  
             
    SHARES      VALUE  
SHORT-TERM INVESTMENTS—2.0%  
Purchased Options—0.1%  

(See the open purchased options table on page 15 for the detailed information)

                
TOTAL PURCHASED OPTIONS—0.1%

 

(Premiums Paid $582)

 

   $ 294  
Money Market Mutual Fund—1.9%  

Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.840%)(10)

    5,237,538        5,238 (11)  
TOTAL SHORT-TERM INVESTMENTS

 

(Identified Cost $5,820)

 

     5,532  
TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—135.2%

 

(Identified Cost $367,012)

 

     368,617  
WRITTEN OPTIONS—(0.3)%  

(See the open written options table on page 15 for the detailed information)

                
TOTAL WRITTEN OPTIONS—(0.3)%

 

(Premiums Received $1,203)

 

     (738
TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—134.9%

 

(Identified Cost $365,809)

 

     367,879  

Other assets and liabilities,
net—(34.9)%

       (95,109
    

 

 

 
NET ASSETS—100.0%      $272,770  
    

 

 

 

Abbreviations

ADR

American Depositary Receipt

LIBOR

London Interbank Offered Rate

REIT

Real Estate Investment Trust

 

 

See Notes to Schedules of Investments

 

 

13


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

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 $47,509 or 17.4% 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) 

Value shown as par value.

(8) 

Interest may be forfeited.

(9) 

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.

(10) 

Shares of this fund are publicly offered and its prospectus and annual reports are publicly available.

(11) 

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

 

Country Weightings        

United States

     59

United Kingdom

     13  

Canada

     9  

New Zealand

     5  

Switzerland

     4  

France

     3  

Australia

     1  

Other

     6  

Total

     100

 

 

% of total investments net of written options as of August 31, 2018.

 

 

 

See Notes to Schedules of Investments

 

 

14


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ reported in thousands)

 

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

     464      $ 139,200      $ 3,000        9/4/18      $ 2  

S&P 500® Index

     631        188,669        2,990        9/5/18        6  

S&P 500® Index

     151        45,225        2,995        9/7/18        3  

S&P 500® Index

     504        152,712        3,030        9/10/18        1  

S&P 500® Index

     689        208,767        3,030        9/12/18        3  

S&P 500® Index

     151        45,904        3,040        9/14/18        8  
              

 

 

 
                 23  
              

 

 

 

Put Options

              

S&P 500® Index

     464        125,280        2,700        9/4/18        10  

S&P 500® Index

     631        171,632        2,720        9/5/18        38  

S&P 500® Index

     151        41,374        2,740        9/7/18        14  

S&P 500® Index

     504        138,852        2,755        9/10/18        64  

S&P 500® Index

     689        190,164        2,760        9/12/18        107  

S&P 500® Index

     151        41,676        2,760        9/14/18        38  
              

 

 

 
                 271  
                                              

Total Purchased Options

 

            $ 294  
              

 

 

 

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

     464      $ 136,184      $ 2,935        9/4/18      $ (8

S&P 500® Index

     631        184,883        2,930        9/5/18        (65

S&P 500® Index

     151        44,470        2,945        9/7/18        (15

S&P 500® Index

     504        149,688        2,970        9/10/18        (27

S&P 500® Index

     689        204,978        2,975        9/12/18        (48

S&P 500® Index

     151        45,149        2,990        9/14/18        (11
              

 

 

 
                 (174
              

 

 

 

Put Options

              

S&P 500® Index

     464        128,296        2,765        9/4/18        (14

S&P 500® Index

     631        175,418        2,780        9/5/18        (29

S&P 500® Index

     151        42,129        2,790        9/7/18        (18

S&P 500® Index

     504        141,876        2,815        9/10/18        (153

S&P 500® Index

     689        193,954        2,815        9/12/18        (289

S&P 500® Index

     151        42,431        2,810        9/14/18        (61
              

 

 

 
                 (564
                                              

Total Written Options

 

            $ (738
              

 

 

 

Footnote Legend:

(1) 

Strike price not reported in thousands.

 

See Notes to Schedules of Investments

 

15


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

AUGUST 31, 2018

($ 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
 

Debt Securities:

      

Asset-Backed Securities

   $ 11,761     $         —     $ 11,761  

Corporate Bonds And Notes

     68,841             68,841  

Foreign Government Securities

     3,304             3,304  

Leveraged Loans

     9,440             9,440  

Mortgage-Backed Securities

     24,435             24,435  

Municipal Bonds

     5,851             5,851  

U.S. Government Securities

     7,631             7,631  

Equity Securities:

      

Common Stocks

     228,472       228,472        

Preferred Stocks

     2,642             2,642  

Exchange-Traded Fund

     708       708        

Money Market Mutual Fund

     5,238       5,238        

Purchased Options

     294       182       112  
  

 

 

   

 

 

   

 

 

 

Total Investments before Written Options

   $ 368,617     $ 234,600     $ 134,017  
  

 

 

   

 

 

   

 

 

 

Written Options

   $ (738   $ (738   $  
  

 

 

   

 

 

   

 

 

 

Total Investments Net of Written Options

   $ 367,879     $ 233,862     $ 134,017  
  

 

 

   

 

 

   

 

 

 

There were no securities valued using significant unobservable inputs (Level 3) at August 31, 2018.

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

 

See Notes to Schedules of Investments

 

16


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS

AUGUST 31, 2018 (Unaudited)

 

Note 1. Significant Accounting Policies

Virtus Global Dividend & Income Fund Inc. is a closed-end, diversified management investment company registered under the Investment Company Act of 1940 (the “Act”). The Fund follows the accounting and reporting guidance of of Accounting Standards Codification Topic 946 applicable to Investment Companies.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its Schedule of Investments and, for derivatives, included in Note 2 below. The preparation of the Schedule of Investments in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Directors of the Fund (the “Board”, or the “Directors”). 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.

 

17


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

AUGUST 31, 2018 (Unaudited)

 

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.

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 ADRs, 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 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, such as options, 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 and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is 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

 

18


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

AUGUST 31, 2018 (Unaudited)

 

methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

  B.

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 loan agreement. 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 loans 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

 

19


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

AUGUST 31, 2018 (Unaudited)

 

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 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 loans by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

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

($ reported in thousands)

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

 

20


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

AUGUST 31, 2018 (Unaudited)

 

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 $544, and the average daily premiums received by the Fund for written options were $1,103.

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.

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

Note 4. Regulatory Matters And Litigation

From time to time, Virtus Investment Advisers, LLC (“VIA”), the Fund’s Adviser, Kayne Anderson Rudnick Investment Management Co. (“KAR”) and Newfleet Asset Management LLC (“Newfleet”) the Fund’s subadvisers and/or their respective 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.

 

21


VIRTUS GLOBAL DIVIDEND & INCOME FUND INC.

NOTES TO SCHEDULE OF INVESTMENTS (Continued)

AUGUST 31, 2018 (Unaudited)

 

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.

 

22


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 Rules 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 Dividend & Income Fund Inc.                                                         

 

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.