Investment objective & strategy
As of April 23, 2025 · prospectusObjective. The fund has an investment objective of seeking to maximize long term total return through a combination of current income and capital appreciation, consistent with capital preservation.
Strategy. The fund invests in various types of income-producing debt instruments including mortgage- and asset-backed securities, government and agency obligations, corporate obligations and floating rate loans. The fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market debt. The funds investment in non-U.S. issuers may at times be significant. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities. These securities will be chosen from the broad universe of available fixed income obligations rated investment grade, or unrated instruments that the subadviser believes are of comparable quality. There are no limits on the funds average-weighted maturity or on the remaining maturities of individual instruments … The fund invests in various types of income-producing debt instruments including mortgage- and asset-backed securities, government and agency obligations, corporate obligations and floating rate loans. The fund may invest in debt obligations of U.S. and non-U.S. issuers, including emerging market debt. The funds investment in non-U.S. issuers may at times be significant. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities. These securities will be chosen from the broad universe of available fixed income obligations rated investment grade, or unrated instruments that the subadviser believes are of comparable quality. There are no limits on the funds average-weighted maturity or on the remaining maturities of individual instruments in which the fund may invest. The fund may invest up to 20% of its net assets in below investment grade, high yield debt obligations (sometimes referred to as junk bonds). The fund may also invest a portion of its assets in instruments that are restricted as to resale. As a result of its investment strategy, the funds portfolio turnover rate may be 100% or more. The subadviser anticipates that the funds modified-adjusted duration will mirror that of the Bloomberg U.S. Aggregate Bond Index, plus or minus 20%. For example, if the duration of the Bloomberg U.S. Aggregate Bond Index is 5 years, the funds duration may be 4 to 6 years. As of December 31, 2024,, the duration of the Bloomberg U.S. Aggregate Bond Index was 6.08 years. Duration measures a bond or funds sensitivity to interest rate or other changes (such as changes in a bonds yield) and is expressed as a number of years. The higher the number, the greater the risk. Under normal circumstances, for example, if a portfolio has a duration of 5 years, its value will change by 5% if yields change by 1%. Shorter duration bonds generally result in lower expected volatility. In selecting investments for purchase and sale, the subadviser generally selects a greater weighting in corporate obligations and mortgage-backed securities relative to the funds comparative benchmark, and a lower relative weighting in U.S. Treasury and government agency issues. In addition, to implement its investment strategy, the fund may buy or sell derivative instruments (such as foreign currency forward contracts, swaps, including credit default swaps, futures, credit linked notes, options, inverse floaters and warrants) to use as a substitute for a purchase or sale of a position in the underlying assets and/or as part of a strategy designed to reduce exposure to other risks, such as interest rate or credit risks. The fund may also utilize Treasury Inflation Protected Securities (TIPS) opportunistically. The fund may count the value of certain derivatives with investment grade fixed income characteristics towards its policy to invest, under normal circumstances, at least 80% of its net assets in fixed income securities.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| US TREASURY N/B | — | $8.28M | 9.42% |
| US TREASURY N/B | — | $7.91M | 9.00% |
| US TREASURY N/B | — | $5.71M | 6.49% |
| U.S. Treasury Inflation-Linked Notes | TII | $5.40M | 6.14% |
| US TREASURY N/B | — | $5.06M | 5.76% |
| US TREASURY N/B | — | $1.96M | 2.23% |
| Fannie Mae Pool | — | $1.74M | 1.98% |
| Fannie Mae Pool | — | $1.40M | 1.59% |
| G2 MA8201 | — | $1.40M | 1.59% |
| Ginnie Mae II Pool | — | $1.33M | 1.52% |
Portfolio moves
Dec 31, 2025 → Mar 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Virtus Seix Core Bond Fund · STGIX, STIGX, STGZX | 58% | 0.36% |
| CHANNEL INCOME FUND · CPSIX | 9% | 1.40% |
| US Treasury 10 Year Note ETF · UTEN | 9% | 0.15% |
Advisers
| Firm | Role |
|---|---|
| Virtus Investment Advisers, LLC | Adviser |
| Virtus Fixed Income Advisers, LLC | Sub-adviser |
Footnotes
- Expense ratio as of April 23, 2025, from the fund's prospectus.
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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