Portfolio Overview

Investment Overview

The Fund seeks to capture the upside potential of equities with the reduced volatility of fixed income securities by investing in the most compelling U.S. dollar-denominated convertibles.

Effective February 1, 2021, this funds name and investment adviser have changed. The funds distributor is now VP Distributors, LLC.

Effective May 21, 2021, Class R shares of the Fund will no longer be offered, and existing Class R shares of the Fund will be converted to Class A shares. No purchases may be made into Class R shares of the Fund after the close of business on May 17, 2021.



Virtus AllianzGI Convertible Fund (Institutional)

Best Fund over 3 and 10 years among Convertible Securities Funds

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Refinitiv Lipper Fund Award
Refinitiv Lipper Fund Awards 2021 Winner, USA, Virtus AllianzGI Convertible Fund (ANNPX), Best Fund Over 3 and 10 Years among Convertible Securities Funds (16 Convertible Securities Funds were eligible for the 3-year period, and 12 Convertible Securities Funds were eligible for the 10-year period).

The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60, and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.


Virtus AllianzGI Convertible Fund (ANNPX)

Ranked #1 among Best U.S. Taxable Bond Funds              

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About Investor’s Business Daily’s Best Mutual Funds Awards:  This year’s winners were drawn from 3,368 mutual funds in operation for at least 10 years. IBD’s data-driven list showcases a variety of top-performing mutual funds across the major categories that investors consider for broad market exposure or more narrow objectives. IBD then screens for those funds that beat their benchmark indexes in the one, three, five and ten year time periods ended December 31, 2020 based on total returns, and lists the top five funds in each category. The 2021 list spans 13 categories and subcategories of funds, including the six subcategories of U.S. Diversified Stock Funds: Growth Funds, Blend Funds, Value Funds, Large-Cap Funds, Mid-Cap Funds, and Small-Cap Funds.

Best U.S. Diversified Mutual Funds:  Of 1,286 U.S. diversified stock funds at least 10 years old, 318 of them, or 25, won awards Best Growth Stock Mutual Funds:  Of 506 growth stock mutual funds at least 10 years old, 307 of them, or 61%, won awards Best Large-Cap Funds:  Of 700 large-cap funds at least 10 years old, 184 of them, or 26%, won awards Best Small-Cap Funds:  Of 330 small-cap funds at least 10 years old, 68 of them, or 21%, won awards Best International Mutual Funds:  Of 585 international mutual funds at least 10 years old, 279 of them, or 48%, won awards Best U.S. Taxable Bond Funds:  Of 668 U.S. taxable bond funds at least 10 years old, 174 of them, or 26%, won awards Best Municipal Bond Funds:  Of 454 municipal bond funds at least 10 years old, 31 of them, or 7%, won awards. Consistent with the last three years, no Value Funds made the 2021 list.

Management Team

Investment Partner


Allianz Global Investors U.S. LLC

At Allianz Global Investors, active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors

Learn more about Allianz Global Investors U.S. LLC

Investment Professionals


Douglas G. Forsyth, CFA

Managing Director, Portfolio Manager, CIO US Income & Growth Strategies

Industry start date: 1991
Start date as fund Portfolio Manager: 1994


Justin M. Kass, CFA

Managing Director, Portfolio Manager

Industry start date: 1998
Start date as fund Portfolio Manager: 2003

Key Features

Favorable Asymmetric Risk/Reward

Seeks to identify and invest in convertible securities with an asymmetric risk/reward profile. Convertible bonds with this structure, also known as total return convertibles, are expected to participate in the upside of the underlying equity and provide downside protection from the bond floor

Disciplined, Fundamental, Bottom-Up Research Process

Facilitates the early identification of issuers demonstrating an ability to improve their fundamental characteristics, exceed minimum credit statistics, and exhibit the highest visibility of future expected operating performance

Attractive Risk/Reward Profile

Since inception, the Fund has provided equity-like returns with less volatility

Portfolio Characteristics

Top Holdings (% Fund)

(as of 06/30/2021)

Danaher Corporation Cum Conv Red Pfd Registered Shs Series A



Broadcom Inc 8.00 % Cum Conv Pfd Registered Shs 2019-30.09.22 Series A



Match Group Financeco 2, Inc. 0.875% 15-jun-2026



Microchip Technology Incorporated 0.125% 15-nov-2024



Ford Motor Company 0.0% 15-mar-2026



Palo Alto Networks, Inc. 0.375% 01-jun-2025



Eqt Corporation 1.75% 01-may-2026






Pioneer Natural Resources Company 0.25% 15-may-2025



Tesla, Inc. 2.0% 15-may-2024



Holdings are subject to change.

Sector Allocation (% Fund)

(as of 06/30/2021)

Consumer Discretionary

Performance & Risk

Growth of $10,000 Investment

From to

This chart assumes an initial investment of $10,000 made on for Class ddd shares including any applicable sales charges. Performance assumes reinvestment of dividends and capital gain distributions.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Sales Charge and Expenses

Yields / Distributions

(as of )

30-day SEC Yield
30-day SEC Yield (unsubsidized)
Distribution Rate (at NAV)
Distributions Current Month
Distributions YTD
Fund Index
Std Dev

Risk Considerations

Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolios assets as intended.

Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

Convertible Securities: A convertible security may be called for redemption at a time and price unfavorable to the portfolio.

Interest Rate: The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.

Counterparties: There is risk that a party upon whom the portfolio relies to complete a transaction will default.

Credit Risk: If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuers ability to make such payments, the price of the security may decline.

Prepayments/Calls: If issuers prepay or call fixed rate obligations when interest rates fall, it may force the portfolio to reinvest at lower interest rates.

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.

Prospectus: For additional information on risks, please see the funds prospectus.

Related Literature

Marketing Materials


Financial Materials


Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800-243-4361 to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. NAV returns do not include the effect of any applicable sales charges. POP and w/CDSC returns include the effect of maximum applicable sales charges.

Returns for periods of less than one year are cumulative total returns.

1 Yields/Distributions: 30-day SEC Yield is a standardized yield calculated according to a formula set by the SEC, and is subject to change. 30-day SEC Yield (unsubsidized) is the 30-day SEC Yield without the effect of applicable expense waivers. Distribution Rate is calculated by (a) annualizing the latest income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

2 Distribution History: Distributions are represented on a cash basis and may be reclassified at year end for tax purposes. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. STCG: Short Term Capital Gain, LTCG: Long Term Capital Gain

3 Risk Statistics: R2 is a statistical measure that represents the percentage of a fund or securitys movements that can be explained by movements in a benchmark index. Beta is a quantitative measure of the volatility of a given portfolio to the overall market. Alpha is a risk adjusted measure of an investments excess return relative to a benchmark. A positive Alpha indicates that the investment produced a return greater than expected for the risk (as measured by Beta) taken. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Risk Statistics are calculated using 36 monthly returns.

Morningstar Disclosures:
The Morningstar Rating for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed products monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.

© Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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