Virtus Stone Harbor Closed-End Funds Announce Expected Reorganization
March 02 2023 - 4:15PM
Business Wire
The Boards of Trustees of the Virtus Stone Harbor Emerging
Markets Income Fund (NYSE: EDF) and Virtus Stone Harbor Emerging
Markets Total Income Fund (NYSE: EDI) have approved the
reorganization of EDI with and into EDF. The surviving fund will
continue to be known as Virtus Stone Harbor Emerging Markets Income
Fund and will retain the EDF ticker symbol.
At the annual meeting of shareholders of EDF scheduled for May
22, 2023, EDF shareholders will be asked to approve the fund’s
issuance of additional shares of common stock to effect the
reorganization. No action is needed by shareholders of EDI in
connection with the reorganization. The transaction is expected to
qualify as a tax-free reorganization for federal income tax
purposes and will be effected at each fund’s respective net asset
value (NAV) at the time of the reorganization.
The boards of EDI and EDF have approved this reorganization as a
result of a comprehensive assessment of the two funds, which have
substantially similar investment objectives and strategies, and are
managed by the same investment adviser, Virtus Alternative
Investment Advisers, Inc., and subadviser, Stone Harbor Investment
Partners. The boards believe this reorganization will benefit
shareholders of both funds through the creation of a larger fund
that may offer economies of scale, including lower portfolio
trading costs and a lower total annual operating expense ratio, as
the fixed expenses of the combined fund would be spread over a
larger asset base. The boards also believe shareholders may benefit
from enhanced market liquidity for the combined fund’s common
stock, which could positively impact trading in the combined fund’s
shares.
A proxy statement containing information about the meeting and
the proposal to issue additional shares of EDF to facilitate the
reorganization will be mailed to EDF’s shareholders of record as of
March 31, 2023. An information statement and prospectus containing
information about the reorganization will be mailed to EDI’s
shareholders prior to the reorganization. Shareholders are advised
to read the proxy statement (for EDF) or information statement and
prospectus (for EDI) because each will contain important
information about the transaction and related matters. When filed
with the Securities and Exchange Commission, the proxy statement,
information statement, and prospectus will be available for free at
www.sec.gov.
About the Funds
Virtus Stone Harbor Emerging Markets Income Fund (EDF) and
Virtus Stone Harbor Emerging Markets Total Income Fund (EDI) are
non-diversified, closed-end management investment companies that
are managed by Stone Harbor Investment Partners. EDF’s investment
objective is to maximize total return, which consists of income on
its investments and capital appreciation. EDI’s investment
objective is to maximize total return, which consists of income and
capital appreciation on its investments in emerging markets
securities. There is no assurance that either fund will achieve its
investment objective.
For more information on these funds, contact Shareholder
Services at (866) 270-7788, by email at closedendfunds@virtus.com,
or through the Closed-End Funds section of virtus.com.
Fund Risks
An investment in a fund is subject to risk, including the risk
of possible loss of principal. A fund’s shares may be worth less
upon their sale than what an investor paid for them. Shares of
closed-end funds may trade at a premium or discount to their NAV.
For more information about each fund’s investment objective and
risks, please see the fund’s annual report. A copy of each fund’s
most recent annual report may be obtained free of charge by
contacting Shareholder Services as set forth at the end of this
press release.
About Stone Harbor
Stone Harbor Investment Partners is a global institutional
fixed-income investment manager specializing in credit and asset
allocation strategies. The firm manages institutional clients’
assets in a range of investment strategies including emerging
markets debt, global high yield, bank loans, as well as
multi-sector credit products including unconstrained and total
return approaches. The firm’s investment strategies are based on
fundamental insights, derived from a combination of proprietary
research and the in-depth knowledge and specialized experience of
the firm’s team. Founded in 2006, it is based in New York City with
additional offices in London and Singapore. Stone Harbor Investment
Partners is a division of Virtus Fixed Income Advisers, LLC, a
registered investment adviser affiliated with Virtus Investment
Partners. For more information, visit shipemd.com.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors.
The company provides investment management products and services
through its affiliated managers and select subadvisers, each with a
distinct investment style, autonomous investment process, and
individual brand. For more information, visit virtus.com.
Additional Information
The information in this press release is for informational
purposes only and shall not constitute an offer to sell, the
solicitation of an offer to sell, the solicitation of an offer to
buy any securities, or the solicitation of any vote or approval in
any jurisdiction pursuant to or in connection with the transaction
or otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
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version on businesswire.com: https://www.businesswire.com/news/home/20230302005860/en/
For Further Information:
Shareholder Services (866) 270-7788 closedendfunds@virtus.com
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