HARTFORD, Conn., Feb. 27, 2012 /PRNewswire/ -- Virtus
Investment Partners (NASDAQ: VRTS), which operates a multi-manager
asset management business, today announced that it has raised
$215 million in a common stock
offering for its newest closed-end fund, Virtus Global Multi-Sector
Income Fund (NYSE: VGI), which began trading February 24 on the New York Stock Exchange.
Assuming full exercise of the underwriters' overallotment
option, which may or may not occur, the fund will have raised
approximately $247 million. The
offering was led by Morgan Stanley, Citigroup, and UBS Investment
Bank.
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The fund, whose investment objective is to maximize current
income while preserving capital, is managed by Newfleet Asset
Management, a Virtus affiliate with $8.1
billion in assets under management at December 31, 2011. The Newfleet team has a
long track record in multi-sector fixed income investing with an
approach that utilizes extensive credit research to identify and
invest in undervalued areas of various sectors of the global bond
markets.
"The Virtus Global Multi-Sector Income Fund gives investors an
opportunity to benefit from broadly diversified holdings across the
major domestic and international fixed-income sectors, a strategy
that offers the potential to generate an attractive yield in the
current fixed income market environment," said David L. Albrycht, senior portfolio manager of
the fund and chief investment officer, Multi-Sector Fixed Income
Strategies, at Newfleet.
Under the direction of Albrycht and portfolio managers
Benjamin Caron, Kyle A. Jennings, and Daniel Senecal, the fund uses a value-driven
approach that first overweights or underweights fixed income
sectors on a top-down basis, then uses fundamental research to
assess specific investments in the portfolio. "This is a
successful and time-tested discipline that we have used for more
than two decades to manage multi-sector portfolios, including
Virtus' largest open-end mutual fund, the Multi-Sector Short Term
Bond Fund," Albrycht added.
The fund may also use financial leverage, which is anticipated
to initially take the form of a credit facility, to increase
investible assets and potentially enhance the level of cash
distributions to shareholders.
The Virtus Global Multi-Sector Income Fund is the second new
closed-end fund for Virtus in the past year. Last July, the
company completed an IPO for the Duff & Phelps Global Utility
Income Fund (NYSE: DPG), which is managed by another affiliated
manager, Duff & Phelps Investment Management Co. of
Chicago. The Newfleet Multi-Sector team also co-manages, with
Duff & Phelps, the Virtus Total Return Fund (NYSE: DCA), a
closed-end fund that appointed Virtus as investment adviser and
administrator in December 2011. Virtus now manages eight
closed-end funds with $5.9 billion of
total assets.
"Our goal is to provide financial advisors with distinctive
solutions that they can offer their clients to address their
individual investment needs, and we believe the Virtus Global
Multi-Sector Income Fund meets a particular need for generating
yield," said George R. Aylward,
president and chief executive officer of Virtus. "We are
pleased to partner with a strong syndicate and their financial
advisors who understand the benefits that Newfleet's expertise in
multi-sector investing can offer their clients."
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. Virtus Investment Partners offers access to a
variety of investment styles across multiple disciplines to meet a
wide array of investor needs. Additional information can be found
at www.virtus.com.
This news release contains statements that are not historical
facts, referred to as "forward looking statements." Such forward
looking statements are subject to various risks and
uncertainties. The fund's actual future results may differ
significantly from those stated in any forward-looking statement,
depending on factors such as changes in securities or financial
markets or general economic conditions, the continuation of
investment advisory, administrative and service contracts, and
other risks discussed in the fund's prospectus and from time to
time in the fund's filings with the Securities and Exchange
Commission.
The use of leverage may cause exposure to additional risks.
The cost of borrowing may exceed income from the investments made
with leverage. Investing internationally, especially in emerging
markets, involves additional risks such as currency, political,
accounting, economic, and market risk. If interest rates rise,
existing bond prices may fall and can cause the value of an
investment in the portfolio to decline. Changes in interest rates
will affect the value of longer-term fixed income securities more
than shorter-term securities.
This document is not an offer to sell securities or the
solicitation of an offer to buy securities, nor shall there be any
sale or offer of these securities in any jurisdiction where such
sale or offer is not permitted.
Shares of closed-end funds usually trade on a national stock
exchange. Similar to other stocks, the fund's share price will
fluctuate with market conditions and, at the time of sale, may be
worth more or less than the original investment. Shares of
closed-end funds often trade at a discount to their net asset
value. There can be no assurance that the fund will
achieve its investment objective or earn a return on its
assets.
Please carefully consider a fund's investment objectives,
risks, charges and expenses before investing. For this and other
information about any Virtus Mutual Fund, call 1-800-243-4361 or
visit Virtus.com for a prospectus. Read it carefully before you
invest or send money.
Virtus Mutual Funds distributed by VP Distributors, LLC,
member FINRA and subsidiary of Virtus Investment Partners, Inc.
SOURCE Virtus Investment Partners, Inc.