NPORT-EX 2 VIAC060VIRTUS103121.htm
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
October 31, 2021
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—0.0%
Oil, Gas & Consumable Fuels—0.0%    
Cobalt International Energy, Inc.
7.750%, 12/1/23(1)(2) 		$     2,509   $     36
Total Corporate Bonds and Notes
(Identified Cost $1,106) 		       36
    
  Shares  
Convertible Preferred Stocks—6.1%
Auto Components—0.4%  
Aptiv plc Series A, 5.500%     21,490   4,152
Banks—0.8%  
Bank of America Corp. Series L, 7.250%      1,755   2,514
Wells Fargo & Co. Series L, 7.500%      3,405   5,175
      7,689
     
 
Capital Markets—0.4%  
KKR & Co., Inc. Series C, 6.000%     36,630   3,664
Commercial Services & Supplies—0.2%  
GFL Environmental, Inc., 6.000%     21,095   1,990
Communications Equipment—0.4%  
T-Mobile US, 2020 Cash Mandatory Exchangeable Trust 144A, 5.250%(3)      3,155   3,302
Diversified Financial Services—0.2%  
Chewy, Inc. 2020 Mandatory Exchangeable Trust 144A, 6.500%(3)      1,300   2,227
Electric Utilities—0.7%  
NextEra Energy, Inc., 5.279%     57,410   3,127
NextEra Energy, Inc., 6.219%     69,490   3,808
      6,935
     
 
  Shares   Value
       
Electronic Components—0.1%    
II-VI, Inc. Series A, 6.000%      3,415   $    877
Healthcare Equipment & Supplies—1.2%    
Boston Scientific Corp. Series A, 5.500%     33,490     3,919
Danaher Corp. Series B, 5.000%      4,885     8,113
       12,032
       
 
Life Sciences Tools & Services—0.3%    
Avantor, Inc. Series A, 6.250%     25,965     3,214
Machinery—0.1%    
Stanley Black & Decker, Inc., 5.250%     10,170     1,098
Media—0.1%    
ViacomCBS, Inc. Series A, 5.750%     11,695       709
Pharmaceuticals—0.2%    
Elanco Animal Health, Inc., 5.000%     31,335     1,588
Professional Services—0.2%    
Clarivate plc Series A, 5.250%     24,895     2,289
Semiconductors & Semiconductor
Equipment—0.8% 		   
Broadcom, Inc. Series A, 8.000%      4,725     7,925
Total Convertible Preferred Stocks
(Identified Cost $48,029) 		   59,691
       
 
Common Stocks—64.8%
Automobiles—2.8%    
Tesla, Inc.(4)     24,125    26,875
Banks—2.4%    
JPMorgan Chase & Co.(5)     76,645    13,021
See Notes to Schedule of Investments
1
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Shares   Value
       
Banks—continued    
Wells Fargo & Co.    207,755   $ 10,629
       23,650
       
 
Biotechnology—1.1%    
AbbVie, Inc.     53,390     6,122
Horizon Therapeutics plc(4)     39,375     4,722
       10,844
       
 
Capital Markets—1.5%    
Charles Schwab Corp. (The)     86,565     7,101
S&P Global, Inc.     16,715     7,926
       15,027
       
 
Chemicals—0.6%    
Sherwin-Williams Co. (The)     17,095     5,412
Electrical Equipment—0.6%    
Generac Holdings, Inc.(4)     12,505     6,235
Energy Equipment & Services—0.6%    
Schlumberger N.V.    174,930     5,643
Entertainment—1.4%    
Netflix, Inc.(4)(5)     13,000     8,974
Roku, Inc. Class A (4)     11,555     3,523
Walt Disney Co. (The)(4)      8,640     1,461
       13,958
       
 
Equity Real Estate Investment—0.6%    
Crown Castle International Corp.     32,586     5,875
Food & Staples Retailing—1.0%    
Costco Wholesale Corp.     19,220     9,447
Healthcare Equipment & Supplies—2.4%    
Abbott Laboratories     26,560     3,423
Align Technology, Inc.(4)(5)      4,715     2,944
Dexcom, Inc.(4)     14,400     8,974
Intuitive Surgical, Inc.(4)(5)     21,180     7,649
       22,990
       
 
Healthcare Providers & Services—1.0%    
UnitedHealth Group, Inc.     20,063     9,238
Hotels, Restaurants & Leisure—2.7%    
Booking Holdings, Inc.(4)      3,960     9,586
  Shares   Value
       
Hotels, Restaurants &
Leisure—continued 		   
Chipotle Mexican Grill, Inc. Class A(4)      2,480   $  4,412
Darden Restaurants, Inc.(5)     21,350     3,078
MGM Resorts International     96,945     4,572
Starbucks Corp.     42,408     4,498
       26,146
       
 
Household Durables—0.7%    
DR Horton, Inc.     74,670     6,666
Industrial Conglomerates—0.6%    
Honeywell International, Inc.     25,180     5,505
Insurance—0.7%    
Aon plc Class A     21,320     6,821
Interactive Media & Services—6.2%    
Alphabet, Inc. Class A(4)     11,605    34,362
Match Group, Inc.(4)     32,744     4,937
Meta Platforms, Inc. Class A(4)(5)     65,180    21,090
       60,389
       
 
Internet & Direct Marketing Retail—2.5%    
Amazon.com, Inc.(4)      7,115    23,995
IT Services—4.5%    
Accenture plc Class A     29,935    10,740
EPAM Systems, Inc.(4)      5,140     3,461
Mastercard, Inc. Class A     21,415     7,185
PayPal Holdings, Inc.(4)     41,730     9,706
Square, Inc. Class A(4)     12,630     3,214
Visa, Inc. Class A     42,805     9,065
       43,371
       
 
Life Sciences Tools & Services—2.5%    
Agilent Technologies, Inc.     53,431     8,415
IQVIA Holdings, Inc.(4)     31,170     8,149
Thermo Fisher Scientific, Inc.     12,015     7,606
       24,170
       
 
Machinery—0.5%    
Deere & Co.     14,640     5,011
Metals & Mining—0.2%    
Freeport-McMoRan, Inc.     50,195     1,893
 
See Notes to Schedule of Investments
2
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Shares   Value
       
Multiline Retail—0.7%    
Target Corp.     27,960   $  7,259
Oil, Gas & Consumable Fuels—1.5%    
Exxon Mobil Corp.    125,740     8,106
Occidental Petroleum Corp.     43,290     1,452
Valero Energy Corp.     66,770     5,163
       14,721
       
 
Pharmaceuticals—1.7%    
Eli Lilly & Co.     43,500    11,082
Zoetis, Inc. Class A     25,655     5,547
       16,629
       
 
Road & Rail—0.5%    
Union Pacific Corp.     19,700     4,756
Semiconductors & Semiconductor
Equipment—6.5% 		   
Advanced Micro Devices, Inc.(4)(5)     69,650     8,374
Broadcom, Inc.     10,920     5,806
Enphase Energy, Inc.(4)(5)     32,570     7,544
Global Foundries, Inc.(4)    125,230     6,104
Lam Research Corp.     11,595     6,534
Marvell Technology, Inc.    100,730     6,900
NVIDIA Corp.     74,540    19,058
QUALCOMM, Inc.     22,865     3,042
       63,362
       
 
Software—10.0%    
Adobe, Inc. (4)     21,560    14,022
Atlassian Corp. plc Class A(4)     17,900     8,200
Crowdstrike Holdings, Inc. Class A(4)(5)     28,315     7,979
DocuSign, Inc.(4)      5,680     1,581
Intuit, Inc.     19,135    11,978
Microsoft Corp.    111,520    36,982
salesforce.com, Inc.(4)     27,491     8,239
ServiceNow, Inc.(4)     12,005     8,377
       97,358
       
 
Specialty Retail—2.5%    
Carvana Co. Class A(4)     12,070     3,659
  Shares   Value
       
Specialty Retail—continued    
Home Depot, Inc. (The)     46,300   $ 17,212
TJX Cos., Inc. (The)     46,865     3,069
       23,940
       
 
Technology Hardware, Storage &
Peripherals—3.4% 		   
Apple, Inc.    219,200    32,836
Textiles, Apparel & Luxury Goods—0.9%    
NIKE, Inc. Class B     54,780     9,164
Total Common Stocks
(Identified Cost $445,875) 		  629,186
       
 
Warrant—0.0%
Oil, Gas & Consumable Fuels—0.0%    
Nabors Industries Ltd.(4)        486         4
Total Warrant
(Identified Cost $—) 		        4
    
  Par Value  
Convertible Bonds and Notes—25.6%
Airlines—0.6%  
JetBlue Airways Corp. 144A
0.500%, 4/1/26(3) 		$     1,990   1,911
Southwest Airlines Co.
1.250%, 5/1/25 		     2,515   3,530
      5,441
     
 
Auto Manufacturers—1.1%  
Ford Motor Co. 144A
0.000%, 3/15/26(3) 		     2,730   3,229
NIO, Inc. 144A
0.000%, 2/1/26(3) 		     2,615   2,317
Tesla, Inc.
2.000%, 5/15/24 		       300   5,382
     10,928
     
 
Banks—0.3%  
BofA Finance LLC
0.125%, 9/1/22 		     1,520   1,784
 
See Notes to Schedule of Investments
3
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Par Value   Value
       
Banks—continued    
JPMorgan Chase Bank NA 144A
0.125%, 1/1/23(3) 		$     1,215   $  1,258
        3,042
       
 
Biotechnology—1.0%    
Bridgebio Pharma, Inc. 144A
2.250%, 2/1/29(3) 		     1,895     1,691
Exact Sciences Corp.      
0.375%, 3/15/27      1,330     1,504
0.375%, 3/1/28        495       529
Guardant Health, Inc. 144A
0.000%, 11/15/27(3) 		     1,685     1,856
Halozyme Therapeutics, Inc. 144A
0.250%, 3/1/27(3) 		     2,330     2,061
Insmed, Inc.
0.750%, 6/1/28 		       760       885
Livongo Health, Inc.
0.875%, 6/1/25 		       635       923
        9,449
       
 
Commercial Services—1.3%    
Alarm.com Holdings, Inc. 144A
0.000%, 1/15/26(3) 		       360       330
Chegg, Inc.      
0.125%, 3/15/25        170       223
0.000%, 9/1/26      2,920     2,727
Shift4 Payments, Inc.      
144A 0.000%, 12/15/25(3)        985     1,068
144A 0.500%, 8/1/27(3)      2,110     1,942
Square, Inc.      
144A 0.000%, 5/1/26(3)      1,930     2,260
144A 0.250%, 11/1/27(3)      3,330     4,023
       12,573
       
 
Computers—0.7%    
Lumentum Holdings, Inc.
0.500%, 12/15/26 		     2,275     2,474
Pure Storage, Inc.
0.125%, 4/15/23 		     1,120     1,337
  Par Value   Value
       
Computers—continued    
Zscaler, Inc.
0.125%, 7/1/25 		$     1,600   $  3,452
        7,263
       
 
Diversified Financial Services—0.6%    
Coinbase Global, Inc. 144A
0.500%, 6/1/26(3) 		     2,680     3,179
SoFi Technologies, Inc. 144A
0.000%, 10/15/26(3) 		     2,335     2,732
        5,911
       
 
Energy-Alternate Sources—0.8%    
Enphase Energy, Inc.      
144A 0.000%, 3/1/26(3)      1,355     1,466
144A 0.000%, 3/1/28(3)      2,035     2,281
Plug Power, Inc.
3.750%, 6/1/25 		       250     1,915
SolarEdge Technologies, Inc.
0.000%, 9/15/25 		     1,525     2,255
        7,917
       
 
Entertainment—0.6%    
DraftKings, Inc. 144A
0.000%, 3/15/28(3) 		     2,960     2,581
Live Nation Entertainment, Inc.
2.000%, 2/15/25 		     1,245     1,516
Vail Resorts, Inc. 144A
0.000%, 1/1/26(3) 		     2,045     2,246
        6,343
       
 
Equity Real Estate Investment Trusts
(REITs)—0.2% 		   
Pebblebrook Hotel Trust
1.750%, 12/15/26 		     1,830     2,037
Healthcare-Products—1.0%    
Envista Holdings Corp.
2.375%, 6/1/25 		       980     1,911
Insulet Corp.
0.375%, 9/1/26 		     1,945     2,885
 
See Notes to Schedule of Investments
4
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Par Value   Value
       
Healthcare-Products—continued    
Novocure Ltd. 144A
0.000%, 11/1/25(3) 		$     1,295   $  1,319
Omnicell, Inc.
0.250%, 9/15/25 		     1,380     2,564
Repligen Corp.
0.375%, 7/15/24 		       590     1,493
       10,172
       
 
Healthcare-Services—0.5%    
Anthem, Inc.
2.750%, 10/15/42 		       405     2,494
Oak Street Health, Inc. 144A
0.000%, 3/15/26(3) 		     2,195     2,049
        4,543
       
 
Internet—6.2%    
Airbnb, Inc. 144A
0.000%, 3/15/26(3) 		     4,355     4,264
Booking Holdings, Inc.
0.750%, 5/1/25 		     1,130     1,676
Etsy, Inc.      
0.125%, 9/1/27      2,560     3,785
144A 0.250%, 6/15/28(3)      2,460     3,142
Expedia Group, Inc. 144A
0.000%, 2/15/26(3) 		     2,985     3,223
Mandiant, Inc.
0.875%, 6/1/24 		     1,505     1,579
Match Group Financeco 2, Inc. 144A
0.875%, 6/15/26(3) 		     2,805     5,096
Okta, Inc.
0.375%, 6/15/26 		     2,255     2,820
Opendoor Technologies, Inc. 144A
0.250%, 8/15/26(3) 		       875     1,214
Palo Alto Networks, Inc.
0.375%, 6/1/25 		     4,230     7,395
Sea Ltd.
0.250%, 9/15/26 		     3,110     3,266
Shopify, Inc.
0.125%, 11/1/25 		     1,885     2,392
Snap, Inc. 144A
0.000%, 5/1/27(3) 		     4,550     4,607
  Par Value   Value
       
Internet—continued    
Spotify USA, Inc. 144A
0.000%, 3/15/26(3) 		$     2,320   $  2,205
Twitter, Inc. 144A
0.000%, 3/15/26(3) 		     3,480     3,189
Uber Technologies, Inc. 144A
0.000%, 12/15/25(3) 		     3,220     3,098
Wayfair, Inc.
0.625%, 10/1/25 		     2,540     2,502
Wix.com Ltd.
0.000%, 8/15/25 		     1,690     1,574
Zendesk, Inc.
0.625%, 6/15/25 		     1,205     1,418
Zillow Group, Inc.
2.750%, 5/15/25 		     1,005     1,750
       60,195
       
 
Leisure Time—0.7%    
NCL Corp., Ltd.      
6.000%, 5/15/24        495     1,022
5.375%, 8/1/25        865     1,441
Royal Caribbean Cruises Ltd.      
4.250%, 6/15/23      2,015     2,718
144A 2.875%, 11/15/23(3)      1,330     1,661
        6,842
       
 
Machinery-Diversified—0.2%    
Middleby Corp. (The)
1.000%, 9/1/25 		       990     1,491
Media—1.2%    
DISH Network Corp.      
3.375%, 8/15/26      1,760     1,793
144A 0.000%, 12/15/25(3)      1,970     2,261
Liberty Broadband Corp. 144A
2.750%, 9/30/50(3) 		     1,195     1,243
Liberty Media Corp.      
1.375%, 10/15/23      1,890     2,732
144A 0.500%, 12/1/50(3)      2,250     2,867
 
See Notes to Schedule of Investments
5
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Par Value   Value
       
Media—continued    
Liberty Media Corp-Liberty Formula One
1.000%, 1/30/23 		$       245   $    373
       11,269
       
 
Mining—0.1%    
MP Materials Corp. 144A
0.250%, 4/1/26(3) 		     1,230     1,286
Oil, Gas & Consumable Fuels—0.7%    
EQT Corp.
1.750%, 5/1/26 		     1,685     2,634
Pioneer Natural Resources Co.
0.250%, 5/15/25 		     2,100     3,711
        6,345
       
 
Pharmaceuticals—0.9%    
Dexcom, Inc.      
0.750%, 12/1/23        255       967
0.250%, 11/15/25      4,275     5,457
Jazz Investments I Ltd.
2.000%, 6/15/26 		     1,935     2,252
        8,676
       
 
Pipelines—0.4%    
Cheniere Energy, Inc.
4.250%, 3/15/45 		     4,200     3,578
Real Estate—0.1%    
Redfin Corp.
0.000%, 10/15/25 		       805       820
Retail—0.4%    
Burlington Stores, Inc.
2.250%, 4/15/25 		     1,550     2,221
Dick’s Sporting Goods, Inc.
3.250%, 4/15/25 		       560     2,133
        4,354
       
 
Semiconductors—0.9%    
MACOM Technology Solutions Holdings, Inc. Class A 144A
0.250%, 3/15/26(3) 		       710       778
  Par Value   Value
       
Semiconductors—continued    
Microchip Technology, Inc.
0.125%, 11/15/24 		$     5,725   $  6,398
Wolfspeed, Inc.
0.875%, 9/1/23 		       680     1,365
        8,541
       
 
Software—5.1%    
Akamai Technologies, Inc.      
0.125%, 5/1/25      1,900     2,327
0.375%, 9/1/27        490       538
Alteryx, Inc.
0.500%, 8/1/24 		     1,750     1,652
Avalara, Inc. 144A
0.250%, 8/1/26(3) 		     2,365     2,470
Bentley Systems, Inc.      
144A 0.125%, 1/15/26(3)      1,640     1,861
144A 0.375%, 7/1/27(3)        705       713
Bill.com Holdings, Inc. 144A
0.000%, 4/1/27(3) 		     3,010     3,218
Blackline, Inc. 144A
0.000%, 3/15/26(3) 		       775       790
Cloudflare, Inc. 144A
0.000%, 8/15/26(3) 		     3,320     4,179
Coupa Software, Inc.
0.375%, 6/15/26 		     2,810     3,075
Datadog, Inc.
0.125%, 6/15/25 		     1,610     3,049
DocuSign, Inc. 144A
0.000%, 1/15/24(3) 		     1,970     2,074
Five9, Inc.
0.500%, 6/1/25 		     1,115     1,492
HubSpot, Inc.
0.375%, 6/1/25 		     1,090     3,139
MicroStrategy, Inc. 144A
0.000%, 2/15/27(3) 		     1,850     1,527
MongoDB, Inc.
0.250%, 1/15/26 		     1,485     3,731
Nutanix, Inc. 144A
0.250%, 10/1/27(3) 		     1,280     1,209
RingCentral, Inc.      
0.000%, 3/1/25      2,190     2,246
0.000%, 3/15/26        520       506
Splunk, Inc.      
0.500%, 9/15/23        670       836
1.125%, 6/15/27      2,800     2,924
 
See Notes to Schedule of Investments
6
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
  Par Value   Value
       
Software—continued    
Tyler Technologies, Inc. 144A
0.250%, 3/15/26(3) 		$       850   $  1,036
Workday, Inc.
0.250%, 10/1/22 		     1,875     3,701
Zynga, Inc.      
0.250%, 6/1/24        490       555
144A 0.000%, 12/15/26(3)        730       701
       49,549
       
 
Total Convertible Bonds and Notes
(Identified Cost $223,455) 		  248,565
       
 
Total Long-Term Investments—96.5%
(Identified Cost $718,465) 		  937,482
    
  Shares  
Short-Term Investment—3.4%
Money Market Mutual Fund—3.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(6) 32,602,865  32,603
Total Short-Term Investment
(Identified Cost $32,603) 		 32,603
     
 
TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—99.9%
(Identified Cost $751,068) 		970,085
     
 
Written Options—(0.0)%
(See open written options
schedule) 		   
Total Written Options
(Premiums Received $169) 		   (279)
     
 
TOTAL INVESTMENTS, NET OF WRITTEN OPTIONS—99.9%
(Identified Cost $750,899) 		$969,806
Other assets and liabilities, net—0.1%   1,243
NET ASSETS—100.0% $971,049
Abbreviations:
LLC Limited Liability Company
NA National Association
REIT Real Estate Investment Trust
S&P Standard & Poor’s
    
Footnote Legend:
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Security in default; no interest payments are being received during the bankruptcy proceedings.
(3) 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 October 31, 2021, these securities amounted to a value of $107,240 or 11.0% of net assets.
(4) Non-income producing.
(5) All or a portion of the security is segregated as collateral for written options.
(6) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings†
United States 94%
United Kingdom 2
Cayman Islands 1
Jersey 1
Curaçao 1
Ireland 1
Total 100%
† % of total investments, net of written options, as of October 31, 2021.
 
See Notes to Schedule of Investments
7
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
Open Written Options Contracts as of October 31, 2021 were as follows:
Description of Options Number of
Contracts 		Contract
Notional
Amount 		Strike
Price(1) 		Expiration
Date 		Value
Call Options(2)          
Advanced Micro Device, Inc. 245 $3,430 $140.00 11/19/21 $(10)
Align Technology, Inc. 32 2,144 670.00 11/19/21 (13)
Crowdstrike Holdings, Inc. 100 3,250 325.00 11/19/21 (8)
Darden Restaurants, Inc. 85 1,318 155.00 11/19/21 (4)
Enphase Energy, Inc. 120 3,180 265.00 11/19/21 (30)
Facebook, Inc. 345 12,937 375.00 11/19/21 (17)
Intuitive Surgical, Inc. 85 3,145 370.00 11/19/21 (41)
JPMorgan Chase & Co. 270 4,725 175.00 11/19/21 (33)
Netflix, Inc. 70 4,830 690.00 11/19/21 (123)
Total Written Options   $(279)
Footnote Legend:
(1) Strike price not reported in thousands.          
(2) Exchange-traded options          
See Notes to Schedule of Investments
8
VIRTUS AllianzGI Equity & Convertible Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of October 31, 2021, based on the inputs used to value them (See Security Valuation Note 1 in the Notes to Schedule of Investments):
  Total
Value at
October 31, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs 		  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Securities:              
Corporate Bonds and Notes $36   $—   $—   $36
Convertible Bonds and Notes 248,565   —   248,565   —
Equity Securities:              
Common Stocks 629,186   629,186   —   —
Convertible Preferred Stocks 59,691   54,162   5,529   —
Warrant 4   4   —   —
Money Market Mutual Fund 32,603   32,603   —   —
Total Investments, before Written Options 970,085   715,955   254,094   36
Liabilities:              
Other Financial Instruments:              
Written Options (279)   (279)   —   —
Total Investments, Net of Written Options $969,806   $715,676   $254,094   $36
Securities held by the Fund with an end of period value of $36 were transferred from Level 2 to Level 3 due to a decrease in trading activities during the period.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
Management has determined that the amount of Level 3 securities compared to total net assets is not material; therefore, the rollforward of Level 3 securities and assumptions are not shown for the period ended October 31, 2021.
See Notes to Schedule of Investments
9
VIRTUS ALLIANZGI EQUITY & CONVERTIBLE INCOME FUND
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
October 31, 2021
Note 1. Security Valuation
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 into or out of Level 3 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 illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.
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 the 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 American Depositary Receipts, financial futures, exchange-traded funds (“ETFs”), 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 convertible bonds and 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, activity of the underlying equities, 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
See Notes to Schedule of Investments
10
VIRTUS ALLIANZGI EQUITY & CONVERTIBLE INCOME FUND
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
October 31, 2021
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.
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 methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
For additional information about significant accounting policies, refer to the Fund’s most recent semi or annual report.
11