VIRTUS STONE HBR EMRG MKTS Stock Price, News & Analysis
Company Description
Virtus Stone Harbor Emerging Markets Income Fund (NYSE: EDF) is a non-diversified, closed-end management investment company in the finance and insurance sector. According to the fund’s disclosures, its primary investment objective is to maximize total return, which consists of income and capital appreciation on its investments in emerging markets securities. The fund indicates that there is no assurance it will achieve this investment objective.
The fund is associated with the emerging markets segment of the fixed-income universe. Available information states that it normally invests a substantial portion of its net assets in emerging markets securities, with the goal of combining income generation with the potential for capital appreciation. This focus places the fund within the broader category of emerging markets income strategies.
Structure and Management
Virtus Stone Harbor Emerging Markets Income Fund is organized as a closed-end management investment company. As a closed-end fund, its shares trade on the New York Stock Exchange under the ticker symbol EDF. The fund is described as non-diversified, which means it may invest a larger percentage of its assets in a smaller number of issuers or sectors than a diversified fund.
The fund’s investment adviser is identified as Virtus Investment Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners, Inc. Stone Harbor Investment Partners, a division of Virtus Fixed Income Advisers, LLC, serves as the fund’s subadviser. Stone Harbor Investment Partners is described as a global institutional fixed-income investment manager that specializes in credit and asset allocation strategies, including emerging markets debt and other credit-oriented strategies. Stone Harbor Investment Partners is based in New York City and was founded in 2006, with additional offices in London and Singapore.
Investment Objective and Strategy Focus
The fund’s stated primary objective is to maximize total return, defined as a combination of income and capital appreciation. Information provided about the fund explains that this objective is pursued through investments in emerging markets securities. The fund’s materials emphasize that there can be no assurance that the investment objective will be achieved.
According to the description provided, the fund normally invests at least a substantial majority of its net assets in emerging markets securities. This focus is consistent with the fund’s name and stated objective of generating income and capital appreciation from emerging markets. The fund’s approach is aligned with Stone Harbor Investment Partners’ broader emphasis on emerging markets debt and related fixed-income strategies.
Adviser and Subadviser Roles
Virtus Investment Advisers, LLC is identified as the investment adviser to the fund. In a legal entity transition, Virtus Investment Advisers, LLC replaced Virtus Alternative Investment Advisers, Inc. as the fund’s adviser, with rights and obligations under the investment advisory, subadvisory, and expense limitation agreements transferred to and assumed by Virtus Investment Advisers, LLC. Both entities are described as wholly owned indirect subsidiaries of Virtus Investment Partners, Inc.
Stone Harbor Investment Partners, a division of Virtus Fixed Income Advisers, LLC, is described as the subadviser and manager of the fund. Stone Harbor’s role includes managing institutional clients’ assets in strategies that encompass emerging markets debt, global high yield, bank loans, and multi-sector credit products, including unconstrained and total return approaches. This background supports its role in managing an emerging markets income fund such as EDF.
Risk Considerations
Fund communications emphasize that an investment in a fund is subject to risk, including the risk of possible loss of principal. They note that a fund’s shares may be worth less upon their sale than what an investor paid for them. For closed-end funds such as Virtus Stone Harbor Emerging Markets Income Fund, it is also highlighted that shares may trade at a premium or discount to their net asset value.
Information about the fund’s risks and investment objective is included in its annual report, which is referenced as a source for more detailed risk disclosures. The fund notes that copies of the most recent annual report may be obtained free of charge through its shareholder services channels.
Distributions and Income Focus
Public announcements for EDF frequently address monthly distributions. These notices describe estimated distribution amounts, ex-dates, record dates, and payable dates. The fund explains that the amounts of distributions reported in such notices are estimates only and are not provided for tax reporting purposes. The actual amounts and sources of distributions for tax purposes depend on the fund’s investment experience during its fiscal year and may be affected by tax regulations.
Investors are informed that the fund or their broker will send a Form 1099-DIV for the calendar year, which will specify what distributions to report for federal income tax purposes. This underscores the fund’s income-oriented profile in the context of emerging markets securities.
Relationship to Virtus and Stone Harbor
The fund is part of the Virtus family of funds. Virtus Investment Advisers, LLC, as adviser, and Virtus Fixed Income Advisers, LLC, as the entity housing Stone Harbor Investment Partners, are described as registered investment advisers affiliated with Virtus Investment Partners, Inc. Stone Harbor Investment Partners is presented as a global institutional fixed-income investment manager with expertise in credit and asset allocation strategies, including emerging markets debt and multi-sector credit products.
Investor Information
Fund communications indicate that additional information about Virtus Stone Harbor Emerging Markets Income Fund, including details on its investment objective and risks, is available in the fund’s annual report and through shareholder services. The fund highlights that investors can obtain the most recent annual report free of charge by contacting shareholder services through the channels described in its public announcements.