This fund is a closed-end fund managed by Virtus, which seeks both capital appreciation and current income by investing most of its assets in convertible securities, such as convertible bonds, and sub-investment grade bonds.

It is suitable for investors who want to earn monthly income through convertible securities that possess characteristics of both stocks and bonds, and who can tolerate leverage and discount trading volatility.

It is an actively managed Closed-End Fund operated by Virtus.

The fund invests most of its assets in convertible securities and income securities, allocating more than half to convertible securities and the remainder primarily to sub-investment grade bonds. The structure is designed to enhance income returns through leverage.

• A convertible-centric portfolio aiming for both equity upside participation and bond income
• Monthly distribution policy and use of leverage

The market capitalization (based on market price) is - (-), and the expense ratio is - per annum.

The market price of this fund tends to trade at a discount to its NAV. Since the discount width varies depending on market sentiment, please check CefConnect for the exact NAV and discount levels.

Distribution levels have a history of adjustments, and portions of the distributions have occasionally been classified as Return of Capital. Therefore, an approach that examines the composition of distribution sources alongside NAV trends is necessary.

During equity market upturns, the equity-linked effect of convertible securities tends to act favorably on the NAV, whereas during periods of rising interest rates or widening credit spreads, high-yield bonds and leverage costs tend to act as a burden.

The strength lies in monthly distribution income based on convertible securities, while the core risks are leverage, discount volatility, and the possibility of return of capital.

NCZ is a sister fund from the same management company, and other closed-end funds investing in convertible securities such as CHI, CHY, and AVK are frequently compared. Since their compositions, leverage, and distribution policies differ, one must compare fees, discount levels, and distribution sources side-by-side.

These are CEF-specific points to check before investing in this fund. Unlike ETFs, NAV discount, leverage, and the proportion of return of capital act as key variables that drive returns.

If a stock market crash coincides with a widening of credit spreads, convertible securities and high-yield bonds may weaken simultaneously, and leverage could amplify losses. The possibility of widening discounts and distribution adjustments must also be considered.

This is a closed-end fund where the core utility is monthly distribution income based on convertible securities. A suitable approach is to enter the position through staggered purchases while regularly monitoring discount levels, leverage, and the composition of distribution sources.