UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07455

Virtus Opportunities Trust

(Exact name of registrant as specified in charter)

 

 

101 Munson Street

Greenfield, MA 01301-9668

(Address of principal executive offices) (Zip code)

 

 

Jennifer Fromm, Esq.

Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

One Financial Plaza

Hartford, CT 06103-2608

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 243-1574

Date of fiscal year end: May 31

Date of reporting period: November 30, 2023

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Item 1.

Reports to Stockholders.

 

  (a)

The Report to Shareholders is attached herewith.

 


SEMIANNUAL REPORT
VIRTUS OPPORTUNITIES TRUST

November 30, 2023
Virtus Stone Harbor Emerging Markets Bond Fund
Virtus Stone Harbor Emerging Markets Debt Allocation Fund*
Virtus Stone Harbor Emerging Markets Debt Income Fund
Virtus Stone Harbor High Yield Bond Fund*
Virtus Stone Harbor Local Markets Fund
Virtus Stone Harbor Strategic Income Fund
*Prospectus supplement applicable to this fund appears at the back of this semiannual report.

Not FDIC Insured • No Bank Guarantee • May Lose Value


Table of Contents

1

2

4

6
Fund Schedule
of
Investments

7

12

13

22

26

30

36

40

42

45

48

67

71
Proxy Voting Procedures and Voting Record (Form N-PX)
The subadviser votes proxies, if any, relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees”, or the “Board”). You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at https://www.sec.gov.
PORTFOLIO  HOLDINGS INFORMATION
The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT-P. Form N-PORT-P is available on the SEC’s website at https://www.sec.gov.
This report is not authorized for distribution to prospective investors in the Funds presented in this book unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.


Table of Contents
MESSAGE TO SHAREHOLDERS
To my fellow shareholders of Virtus Funds:
I am pleased to present this semiannual report, which reviews the performance of your Fund for the six months ended November 30, 2023.
Please note that as of December 13, 2023, Virtus Stone Harbor Emerging Markets Debt Allocation Fund and Virtus Stone Harbor High Yield Bond Fund were liquidated, and Virtus Stone Harbor Strategic Income Fund will be liquidated effective January 30, 2024. We considered numerous factors, including the funds’ levels of assets under management and economic viability, when making the decisions to recommend the liquidation of these funds.
During the six-month period, inflation began to slow while the U.S. economy demonstrated continued resilience. The efforts of the Federal Reserve (the “Fed”) and other central banks to manage inflation appeared more likely to generate an economic “soft landing.” As the reporting period came to a close, however, concerns that interest rates might remain higher for longer began to weigh on markets, causing the rally to lose steam.
Domestic equity indexes posted positive returns for the six months ended November 30, 2023. U.S. large-capitalization stocks rose 10.17%, as measured by the S&P 500® Index, while small-cap stocks, as measured by the Russell 2000® Index, returned 4.24%. International equities lagged the U.S. somewhat, with developed markets, as measured by the MSCI EAFE® Index (net), up 5.12%, while emerging markets, as measured by the MSCI Emerging Markets Index (net), gained 4.60%.
In fixed income markets, the yield on the 10-year Treasury rose sharply to 4.37% on November 30, 2023, from 3.64% on May 31, 2023, as the Fed continued its efforts to tamp down inflation. The broader U.S. fixed income market, as represented by the Bloomberg U.S. Aggregate Bond Index, was down 0.80% for the six-month period, while non-investment grade bonds, as measured by the Bloomberg U.S. Corporate High Yield Bond Index, returned 5.52%.
For the six-month period, the three sectors of emerging markets debt returned 4.18% for hard currency sovereign debt, as represented by the JPMorgan EMBI Global Diversified Index, 4.61% for local currency sovereign debt, as represented by the JPMorgan GBI-EM Global Diversified Index, and 3.22% for corporate debt, as represented by the JPMorgan CEMBI Broad Diversified Index.
Thank you for entrusting the Virtus Funds with your assets. Please call our customer service team at 800-243-1574 if you have questions about your account or require assistance. We appreciate your business and remain committed to your long-term financial success.
Sincerely,
George R. Aylward
President and Trustee, Virtus Funds
January 2024
Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.
1


Table of Contents
VIRTUS OPPORTUNITIES TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited)
FOR THE SIX-MONTH PERIOD OF June 1, 2023 TO November 30, 2023
We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Opportunities Trust Fund discussed in this shareholder report (each, a “Fund”), you may incur two types of costs: (1) transaction costs, including
sales charges on purchases of Class A shares and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses.
Class I shares are sold without sales charges and do not incur distribution and service fees. For further information regarding applicable sales charges, see
Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period.
Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
    Beginning
Account Value
June 1, 2023
  Ending
Account Value
November 30, 2023
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
Stone Harbor Emerging Markets Bond Fund

               
  Class A $ 1,000.00   $ 1,042.20   1.25 %   $ 6.38
  Class I 1,000.00   1,043.80   1.00   5.11
Stone Harbor Emerging Markets Debt Allocation Fund

               
  Class A 1,000.00   1,057.60   0.25   1.29
  Class I 1,000.00   1,060.60   0.00   0.00
Stone Harbor Emerging Markets Debt Income Fund

               
  Class A 1,000.00   1,075.40   1.01   5.24
  Class I 1,000.00   1,077.40   0.73   3.79
Stone Harbor High Yield Bond Fund

               
  Class A 1,000.00   1,055.90   0.90   4.63
  Class I 1,000.00   1,058.30   0.65   3.34
Stone Harbor Local Markets Fund

               
  Class A 1,000.00   1,044.20   1.25   6.39
  Class I 1,000.00   1,045.30   1.00   5.11
Stone Harbor Strategic Income Fund

               
  Class A 1,000.00   1,039.50   0.50   2.55
  Class I 1,000.00   1,042.00   0.25   1.28
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 366 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
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Table of Contents
VIRTUS OPPORTUNITIES TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF June 1, 2023 TO November 30, 2023
    Beginning
Account Value
June 1, 2023
  Ending
Account Value
November 30, 2023
  Annualized
Expense
Ratio
  Expenses
Paid
During
Period*
Stone Harbor Emerging Markets Bond Fund

               
  Class A $ 1,000.00   $ 1,018.75   1.25 %   $ 6.31
  Class I 1,000.00   1,020.00   1.00   5.05
Stone Harbor Emerging Markets Debt Allocation Fund

               
  Class A 1,000.00   1,023.75   0.25   1.26
  Class I 1,000.00   1,025.00   0.00   0.00
Stone Harbor Emerging Markets Debt Income Fund

               
  Class A 1,000.00   1,019.95   1.01   5.10
  Class I 1,000.00   1,021.35   0.73   3.69
Stone Harbor High Yield Bond Fund

               
  Class A 1,000.00   1,020.50   0.90   4.55
  Class I 1,000.00   1,021.75   0.65   3.29
Stone Harbor Local Markets Fund

               
  Class A 1,000.00   1,018.75   1.25   6.31
  Class I 1,000.00   1,020.00   1.00   5.05
Stone Harbor Strategic Income Fund

               
  Class A 1,000.00   1,022.50   0.50   2.53
  Class I 1,000.00   1,023.75   0.25   1.26
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 366 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
3


Table of Contents
VIRTUS OPPORTUNITIES TRUST
KEY INVESTMENT TERMS (Unaudited)
November 30, 2023
Bloomberg U.S. Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment-grade fixed-rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Bloomberg U.S. Corporate High Yield Bond Index
The Bloomberg U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Credit Default Swap (“CDS”)
A CDS is a financial derivative contract that shifts the credit risk of a fixed income product to a counterparty in exchange for a premium. The buyer of the CDS makes a series of payments (the CDS “fee” or “spread”) to the seller and, in exchange, may expect to receive a payoff if the asset defaults.
Exchange-Traded Fund (“ETF”)
An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.
Federal Funds Rate
The target interest rate set by the Fed at which commercial banks borrow and lend their extra reserves to one another overnight.
Federal Reserve (the “Fed”)
The central bank of the United States, responsible for controlling the money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.
Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”)
A government-owned corporation that buys mortgages and packages them into mortgage-backed securities.
Federal National Mortgage Association (“FNMA” or “Fannie Mae”)
A government-sponsored, publicly traded enterprise that makes mortgages available to low- and moderate-income borrowers. It does not provide loans, but backs or guarantees them in the secondary mortgage market.
Government National Mortgage Association (“GNMA” or “Ginnie Mae”)
A U.S. government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBSs) issued by approved Ginnie Mae lenders, with the goal of expanding the pool of homeowners by mostly aiding lending to homeowners who are traditionally underserved in the mortgage marketplace such as first-time home buyers and low-income borrowers.
Hard Currency
Hard currency refers to a currency that is generally issued by developed countries, globally traded, and seen as politically and economically stable. Generally, when a fund invests in hard currency sovereign debt, that debt is denominated in U.S. dollars.
London Interbank Offered Rate (“LIBOR”)
A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.
J.P. Morgan CEMBI Broad Diversified Index
The J.P. Morgan CEMBI Broad Diversified Index tracks total returns of U.S. dollar denominated debt instruments issued by corporate entities in emerging market countries and consists of an investable universe of corporate bonds. The minimum amount outstanding required is $300 million for the J.P. Morgan CEMBI Broad Diversified. The J.P. Morgan CEMBI Broad Diversified limits the weights of those index countries with larger corporate debt stocks by only including a specified portion of these countries’ eligible current face amounts of debt outstanding. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
J.P. Morgan EMBI Global Diversified Index
The J.P. Morgan EMBI Global Diversified (EMBI Global Diversified) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging markets sovereign and quasi-sovereign entities: Brady bonds, loans, and Eurobonds. The index limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts outstanding. The Index tracks total returns for traded external debt instruments in the emerging markets. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
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Table of Contents
VIRTUS OPPORTUNITIES TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued)
November 30, 2023
J.P. Morgan GBI-EM Global Diversified Index
The J.P. Morgan GBI-EM Global Diversified Index consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. The weightings among the countries are more evenly distributed within this index. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
Markit CDX® Emerging Markets Index (“CDX.EM”)
CDX.EM is composed of Sovereign issuers from Latin America, Eastern Europe, the Middle East, Africa and Asia as published by Markit from time to time.
Markit North American High Yield CDX Index (“CDX.NA.HY”)
CDX.NA.HY is composed of 100 liquid North American entities with high yield credit ratings that trade in the credit default swap market as published by Markit from time to time.
MSCI EAFE® Index (net)
The MSCI EAFE® (Europe, Australasia, Far East) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI Emerging Markets Index (net)
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Index
The Russell 2000® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Secured Overnight Financing Rate (“SOFR”)
The Secured Overnight Financing Rate is a benchmark interest rate for dollar-denominated derivatives and loans that is replacing the LIBOR.
S&P 500® Index
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
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Table of Contents
VIRTUS OPPORTUNITIES TRUST
PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS (Unaudited)
November 30, 2023
For each Fund, the following tables present asset allocations within certain industries as a percentage of total investments as of November 30, 2023.
Stone Harbor Emerging Markets Bond Fund
Corporate Bonds and Notes   97%
Financial & Lease 19%  
Electric 14  
Exploration & Production 14  
Gaming 8  
Wireless 7  
Metals, Mining & Steel 6  
Midstream 5  
Technology 3  
Retail Food & Drug 2  
Media Cable 2  
All other Corporate Bonds and Notes 17  
Short-Term Investment   3
Total   100%
Stone Harbor Emerging Markets Debt Allocation Fund
Affiliated Mutual Funds   100%
Total   100%
 
Stone Harbor Emerging Markets Debt Income Fund
Foreign Government Securities   68%
Corporate Bonds and Notes   27
Exploration & Production 11%  
Electric 4  
Financial & Lease 2  
Financials 2  
Metals, Mining & Steel 2  
All other Corporate Bonds and Notes 6  
Affiliated Mutual Funds   4
Credit Linked Notes   1
Total   100%
Stone Harbor High Yield Bond Fund
Corporate Bonds and Notes   99%
Media Cable 8%  
Financial & Lease 8  
Health Care 8  
Midstream 7  
Exploration & Production 6  
Leisure 5  
Chemicals 5  
Media Other 5  
Industrial Other 4  
Drillers & Services 4  
All other Corporate Bonds and Notes 39  
Short-Term Investment   1
Total   100%
 
Stone Harbor Local Markets Fund
Foreign Government Securities   95%
Corporate Bonds and Notes   4
Financial & Lease 4%  
Short-Term Investment   1
Total   100%
Stone Harbor Strategic Income Fund
Affiliated Mutual Funds   67%
Corporate Bonds and Notes   16
Financial & Lease 7%  
All other Corporate Bonds and Notes 9  
Mortgage-Backed Securities   10
Agency 8  
Non-Agency 2  
U.S. Government Securities   7
Total   100%
 
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Table of Contents
Stone Harbor Emerging Markets Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—93.6%
Argentina—1.6%    
MSU Energy S.A. 144A
6.875%, 2/1/25(1)
$     56   $    40
YPF S.A.      
144A 8.500%, 7/28/25(1)      48       46
RegS 8.500%, 7/28/25(2)      19       18
RegS 6.950%, 7/21/27(2)      82       69
         173
       
 
Brazil—5.4%    
Braskem Netherlands Finance B.V. 144A
5.875%, 1/31/50(1)
     13        9
BRF S.A. 144A
5.750%, 9/21/50(1)
     63       42
Guara Norte S.a.r.l. 144A
5.198%, 6/15/34(1)
     56       49
Iochpe-Maxion Austria GmbH 144A
5.000%, 5/7/28(1)
     85       74
JBS USA LUX S.A.
4.375%, 2/2/52
     62       43
MC Brazil Downstream Trading S.a.r.l. 144A
7.250%, 6/30/31(1)
     46       35
Minerva Luxembourg S.A. 144A
4.375%, 3/18/31(1)
     57       45
MV24 Capital B.V. 144A
6.748%, 6/1/34(1)
     38       34
Petrobras Global Finance B.V.
6.900%, 3/19/49
     40       37
Rumo Luxembourg S.a.r.l. 144A
4.200%, 1/18/32(1)
     58       47
Simpar Europe S.A. 144A
5.200%, 1/26/31(1)
     82       68
Suzano Austria GmbH
3.750%, 1/15/31
     49       41
Usiminas International S.a.r.l. 144A
5.875%, 7/18/26(1)
     38       37
         561
       
 
Chile—2.4%    
ATP Tower Holdings LLC 144A
4.050%, 4/27/26(1)
    140      123
Banco de Chile RegS
2.990%, 12/9/31(2)
     61       50
Celulosa Arauco y Constitucion S.A. 144A
5.500%, 4/30/49(1)
     68       52
Cencosud S.A.      
144A 5.150%, 2/12/25(1)      19       19
144A 4.375%, 7/17/27(1)      14       13
         257
       
 
China—4.6%    
Bank of China Ltd. RegS
5.000%, 11/13/24(2)
     46       46
ENN Clean Energy International Investment Ltd. 144A
3.375%, 5/12/26(1)
     66       61
Huarong Finance 2019 Co., Ltd. (SOFR + 1.512%) RegS
6.858%, 2/24/25(2)(3)
    200      197
  Par Value   Value
       
China—continued    
Tencent Holdings Ltd.      
144A 2.390%, 6/3/30(1) $     14   $    11
144A 3.240%, 6/3/50(1)      14        9
RegS 3.975%, 4/11/29(2)     175      163
         487
       
 
Colombia—3.6%    
AI Candelaria Spain S.A.      
144A 7.500%, 12/15/28(1)      27       26
144A 5.750%, 6/15/33(1)      66       48
Ecopetrol S.A.      
5.375%, 6/26/26      29       28
7.375%, 9/18/43      73       62
Geopark Ltd. 144A
5.500%, 1/17/27(1)
     61       53
Gran Tierra Energy, Inc. 144A
9.500%, 10/15/29(1)
     97       83
SierraCol Energy Andina LLC 144A
6.000%, 6/15/28(1)
     99       79
         379
       
 
Ghana—2.0%    
Kosmos Energy Ltd. RegS
7.750%, 5/1/27(2)
    110      100
Tullow Oil plc 144A
7.000%, 3/1/25(1)
    115      105
         205
       
 
Guatemala—1.4%    
CT Trust 144A
5.125%, 2/3/32(1)
     83       69
Investment Energy Resources Ltd. 144A
6.250%, 4/26/29(1)
     81       74
         143
       
 
Hong Kong—5.2%    
CK Hutchison International 21 Ltd. RegS
1.500%, 4/15/26(2)
     70       64
Goodman HK Finance RegS
3.000%, 7/22/30(2)
    200      165
Standard Chartered plc      
144A 6.301%, 1/9/29(1)      80       80
144A 2.678%, 6/29/32(1)      25       20
RegS 6.000%(2)(4)      16       15
Towngas Finance Ltd. RegS
4.750% (2)(4)
    200      198
         542
       
 
India—7.6%    
Adani Electricity Mumbai Ltd. 144A
3.949%, 2/12/30(1)
    100       78
Adani Green Energy Ltd. 144A
4.375%, 9/8/24(1)
     90       86
Adani Ports & Special Economic Zone Ltd. RegS
3.375%, 7/24/24(2)
     27       26
Adani Transmission Step-One Ltd. 144A
4.000%, 8/3/26(1)
     23       20
See Notes to Financial Statements
7


Table of Contents
Stone Harbor Emerging Markets Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value   Value
       
India—continued    
Bharti Airtel Ltd. RegS
4.375%, 6/10/25(2)
$     15   $    15
Clean Renewable Power Mauritius Pte Ltd. 144A
4.250%, 3/25/27(1)
     47       42
Greenko Dutch B.V. 144A
3.850%, 3/29/26(1)
     59       54
HDFC Bank Ltd. RegS
3.700% (2)(4)
    200      179
JSW Hydro Energy Ltd. RegS
4.125%, 5/18/31(2)
     48       41
JSW Steel Ltd. RegS
3.950%, 4/5/27(2)
     51       46
Network i2i Ltd. 144A
5.650% (1)(4)
    120      118
Reliance Industries Ltd. RegS
3.625%, 1/12/52(2)
     43       29
Summit Digitel Infrastructure Ltd. RegS
2.875%, 8/12/31(2)
     60       47
Vedanta Resources Finance II plc 144A
8.950%, 3/11/25(1)
     19       14
         795
       
 
Indonesia—5.3%    
Freeport Indonesia PT RegS
5.315%, 4/14/32(2)
    175      165
Indika Energy Capital IV Pte Ltd.      
144A 8.250%, 10/22/25(1)       6        6
RegS 8.250%, 10/22/25(2)     140      139
Indonesia Asahan Aluminium PT 144A
5.450%, 5/15/30(1)
     40       39
Medco Maple Tree Pte Ltd. 144A
8.960%, 4/27/29(1)
     45       45
Minejesa Capital B.V. 144A
4.625%, 8/10/30(1)
    165      153
Star Energy Geothermal Darajat II 144A
4.850%, 10/14/38(1)
      5        4
         551
       
 
Israel—3.5%    
Altice Financing S.A. 144A
5.000%, 1/15/28(1)
     31       26
Energian Israel Finance Ltd.      
144A, RegS 4.875%, 3/30/26(1)(2)      41       37
144A, RegS 5.375%, 3/30/28(1)(2)     133      116
Leviathan Bond Ltd. 144A, RegS
6.750%, 6/30/30(1)(2)
     43       39
Teva Pharmaceutical Finance Netherlands III B.V.
3.150%, 10/1/26
    164      149
         367
       
 
Jamaica—0.1%    
Digicel International Finance Ltd. Series 1441 144A
8.750%, 5/25/24(1)
     16       15
Kazakhstan—1.5%    
KazMunayGas National Co. JSC RegS
3.500%, 4/14/33(2)
    200      155
  Par Value   Value
       
Macau—5.7%    
Melco Resorts Finance Ltd.      
144A 5.750%, 7/21/28(1) $     32   $    28
RegS 5.625%, 7/17/27(2)      37       33
RegS 5.750%, 7/21/28(2)      50       44
RegS 5.375%, 12/4/29(2)      30       25
MGM China Holdings Ltd. RegS
5.875%, 5/15/26(2)
     53       51
Sands China Ltd.      
5.650%, 8/8/28      40       38
3.500%, 8/8/31     185      147
Studio City Co., Ltd. 144A
7.000%, 2/15/27(1)
     54       51
Studio City Finance Ltd.      
144A 6.000%, 7/15/25(1)      79       77
144A 5.000%, 1/15/29(1)     138      107
         601
       
 
Malaysia—2.2%    
Gohl Capital Ltd. RegS
4.250%, 1/24/27(2)
    200      188
Resorts World Las Vegas LLC RegS
4.625%, 4/6/31(2)
     50       39
         227
       
 
Mexico—8.0%    
Banco Mercantil del Norte S.A.      
144A 6.750%(1)(4)      57       55
144A 7.500%(1)(4)      43       39
BBVA Bancomer S.A.      
144A 5.125%, 1/18/33(1)      65       58
RegS 5.350%, 11/12/29(2)      32       31
Braskem Idesa SAPI 144A
6.990%, 2/20/32(1)
     25       16
Cemex SAB de C.V.      
144A 5.125%(1)(4)      57       53
144A 9.125%(1)(4)      38       40
144A 3.875%, 7/11/31(1)      54       45
Cometa Energia S.A. de C.V. 144A
6.375%, 4/24/35(1)
     45       42
Grupo Aeromexico SAB de C.V. 144A
8.500%, 3/17/27(1)
     98       93
Petroleos Mexicanos      
6.625%, 6/15/35      91       63
7.690%, 1/23/50      48       32
Poinsettia Finance Ltd. RegS
6.625%, 6/17/31(2)
     54       44
Sitios Latinoamerica SAB de C.V. 144A
5.375%, 4/4/32(1)
    118      104
Sixsigma Networks Mexico S.A. de C.V. 144A
7.500%, 5/2/25(1)
     47       42
Southern Copper Corp.
6.750%, 4/16/40
     34       36
Tierra Mojada Luxembourg II S.a.r.l. 144A
5.750%, 12/1/40(1)
     53       45
         838
       
 
Morocco—0.4%    
OCP S.A. 144A
3.750%, 6/23/31(1)
     55       45
 
See Notes to Financial Statements
8


Table of Contents
Stone Harbor Emerging Markets Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value   Value
       
Nigeria—1.6%    
Access Bank plc 144A
6.125%, 9/21/26(1)
$     92   $    79
Africa Finance Corp. 144A
2.875%, 4/28/28(1)
     55       46
IHS Holding Ltd. 144A
6.250%, 11/29/28(1)
     20       16
IHS Netherlands Holdco B.V. 144A
8.000%, 9/18/27(1)
     36       31
         172
       
 
Oman —0.4%    
Lamar Funding Ltd. 144A
3.958%, 5/7/25(1)
     41       40
Peru—1.9%    
Banco Internacional del Peru SAA Interbank RegS
4.000%, 7/8/30(2)
     43       40
Inkia Energy Ltd. 144A
5.875%, 11/9/27(1)
    112      106
Kallpa Generacion S.A. 144A
4.125%, 8/16/27(1)
     53       49
         195
       
 
Philippines—1.9%    
Royal Capital B.V. RegS
4.875% (2)(4)
    200      198
Saudi Arabia—3.3%    
Acwa Power Management & Investments One Ltd. 144A
5.950%, 12/15/39(1)
    103       98
EIG Pearl Holdings S.a.r.l. 144A
3.545%, 8/31/36(1)
     66       55
Greensaif Pipelines Bidco S.a.r.l. 144A
6.129%, 2/23/38(1)
     26       26
Saudi Arabian Oil Co.      
144A 3.500%, 4/16/29(1)      40       37
144A 4.375%, 4/16/49(1)      65       51
TMS Issuer S.a.r.l. 144A
5.780%, 8/23/32(1)
     75       76
         343
       
 
Singapore—1.9%    
BOC Aviation Ltd. (3 month LIBOR + 1.300%) RegS
6.929%, 5/21/25(2)(3)
    200      200
South Africa—4.4%    
Anglo American Capital plc      
144A 2.625%, 9/10/30(1)      10        8
RegS 2.625%, 9/10/30(2)       8        7
Eskom Holdings SOC Ltd. 144A
7.125%, 2/11/25(1)
    117      116
Prosus N.V.      
144A 3.832%, 2/8/51(1)     164       97
RegS 3.257%, 1/19/27(2)      51       46
RegS 3.680%, 1/21/30(2)      19       16
RegS 3.061%, 7/13/31(2)      47       36
  Par Value   Value
       
South Africa—continued    
Sasol Financing USA LLC
4.375%, 9/18/26
$    152   $   139
         465
       
 
South Korea—2.8%    
LG Chem Ltd. RegS
2.375%, 7/7/31(2)
     40       32
Shinhan Bank Co., Ltd. RegS
3.875%, 3/24/26(2)
     60       57
Woori Bank      
RegS 4.250%(2)(4)     150      145
RegS 4.750%, 4/30/24(2)      60       60
         294
       
 
Taiwan—1.0%    
TSMC Arizona Corp.      
3.875%, 4/22/27      14       14
4.125%, 4/22/29      23       22
TSMC Global Ltd.      
RegS 1.375%, 9/28/30(2)      35       28
RegS 2.250%, 4/23/31(2)      48       39
         103
       
 
Tanzania—1.0%    
HTA Group Ltd. 144A
7.000%, 12/18/25(1)
    104      102
Thailand—1.9%    
Bangkok Bank PCL 144A
3.733%, 9/25/34(1)
    150      129
PTT Treasury Center Co., Ltd. 144A
4.500%, 10/25/42(1)
     52       43
Thaioil Treasury Center Co., Ltd. RegS
4.875%, 1/23/43(2)
     40       32
         204
       
 
Turkey—2.9%    
Akbank TAS 144A
5.125%, 3/31/25(1)
     15       15
Aydem Yenilenebilir Enerji AS 144A
7.750%, 2/2/27(1)
     62       55
Turkcell Iletisim Hizmetleri AS 144A
5.750%, 10/15/25(1)
     85       82
Turkiye Garanti Bankasi AS 144A
7.177%, 5/24/27(1)
     30       29
WE Soda Investments Holding plc 144A
9.500%, 10/6/28(1)
    118      119
         300
       
 
Ukraine—0.8%    
Metinvest B.V. 144A
7.750%, 10/17/29(1)
     75       44
VF Ukraine PAT via VFU Funding plc 144A
6.200%, 2/11/25(1)(5)
     55       41
          85
       
 
 
See Notes to Financial Statements
9


Table of Contents
Stone Harbor Emerging Markets Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value   Value
       
United Arab Emirates—5.2%    
Abu Dhabi Crude Oil Pipeline LLC 144A
3.650%, 11/2/29(1)
$     30   $     28
Abu Dhabi National Energy Co. PJSC 144A
4.696%, 4/24/33(1)
    155      150
DP World Ltd. 144A
4.700%, 9/30/49(1)
    149      115
Galaxy Pipeline Assets Bidco Ltd. 144A
1.750%, 9/30/27(1)
     54       50
MAF Global Securities Ltd. RegS
7.875% (2)(4)
    200      199
         542
       
 
Vietnam—1.4%    
Mong Duong Finance Holdings B.V. 144A
5.125%, 5/7/29(1)
    155      142
Zambia—0.7%    
First Quantum Minerals Ltd.      
144A 6.875%, 3/1/26(1)      50       43
144A 8.625%, 6/1/31(1)      33       27
          70
       
 
Total Corporate Bonds and Notes
(Identified Cost $10,205)
   9,796
       
 
       
 
Total Long-Term Investments—93.6%
(Identified Cost $10,205)
   9,796
    
  Shares  
Short-Term Investment—3.1%
Money Market Mutual Fund—3.1%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.237%)(6) 324,468    324
Total Short-Term Investment
(Identified Cost $324)
   324
     
 
     
 
TOTAL INVESTMENTS—96.7%
(Identified Cost $10,529)
$10,120
Other assets and liabilities, net—3.3%    349
NET ASSETS—100.0% $10,469
Abbreviations:
JSC Joint Stock Company
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
PJSC Public Joint Stock Company
SOFR Secured Overnight Financing Rate
    
Footnote Legend:
(1) 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 November 30, 2023, these securities amounted to a value of $5,428 or 51.9% of net assets.
(2) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(3) Variable rate security. Rate disclosed is as of November 30, 2023. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(4) No contractual maturity date.
(5) This Note was issued for the sole purpose of funding a leveraged loan between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.
(6) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings
Mexico 8%
India 8
Macau 6
Brazil 6
Indonesia 5
United Arab Emirates 5
Hong Kong 5
Other 57
Total 100%
% of total investments as of November 30, 2023.
 
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
10


Table of Contents
Stone Harbor Emerging Markets Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
  Level 2
Significant
Observable
Inputs
Assets:          
Debt Instruments:          
Corporate Bonds and Notes $ 9,796   $   $9,796
Money Market Mutual Fund 324   324  
Total Investments $10,120   $324   $9,796
There were no securities valued using significant unobservable inputs (Level 3) at November 30, 2023.
There were no transfers into or out of Level 3 related to securities held at November 30, 2023.
See Notes to Financial Statements
11


Table of Contents
Stone Harbor Emerging Markets Debt Allocation Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Shares   Value
Affiliated Mutual Funds—97.0%
Fixed Income Funds—97.0%    
Virtus Stone Harbor Emerging Markets Debt Income Fund Class I(1)(2) 123,180   $   860
Virtus Stone Harbor Local Markets Fund Class I(1)(2)(3) 112,506     908
Total Affiliated Mutual Funds
(Identified Cost $1,653)
  1,768
       
 
       
 
Total Long-Term Investments—97.0%
(Identified Cost $1,653)
  1,768
       
 
       
 
TOTAL INVESTMENTS—97.0%
(Identified Cost $1,653)
  $1,768
Other assets and liabilities, net—3.0%      54
NET ASSETS—100.0%   $1,822
Footnote Legend:
(1) Affiliated investment. See Note 4H in Notes to Financial Statements.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(3) Non-income producing.
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
Assets:      
Affiliated Mutual Funds $1,768   $1,768
Total Investments $1,768   $1,768
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at November 30, 2023.
There were no transfers into or out of Level 3 related to securities held at November 30, 2023.
See Notes to Financial Statements
12


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
Foreign Government Securities—66.4%
Angola —1.7%    
Republic of Angola      
144A
8.000%, 11/26/29(2)
$       732   $    612
144A
8.750%, 4/14/32(2)
     1,419     1,183
Republic of Angola Via Avenir II B.V. (6 month LIBOR + 4.500%) RegS
10.163%, 12/7/23(3)(4)(5)
       445       444
Republic of Angola Via Avenir Issuer II Ireland DAC RegS
6.927%, 2/19/27(3)(4)
     3,595     3,332
        5,571
       
 
Argentina—1.5%    
Provincia De Buenos Aires RegS
6.375%, 9/1/37(4)(5)
     3,369     1,238
Republic of Argentina      
0.750%, 7/9/30(5)      7,105     2,629
3.625%, 7/9/35(5)      3,364     1,085
        4,952
       
 
Armenia—0.6%    
Republic of Armenia RegS
3.600%, 2/2/31(4)
     2,382     1,856
Azerbaijan—0.4%    
Republic of Azerbaijan 144A
3.500%, 9/1/32(2)
     1,434     1,192
Bahrain—2.4%    
Kingdom of Bahrain      
144A
5.625%, 9/30/31(2)
       380       347
144A
5.250%, 1/25/33(2)
     3,200     2,760
144A
5.625%, 5/18/34(2)
     4,538     3,959
RegS
5.625%, 9/30/31(4)
     1,000       914
        7,980
       
 
Brazil—1.9%    
Federative Republic of Brazil      
4.625%, 1/13/28        228       223
6.000%, 10/20/33      1,069     1,038
5.000%, 1/27/45      1,987     1,525
5.625%, 2/21/47         61        50
4.750%, 1/14/50      4,862     3,501
        6,337
       
 
Chile—2.6%    
Republic of Chile      
2.550%, 7/27/33      5,723     4,553
3.500%, 1/31/34      2,781     2,380
4.950%, 1/5/36      1,074     1,018
  Par Value(1)   Value
       
Chile—continued    
3.860%, 6/21/47 $       670   $    514
        8,465
       
 
Colombia—2.8%    
Republic of Colombia      
4.500%, 3/15/29      4,368     3,909
3.250%, 4/22/32          3         2
8.000%, 11/14/35      1,027     1,061
6.125%, 1/18/41      2,194     1,822
4.125%, 2/22/42        158       103
5.200%, 5/15/49      2,351     1,658
3.875%, 2/15/61        925       514
        9,069
       
 
Costa Rica—1.3%    
Costa Rica Government      
144A
6.550%, 4/3/34(2)
     2,516     2,529
144A
7.300%, 11/13/54(2)
       870       889
RegS
6.550%, 4/3/34(4)
       830       834
        4,252
       
 
Dominican Republic—2.0%    
Dominican Republic      
144A
4.875%, 9/23/32(2)
     1,999     1,720
RegS
5.500%, 2/22/29(4)
       388       366
RegS
5.300%, 1/21/41(4)
     2,810     2,255
RegS
7.450%, 4/30/44(4)
     1,906     1,878
RegS
6.500%, 2/15/48(4)
       429       380
        6,599
       
 
Ecuador—1.1%    
Republic of Ecuador      
144A
0.000%, 7/31/30(2)(6)
     2,403       652
144A
6.000%, 7/31/30(2)(5)
     1,168       537
RegS
6.000%, 7/31/30(4)(5)
     1,179       542
RegS
3.500%, 7/31/35(4)(5)
     3,670     1,285
RegS
2.500%, 7/31/40(4)(5)
     1,640       507
        3,523
       
 
Egypt—2.2%    
Arab Republic of Egypt      
144A
3.875%, 2/16/26(2)
       183       142
144A
5.800%, 9/30/27(2)
       722       512
See Notes to Financial Statements
13


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Egypt—continued    
144A
5.875%, 2/16/31(2)
$         1   $      1
144A
6.375%, 4/11/31(2)
     5,493 EUR     3,542
144A
8.500%, 1/31/47(2)
     1,347       766
144A
7.903%, 2/21/48(2)
       637       349
144A
7.500%, 2/16/61(2)
       646       348
RegS
4.750%, 4/16/26(4)
       257 EUR       217
RegS
5.625%, 4/16/30(4)
     1,422 EUR       929
RegS
8.700%, 3/1/49(4)
       847       485
        7,291
       
 
El Salvador—0.7%    
Republic of El Salvador      
RegS
8.625%, 2/28/29(4)
         1         1
RegS
9.500%, 7/15/52(4)
     3,145     2,464
        2,465
       
 
Ethiopia—0.5%    
Federal Republic of Ethiopia 144A
6.625%, 12/11/24(2)
     2,917     1,779
Gabon—0.6%    
Republic of Gabon      
144A
6.950%, 6/16/25(2)
     1,191     1,093
144A
7.000%, 11/24/31(2)
     1,206       943
        2,036
       
 
Ghana—1.7%    
Republic of Ghana      
144A
10.750%, 10/14/30(2)
     1,001       623
144A
8.950%, 3/26/51(2)(7)
       405       172
RegS
6.375%, 2/11/27(4)(7)
       469       206
RegS
7.625%, 5/16/29(4)(7)
       596       256
RegS
10.750%, 10/14/30(4)
     2,042     1,271
RegS
8.625%, 4/7/34(4)(7)
     1,032       441
RegS
8.627%, 6/16/49(4)(7)
       527       222
RegS
8.950%, 3/26/51(4)(7)
     5,315     2,259
        5,450
       
 
  Par Value(1)   Value
       
Guatemala—1.4%    
Republic of Guatemala      
144A
3.700%, 10/7/33(2)
$     4,721   $  3,652
144A
6.600%, 6/13/36(2)
     1,074     1,035
        4,687
       
 
Honduras—0.1%    
Honduras Government RegS
5.625%, 6/24/30(4)
       302       257
Hungary—1.7%    
Hungary Government International Bond      
144A
6.125%, 5/22/28(2)
       685       696
RegS
2.125%, 9/22/31(4)
     2,515     1,933
RegS
1.750%, 6/5/35(4)
     1,796 EUR     1,383
RegS
1.500%, 11/17/50(4)
     1,207 EUR       665
Magyar Export-Import Bank Zrt 144A
6.125%, 12/4/27(2)
       974       967
        5,644
       
 
India—0.3%    
Export-Import Bank India RegS
5.500%, 1/18/33(4)
       887       876
Indonesia—2.1%    
Republic of Indonesia      
4.650%, 9/20/32      2,659     2,550
4.850%, 1/11/33        311       304
4.300%, 3/31/52      1,048       870
144A
5.250%, 1/8/47(2)
       439       422
RegS
6.750%, 1/15/44(4)
       927     1,052
RegS
5.125%, 1/15/45(4)
     1,727     1,647
        6,845
       
 
Ivory Coast—0.5%    
Ivory Coast Government International Bond      
RegS
4.875%, 1/30/32(4)
       352 EUR       310
RegS
6.125%, 6/15/33(4)
       588       519
RegS
6.625%, 3/22/48(4)
     1,000 EUR       808
        1,637
       
 
Jordan—0.6%    
Kingdom of Jordan      
144A
7.500%, 1/13/29(2)
       765       757
 
See Notes to Financial Statements
14


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Jordan—continued    
RegS
7.375%, 10/10/47(4)
$     1,394   $  1,206
        1,963
       
 
Kenya—0.7%    
Republic of Kenya      
144A
8.000%, 5/22/32(2)
     2,390     2,013
RegS
7.250%, 2/28/28(4)
       471       406
        2,419
       
 
Lebanon—0.3%    
Lebanese Republic      
6.375%, 3/9/20(7)      2,089       115
6.250%, 5/27/22(7)      6,726       370
6.400%, 5/26/23(7)      1,368        75
RegS
5.800%, 4/14/20(4)(7)
     1,612        89
RegS
8.250%, 4/12/21(4)(7)
     3,856       211
          860
       
 
Mexico—1.3%    
United Mexican States      
3.500%, 2/12/34        568       462
6.350%, 2/9/35        979       987
2.250%, 8/12/36      1,405 EUR     1,130
5.000%, 4/27/51        708       574
3.771%, 5/24/61        952       601
3.750%, 4/19/71        700       434
        4,188
       
 
Mongolia—0.1%    
Mongolia Government International Bond 144A
8.650%, 1/19/28(2)
       474       487
Morocco—0.5%    
Kingdom of Morocco      
144A
3.000%, 12/15/32(2)
     1,034       812
144A
6.500%, 9/8/33(2)
       846       855
        1,667
       
 
Mozambique—0.1%    
Republic of Mozambique 144A
9.000%, 9/15/31(2)(5)
       490       391
Nigeria—2.1%    
Republic of Nigeria      
144A
6.500%, 11/28/27(2)
     1,476     1,306
144A
6.125%, 9/28/28(2)
     2,969     2,516
RegS
8.747%, 1/21/31(4)
     1,145     1,031
  Par Value(1)   Value
       
Nigeria—continued    
RegS
7.375%, 9/28/33(4)
$     1,129   $    894
RegS
7.696%, 2/23/38(4)
     1,401     1,060
        6,807
       
 
Oman —3.3%    
Oman Government International Bond      
144A
6.750%, 10/28/27(2)
     1,118     1,163
144A
5.625%, 1/17/28(2)
     5,541     5,535
144A
6.000%, 8/1/29(2)
     1,170     1,185
144A
7.375%, 10/28/32(2)
     1,262     1,389
144A
6.500%, 3/8/47(2)
     1,565     1,499
       10,771
       
 
Pakistan—1.1%    
Islamic Republic of Pakistan      
144A
6.000%, 4/8/26(2)
     4,708     3,225
144A
6.875%, 12/5/27(2)
       465       303
        3,528
       
 
Panama—2.6%    
Panama Bonos del Tesoro
3.362%, 6/30/31
     2,659     2,012
Republic of Panama      
3.160%, 1/23/30      3,724     3,048
6.700%, 1/26/36        746       709
6.853%, 3/28/54      1,581     1,397
3.870%, 7/23/60      1,637       919
4.500%, 1/19/63        950       585
        8,670
       
 
Papua New Guinea —0.1%    
Papua New Guinea Government International Bond 144A
8.375%, 10/4/28(2)
       449       417
Paraguay—0.7%    
Republic of Paraguay      
144A
5.850%, 8/21/33(2)
     1,251     1,210
RegS
4.950%, 4/28/31(4)
     1,051       991
        2,201
       
 
Peru—1.2%    
Republic of Peru      
2.844%, 6/20/30        782       674
2.783%, 1/23/31         25        21
8.750%, 11/21/33        733       891
3.000%, 1/15/34        430       345
 
See Notes to Financial Statements
15


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Peru—continued    
2.780%, 12/1/60 $     3,727   $  2,145
        4,076
       
 
Philippines—1.7%    
Republic of Philippines      
5.000%, 7/17/33      2,462     2,434
2.650%, 12/10/45      2,125     1,371
5.500%, 1/17/48      1,900     1,869
        5,674
       
 
Poland—0.9%    
Republic of Poland      
4.875%, 10/4/33      2,356     2,280
5.500%, 4/4/53        691       663
        2,943
       
 
Qatar—3.5%    
State of Qatar      
144A
3.750%, 4/16/30(2)
     4,352     4,123
144A
5.750%, 1/20/42(2)
     1,580     1,618
144A
5.103%, 4/23/48(2)
     2,157     1,994
144A
4.400%, 4/16/50(2)
     3,966     3,323
RegS
4.400%, 4/16/50(4)
       687       576
       11,634
       
 
Romania—1.6%    
Romania Government International Bond      
144A
5.500%, 9/18/28(2)
     1,580 EUR     1,713
144A
7.125%, 1/17/33(2)
        86        89
144A
3.375%, 2/8/38(2)
       833 EUR       655
144A
2.750%, 4/14/41(2)
     1,171 EUR       776
144A
2.875%, 4/13/42(2)
       848 EUR       565
RegS
4.125%, 3/11/39(4)
       647 EUR       539
RegS
5.125%, 6/15/48(4)
       668       531
RegS
4.000%, 2/14/51(4)
       460       305
        5,173
       
 
Russia—0.0%    
Russian Federation - Eurobond RegS
5.100%, 3/28/35(4)(7)(8)
       100        38
Saudi Arabia—2.6%    
Saudi International Bond      
144A
4.375%, 4/16/29(2)
     3,439     3,336
  Par Value(1)   Value
       
Saudi Arabia—continued    
144A
5.500%, 10/25/32(2)
$     1,544   $  1,584
144A
2.250%, 2/2/33(2)
     2,490     1,970
144A
4.500%, 10/26/46(2)
     1,449     1,174
RegS
3.750%, 1/21/55(4)
       902       618
        8,682
       
 
Serbia—0.4%    
Republic of Serbia      
144A
6.500%, 9/26/33(2)
       425       419
RegS
2.125%, 12/1/30(4)
       419       321
RegS
6.500%, 9/26/33(4)
       694       685
        1,425
       
 
South Africa—1.6%    
Republic of South Africa      
4.300%, 10/12/28        378       340
5.875%, 4/20/32      4,652     4,173
7.300%, 4/20/52        921       794
        5,307
       
 
Sri Lanka—0.9%    
Republic of Sri Lanka      
RegS
6.350%, 6/28/24(4)(7)
     1,194       606
RegS
6.200%, 5/11/27(4)(7)
     3,068     1,538
RegS
7.550%, 3/28/30(4)(7)
     1,860       928
        3,072
       
 
Tunisia—0.0%    
Tunisian Republic 144A
6.375%, 7/15/26(2)
       100 EUR        73
Turkey—4.5%    
Hazine Mustesarligi Varl      
144A
8.509%, 1/14/29(2)
     1,432     1,450
RegS
9.758%, 11/13/25(4)
     1,160     1,212
Republic of Turkiye      
9.875%, 1/15/28      1,463     1,571
9.375%, 3/14/29      3,487     3,692
9.125%, 7/13/30        671       702
5.750%, 5/11/47      8,559     6,045
       14,672
       
 
Ukraine—0.6%    
Ukraine Government Bond      
144A
7.750%, 9/1/27(2)(7)
       437       119
 
See Notes to Financial Statements
16


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Ukraine—continued    
144A
9.750%, 11/1/30(2)(7)
$     2,206   $     631
144A
6.876%, 5/21/31(2)(7)
     1,198       280
RegS
7.750%, 9/1/29(4)(7)
     3,258       900
RegS
9.750%, 11/1/30(4)(7)
       272        78
        2,008
       
 
United Arab Emirates—2.1%    
Abu Dhabi Government International Bond 144A
3.125%, 4/16/30(2)
     3,263     2,981
Finance Department Government of Sharjah 144A
4.000%, 7/28/50(2)
     2,785     1,727
UAE International Government Bond RegS
4.050%, 7/7/32(4)
     2,417     2,302
        7,010
       
 
Uruguay—0.4%    
Republica Orient Uruguay      
5.100%, 6/18/50        764       716
4.975%, 4/20/55        713       649
        1,365
       
 
Venezuela—0.5%    
Republic of Venezuela RegS
7.750%, 10/13/19(4)(7)
    12,291     1,586
Zambia—0.3%    
Republic of Zambia      
144A
5.375%, 9/20/24(2)(7)
     1,488       804
RegS
8.500%, 4/14/24(4)(7)
       509       309
        1,113
       
 
Total Foreign Government Securities
(Identified Cost $231,719)
  218,983
       
 
       
 
Corporate Bonds and Notes—26.5%
Argentina—0.2%    
MSU Energy S.A. 144A
6.875%, 2/1/25(2)
       182       128
YPF S.A. 144A
8.750%, 4/4/24(2)
       389       373
          501
       
 
Azerbaijan—0.7%    
State Oil Co. of the Azerbaijan Republic RegS
6.950%, 3/18/30(4)
     2,441     2,465
Brazil—0.5%    
Guara Norte S.a.r.l. 144A
5.198%, 6/15/34(2)
       384       337
Iochpe-Maxion Austria GmbH 144A
5.000%, 5/7/28(2)
       305       264
  Par Value(1)   Value
       
Brazil—continued    
MC Brazil Downstream Trading S.a.r.l. 144A
7.250%, 6/30/31(2)
$       468   $    353
MV24 Capital B.V. 144A
6.748%, 6/1/34(2)
       868       780
        1,734
       
 
Chile—1.2%    
ATP Tower Holdings LLC 144A
4.050%, 4/27/26(2)
       576       504
Corp. Nacional del Cobre de Chile 144A
5.950%, 1/8/34(2)
     2,038     1,995
Empresa Nacional del Petroleo RegS
5.250%, 11/6/29(4)
     1,491     1,406
        3,905
       
 
China—0.2%    
Huarong Finance II Co., Ltd.      
RegS 4.625%, 6/3/26(4)        200       187
RegS 4.875%, 11/22/26(4)        200       187
Longfor Group Holdings Ltd. RegS
3.950%, 9/16/29(4)
       500       259
          633
       
 
Colombia—0.7%    
AI Candelaria Spain S.A. RegS
5.750%, 6/15/33(4)
     1,044       765
Banco Davivienda S.A. 144A
6.650% (2)(9)
        75        50
Geopark Ltd. 144A
5.500%, 1/17/27(2)
       459       397
Gran Tierra Energy, Inc. 144A
9.500%, 10/15/29(2)
       511       438
SierraCol Energy Andina LLC 144A
6.000%, 6/15/28(2)
       922       733
        2,383
       
 
Georgia—0.1%    
Georgian Railway JSC 144A
4.000%, 6/17/28(2)
       514       443
Ghana—0.5%    
Kosmos Energy Ltd. RegS
7.750%, 5/1/27(4)
       798       729
Tullow Oil plc RegS
7.000%, 3/1/25(4)
     1,139     1,038
        1,767
       
 
India—0.7%    
Adani Electricity Mumbai Ltd. RegS
3.949%, 2/12/30(4)
       294       229
Adani Green Energy Ltd. RegS
4.375%, 9/8/24(4)
       500       476
Adani Renewable Energy RJ Ltd. 144A
4.625%, 10/15/39(2)
       294       215
Adani Transmission Step-One Ltd. 144A
4.000%, 8/3/26(2)
       410       366
Clean Renewable Power Mauritius Pte Ltd. 144A
4.250%, 3/25/27(2)
       150       134
 
See Notes to Financial Statements
17


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
India—continued    
Greenko Dutch B.V.      
144A 3.850%, 3/29/26(2) $       202   $    184
RegS 3.850%, 3/29/26(4)        215       196
Network i2i Ltd.      
144A 5.650%(2)(9)        526       516
RegS 5.650%(4)(9)         50        49
        2,365
       
 
Indonesia—2.2%    
Freeport Indonesia PT RegS
5.315%, 4/14/32(4)
       213       201
Indika Energy Capital III Pte Ltd. RegS
5.875%, 11/9/24(4)
       311       309
Indonesia Asahan Aluminium PT 144A
5.800%, 5/15/50(2)
     3,499     3,044
Medco Maple Tree Pte Ltd. 144A
8.960%, 4/27/29(2)
       250       248
Minejesa Capital B.V. 144A
5.625%, 8/10/37(2)
     1,265     1,031
Pertamina Persero PT RegS
6.000%, 5/3/42(4)
       842       811
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara      
RegS 5.250%, 10/24/42(4)        808       699
RegS 4.875%, 7/17/49(4)      1,048       831
        7,174
       
 
Israel—0.2%    
Energian Israel Finance Ltd. 144A, RegS
4.875%, 3/30/26(2)(4)
       321       293
Leviathan Bond Ltd. 144A, RegS
6.125%, 6/30/25(2)(4)
       345       333
          626
       
 
Jamaica—0.1%    
Digicel International Finance Ltd. 144A
8.750%, 5/25/24(2)
       330       303
Kazakhstan—1.5%    
KazMunayGas National Co. JSC      
144A 3.500%, 4/14/33(2)      2,199     1,709
144A 5.750%, 4/19/47(2)      1,875     1,490
RegS 3.500%, 4/14/33(4)        785       610
QazaqGaz NC JSC 144A
4.375%, 9/26/27(2)
     1,319     1,232
        5,041
       
 
Macau—0.4%    
Sands China Ltd.      
5.650%, 8/8/28        185       177
4.875%, 6/18/30         10         9
3.500%, 8/8/31        153       121
Studio City Finance Ltd. 144A
5.000%, 1/15/29(2)
     1,215       942
        1,249
       
 
  Par Value(1)   Value
       
Mexico—7.3%    
Banco Mercantil del Norte S.A. 144A
5.875% (2)(9)
$     1,248   $  1,117
BBVA Bancomer S.A. 144A
5.125%, 1/18/33(2)
       617       551
Cemex SAB de C.V. 144A
9.125% (2)(9)
       760       792
Comision Federal de Electricidad RegS
3.875%, 7/26/33(4)
     3,424     2,590
Grupo Aeromexico SAB de C.V. 144A
8.500%, 3/17/27(2)
       692       655
Petroleos Mexicanos      
6.500%, 1/23/29      2,790     2,331
8.750%, 6/2/29      2,496     2,278
6.500%, 6/2/41        262       164
6.950%, 1/28/60      1,050       640
Poinsettia Finance Ltd. RegS
6.625%, 6/17/31(4)
    14,803    12,144
Sitios Latinoamerica SAB de C.V. 144A
5.375%, 4/4/32(2)
       303       267
Sixsigma Networks Mexico S.A. de C.V. 144A
7.500%, 5/2/25(2)
       682       612
       24,141
       
 
Morocco—0.6%    
OCP S.A. 144A
5.125%, 6/23/51(2)
     2,703     1,933
Nigeria—0.2%    
Access Bank plc 144A
6.125%, 9/21/26(2)
       307       263
IHS Netherlands Holdco B.V. 144A
8.000%, 9/18/27(2)
       400       349
          612
       
 
Peru—1.4%    
Peru Payroll Deduction Finance Ltd. RegS
0.000%, 11/1/29(4)(6)(10)
     1,447     1,184
Petroleos del Peru S.A.      
144A 5.625%, 6/19/47(2)      2,226     1,315
RegS 4.750%, 6/19/32(4)      3,272     2,277
        4,776
       
 
Saudi Arabia—2.0%    
Gaci First Investment Co.      
RegS 5.250%, 10/13/32(4)      5,382     5,382
RegS 4.875%, 2/14/35(4)        309       288
RegS 5.125%, 2/14/53(4)      1,082       904
        6,574
       
 
Singapore—0.1%    
LMIRT Capital Pte Ltd. RegS
7.250%, 6/19/24(4)
       590       395
South Africa—1.0%    
Eskom Holdings SOC Ltd.      
144A 7.125%, 2/11/25(2)        545       542
144A 8.450%, 8/10/28(2)      1,509     1,487
RegS 7.125%, 2/11/25(4)        200       199
 
See Notes to Financial Statements
18


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
South Africa—continued    
Prosus N.V. 144A
3.061%, 7/13/31(2)
$       731   $     567
Sasol Financing USA LLC
4.375%, 9/18/26
       632       576
        3,371
       
 
Tanzania—0.2%    
HTA Group Ltd. 144A
7.000%, 12/18/25(2)
       538       525
Turkey—0.3%    
Aydem Yenilenebilir Enerji AS 144A
7.750%, 2/2/27(2)
       865       761
WE Soda Investments Holding plc 144A
9.500%, 10/6/28(2)
       138       140
          901
       
 
Ukraine—0.3%    
NPC Ukrenergo 144A
6.875%, 11/9/28(2)(7)
     3,633       964
State Savings Bank of Ukraine Via SSB #1 plc RegS
9.625%, 3/20/25(3)(4)(5)
       105        97
        1,061
       
 
United Arab Emirates—2.2%    
Abu Dhabi Crude Oil Pipeline LLC 144A
4.600%, 11/2/47(2)
       751       654
DAE Funding LLC 144A
3.375%, 3/20/28(2)
       612       552
DP World Ltd.      
144A 6.850%, 7/2/37(2)        511       537
144A 4.700%, 9/30/49(2)        450       349
RegS 4.700%, 9/30/49(4)        500       387
DP World Salaam RegS
6.000% (4)(9)
     2,145     2,112
MAF Global Securities Ltd. RegS
6.375% (4)(9)
       517       498
MDGH GMTN RSC Ltd. 144A
5.875%, 5/1/34(2)
     1,967     2,048
        7,137
       
 
Uzbekistan—0.9%    
Uzauto Motors AJ      
144A 4.850%, 5/4/26(2)      2,565     2,222
RegS 4.850%, 5/4/26(4)        697       604
        2,826
       
 
Venezuela—0.5%    
Petroleos de Venezuela S.A. RegS
6.000%, 5/16/24(4)(7)
    12,618     1,514
Vietnam—0.3%    
Mong Duong Finance Holdings B.V. 144A
5.125%, 5/7/29(2)
     1,020       937
Total Corporate Bonds and Notes
(Identified Cost $98,861)
   87,292
    
  Shares   Value
Affiliated Mutual Funds—3.3%
Fixed Income Funds—3.3%    
Virtus Stone Harbor Emerging Markets Bond Fund Class I(11)(12)    613,333   $   4,674
Virtus Stone Harbor Local Markets Fund Class I(11)(12)(13)    788,382     6,362
Total Affiliated Mutual Funds
(Identified Cost $11,249)
   11,036
    
  Par Value(1)  
Credit Linked Notes—1.3%
Iraq—1.3%  
Republic of Iraq    
(Counterparty: BOA)
2.536%, 1/1/28(5)(10)
   291,473 JPY   1,771
(Counterparty: BOA)
3.211%, 1/1/28(5)(10)
   132,849 JPY     805
(Counterparty: BOA)
3.340%, 1/6/28(5)(10)
   286,207 JPY   1,738
Total Credit Linked Notes
(Identified Cost $6,793)
  4,314
     
 
     
 
Total Long-Term Investments—97.5%
(Identified Cost $348,622)
321,625
     
 
     
 
TOTAL INVESTMENTS—97.5%
(Identified Cost $348,622)
$321,625
Other assets and liabilities, net—2.5%   8,191
NET ASSETS—100.0% $329,816
    
Abbreviations:
DAC Designated Activity Company
GMTN Global Medium Term Note
JSC Joint Stock Company
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
    
Footnote Legend:
(1) Par Value disclosed in foreign currency is reported in thousands.
(2) 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 November 30, 2023, these securities amounted to a value of $128,863 or 39.1% of net assets.
(3) This Note was issued for the sole purpose of funding a leveraged loan between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.
(4) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(5) Variable rate security. Rate disclosed is as of November 30, 2023. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
 
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
19


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
(6) Issued with a zero coupon. Income is recognized through the accretion of discount.
(7) Security in default; no interest payments are being received.
(8) The Fund is unable to trade and repatriate proceeds due to U.S. sanctions related to the Russia/Ukraine war.
(9) No contractual maturity date.
(10) 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.
(11) Affiliated investment. See Note 4H in Notes to Financial Statements.
(12) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(13) Non-income producing.
    
Counterparties:  
BOA Bank of America
CITI Citigroup Global Markets
JPM JPMorgan Chase Bank N.A.
    
Foreign Currencies:  
EUR Euro
JPY Japanese Yen
USD United States Dollar
    
Country Weightings
Mexico 9%
Turkey 5
Saudi Arabia 5
United Arab Emirates 4
Indonesia 4
Chile 4
Qatar 4
Other 65
Total 100%
% of total investments as of November 30, 2023.
 
Forward foreign currency exchange contracts as of November 30, 2023 were as follows:
Currency
Purchased
Currency
Amount
Purchased
Currency
Sold
Currency
Amount
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
  Unrealized
Depreciation
EUR 316 USD 340 CITI 01/19/24 $ 4   $ — 
EUR 833 USD 885 JPM 01/19/24 24   — 
USD 902 EUR 831 CITI 01/19/24   (5)
USD 13,552 EUR 12,770 JPM 01/19/24   (379)
Total $28   $ (384)
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
  Level 2
Significant
Observable
Inputs
  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Instruments:              
Foreign Government Securities $218,983   $   $218,983   $
Corporate Bonds and Notes 87,292     86,108   1,184
Credit Linked Notes 4,314       4,314
Affiliated Mutual Funds 11,036   11,036    
Other Financial Instruments:              
Forward Foreign Currency Exchange Contracts 28     28  
Total Assets 321,653   11,036   305,119   5,498
Liabilities:              
Other Financial Instruments:              
Forward Foreign Currency Exchange Contracts (384)     (384)  
Total Liabilities (384)     (384)  
Total Investments $321,269   $11,036   $304,735   $5,498
Securities held by the Fund with an end of period value of $1,184 were transferred from Level 2 to Level 3 due to a decrease in trading activities during the period.
Securities held by the Fund with an end of period value of $38 were transferred from Level 3 to Level 2 due to an increase in trading activities during the period.
Some of the Fund’s investments that were categorized as Level 3 may have been valued utilizing third party pricing information without adjustment. If applicable, 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.
See Notes to Financial Statements
20


Table of Contents
Stone Harbor Emerging Markets Debt Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Corporate
Bonds
And Notes
  Credit Linked
Notes
  Foreign
Government
Securities
Investments in Securities              
Balance as of May 31, 2023: $ 5,059   $  12   $ 5,042   $  5
Accrued discount/(premium) 53     53  
Net realized gain (loss) (23)   (23)    
Net change in unrealized appreciation (depreciation)(a) 88   86   (31)   33
Sales (b) (825)   (75)   (750)  
Transfers into Level 3(c) 1,184   1,184    
Transfers from Level 3(c) (38)       (38)
Balance as of November 30, 2023 $ 5,498   $ 1,184   $ 4,314   $  —
(a) The net change in unrealized appreciation (depreciation) on investments still held at November 30, 2023, was $(31).
(b) Includes paydowns on securities.
(c) “Transfers into and/or from” represent the ending value as of November 30, 2023 for any investment security where a change in the pricing level occurred from the beginning to the end of the period.
See Notes to Financial Statements
21


Table of Contents
Stone Harbor High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Par Value   Value
Corporate Bonds and Notes—95.9%
Aerospace & Defense—0.7%    
TransDigm, Inc.      
144A 6.875%, 12/15/30(1) $    145   $   145
144A 7.125%, 12/1/31(1)       5        5
         150
       
 
Airlines—2.9%    
Air Canada 144A
3.875%, 8/15/26(1)
    190      177
United Airlines, Inc. 144A
4.375%, 4/15/26(1)
    187      178
VistaJet Malta Finance plc      
144A 7.875%, 5/1/27(1)     374      316
144A 9.500%, 6/1/28(1)       7        6
         677
       
 
Building Products—4.0%    
LBM Acquisition LLC 144A
6.250%, 1/15/29(1)
    383      321
Specialty Building Products Holdings LLC 144A
6.375%, 9/30/26(1)
    378      367
Summit Materials LLC 144A
7.250%, 1/15/31(1)
     15       15
White Cap Buyer LLC 144A
6.875%, 10/15/28(1)
    227      207
         910
       
 
Chemicals—4.5%    
Illuminate Buyer LLC 144A
9.000%, 7/1/28(1)
    397      373
INEOS Quattro Finance 2 plc 144A
9.625%, 3/15/29(1)
    119      123
LSB Industries, Inc. 144A
6.250%, 10/15/28(1)
    263      245
Windsor Holdings III LLC 144A
8.500%, 6/15/30(1)
    119      123
WR Grace Holdings LLC 144A
5.625%, 8/15/29(1)
    208      175
       1,039
       
 
Consumer Products—2.8%    
Coty, Inc. 144A
6.625%, 7/15/30(1)
     85       85
Kronos Acquisition Holdings, Inc. 144A
7.000%, 12/31/27(1)
    277      257
Newell Brands, Inc.
6.625%, 9/15/29
    316      308
         650
       
 
Containers & Packaging—2.7%    
Graham Packaging Co., Inc. 144A
7.125%, 8/15/28(1)
    246      217
Mauser Packaging Solutions Holding Co. 144A
7.875%, 8/15/26(1)
    119      118
  Par Value   Value
       
Containers & Packaging—continued    
Trivium Packaging Finance B.V. 144A
8.500%, 8/15/27(1)
$    302   $   274
         609
       
 
Drillers & Services—4.2%    
Enerflex Ltd. 144A
9.000%, 10/15/27(1)
    283      266
Helix Energy Solutions Group, Inc. 144A
9.750%, 3/1/29(1)
    150      150
Nabors Industries Ltd. 144A
7.250%, 1/15/26(1)
    175      167
Precision Drilling Corp. 144A
6.875%, 1/15/29(1)
    278      263
Transocean, Inc. 144A
11.500%, 1/30/27(1)
    115      120
         966
       
 
Electric—1.7%    
NRG Energy, Inc. 144A
7.000%, 3/15/33(1)
    385      389
Exploration & Production—5.4%    
Antero Resources Corp.      
144A 7.625%, 2/1/29(1)     189      194
144A 5.375%, 3/1/30(1)      55       51
Ascent Resources Utica Holdings LLC 144A
5.875%, 6/30/29(1)
    265      244
Chesapeake Energy Corp. 144A
5.875%, 2/1/29(1)
    133      128
Civitas Resources, Inc. 144A
8.750%, 7/1/31(1)
     35       36
Hilcorp Energy I LP      
144A 6.250%, 11/1/28(1)     274      267
144A 5.750%, 2/1/29(1)      28       26
144A 6.000%, 4/15/30(1)      28       26
SM Energy Co.      
5.625%, 6/1/25     133      131
6.500%, 7/15/28     122      119
Viper Energy, Inc. 144A
7.375%, 11/1/31(1)
     30       30
       1,252
       
 
Financial & Lease—7.9%    
Acrisure LLC      
144A 7.000%, 11/15/25(1)     257      254
144A 6.000%, 8/1/29(1)     221      190
Alliant Holdings Intermediate LLC      
144A 6.750%, 10/15/27(1)     278      266
144A 5.875%, 11/1/29(1)     140      127
Global Atlantic Fin Co. 144A
7.950%, 6/15/33(1)
    305      329
Nationstar Mortgage Holdings, Inc. 144A
5.750%, 11/15/31(1)
    394      344
OneMain Finance Corp.      
3.500%, 1/15/27     141      126
6.625%, 1/15/28     105      102
UBS Group AG      
144A 9.250%(1)(2)      40       42
See Notes to Financial Statements
22


Table of Contents
Stone Harbor High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value   Value
       
Financial & Lease—continued    
144A 9.250%(1)(2) $     40   $    42
       1,822
       
 
Food, Beverages & Tobacco—3.1%    
Pilgrim’s Pride Corp.
3.500%, 3/1/32
    459      372
Triton Water Holdings, Inc. 144A
6.250%, 4/1/29(1)
    400      342
         714
       
 
Gaming—3.2%    
MGM Growth Properties Operating Partnership LP
5.750%, 2/1/27
    282      274
Ontario Gaming GTA LP 144A
8.000%, 8/1/30(1)
     85       86
Raptor Acquisition Corp. 144A
4.875%, 11/1/26(1)
    272      254
VICI Properties LP 144A
4.125%, 8/15/30(1)
    128      111
         725
       
 
Health Care—7.9%    
AdaptHealth LLC      
144A 4.625%, 8/1/29(1)     114       90
144A 5.125%, 3/1/30(1)      96       77
Catalent Pharma Solutions, Inc. 144A
3.500%, 4/1/30(1)
    367      307
Community Health Systems, Inc. 144A
5.250%, 5/15/30(1)
    402      316
Endo Luxembourg Finance Co. I S.a.r.l. 144A
6.125%, 4/1/29(1)(3)
    403      259
LifePoint Health, Inc.      
144A 9.875%, 8/15/30(1)     295      287
144A 11.000%, 10/15/30(1)      75       75
Teva Pharmaceutical Finance Netherlands III B.V.
8.125%, 9/15/31
    114      120
US Acute Care Solutions LLC 144A
6.375%, 3/1/26(1)
    356      280
       1,811
       
 
Home Builders—3.9%    
Ashton Woods USA LLC 144A
4.625%, 4/1/30(1)
     76       63
KB Home      
4.800%, 11/15/29      97       88
7.250%, 7/15/30     114      115
Mattamy Group Corp. 144A
4.625%, 3/1/30(1)
    222      196
MDC Holdings, Inc.
3.966%, 8/6/61
    417      247
Weekley Homes LLC 144A
4.875%, 9/15/28(1)
    211      193
         902
       
 
Industrial Other—4.2%    
ASP Unifrax Holdings, Inc. 144A
5.250%, 9/30/28(1)
    441      303
  Par Value   Value
       
Industrial Other—continued    
Chart Industries, Inc.      
144A 7.500%, 1/1/30(1) $     51   $    52
144A 9.500%, 1/1/31(1)      51       55
Madison IAQ LLC 144A
5.875%, 6/30/29(1)
     30       25
Regal Rexnord Corp. 144A
6.400%, 4/15/33(1)
    260      256
United Rentals North America, Inc.
3.750%, 1/15/32
    327      277
         968
       
 
Leisure—4.6%    
Carnival Corp.      
144A 7.625%, 3/1/26(1)     321      323
144A 6.000%, 5/1/29(1)      84       77
NCL Corp., Ltd.      
144A 5.875%, 3/15/26(1)     115      109
144A 7.750%, 2/15/29(1)     104       99
NCL Finance Ltd. 144A
6.125%, 3/15/28(1)
    202      183
Royal Caribbean Cruises Ltd.      
144A 11.625%, 8/15/27(1)     193      209
144A 5.500%, 4/1/28(1)      67       64
       1,064
       
 
Media Cable—8.1%    
Altice France Holding S.A. 144A
6.000%, 2/15/28(1)
    182       74
Altice France S.A.      
144A 5.125%, 1/15/29(1)      29       21
144A 5.125%, 7/15/29(1)     298      213
CCO Holdings LLC      
144A 5.375%, 6/1/29(1)     115      107
144A 4.500%, 8/15/30(1)     519      445
CSC Holdings LLC      
144A 7.500%, 4/1/28(1)     419      287
144A 4.125%, 12/1/30(1)     322      229
DISH DBS Corp.      
5.875%, 11/15/24      95       83
7.750%, 7/1/26      35       21
7.375%, 7/1/28     144       71
5.125%, 6/1/29     173       78
144A 5.250%, 12/1/26(1)     170      137
144A 5.750%, 12/1/28(1)     122       90
       1,856
       
 
Media Other—4.5%    
CMG Media Corp. 144A
8.875%, 12/15/27(1)
    428      343
Gray Escrow II, Inc. 144A
5.375%, 11/15/31(1)
    512      365
Univision Communications, Inc. 144A
6.625%, 6/1/27(1)
    336      331
       1,039
       
 
Midstream—6.7%    
Antero Midstream Partners LP      
144A 5.750%, 3/1/27(1)     130      127
144A 5.750%, 1/15/28(1)     157      152
 
See Notes to Financial Statements
23


Table of Contents
Stone Harbor High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value   Value
       
Midstream—continued    
CNX Midstream Partners LP 144A
4.750%, 4/15/30(1)
$     12   $    10
DT Midstream, Inc. 144A
4.375%, 6/15/31(1)
    206      181
Enbridge, Inc.
8.500%, 1/15/84
    318      319
Ferrellgas LP 144A
5.375%, 4/1/26(1)
    120      115
Genesis Energy LP      
8.000%, 1/15/27     163      163
7.750%, 2/1/28     259      256
Hess Midstream Operations LP      
144A 4.250%, 2/15/30(1)      45       40
144A 5.500%, 10/15/30(1)     189      178
       1,541
       
 
Refining—0.6%    
Sunoco LP
4.500%, 4/30/30
    143      129
Retail Food & Drug—0.6%    
Albertsons Cos., Inc. 144A
4.875%, 2/15/30(1)
    149      139
Retail Non Food & Drug—3.1%    
LCM Investments Holdings II LLC 144A
4.875%, 5/1/29(1)
    254      222
Michaels Cos., Inc. (The)      
144A 5.250%, 5/1/28(1)     183      134
144A 7.875%, 5/1/29(1)     162       92
PetSmart, Inc. 144A
7.750%, 2/15/29(1)
    273      257
         705
       
 
Satellite—2.4%    
Hughes Satellite Systems Corp.
6.625%, 8/1/26
    276      217
Intelsat Jackson Holdings S.A. Escrow
5.500%, 8/1/23(4)
    464       —
Viasat, Inc. 144A
5.625%, 9/15/25(1)
    339      324
         541
       
 
Services Other—3.7%    
ADT Security Corp. (The) 144A
4.125%, 8/1/29(1)
    200      178
GFL Environmental, Inc.      
144A 4.750%, 6/15/29(1)     126      115
144A 4.375%, 8/15/29(1)     310      274
Prime Security Services Borrower LLC 144A
6.250%, 1/15/28(1)
    293      281
         848
       
 
Technology—1.3%    
CommScope Technologies LLC 144A
6.000%, 6/15/25(1)
    249      195
  Par Value   Value
       
Technology—continued    
Rackspace Technology Global, Inc. 144A
3.500%, 2/15/28(1)
$    261   $    107
         302
       
 
Transport Other—1.2%    
Hertz Corp. (The)      
144A 4.625%, 12/1/26(1)     167      147
144A 5.000%, 12/1/29(1)     169      130
         277
       
 
Total Corporate Bonds and Notes
(Identified Cost $23,012)
  22,025
    
  Shares  
Common Stock—0.5%
Satellite—0.5%  
Intelsat Emergence S.A.(4)(5)   4,347    112
Total Common Stock
(Identified Cost $157)
   112
     
 
     
 
Rights—0.0%
Satellite—0.0%  
Intelsat Jackson Holdings S.A. Series A, 12/31/23(4)(5)     455      3
Intelsat Jackson Holdings S.A. Series B, 12/31/23(4)(5)     455      3
Total Rights
(Identified Cost $—)
     6
     
 
     
 
Total Long-Term Investments—96.4%
(Identified Cost $23,169)
22,143
     
 
     
 
Short-Term Investment—0.8%
Money Market Mutual Fund—0.8%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.237%)(6) 199,269    199
Total Short-Term Investment
(Identified Cost $199)
   199
     
 
     
 
TOTAL INVESTMENTS—97.2%
(Identified Cost $23,368)
$22,342
Other assets and liabilities, net—2.8%    636
NET ASSETS—100.0% $22,978
    
Abbreviations:
LLC Limited Liability Company
LP Limited Partnership
    
 
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
24


Table of Contents
Stone Harbor High Yield Bond Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
Footnote Legend:
(1) 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 November 30, 2023, these securities amounted to a value of $18,409 or 80.1% of net assets.
(2) No contractual maturity date.
(3) Security in default; no interest payments are being received.
(4) 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.
(5) Non-income producing.
(6) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
Country Weightings
United States 85%
Canada 10
Switzerland 2
France 1
Netherlands 1
United Kingdom 1
Total 100%
% of total investments as of November 30, 2023.
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
  Level 2
Significant
Observable
Inputs
  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Instruments:              
Corporate Bonds and Notes $22,025   $   $22,025   $ (1)
Equity Securities:              
Common Stock 112       112
Rights 6       6
Money Market Mutual Fund 199   199    
Total Investments $22,342   $199   $22,025   $118
    
(1) Includes internally fair valued securities currently priced at zero ($0).
There were no securities valued using quoted prices (Level 1) at November 30, 2023.
Some of the Fund’s investments that were categorized as Level 3 may have been valued utilizing third party pricing information without adjustment. If applicable, 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.
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Common
stock
  Rights
Investments in Securities          
Balance as of May 31, 2023: $ 111   $ 106   $  5
Net change in unrealized appreciation (depreciation)(b) 7   6   1
Purchases (a)   (a)   (a)
Balance as of November 30, 2023 $ 118   $ 112   $  6
(a) Amount is less than $500 (not in thousands).
(b) The net change in unrealized appreciation (depreciation) on investments still held at November 30, 2023, was $7.
See Notes to Financial Statements
25


Table of Contents
Stone Harbor Local Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
Foreign Government Securities—95.0%
Brazil—15.0%    
Brazil Notas do Tesouro Nacional      
Series F
10.000%, 1/1/25
       3,470 BRL   $   702
Series F
10.000%, 1/1/31
       6,460 BRL    1,264
       1,966
       
 
Chile—1.1%    
Bonos Tesoreria Pesos      
5.000%, 3/1/35       60,000 CLP       65
144A, RegS
5.000%, 10/1/28(2)(3)
      75,000 CLP       84
         149
       
 
China—5.8%    
China Government Bond      
2.850%, 6/4/27          100 CNY       14
3.130%, 11/21/29        1,880 CNY      272
2.890%, 11/18/31        2,040 CNY      290
3.720%, 4/12/51        1,160 CNY      184
         760
       
 
Colombia—6.5%    
Bogota Distrio Capital RegS
9.750%, 7/26/28(3)
   1,891,000 COP      439
Titulos De Tesoreria      
9.250%, 5/28/42      652,000 COP      137
7.250%, 10/26/50    1,685,000 COP      281
         857
       
 
Czech Republic—5.7%    
Czech Republic      
0.250%, 2/10/27        3,070 CZK      121
2.750%, 7/23/29        1,920 CZK       79
RegS
0.950%, 5/15/30(3)
       7,920 CZK      289
RegS
4.200%, 12/4/36(3)
       5,910 CZK      261
         750
       
 
Hungary—1.4%    
Hungary Government Bond
4.750%, 11/24/32
      77,000 HUF      190
Indonesia—11.0%    
Indonesia Government Bond      
8.375%, 3/15/24    4,200,000 IDR      272
9.000%, 3/15/29    2,120,000 IDR      150
8.250%, 6/15/32      480,000 IDR       34
8.375%, 3/15/34    2,938,000 IDR      212
8.250%, 5/15/36    3,500,000 IDR      251
7.500%, 5/15/38    6,508,000 IDR      445
8.375%, 4/15/39      970,000 IDR       71
       1,435
       
 
  Par Value(1)   Value
       
Malaysia—11.4%    
Malaysia Government Bond      
3.906%, 7/15/26        2,356 MYR   $   511
3.885%, 8/15/29          135 MYR       29
2.632%, 4/15/31        2,220 MYR      438
3.582%, 7/15/32        2,220 MYR      466
4.893%, 6/8/38          220 MYR       52
       1,496
       
 
Mexico—10.0%    
Mex Bonos Desarr      
7.750%, 5/29/31        1,120 MXN       59
7.750%, 11/23/34        6,510 MXN      333
8.500%, 11/18/38        1,440 MXN       77
7.750%, 11/13/42       12,760 MXN      623
8.000%, 11/7/47        4,380 MXN      217
       1,309
       
 
Peru—2.3%    
Bonos De Tesoreria      
6.150%, 8/12/32          900 PEN      227
5.400%, 8/12/34          194 PEN       45
5.350%, 8/12/40          150 PEN       32
         304
       
 
Poland—4.6%    
Poland Government Bond      
2.500%, 7/25/26           55 PLN       13
2.750%, 4/25/28          305 PLN       69
1.750%, 4/25/32        2,740 PLN      517
         599
       
 
Romania—3.8%    
Romania Government Bond      
8.000%, 4/29/30          850 RON      196
4.750%, 10/11/34        1,630 RON      297
         493
       
 
South Africa—10.2%    
Republic of South Africa      
8.500%, 1/31/37        5,430 ZAR      223
6.500%, 2/28/41       24,190 ZAR      771
8.750%, 1/31/44        8,580 ZAR      337
       1,331
       
 
Thailand—5.4%    
Thailand Government Bond      
2.875%, 12/17/28        2,900 THB       83
3.775%, 6/25/32        3,300 THB      100
1.585%, 12/17/35       11,550 THB      280
3.300%, 6/17/38        5,950 THB      170
4.675%, 6/29/44        2,180 THB       73
         706
       
 
Uruguay—0.8%    
Republica Orient Uruguay      
8.250%, 5/21/31        3,200 UYU       76
See Notes to Financial Statements
26


Table of Contents
Stone Harbor Local Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Uruguay—continued    
144A
8.500%, 3/15/28(2)
       1,000 UYU   $     24
         100
       
 
Total Foreign Government Securities
(Identified Cost $12,535)
  12,445
       
 
       
 
Corporate Bonds and Notes—4.4%
Poland—4.4%    
Kreditanstalt fuer Wiederaufbau
0.625%, 7/25/25
       2,500 PLN      574
Total Corporate Bonds and Notes
(Identified Cost $622)
     574
       
 
       
 
Total Long-Term Investments—99.4%
(Identified Cost $13,157)
  13,019
    
  Shares  
Short-Term Investments—1.5%
Money Market Mutual Fund—0.9%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.237%)(4)      114,784    115
Total Money Market Mutual Fund
(Identified Cost $115)
   115
    
  Par Value  
Foreign Government Security—0.6%    
Kazakhstan—0.6%    
National Bank of Kazakhstan Note
0.000%, 12/13/23(5)
      37,000 KZT     80
Total Foreign Government Security
(Identified Cost $79)
      80
     
 
     
 
Total Short-Term Investments
(Identified Cost $194)
    195
     
 
     
 
TOTAL INVESTMENTS—100.9%
(Identified Cost $13,351)
$ 13,214
Other assets and liabilities, net—(0.9)%   (120)
NET ASSETS—100.0% $ 13,094
    
Footnote Legend:
(1) Par Value disclosed in foreign currency is reported in thousands.
(2) 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 November 30, 2023, these securities amounted to a value of $108 or 0.8% of net assets.
(3) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(4) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(5) Issued with a zero coupon. Income is recognized through the accretion of discount.
    
Counterparties:  
CITI Citigroup Global Markets
GS Goldman Sachs & Co.
JPM JPMorgan Chase Bank N.A.
    
Foreign Currencies:  
BRL Brazilian Real
CLP Chilean Peso
CNH Chinese Yuan Offshore
CNY Chinese Yuan
COP Colombian Peso
CZK Czech Koruna
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
KZT Kazakhstani Tenge
MXN Mexican Peso
MYR Malaysian Ringgit
PEN Peruvian Nuevo Sol
PLN Polish Zloty
RON Romania New Leu
RSD Serbian Dinar
RUB Russian Ruble
THB Thailand Baht
TRY Turkish Lira
USD United States Dollar
UYU Uruguayan Peso
ZAR South African Rand
    
Country Weightings
Brazil 15%
Malaysia 11
Indonesia 11
South Africa 10
Mexico 10
Poland 9
Colombia 6
Other 28
Total 100%
% of total investments as of November 30, 2023.
 
See Notes to Financial Statements
27


Table of Contents
Stone Harbor Local Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
Forward foreign currency exchange contracts as of November 30, 2023 were as follows:
Currency
Purchased
Currency
Amount
Purchased
Currency
Sold
Currency
Amount
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
  Unrealized
Depreciation
BRL 77 USD 16 JPM 01/03/24 $   $ — (1)
CNH 7,635 USD 1,056 JPM 12/05/23 13   — 
CNH 4,750 USD 667 JPM 02/06/24 1   — 
CZK 2,310 USD 104 JPM 12/06/23   (1)
CZK 4,950 USD 222 JPM 02/08/24   (1)
HUF 106,000 USD 285 GS 12/07/23 19   — 
HUF 106,000 USD 305 GS 02/08/24   (4)
IDR 4,685,000 USD 300 JPM 12/08/23 2   — 
INR 19,300 USD 232 JPM 12/11/23   —  (1)
MXN 16,300 USD 932 JPM 01/17/24   (1)
PLN 310 USD 71 JPM 12/07/23 6   — 
RON 415 USD 88 JPM 01/16/24 3   — 
RSD 5,200 USD 47 JPM 12/13/23 1   — 
THB 24,300 USD 657 GS 12/08/23 34   — 
THB 9,850 USD 271 JPM 12/08/23 9   — 
TRY 4,320 USD 143 JPM 01/19/24 (1)   — 
USD 1,059 CNH 7,635 JPM 12/05/23   (10)
USD 100 CZK 2,310 JPM 12/06/23   (4)
USD 307 HUF 106,000 GS 12/07/23 4   — 
USD 71 PLN 310 JPM 12/07/23   (7)
USD 84 IDR 1,330,000 JPM 12/08/23   (2)
USD 23 THB 800 JPM 12/08/23   —  (1)
USD 47 RSD 5,200 JPM 12/13/23   (1)
USD 386 BRL 1,937 JPM 01/03/24   (6)
USD 148 RON 695 JPM 01/16/24   (4)
USD 613 MXN 11,190 JPM 01/17/24   (26)
USD 81 COP 332,000 CITI 01/18/24   —  (1)
USD 26 RUB 2,700 GS 01/18/24   (3)
USD 351 ZAR 6,530 JPM 01/22/24 6   — 
USD 97 CZK 2,160 JPM 02/08/24 1   — 
ZAR 5,400 USD 285 JPM 01/22/24 1   — 
Total $100   $ (70)
    
Footnote Legend:
(1) Amount is less than $500 (not in thousands).
See Notes to Financial Statements
28


Table of Contents
Stone Harbor Local Markets Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
  Level 2
Significant
Observable
Inputs
Assets:          
Debt Instruments:          
Foreign Government Securities $12,525   $   $12,525
Corporate Bonds and Notes 574     574
Money Market Mutual Fund 115   115  
Other Financial Instruments:          
Forward Foreign Currency Exchange Contracts 100     100
Total Assets 13,314   115   13,199
Liabilities:          
Other Financial Instruments:          
Forward Foreign Currency Exchange Contracts (70)     (70)
Total Liabilities (70)     (70)
Total Investments $13,244   $115   $13,129
There were no securities valued using significant unobservable inputs (Level 3) at November 30, 2023.
There were no transfers into or out of Level 3 related to securities held at November 30, 2023.
See Notes to Financial Statements
29


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
U.S. Government Securities—6.2%
U.S. Treasury Bonds      
2.500%, 2/15/46 $      500   $    347
3.625%, 2/15/53       300      256
U.S. Treasury Notes      
2.000%, 8/15/25       300      286
2.750%, 2/15/28       300      282
3.625%, 5/31/28       200      194
1.250%, 8/15/31       725      579
2.875%, 5/15/32       500      448
Total U.S. Government Securities
(Identified Cost $2,642)
   2,392
       
 
       
 
Mortgage-Backed Securities—9.9%
Agency—7.5%    
Federal National Mortgage Association      
Pool #AR8557
3.000%, 7/1/27
       12       12
TBA
2.500%, 12/1/53
    3,000    2,429
TBA
5.000%, 12/1/53
      500      481
       2,922
       
 
Non-Agency—2.4%    
BBCMS Mortgage Trust      
2018-TALL, A (1 month Term SOFR + 0.919%, Cap N/A, Floor 0.872%) 144A
6.242%, 3/15/37(2)(3)
       75       69
2018-TALL, C (1 month Term SOFR + 1.318%, Cap N/A, Floor 1.271%) 144A
6.641%, 3/15/37(2)(3)
       25       20
BB-UBS Trust 2012-TFT, A 144A
2.892%, 6/5/30(2)
       53       46
BX Commercial Mortgage Trust      
2019-IMC, A (1 month Term SOFR + 1.046%, Cap N/A, Floor 1.000%) 144A
6.369%, 4/15/34(2)(3)
      150      149
2019-IMC, B (1 month Term SOFR + 1.346%, Cap N/A, Floor 1.300%) 144A
6.669%, 4/15/34(2)(3)
      100       99
CLNY Trust 2019-IKPR, A (1 month Term SOFR + 1.243%, Cap N/A, Floor 1.243%) 144A
6.566%, 11/15/38(2)(3)
       50       49
Commercial Mortgage Pass Through Certificates 2012-LTRT, A2 144A
3.400%, 10/5/30(2)
       61       52
HMH Trust 2017-NSS, A 144A
3.062%, 7/5/31(2)
       50       43
Hudsons Bay Simon JV Trust 2015-HB10, A10 144A
4.155%, 8/5/34(2)
      125      109
JP Morgan Chase Commercial Mortgage Securities Trust      
2006-LDP9, AMS
5.337%, 5/15/47
       72       69
2014-DSTY, A 144A
3.429%, 6/10/27(2)
      120       42
Morgan Stanley Capital I Trust 2019-BPR, D (1 month Term SOFR + 4.592%, Cap N/A, Floor 4.000%) 144A
9.913%, 5/15/36(2)(3)
       75       70
  Par Value(1)   Value
       
Non-Agency—continued    
Palisades Center Trust 2016-PLSD, A 144A
2.713%, 4/13/33(2)
$      100   $     54
Verus Securitization Trust 2021-3, A1 144A
1.046%, 6/25/66(2)(3)
       63       51
         922
       
 
Total Mortgage-Backed Securities
(Identified Cost $3,886)
   3,844
       
 
       
 
Asset-Backed Securities—0.4%
Automobiles—0.3%    
Santander Drive Auto Receivables Trust 2021-2, D
1.350%, 7/15/27
      125      119
Credit Card—0.1%    
Citibank Credit Card Issuance Trust 2017-A5, A5 (1 month Term SOFR + 0.734%)
6.069%, 4/22/26(3)
       25       25
Total Asset-Backed Securities
(Identified Cost $145)
     144
       
 
       
 
Corporate Bonds and Notes—15.1%
Aerospace & Defense—0.1%    
Boeing Co. (The)
5.150%, 5/1/30
       55       55
Automotive—0.6%    
General Motors Financial Co., Inc.
3.600%, 6/21/30
       65       57
Hyundai Capital America      
144A 3.000%, 2/10/27(2)        40       37
144A 2.100%, 9/15/28(2)        25       21
144A 6.500%, 1/16/29(2)        60       61
Nissan Motor Acceptance Co. LLC 144A
7.050%, 9/15/28(2)
       55       56
         232
       
 
Chemicals—0.2%    
FMC Corp.
5.150%, 5/18/26
       60       59
Electric—1.3%    
AES Corp. (The)
5.450%, 6/1/28
       65       65
Duke Energy Corp.
3.500%, 6/15/51
       65       44
Electricite de France S.A. 144A
4.500%, 9/21/28(2)
       65       62
Enel Finance International N.V. 144A
5.500%, 6/15/52(2)
       65       57
Exelon Corp.
2.750%, 3/15/27
       85       79
NSTAR Electric Co.
4.550%, 6/1/52
       45       38
PacifiCorp.
5.350%, 12/1/53
       85       72
See Notes to Financial Statements
30


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Electric—continued    
San Diego Gas & Electric Co.
5.350%, 4/1/53
$       70   $    66
         483
       
 
Exploration & Production—0.6%    
BP Capital Markets America, Inc.
4.893%, 9/11/33
       40       39
BP Capital Markets plc
4.375% (4)
       30       29
Continental Resources, Inc.
4.375%, 1/15/28
       65       61
Diamondback Energy, Inc.
6.250%, 3/15/33
       85       88
         217
       
 
Financial & Lease—6.4%    
Air Lease Corp.      
5.850%, 12/15/27        65       65
3.000%, 2/1/30        20       17
American Express Co.
5.625%, 7/28/34
       55       54
Bank of America Corp.      
2.496%, 2/13/31        65       54
2.482%, 9/21/36        65       49
Bank of New York Mellon Corp. (The)
6.474%, 10/25/34
       70       74
Barclays plc      
2.852%, 5/7/26        45       43
2.279%, 11/24/27        65       58
Boston Properties LP
3.400%, 6/21/29
       65       55
BPCE S.A. 144A
5.975%, 1/18/27(2)
       65       65
Capital One Financial Corp.      
2.618%, 11/2/32        65       49
6.377%, 6/8/34        40       39
Charles Schwab Corp. (The)
6.136%, 8/24/34
       55       55
Citigroup, Inc.      
4.450%, 9/29/27        25       24
6.174%, 5/25/34        80       79
CubeSmart LP
3.000%, 2/15/30
       65       55
Deutsche Bank AG
2.129%, 11/24/26
       85       78
Discover Bank
4.650%, 9/13/28
       50       46
DNB Bank ASA 144A
1.605%, 3/30/28(2)
       65       57
Fifth Third Bancorp.
1.707%, 11/1/27
       65       57
Goldman Sachs Group, Inc. (The)      
0.855%, 2/12/26        20       19
4.223%, 5/1/29        65       61
HSBC Holdings plc      
1.589%, 5/24/27        20       18
2.804%, 5/24/32       105       84
JPMorgan Chase & Co.      
5.350%, 6/1/34        20       20
6.254%, 10/23/34        60       63
  Par Value(1)   Value
       
Financial & Lease—continued    
Subordinate Notes
3.625%, 12/1/27
$       40   $    38
KeyBank NA
4.900%, 8/8/32
       85       69
Kimco Realty OP LLC
4.600%, 2/1/33
       65       60
Mizuho Financial Group, Inc.
2.564%, 9/13/31
      110       86
Morgan Stanley      
5.164%, 4/20/29        40       39
2.484%, 9/16/36       110       83
Nomura Holdings, Inc.
2.172%, 7/14/28
      130      111
Office Properties Income Trust
2.400%, 2/1/27
       65       40
Societe Generale S.A. 144A
1.488%, 12/14/26(2)
       85       77
Standard Chartered plc      
144A 1.456%, 1/14/27(2)        20       18
144A 6.296%, 7/6/34(2)        20       20
144A 3.265%, 2/18/36(2)        20       15
Synchrony Financial      
3.700%, 8/4/26        40       37
2.875%, 10/28/31        90       67
Truist Financial Corp.
7.161%, 10/30/29
       60       63
UBS Group AG 144A
2.746%, 2/11/33(2)
      130      101
US Bancorp
4.967%, 7/22/33
       85       76
WEA Finance LLC 144A
2.875%, 1/15/27(2)
       40       35
Wells Fargo & Co.      
6.303%, 10/23/29        35       36
3.350%, 3/2/33       105       88
       2,497
       
 
Food, Beverages & Tobacco—0.4%    
Conagra Brands, Inc.
1.375%, 11/1/27
       65       56
Constellation Brands, Inc.
5.000%, 2/2/26
       40       40
PepsiCo, Inc.
2.750%, 3/19/30
       65       58
         154
       
 
Health Care—0.9%    
Amgen, Inc.      
5.150%, 3/2/28        40       40
5.650%, 3/2/53        45       44
CSL Finance plc 144A
4.750%, 4/27/52(2)
       65       57
HCA, Inc.
5.200%, 6/1/28
       40       40
Pfizer Investment Enterprises Pte Ltd.      
4.750%, 5/19/33        40       39
5.110%, 5/19/43        80       77
 
See Notes to Financial Statements
31


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Par Value(1)   Value
       
Health Care—continued    
Zimmer Biomet Holdings, Inc.
5.350%, 12/1/28
$       55   $    55
         352
       
 
Home Builders—0.2%    
MDC Holdings, Inc.
2.500%, 1/15/31
       75       58
Industrial Other—0.7%    
Ashtead Capital, Inc. 144A
4.000%, 5/1/28(2)
       65       60
Flowserve Corp.
3.500%, 10/1/30
       40       34
Ingersoll Rand, Inc.
5.700%, 8/14/33
       35       35
Jacobs Engineering Group, Inc.
6.350%, 8/18/28
       20       20
Regal Rexnord Corp. 144A
6.050%, 4/15/28(2)
       85       84
Veralto Corp. 144A
5.450%, 9/18/33(2)
       55       55
         288
       
 
Lodging—0.1%    
Marriott International, Inc. Series HH
2.850%, 4/15/31
       65       54
Media Cable—0.2%    
Charter Communications Operating LLC
6.484%, 10/23/45
       65       60
Media Other—0.1%    
Warnermedia Holdings, Inc.
5.050%, 3/15/42
       65       54
Metals, Mining & Steel—0.1%    
Glencore Funding LLC 144A
2.500%, 9/1/30(2)
       65       53
Midstream—1.0%    
Boardwalk Pipelines LP
4.800%, 5/3/29
       40       38
Columbia Pipelines Operating Co. LLC 144A
5.927%, 8/15/30(2)
       75       75
Enbridge, Inc.
2.500%, 2/14/25
       65       63
Energy Transfer LP      
6.400%, 12/1/30        20       21
6.000%, 6/15/48        65       62
KeySpan Gas East Corp. 144A
5.994%, 3/6/33(2)
       60       59
Sabine Pass Liquefaction LLC
4.200%, 3/15/28
       65       62
         380
       
 
Refining—0.1%    
Phillips 66
2.150%, 12/15/30
       65       53
  Par Value(1)   Value
       
Restaurants—0.1%    
McDonald’s Corp.
3.600%, 7/1/30
$       40   $     37
Retail Non Food & Drug—0.1%    
Tapestry, Inc.
3.050%, 3/15/32
       65       49
Services Other—0.4%    
Equifax, Inc.
2.350%, 9/15/31
       65       52
Waste Management, Inc.
2.950%, 6/1/41
       65       47
Western Union Co. (The)
2.750%, 3/15/31
       65       51
         150
       
 
Technology—1.0%    
Arrow Electronics, Inc.
6.125%, 3/1/26
       40       40
Broadcom, Inc. 144A
3.187%, 11/15/36(2)
       90       69
Concentrix Corp.
6.650%, 8/2/26
       55       55
Leidos, Inc.
5.750%, 3/15/33
       65       65
Oracle Corp.
3.600%, 4/1/50
       90       63
Texas Instruments, Inc.
5.000%, 3/14/53
       65       63
TSMC Global Ltd. 144A
1.000%, 9/28/27(2)
       40       34
         389
       
 
Wireless—0.3%    
Sprint Capital Corp.
6.875%, 11/15/28
       40       42
T-Mobile USA, Inc.
3.875%, 4/15/30
       85       78
         120
       
 
Wirelines—0.2%    
AT&T, Inc.      
5.400%, 2/15/34        50       49
3.650%, 9/15/59        60       40
          89
       
 
Total Corporate Bonds and Notes
(Identified Cost $6,277)
   5,883
    
  Shares  
Affiliated Mutual Funds—63.0%
Fixed Income Funds—63.0%  
Virtus Stone Harbor Emerging Markets Bond Fund Class I(5)(6)   252,038  1,921
Virtus Stone Harbor Emerging Markets Debt Income Fund Class I(5)(6) 1,388,873  9,694
Virtus Stone Harbor High Yield Bond Fund Class I(5)(6) 1,761,384 11,872
 
See Notes to Financial Statements
32


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
  Shares   Value
Fixed Income Funds—continued    
Virtus Stone Harbor Local Markets Fund Class I(5)(6)(7)   126,053   $  1,017
Total Affiliated Mutual Funds
(Identified Cost $27,065)
  24,504
       
 
       
 
Total Long-Term Investments—94.6%
(Identified Cost $40,015)
  36,767
       
 
       
 
TOTAL INVESTMENTS—94.6%
(Identified Cost $40,015)
  $36,767
Other assets and liabilities, net—5.4%    2,097
NET ASSETS—100.0%   $38,864
    
Abbreviations:
BTP Italian Buonie
CDX.EM Markit CDX® Emerging Markets Index
CDX.NA.HY Markit’s North American High Yield CDX Index
HSBC Hong Kong & Shanghai Bank
LLC Limited Liability Company
LP Limited Partnership
NA National Association
Nomura Nomura Global Financial Products, Inc.
SOFR Secured Overnight Financing Rate
TBA To-be-announced
    
Footnote Legend:
(1) Par Value disclosed in foreign currency is reported in thousands.
(2) 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 November 30, 2023, these securities amounted to a value of $2,081 or 5.4% of net assets.
(3) Variable rate security. Rate disclosed is as of November 30, 2023. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(4) No contractual maturity date.
(5) Affiliated investment. See Note 4H in Notes to Financial Statements.
(6) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(7) Non-income producing.
    
Counterparties:  
CITI Citigroup Global Markets
GS Goldman Sachs & Co.
JPM JPMorgan Chase Bank N.A.
    
Foreign Currencies:  
AUD Australian Dollar
EUR Euro
GBP United Kingdom Pound Sterling
JPY Japanese Yen
SEK Swedish Krona
SGD Singapore Dollar
USD United States Dollar
 
Exchange-traded futures contracts as of November 30, 2023 were as follows:
Issue Expiration Contracts
Purchased/(Sold)
Notional Value Value /
Unrealized
Appreciation
  Value /
Unrealized
Depreciation
Long Contracts:            
10 Year Euro-Bund Future December 2023 1 $ 144 $ 2   $
10 Year U.S. Ultra Bond Future March 2024 4 492 8  
        $10   $
Short Contracts:            
Euro-BTP Future December 2023 (7) (876)   (9)
5 Year U.S. Treasury Note Future March 2024 (23) (2,458)   (18)
For information regarding the abbreviations, see the Key Investment Terms starting on page 4.
See Notes to Financial Statements
33


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
Exchange-traded futures contracts as of November 30, 2023 were as follows (continued):
Issue Expiration Contracts
Purchased/(Sold)
Notional Value Value /
Unrealized
Appreciation
  Value /
Unrealized
Depreciation
10 Year U.K. Gilt Future March 2024 (6) $ (732) $—   $ (8)
10 Year U.S. Treasury Note Future March 2024 (58) (6,368)   (45)
          (80)
Total $10   $ (80)
    
Forward foreign currency exchange contracts as of November 30, 2023 were as follows:
Currency
Purchased
Currency
Amount
Purchased
Currency
Sold
Currency
Amount
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
  Unrealized
Depreciation
AUD 340 USD 217 GS 12/06/23 $ 8   $ — 
AUD 320 USD 204 JPM 12/06/23 8   — 
AUD 360 USD 232 CITI 12/07/23 6   — 
EUR 800 JPY 129,725 GS 12/04/23   (5)
EUR 210 GBP 182 CITI 12/06/23   (1)
EUR 180 SEK 2,059 GS 12/15/23   —  (1)
GBP 182 EUR 210 GS 12/06/23 1   — 
GBP (2) USD (1) CITI 12/06/23   —  (1)
GBP 280 EUR 320 JPM 12/27/23 4   — 
JPY 126,187 EUR 800 JPM 12/04/23   (19)
JPY 3,538 USD 24 CITI 12/04/23   —  (1)
JPY 29,570 USD 199 CITI 12/06/23 1   — 
JPY 15,780 USD 104 CITI 12/18/23 2   — 
JPY 14,400 USD 96 GS 12/18/23 1   — 
JPY 14,654 EUR 90 JPM 12/29/23 1   — 
JPY 143,526 EUR 890 GS 01/12/24 4   — 
SEK 2,072 EUR 180 JPM 12/15/23 1   — 
SEK 2,059 USD 194 GS 12/15/23 2   — 
SGD 290 USD 212 JPM 12/04/23 5   — 
USD 215 SGD 290 JPM 12/04/23   (2)
USD 100 AUD 150 CITI 12/06/23 1   — 
USD 194 AUD 300 GS 12/06/23   (4)
USD 233 AUD 360 CITI 12/07/23   (4)
USD 195 SEK 2,072 JPM 12/15/23   (2)
USD 237 EUR 224 JPM 01/19/24   (7)
USD 23 GBP 19 CITI 01/19/24   (1)
Total $45   $ (45)
    
Footnote Legend:
(1) Amount is less than $500 (not in thousands).
(2) Amount is less than 500 GBP (not in thousands).
    
Centrally cleared credit default swaps - buy protection(1) outstanding as of November 30, 2023 were as follows:
Reference Entity Payment
Frequency
  Fixed
Rate
Expiration
Date
Notional
Amount(2)
Value   Premiums
Paid
(Received)
  Unrealized
Appreciation
  Unrealized
Depreciation
CDX.EM.S40 Quarterly   1.000% 12/20/28 $(4,725)  $ 170    $ 221    $—    $ (52)
CDX.NA.HY.S41 Quarterly   5.000% 12/20/28 (6,287)  (308)   (43)   —    (264)
Total   $ (138)   $ 178   $—    $ (316)
    
See Notes to Financial Statements
34


Table of Contents
Stone Harbor Strategic Income Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
November 30, 2023
($ reported in thousands)
Footnote Legend:
(1) If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either: (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying investments comprising the referenced index; or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index.
(2) The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
The following table summarizes the value of the Fund’s investments as of November 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
November 30, 2023
  Level 1
Quoted Prices
  Level 2
Significant
Observable
Inputs
Assets:          
Debt Instruments:          
U.S. Government Securities $ 2,392   $   $ 2,392
Mortgage-Backed Securities 3,844     3,844
Asset-Backed Securities 144     144
Corporate Bonds and Notes 5,883     5,883
Affiliated Mutual Funds 24,504   24,504  
Other Financial Instruments:          
Futures Contracts 10   10  
Forward Foreign Currency Exchange Contracts 45     45
Total Assets 36,822   24,514   12,308
Liabilities:          
Other Financial Instruments:          
Futures Contracts (80)   (80)  
Forward Foreign Currency Exchange Contracts (45)     (45)
Centrally Cleared Credit Default Swaps (138)     (138)
Total Liabilities (263)   (80)   (183)
Total Investments $36,559   $24,434   $12,125
There were no securities valued using significant unobservable inputs (Level 3) at November 30, 2023.
There were no transfers into or out of Level 3 related to securities held at November 30, 2023.
See Notes to Financial Statements
35


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) November 30, 2023
(Reported in thousands except shares and per share amounts)
  Stone Harbor Emerging Markets Bond Fund   Stone Harbor Emerging Markets Debt Allocation Fund   Stone Harbor Emerging Markets Debt Income Fund
Assets          
Investment in securities at value(1)

$ 10,120   $   $ 310,589
Investment in affiliates at value(2)

  1,768   11,036
Foreign currency at value(3)

    (a)
Cash

201   67   1,747
Cash pledged as collateral for swap contracts

    310
Unrealized appreciation on forward foreign currency exchange contracts

    28
Receivables          
Investment securities sold

32     10,348
Fund shares sold

    194
Dividends and interest

131   (a)   4,835
Receivable from adviser

2   7  
Tax reclaims

(a)     45
Prepaid Trustees’ retainer

(a)     6
Prepaid expenses

9     103
Other assets

1   (a)   45
Total assets

10,496   1,842   339,286
Liabilities          
Unrealized depreciation on forward foreign currency exchange contracts

    384
Payables          
Fund shares repurchased

    1,298
Investment securities purchased

    7,519
Investment advisory fees

    131
Distribution and service fees

(a)   (a)   (a)
Administration and accounting fees

1   1   28
Transfer agent and sub-transfer agent fees and expenses

  1  
Professional fees

19   16   6
Trustee deferred compensation plan

1   (a)   45
Interest expense and/or commitment fees

(a)     8
Other accrued expenses

6   2   51
Total liabilities

27   20   9,470
Net Assets

$ 10,469   $ 1,822   $ 329,816
Net Assets Consist of:          
Capital paid in on shares of beneficial interest

$ 15,881   $ 10,333   $ 852,107
Accumulated earnings (loss)

(5,412)   (8,511)   (522,291)
Net Assets

$ 10,469   $ 1,822   $ 329,816
Net Assets:          
Class A

$ 96   $ 90   $ 90
Class I

$ 10,373   $ 1,732   $ 329,726
Shares Outstanding(unlimited number of shares authorized, no par value):          
Class A

12,592   12,887   12,789
Class I

1,361,941   247,593   47,241,511
Net Asset Value and Redemption Price Per Share:*          
Class A

$ 7.60   $ 6.98   $ 7.02
Class I

$ 7.62   $ 7.00   $ 6.98
See Notes to Financial Statements
36


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
November 30, 2023
(Reported in thousands except shares and per share amounts)
  Stone Harbor Emerging Markets Bond Fund   Stone Harbor Emerging Markets Debt Allocation Fund   Stone Harbor Emerging Markets Debt Income Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):          
Class A

$ 7.90   $ 7.25   $ 7.29
Maximum Sales Charge - Class A

3.75%   3.75%   3.75%
(1) Investment in securities at cost

$ 10,529   $   $ 337,373
(2) Investment in affiliates at cost

$   $ 1,653   $ 11,249
(3) Foreign currency at cost

$   $   $ (a)
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
37


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
November 30, 2023
(Reported in thousands except shares and per share amounts)
  Stone Harbor High Yield Bond Fund   Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
Assets          
Investment in securities at value(1)

$ 22,342   $ 13,214   $ 12,263
Investment in affiliates at value(2)

    24,504
Foreign currency at value(3)

  12   420
Cash

703   501   4,560
Cash pledged as collateral for futures contracts

    181
Cash pledged as collateral for swap contracts

    469
Variation margin receivable on futures contracts

    44
Unrealized appreciation on forward foreign currency exchange contracts

  100   45
Receivables          
Investment securities sold

22   2,509  
Dividends and interest

397   284   95
Receivable from adviser

3     5
Tax reclaims

(a)   16   1
Prepaid Trustees’ retainer

  (a)   1
Prepaid expenses

(a)   10   6
Other assets

3   85   5
Total assets

23,470   16,731   42,599
Liabilities          
Variation margin payable on cleared swaps

    4
Due to broker

    720
Unrealized depreciation on forward foreign currency exchange contracts

  70   45
Payables          
Fund shares repurchased

  2,693  
Investment securities purchased

453   847   2,927
Investment advisory fees

  2  
Distribution and service fees

(a)   (a)   (a)
Administration and accounting fees

2   2   4
Transfer agent and sub-transfer agent fees and expenses

1     (a)
Professional fees

17   21   18
Trustee deferred compensation plan

3   2   5
Interest expense and/or commitment fees

  (a)   (a)
Other accrued expenses

16     12
Total liabilities

492   3,637   3,735
Net Assets

$ 22,978   $ 13,094   $ 38,864
Net Assets Consist of:          
Capital paid in on shares of beneficial interest

$ 61,149   $ 212,834   $ 45,721
Accumulated earnings (loss)

(38,171)   (199,740)   (6,857)
Net Assets

$ 22,978   $ 13,094   $ 38,864
Net Assets:          
Class A

$ 129   $ 104   $ 100
Class I

$ 22,849   $ 12,990   $ 38,764
Shares Outstanding(unlimited number of shares authorized, no par value):          
Class A

19,245   12,970   12,158
Class I

3,391,640   1,608,699   4,699,889
Net Asset Value and Redemption Price Per Share:*          
Class A

$ 6.70   $ 8.03   $ 8.25
Class I

$ 6.74   $ 8.08   $ 8.25
See Notes to Financial Statements
38


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
November 30, 2023
(Reported in thousands except shares and per share amounts)
  Stone Harbor High Yield Bond Fund   Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):          
Class A

$ 6.96   $ 8.34   $ 8.57
Maximum Sales Charge - Class A

3.75%   3.75%   3.75%
(1) Investment in securities at cost

$ 23,368   $ 13,351   $ 12,950
(2) Investment in affiliates at cost

$   $   $ 27,065
(3) Foreign currency at cost

$   $ 12   $ 422
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
39


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF OPERATIONS (Unaudited) SIX MONTHS ENDED November 30, 2023
($ reported in thousands)
  Stone Harbor Emerging Markets Bond Fund   Stone Harbor Emerging Markets Debt Allocation Fund   Stone Harbor Emerging Markets Debt Income Fund
Investment Income          
Dividends

$ 7   $ 2   $ 216
Dividends from affiliates

  69   200
Interest

271     13,950
Foreign taxes withheld

(1)     (5)
Total investment income

277   71   14,361
Expenses          
Investment advisory fees

34   8   1,060
Distribution and service fees, Class A

(1)   (1)   (1)
Administration and accounting fees

8   5   183
Transfer agent fees and expenses

2   2   76
Sub-transfer agent fees and expenses, Class A

(1)     (1)
Sub-transfer agent fees and expenses, Class I

(1)   1   21
Custodian fees

1   (8)   3
Printing fees and expenses

1   1   25
Professional fees

17   14   23
Interest expense and/or commitment fees

(1)   (1)   10
Registration fees

12   21   19
Trustees’ fees and expenses

(1)   (1)   17
Miscellaneous expenses

9   3   24
Total expenses

84   47   1,461
Less net expenses reimbursed and/or waived by investment adviser(2)

(44)   (47)   (179)
Net expenses

40   (1)   1,282
Net investment income (loss)

237   71   13,079
Net Realized and Unrealized Gain (Loss) on Investments          
Net realized gain (loss) from:          
Investments

(184)   (1)   (46,026)
Investments in affiliates

  (7)  
Foreign currency transactions

    (84)
Forward foreign currency exchange contracts

    1,023
Swaps

    875
Net change in unrealized appreciation (depreciation) on:          
Investments

298     59,575
Investments in affiliates

  62   272
Foreign currency transactions

    12
Forward foreign currency exchange contracts

    (1,306)
Swaps

    (370)
Net realized and unrealized gain (loss) on investments

114   54   13,971
Net increase (decrease) in net assets resulting from operations

$ 351   $125   $ 27,050
    
(1) Amount is less than $500 (not in thousands).
(2) See Note 4D in Notes to Financial Statements.
See Notes to Financial Statements
40


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF OPERATIONS (Unaudited) (Continued)
SIX MONTHS ENDED November 30, 2023
($ reported in thousands)
  Stone Harbor High Yield Bond Fund   Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
Investment Income          
Dividends

$ 17   $ 13   $ 125
Dividends from affiliates

    1,879
Interest

1,037   560   244
Foreign taxes withheld

  (6)  
Total investment income

1,054   567   2,248
Expenses          
Investment advisory fees

65   59   118
Distribution and service fees, Class A

(1)   (1)   (1)
Administration and accounting fees

17   12   26
Transfer agent fees and expenses

8   4   9
Sub-transfer agent fees and expenses, Class A

(1)    
Sub-transfer agent fees and expenses, Class I

2   1   1
Custodian fees

7   5   2
Printing fees and expenses

(1)   1   2
Professional fees

15   19   18
Interest expense and/or commitment fees

(1)   (1)   (1)
Registration fees

16   13   14
Trustees’ fees and expenses

4   1   2
Miscellaneous expenses

10   7   10
Total expenses

144   122   202
Less net expenses reimbursed and/or waived by investment adviser(2)

(61)   (43)   (149)
Net expenses

83   79   53
Net investment income (loss)

971   488   2,195
Net Realized and Unrealized Gain (Loss) on Investments          
Net realized gain (loss) from:          
Investments

(7,831)   (30)   (509)
Investments in affiliates

    (1,900)
Foreign currency transactions

  (298)   7
Foreign capital gains tax

  (1)  
Forward foreign currency exchange contracts

  (229)   (25)
Futures

    668
Swaps

    (244)
Net change in unrealized appreciation (depreciation) on:          
Investments

8,933   1,940   214
Investments in affiliates

    1,638
Foreign currency transactions

  (1,260)   (1)
Forward foreign currency exchange contracts

  89   (19)
Futures

    (83)
Swaps

    (246)
Net realized and unrealized gain (loss) on investments

1,102   212   (499)
Net increase (decrease) in net assets resulting from operations

$ 2,073   $ 700   $ 1,696
    
(1) Amount is less than $500 (not in thousands).
(2) See Note 4D in Notes to Financial Statements.
See Notes to Financial Statements
41


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  Stone Harbor Emerging Markets Bond Fund   Stone Harbor Emerging Markets Debt Allocation Fund
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)

$ 237   $ 409   $ 71   $ 134
Net realized gain (loss)

(184)   (282)   (8)   (1,003)
Net change in unrealized appreciation (depreciation)

298   (59)   62   219
Increase (decrease) in net assets resulting from operations

351   68   125   (650)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A

(4)   (4)     (11)
Class I

(345)   (312)     (219)
Total dividends and distributions to shareholders

(349)   (316)     (230)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A

(1)   3    
Class I

2,665   989   (695)   (4,976)
Increase (decrease) in net assets from capital transactions

2,665   992   (695)   (4,976)
Net increase (decrease) in net assets

2,667   744   (570)   (5,856)
Net Assets              
Beginning of period

7,802   7,058   2,392   8,248
End of Period

$ 10,469   $ 7,802   $ 1,822   $ 2,392
    
(1) Amount is less than $500 (not in thousands).
See Notes to Financial Statements
42


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  Stone Harbor Emerging Markets Debt Income Fund   Stone Harbor High Yield Bond Fund
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)

$ 13,079   $ 36,334   $ 971   $ 5,920
Net realized gain (loss)

(44,212)   (157,005)   (7,831)   (4,391)
Payment by affiliates

      1
Net change in unrealized appreciation (depreciation)

58,183   98,722   8,933   (1,189)
Increase (decrease) in net assets resulting from operations

27,050   (21,949)   2,073   341
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A

(5)   (7)   (13)   (6)
Class I

(24,225)   (40,443)   (2,037)   (4,729)
Total dividends and distributions to shareholders

(24,230)   (40,450)   (2,050)   (4,735)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A

(1)   2   (20)   61
Class I

(87,529)   (254,202)   (61,820)   (12,657)
Increase (decrease) in net assets from capital transactions

(87,529)   (254,200)   (61,840)   (12,596)
Net increase (decrease) in net assets

(84,709)   (316,599)   (61,817)   (16,990)
Net Assets              
Beginning of period

414,525   731,124   84,795   101,785
End of Period

$ 329,816   $ 414,525   $ 22,978   $ 84,795
    
(1) Amount is less than $500 (not in thousands).
See Notes to Financial Statements
43


Table of Contents
VIRTUS OPPORTUNITIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
  Six Months Ended
November 30,
2023
(Unaudited)
  Year Ended
May 31,
2023
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)

$ 488   $ 1,942   $ 2,195   $ 1,844
Net realized gain (loss)

(557)   (22,033)   (2,003)   177
Net change in unrealized appreciation (depreciation)

769   16,573   1,504   (1,565)
Increase (decrease) in net assets resulting from operations

700   (3,518)   1,696   456
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A

    (4)   (5)
Class I

    (1,896)   (2,245)
Total dividends and distributions to shareholders

    (1,900)   (2,250)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A

    1   6
Class I

(3,045)   (58,145)   (3,247)   5,495
Increase (decrease) in net assets from capital transactions

(3,045)   (58,145)   (3,246)   5,501
Net increase (decrease) in net assets

(2,345)   (61,663)   (3,450)   3,707
Net Assets              
Beginning of period

15,439   77,102   42,314   38,607
End of Period

$ 13,094   $ 15,439   $ 38,864   $ 42,314
See Notes to Financial Statements
44


Table of Contents
VIRTUS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period
Net Investment Income (Loss)(1) Net Realized

and Unrealized Gain (Loss)
Total from Investment Operations Dividends from

Net Investment Income
Total Distributions Payments from Affiliates Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands)
Ratio of Net Expenses to

Average Net Assets(4)(5)
Ratio of Gross Expenses to

Average Net Assets(4)(5)
Ratio of Net Investment Income (Loss)

to Average Net Assets(4)
Portfolio Turnover Rate(2)
                                 
Stone Harbor Emerging Markets Bond Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $7.61  0.21  0.10  0.31  (0.32)  (0.32)  —  (0.01)  $7.60  4.22 %  $ 96  1.25 %  2.37 %  5.68 %  21 % 
6/1/22 to 5/31/23   7.89  0.41  (0.36)  0.05  (0.33)  (0.33)  —  (0.28)  7.61  0.71   96  1.25   (7) 2.25   5.49   31  
4/11/22 (8) to 5/31/22   8.16  0.05  (0.22)  (0.17)  (0.10)  (0.10)  —  (0.27)  7.89  (2.10)   97  1.27   (9) 3.15   4.50   14   (10)
Class I                                
6/1/23 to 11/30/23(6)   $7.63  0.22  0.11  0.33  (0.34)  (0.34)  —  (0.01)  $7.62  4.38 %  $ 10,373  1.00 %  2.10 %  5.93 %  21 % 
6/1/22 to 5/31/23   7.91  0.43  (0.37)  0.06  (0.34)  (0.34)  —  (0.28)  7.63  0.91   7,706  1.00   (7) 2.21   5.75   31  
6/1/21 to 5/31/22   9.25  0.40  (1.33)  (0.93)  (0.41)  (0.41)  —  (1.34)  7.91  (10.40)   6,961  1.02   (9) 3.21   4.49   14  
6/1/20 to 5/31/21   8.17  0.45  1.10  1.55  (0.47)  (0.47)  —  1.08  9.25  19.25   6,694  1.01   (11) 3.46   4.99   55  
6/1/19 to 5/31/20   8.82  0.42  (0.64)  (0.22)  (0.43)  (0.43)  —  (0.65)  8.17  (2.71)   5,666  1.01   (11) 1.95   4.68   168  
6/1/18 to 5/31/19   8.80  0.45  0.03  0.48  (0.46)  (0.46)  —  0.02  8.82  5.71   13,078  1.01   (11) 2.15   5.21   63  
                                 
Stone Harbor Emerging Markets Debt Allocation Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $6.60  0.20  0.18  0.38  —  —  —  0.38  $6.98  5.76 %  $ 90  0.25 %  4.53 %  5.93 %  3 % 
6/1/22 to 5/31/23   7.51  0.27  (0.32)  (0.05)  (0.86)  (0.86)  —  (0.91)  6.60  (0.41)   85  0.25   (7) 2.30   3.95   48  
4/11/22 (8) to 5/31/22   7.76  0.02  (0.27)  (0.25)  —  —  —  (0.25)  7.51  (3.22)   97  0.26   2.14   2.12   12   (10)
Class I                                
6/1/23 to 11/30/23(6)   $6.60  0.21  0.19  0.40  —  —  —  0.40  $7.00  6.06 %  $ 1,732  — %  4.14 %  6.26 %  3 % 
6/1/22 to 5/31/23   7.51  0.21  (0.25)  (0.04)  (0.87)  (0.87)  —  (0.91)  6.60  (0.30)   2,307  0.02   (7) 2.00   3.03   48  
6/1/21 to 5/31/22   9.32  0.21  (1.80)  (1.59)  (0.22)  (0.22)  —  (1.81)  7.51  (17.38)   8,151  —   1.48   2.37   12  
6/1/20 to 5/31/21   8.61  0.20  0.86  1.06  (0.35)  (0.35)  —  0.71  9.32  12.26   18,807  0.02   1.32   2.13   29  
6/1/19 to 5/31/20   8.95  0.27  (0.36)  (0.09)  (0.25)  (0.25)  —  (0.34)  8.61  (1.21)   31,267  0.03   1.22   2.98   21  
6/1/18 to 5/31/19   9.25  0.33  (0.33)  —  (0.30)  (0.30)  —  (0.30)  8.95  0.20   28,213  0.05   1.21   3.70   38  
                                 
Stone Harbor Emerging Markets Debt Income Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $6.90  0.24  0.26  0.50  (0.38)  (0.38)  —  0.12  $7.02  7.54 %  $ 90  1.01 %  (12) 1.09 %  7.10 %  66 % 
6/1/22 to 5/31/23   7.63  0.49  (0.65)  (0.16)  (0.57)  (0.57)  —  (0.73)  6.90  (1.96)   88  1.01   (7) 1.10   7.04   131  
4/11/22 (8) to 5/31/22   8.06  0.06  (0.38)  (0.32)  (0.11)  (0.11)  —  (0.43)  7.63  (3.93)   95  1.02   (11) 1.10   6.09   104   (10)
Class I                                
6/1/23 to 11/30/23(6)   $6.91  0.25  0.26  0.51  (0.44)  (0.44)  —  0.07  $6.98  7.74 %  $ 329,726  0.73 %  (12) 0.83 %  7.41 %  66 % 
6/1/22 to 5/31/23   7.63  0.51  (0.65)  (0.14)  (0.58)  (0.58)  —  (0.72)  6.91  (1.64)   414,437  0.73   (7) 0.82   7.27   131  
6/1/21 to 5/31/22   9.82  0.46  (2.18)  (1.72)  (0.47)  (0.47)  —  (2.19)  7.63  (18.08)   731,029  0.74   (11) 0.75   4.96   104  
6/1/20 to 5/31/21   8.92  0.51  0.85  1.36  (0.46)  (0.46)  —  0.90  9.82  15.31   1,396,895  0.73   (11) 0.73   5.18   106  
6/1/19 to 5/31/20   9.73  0.47  (0.74)  (0.27)  (0.54)  (0.54)  —  (0.81)  8.92  (3.02)   1,094,713  0.72   (11) 0.72   4.89   118  
6/1/18 to 5/31/19   9.99  0.56  (0.21)  0.35  (0.61)  (0.61)  —  (0.26)  9.73  3.82   1,212,774  0.71   (11) 0.71   5.81   104  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
45


Table of Contents
VIRTUS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period
Net Investment Income (Loss)(1) Net Realized

and Unrealized Gain (Loss)
Total from Investment Operations Dividends from

Net Investment Income
Total Distributions Payments from Affiliates Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands)
Ratio of Net Expenses to

Average Net Assets(4)(5)
Ratio of Gross Expenses to

Average Net Assets(4)(5)
Ratio of Net Investment Income (Loss)

to Average Net Assets(4)
Portfolio Turnover Rate(2)
                                 
Stone Harbor High Yield Bond Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $6.95  0.24  0.13  0.37  (0.62)  (0.62)  —  (0.25)  $6.70  5.59 %  $ 129  0.90 %  1.60 %  7.25 %  12 % 
6/1/22 to 5/31/23   7.28  0.41  (0.42)  (0.01)  (0.32)  (0.32)  —  (13) (0.33)  6.95  (0.04)   155  0.90   1.04   5.85   37  
4/11/22 (8) to 5/31/22   7.48  0.04  (0.15)  (0.11)  (0.09)  (0.09)  —  (0.20)  7.28  (1.38)   97  0.92   (11) 1.12   4.12   55   (10)
Class I                                
6/1/23 to 11/30/23(6)   $6.96  0.25  0.13  0.38  (0.60)  (0.60)  —  (0.22)  $6.74  5.83 %  $ 22,849  0.65 %  1.12 %  7.49 %  12 % 
6/1/22 to 5/31/23   7.28  0.42  (0.41)  0.01  (0.33)  (0.33)  —  (13) (0.32)  6.96  0.27   84,640  0.65   (7) 0.76   6.04   37  
6/1/21 to 5/31/22   8.14  0.37  (0.85)  (0.48)  (0.38)  (0.38)  —  (0.86)  7.28  (6.11)   101,688  0.67   (11) 0.80   4.61   55  
6/1/20 to 5/31/21   7.53  0.38  0.60  0.98  (0.37)  (0.37)  —  0.61  8.14  13.19   97,925  0.66   (11) 0.88   4.76   94  
6/1/19 to 5/31/20   7.88  0.42  (0.34)  0.08  (0.43)  (0.43)  —  (0.35)  7.53  0.96   65,454  0.66   (11) 0.88   5.36   57  
6/1/18 to 5/31/19   7.91  0.43  (0.02)  0.41  (0.44)  (0.44)  —  (0.03)  7.88  5.36   88,562  0.66   (11) 0.84   5.51   54  
                                 
Stone Harbor Local Markets Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $7.69  0.23  0.11  0.34  —  —  —  0.34  $8.03  4.42 %  $ 104  1.25 %  1.80 %  5.95 %  67 % 
6/1/22 to 5/31/23   7.51  0.47  (0.29)  0.18  —  —  —  0.18  7.69  2.40   100  1.19   (7)(11) 1.26   6.35   112  
4/11/22 (8) to 5/31/22   7.71  0.05  (0.25)  (0.20)  —  —  —  (0.20)  7.51  (2.59)   97  1.27   (11) 1.53   5.24   67   (10)
Class I                                
6/1/23 to 11/30/23(6)   $7.72  0.24  0.12  0.36  —  —  —  0.36  $8.08  4.53 %  $ 12,990  1.00 %  1.55 %  6.20 %  67 % 
6/1/22 to 5/31/23   7.51  0.47  (0.26)  0.21  —  —  —  0.21  7.72  2.80   15,339  0.99   (7)(11) 1.08   6.35   112  
6/1/21 to 5/31/22   9.03  0.41  (1.93)  (1.52)  —  —  —  (1.52)  7.51  (16.83)   77,005  1.01   (11) 1.14   4.87   67  
6/1/20 to 5/31/21   8.34  0.40  0.29  0.69  —  —  —  0.69  9.03  8.27   160,992  1.01   (11) 1.04   4.60   95  
6/1/19 to 5/31/20   8.30  0.47  (0.42)  0.05  (0.01)  (0.01)  —  0.04  8.34  0.59   329,596  0.96   (11) 0.96   5.53   103  
6/1/18 to 5/31/19   8.64  0.51  (0.74)  (0.23)  (0.11)  (0.11)  —  (0.34)  8.30  (2.60)   719,558  0.90   (11) 0.90   6.28   101  
                                 
Stone Harbor Strategic Income Fund                                
Class A                                
6/1/23 to 11/30/23(6)   $8.29  0.42  (0.10)  0.32  (0.36)  (0.36)  —  (0.04)  $8.25  3.95 %  $ 100  0.50 %  1.22 %  10.05 %  56 % 
6/1/22 to 5/31/23   8.68  0.36  (0.31)  0.05  (0.44)  (0.44)  —  (0.39)  8.29  0.71   99  0.54   1.21   4.33   99  
4/11/22 (8) to 5/31/22   8.89  0.06  (0.24)  (0.18)  (0.03)  (0.03)  —  (0.21)  8.68  (1.98)   98  0.51   1.35   5.04   120   (10)
Class I                                
6/1/23 to 11/30/23(6)   $8.28  0.42  (0.08)  0.34  (0.37)  (0.37)  —  (0.03)  $8.25  4.20 %  $ 38,764  0.25 %  0.94 %  10.24 %  56 % 
6/1/22 to 5/31/23   8.69  0.39  (0.33)  0.06  (0.47)  (0.47)  —  (0.41)  8.28  0.86   42,215  0.29   (7) 0.91   4.64   99  
6/1/21 to 5/31/22   9.64  0.28  (0.99)  (0.71)  (0.24)  (0.24)  —  (0.95)  8.69  (7.49)   38,509  0.24   1.13   3.01   120  
6/1/20 to 5/31/21   9.13  0.37  0.54  0.91  (0.40)  (0.40)  —  0.51  9.64  10.05   31,550  0.07   1.13   3.84   13  
6/1/19 to 5/31/20   9.58  0.38  (0.54)  (0.16)  (0.29)  (0.29)  —  (0.45)  9.13  (1.75)   30,622  0.08   1.12   3.99   7  
6/1/18 to 5/31/19   9.64  0.37  (0.04)  0.33  (0.39)  (0.39)  —  (0.06)  9.58  3.58   32,489  0.06   1.09   3.94   8  
    
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
46


Table of Contents
VIRTUS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
Footnote Legend:
(1) Calculated using average shares outstanding.
(2) Not annualized for periods less than one year.
(3) Total returns would have been lower had various fees and expenses not been waived and reimbursed during the period. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all dividends and distributions).
(4) Annualized for periods less than one year.
(5) The Funds will also indirectly bear their prorated share of expenses of any underlying funds in which they invest. Such expenses are not included in the calculation of this ratio.
(6) Unaudited.
(7) Net expense ratio includes extraordinary proxy expenses.
(8) Inception date.
(9) Includes borrowing costs of 0.02% to average net assets.
(10) Portfolio turnover is representative of the Fund for the entire period.
(11) Includes borrowing costs of 0.01% to average net assets.
(12) Includes interest expense on borrowings.
(13) Amount is less than $0.005 per share.
See Notes to Financial Statements
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Note 1. Organization
Virtus Opportunities Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
As of the date of this report, 26 funds of the Trust are offered for sale, of which six (each a “Fund” or collectively, the “Funds”) are reported in this semiannual report. Each Fund has a distinct investment objective and is diversified, except Stone Harbor Local Markets Fund which is non-diversified.
The Funds have the following investment objective(s):
Fund   Investment objective(s)
Stone Harbor Emerging Markets Bond Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
Stone Harbor Emerging Markets Debt Allocation Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
Stone Harbor Emerging Markets Debt Income Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
Stone Harbor High Yield Bond Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
Stone Harbor Local Markets Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
Stone Harbor Strategic Income Fund

  Seeking to maximize total return, which consists of income on its investments and capital appreciation.
There is no guarantee that a Fund will achieve its objective(s).
All of the Funds offer Class A shares and Class I shares.
Class A shares of the Funds are sold with a front-end sales charge of up to 3.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Funds when redeemed; however, a 0.50% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which such CDSC applies for the Funds is 18 months. No front-end sales load is applied to purchases of $1,000,000 or more. The CDSC period begins on the last day of the month preceding the month in which the purchase was made. Class I shares are sold without a front-end sales charge or CDSC.
Class I Shares are offered primarily to clients of financial intermediaries that (i) charge such clients an ongoing fee for advisory, investment, consulting, or similar services; or (ii) have entered into an agreement with the funds’ distributor to offer Class I Shares through a no-load network or platform. Such clients may include pension and profit sharing plans, other employee benefit trusts, endowments, foundations and corporations. Class I Shares are also offered to private and institutional clients of, or referred by, the adviser, a subadviser or their affiliates, and to Trustees of the funds and trustees/directors of affiliated open- and closed-end funds, and directors, officers and employees of Virtus and its affiliates. If you are eligible to purchase and do purchase Class I Shares, you will pay no sales charge at any time. There are no distribution and service fees applicable to Class I Shares.
The Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectuses and/or statement of additional information. The fees collected will be used to offset certain expenses of the Funds. These fees are reflected as “Less low balance account fees” in each Fund’s Statement of Operations for the period, as applicable.
Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears any expenses attributable specifically to that class (“class-specific expenses”) and has exclusive voting rights with respect to any Rule 12b-1 and/or shareholder service plan (“12b-1 Plan”) approved by the Board. Class I shares are not subject to a 12b-1 Plan. Class-specific expenses may include shareholder servicing fees, sub-transfer agency fees, and fees under a 12b-1 Plan, as well as certain other expenses as designated by the Funds’ Treasurer and approved by the Board. Investment income, common operating expenses and realized and unrealized gains and losses of each Fund are borne pro-rata by the holders of each class of shares.
Note 2. Significant Accounting Policies
The Trust is an investment company that follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements and for derivatives, included in Note 3 below. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be significant.
A. Security Valuation
  The Funds’ Board of Trustees has designated the adviser as the valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Investment Company Act of 1940. Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers into or out of Level 3 at the end of the reporting period.
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     •    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 adviser’s Valuation Committee’s own assumptions in determining the fair value of investments).
A description of the valuation techniques applied to a 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. Illiquid, restricted equity securities and illiquid private placements are internally fair valued by the adviser’s Valuation Committee, and 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 a 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 Funds fair value 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 ADRs, financial futures, 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 instruments, 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 the security and are generally categorized as Level 2 in the hierarchy. Debt instruments that are internally fair valued by the adviser’s Valuation Committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives, such as options and futures, that are actively traded are valued at the last posted settlement price from the exchange where they are principally traded and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts, swaps, swaptions, options and equity linked instruments, are valued based on model prices provided by independent pricing services or from dealer quotes. Depending on the derivative type and the specific terms of the transaction, these models vary and include observable inputs in
actively quoted markets including but not limited to: underlying reference entity details, indices, spreads, interest rates, yield curves, dividend and
exchange rates. These instruments are generally categorized as Level 2 in the hierarchy. Centrally cleared swaps listed or traded on a bilateral or
trade facility platform, such as a registered exchange, are valued at the last posted settlement price determined by the respective exchange. These
securities are generally categorized as Level 2 within 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 a Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
B. Security Transactions and Investment Income
  Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income and capital gain distributions are recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as a Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method. Premiums on callable debt instruments are amortized to interest income to the earliest call date using the effective interest method. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
  Dividend income from REITs is recorded using management’s estimate of the percentage of income included in distributions received from such investments based on historical information and other industry sources. The return of capital portion of the estimate is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed their cost basis, the distributions are treated as realized gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.
C. Income Taxes
  Each Fund is treated as a separate taxable entity. It is the intention of each Fund to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.
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  Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.
  Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Each Fund’s U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State, local and/or non-U.S. tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction.
D. Distributions to Shareholders
  Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP.
E. Expenses
  Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each Fund and each such other fund, or an alternative allocation method, can be more appropriately used.
  In addition to the net annual operating expenses that a Fund bears directly, the shareholders of a Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests.
F. Convertible Securities
  Certain Funds may invest a portion of their assets in convertible securities. Although convertible securities derive part of their value from that of the securities into which they are convertible, they are not considered derivative financial instruments. However, certain of the Funds’ investments in convertible securities include features which render them sensitive to price changes in their underlying securities. The value of structured/synthetic convertible securities can be affected by interest rate changes and credit risks of the issuer. Such securities may be structured in ways that limit their potential for capital appreciation, and the entire value of the security may be at risk of loss depending on the performance of the underlying equity security. Consequently, the Funds are exposed to greater downside risk than traditional convertible securities, but typically still less than that of the underlying stock.
G. Foreign Currency Transactions
  Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. For fixed income instruments, the Funds bifurcate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on foreign currency transactions. For equity securities, the Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on investments.
H. Payment-In-Kind Securities
  Certain Funds may invest in payment-in-kind securities, which are debt or preferred stock securities that require or permit payment of interest in the form of additional securities. Payment-in-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash.
I. Inflation-Indexed Bonds
  Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity.
J. Mortgage-Related and Other Asset-Backed Securities
  Certain Funds may invest in mortgage-related and other asset-backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage-backed securities, stripped mortgage-backed securities, asset-backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Mortgage-related and other asset-backed securities are interests in pools of loans or other receivables. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. These securities provide a monthly payment which consists of both interest and principal payments. Interest payments may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government
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  sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements.
K. U.S. Government Agencies or Government-Sponsored Enterprises
  Certain Funds may invest in securities of U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying securities of similar maturities.
  Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S.
Government. FHLMC issues Participation Certificates (“PCs”), which are pass through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.
L. Securities Traded on a To-Be-Announced Basis
  Certain Funds may trade securities on a to-be-announced (“TBA”) basis. In a TBA transaction, a Fund commits to purchasing or selling securities which have not yet been issued by the issuer and for which specific information, such as the face amount, maturity date and underlying pool of investments in U.S. government agency mortgage pass-through securities, is not announced. Securities purchased on a TBA basis are not settled until they are delivered to the Fund. Beginning on the date a Fund enters into a TBA transaction, cash, U.S. government securities or other liquid high-grade debt obligations are segregated in an amount equal in value to the purchase price of the TBA security. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.
M. When-Issued Purchases and Forward Commitments (Delayed Delivery)
  Certain Funds may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Funds to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. Each Fund records when-issued and forward commitment securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.
N. Leveraged Loans
  Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.
  A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.
  The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, SOFR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased a Fund may pay an assignment fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.
  A Fund may invest in both secured loans and “covenant lite” loans which have few or no financial maintenance covenants that would require a borrower to maintain certain financial metrics. The lack of financial maintenance covenants in covenant lite loans increases the risk that the applicable Fund will experience difficulty or delays in enforcing its rights on its holdings of such loans, which may result in losses, especially during a downturn in the credit cycle.
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O. Credit Linked Notes
  The Funds may invest in credit linked notes to obtain economic exposure to high yield, emerging markets or other securities. Investments in a credit linked note typically provide the holder with a return based on the return of an underlying reference instrument, such as an emerging market bond. Like an investment in a bond, investments in credit-linked securities represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the security. In addition to the risks associated with the underlying reference instrument, an investment in a credit linked note is also subject to liquidity risk, market risk, interest rate risk and the risk that the counterparty will be unwilling or unable to meet its obligations under the note.
Note 3. Derivative Financial Instruments and Transactions
($ reported in thousands)
Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why a Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a Fund’s results of operations and financial position. Summarized below are such disclosures and accounting policies for each specific type of derivative instrument used by certain Funds.
A. Futures Contracts
  A futures contract is an agreement between two parties to purchase (long) or sell (short) a security at a set price for delivery on a future date. Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or securities equal to the “initial margin” requirements of the futures exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by a Fund for financial statement purposes on a daily basis as unrealized appreciation or depreciation. When the contract expires or is closed, gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed is realized. This is presented in the Statement of Operations as net realized gain (loss) from future contracts.
  During the six months ended November 30, 2023, the Stone Harbor Strategic Income Fund utilized futures to optimize performance by gaining exposure to broad markets or to hedge the risk of securities within the portfolios. The potential risks of doing so are that 1) the use of futures may result in larger losses or smaller gains than the use of more traditional investments, 2) the prices of futures and the price movements of the securities that the future is intended to simulate may not correlate well, 3) the Fund’s success in using futures will be dependent upon the subadviser’s ability to correctly predict such price movements, 4) liquidity of futures can be adversely affected by market factors, and the prices of such securities may move in unexpected ways, and 5) if the Fund cannot close out a futures position, it may be compelled to continue to make daily cash payments to the broker to meet margin requirements, thus increasing transaction costs. Futures contracts outstanding at period end, if any, are listed after the Fund’s Schedule of Investments. Cash deposited as margin is recorded on the Statements of Assets and Liabilities as “Cash pledged as collateral for futures contracts.”
B. Forward Foreign Currency Exchange Contracts
  A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Forward foreign currency exchange contracts, when used by a Fund, help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of forward foreign currency exchange contracts involves the risk that the value of the contract changes unfavorably due to movements in the value of the referenced foreign currencies. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in U.S. dollars without the delivery of foreign currency. Cash deposited is recorded on the Statements of Assets and Liabilities as “Cash pledged as collateral for forward foreign currency contracts.”
  During the six months ended November 30, 2023, the Stone Harbor Emerging Markets Debt Income Fund, Stone Harbor Local Markets Fund and Stone Harbor Strategic Income Fund entered into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from, foreign currencies (foreign currency exchange rate risk).
  Forward foreign currency contracts outstanding at period end, if any, are listed after each Fund’s Schedule of Investments.
C. Swaps
  Certain Funds enter into swap agreements, in which the Fund and a counterparty agree either to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are negotiated in the OTC market and may be entered into as a bilateral contract “OTC swaps at value” for OTC swaps and as “Variation margin receivable on cleared swaps”. The value of the swap is reflected on the Statements of Assets and Liabilities as “Over-the-counter swaps at value” and as “Variation margin receivable/payable on cleared swaps” for centrally cleared swaps. Swaps are marked-to-market daily and changes are recorded as “Net Change in unrealized appreciation (depreciation) on swaps” in the Statement of Operations. Swaps are marked-to-market daily and changes in value are recorded as “Net change in unrealized appreciation (depreciation) on swaps” in the Statements of Operations.
  Any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown under “Over-the-counter swaps at value” in the Statements of Assets and Liabilities and are amortized over the term of the swap for OTC swaps. When a swap is terminated, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contracts is the unamortized premium received or paid. Cash settlements between the Fund and
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  the counterparty are recognized as “Net realized gain (loss) on swaps” in the Statements of Operations. Swap contracts outstanding at period end, if any, are listed after each Fund’s Schedule of Investments.
  In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is submitted to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through a clearing broker. Upon entering into a centrally cleared swap, a Fund is required to deposit initial margin with the clearing broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap.
  Securities deposited as margin are designated on the Schedule of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as “Cash pledged as collateral for swaps.”
  Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
  Credit default swaps – A Fund may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the protection seller to make specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on a combination or basket of single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the protection seller to make specific payment should a negative credit event take place with respect to any of the referenced entities (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occurs. As a buyer, if an underlying credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. The Funds may enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk).
  During the six months ended November 30, 2023, Stone Harbor Emerging Markets Debt Income Fund and Stone Harbor Strategic Income Fund utilized both single name credit default swaps and credit index swaps to gain exposure to short individual securities or to gain exposure to a credit or asset-backed index.
  The following is a summary of derivative instruments categorized by primary risk exposure, and location as presented in the Statements of Assets and Liabilities at November 30, 2023:
    
Statement Line Description   Primary Risk Stone Harbor Emerging Markets Debt Income Fund Stone Harbor
Local Markets Fund
Asset Derivatives  
Unrealized appreciation on forward foreign currency exchange contracts   Foreign currency contracts $ 28 $100
Total Assets     $ 28 $100
Liability Derivatives  
Unrealized depreciation on forward foreign currency exchange contracts   Foreign currency contracts $(384) $ (70)
Total Liabilities     $(384) $ (70)
    
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November 30, 2023
Statement Line Description   Primary Risk Stone Harbor
Strategic Income
Fund
Asset Derivatives
Unrealized appreciation on forward foreign currency exchange contracts   Foreign currency contracts $ 45  
Variation margin receivable on futures contracts(1)   Interest rate contracts 10  
Total Assets     $ 55  
Liability Derivatives
Variation margin payable on cleared swaps(1)   Credit contracts $(316)  
Unrealized depreciation on forward foreign currency exchange contracts   Foreign currency contracts (45)  
Variation margin receivable on futures contracts(1)   Interest rate contracts (80)  
Total Liabilities     $(441)  
   
(1) Represents cumulative appreciation (depreciation) on futures contracts and swap contracts as reported in the Schedule of Investments. Only current day’s variation margin is shown in the Statements of Assets and Liabilities for exchange-traded futures contracts and centrally cleared swap contracts. For OTC swap contracts, the value (including premiums) at November 30, 2023 is shown in the Statements of Assets and Liabilities.
The following is a summary of derivative instruments categorized by primary risk exposure, and location as presented in the Statements of Operations for the six months ended November 30, 2023:
Statement Line Description   Primary Risk Stone Harbor
Emerging Markets
Debt Income Fund
Stone Harbor
Local Markets
Fund
Net Realized Gain (Loss) from
Forward foreign currency exchange contracts   Foreign currency contracts $ 1,023 $ (229)
Swaps   Credit contracts 875
Total     $ 1,898 $ (229)
Net Change in Unrealized Appreciation (Depreciation) on
Forward foreign currency exchange contracts   Foreign currency contracts $ (1,306) $ 89
Swaps   Credit contracts (370)
Total     $ (1,676) $ 89
    
Statement Line Description   Primary Risk Stone Harbor
Strategic Income
Fund
Net Realized Gain (Loss) from
Futures   Interest rate contracts $ 668  
Forward foreign currency exchange contracts   Foreign currency contracts (25)  
Swaps   Credit contracts (244)  
Total     $ 399  
Net Change in Unrealized Appreciation (Depreciation) on
Futures   Interest rate contracts $ (83)  
Forward foreign currency exchange contracts   Foreign currency contracts (19)  
Swaps   Credit contracts (246)  
Total     $ (348)  
 
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November 30, 2023
The table below shows the quarterly average volume (unless otherwise specified) of the derivatives held by the applicable Fund for the six months November 30, 2023:
  Stone Harbor Emerging Markets Debt Income Fund   Stone Harbor Local Markets Fund
Forward Foreign Currency Exchange Purchase Contracts(2)

$ 2,889   $5,339
Forward Foreign Currency Exchange Sale Contracts(2)

25,172   3,189
Credit Default Swap Contracts - Sell Protection(2)

4,001  
    
  Stone Harbor Strategic Income Fund
Futures Contracts - Long Positions(1)

$ 14
Futures Contracts - Short Positions(1)

52
Forward Foreign Currency Exchange Purchase Contracts(2)

3,361
Forward Foreign Currency Exchange Sale Contracts(2)

2,954
Credit Default Swap Contracts - Buy Protection(2)

10,837
(1)  Average unrealized for the period.
(2)  Average notional amount.
D. Derivative Risks
  A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
  A Fund’s risk of loss from counterparty credit risk on derivatives bought or sold OTC rather than traded on a securities exchange, is generally limited to the aggregate unrealized gain netted against any collateral held by such Fund. For OTC purchased options, each Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by such Fund should the counterparty fail to perform under the contracts. Options written by a Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund, and not the counterparty to perform.
  With exchange traded purchased options and futures and centrally cleared swaps generally speaking, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro-rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.
  In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, each Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
E. Collateral Requirements and Master Netting Agreements (“MNA”)
  For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty.
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November 30, 2023
  Cash collateral that has been pledged to cover obligations of a Fund and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by a Fund, if any, is noted in the Schedules of Investments. Typically, the Funds and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
  For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
  The following tables present the Funds’ derivative assets and liabilities by counterparty net of amounts available for offset under a MNA and net of the related collateral received/pledged by the Funds as of November 30, 2023:
    
At November 30, 2023, the Funds’ derivative assets and liabilities (by type) are as follows:            
  Stone Harbor Emerging Markets Debt Income Fund   Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
  Assets   Liabilities   Assets   Liabilities   Assets   Liabilities
Derivative Financial
Instruments:
                     
Futures contracts $   $   $   $   $ 44   $
Forward foreign currency
exchange contracts
28   384   100   70   45   45
Centrally cleared swaps           4
Total derivative assets and liabilities in the Statements of Assets and Liabilities $28   $384   $100   $70   $ 89   $ 49
Derivatives not subject to a MNA
or similar agreement
        (44)   (4)
Total assets and liabilities
subject to a MNA
$28   $384   $100   $70   $ 45   $ 45
 
Stone Harbor Emerging Markets Debt Income Fund
Counterparty   Gross Derivative
Assets
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Received(1)
  Cash
Collateral
Received(1)
  Net
Amount of
Derivative
Assets(1)
Citigroup Global Markets

  $ 4   $ (4)   $   $   $
JPMorgan Chase Bank N.A.

  24   (24)      
Total

  $ 28   $ (28)   $   $   $
Counterparty   Gross Derivative
Liabilities
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Pledged(1)
  Cash
Collateral
Pledged(1)
  Net
Amount of
Derivative
Liabilities(1)
Citigroup Global Markets

  $ 5   $ (4)   $   $   $ 1
JPMorgan Chase Bank N.A.

  379   (24)       355
Total

  $ 384   $ (28)   $   $   $ 356
    
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November 30, 2023
Stone Harbor Local Markets Fund
Counterparty   Gross Derivative
Assets
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Received(1)
  Cash
Collateral
Received(1)
  Net
Amount of
Derivative
Assets(1)
Goldman Sachs & Co.

  $ 57   $ (7)   $   $   $ 50
JPMorgan Chase Bank N.A.

  43   (43)      
Total

  $ 100   $ (50)   $   $   $ 50
Counterparty   Gross Derivative
Liabilities
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Pledged(1)
  Cash
Collateral
Pledged(1)
  Net
Amount of
Derivative
Liabilities(1)
Citigroup Global Markets

  $ (2)   $   $   $   $ (2)
Goldman Sachs & Co.

  7   (7)      
JPMorgan Chase Bank N.A.

  63   (43)       20
Total

  $ 70   $ (50)   $   $   $ 20
    
Stone Harbor Strategic Income Fund
Counterparty   Gross Derivative
Assets
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Received(1)
  Cash
Collateral
Received(1)
  Net
Amount of
Derivative
Assets(1)
Citigroup Global Markets

  $ 10   $ (6)   $   $   $ 4
Goldman Sachs & Co

  16   (9)       7
JPMorgan Chase Bank N.A

  19   (19)      
Total

  $ 45   $ (34)   $   $   $ 11
Counterparty   Gross Derivative
Liabilities
Subject to
a MNA by
Counterparty
  Derivatives
Available
for Offset
  Non-cash
Collateral
Pledged(1)
  Cash
Collateral
Pledged(1)
  Net
Amount of
Derivative
Liabilities(1)
Citigroup Global Markets

  $ 6   $ (6)   $   $   $
Goldman Sachs & Co

  9   (9)      
JPMorgan Chase Bank N.A

  30   (19)       11
Total

  $ 45   $ (34)   $   $   $ 11
    
 
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November 30, 2023
(1) These amounts are limited to the derivatives asset/liability balance and, accordingly, do not include excess collateral received/pledged.
(2) Amount is less than $500 (not in thousands).
Note 4. Investment Advisory Fees and Related Party Transactions
($ reported in thousands)
A. Investment Adviser
  Virtus Alternative Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Funds. The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadviser.
  As compensation for its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly based upon the following annual rates as a percentage of the average daily net assets of each Fund:
    
Fund Advisory Fee
Stone Harbor Emerging Markets Bond Fund

0.85%
Stone Harbor Emerging Markets Debt Allocation Fund

0.70
Stone Harbor Emerging Markets Debt Income Fund

0.60
Stone Harbor High Yield Bond Fund

0.50
Stone Harbor Local Markets Fund

0.75
Stone Harbor Strategic Income Fund

0.55
During the six months ended November 30, 2023, the Stone Harbor Emerging Markets Debt Income Fund invested a portion of its assets in Stone Harbor Emerging Markets Bond Fund and Stone Harbor Local Markets Fund; Stone Harbor Strategic Income Fund invested a portion of its assets in Stone Harbor Emerging Market Bond Fund, Stone Harbor Emerging Markets Debt Income Fund, Stone Harbor High Yield Bond Fund and Stone Harbor Local Markets Fund; and Stone Harbor Emerging Markets Debt Allocation Fund invested a portion of its assets in Stone Harbor Emerging Markets Debt Income Fund and Stone Harbor Local Markets Fund, each an affiliated mutual fund. In order to avoid any duplication of advisory fees, the Adviser voluntarily waived its advisory fees in an amount equal to that which would otherwise be paid by each Fund on the assets invested in the Stone Harbor Emerging Markets Bond Fund, Stone Harbor Emerging Markets Debt Income Fund, Stone Harbor High Yield Bond Fund and Stone Harbor Local Markets Fund. For the six months ended November 30, 2023, the waiver amounted to $10, $32 and $97 for Stone Harbor Emerging Markets Debt Allocation Fund, Stone Harbor Emerging Markets Debt Income Fund and Stone Harbor Strategic Income Fund, respectively. This waiver was in addition to the expense limitation and/or fee waiver covered elsewhere in these financial statements and is included in the Statements of Operations in “Less expenses reimbursed and/or waived by investment adviser.”
B. Subadviser
  Stone Harbor Investment Partners (the “Subadviser”), a division of Virtus Fixed Income Advisers LLC (“VFIA”), an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Funds. The Subadviser manages the investments of the Funds, for which it is paid a fee by the Adviser.
C. Expense Limitations
  The Adviser has contractually agreed to limit each Fund’s annual total operating expenses, subject to the exceptions listed below, so that such expenses do not exceed, on an annualized basis, the following respective percentages of average daily net assets through September 30, 2024. Following the contractual period, the Adviser may discontinue these expense limitation arrangements at any time. The waivers and reimbursements are accrued daily and received monthly.
    
Fund   Class A   Institutional Class
Stone Harbor Emerging Markets Bond Fund

  1.25%   1.00%
Stone Harbor Emerging Markets Debt Allocation Fund

  1.10   0.85
Stone Harbor Emerging Markets Debt Income Fund

  1.00   0.72
Stone Harbor High Yield Bond Fund

  0.90   0.65
Stone Harbor Local Markets Fund

  1.25   1.00
Stone Harbor Strategic Income Fund

  0.95   0.70
The exclusions include front-end or contingent deferred sales charges, taxes, leverage and borrowing expenses (such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses other than those of funds managed by the Funds’ subadviser, and dividend expenses, if any.
D. Expense Recapture
  Under certain conditions, the Adviser may recapture operating expenses reimbursed or fees waived under these arrangements within three years after the date on which such amounts were incurred or waived. A Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of
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November 30, 2023
  the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the six months ending November 30:
    
    Expiration    
Fund   2024   2025   2026   2027   Total
Stone Harbor Emerging Markets Bond Fund                    
Class A

  $   $    — (1)   $ 1   $ 1   $ 2
Class I

  64   150   85   43   342
Stone Harbor Emerging Markets Debt Allocation Fund                    
Class A

      1   1   2
Class I

  158   239   51   37   485
Stone Harbor Emerging Markets Debt Income Fund                    
Class A

      (1)   (1)   (1)
Class I

    94   438   147   679
Stone Harbor High Yield Bond Fund                    
Class A

    (1)   (1)   1   1
Class I

  76   136   100   60   372
Stone Harbor Local Markets Fund                    
Class A

      (1)   (1)   (1)
Class I

  38   147   59   43   287
Stone Harbor Strategic Income Fund                    
Class A

    (1)   (1)   (1)   (1)
Class I

  157   258   69   52   536
(1) Amount is less than $500 (not in thousands).
During the six months ended November 30, 2023, the Adviser recaptured expenses previously waived for the following Fund:
Fund Class A                 
Stone Harbor Emerging Markets Debt Allocation Fund

$ (1)                
(1) Amount is less than $500 (not in thousands).
E. Distributor
  VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the six months ended November 30, 2023, it did not retain any net commissions for Class A shares.
  In addition, each Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan, at the annual rate of 0.25% of the average daily net assets of such Fund’s Class A shares. Class I shares are not subject to a 12b-1 plan.
  Under certain circumstances, shares of certain Virtus Funds may be exchanged for shares of the same class of certain other Virtus Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.
F. Administrator and Transfer Agent
  Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Funds.
  For the six months ended November 30, 2023, the Funds incurred administration fees totaling $212 which are included in the Statements of Operations within the line item “Administration and accounting fees.” The fees are calculated daily and paid monthly.
  For the six months ended November 30, 2023, the Funds incurred transfer agent fees totaling $95 which are included in the Statements of Operations within the line item “Transfer agent fees and expenses.” The fees are calculated daily and paid monthly.
G. Affiliated Shareholders
  At November 30, 2023, Virtus and its affiliates held shares of the following Funds, which may be redeemed at any time, that aggregated to the following:
    
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November 30, 2023
  Shares   Aggregate Net
Asset Value
Stone Harbor Emerging Markets Bond Fund      
Class A

12,255   $ 93
Class I

890,782   6,788
Stone Harbor Emerging Markets Debt Allocation Fund      
Class A

12,887   90
Class I

145,086   1,016
Stone Harbor High Yield Bond Fund      
Class A

13,369   90
Class I

1,761,384   11,872
Stone Harbor Local Markets Fund      
Class A

12,970   104
Class I

1,080,547   8,731
H. Investments with Affiliates
  The Funds are permitted to purchase assets from or sell assets to certain related affiliates under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of assets by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the six months ended November 30, 2023, the Funds did not engage in any transactions pursuant to Rule 17a-7 under the 1940 Act.
  Outside of Rule 17a-7 transactions, other investments with affiliated issuers are separately reported in this Note. An affiliated issuer includes any company in which the Fund held 5% or more of a company’s outstanding voting shares at any point during the period, as well as other circumstances where an investment adviser or subadviser to the Fund is deemed to exercise, directly or indirectly, a certain level of control over the company.
  A summary of the Funds’ total long-term and short-term purchases and sales of the respective shares of the affiliated investments during the six months ended November 30, 2023, is as follows:
    
  Value,
beginning
of period
  Purchases (1)   Sales
proceeds
  Net
realized
gain
(loss)
on
affiliated
securities
  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities
  Value,
end of
period
  Shares   Dividend
income
  Distributions
of realized
gains
Stone Harbor Emerging Markets Debt Allocation Fund
Affiliated Mutual Funds—97.0%(2)
Virtus Stone Harbor Emerging Markets Debt Income Fund Class I(3)

$1,131   $69   $347   $(19)   $26   $ 860   123,180   $69   $—
Virtus Stone Harbor Local Markets Fund Class I(3),(4)

1,207     347   12   36   908   112,506    
Total $2,338   $69   $694   $ (7)   $62   $1,768       $69   $—
    
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November 30, 2023
  Value,
beginning
of period
  Purchases (1)   Sales
proceeds
  Net
realized
gain
(loss)
on
affiliated
securities
  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities
  Value,
end of
period
  Shares   Dividend
income
  Distributions
of realized
gains
Stone Harbor Emerging Markets Debt Income Fund
Affiliated Mutual Funds—3.3%(5)
Virtus Stone Harbor Emerging Markets Bond Fund Class I(3)

$ 4,478   $200   $—   $—   $ (4)   $ 4,674   613,333   $200   $—
Virtus Stone Harbor Local Markets Fund Class I(3),(4)

6,086         276   6,362   788,382    
Total $10,564   $200   $—   $—   $272   $11,036       $200   $—
    
  Value,
beginning
of period
  Purchases (1)   Sales
proceeds
  Net
realized
gain
(loss)
on
affiliated
securities
  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities
  Value,
end of
period
  Shares   Dividend
income
  Distributions
of realized
gains
Stone Harbor Strategic Income Fund
Affiliated Mutual Funds—63.1%(6)
Virtus Stone Harbor Emerging Markets Bond Fund Class I(3)

$ 2,091   $ 227   $ 392   $ (82)   $ 77   $ 1,921   252,038   $ 93   $—
Virtus Stone Harbor Emerging Markets Debt Income Fund Class I(3)

10,211   1,341   1,962   (1,033)   1,137   9,694   1,388,873   665  
Virtus Stone Harbor High Yield Bond Fund Class I(3)

12,702   1,932   2,353   (769)   360   11,872   1,761,384   1,121  
Virtus Stone Harbor Local Markets Fund Class I(3),(4)

1,097   68   196   (16)   64   1,017   126,053    
Total $26,101   $3,568   $4,903   $(1,900)   $1,638   $24,504       $1,879   $—
Footnote Legend:
(1) Includes reinvested dividends from income and capital gain distributions.
(2) The Stone Harbor Emerging Markets Debt Allocation Fund does not invest in the underlying funds for the purpose of exercising management or control; however, investments made by the Fund within each of its principal investment strategies may represent a significant portion of an underlying fund’s net assets. At November 30, 2023, the Fund was the owner of record of less than 10% of all affiliated underlying funds.
(3) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(4) Non-income producing.
(5) The Stone Harbor Emerging Markets Debt Income Fund does not invest in the underlying funds for the purpose of exercising management or control; however, investments made by the Fund within each of its principal investment strategies may represent a significant portion of an underlying fund’s net assets. At November 30, 2023, the Fund was the owner of record of 45% of the Virtus Stone Harbor Emerging Markets Bond Fund Class I shares and the owner of record of 49% of the Virtus Stone Harbor Local Markets Fund Class I shares.
(6) The Stone Harbor Strategic Income Fund does not invest in the underlying funds for the purpose of exercising management or control; however, investments made by the Fund within each of its principal investment strategies may represent a significant portion of an underlying fund’s net assets. At November 30, 2023, the Fund was the owner of record of 18% of the Virtus Stone Harbor Emerging Markets Bond Fund, the owner of record of 52% of the Virtus Stone Harbor High Yield Bond Fund Class I shares and the owner of record of less than 10% of all other affiliated underlying funds.
I. Trustee Deferred Compensation Plan
  The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by
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November 30, 2023
  the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statements of Assets and Liabilities at November 30, 2023.
Note 5. Purchases and Sales of Securities
($ reported in thousands)
Purchases and sales of securities (excluding U.S. government and agency securities, forward currency contracts, and short-term securities) during the six months ended November 30, 2023, were as follows:
  Purchases   Sales
Stone Harbor Emerging Markets Bond Fund

$ 3,930   $ 1,675
Stone Harbor Emerging Markets Debt Allocation Fund

69   695
Stone Harbor Emerging Markets Debt Income Fund

226,198   311,349
Stone Harbor High Yield Bond Fund

3,837   65,960
Stone Harbor Local Markets Fund

9,483   11,095
Stone Harbor Strategic Income Fund

5,615   7,528
Purchases and sales of long-term U.S. government and agency securities during the six months ended November 30, 2023, were as follows:
  Purchases   Sales
Stone Harbor Strategic Income Fund

$16,365   $16,230
Note 6. Capital Share Transactions
(reported in thousands)
Transactions in shares of capital stock, during the periods ended as indicated below, were as follows:
  Stone Harbor Emerging Markets Bond Fund   Stone Harbor Emerging Markets Debt Allocation Fund
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A              
Shares sold and cross class
conversions
  $ —      (1)   $ 3     $     $
Reinvestment of distributions (1)   (2)   (1)   (2)        
Shares repurchased and cross
class conversions
(—) (1)   (—)  (2)   —    —    —    —    —    — 
Net Increase / (Decrease) (1)   $ (2)   (1)   $ 3     $     $
Class I              
Shares sold and cross class
conversions
359     $ 2,724      89   $ 681     $   225   $ 1,557
Reinvestment of distributions 46     345      41   312       24   158
Shares repurchased and cross
class conversions
(54)     (404)     (—) (1)   (4)   (102)   (695)   (986)   (6,691)
Net Increase / (Decrease) 351      $ 2,665      130   $ 989   (102)   $ (695)   (737)   $ (4,976)
    
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November 30, 2023
  Stone Harbor Emerging Markets Debt Income Fund   Stone Harbor High Yield Bond Fund
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A              
Shares sold and cross class
conversions
  $   (1)   $ 2   1   $ 4   10   $ 67
Reinvestment of distributions (1)   (2)   (1)   (2)   1   5   (1)   2
Shares repurchased and cross
class conversions
—    —    —    —    (5)   (29)   (1)   (8)
Net Increase / (Decrease) (1)   $ (2)   (1)   $ 2   (3)   $ (20)   9   $ 61
Class I              
Shares sold and cross class
conversions
4,514   $ 30,870   16,016   $ 113,172   249   $ 1,693   165   $ 1,144
Reinvestment of distributions 3,034   20,664   4,966   34,660   308   2,036   680   4,729
Shares repurchased and cross
class conversions
(20,241)   (139,063)   (56,826)   (402,034)   (9,321)   (65,549)   (2,654)   (18,530)
Net Increase / (Decrease) (12,693)   $ (87,529)   (35,844)   $ (254,202)   (8,764)   $ (61,820)   (1,809)   $ (12,657)
    
  Stone Harbor Local Markets Fund   Stone Harbor Strategic Income Fund
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  Six Months Ended
November 30, 2023
(Unaudited)
  Year Ended
May 31, 2023
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A              
Shares sold and cross class
conversions
  $     $   (1)   $ 2   4   $ 30
Reinvestment of distributions         (1)   (2)   (1)   (2)
Shares repurchased and cross
class conversions
        (—) (1)   (1)   (3)   (24)
Net Increase / (Decrease)   $     $   (1)   $ 1   1   $ 6
Class I              
Shares sold and cross class
conversions
25   $ 192   956   $ 6,962   338   $ 2,700   393   $ 3,251
Reinvestment of distributions         234   1,896   272   2,245
Shares repurchased and cross
class conversions
(403)   (3,237)   (9,220)   (65,107)   (969)   (7,843)   (—) (1)   (1)
Net Increase / (Decrease) (378)   $ (3,045)   (8,264)   $ (58,145)   (397)   $ (3,247)   665   $ 5,495
(1) Amount is less than 500 shares (not in thousands).
(2) Amount is less than $500 (not in thousands).
Note 7. 10% Shareholders
As of November 30, 2023, each Fund had individual shareholder account(s) and/or omnibus shareholder account(s) (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of such Fund as detailed below:
  % of Shares
Outstanding
  Number of
Accounts
Stone Harbor Emerging Markets Bond Fund

87 %   3 *
Stone Harbor Emerging Markets Debt Allocation Fund

91   3 *
Stone Harbor Emerging Markets Debt Income Fund

55   4
Stone Harbor High Yield Bond Fund

90   3 *
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November 30, 2023
  % of Shares
  Outstanding  
  Number of
     Accounts     
         
Stone Harbor Local Markets Fund

70% 2 *          
Stone Harbor Strategic Income Fund

100 1          
* Includes affiliated shareholder account(s).
Note 8. Credit and Market Risk and Asset Concentration
In July 2017, the head of the United Kingdom Financial Conduct Authority (“FCA”) announced the intention to phase out the use of LIBOR by the end of 2021. However, after subsequent announcements by the FCA, the LIBOR administrator and other regulators, certain of the most widely used LIBORs continued until June 30, 2023. The ICE Benchmark Administration Limited, which is regulated and authorized by FCA, and the administrator of LIBOR, ceased publishing certain LIBOR settings on December 31, 2021. On April 3, 2023, the FCA announced its decision to require LIBOR’s administrator to continue to publish the 1-month, 3-month, and 6-month U.S. dollar settings under an unrepresentative synthetic methodology until September 30, 2024. On March 15, 2022, the Adjustable Interest Act (LIBOR) Act (the “LIBOR Act”) was enacted into law which directs the Federal Reserve Board, as a fallback mechanism, to identify benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023. On December 16, 2022, the Federal Reserve adopted regulations implementing the LIBOR Act. The Fund may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The discontinuation of LIBOR could have a significant impact on the financial markets and may present a material risk for certain market participants, including the Fund. Abandonment of or modifications to LIBOR could lead to significant short- and long-term uncertainty and market instability. The risks associated with this discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. It remains uncertain the effects such changes will have on the Fund, issuers of instruments in which the Fund invests, and the financial markets generally.
Local, regional or global events such as war or military conflict, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on a Fund and its investments, including hampering the ability of each Fund’s portfolio manager(s) to invest each Fund’s assets as intended.
Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the actions of a few large investors. They may also have policies that restrict investment by foreigners, or that prevent foreign investors from withdrawing their money at will.
Certain emerging markets may also face other significant internal or external risks, including the risk of war and civil unrest. Each of these factors can affect the value and liquidity of the assets of the Fund. Failure to generate adequate earnings from foreign trade would make it difficult for an emerging market country to service foreign debt. Disruptions resulting from social and political factors may cause the securities markets of emerging market countries to close. If this were to occur, the liquidity and value of the Fund’s assets invested in corporate debt obligations of emerging market companies would decline.
The imposition of sanctions, exchange controls (including repatriation restrictions), confiscation of assets and property, trade restrictions (including tariffs) and other government restrictions by the U.S. or other governments, or from problems in registration, settlement or custody, may also result in losses. The type and severity of sanctions and other similar measures, including counter sanctions and other retaliatory actions, that may be imposed could vary broadly in scope, and their impact is impossible to predict. For example, the imposition of sanctions and other similar measures could, among other things, cause a decline in the value and/or liquidity of securities issued by the sanctioned country or companies located in or economically tied to the sanctioned country and increase market volatility and disruption in the sanctioned country and throughout the world. Sanctions and other similar measures could limit or prevent the Fund from buying and selling securities (in the sanctioned country and other markets), significantly delay or prevent the settlement of securities transactions, and significantly impact the Fund’s liquidity and performance.
Sanctions threatened or imposed may result in a decline in the value and liquidity of the Fund’s assets. The securities of the Fund may be deemed to have a zero value. The Fund may make investments that are illiquid or that may become less liquid in response to market developments or adverse investor perceptions. Illiquid investments may be more difficult to value. If the Fund is forced to sell securities at an unfavorable time and/or under unfavorable conditions, such sales may adversely affect the Fund’s NAV and dilute investors’ interests. Liquidity risk may be the result of, among other things, the reduced number and capacity of traditional market participants to make a market in fixed income securities or the lack of an active market. The potential for liquidity risk may be magnified by a rising interest rate environment or other circumstances where investor redemptions from fixed income funds may be higher than normal, potentially causing increased supply in the market due to selling activity. These risks may be more pronounced in connection with the Fund’s investments in securities of issuers located in emerging market countries. Redemptions by large shareholders may have a negative impact on a Fund’s liquidity.
For all these reasons, investments in emerging markets may be considered speculative. To the extent that the Fund invests a significant portion of its assets in a particular emerging market, the Fund will be more vulnerable to financial, economic, political and other developments in that country, and conditions that negatively impact that country will have a greater impact on the Fund as compared with a fund that does not have its holdings concentrated in a particular country.
High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or Subadviser to accurately predict risk.
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November 30, 2023
Note 9.  Indemnifications
Under the Trust’s organizational documents and in separate agreements between each Trustee and the Trust, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust and its funds. In addition, in the normal course of business, the Trust and the Funds enter into contracts that provide a variety of indemnifications to other parties. The Trust’s and/or the Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust or the Funds and that have not occurred. However, neither the Trust nor the Funds have had prior claims or losses pursuant to these arrangements, and they expect the risk of loss to be remote.
Note 10. Restricted Securities
Restricted securities are not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category. Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities. At November 30, 2023, the Funds did not hold any securities that were restricted.
Note 11. Redemption Facility
On April 11, 2022, the Funds were added to a $250,000 unsecured line of credit (“Credit Agreement”) with certain other affiliated funds. This Credit Agreement, as amended, is with a commercial bank that allows the Funds to borrow cash from the bank to manage large, unexpected redemptions and trade fails, up to a limit of one-third or one-fifth, as applicable, of each Fund’s total net assets in accordance with the terms of the agreement. This Credit Agreement has a term of 364 days and has been renewed for a period up to July 6, 2024. Effective March 10, 2022, interest is charged at the higher of the SOFR or the Federal Funds rate plus an additional percentage rate on the amount borrowed. Commitment fees are charged on the undrawn balance. Total commitment fees paid for the six months ended November 30, 2023, are included in the “Interest expense and/or commitment fees” line on the Statements of Operations. The Funds and other affiliated funds that are parties are individually, and not jointly, liable for their particular advances, if any, under the Credit Agreement. The lending bank has the ability to require repayment of outstanding borrowings under this Credit Agreement upon certain circumstances such as an event of default.
The following Fund had an outstanding loan during the six months ended November 30, 2023. The borrowings were valued at cost, which approximates fair value.
Fund   Interest
Incurred on
Borrowing
  Average
Borrowing
  Weighted Average
Interest Rate
  Days
Outstanding
Stone Harbor Emerging Markets Debt Income Fund

  $8   $6,486   6.24%   7
Note 12. Federal Income Tax Information
($ reported in thousands)
At November 30, 2023, the approximate aggregate cost basis and the unrealized appreciation (depreciation) of investments and other financial instruments for federal income tax purposes were as follows:
Fund   Federal
Tax Cost
  Unrealized
Appreciation
  Unrealized
(Depreciation)
  Net Unrealized
Appreciation
(Depreciation)
Stone Harbor Emerging Markets Bond Fund

  $ 10,540   $ 70   $ (490)   $ (420)
Stone Harbor Emerging Markets Debt Allocation Fund

  1,778   115   (125)   (10)
Stone Harbor Emerging Markets Debt Income Fund

  363,588   1,884   (44,203)   (42,319)
Stone Harbor High Yield Bond Fund

  23,669   321   (1,648)   (1,327)
Stone Harbor Local Markets Fund

  14,040   200   (996)   (796)
Stone Harbor Strategic Income Fund

  41,354   170   (4,895)   (4,725)
Certain Funds have capital loss carryforwards available to offset future realized capital gains, if any, to the extent permitted by the Code. Net capital losses are carried forward without expiration and generally retain their short-term and/or long-term tax character, as applicable. For the year ended May 31, 2023, the Funds’ capital loss carryovers were as follows:
Fund   Short-Term   Long-Term
Stone Harbor Emerging Markets Bond Fund

  $ 1,721   $ 2,959
Stone Harbor Emerging Markets Debt Allocation Fund

  612   7,104
Stone Harbor Emerging Markets Debt Income Fund

  186,618   194,399
Stone Harbor High Yield Bond Fund

  1,354   26,065
Stone Harbor Local Markets Fund

  120,699   73,868
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VIRTUS OPPORTUNITIES TRUST NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
November 30, 2023
Fund   Short-Term   Long-Term
Stone Harbor Strategic Income Fund

  $ 336   $ 774
Note 13. Regulatory Matters and Litigation
From time to time, the Funds, the Adviser and/or Subadviser and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their activities. At this time, the Adviser believes that the outcomes of such matters are not likely, either individually or in aggregate, to be material to these financial statements.
Note 14. Recent Accounting Pronouncement
In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered reference rates as of the end of 2021. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of the USD LIBOR settings to June 30, 2023. On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management is currently evaluating ASU 2020-04 and ASU 2020-06, but does not believe there will be a material impact.
Note 15. New Regulatory Pronouncement
In October 2022, the SEC adopted a rule and form amendments relating to tailored shareholder reports for mutual funds and ETFs; and fee information in investment company advertisements. The rule and form amendments will require mutual funds and ETFs to transmit streamlined shareholder reports that highlight key information to investors. The rule amendments will require that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective in January 2023 and there is an 18-month transition period after the effective date of the amendment with a compliance date of July 2024.
Note 16. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance, and has determined that the following are subsequent events requiring recognition or disclosure in these financial statements:
    On November 1, 2023, the Board voted to approve:
     •   A Plan of Liquidation for each of Virtus Stone Harbor Emerging Markets Debt Allocation Fund and Virtus Stone Harbor High Yield Bond Fund,
         pursuant to which each such Fund was liquidated on or about December 13, 2023.
     •   A Plan of Liquidation for Virtus Stone Harbor Strategic Income Fund, pursuant to which such Fund will be liquidated on or about January 30, 2024.
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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS
STONE HARBOR EMERGING MARKETS BOND FUND, VIRTUS STONE HARBOR EMERGING MARKETS DEBT INCOME FUND AND VIRTUS STONE MARKET LOCAL MARKETS FUND
(each a “FUND” and collectively, the “FUNDS”)
BY THE BOARD OF TRUSTEES
The Board of Trustees (the “Board”) of Virtus Opportunities Trust (the “Trust”) is responsible for determining whether to approve the continuation of the investment advisory agreement (the “Advisory Agreement”) between the Trust and Virtus Alternative Investment Advisers, Inc. (“VAIA”) and the continuation of the subadvisory agreement (the “Subadvisory Agreement”)(together with the Advisory Agreement, the “Agreements”) among the Trust, VAIA and Virtus Fixed Income Advisers, LLC, operating through its division, Stone Harbor Investment Partners (the “Subadviser”) with respect to the Funds. At meetings held on November 1, 2023, and November 13-15, 2023 (the “Meetings”), the Board, including a majority of the Trustees who are not interested persons of the Trust as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (such Act, the “1940 Act” and such Trustees, the “Independent Trustees”), considered and approved the continuation of each Agreement, as further discussed below. In addition, prior to the Meetings, the Independent Trustees met with their independent legal counsel to discuss and consider the information provided by management and submitted questions to management, and they considered the responses provided.
In connection with the approval of the Agreements, the Board requested and evaluated information provided by VAIA and the Subadviser which, in the Board’s view, constituted information necessary for the Board to form a judgment as to whether the renewal of each of the Agreements would be in the best interests of each applicable Fund and its respective shareholders. The Board also considered information furnished throughout the year at regular Board meetings with respect to the services provided by VAIA and the Subadviser, including quarterly performance reports prepared by management containing reviews of investment results and periodic presentations from the Subadviser with respect to the Funds it manages. The Board noted the affiliation of the Subadviser with VAIA and any potential conflicts of interest.
The Board was separately advised by independent legal counsel throughout the process. For each Agreement, the Board considered all the criteria with respect to the applicable Fund and its shareholders. In its deliberations, the Board considered various factors, including those discussed below, none of which were controlling, and each Trustee may have attributed different weights to the various factors. The Independent Trustees also discussed the proposed approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
In considering whether to approve the renewal of the Agreements with respect to each Fund, the Board reviewed and analyzed the factors it deemed relevant, including: (a) the nature, extent and quality of the services provided to the Fund by VAIA and the Subadviser; (b) the performance of the Fund as compared to an appropriate peer group and an appropriate index; (c) the level and method of computing each Fund’s advisory and subadvisory fees, and comparisons of the Funds’ advisory fee rates and total expenses with those of a group of funds with similar investment objective(s); (d) the profitability of VAIA under the Advisory Agreement; (e) any “fall-out” benefits to VAIA, the Subadviser and their affiliates (i.e., ancillary benefits realized by VAIA, the Subadviser or their affiliates from VAIA’s or the Subadviser’s relationship with the Trust); (f) the anticipated effect of growth in size on each Fund’s performance and expenses; (g) fees paid to VAIA and the Subadviser by comparable accounts, as applicable; (h) possible conflicts of interest; and (i) the terms of the Agreements.
Nature, Extent and Quality of Services
The Trustees received in advance of the Meetings information provided by VAIA and the Subadviser, including completed questionnaires, concerning a number of topics, including, among other items, such company’s investment philosophy, investment process and strategies, resources and personnel, operations, compliance structure and procedures, and overall performance. The Trustees noted that the Funds are managed using a “manager of managers” structure that generally involves the use of one or more subadvisers to manage some or all of a Fund’s portfolio. Under this structure, VAIA is responsible for the management of the Funds’ investment programs and for evaluating and selecting subadvisers on an ongoing basis and making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Advisory Agreement with VAIA, the Board considered VAIA’s process for supervising and managing the Funds’ subadvisers, including (a) VAIA’s ability to select and monitor the subadvisers; (b) VAIA’s ability to provide the services necessary to monitor subadviser’s(s’) compliance with the Funds’ respective investment objective(s), policies and restrictions as well as provide other oversight activities; and (c) VAIA’s ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (a) the experience and capability of VAIA’s management and other personnel; (b) the financial condition of VAIA, and whether it had the financial wherewithal to provide a high level and quality of services to the Funds; (c) the quality of VAIA’s own regulatory and legal compliance policies, procedures and systems; (d) the nature, extent and quality of administrative, transfer agency and other services provided by VAIA and its affiliates to the Funds; (e) VAIA’s supervision of the Funds’ other service providers; and (f) VAIA’s risk management processes. It was noted that affiliates of VAIA serve as administrator, transfer agent and distributor of the Funds. The Board also took into account its knowledge of VAIA’s management and the quality of the performance of VAIA’s duties through Board meetings, discussions and reports during the preceding
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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS
STONE HARBOR EMERGING MARKETS BOND FUND, VIRTUS STONE HARBOR EMERGING MARKETS DEBT INCOME FUND AND VIRTUS STONE MARKET LOCAL MARKETS FUND
(each a “FUND” and collectively, the “FUNDS”)
BY THE BOARD OF TRUSTEES (Continued)
year, as well as information from the Trust’s Chief Compliance Officer regarding the Funds’ compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act.
With respect to the services provided by the Subadviser, the Board considered information provided to the Board by the Subadviser, as well as information provided throughout the past year. With respect to the Subadvisory Agreement, the Board noted that the Subadviser provided portfolio management, compliance with the Funds’ investment policies and procedures, compliance with applicable securities laws and assurances thereof. The Board also noted that VAIA’s and the Subadviser’s management of the Funds is subject to the oversight of the Board and must be carried out in accordance with the investment objective(s), policies and restrictions set forth in the Funds’ prospectuses and statement of additional information. In considering the renewal of the Subadvisory Agreement, the Board also considered the Subadviser’s investment management process, including (a) the experience and capability of the Subadviser’s management and other personnel committed by the Subadviser to the Funds; (b) the financial condition of the Subadviser; (c) the quality of the Subadviser’s regulatory and legal compliance policies, procedures and systems; and (d) the Subadviser’s brokerage and trading practices, including with respect to best execution and soft dollars. The Board also took into account the Subadviser’s risk assessment and monitoring process. The Board noted the Subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate.
After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by VAIA and the Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would continue to provide a high quality of investment services to the Funds.
Investment Performance
The Board considered performance reports and discussions at Board meetings throughout the year, as well as a report for the Funds prepared by Broadridge (the “Broadridge Report”), an independent third-party provider of investment company data, furnished in connection with the contract renewal process. The Broadridge Report presented each Fund’s performance relative to a peer group of other mutual funds (the “Performance Universe”) and relevant indexes, as selected by Broadridge. The Board also considered performance information presented by management and took into account management’s discussion of the same, including the effect of market conditions on each Fund’s performance. The Board noted that it also reviews on a quarterly basis detailed information about both the Funds’ performance results and portfolio composition, as well as the Subadviser’s investment strategy(ies). The Board noted VAIA’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadviser. The Board also noted the Subadviser’s performance record with respect to each Fund. The Board was mindful of VAIA’s focus on the Subadviser’s performance and noted VAIA’s performance in monitoring and responding to any performance issues with respect to the Funds. The Board also took into account its discussions with management regarding factors that contributed to the performance of each Fund.
The Board considered, among other performance data, the information set forth below with respect to the performance of each Fund for the period ended March 31, 2023.
Virtus Stone Harbor Emerging Markets Bond Fund. The Board noted that the Fund outperformed the median of its Performance Universe for the 1-, 3-, 5- and 10-year periods. The Board also noted that the fund underperformed its benchmark for the 1-, 5- and 10-year periods and outperformed its benchmark for the 3-year period.
Virtus Stone Harbor Emerging Markets Debt Income Fund. The Board noted that the Fund underperformed the median of its Performance Universe for the 1-, 3- and 5-year periods and outperformed the median for the 10-year period. The Board also noted that the fund underperformed its benchmark for the 1-, 5- and 10-year periods and outperformed its benchmark for the 3-year period.
Virtus Stone Market Local Markets Fund. The Board noted that the Fund underperformed the median of its Performance Universe for the 1-, 3-, 5- and 10-year periods. The Board also noted that the fund underperformed its benchmark for the 1-, 5- and 10-year periods and outperformed its benchmark for the 3-year period.
After reviewing these and related factors, including factors discussed with respect to any underperformance, the Board concluded that each Fund’s overall performance was satisfactory.
Management Fees and Total Expenses
The Board considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons of each Fund’s contractual and net management fee and net total expense level to those of its peer
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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS
STONE HARBOR EMERGING MARKETS BOND FUND, VIRTUS STONE HARBOR EMERGING MARKETS DEBT INCOME FUND AND VIRTUS STONE MARKET LOCAL MARKETS FUND
(each a “FUND” and collectively, the “FUNDS”)
BY THE BOARD OF TRUSTEES (Continued)
universe (the “Expense Universe”) and ranked according to quintile (the first quintile being lowest and, therefore, best in these expense component rankings, and fifth being highest and, therefore, worst in these expense component rankings). In comparing each Fund’s net management fee to that of comparable funds, the Board noted that in the materials presented by management such fee was comprised of advisory and administration fees. The Board also noted that all of the Funds had expense caps in place to limit the total expenses incurred by the Funds and their shareholders. The Board also noted that the subadvisory fees were paid by VAIA out of its advisory fees rather than paid separately by the Funds. In this regard, the Board took into account management’s discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee retained by VAIA after payment of the subadvisory fee. The Board also took into account the size of each of the Funds and the impact on expenses and economies of scale. The Subadviser provided, and the Board considered, fee information of comparable accounts managed by the Subadviser, as applicable.
In addition to the foregoing, the Board considered, among other data, the information set forth below with respect to each Fund’s fees and expenses. In each case, the Board took into account management’s discussion of each Fund’s expenses, including the type and size of the Fund relative to the other funds in its Expense Universe. The Trustees considered the Funds’ expenses in connection with the review of Fund performance.
Virtus Stone Harbor Emerging Markets Bond Fund. The Board considered that the Fund’s net management fee was in the first quintile of the Expense Universe and net total expenses after waivers were in the fifth quintile of the Expense Universe.
Virtus Stone Harbor Emerging Markets Debt Income Fund. The Board considered that the Fund’s net management fee was in the third quintile of the Expense Universe and net total expenses after waivers were in the second quintile of the Expense Universe.
Virtus Stone Market Local Markets Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were each in the fourth quintile of the Expense Universe.
The Board concluded that the advisory and subadvisory fees for each Fund, including with any proposed amendments, were fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.
Profitability
The Board also considered certain information relating to profitability that had been provided by VAIA. In this regard, the Board considered information regarding the overall profitability, as well as on a fund-by-fund basis, of VAIA for its management of the Funds, as well as its profits and those of its affiliates for managing and providing other services to the Trust, such as distribution, transfer agency and administrative services provided to the Funds by VAIA affiliates. In addition to the fees paid to VAIA and its affiliates, including the Subadviser, the Board considered any other benefits derived by VAIA or its affiliates from their relationships with the Funds. The Board reviewed the methodology used to allocate costs to each Fund, taking into account the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. The Board concluded that the profitability to VAIA and its affiliates from each Fund was reasonable in light of the quality of the services rendered to the Funds by VAIA and its affiliates as well as other factors.
In considering the profitability to the Subadviser in connection with its relationship to the Funds, the Board noted that the fees under the Subadvisory Agreement are paid by VAIA out of the fees that VAIA receives under the Advisory Agreement, so that Fund shareholders are not directly impacted by those fees. In considering the reasonableness of the fees payable by VAIA to the Subadviser, the Board noted that, because the Subadviser is an affiliate of VAIA, such profitability might be directly or indirectly shared by VAIA. For each of the above reasons, the Board concluded that the profitability to the Subadviser and its affiliates from their relationship with the Funds was not a material factor in approval of the Subadvisory Agreement.
Economies of Scale
The Board received and discussed information concerning whether VAIA realizes economies of scale as the Funds’ assets grow. The Board noted that the expense caps were also in place for all of the Funds. The Board also took into account management’s discussion of each Fund’s management fee and subadvisory fee structure. The Board also took into account the current sizes of the Funds. The Board also noted that VAIA had agreed to implement an extension of each Fund’s expense cap through April 7, 2025. The Board then concluded that no changes to the advisory fee structure of the Funds with respect to economies of scale were necessary at this time. The Board noted that VAIA and the Funds may realize certain economies of scale if the assets of the Funds were to increase, particularly in relationship to certain fixed costs, and that shareholders of the Funds would have an opportunity to benefit from these economies of scale.
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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS
STONE HARBOR EMERGING MARKETS BOND FUND, VIRTUS STONE HARBOR EMERGING MARKETS DEBT INCOME FUND AND VIRTUS STONE MARKET LOCAL MARKETS FUND
(each a “FUND” and collectively, the “FUNDS”)
BY THE BOARD OF TRUSTEES (Continued)
For similar reasons as stated above with respect to the Subadviser’s profitability, and based upon the current sizes of the Funds managed by the Subadviser, the Board concluded that the potential for economies of scale in the Subadviser’s management of the Funds was not a material factor in the approval of the Subadvisory Agreement at this time.
Other Factors
The Board considered other benefits that may be realized by VAIA and the Subadviser and their affiliates from their relationships with the Funds. Among them, the Board recognized that VP Distributors, LLC, an affiliate of VAIA and the Subadviser, serves as the distributor for the Trust, and, as such, receives payments pursuant to Rule 12b-1 from the Funds to compensate it for providing selling activities, which could lead to growth in the Trust’s assets and corresponding benefits from such growth, including economies of scale. The Board noted that an affiliate of VAIA and the Subadviser also provides administrative and transfer agency services to the Trust. The Board noted management’s discussion of the fact that, while the Subadviser is an affiliate of VAIA, there are no other direct benefits to the Subadviser or VAIA in providing investment advisory services to the Funds, other than the fees to be earned under the applicable Agreement. There may be certain indirect benefits gained, including to the extent that serving the Funds could provide the opportunity to provide advisory services to additional portfolios of the Trust or certain reputational benefits.
Conclusion
Based on all of the foregoing considerations, the Board, including a majority of the Independent Trustees, determined that approval of each Agreement, as amended, was in the best interests of each applicable Fund and its respective shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements, as amended, with respect to each Fund.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program (the “Program”) to govern the Funds’ approach to managing liquidity risk, which is the risk that a Fund would not be able to meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Program is overseen by the Adviser as the Funds’ Liquidity Risk Management Program Administrator (the “Program Administrator”), and the Program’s principal objectives include assessing, managing and periodically reviewing each Fund’s liquidity risk, based on factors specific to the circumstances of the Funds. Assessment and management of a Fund’s liquidity risk under the Program take into consideration certain factors, such as the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flow projections during both normal and reasonably foreseeable stressed conditions, and its cash and cash-equivalent holdings and access to other funding sources. As required by the rule, the Program includes policies and procedures for classification of Fund portfolio holdings in four liquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings of illiquid investments.
At a meeting of the Board held on May 22-24, 2023, the Board received a report from the Program Administrator addressing the operation and management of the Program for calendar year 2022 (the “Review Period”). The Program Administrator’s report noted that for the Review Period, the Program Administrator believed that the Program was implemented and operated effectively in all material respects and that existing procedures, controls and safeguards were appropriately designed to enable the Program Administrator to administer the Program in compliance with Rule 22e-4. The Program Administrator’s report noted that during the Review Period, there were no events that created liquidity related concerns for the Funds. The Program Administrator’s report further noted that no significant or reportable changes had been made to the Program during the Review Period and no material changes were made to the Program as a result of the Program Administrator’s annual review.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to a Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in that Fund may be subject.
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Virtus Stone Harbor Emerging Markets Debt Allocation Fund
and Virtus Stone Harbor High Yield Bond Fund,
each a series of Virtus Opportunities Trust
Supplement dated December 14, 2023, to the Summary Prospectuses and the Virtus Opportunities Trust Statutory Prospectus and Statement of Additional Information (“SAI”) pertaining to the funds named above, each dated September 28, 2023, as supplemented
IMPORTANT NOTICE TO INVESTORS
Effective December 13, 2023, the Virtus Stone Harbor Emerging Markets Debt Allocation Fund and Virtus Stone Harbor High Yield Bond Fund (the “Funds”) were liquidated pursuant to their Plans of Liquidation. The Funds have ceased operations and are no longer available for sale. Accordingly, the Funds’ Summary Prospectuses are no longer valid, nor are references to the Funds in the Virtus Opportunities Trust Statutory Prospectus and SAI.
Investors should retain this supplement with the Prospectuses and SAI for future reference.
VOT 8470 SHIP EMDA and HYB Funds Closed (12/2023)


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VIRTUS OPPORTUNITIES TRUST
101 Munson Street
Greenfield, MA 01301-9668
Trustees
Philip R. McLoughlin, Chairman
George R. Aylward
Donald C. Burke
Deborah A. DeCotis
F. Ford Drummond
Sidney E. Harris
John R. Mallin
Connie D. McDaniel
Geraldine M. McNamara
R. Keith Walton
Brian T. Zino
Principal Officers
George R. Aylward, President
Peter Batchelar, Senior Vice President
W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer
Timothy Branigan, Vice President and Fund Chief Compliance Officer
Jennifer Fromm, Vice President, Chief Legal Officer, Counsel and Secretary
Julia R. Short, Senior Vice President
Richard W. Smirl, Executive Vice President
Investment Adviser
Virtus Alternative Investment Advisers, Inc.
One Financial Plaza
Hartford, CT 06103-2608
Principal Underwriter
VP Distributors, LLC
One Financial Plaza
Hartford, CT 06103-2608
Administrator and Transfer Agent
Virtus Fund Services, LLC
One Financial Plaza
Hartford, CT 06103-2608
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286-1048
How to Contact Us
Mutual Fund Services 1-800-243-1574
Adviser Consulting Group 1-800-243-4361
Website Virtus.com
 
Important Notice to Shareholders
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.


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P.O. Box 534470
Pittsburgh, PA 15253-4470
For more information about Virtus Funds,
please contact us at 1-800-243-1574, or visit Virtus.com.
8458 1-24


  (b)

Not applicable.

 

Item 2.

Code of Ethics.

Not applicable.

 

Item 3.

Audit Committee Financial Expert.

Not applicable.

 

Item 4.

Principal Accountant Fees and Services.

Not applicable.

 

Item 5.

Audit Committee of Listed Registrants.

Disclosure not required for open-end management investment companies.

 

Item 6.

Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form.

 

(b)

Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Disclosure not required for open-end management investment companies.

 

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.


Item 11.

Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies.

 

Item 13.

Exhibits.

 

(a)(1)   Not applicable.
(a)(2)   Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(2)(1)   Disclosure not required for open-end management investment companies.
(a)(2)(2)   There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b)   Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)   Virtus Opportunities Trust

 

By (Signature and Title)*  

/s/ George R. Aylward

  George R. Aylward, President                 
  (principal executive officer)

 

Date   1/28/24

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/s/ George R. Aylward

  George R. Aylward, President                 
  (principal executive officer)

 

Date   1/28/24

 

By (Signature and Title)*  

/s/ W. Patrick Bradley

  W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
  (principal financial officer)

 

Date   1/28/24

 

* 

Print the name and title of each signing officer under his or her signature.


ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

CERTIFICATION PURSUANT TO SECTION 302

CERTIFICATION PURSUANT TO SECTION 906