Virtus Diversified Income & Convertible Fund of Beneficial Interest
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$22.46
- Net Assets:$227.34 Million
- NAV:$21.64
- Premium3.79%
- Peer Rank:86 of 161
- Investment Rating:C
- Performance:C+
- RiskC
We rate Virtus Diversified Income & Convert at C. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund may be considered for investors seeking a Growth & Income strategy.
Total return ranks above peers over the last three years. The Virtus Diversified Income & Convert has returned an annual rate of 9.96% since inception. More recently, the fund has generated a total return of 13.79% in the last five years, 3.52% in the last three years, and 20.63% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 90% of them. It has also outpaced 53% of its competitors on a three year basis and 79% of them over the last year for the period ending 2/29/2024. On a year to date basis, ACV has returned 8.39%.
Downside risk has been above average. ACV has a draw down risk of -52.08%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 30.9%. This fund has experienced excessive volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $227.34 million, ACV maintains a high expense ratio compared to its Growth & Income peers of 3.91% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As ACV is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Virtus Diversified Income & Convert has been managed by Justin M. Kass for the last 9 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 13% of other fund managers.