SCHEDULE: Sit Investment Associates Discloses 18.2% Stake in Virtus Fund

Sit Investment Associates and its subsidiary have reported a significant 18.2% beneficial ownership in Virtus Global Multi-Sector Income Fund, held in the ordinary course of business.

Summary

• Sit Investment Associates, Inc. and its subsidiary, Sit Fixed Income Advisors II, LLC, have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership in Virtus Global Multi-Sector Income Fund.
• The reporting entities collectively beneficially own 2,057,760 shares of common stock in Virtus Global Multi-Sector Income Fund.
• This ownership represents 18.2% of the total class of securities outstanding.
• The ownership percentage is calculated based on 11,313,094 shares of common stock outstanding as of May 31, 2025, as reported by the Issuer.
• Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC exercise shared voting power and shared dispositive power over all 2,057,760 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 7

Explanation: The disclosure of a substantial 18.2% beneficial ownership by a reputable investment adviser suggests a strong conviction in the Virtus Global Multi-Sector Income Fund, held in the ordinary course of business. This generally implies a positive view on the investment, even if it's a passive holding.

Positives

• Sit Investment Associates, a registered investment adviser, holds a substantial 18.2% stake, indicating a significant investment and potential confidence in Virtus Global Multi-Sector Income Fund.
• The stated intent to hold the shares in the ordinary course of business suggests a passive, long-term investment perspective rather than an activist agenda.

Risks

• The filing explicitly states that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, which mitigates the risk of activist investor intervention or hostile takeover attempts.

Future Outlook

The filing does not provide any forward-looking statements or guidance from the issuer or the reporting entities beyond their stated intent for holding the shares in the ordinary course of business.

Management Comments

• "The undersigned agree that the statement on this Schedule 13G... shall be, filed on behalf of each of them pursuant to and in accordance with the provisions of Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended." (Roger J. Sit, Chairman & CEO)
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11." (Paul E. Rasmussen, Vice President)

Industry Context

This Schedule 13G filing indicates a significant institutional investment in Virtus Global Multi-Sector Income Fund by Sit Investment Associates, a registered investment adviser. Such filings are standard disclosures required when an entity acquires more than 5% beneficial ownership of a company's stock, signaling a notable position by a professional money manager within the investment fund sector.

Stakeholder Impact

• Shareholders: The disclosure of a large institutional holder may provide a sense of stability and validation for existing shareholders, potentially influencing market perception positively.
• Management: Management of Virtus Global Multi-Sector Income Fund is aware of a significant, passive institutional investor, which can influence strategic decisions, though the filing explicitly states no intent to influence control.

Next Steps

• Sit Investment Associates and Sit Fixed Income Advisors II, LLC will continue to hold and manage these shares in client accounts.
• Further amendments to this Schedule 13G (or a Schedule 13D if investment intent changes) would be filed if their beneficial ownership percentage significantly changes or if their investment intent shifts.

Key Dates

Recommendation

The filing indicates a significant, passive institutional stake by a professional investment advisor. While this suggests confidence in the fund, a Schedule 13G itself does not provide new operational or financial performance data to warrant a 'buy' or 'sell' recommendation. It primarily confirms a substantial existing position, making 'hold' a prudent recommendation for investors who might already be invested or considering the fund, pending further fundamental analysis.

Keywords

Virtus Global Multi-Sector Income Fund, Sit Investment Associates, Sit Fixed Income Advisors II, Schedule 13G, Beneficial Ownership, Investment Adviser, Common Stock, SEC Filing, Institutional Ownership