STONE HARBOR EMERGING MARKETS TOTAL INCOME FUND ANNOUNCEMENT

Rhea-AI Summary

Stone Harbor Investment Partners continues to advise the Stone Harbor Emerging Markets Income Fund (EDF) and Stone Harbor Emerging Markets Total Income Fund (EDI) following its acquisition by Virtus Investment Partners on January 1, 2022. The day-to-day management remains unchanged under the new interim advisory agreement. Shareholders are asked to approve new advisory and sub-advisory agreements, detailed in a proxy statement filed with the SEC. Both Funds aim to maximize total returns through investments in emerging markets securities, though there are inherent risks.

Positive

• Stone Harbor stays as the adviser for the Funds post-acquisition.
• No changes in the personnel managing the Funds.
• Potential for increased resources and investment strategies from Virtus.

Negative

• The Funds face inherent risks from investing in emerging markets, including political and economic instability.

DENVER, Jan. 3, 2022 /PRNewswire/ -- Stone Harbor Investment Partners, LLC, which became an affiliated manager of Virtus Investment Partners, Inc. effective January 1, 2022, will remain as adviser to its registered funds, including the Stone Harbor Emerging Markets Income Fund (NYSE: EDF) and Stone Harbor Emerging Markets Total Income Fund (NYSE: EDI) (together, the "Funds") pursuant to an interim advisory agreement between Stone Harbor and the Funds.

The acquisition of Stone Harbor by Virtus is not expected to result in a change to the current personnel responsible for day-to-day portfolio management of the Funds.  

Shareholders of the Funds have been asked to approve new advisory agreements with Virtus Alternative Investment Advisers, Inc. and sub-advisory agreements with Stone Harbor. Additional information on the advisory and sub-advisory arrangements have been provided to shareholders and can be found in the proxy statement recently filed with the U.S. Securities and Exchange Commission.

Each Fund's primary investment objective is to maximize total return, which consists of income and capital appreciation on its investments in emerging markets securities. There is no assurance that a Fund will achieve its investment objective.

For more information about the Funds, call 877.206.0791 or visit the Funds' website, www.shiplpcef.com.

About Stone Harbor
Stone Harbor Investment Partners, LLC is a global institutional fixed-income investment manager specializing in credit and asset allocation strategies. The firm manages institutional clients' assets in a range of investment strategies including emerging markets debt, global high yield, bank loans, as well as multi-sector credit products including unconstrained and total return approaches. The firm's investment strategies are based on fundamental insights, derived from a combination of proprietary research and the in-depth knowledge and specialized experience of the firm's team. Founded in 2006, it is based in New York City with additional offices in London and Singapore.

About Virtus Investment Partners
Virtus Investment Partners, Inc. is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand.

Fund Risks
The Stone Harbor Emerging Markets Total Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol EDI. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. An investment in the Fund involves risks, including loss of principal. Emerging markets securities are subject to greater risks arising from political or economic instability, nationalization or confiscatory taxation, currency exchange restrictions and an issuer's unwillingness or inability to make principal or interest payments on its obligations.

The Fund is "non-diversified," which means that it can invest a higher percentage of its assets in any one issuer or in a smaller number of issuers than a diversified fund. Being non-diversified may magnify the Fund's losses from adverse events affecting a particular issuer. THE FUND SHOULD BE CONSIDERED AS ONLY ONE ELEMENT OF A COMPLETE INVESTMENT PROGRAM. AN INVESTMENT IN THIS FUND SHOULD BE CONSIDERED SPECULATIVE. CLOSED-END FUNDS FREQUENTLY TRADE AT A DISCOUNT TO THEIR NET ASSET VALUES.

Member firm ALPS Distributors, Inc.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

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SOURCE Stone Harbor

FAQ

What is the recent update for Stone Harbor Emerging Markets Income Fund (EDF)?

Stone Harbor Investment Partners remains the adviser for EDF following its acquisition by Virtus Investment Partners.

What does the acquisition of Stone Harbor mean for Stone Harbor Emerging Markets Total Income Fund (EDI)?

The acquisition is not expected to change the management of EDI, as the current personnel will continue the day-to-day portfolio management.

What should shareholders know about the new advisory agreements for EDF and EDI?

Shareholders are asked to approve new advisory agreements with Virtus Alternative Investment Advisers and sub-advisory agreements with Stone Harbor.

What is the investment objective of the Stone Harbor Funds?

The primary investment objective is to maximize total return, which includes both income and capital appreciation from emerging markets securities.

What risks are associated with investing in Stone Harbor Funds?

Investing in the Funds involves risks such as loss of principal and greater exposure to political and economic instability in emerging markets.