12/13

NIE Flat Amid Blocked Kroger-Albertsons Merger and Economic Concerns

The Virtus Equity & Convertible Income Fund (NIE) experienced a slight decline in its price, influenced by broader market conditions and specific developments in the sectors it tracks. The recent decision by a Federal District Court Judge to block the merger between Albertsons Companies, Inc. and The Kroger Co. has created ripples in the retail sector, impacting investor sentiment. This decision, handed down on December 12, 2024, has significant implications for the competitive landscape in the grocery market, with Walmart emerging as a key beneficiary. The ruling has introduced uncertainty, affecting stocks within the consumer staples sector, which is a component of the NIE's underlying assets.

Additionally, macroeconomic factors have played a role in the ETF's performance. The U.S. Producer Price Index (PPI) and jobless claims data released on December 12, 2024, have contributed to a cautious market environment. The 10-year Treasury note yield increased by approximately 3 basis points, reflecting concerns over inflation and economic growth. These factors have collectively influenced the equity and convertible securities markets, which are integral to the NIE's portfolio.

The Virtus Equity & Convertible Income Fund closed at $24.39, marking a 0.16% decrease from the previous close.