The Virtus Equity & Convertible Income Fund (NIE) is experiencing a notable decline, driven by a confluence of factors impacting its underlying assets. The fund, which invests in a mix of equity and convertible securities, is facing headwinds from broader market conditions. The release of November retail sales data, alongside the Federal Reserve's interest-rate-setting meeting, is creating uncertainty in the financial markets. Additionally, Nucor's warning of a decline in earnings due to lower steel prices is contributing to a cautious outlook for industrial sectors, which may be affecting the equity components of the fund.
Furthermore, the global economic landscape is being shaped by China's fiscal policy, as the country plans a record 4% fiscal deficit-to-GDP ratio for the coming year while maintaining a 5% GDP growth target. This move could have implications for global markets, influencing investor sentiment and potentially impacting the convertible securities market. The combination of these economic indicators and corporate earnings forecasts is creating a challenging environment for funds like NIE that are exposed to both equity and convertible markets.
The Virtus Equity & Convertible Income Fund (NIE) is down 9.74% in pre-market hours on Tuesday, December 17, falling to $22.06 as of 7:45 AM ET.