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Investment Opportunity

The Virtus Equity Trend Fund strives to participate in rising markets while placing an emphasis on preserving capital during major market declines. The Fund has an investment objective of long-term capital appreciation. It aims to deliver attractive returns with lower volatility, beta, and correlation over full market cycles.

The Virtus Equity Trend Fund employs relative strength analysis provided by Dorsey, Wright & Associates (DWA) to construct a risk-managed portfolio of U.S. equities, prioritizing market segments with the strongest price momentum. Cash equivalents are used for defensive purposes as the model indicates.

Click here to learn more about Dorsey, Wright & Associates.

Effective May 11, 2015 this fund changed its strategy and its name. This document reflects the new investment process.

There is no relationship between Dorsey Wright and Virtus other than a license by Dorsey Wright to Virtus of certain Dorsey Wright trademarks and trade names, and the Dorsey Wright technical analysis (“Technical Analysis”). The Technical Analysis has been created and developed by Dorsey Wright without regard to and independently of Virtus, its business, its development of this product, and/or any prospective investor. The licensing of any Technical Analysis to Virtus is not an offer to purchase or sell, or a solicitation or an offer to buy any securities. A determination that any portion of an investor's portfolio should be devoted to any product developed by Virtus is a determination made solely by the investment advisor serving the investor or the investor himself, not Dorsey Wright or Virtus.

Fund Risks

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

Allocation: The fund's exposure to different asset classes may not be optimal for market conditions at a given time. Asset allocation does not guarantee a profit or protect against a loss in declining markets.

Prospectus: For additional information on risks, please see the fund's prospectus.

Key Stats (as of 7/2/2015)

Inception: 7/1/2010
Ticker: VAPAX
CUSIP: 92828R255
Fund No: 1873
Net Assets by Fund: $2,568,999,519
Net Assets by Class: $708,612,672

Management Team

Warun Kumar
Warun Kumar Virtus Investment Advisers, Inc.

Industry start date: 1993

Start date with Fund: 2015

Amy Robinson
Amy Robinson Euclid Advisors LLC

Industry start date: 1979

Start date with Fund: 2010

Dorsey, Wright & Associates, LLC

Dorsey Wright's expertise, and the cornerstone of the firm's investment approach, is technical analysis. The firm’s research objectively and methodically evaluates a wide array of asset classes, sectors, sub-industry groups, and securities on the basis of price momentum. The proprietary Relative Strength price momentum model is used to rank and select market components for the Funds.

Virtus Investment Advisers, Inc.

Virtus Investment Advisers portfolio management responsibilities include model specification, portfolio construction, model monitoring, and governance. They are responsible for maintaining the daily risk level and absolute price momentum assessment for the Funds.

Euclid Advisors LLC

The Virtus Trend Funds leverage the trading and operational expertise of Euclid Advisors.

Morningstar Ratings

Overall Rating Non Load-Waived

As of 5/29/2015 the Fund was rated 1 stars out of 1369 funds within the Large Blend category for the 3-year period.

Overall Rating Load-Waived

As of 5/29/2015 the Fund was rated 1 stars out of 1369 funds within the Large Blend category for the 3-year period.

Strong ratings are not indicative of positive fund performance.

Average Annual Total Returns

Monthly Performance (%) (as of 6/30/2015)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -1.62 -5.42 -9.76 8.80 NA NA 10.90
POP -7.28 -10.85 -14.95 6.67 NA NA 9.60
Quarterly Performance (%) (as of 6/30/2015)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -1.62 -5.42 -9.76 8.80 NA NA 10.90
POP -7.28 -10.85 -14.95 6.67 NA NA 9.60
Index 0.28 1.23 7.42 17.31 17.34 7.89 NA

Index: S&P 500® Index
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

Sales Charge and Expense

POP (Public Offering Price) performance reflects the deduction of the maximum sales charge of 5.75%. A contingent deferred sales charge of 1% may be imposed on certain redemptions within 18 months on purchases on which a finder’s fee has been paid.

Fund class operating expenses are 1.51%.

Risk Statistics3 (as of 6/30/2015)

  Fund Index
R2 0.73 1.00
Beta 0.83 1.00
Alpha -4.92 0.00
Std Dev 8.23 8.43
Index: S&P 500® Index

Daily Price (as of 7/2/2015)

NAV Change ($)
12.83 -0.03
POP Change ($)
13.61 -0.03

Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800- 243-4361 or visit www.virtus.com to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.


Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. NAV returns do not include the effect of any applicable sales charges. POP and w/CDSC returns include the effect of maximum applicable sales charges.

Returns for periods of less than one year are cumulative total returns.

1 Yields/Distributions: Distribution Yield (at NAV) is calculated by (a) annualizing the latest distribution for fixed income funds or funds less than 1 year old (b) summing all distributions over the preceding 12 months for all other funds, and dividing the NAV on the last business date of the period. SEC Yield represents the net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's public offering share price at the end of the 30-day period.  Gross SEC Yield represents the yield if there were no expense reimbursements.

2 Distribution History: Distributions are represented on a cash basis and may be reclassified at year end for tax purposes. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. STCG: Short Term Capital Gain, LTCG: Long Term Capital Gain

3 Risk Statistics:  R2 is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Beta is a quantitative measure of the volatility of a given portfolio to the overall market. Alpha is a risk adjusted measure of an investment's excess return relative to a benchmark. A positive Alpha indicates that the investment produced a return greater than expected for the risk (as measured by Beta) taken. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Risk Statistics are calculated using 36 monthly returns.

4 Characteristics: For Equity Funds:Trailing P/E: Per-share stock price divided by the latest12-months Earnings per Share; Price/Cash Flow: Per-share stock price divided by the per-share operating cash flow; Price/Book: Per-share stock price divided by the latest 12-month per-share Book Value; 3-Year EPS Growth Rate: Average of earnings per share growth for latest 3-year period. The 3-Year EPS Growth Rate is not a forecast of the fund's performance.

4 Characteristics: For Fixed Income Funds:  Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's duration is five years, a 1% increase in interest rates would result in a 5% decline in the fund's price. Similarly, a 1% decline in interest rates would result in a 5% gain in the fund's price.



Morningstar Disclosures: 
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for a variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in an investment category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. Ratings are for the A Shares as shown only; other share classes bear different fees and expenses, which affect performance.

Load-waived A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load.

© 2013 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.