Individual Investors

Products & Performance | Mutual Funds | Emerging Markets Equity Income (VEIAX)

Back to Products

Investment Opportunity

The fund offers exposure to dividend-paying, high-quality emerging markets equities. The subadvisor believes that investing in companies with the financial strength to maintain and grow their dividend payouts offers the opportunity to benefit from the inefficiency with which the market underprices the earnings potential of high-dividend paying companies.

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.

Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

Geographic Concentration: A fund that focuses its investments in a particular geographic location will be highly sensitive to financial, economic, political, and other developments affecting the fiscal stability of that location.

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.

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

Key Stats (as of 2/24/2017)

Inception: 9/5/2012
Ticker: VEIAX
CUSIP: 92828W700
Fund No: 1959
Net Assets by Fund: $4,165,216
Net Assets by Class: $785,071

Management Team

James Collery
James Collery KBI Global Investors Ltd.

Industry start date: 2001

Start date with Fund: 2012

David Hogarty
David Hogarty KBI Global Investors Ltd.

Industry start date: 1991

Start date with Fund: 2012

John Looby
John Looby KBI Global Investors Ltd.

Industry start date: 1990

Start date with Fund: 2014

Ian Madden
Ian Madden KBI Global Investors Ltd.

Industry start date: 2000

Start date with Fund: 2012

Gareth Maher
Gareth Maher KBI Global Investors Ltd.

Industry start date: 1987

Start date with Fund: 2012

Massimiliano Tondi CFA, FRM
Massimiliano Tondi CFA, FRM KBI Global Investors Ltd.

Industry start date: 2004

Start date with Fund: 2014

KBI Global Investors Ltd.

KBI Global Investors Ltd. Believes that high-quality emerging markets companies that pay above-average dividends create an opportunity for greater total return with the potential for less risk.

Morningstar Ratings

Overall Rating

As of 1/31/2017 the Fund was rated 2 stars out of 607 funds within the Diversified Emerging Mkts category for the 3-year period.

Strong ratings are not indicative of positive fund performance.

Average Annual Total Returns

Monthly Performance (%) (as of 1/31/2017)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -0.65 2.91 20.25 -0.61 NA NA -0.27
POP -6.36 -3.00 13.34 -2.56 NA NA -1.60
Quarterly Performance (%) (as of 12/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -3.89 11.49 11.49 -3.51 NA NA -0.93
POP -9.42 5.08 5.08 -5.40 NA NA -2.28
Index -4.16 11.19 11.19 -2.55 1.28 1.84 NA

Index: MSCI Emerging Markets Index (net)
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global emerging markets. The index is calculated on a total return basis with net 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.

The fund class gross expense ratio is 2.16%. The net expense ratio is 1.00%, which reflects a contractual expense reimbursement in effect through 01/31/2018.

Risk Statistics3 (as of 12/30/2016)

  Fund Index
R2 0.96 1.00
Beta 0.92 1.00
Alpha -1.26 0.00
Std Dev 15.07 16.07
Index: MSCI Emerging Markets Index (net)

Daily Price (as of 2/24/2017)

NAV Change ($)
9.25 -0.06
POP Change ($)
9.81 -0.07

Top Holdings (% Fund)
(as of 12/30/2016)

China Construction Bank Corporation Class H 4.01
Industrial and Commercial Bank of China Limited Class H 3.12
Taiwan Semiconductor Manufacturing Co., Ltd. 3.04
Infosys Limited 2.86
HCL Technologies Limited 2.78
Bank of China Limited Class H 1.91
Tata Consultancy Services Limited 1.75
Public Joint-Stock Company Gazprom Sponsored ADR 1.57
China Mobile Limited 1.50
Hyosung Corporation 1.48

Top Countries (% Invested Assets)
(as of 12/30/2016)

China 26.73
Taiwan 16.72
Brazil 10.14
Korea (south) 9.41
South Africa 9.25

Top Sectors (% Equity)
(as of 12/30/2016)

Financials 26.91
Information Technology 25.45
Consumer Discretionary 8.69
Energy 7.89
Industrials 6.81

(as of 12/30/2016)

Avg Weighted Market Cap (bn) $17.49
Median Market Cap (bn) $3.01
Trailing P/E 9.71x
Price-to-Cash Flow 8.95
Price-to-Book Value 2.12
3-Year EPS Growth Rate 8.37

Morningstar Ratings

Overall Rating

As of 1/31/2017 the Fund was rated 2 stars out of 607 funds within the Diversified Emerging Mkts category for the 3-year period.

Strong ratings are not indicative of positive fund performance.

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 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:
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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 managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2016 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.