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Investment Opportunity

Strong demand for U.S. energy infrastructure, including oil and gas pipelines, will continue to drive sizeable capital investment. Midstream Master Limited Partnerships (MLPs) and General Partners (GPs) are uniquely positioned to match producer supply with end-user demand. The Fund strives to generate attractive total returns by investing primarily in energy MLPs and GPs that own midstream oil and natural gas assets which are backed back by long-term, fee-based contracts. The Fund will be overweighted to GPs, which are well-positioned to capitalize on midstream M&A activity and may offer superior growth prospects to MLPs. Duff & Phelps' experienced MLP team will seek to utilize its deep fundamental, bottom-up approach to capture cash distributions and distribution growth opportunities across the U.S. energy value chain.

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.

MLPs: Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets.

Energy Sector Concentration: The fund's investments are concentrated in the energy sector and may present more risks than if the fund were broadly diversified over numerous sectors of the economy.

Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets.

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

Key Stats (as of 12/2/2016)

Inception: 9/9/2015
Ticker: VLPAX
CUSIP: 92835M729
Fund No: 2464
Net Assets by Fund: $5,350,101
Net Assets by Class: $244,720

Management Team

David D. Grumhaus, Jr.
David D. Grumhaus, Jr. Duff & Phelps Investment Management Co.

Industry start date: 1989

Start date with Fund: 2015

Charles Georgas, CFA
Charles Georgas, CFA Duff & Phelps Investment Management Co.

Industry start date: 1988

Start date with Fund: 2015

Duff & Phelps Investment Management Co.

Duff & Phelps Investment Management Co. offers an investment product mix comprised of Global Utilities, Real Estate and Infrastructure portfolios. The product mix emanated from the in-depth fundamental research expertise in income-producing securities that the firm established in 1932.

Average Annual Total Returns

Monthly Performance (%) (as of 11/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 5.12 27.15 13.02 NA NA NA 2.22
POP -0.92 19.84 6.52 NA NA NA -2.59
Quarterly Performance (%) (as of 9/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 8.03 27.53 12.37 NA NA NA 2.86
POP 1.82 20.20 5.91 NA NA NA -2.72
Index 1.07 15.94 12.74 -4.82 4.96 9.01 NA

Index: Alerian MLP Index
The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships (MLPs) that provides investors with an unbiased, comprehensive benchmark for this emerging asset class. The index, which is calculated using a float-adjusted, capitalization-weighted methodology, is disseminated real-time on a price-return basis (NYSE: AMZ) and on a total-return basis (NYSE:AMZX). 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 1.55% and gross operating expenses are 2.26%.

Operating expenses reflect a contractual expense reimbursement in effect through 03/01/2017.

Daily Price (as of 12/2/2016)

NAV Change ($)
9.99 0.06
POP Change ($)
10.60 0.06

Top Holdings (% Fund)
(as of 9/30/2016)

Kinder Morgan Inc Class P 5.19
Tallgrass Energy GP LP Class A 4.54
Enbridge Inc. 3.97
Williams Companies, Inc. 3.85
SemGroup Corporation Class A 3.77
Plains GP Holdings LP Class A 3.73
Targa Resources Corp. 3.68
ONEOK, Inc. 3.46
Spectra Energy Corp 3.36
Energy Transfer Partners, L.P. 3.12

Top Sectors (% Equity)
(as of 9/30/2016)

Petroleum Transportation & Storage 29.34
Diversified 16.47
Natural Gas Pipelines 15.03
Gathering/Processing 13.52
Downstream/Other 8.32

Ownership Structure (% Fund)
(as of 9/30/2016)

Midstream MLP 24.77
Pure Play General Partner 21.80
Embedded General Partner 20.82
Major Midstream Companies 12.66
MLP Affiliate & Other 9.41
Foreign LP 7.14
Exchange-Traded Note 2.60
Cash 0.80

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.

© 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.