Individual Investors

Products & Performance | VIT | Strategic Allocation Series

Back to Products
Print

Investment Opportunity

Diversified across stocks, bonds, and cash, the portfolio's tactical allocation approach seeks to generate a combination of capital appreciation and income. For the fund's equity allocation, the portfolio managers employ a growth at a reasonable price philosophy in the security selection process. The fixed income manager seeks to generate high current income and total return by applying extensive credit research and a time-tested approach to capitalize on opportunities across undervalued sectors of the bond market.

Fund Risks

The market price of equity securities may be 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.

Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a security may fail to make payments in a timely manner. Values of debt securities may rise and fall in response to changes in interest rates. This risk may be enhanced with longer-term maturities.

Changes in interest rates can cause both extension and prepayment risks for asset and mortgage-backed securities. These securities are also subject to risks associated with the repayment of underlying collateral.

There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

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

There may be no ready market for loan participation interests. The fund may have to sell the interests at a substantial discount. Such interests are subject to the credit risk of the underlying corporate borrower.

Key Stats (as of 4/23/2014)

Inception: 9/17/1984
CUSIP: 92829L406
Net Assets by Fund: $134,844,178
Net Assets by Class: $134,844,178

Management Team

Carlton Neel
Carlton Neel Euclid Advisors LLC

Industry start date: 1990

Start date with Series: 2009

David Dickerson
David Dickerson Euclid Advisors LLC

Industry start date: 1993

Start date with Series: 2009

David L. Albrycht, CFA
David L. Albrycht, CFA Newfleet Asset Management

Industry start date: 1985

Start date with Series: 2007

Newfleet Asset Management

Newfleet leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction, avoiding interest rate bets and remaining duration neutral to each strategy's stated benchmark.

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 742 funds, 4 stars out of 666 funds and 3 stars out of 437 funds within the Moderate Allocation category for the 3-, 5- and 10 year periods, respectively.

Strong ratings are not indicative of positive fund performance.

Average Annual Total Returns

Monthly Performance (%) (as of 3/31/2014)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 2.57 2.57 14.32 9.96 16.02 6.45 9.47
Quarterly Performance (%) (as of 3/31/2014)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 2.57 2.57 14.32 9.96 16.02 6.45 9.47
Index 1.87 1.87 12.72 10.40 14.65 6.52 NA

3 Mon., YTD and 1 Year performance is not annualized.

Index: Composite: 60% S&P 500® / 40% Barclays U.S. Aggregate Bond
The composite index consists of 60% S&P 500® Index and 40% Barclays U.S. Aggregate Bond 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 Barclays U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. 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

Fund class operating expenses are 0.98% and gross operating expenses are 1.04%.

Operating expenses reflect a contractual expense reimbursement in effect through 04/30/2015.

Risk Statistics3 (as of 3/31/2014)

  Fund Index
R2 0.93 1.00
Beta 1.36 1.00
Alpha -3.76 0.00
Std Dev 10.10 7.18
Index: Composite: 60% S&P 500® / 40% Barclays U.S. Aggregate Bond

Daily Price (as of 4/23/2014)

NAV Change ($)
14.77 0.01

Top Holdings (% Fund)
(as of 3/31/2014)

Macy's Inc 1.35
CF Industries Holdings, Inc. 1.30
Fifth Third Bancorp 1.30
Abbott Laboratories 1.28
EMC Corporation 1.27
U.S. Bancorp 1.26
Valero Energy Corporation 1.25
Union Pacific Corporation 1.24
Freeport-McMoRan Copper & Gold Inc. 1.24
Alaska Air Group, Inc. 1.24

Top Sectors (% Equity)
(as of 3/31/2014)

Financials 20.40
Consumer Discretionary 19.22
Information Technology 15.85
Industrials 14.20
Energy 12.17

Characteristics4
(as of 3/31/2014)

Avg Weighted Market Cap (bn) $69.90
Median Market Cap (bn) $28.67
Trailing P/E 14.93x
Price-to-Cash Flow 12.77
Price-to-Book Value 2.81
3-Year EPS Growth Rate 23.00

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 742 funds, 4 stars out of 666 funds and 3 stars out of 437 funds within the Moderate Allocation category for the 3-, 5- and 10 year periods, respectively.

Strong ratings are not indicative of positive fund performance.

The investments for the Series are managed by the same portfolio manager(s) who manage one or more other funds that have similar names, investment objectives and investment styles as the Series. You should be aware that the Series is likely to differ from the other mutual funds in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Series can be expected to vary from those of the other mutual funds.

Shares of the separate Series of Virtus Variable Insurance Trust are sold only through the currently effective prospectuses and are not available to the general public. Shares of the VIT Series may be purchased only by life insurance companies to be used with their separate accounts which fund variable annuity and variable life insurance policies or qualified retirement plans and are also available as an underlying investment fund for certain qualified retirement plans. The performance information for the Series does not reflect fees and expenses of the insurance companies. If such fees and expenses were deducted, performance would be lower.

Please carefully consider the investment objectives, risks, charges, and expenses of the Series before investing. For this and other information about any Virtus Variable Insurance Trust Series, call 1-800-367-5877 or visit Virtus.com for a prospectus and/or summary prospectus. Read it 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.

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

1 Yields/Distributions: Distribution Yield (at NAV) is calculated by annualizing the latest month's distribution and dividing by the NAV on the last business day of the period. SEC Yield represents the net investment income earned by a fund over a 30-day period (7-day period for Money Market Funds), expressed as an annual percentage rate based on the fund's public offering share price at the end of the 30-day period (7-day period for Money Market Funds).

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.

Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.

Distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.