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Investment Opportunity

The portfolio utilizes a Growth at a Reasonable Price style with macroeconomic and fundamental security analysis to identify the most attractive investment candidates. This portfolio provides exposure to the equity REITs market, which has historically had a lower correlation to traditional asset classes. Management believes the value of a REIT extends beyond the value of the underlying real estate. Through fundamental research, the series managers strive to uncover and exploit market inefficiencies. The team has been employing this same philosophy, process and style for over a decade.

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.

The fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.

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.

Because the fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a less concentrated fund.

Key Stats (as of 4/23/2014)

Inception: 5/1/1995
CUSIP: 92829L703
Net Assets by Fund: $99,404,041
Net Assets by Class: $99,288,301

Management Team

Geoffrey P. Dybas, CFA
Geoffrey P. Dybas, CFA Duff & Phelps Investment Management

Industry start date: 1989

Start date with Fund: 1998

Frank J. Haggerty, Jr., CFA
Frank J. Haggerty, Jr., CFA Duff & Phelps Investment Management

Industry start date: 1996

Start date with Series: 2007

Duff & Phelps Investment Management

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.

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 225 funds, 3 stars out of 194 funds and 4 stars out of 145 funds within the Real Estate 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 10.93 10.93 6.23 10.41 28.00 9.01 12.42
Quarterly Performance (%) (as of 3/31/2014)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 10.93 10.93 6.23 10.41 28.00 9.01 12.42
Index 9.98 9.98 4.16 10.65 28.20 8.22 NA

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

Index: FTSE NAREIT Equity REITs Index
The FTSE NAREIT Equity REITs Index is a free-float market capitalization-weighted index measuring equity tax-qualified real estate investment trusts, which meet minimum size and liquidity criteria, that are listed on the New York Stock Exchange, the American Stock Exchange and the NASDAQ National Market System. 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

Fund class operating expenses are 1.16% and gross operating expenses are 1.20%.

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

Risk Statistics3 (as of 3/31/2014)

  Fund Index
R2 0.99 1.00
Beta 1.03 1.00
Alpha -0.47 0.00
Std Dev 17.07 16.53
Index: FTSE NAREIT Equity REITs Index

Daily Price (as of 4/23/2014)

NAV Change ($)
26.47 -0.13

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

Simon Property Group, Inc. 10.87
Public Storage 6.71
Prologis, Inc. 6.04
Equity Residential 4.83
General Growth Properties, Inc. 4.70
Macerich Company 4.39
Kilroy Realty Corporation 4.24
AvalonBay Communities, Inc. 4.21
Host Hotels & Resorts, Inc. 4.11
Essex Property Trust, Inc. 4.10

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

Retail: Regional Malls 19.67
Residential: Apartments 17.58
Industrial/Office: Office 11.21
Industrial/Office: Industrial 10.34
Self Storage 10.00

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 225 funds, 3 stars out of 194 funds and 4 stars out of 145 funds within the Real Estate 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.