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Investment Opportunity

Using a contrarian investment approach, the manager searches for 'Jewels' buried in distressed or restructuring companies. The portfolio manager targets established companies that, based on independent research, offer promising future growth prospects. Extensive valuation and security analysis provides the basis for construction of a concentrated portfolio with low turnover.

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.

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 4/24/2014)

Inception: 12/30/1997
Ticker: FMIVX
CUSIP: 92828N726
Fund No: 1431
Net Assets by Fund: $472,461,154
Net Assets by Class: $253,807,325

Management Team

Daniel Leary
Daniel Leary Sasco Capital

Industry start date: 1971

Start date with Fund: 1997

Bruce Bottomley, CFA
Bruce Bottomley, CFA Sasco Capital

Industry start date: 1972

Start date with Fund: 1997

Mark Helderman
Mark Helderman Sasco Capital

Industry start date: 1986

Start date with Fund: 2004

Sasco Capital

Sasco Capital Management, through exhaustive independent research and a long term investment view, attempts to identify undervalued, diversified companies where low-return divisions are masking the profitability of high-return businesses, also called 'Jewels'.

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 3 stars out of 365 funds, 3 stars out of 307 funds and 3 stars out of 191 funds within the Mid-Cap Value category for the 3-, 5- and 10 year periods, respectively.

Overall Rating Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 365 funds, 4 stars out of 307 funds and 3 stars out of 191 funds within the Mid-Cap Value 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 6.39 6.39 24.20 14.80 24.99 9.64 9.53
POP 0.27 0.27 17.06 12.56 23.52 8.99 9.14
Quarterly Performance (%) (as of 3/31/2014)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 6.39 6.39 24.20 14.80 24.99 9.64 9.53
POP 0.27 0.27 17.06 12.56 23.52 8.99 9.14
Index 5.22 5.22 22.95 15.17 26.35 10.24 NA

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

Index: Russell Midcap® Value Index
The Russell Midcap® Value Index is a market capitalization-weighted index of medium-capitalization, value-oriented stocks of 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 exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder’s fee has been paid.

Fund class operating expenses are 1.42%.

Risk Statistics3 (as of 3/31/2014)

  Fund Index
R2 0.92 1.00
Beta 1.07 1.00
Alpha -1.15 0.00
Std Dev 15.54 13.93
Index: Russell Midcap® Value Index

Daily Price (as of 4/24/2014)

NAV Change ($)
37.46 -0.10
POP Change ($)
39.75 -0.10

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

Safeway Inc. 5.42
Nabors Industries Ltd. 5.17
ONEOK, Inc. 4.55
Owens-Illinois, Inc. 4.02
Alcoa Inc. 3.93
Crown Holdings, Inc. 3.93
Republic Services, Inc. 3.93
Beam Inc. 3.92
Dow Chemical Company 3.91
Dominion Resources, Inc. 3.59

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

Materials 29.97
Energy 22.32
Industrials 19.89
Consumer Staples 13.75
Consumer Discretionary 5.98

Characteristics4
(as of 3/31/2014)

Avg Weighted Market Cap (bn) $16.07
Median Market Cap (bn) $8.85
Trailing P/E 15.37x
Price-to-Cash Flow 10.56
Price-to-Book Value 2.75
3-Year EPS Growth Rate 9.73

Morningstar Ratings

Overall Rating Non Load-Waived

As of 3/31/2014 the Fund was rated 3 stars out of 365 funds, 3 stars out of 307 funds and 3 stars out of 191 funds within the Mid-Cap Value category for the 3-, 5- and 10 year periods, respectively.

Overall Rating Load-Waived

As of 3/31/2014 the Fund was rated 4 stars out of 365 funds, 4 stars out of 307 funds and 3 stars out of 191 funds within the Mid-Cap Value category for the 3-, 5- and 10 year periods, respectively.

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 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 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.

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.