Our Products | Mutual Funds | Capital Growth Series

Back to Products
Print

Investment Opportunity

This portfolio pursues long-term capital appreciation in the large-cap sector with equal or less volatility than the large-cap Russell 1000 Growth Index. The portfolio invests in a select group of large-cap growth companies believed to be undervalued relative to their future growth potential. The investment strategy emphasizes companies with a competitive advantage, strong management and low financial risk that are able to grow over market cycles, despite their discounted valuations.

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.

Limited Number of Investments: 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.

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 12/9/2016)

Inception: 12/31/1982
Ticker:
CUSIP: 92829L109
Fund No:
Net Assets by Fund: $190,491,782
Net Assets by Class: $190,491,782

Management Team

Douglas S. Foreman, CFA
Douglas S. Foreman, CFA Kayne Anderson Rudnick Investment Management, LLC

Industry start date: 1989

Start date with Series: 2011

Kayne Anderson Rudnick Investment Management, LLC

Kayne Anderson Rudnick believes that superior risk-adjusted returns can be achieved through investment in high-quality companies with global dominance, excellent management, financial strength, and consistent growth purchased at reasonable prices.

Morningstar Ratings

Overall Rating

As of 11/30/2016 the Fund was rated 4 stars out of 234 funds, 3 stars out of 224 funds and 2 stars out of 188 funds within the Large Growth 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 11/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -1.96 0.40 -1.61 8.05 12.34 5.22 9.40
POP -1.96 0.40 -1.61 8.05 12.34 5.22 9.40
Quarterly Performance (%) (as of 9/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 6.36 3.41 13.34 11.11 15.98 5.93 9.55
POP 6.36 3.41 13.34 11.11 15.98 5.93 9.55
Index 4.58 6.00 13.76 11.83 16.60 8.85 NA

Index: Russell 1000® Growth Index
The Russell 1000® Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest 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

Fund class operating expenses are 1.03% and gross operating expenses are 1.20%.

Operating expenses reflect a contractual expense reimbursement in effect through 04/30/2017.

Risk Statistics3 (as of 9/30/2016)

  Fund Index
R2 0.94 1.00
Beta 1.12 1.00
Alpha -1.82 0.00
Std Dev 13.01 11.28
Index: Russell 1000® Growth Index

Daily Price (as of 12/9/2016)

NAV Change ($)
25.20 0.12
POP Change ($)
25.20 0.12

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

Facebook, Inc. Class A 9.87
Alibaba Group Holding Ltd. Sponsored ADR 4.77
Amazon.com, Inc. 4.36
Visa Inc. Class A 3.68
Starbucks Corporation 3.64
Monster Beverage Corporation 3.34
NIKE, Inc. Class B 3.29
Las Vegas Sands Corp. 3.28
Priceline Group Inc 3.17
Celgene Corporation 3.14

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

Information Technology 34.95
Consumer Discretionary 28.06
Health Care 13.08
Consumer Staples 12.42
Energy 5.68

Characteristics4
(as of 9/30/2016)

Avg Weighted Market Cap (bn) $129.02
Median Market Cap (bn) $42.01
Trailing P/E 31.30x
Price-to-Cash Flow 26.85
Price-to-Book Value 6.16
3-Year EPS Growth Rate 19.51

Morningstar Ratings

Overall Rating Non Load-Waived

As of 11/30/2016 the Fund was rated 4 stars out of 234 funds, 3 stars out of 224 funds and 2 stars out of 188 funds within the Large Growth 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 (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.