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Investment Opportunity

The portfolio utilizes a rigorous, fundamental driven investment process to identify the most attractive investment candidates. The 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

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.

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.

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

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

Key Stats (as of 12/2/2016)

Inception: 4/30/2013
CUSIP: 92829L844
Fund No: 205
Net Assets by Fund: $77,924,789
Net Assets by Class: $188,280

Management Team

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

Industry start date: 1989

Start date with Series: 1998

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

Industry start date: 1996

Start date with Series: 2007

Duff & Phelps Investment Management Co.

Duff & Phelps Investment Management Co. offers an investment product mix comprised of Global Infrastructure, Global Real Estate, Energy, and MLPs. 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 10/31/2016 the Fund was rated 3 stars out of 38 funds within the Real Estate category for the 3-year period.

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 -9.02 2.12 2.83 11.48 NA NA 6.14
POP -9.02 2.12 2.83 11.48 NA NA 6.14
Quarterly Performance (%) (as of 9/30/2016)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV -2.45 9.69 16.11 13.75 NA NA 8.70
POP -2.45 9.69 16.11 13.75 NA NA 8.70
Index -1.43 11.75 19.86 14.22 15.91 6.35 NA

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 0.91% and gross operating expenses are 1.02%.

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

Risk Statistics3 (as of 9/30/2016)

  Fund Index
R2 0.99 1.00
Beta 1.01 1.00
Alpha -0.49 0.00
Std Dev 14.83 14.63
Index: FTSE NAREIT Equity REITs Index

Daily Price (as of 12/2/2016)

NAV Change ($)
22.15 0.20
POP Change ($)
22.15 0.20

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

Simon Property Group, Inc. 8.23
Essex Property Trust, Inc. 4.42
Equinix, Inc. 4.27
Vornado Realty Trust 4.14
Digital Realty Trust, Inc. 4.01
DCT Industrial Trust Inc. 3.88
Kilroy Realty Corporation 3.78
Duke Realty Corporation 3.59
Prologis, Inc. 3.45
Public Storage 3.06

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

Office 13.57
Residential: Apartments 11.69
Retail: Shopping Centers 11.12
Industrial 10.90
Retail: Regional Malls 10.59

Morningstar Ratings

Overall Rating Non Load-Waived

As of 10/31/2016 the Fund was rated 3 stars out of 38 funds within the Real Estate category for the 3-year period.

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: 
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.