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Emerging Markets Opportunities

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$ (as of )
Total Assets by Class
$20,792,479.95 (as of 06/27/2022)
Total Assets by Fund
$132,596,444.07 (as of 06/27/2022)
Morningstar Category
Diversified Emerging Mkts

Portfolio Overview

Investment Overview

The Fund seeks capital appreciation through a systematic, bottom-up investing approach to emerging market equities that focuses on uncovering attractive investment opportunities while striving to mitigate downside risk. The all-cap core portfolio is built with high conviction at the stock level, focusing on securities that exhibit higher growth forecasts, lower valuations, and reduced volatility versus the benchmark.

Effective June 10, 2022, this Fund's name has changed.

Management Team

Investment Partner

Allianz Global Investors U.S. LLC

At Allianz Global Investors, active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors

Learn more about Allianz Global Investors U.S. LLC

Investment Professionals

Kunal, Ghosh

Kunal Ghosh

Managing Director, Senior Portfolio Manager

Industry start date: 2003
Start date as fund Portfolio Manager: 2007

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Yu, Lu


Managing Director, Portfolio Manager

Industry start date: 2002
Start date as fund Portfolio Manager: 2010

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Key Features

Exploits Inefficiencies

A behavioral finance approach, rooted in investors' often-inefficient reaction to new information, helps identify companies poised to benefit from changes not yet fully reflected in the market

Broad Emerging Market Exposure

Daily analysis of 3,000+ securities from a proprietary multi-factor model has resulted in a clear investment view on each stock and a high active share

Risk-Focused Approach

Proactive risk controls are embedded throughout the investment process to help lower volatility exposure versus the benchmark while a statistically based risk model helps uncover hidden sources of market risk

Portfolio Characteristics


(as of 03/31/2022)
Average Weighted Market Cap (billions) $81.15
Median Market Cap (billions) $12.16
Trailing P/E Ex-Negative Earnings 9.25
Price-to-Cash Flow 10.60
Price-to-Book Value 3.01
3-Year EPS Growth Rate 18.25

Top Holdings (% Fund)

(as of 03/31/2022)
Taiwan Semiconductor Manufacturing Co., Ltd.
Infosys Limited
Postal Savings Bank of China Co., Ltd. Class H
China Merchants Bank Co., Ltd. Class H
Cathay Financial Holdings Co., Ltd.
MTN Group Limited
Fubon Financial Holding Co., Ltd.
Tencent Holdings Ltd.
Hana Financial Group Inc.

Holdings are subject to change.

Sector Allocation (% Equity)

(as of 03/31/2022)
Information Technology
Communication Services
Consumer Discretionary
Consumer Staples
Real Estate
Health Care

Top Countries (% Invested Assets)

(as of 03/31/2022)

Performance & Risk

Growth of $10,000 Investment

From to
This chart assumes an initial investment of $10,000 made on for Class ddd shares including any applicable sales charges. Performance assumes reinvestment of dividends and capital gain distributions.


As of
As of

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.

Sales Charge and Expenses

Risk Statistics3

(as of )
Fund Index
Std Dev

Risk Considerations

Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio's manager(s) to invest the portfolio's assets as intended.
Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Focused Investments: To the extent the portfolio focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.
Prospectus: For additional information on risks, please see the fund's prospectus.



Market Review

Emerging market equities declined 6.97% in the first quarter amid rising macroeconomic headwinds and risk concerns. This included the U.S. Federal Reserve’s more aggressive tone regarding rate hikes, Russia’s invasion of Ukraine, and the U.S. dollar’s strength.

Latin American shares rallied significantly, thanks to outperformance of commodity and value-oriented shares, with each country in the region posting gains. Asian equities declined, as positive returns in southeastern countries were offset by headwinds in China driven by slowing growth and rising COVID-19 cases. European shares were down significantly, as Russia’s invasion of Ukraine led to the country’s eventual removal from key emerging markets benchmarks. At the sector level, only financials and materials finished positive. This was offset by a significant decline in energy stocks, due to large benchmark weights in Russian oil and gas companies, followed by double-digit declines in consumer discretionary, healthcare, information technology, and communication services.


The Virtus AllianzGI Emerging Markets Opportunities Fund (Class INST) declined 6.01% in the first quarter, while the MSCI Emerging Markets Index fell 6.97%. Stock selection in communications services and information technology and an overweight in financials aided results. Stock selection in energy and industrials detracted from performance.

The Mosaic Company and MTN Group were among the strongest stock contributors. Mosaic, a U.S.-listed producer of fertilizer, crop nutrients, and other agricultural products advanced as the conflict in the Ukraine caused further disruptions in the global fertilizer industry, which were already impacted by rising prices and tightening supplies. Shares of South African wireless telecommunications company MTN Group advanced due to favorable earnings guidance and an improving balance sheet, which puts the company in a more competitive position to facilitate future growth initiatives.

Russia-based Gazprom and Lukoil were among the largest stock detractors. Both oil and gas companies were negatively impacted by the country’s conflict in Ukraine, which led to a slew of sanctions, a trading halt, and removal from key emerging markets benchmarks. During the period, we trimmed exposure to Russian equities and had a de minimis weight at the end of the quarter due to fair value pricing.


Emerging markets are likely to be influenced by the unfortunate events in Ukraine in the near-term, despite Russia’s diminished significance in the asset class. The team’s behavioral finance and AI-focused process had been meaningfully overweight Russia last year and had significantly reduced that exposure in recent months due to rising risk concerns and moderating alpha expectations. Our viewpoint is that despite the dire situation in the region, which has decimated cites and impacted countless lives, the asset class will regain its footing. Emerging markets equities may continue to outperform developed markets, as was the case prior to the Russia invasion, due to their value and commodity-focus, particularly after having lagged over the last decade. Our expectation is that the team’s actively managed approach can deliver to outperformance above the benchmark, as has been the case in the past.

At the end of the first quarter, the Fund was positioned with a sizeable overweight to financials, followed by more modest overweights in information technology and energy. This was offset by a meaningful underweight in consumer discretionary, followed by healthcare and materials. At the country level, the Fund was overweight China, emerging markets-related companies traded in the U.S., South Africa, Taiwan, and Brazil. Saudi Arabia, South Korea, and India were the three largest active underweight allocations, due to less attractive opportunities at a bottom-up stock level.

The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.

Related Literature

Marketing Materials

Virtus Emerging Markets Opportunities Fund Fact Sheet - R6
Virtus Emerging Markets Opportunities Fund Fact Sheet - INST
Virtus Emerging Markets Equity Funds

Financial Materials

Virtus Investment Trust Statutory Prospectus
Virtus Emerging Markets Opportunities Fund Summary Prospectus
Virtus Investment Trust SAI
Virtus Investment Trust Annual Report
Virtus Investment Trust Semiannual Report


AllianzGI Emerging Markets Opportunities Holdings Monthly
Virtus AllianzGI Emerging Markets Opportunities Fund Top Holdings
Virtus AllianzGI Emerging Markets Opportunities Fund Holdings Fiscal Q1
Virtus AllianzGI Emerging Markets Opportunities Fund Holdings Fiscal Q3

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 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: 30-day SEC Yield is a standardized yield calculated according to a formula set by the SEC, and is subject to change. 30-day SEC Yield (unsubsidized) is the 30-day SEC Yield without the effect of applicable expense waivers. Distribution Rate is calculated by (a) annualizing the latest income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing by the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

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: Avg. Weighted Market Cap (bn): The total dollar market value of all of a company’s outstanding shares. Trailing P/E Ex-Negative Earnings: Per-share stock price divided by the latest 12-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: Effective Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's effective 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 Rating 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. Ratings do not take into account the effects of sales charges and loads.

© 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.