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Virtus SGA Emerging Markets Growth Fund

Image specific to each asset class and market style grouping.
Ticker
VAEGX
CUSIP
92836N601
POP
$ (as of )
Inception
06/13/2019
Total Assets by Class
$157,754.08 (as of 12/01/2023)
Total Assets by Fund
$5,404,421.56 (as of 12/01/2023)
Morningstar Category
Diversified Emerging Mkts

Portfolio Overview

Investment Overview

The Fund offers investors exposure to emerging markets through companies that demonstrate strong, predictable, and sustainable growth potential. First-hand, team-based research aims to identify and invest in growth businesses with strong pricing power, repeatable revenues, long runways of growth, and financial and management strength.

This Fund will be closed to new investors effective December 13, 2023, and liquidated on or about December 28, 2023.

Management Team

Investment Partner

Sustainable Growth Advisers, LP

Founded in 2003, Sustainable Growth Advisers is a growth equity manager focused on high-conviction U.S., global, emerging markets, and international portfolios.


Learn more about Sustainable Growth Advisers, LP

Investment Professionals

Rohn, Rober

Robert L. Rohn

Co-Founding Principal

Industry start date: 1983
Start date as fund Portfolio Manager: 2019

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Kishore Rao 150 x 150

Kishore Rao

Portfolio Manager and Analyst

Industry start date: 1997
Start date as fund Portfolio Manager: 2019

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Hrishikesh (HK) Gupta 150 x150

Hrishikesh (HK) Gupta

Portfolio Manager and Analyst

Industry start date: 2009
Start date as fund Portfolio Manager: 2019

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Key Features

Sustainable Growth

Searches for companies that offer strong, predictable, and sustainable growth

Benchmark Unconstrained

A high-conviction, concentrated portfolio that invests in response to opportunities, rather than index relative weights

Valuation Discipline

Manages price risk through application of valuation tools focused on cash flow

Portfolio Characteristics

Characteristics4

(as of 09/29/2023)
Average Weighted Market Cap (billions) $46.11
Median Market Cap (billions) $23.59
Trailing P/E Ex-Negative Earnings 23.09
Price-to-Cash Flow 19.73
Price-to-Book Value 4.75
3-Year Earnings Growth Rate 11.75

Top Holdings (% Fund)

(as of 09/29/2023)
Security
Wal-Mart de Mexico SAB de CV
6.51
 6.51%
Fomento Economico Mexicano SAB de CV
6.31
 6.31%
Infosys Ltd
6.29
 6.29%
HDFC Bank Ltd
6.17
 6.17%
Fast Retailing Co Ltd
5.57
 5.57%
Cp All Pcl
5.13
 5.13%
XP Inc
4.56
 4.56%
Yum China Holdings Inc
4.27
 4.27%
MercadoLibre Inc
4.23
 4.23%
Bank Central Asia Tbk PT
4.05
 4.05%

Holdings are subject to change.

Sector Allocation (% Equity)

(as of 09/29/2023)
Consumer Staples
36.06
 36.06%
Financials
23.41
 23.41%
Consumer Discretionary
21.70
 21.70%
Communication Services
8.16
 8.16%
Information Technology
6.30
 6.30%
Materials
2.25
 2.25%
Health Care
2.13
 2.13%

Top Countries (% Invested Assets)

(as of 09/29/2023)

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.

Performance

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
R2
Beta
Alpha
Std Dev

Risk Considerations

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, medium, or large-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.
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. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.
Limited Number of Investments: Because the portfolio has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a portfolio with a greater number of securities.
Industry/Sector Concentration: A portfolio 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 portfolio.
Consumer Concentration: Because the portfolio is presently heavily weighted in the consumer sector, it will be impacted by that sector's performance more than a portfolio with broader sector diversification.
ESG: The portfolio's consideration of ESG factors could cause the portfolio to perform differently from other portfolios. While the subadviser believes that the integration of ESG factors into the portfolio's investment process has the potential to contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.
Currency Rate: Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the portfolio's shares.
Depositary Receipts: Investments in foreign companies through depositary receipts may expose the portfolio to the same risks as direct investments in securities of foreign issuers.
Prospectus: For additional information on risks, please see the fund's prospectus.

Related Literature

Marketing Materials

Virtus SGA Emerging Markets Growth Fund Fact Sheet - I Shares
Virtus SGA Emerging Markets Growth Fund Fact Sheet - A
Virtus SGA Emerging Markets Growth Fund Fact Sheet - R6 Shares
Virtus Emerging Markets Equity Funds
SGA Market Review & Outlook

Financial Materials

Virtus Equity Trust Statutory Prospectus
Virtus SGA Emerging Markets Growth Fund Summary Prospectus
Virtus Equity Trust SAI
Virtus Equity Trust Annual Report
Virtus Equity Trust Semiannual Report

Holdings

Virtus SGA Emerging Markets Growth Fund Monthly Holdings
Virtus SGA Emerging Markets Growth Fund Top Holdings
Virtus SGA Emerging Markets Growth Fund Holdings Fiscal Q1
Virtus SGA Emerging Markets Growth 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 sum of each security's weight within the fund (or index) multiplied by the security's market capitalization. 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.

© 2023 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.