Virtus Zevenbergen Technology Fund

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Mutual Fund Specialty

Virtus Zevenbergen Technology Fund

Image specific to each asset class and market style grouping.
$ (as of )
Total Assets by Class
$550,003,818.06 (as of 12/01/2023)
Total Assets by Fund
$1,323,657,338.51 (as of 12/01/2023)
Morningstar Category

Portfolio Overview

Investment Overview

The Fund seeks attractive long-term competitive returns by investing in a portfolio of innovative technology companies that are capitalizing on the major themes powering tech sector growth.

Management Team

Investment Partner

Zevenbergen Capital Investments LLC

Zevenbergen Capital Investments LLC is a growth equity boutique. The investment team applies rigorous fundamental research to build exclusively high-growth portfolios.

Learn more about Zevenbergen Capital Investments LLC

Investment Professionals

Nancy Zevenbergen

Nancy Zevenbergen, CFA

President, Co-Chief Investment Officer, Portfolio Manager

Industry start date: 1981
Start date as fund Portfolio Manager: 2022

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Brooke de Boutray

Brooke de Boutray, CFA

Co-Chief Investment Officer, Portfolio Manager

Industry start date: 1982
Start date as fund Portfolio Manager: 2022

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Joe Dennison

Joseph Dennison, CFA

Portfolio Manager

Industry start date: 2011
Start date as fund Portfolio Manager: 2022

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Anthony Zackery

Anthony Zackery, CFA

Portfolio Manager, Sustainable Investment Lead

Industry start date: 2011
Start date as fund Portfolio Manager: 2022

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Key Features

Capitalizing on Technological Growth Trends

The Fund aims to identify significant growth trends ahead of the crowd, building an intimate knowledge of technology companies with optimal exposure to key trends and investing in those that demonstrate market leading potential

Investing across the Business Cycle Stages

The Fund invests in 40-70 emerging and mature technology companies, focusing on revenue, cash flow, and earnings growth in companies with strong management and solid fundamentals

Leveraging an Information Advantage

The portfolio management team has deep experience uncovering emerging trends and managing investments in technology companies across business cycle stages, applying perspective from decades of industry knowledge

Portfolio Characteristics


(as of 09/29/2023)
Average Weighted Market Cap (billions) $827.12
Median Market Cap (billions) $62.72
Trailing P/E Ex-Negative Earnings 42.01
Price-to-Cash Flow 29.49
Price-to-Book Value 10.82
3-Year Earnings Growth Rate 20.74

Top Holdings (% Fund)

(as of 09/29/2023)
Alphabet, Inc.- Cl C
Microsoft Corp
Apple Inc
Meta Platforms Inc
 6.31% Inc
Tesla Inc
Palo Alto Networks Inc
Advanced Micro Devices Inc
Trade Desk Inc/The

Holdings are subject to change.

Industry Allocation (% Equity)

(as of 09/29/2023)
Systems Software
Interactive Media Services
Broadline Retail
Application Software
Internet Services & Infrastructure
Automobile Manufacturers
Semiconductor Materials & Equipment
Transaction & Payment Processing Services
Passenger Ground Transportation
Communications Equipment
Electronic Components
Technology Distributors
Hotels, Resorts & Cruise Lines
Aerospace & Defense
Asset Management & Custody Banks
Interactive Home Entertainment
Real Estate Operating Companies
Electrical Components & Equipment
Human Resource &Employment Services

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. 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.
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, medium, or large-sized companies may enhance that 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.
Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
Prospectus: For additional information on risks, please see the fund's prospectus.



Market Review

Economic "mixed messages" provided fuel for optimists and pessimists alike in the third quarter, amplifying market volatility. Investors contemplated the health of the consumer, the magnitude and direction of business profits, and what macro and corporate data points suggest for future investment returns. Despite the ever-shifting economic news, many financial experts agreed on one thing: the Federal Reserve is determined to curb inflation growth through restrictive monetary and quantitative tightening policies. Aggressive central bank rhetoric led to interest rates reaching levels not seen since 2000 and a broad reset in risk appetite for duration-sensitive assets.

Fund Performance

The Virtus Zevenbergen Technology Fund returned -3.73% (Class I) in the quarter, trailing the -2.17% return of the S&P North American Technology Sector Index. Information technology (hardware and equipment, software and services) and consumer discretionary (automobiles, diversified retail, internet and direct marketing retail) industries contributed to the underperformance.

Alphabet and NVIDIA were the largest contributors to performance in the quarter.

  • Internet technology company Alphabet (and parent company of Google) spurred investor excitement with its progress in building and deploying artificial intelligence (AI) and machine learning tools in its consumer-facing apps, such as YouTube and Search, and cloud infrastructure businesses. To support its efforts, the company expanded its relationship with semiconductor company NVIDIA for a solution that handles complex AI workloads. Alphabet's internal chip development also received positive attention as industry observers cited attractive performance per cost versus commercial alternatives. In addition to upside potential from AI integration and monetization, growth relative to the previous year appears achievable going into the seasonally strong holiday quarter.
  • Sustained enthusiasm for AI enablers supported shares of semiconductor company NVIDIA in the quarter. Management provided upbeat commentary on AI-related datacenter sales trends and mentioned they are working diligently to acquire additional chip supply to meet fervent demand. Advanced machine learning and generative AI application development requires significant monetary and technical resources and rewards speedy deployment. These conditions favor well-capitalized, established leaders such as NVIDIA and could result in an initial "winner take most" industry structure.

Apple and Microsoft were the largest detractors from performance in the quarter.

  • A top performer year to date, Apple experienced a modest correction during the quarter as management offered conservative guidance for the remainder of the year in view of macro uncertainty. Adding to pressure, speculation of a Chinese order prohibiting government workers from using Apple products (or other foreign-made devices) sparked concerns over potential share loss. Despite early signs of healthy demand for the latest iPhone 15 product family, shares detracted from portfolio and benchmark performance.
  • Microsoft kicked off the quarter unveiling plans to price its new AI assistant, M365 Copilot, significantly above investor expectations at $30 per user, per month, driving already lofty expectations higher. On the earnings call, however, management focused on an accelerated ramp in capital spending to support AI opportunities and other growth areas, leaving investors disappointed with the lack of formal 2024 revenue guidance. The company continues to view the adoption of AI as potentially rapid, but conservatism around the timing and scale of customer deployments appears prudent.


Time is an investor’s ally, supplying the fuel that powers compounding returns and the perspective that allows interim anxieties to fade into distant memories. While current topics often feel momentous, they may ultimately have minimal impact over the long run, particularly for investment returns. We encourage investors to "stay above the economic fray" and remain focused on fundamental business and industry trends. We continue to closely follow the development and adoption of artificial intelligence (AI), a technological tool offering significant promise in boosting labor productivity, with the potential to spark a wave of innovation and disruption akin to the automobile or internet. While higher interest rates are likely to act as a headwind in some pockets of the economy, they could spur AI adoption (as organizations seek to produce more with fewer resources) and help the market separate durable from non-durable business models. We believe this separation can create excess return opportunities for observant, patient investors.

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 Zevenbergen Technology Fund Fact Sheet - A
Virtus Zevenbergen Technology Fund Fact Sheet - INST
Virtus Zevenbergen Funds Presentation
Eye on AI: Assessing the Investment Potential of Artificial Intelligence

Financial Materials

Virtus Investment Trust Statutory Prospectus
Virtus Zevenbergen Technology Fund Summary Prospectus
Virtus Investment Trust SAI
Virtus Investment Trust Annual Report
Virtus Investment Trust Semiannual Report


Virtus Zevenbergen Technology Quarterly Holdings
Virtus Zevenbergen Technology Fund Top Holdings
Virtus Zevenbergen Technology Fund Holdings Fiscal Q1
Virtus Zevenbergen Technology Fund Holdings Fiscal Q3

Section 19(a) Notices

Section 19(a) Notice for Ex-Date December 21, 2022

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.