Virtus emerging market opportunities fund

8

Virtus emerging market opportunities fund: You might want to read the prospectus of the fund, which offers more details about the product and its risks, before making an investment. The prospectus, SAI, annual report, and other documents pertaining to the fund are available online at http://www.virtus.com/individuals/forms/prospectuses.aspx?type=individual.

A free phone call to 800-243-1574 or an email to [email protected] will also provide you with this information. The prospectus and other information will also be available from your financial intermediary if you buy shares of the fund through a broker-dealer or other financial intermediary (such as a bank).

Virtus emerging market opportunities fund

This Summary Prospectus incorporates by reference the prospectus and SAI for the fund, both dated May 1, 2012.

Investment Objective

The fund has an investment objective of providing capital appreciation.

Fees and Expenses

The fees and costs that you might incur if you purchase and hold shares of the fund are shown in the tables below. If you and your family invest or promise to invest in the future, at least $50,000 in Virtus Mutual Funds, you may be eligible for sales fee savings. More information on these and other discounts, as well as the qualifications for each share class, can be found from your financial advisor, on page 64 of the prospectus for the fund under “Sales Charges,” and on page 43 of the fund’s statement of additional information under “Alternative Purchase Arrangements.”

Example

This illustration is meant to make it easier for you to assess how much investing in the fund will cost you in comparison to investing in other mutual funds. The illustration assumes that you put $10,000 into the fund for the specified durations. It displays your costs regardless of whether you sold your shares at the end of the period or kept them. The example further assumes that the fund’s operational costs stay the same and that your investment earns a yearly return of 5%. Despite the possibility that your real expenses will differ from these estimates, your costs would be as follows:

 

      Share Status    1 Year      3 Years      5 Years      10 Years  
Class A    Sold or Held      $730         $1,057         $1,406         $2,386   
Class C    Sold      $340         $739         $1,265         $2,706   
     Held      $240         $739         $1,265         $2,706   
Class I    Sold or Held      $145         $449         $776         $1,702   

Portfolio Turnover

When the fund purchases and sells securities (or “turns over” its portfolio), it must pay transaction fees like commissions. When holding fund shares in a taxable account, a higher portfolio turnover rate may be a sign of increased transaction costs and higher taxes. The performance of the fund is impacted by these charges, which are not included in annual fund operating expenses or in the example. The fund’s portfolio turnover rate during the most recent fiscal year was 29 percent of the portfolio’s average value.

Investments, Risks, and Performance

Principal Investment Strategies

This fund gives investors access to developing economies through reputable businesses. The securities chosen for the fund are those that, in the subadviser’s opinion, are well-managed companies with reliable operating histories and financial results, positive long-term economic prospects, and, in most cases, free cash flow generation. The investing strategy is intended to capture a portion of market upswings over whole market cycles and may provide protection during market downswings.

The fund typically invests at least 80% of its assets in equity securities or equity-linked instruments issued by companies with operations in emerging markets nations; these companies may be of any capitalization. All countries outside of the United States, Canada, Japan, Australia, New Zealand, and the majority of Western European countries are typically considered emerging markets countries. The country in which an issuer is incorporated serves as the subadviser’s main reference point when evaluating an issuer’s “location.” However, the final analysis of the following factors—the actual building location (domicile), the primary exchange on which the securities are traded, and the nation where the majority of the company’s revenue is generated—determines the country of risk.

Principal Risks

The fund is not meant to be a comprehensive investing program, and it may not achieve its goal. The investments that underpin the share value of the fund could lose value. You will lose money if the value of the fund’s investments declines between the time you buy shares and the time you sell shares. Several factors might cause investment values to decline. The economy as a whole, particular sectors or businesses in which the fund invests, or investment performance generally, may be worse than anticipated. Your shares’ value could therefore drop. The following are the main dangers of investing in the fund:

  • Investment Risk in Emerging Markets. the possibility that the prices of securities in emerging markets may be more erratic or more significantly impacted by unfavorable circumstances than those of their equivalents in more developed overseas markets.
  • Risk of equity-linked instruments. the possibility that the fund could see a return that differs from that of the referred equities security, in addition to market risk and other risks associated with the referenced equity security. Equity-linked instruments can expose the Fund to counterparty risks, such as the possibility that the issuing business won’t be able to keep its end of the bargain and that the fund will lose all or a portion of its investment.
  •  Risk of equity securities. The possibility that events adversely affecting the issuers, industries, or financial markets in which the fund invests would have a short- or long-term impact on the value of the stocks owned by the fund and, consequently, the value of the fund’s shares. The volatility of investments in small and medium-sized businesses may be higher than that of bigger businesses.
  • Risk of Foreign Investment. the possibility that international assets’ prices may fluctuate more than their domestic counterparts.
  •  Risk of Geographic Concentration. The possibility exists that factors adversely impacting a nation or region where the fund concentrates its assets would lead to a decline in the value of the fund’s shares, possibly by a large amount. In comparison to a fund that does not concentrate holdings in a single country or region, the fund is more exposed to financial, economic, and other political changes in that country or region to the extent that it concentrates its assets there.
  • Risk of market volatility. the chance that depending on the prospects of certain companies and/or overall economic conditions, the value of the securities in which the fund has investments could go up or down. Price changes might only be temporary for a while.

Performance Information

The table and bar chart below gives some idea of the potential risks associated with investing in the fund. The previous performance of the fund, both before and after taxes, does not guarantee how the fund will perform in the future.

The 500 largest U.S. corporations make up the free-float market capitalization-weighted S&P 500® Index. The performance of developed stock markets in emerging markets around the world is gauged by the free float-adjusted market capitalization-weighted MSCI Emerging Markets Free Index (net). The indexes are computed using a total return method with reinvested net dividends.

The impact of state and local taxes is not taken into account when calculating after-tax returns, which are based on the historical highest individual federal marginal income tax rates. Only Class I Shares’ after-tax returns are displayed; after-tax returns for other classes will vary. Actual after-tax returns can vary from those displayed and are based on the investor’s tax position. Investors who own fund shares in tax-deferred accounts or shares held by non-taxable companies are not affected by after-tax returns.

Virtus emerging market opportunities fund

When compared to other return numbers for the same time, the Return After Taxes on Distributions and Sale of Fund Shares for a period may, in some circumstances, be higher. When a capital loss is achieved upon the selling of fund shares, this will happen and a tax is assumed.

Management

Virtus Investment Advisers, Inc. is the investment advisor to the fund.

Vontobel Asset Management, Inc. (“Vontobel”) serves as the fund’s subadviser.

Purchase and Sale of Fund Shares

The first purchase requirement for Class I Shares is $100,000; there is no minimum requirement for subsequent purchases.

On any business day, you can generally buy or sell shares of the fund by mail or phone. Shares may also be purchased and sold through a financial advisor.

Taxes

Except when your investment is made under a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, dividends from the fund are taxable to you as either ordinary income or capital gains. When the money from these tax-deferred arrangements is withdrawn, taxes may be due.

Payments to Broker-Dealers and Other Financial Intermediaries

The fund and its affiliated businesses may pay the broker-dealer or other financial intermediary (such as a bank) for the selling of fund shares and associated services if you buy the fund through them. By persuading the broker-dealer or other intermediary, as well as your financial advisor, to suggest the fund over another investment, these payments may lead to a conflict of interest. For further information, consult your financial counselor or the website of your financial intermediary.

Related Posts