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vot10:GlobalDividendLinkedBenchmarkMember vot10:C000049923Member 2012-02-01 2013-01-31 0001005020 vot10:S000018974Member vot10:AlphaSectorRotationLinkedBenchmarkMember vot10:C000052534Member 2012-02-01 2013-01-31 0001005020 vot10:S000018974Member vot10:SAndPFiveHundredIndexMember vot10:C000052534Member 2012-02-01 2013-01-31 0001005020 vot10:S000018008Member vot10:BofaMerrillLynchMediumQualityCorporateBondIndexMember vot10:C000066828Member 2012-02-01 2013-01-31 pure iso4217:USD <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusAllocatorPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusAllocatorPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusAllocatorPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusAllocatorPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusGlobalRealEstateSecuritiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusGlobalRealEstateSecuritiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusGlobalRealEstateSecuritiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusGlobalRealEstateSecuritiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSFOREIGNOPPORTUNITIESFUND column period compact * ~</div> <div style="display:none">~ 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http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSALPHASECTORROTATIONFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusGreaterAsiaexJapanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusGreaterAsiaexJapanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusGreaterAsiaexJapanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusGreaterAsiaexJapanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusGlobalCommoditiesStockFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusGlobalCommoditiesStockFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusGlobalCommoditiesStockFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusGlobalCommoditiesStockFund column period compact * ~</div> <b>Investment Objective </b> The fund has an investment objective of long-term capital appreciation. <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusGreaterEuropeanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusGreaterEuropeanOpportunitiesFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusGreaterEuropeanOpportunitiesFund column period compact * ~</div> <b>Fees and Expenses </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSALTERNATIVESDIVERSIFIERFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSALTERNATIVESDIVERSIFIERFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSALTERNATIVESDIVERSIFIERFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSALTERNATIVESDIVERSIFIERFUND column period compact * ~</div> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusHerzfeldFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusHerzfeldFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusHerzfeldFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSGLOBALDIVIDENDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSGLOBALDIVIDENDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSGLOBALDIVIDENDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSGLOBALDIVIDENDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSBONDFUND column period compact * ~</div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that the fund&#8217;s operating expenses remain the same and that the Class C fee waiver remains in place for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusPremiumAlphaSectorFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusPremiumAlphaSectorFund column period compact * ~</div> <b>Portfolio Turnover</b> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSCATAX-EXEMPTBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSCATAX-EXEMPTBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSCATAX-EXEMPTBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSCATAX-EXEMPTBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusDisciplinedSelectBondFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusDisciplinedSelectBondFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusDisciplinedSelectBondFund column period compact * ~</div> The Fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 190% of the value of its portfolio. <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSGLOBALOPPORTUNITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSGLOBALOPPORTUNITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSGLOBALOPPORTUNITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusInternationalEquityFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusInternationalEquityFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusInternationalEquityFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusDisciplinedSelectCountryFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusDisciplinedSelectCountryFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusDisciplinedSelectCountryFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusEmergingMarketsEquityIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusEmergingMarketsEquityIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusEmergingMarketsEquityIncomeFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSDYNAMICALPHASECTORFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSDYNAMICALPHASECTORFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSDYNAMICALPHASECTORFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSDYNAMICALPHASECTORFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSREALESTATESECURITIESFUND column period compact * ~</div> <b>Investments, Risks and Performance</b><br/><br/><b>Principal Investment Strategies</b> The fund seeks to track the AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Rotation Index (ASRX), a public index published by NASDAQ. The fund may be invested in ETFs and/or securities representing the primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index and in high-quality short-term securities. The primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index represented by the ETFs are: consumer discretionary, consumer staples, energy, financials, healthcare, industrials, materials, technology, and utilities. <br/><br/>Allocations are based on a proprietary quantitative model that seeks to evaluate &#8220;true&#8221; underlying trends within each sector by adjusting for unwarranted price distortions and changing levels of volatility in the market. The fund has the flexibility to be invested in any combination of the sector ETFs and/or securities, a combination of sector ETFs and/or securities and high-quality short-term securities, or 100% in high-quality short-term securities. The fund may invest in a basket of securities to represent a sector if it is determined that investment in the ETF for that sector is not feasible or otherwise not in the best interest of the fund. The fund may also deviate from tracking the AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Rotation Index and/or the model allocation if it is determined that tracking the Index and/or the model allocation is likely to violate applicable legal or regulatory restrictions or is otherwise result in adverse consequences for the fund. <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusDisciplinedEquityStyleFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusDisciplinedEquityStyleFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusDisciplinedEquityStyleFund column period compact * ~</div> <b>Principal Risks </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSSENIORFLOATINGRATEFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSSENIORFLOATINGRATEFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSSENIORFLOATINGRATEFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSSENIORFLOATINGRATEFUND column period compact * ~</div> The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Correlation to Index Risk.</b> The risk that the performance of the fund and its index may vary somewhat due to factors such as fund flows, transaction costs, sample selection, and timing differences associated with additions to and deletions from its index.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests, will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Sector Focused Investing Risk.</b> The risk that events negatively affecting an industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent that the fund invests a significant portion of its portfolio in ETFs representing one or more of the primary sectors of the S&amp;P 500&#174; Index (such as consumer discretionary, energy, healthcare) or in an ETF representing U.S. Treasuries, the fund is more vulnerable to conditions that negatively affect such sectors as compared to a fund that is not significantly invested in such sectors.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Performance Information </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSINTERNATIONALREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSINTERNATIONALREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSINTERNATIONALREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSINTERNATIONALREALESTATESECURITIESFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusWealthMastersFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusWealthMastersFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusWealthMastersFund column period compact * ~</div> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br/><br/> The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares</b> (includes returns of a predecessor fund) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009:&nbsp;&nbsp;&nbsp;&nbsp;14.28%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-17.03%</td></tr></table></div> </div> <b><a name="toc458392_2"></a>Virtus AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Rotation Fund </b> <b><a name="toc458392_3"></a>Virtus Alternatives Diversifier Fund </b> <b>Investment Objective </b> The fund is a fund of funds that has an investment objective of long-term capital appreciation. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSBONDFUND column period compact * ~</div> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> The fund seeks to achieve its objective by investing its assets in a mix of underlying affiliated and unaffiliated mutual funds and exchange-traded funds (&#8220;ETFs&#8221;) (collectively, &#8220;underlying funds&#8221;). The fund emphasizes low correlating asset classes in order to help reduce volatility and increase return potential. Applying an innovative, institutional-level approach to investing, the fund invests in a diversified portfolio of alternative asset classes including managed futures, global real estate, global infrastructure, natural resources, commodities, currencies, and floating rate securities. Among the underlying funds in which the fund invests are equity funds that invest principally in equity securities of issuers of any capitalization, including those of foreign issuers, including emerging markets issuers. Under normal circumstances, the fund will generally invest in affiliated mutual funds where available to represent the desired asset classes, and unaffiliated mutual funds and/or ETFs to represent the desired asset classes for which affiliated mutual funds are unavailable or deemed not to be appropriate for the fund. The fund is non-diversified under federal securities laws. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total-return basis with dividends reinvested. The AlphaSector&#8482; Rotation Linked Benchmark consists of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index since September 29, 2009. Prior to September 29, 2009, its performance represents an allocation consisting of 80% S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index and 20% Barclays Capital U.S. Aggregate Bond Index. The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Principal Risks </b> <b><a name="toc458392_8"></a>Virtus Disciplined Select Country Fund </b> <b><a name="toc458392_5"></a>Virtus CA Tax-Exempt Bond Fund </b> <b>Investment Objective </b> The fund has an investment objective of obtaining a high level of current income exempt from California state and local income taxes, as well as federal income tax, consistent with the preservation of capital. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Example </b> <b>Investment Objective </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The fund has an investment objective of capital appreciation. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) <b>Fees and Expenses </b> <b>Portfolio Turnover </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSBONDFUNDBarChart column period compact * ~</div> <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 16% of the average value of its portfolio. 0.0575 0 0 The fund seeks current income free from federal and state income taxes by investing in municipal bonds issued in the state of California. The management team focuses on high quality California tax-exempt municipal bonds, gauging the value of a security by issue type, credit quality, and bond structure.<br/><br/>Under normal circumstances, as a matter of fundamental policy, the fund invests at least 80% of its assets in bonds, the income from which is exempt from California state income tax and federal income tax, and may invest 100% of its assets in such securities. The portion of the fund&#8217;s assets not invested in tax-exempt securities may be invested in taxable fixed income securities. Income from these investments may be subject to federal, state and local taxes. <b>Principal Risks </b> 0.0375 0 0 0 0.008 0.008 0.008 <b><a name="toc458392_4"></a>Virtus Bond Fund </b> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0025 <b>Investment Objective </b> 0.01 0 The fund has an investment objective of high total return from both current income and capital appreciation. 0.0057 0.0057 0.0057 <b>Fees and Expenses </b> 0.0019 0.0019 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.0019 Best Quarter: 2009-06-30 0.01 0.0181 0.1428 0.0256 Shareholder Fees (fees paid directly from your investment) 0.0156 Worst Quarter: Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 2008-12-31 -0.1703 0.0159 <b>Example </b> 0.0234 0.0134 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after eight years. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 531 The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 210% of the average value of its portfolio. <b>Portfolio Turnover </b> <b><a name="toc458392_9"></a>Virtus Dynamic AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Fund </b> <b>Investments, Risks and Performance <br /><br />Principal Investment Strategies</b> <b>Investment Objective </b> 0.005 0.01 0 The Fund&#8217;s investment objective is to seek long-term capital appreciation. <b>Fees and Expenses </b> -0.0022 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. -0.0022 -0.0022 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.011 0.011 0.011 Shareholder Fees (fees paid directly from your investment) 0.0025 0.01 0 <b>Example </b> 0.0064 0.0064 0.0064 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after seven years. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> 0.0051 0.0051 0.0051 The fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 165% of the average value of its portfolio. 0.025 0.0325 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of the underlying funds in which the fund invests. The principal risks of investing in the fund are:<ul type="square"><li><blockquote><b>Affiliated Fund Risk.</b> The risk that the adviser&#8217;s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds may create a conflict of interest.</blockquote></li></ul><ul type="square"><li><blockquote><b>Allocation Risk.</b> The risk that the fund&#8217;s exposure to equities and fixed income securities, or to different asset classes, may vary from the intended allocation or may not be optimum for market conditions at a given time.</blockquote></li></ul><ul type="square"><li><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul>The principal risks attributable to the underlying funds in which the fund invests are: <ul type="square"><li><blockquote><b>Commodity Risk.</b> The risk that investments in commodities or commodity-linked notes will subject the fund&#8217;s portfolio to greater volatility than investments in traditional securities, or that commodity-linked instruments will experience returns different from the commodities they attempt to track.</blockquote></li></ul><ul type="square"><li><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li><blockquote><b>Derivatives Risk.</b> The risk that the fund will incur a loss greater than the fund&#8217;s investment in, or will experience greater share price volatility as a result of investing in, a derivative contract.</blockquote></li></ul><ul type="square"><li><blockquote><b>Emerging Market Investing Risk. </b>The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li><blockquote><b>Equity Real Estate Investment Trust (REIT) Securities Risk.</b> The risk that, in addition to the risks associated with investing in the real estate industry, the value of the fund&#8217;s shares will be negatively affected by factors specific to investing through a pooled vehicle, such as through poor management of a REIT or REIT-like entity, concentration risk, or other risks typically associated with investing in small or medium market capitalization companies.</blockquote></li></ul><ul type="square"><li><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies. </blockquote></li></ul><ul type="square"><li><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li><blockquote><b>High Yield-High Risk Fixed Income Securities Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li><blockquote><b>Income Risk.</b> The risk that income received from the fund will vary widely over the short- and long-term.</blockquote></li></ul><ul type="square"><li><blockquote><b>Industry/Sector Concentration Risk.</b> The risk that events negatively affecting an industry or market sector in which a fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul><ul type="square"><li><blockquote><b>Infrastructure-Related Risk.</b> The risk that the value of the fund&#8217;s shares will decrease as a result of conditions, such as general or local economic conditions and political developments, changes in regulations, environmental problems, casualty losses, and changes in interest rates, negatively affecting the infrastructure companies in which the fund invests. </blockquote></li></ul><ul type="square"><li><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li><blockquote><b>Leverage Risk.</b> The risk that the value of the fund&#8217;s shares will be more volatile or that the fund will incur a loss greater than the fund&#8217;s investment in a given security when leverage is used.</blockquote></li></ul><ul type="square"><li><blockquote><b>Liquidity Risk.</b> The risk that certain securities may be difficult or impossible to sell at the time and price beneficial to the fund.</blockquote></li></ul><ul type="square"><li><blockquote><b>Market Volatility Risk.</b> The value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li><blockquote><b>Master Limited Partnership (MLP) Risk.</b> The risk that the fund&#8217;s investments in MLP units will be negatively impacted by tax law changes, regulatory developments or other factors affecting the MLP&#8217;s underlying assets.</blockquote></li></ul><ul type="square"><li><blockquote><b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul><ul type="square"><li><blockquote><b>Preferred Stock Risk.</b> The risk that a preferred stock will decline in price, fail to pay dividends when expected, or be illiquid.</blockquote></li></ul><ul type="square"><li><blockquote><b>Short Sales Risk.</b> The risk that a fund may experience a loss if the price of a borrowed security increases between the date of a short sale and the date on which the fund replaces the security.</blockquote></li></ul><ul type="square"><li><blockquote><b>Unrated Fixed Income Securities Risk.</b> The risk that the subadviser will be unable to accurately assess the quality of an unrated fixed income security, so that the fund invests in a security with greater risk than intended, or that the liquidity of unrated fixed income securities in which the fund invests will be hindered, making it difficult for the fund to sell them.</blockquote></li></ul> The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Long-Term Maturities/Durations Risk.</b> The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Municipal Bond Market Risk.</b> The risk that events negatively impacting a particular municipal security, or the municipal bond market in general, will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Tax-Exempt Securities Risk.</b> The risk that tax-exempt securities may not provide a higher after-tax return than taxable securities.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Unrated Securities Risk.</b> The risk that the subadviser will be unable to accurately assess the quality of an unrated fixed income security, so that the fund invests in a security with greater risk than intended, or that the liquidity of unrated fixed income securities in which the fund invests will be hindered, making it difficult for the fund to sell them.</blockquote></li></ul> 0.0225 <b>Performance Information </b> 337 136 <b>Performance Information </b> -0.0029 -0.0029 -0.0029 903 776 0.0221 0.0296 0.0196 471 The fund seeks to generate high total return from both current income and capital appreciation by investing primarily in intermediate-term debt securities across 14 fixed income sectors. The fund seeks to achieve its objective by applying a time-tested approach of active sector rotation, extensive credit research and disciplined risk management designed to capitalize on opportunities across undervalued areas of the fixed income markets.<br/><br/>Under normal circumstances, the fund invests at least 80% of its assets in fixed income debt obligations of various types of issuers, to include some or all of the following:<ul type="square"><li style="margin-left: 5px"><blockquote>Securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, authorities or instrumentalities, including collateralized mortgage obligations ("CMOs"), real estate mortgage investment conduits ("REMICs"), and other pass-through securities;</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>Debt securities issued by foreign issuers, including foreign governments and their political subdivisions and issuers located in emerging markets;</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>Investment-grade securities (primarily of U.S. issuers, secondarily of non-U.S. issuers), which generally are securities with credit ratings within the four highest rating categories of a nationally recognized statistical rating organization; and</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>High-yield debt instruments, including bank loans (which are generally floating-rate).</blockquote></li></ul> <b>Principal Risks </b> 531 237 136 903 776 471 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br/><br/>The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. Updated performance information is available at virtus.com or by calling 800-243-1574. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Principal Risks </b> Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. <b>Calendar year total returns for Class A Shares</b> (includes returns of a predecessor fund) In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br/><br/>The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) <b>Calendar year total returns for Class A Shares</b> (includes returns of a predecessor fund) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px; font-size: 8px;"> </p> <p style="margin-top: 0px; margin-bottom: 0px;"> </p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009:&nbsp;&nbsp;&nbsp;&nbsp;12.30% </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom"></td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-21.63%</td></tr></table></div> </div> <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. virtus.com The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left: 5px"><blockquote><b>Credit Risk. </b>The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Emerging Market Risk. </b>The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Foreign Investing Risk. </b>The risk that the prices of foreign securities in the fund's portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>High Yield-High Risk Securities (Junk Bonds) Risk. </b>The risk that the issuers of high yield-high risk securities in the fund's portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Interest Rate Risk. </b>The risk that when interest rates rise, the values of the fund's debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Loan Participation Risk. </b>The risk that there may not be a readily available market for loan participation interests and, in some cases, the fund may have to dispose of such securities at a substantial discount from face value. Loan participations also involve the credit risk associated with the underlying corporate borrower.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Long-Term Maturities/Durations Risk. </b>The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk. </b>The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Mortgage-Backed and Asset-Backed Securities Risk. </b>The risk that changes in interest rates will cause both extension and prepayment risks for mortgage-backed and asset-backed securities in which the fund invests, or that an impairment of the value of collateral underlying such securities will cause the value of the securities to decrease.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>U.S. Government Securities Risk. </b>The risk that U.S. Government securities in the fund's portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> 800-243-1574 The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. <b>Performance Information </b> The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The Alternatives Diversifier Composite Benchmark consists of: HFRX Equity Market Neutral Index (20%), UBS Global Investors (Real Estate) Index (20%), Global Infrastructure, represented by the MSCI World Infrastructure Sector Capped Index (since 9/1/2008) (15%), S&amp;P North American Natural Resources Sector Index (10%), Deutsche Bank Liquid Commodity Index (15%), Deutsche Bank G10 Currency Harvest Index (10%) and Credit Suisse Leveraged Loan Index (10%). Prior to 9/1/2008, the Global Infrastructure component was represented by a mix of MSCI US Utilities Index (65%), MSCI World Telecom Services Index (20%) and MSCI World ex US Utilities Index (15%). The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574. 786 399 199 Restated to reflect current expenses. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. <b><a name="toc458392_7"></a>Virtus Disciplined Select Bond Fund </b> <b>Calendar year total returns for Class A Shares </b> The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. <b>Investment Objective </b> 1283 The fund has an investment objective of high total return from current income and capital appreciation. 974 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Fees and Expenses </b> <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px; font-size: 8px;"> </p> <p style="margin-top: 0px; margin-bottom: 0px;"> </p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2009:&nbsp;&nbsp;&nbsp;&nbsp;8.13% </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom"></td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2010:&nbsp;&nbsp;&nbsp;&nbsp;-4.63%</td></tr></table></div> </div> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Returns do not reflect sales charges and would be lower if they did. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12) 50000 <b>Example </b> 1.9 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) 675 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 0.0575 0 0 800-243-1574 The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The Barclays Capital California Municipal Bond Index measures long term investment grade, tax-exempt and fixed rate bonds issued in California. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment.<br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0 virtus.com Shareholder Fees (fees paid directly from your investment) 786 199 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 1283 675 <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009:&nbsp;&nbsp;&nbsp;&nbsp;5.51%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2004:&nbsp;&nbsp;&nbsp;&nbsp;-2.36%</td></tr></table></div> </div> The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Leverage Risk.</b> The risk that the value of the fund&#8217;s shares will be more volatile or that the fund will incur a loss greater than the fund&#8217;s investment in a given security when leverage is used.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Sector Focused Investing Risk.</b> The risk events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent the fund invests a significant portion of its portfolio in ETF representing one or more of the primary sectors of the S&amp;P 500&#174; Index (such as consumer discretionary, energy, healthcare) or in an ETF representing U.S. Treasuries, the fund is more vulnerable to conditions that negatively affect such sectors as compared to a fund that is not significantly invested in such sectors.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>Short Sales Risk.</b> The risk that a fund may experience a loss if the price of a borrowed security increases between the date of a short sale and the date on which the fund replaces the security.</blockquote></li></ul><ul type="square"><li style="margin-left:20px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that the U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Performance Information </b> <ul type="square"><li><blockquote><b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> 299 0.005 974 0.01 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. <b>Principal Risks </b> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) 50000 <b>Principal Risks </b> The fund seeks to maximize total return over a full market cycle in the bond market by tactically allocating net assets among six subsectors within the broad Treasury, Treasury Inflation Protected Securities (TIPS) and Corporate classifications of the bond market as set forth below:<br/><br/><p style="PADDING-LEFT: 30px">Treasuries:</p><ul type="square"><li style="margin-left: 120px">Short term U.S. Treasury Securities (1-3 year maturities)</li><li style="margin-left: 120px">Medium term U.S. Treasury Securities (7-10 year maturities)</li><li style="margin-left: 120px">Long term U.S. Treasury securities (20+ year maturities)</li></ul><p style="PADDING-LEFT: 30px">Treasury Inflation Protected Securities: </p><ul type="square"><li style="margin-left: 120px">TIPS</li></ul><p style="PADDING-LEFT: 30px">Corporate Bonds: </p><ul type="square"><li style="margin-left: 120px">Investment Grade Corporate Bonds</li><li style="margin-left: 120px">High Yield Corporate Securities (Junk Bonds)</li></ul>Allocations are based on a quantitative model that estimates performance trends for each pairing of these six subsectors of the bond market relative to each other and uses these estimates to generate, on a weekly basis, a positive or negative signal for each of the broad Treasury, TIPS and Corporate classifications. The classifications with positive signals will receive allocations, whereas the classifications with negative signals will not.<br/><br/>Each allocation may be invested in ETFs and/or baskets of securities representative of such ETFs. The fund may invest in a basket of securities to represent an ETF if it determines that investment in the ETF is not feasible or otherwise not in the best interest of the fund. Under normal circumstances, the fund intends to invest at least 80% of its assets in ETFs and/or securities representative of the bond market. 0.16 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. The index is unmanaged and not available for direct investment.<br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0.0045 0.0045 0.0045 0.29 0.0025 0 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 0.0032 0.0032 0.0032 0.0011 0.0011 0.0011 2.1 0.0113 0.0188 0.0088 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul><ul type="square"><li><blockquote><b>High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul><ul type="square"><li><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul><ul type="square"><li><blockquote><b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Performance Information </b> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds 0.0113 0.0186 The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0.0088 50000 Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2009:&nbsp;&nbsp;&nbsp;&nbsp;5.86%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-6.00%</td></tr></table></div> </div> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 2% during the fourth and fifth years and to 0% after the fifth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. January 31, 2014 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Estimated for current fiscal year. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0.01 50000 Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. -0.0002 After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. Returns do not reflect sales charges and would be lower if they did. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Average Annual Total Returns</b> (for the periods ended 12/31/12; includes returns of a predecessor fund) Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. Best Quarter: <b><a name="toc458392_6"></a>Virtus Disciplined Equity Style Fund </b> 2009-06-30 <b>Portfolio Turnover</b> 0.123 <b>Investment Objective </b> Worst Quarter: The fund has an investment objective of capital appreciation. -0.2163 <b>Fees and Expenses </b> 2008-12-31 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund's shares over short or extended periods.</blockquote></li><li style="margin-left:20px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li><li style="margin-left:20px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund's portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li><li style="margin-left:20px"><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li><li style="margin-left:20px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li><li style="margin-left:20px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund's principal investment strategies will result in a consistently high portfolio turnover rate. See the "Portfolio Turnover" section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li><li style="margin-left:20px"><blockquote><b>Small and Medium Market Capitalization Companies.</b> The risk that the fund's investments in small and medium market capitalization companies will increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.</blockquote></li></ul> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.0275 0 0 Shareholder Fees (fees paid directly from your investment) 0.0575 0 0 0 0.005 0.01 0.01 684 289 90 913 585 281 1161 1006 488 0.0575 0 0 <b>Performance Information </b> 1871 2180 0.0375 0 0 The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0 0.005 0.05 0.01 0 0.0045 0.0045 0 0 0 0 0.0025 0 0.0025 0.01 0 0.0034 0.0034 0.004 0.004 0.0001 0.0001 1084 0.004 0.0105 0.008 0.0103 0.0103 0.0103 0.0168 0.0243 0.0143 January 31, 2014 0.01 0.01 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0045 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 0.0045 0.0045 0.0045 684 189 90 50000 The fund has not had a full calendar year of operations; therefore, performance information is not shown. 913 585 281 0.01 0.0025 0.01 0 1161 1006 488 1871 2180 1084 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0032 0.0032 0.0032 0.0032 0.01 0.01 0.01 Restated to reflect current expenses. 0.0025 0.01 0 0.0001 0.0001 0.0001 0.0001 736 346 146 0.0078 1074 0.0178 758 452 0.0178 0.0103 379 82 1435 1296 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusDisciplinedSelectCountryFund column period compact * ~</div> 782 600 255 0.0061 0.0061 0.0061 2448 2766 1713 838 444 0.0023 0.0023 0.0023 1522 990 0.0209 0.0284 0.0184 -0.0026 -0.0026 -0.0026 0.0183 0.0258 0.0158 379 82 600 255 838 444 0.01 1522 990 736 246 146 1074 758 452 1435 1296 782 2448 2766 1713 0.04 0.0357 0.0237 0.0416 0.1326 0.0236 0.0734 -0.0406 -0.2888 0.2068 0.1105 361 750 0.1055 161 0.0163 -0.0254 0.097 0.1109 0.0845 1169 856 476 0.034 581 0.0144 281 0.0094 0.0885 80 0.0999 0.16 0.0696 760 <b>Portfolio Turnover</b> 691 560 249 -0.0089 -0.0156 -0.0119 -0.0045 0.0166 261 0.0068 856 922 964 964 433 1587 1897 2095 0.0546 0.003 0.0019 0.0872 0.0422 0.0815 1.65 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Restated to reflect current fees and expenses. 0.0487 0.0382 0.0371 0.0573 0.0595 0.0611 0.0413 0.0408 0.0347 0.0101 0.0348 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 0.0065 0.0518 0.0339 0.053 0.0736 0.0849 0.0422 The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 0.0584 0.0396 0.037 Returns do not reflect sales charges and would be lower if they did. 0.0586 0.0585 0.0692 0.0595 Best Quarter: 2009-03-31 0.0512 0.0339 0.0327 0.0472 0.0473 0.0586 0.0579 0.0518 Worst Quarter: 2011-09-30 -0.06 750 1169 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 553 966 Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 2013-01-31 485BPOS VIRTUS OPPORTUNITIES TRUST <b>Example </b> 0001005020 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. 2013-01-25 476 181 181 80 560 691 560 249 <b>Portfolio Turnover </b> Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) 964 964 922 433 966 2095 1897 <b>Investments, Risks and Performance </b><br /><br /><b>Principal Investment Strategies </b> 1587 <b>Average Annual Total Returns </b> (for the periods ended 12/31/12) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2010:&nbsp;&nbsp;&nbsp;&nbsp;13.11%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2010:&nbsp;&nbsp;&nbsp;&nbsp;-12.53%</td></tr></table></div> </div> Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusDisciplinedSelectBondFund column period compact * ~</div> 0.0679 0.0423 0.0172 0.0435 0.0575 0 0 0 0.0503 Returns do not reflect sales charges and would be lower if they did. -0.0055 0.1193 0.0858 0.0552 0.0818 <b>Supplemental Performance Information </b> 2013-01-31 <b>Calendar year total returns for Class A Shares </b> false On September 29, 2009, F-Squared Investments, Inc. (&#8220;F-Squared&#8221;), an affiliate of F-Squared Institutional Advisors, LLC (&#8220;F-Squared Institutional&#8221;), became the fund&#8217;s subadviser and the fund&#8217;s principal strategies were changed to those described in the fund&#8217;s prospectus. (On January 1, 2013, F-Squared Institutional became the fund&#8217;s subadviser; however, the fund&#8217;s strategies were unaffected.) The bar chart and table below show performance only since F-Squared began as subadviser to the fund. 0.0552 0.0606 0.0512 0.01 0.05 0.0125 0 2012-09-30 The fund seeks to outperform the Russell 3000<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index over a full market cycle in the U.S. equity market by tactically allocating net assets among six subsets of the U.S. equity universe that make up the Growth and Value equity styles as set forth below.<br/><br/><p style="PADDING-LEFT: 30px">Growth:</p> <ul type="square"><li style="margin-left: 120px"><blockquote>Large-Cap Growth</blockquote></li></ul> <ul type="square"><li style="margin-left: 120px"><blockquote>Mid-Cap Growth</blockquote></li></ul> <ul type="square"><li style="margin-left: 120px"><blockquote>Small-Cap Growth</blockquote></li></ul><p style="PADDING-LEFT: 30px">Value:</p> <ul type="square"><li style="margin-left: 120px"><blockquote>Large-Cap Value</blockquote></li></ul> <ul type="square"><li style="margin-left: 120px"><blockquote>Mid-Cap Value</blockquote></li></ul> <ul type="square"><li style="margin-left: 120px"><blockquote>Small-Cap Value</blockquote></li></ul> Allocations are based on a quantitative model that estimates performance trends for each pairing of these six subsets of the U.S. equity market relative to each other and uses these estimates to determine, on a weekly basis, whether the Growth or Value style is better positioned. The fund will invest assets in the equity style with the favorable aggregate score relative to the other style. The ability of the fund to outperform the Russell 3000<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index will depend on, among other things, the length of time and degree to which Growth stocks outperform Value stocks or Value stocks outperform Growth stocks in the U.S. equity market.<br/><br/> Each allocation may be invested in ETFs and/or baskets of securities representative of such ETFs. The fund may invest in a basket of securities to represent an ETF if it determines that investment in the ETF is not feasible or otherwise not in the best interest of the fund. Under normal circumstances, the fund intends to invest at least 80% of its assets in ETFs and/or securities representative of the U.S. equity market. <b>Principal Risks </b> Best Quarter: 2009-06-30 0.0551 Worst Quarter: 2004-06-30 -0.0236 0.0189 0.0189 0.0189 0.0189 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Growth Stocks Risk.</b> The risk that the fund&#8217;s investments in growth stocks will be more volatile than investments in other types of stocks, or will perform differently from the market as a whole and from other types of stocks.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Small and Medium Market Capitalization Risk.</b> The risk that the fund&#8217;s investments in small and medium market capitalization companies will increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote> <b>Value Stocks Risk.</b> The risk that the fund will underperform when value investing is out of favor or that the fund&#8217;s investments will not appreciate in value as anticipated.</blockquote></li></ul> <b>Performance Information </b> The fund has not had a full calendar year of operations; therefore, performance information is not shown. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSALTERNATIVESDIVERSIFIERFUND column period compact * ~</div> Best Quarter: 2010-09-30 Worst Quarter: 2010-06-30 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSALTERNATIVESDIVERSIFIERFUNDBarChart column period compact * ~</div> 2009-10-01 2005-11-30 2005-11-30 The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of a broad-based securities market index. 800-243-1574 virtus.com The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. Returns do not reflect sales charges and would be lower if they did. January 31, 2014 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Estimated for current fiscal year. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0.0421 0.0421 0.0407 0.0407 0.0025 0.01 0.01 0 0.0064 0.0064 0.0064 0.0064 0.0042 0.0042 0.0042 0.0042 0.0106 0.0106 0.0106 0.0106 The fund pays transaction costs, such as commissions, when it buys and sells shares of the underlying funds (or &#8220;turns over&#8221; its portfolio). The fund does not pay transaction costs when it buys and sells shares of the underlying mutual funds. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 29% of the value of its portfolio. 0.002 0.002 0.002 0.002 <b>Investments, Risks and Performance <br/><br/>Principal Investment Strategies </b> 0.034 0.0415 0.0415 0.0315 2006-09-29 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusDisciplinedEquityStyleFund column period compact * ~</div> Best Quarter: 2009-09-30 0.0813 Worst Quarter: 2010-12-31 -0.0463 <b>Investments, Risks and Performance </b><br /><br /><b>Principal Investment Strategies </b> The fund seeks to outperform the MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index over a full market cycle by tactically allocating net assets among countries included in the MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index. In pursuing this strategy, the fund maintains an emphasis on preservation of capital.<br/><br/>Allocations are based on a quantitative model that provides a positive or negative signal, on a weekly basis, for each country evaluated. Countries with positive signals will receive allocations approximating their relative weights in the MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index. The remaining portfolio assets will be allocated to the subadviser&#8217;s &#8220;minimum volatility portfolio,&#8221; which is designed to limit downside risk. The minimum volatility portfolio is allocated equally among the four countries that, in the subadviser&#8217;s opinion, have exhibited the lowest volatility pattern historically. To mitigate concentration, geographic, and political risk, the four countries in the minimum volatility portfolio cannot be from the same geographic or political region.<br/><br/>Each allocation may be invested in ETFs and/or baskets of securities representative of such ETFs. The fund may invest in a basket of securities to represent an ETF if it determines that investment in the ETF is not feasible or otherwise not in the best interest of the fund. The fund may invest in issuers of any capitalization. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Estimated for current fiscal year. 0.1026 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSCATAX-EXEMPTBONDFUND column period compact * ~</div> 0.0365 898 0.1337 817 517 318 0.0742 -0.3227 1560 1461 <b>Investment Objective </b> The fund has an investment objective of long-term capital appreciation. 1261 0.2389 <b>Fees and Expenses </b> 161 971 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.1385 Shareholder Fees (fees paid directly from your investment) <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSCATAX-EXEMPTBONDFUNDBarChart column period compact * ~</div> 0.0158 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 2243 0.1201 2120 2120 <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1649 <b>Portfolio Turnover </b> 553 4048 4174 4331 3457 <b>Principal Risks </b> 0.0557 0.0072 0.0047 0.1118 0.1231 0.16 0.16 0.0048 -0.0072 -0.0044 0.0094 0.0166 0.0349 <b><a name="toc458392_10"></a>Virtus Emerging Markets Debt Fund </b> 0.0482 0.0365 0.0352 0.0471 0.0621 0.0663 0.1127 0.1289 0.0375 0 0 0 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li><li style="margin-left:20px"><blockquote><b>Equity-Linked Instruments Risk.</b> The risk that, in addition to market risk and other risks of the referenced equity security, the fund may experience a return that is different from that of the referenced equity security. Equity-linked instruments also subject the fund to counterparty risk, including the risk that the issuing entity may not be able to honor its financial commitment, which could result in a loss of all or part of the fund&#8217;s investment.</blockquote></li><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li><li style="margin-left:20px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> 898 417 417 318 1560 1261 1261 971 0.005 0.01 2243 2120 2120 1649 0.0216 0.0158 0.015 0.0225 0.0773 0.1289 0.0722 4048 4174 4331 3457 0.0575 0 0 0 0.0575 0 0 <b>Virtus Allocator Premium AlphaSector^SM Fund </b> 0 <b>Investment Objective </b> The fund has an investment objective of capital appreciation. In pursuing this objective, the fund maintains an emphasis on preservation of capital. 0.0075 0.0075 0.0075 <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) 0.0025 0.01 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0 <b>Portfolio Turnover </b> The fund pays transaction costs, such as commissions, when it buys and sells shares of exchange-traded funds (&#8220;ETFs&#8221;) or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 211% of the average value of its portfolio. 0.006 0.006 0.01 0.01 0.006 0.016 0.0235 0.0135 -0.0025 -0.0025 -0.0025 0.01 0.01 2.11 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 -0.0009 0.044 -0.0009 0.0065 0.0135 0.0065 0.0065 0.021 0.011 -0.054 The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. -0.0228 0.0025 -0.0609 0.01 0 0.0905 -0.0049 -0.116 0.0041 0.0041 0.0669 0.0041 0.01 0.01 0.01 0.0131 0.0106 0.0206 <b>Example </b> <b>Performance Information </b> 0.0025 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.01 0.1289 0 0.0058 0.0058 0.0058 0.0005 0.0005 0.0005 0.0188 <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> 0.0263 0.0163 The fund allocates net assets to multiple asset classes including: U.S. Equity, International Equity, Fixed Income, and Alternative. Allocations within each asset class are based on proprietary quantitative models.<br/><br/>The U.S. Equity allocation may be invested in ETFs and/or securities representing the primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index. The primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index are: consumer discretionary, consumer staples, energy, financials, healthcare, industrials, materials, technology, and utilities. The International Equity allocation may be invested in ETFs and/or securities representing both developed markets (EAFE) and emerging markets. The Fixed Income allocation may be invested in ETFs and/or securities representing fixed income sectors including: high yield, investment grade corporate, mortgages, intermediate treasuries and inflation-protected treasuries (TIPS). The Alternative allocation may be invested in ETFs and/or securities representing gold, real estate and broad-based equity securities. The fund may also invest in stocks (without restriction as to market capitalization), bonds (without restriction as to credit quality) and short-term securities. The fund may invest in a basket of securities to represent a sector if it determines that investment in the ETF for that sector is not feasible or otherwise not in the best interest of the fund. The fund may also deviate from a model allocation if it is determined that tracking the model allocation is likely to violate applicable legal or regulatory restrictions or otherwise result in adverse consequences for the fund. In times of market weakness, the fund has the ability to move partially or fully to short-term cash equivalents. <b>Principal Risks </b> The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left: 5px"><blockquote><b>Commodity Risk.</b> The risk that investments in commodities, such as gold, or commodity-linked notes will subject the fund&#8217;s portfolio to greater volatility than investments in traditional securities, or that commodity-linked instruments will experience returns different from the commodities they attempt to track.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests, will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>High Yield-High Risk Fixed Income Securities Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b> Real Estate Investment Risk.</b> The risk that the value of the fund&#8217;s shares will be negatively affected by factors specific to the real estate market, including interest rate risk, leverage risk, property risk and management risk.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Sector Focused Investing Risk.</b> The risk that events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent that the fund invests a significant portion of its portfolio in ETFs representing one or more of the primary sectors of the S&amp;P 500&#174; Index (such as consumer discretionary, energy, healthcare) or in an ETF representing U.S. Treasuries, the fund is more vulnerable to conditions that negatively affect such sectors as compared to a fund that is not significantly invested in such sectors.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Performance Information </b> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br/><br/>The bar chart shows changes in the fund&#8217;s performance for its first full year of operations. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b> 2009-10-01 2003-08-01 2003-08-01 Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) 0.0056 0.0007 0.0004 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2012:&nbsp;&nbsp;&nbsp;&nbsp;4.87%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q2/2012:&nbsp;&nbsp;&nbsp;&nbsp;-0.55%</td></tr></table></div> </div> 0.0188 0.0594 0.072 0.16 0.083 <b>Average Annual Total Returns</b> (for the periods ended 12/31/12) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 701 309 108 The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The Dow Jones Global Moderate Portfolio Index is a benchmark that takes 60% of the risk of the global securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash. The Index is the efficient allocation of stocks, bonds, and cash in a portfolio with 60% of the risk of the Dow Jones Aggressive Portfolio Index. The indexes are calculated on a total return basis with dividends reinvested. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 966 646 337 1252 1108 585 755 366 2063 2390 1294 166 1132 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 817 514 -0.0196 -0.0213 -0.0173 -0.0178 -0.0155 0.0166 0.0205 1533 1395 The bar chart shows changes in the fund&#8217;s performance for its first full year of operations. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a composite benchmark. 887 0.0575 0 0 -0.0135 -0.0152 -0.012 -0.0152 800-243-1574 -0.015 0.071 0.025 2649 virtus.com 2964 The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 1933 -0.0134 <b>Investment Objective </b> 0.1289 0.0256 The fund has an investment objective of capital appreciation. In pursuing this objective, the fund maintains an emphasis on preservation of capital. 0.0105 Returns do not reflect sales charges and would be lower if they did. 0.0105 0.0105 <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Example </b> 0.0025 0.01 0 209 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 507 Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. 313 After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. 646 112 In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0.009 837 0.009 710 403 1108 0.009 2390 Best Quarter: <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusAllocatorPremiumAlphaSectorFund column period compact * ~</div> 2012-03-31 0.0487 Worst Quarter: 2012-06-30 -0.0055 0.022 0.0295 701 0.0195 108 337 966 755 266 166 1252 585 1132 0.0575 817 0 514 507 213 2063 -0.0045 0 112 1294 -0.0045 -0.0045 1533 0.0175 837 1395 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusAllocatorPremiumAlphaSectorFundBarChart column period compact * ~</div> 887 710 0.025 403 0 0.015 2649 2964 1933 0.01 0.01 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSFOREIGNOPPORTUNITIESFUND column period compact * ~</div> <b>Investment Objective </b> The fund has an investment objective of capital appreciation. <b>Investment Objective </b> The fund has an investment objective of seeking total return from current income and capital appreciation. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12) The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Fees and Expenses </b> 0.011 <b>Portfolio Turnover</b> 0.0681 0.011 743 Shareholder Fees (fees paid directly from your investment) 0.011 353 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 153 <b>Virtus Global Opportunities Fund </b> <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> 0.0552 0.28 0.0067 <b>Calendar year total returns for Class A Shares </b> -0.0113 0.2154 <b>Portfolio Turnover</b> -0.0074 0.0597 0.0709 The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the period from inception (September 5, 2012) through its fiscal year end (September 30, 2012), the fund&#8217;s portfolio turnover rate was 13% of the average value of its portfolio. -0.3102 0.16 0.0684 0.0035 0.1616 0.0575 0.0035 0.0035 <b>Investments, Risks and Performance<br/><br/>Principal Investment Strategies </b> 0.0835 0.0029 0.0029 0.0029 0.1016 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSFOREIGNOPPORTUNITIESFUNDBarChart column period compact * ~</div> 0.0202 0.0277 0.0177 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2012:&nbsp;&nbsp;&nbsp;&nbsp;6.76%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q2/2012:&nbsp;&nbsp;&nbsp;&nbsp; -1.94%</td></tr></table></div> </div> 0.0202 0.0275 0.0177 -0.0535 -0.0629 -0.0531 -0.029 -0.0192 0.0845 -0.0487 0.01 0.05 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusEmergingMarketsDebtFund column period compact * ~</div> 0.01 0.1117 <b>Principal Risks </b> 0.0025 0 0.0085 0.0085 0.0085 0.0085 0.0025 0.01 0.01 0 0.0043 0.01 0.0043 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br/><br/>The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 0.0043 0.0043 -0.0002 <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) 0.0001 0.0001 0.0001 0.0001 <b>Average Annual Total Returns</b> (for the periods ended 12/31/12; includes returns of a predecessor fund) 0.0154 0.0229 1183 0.0229 870 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 569 0.0129 0.0478 0.0199 0.0129 The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index (net) is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0.1031 0.1145 0.16 0.0665 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2004:&nbsp;&nbsp;&nbsp;&nbsp;19.15%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2008:&nbsp;&nbsp;&nbsp;&nbsp;-19.26%</td></tr></table></div> </div> 743 253 153 0.47 -0.0046 0.0004 -0.001 0.005 0.0166 -0.0108 50000 1183 870 569 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0641 0.0579 0.0546 0.0641 0.0423 0.0609 0.0269 0.0332 -0.002 Restated to reflect current expenses. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 2011-03-15 2011-03-15 2011-03-15 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any ETFs in which the fund invests. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left: 5px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests, will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Sector Focused Investing Risk.</b> The risk that events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent that the fund invests a significant portion of its portfolio in ETFs representing one or more of the primary sectors of the S&amp;P 500&#174; Index (such as consumer discretionary, energy, healthcare) or in an ETF representing U.S. Treasuries, the fund is more vulnerable to conditions that negatively affect such sectors as compared to a fund that is not significantly invested in such sectors.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Performance Information </b> The fund has not had a full calendar year of operations; therefore, performance information is not shown. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Investment Objective </b> 0 0.01 0.01 The fund has an investment objective of capital appreciation. <b>Fees and Expenses </b> Under normal circumstances, the Fund invests at least 80% of its assets in fixed income (debt) securities issued by governments, government-related entities and corporations located in emerging market countries. The fund may invest without limit in high yield debt securities and related investments rated below investment grade (that is, securities not rated Baa/BBB or above by at least one nationally recognized statistical rating organization (&#8220;NRSRO&#8221;), or, if unrated, determined to be of comparable credit quality by the subadviser). Below investment grade securities are commonly referred to as &#8220;junk bonds.&#8221; These investments include, but are not limited to, instruments designed to restructure outstanding emerging market debt such as participations in loans between governments and financial institutions. The fund manages duration utilizing a duration neutral strategy. Under normal circumstances, the fund&#8217;s average duration is maintained at a level similar to that of its benchmark, the JP Morgan Emerging Markets Bond Index (EMBI) Global Diversified. As of September 30, 2012, the modified adjusted duration of the JP Morgan EMBI Global Diversified was 7.41 years. The fund is a non-diversified portfolio. <br /><br />The fund intends to invest in at least three emerging market countries, which are countries that, at the time of investment, are represented in the JP Morgan Emerging Markets Bond Index Global Diversified or categorized by the World Bank in its annual categorization as middle- or low-income. In determining &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li><blockquote> <b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul> <ul type="square"><li><blockquote> <b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall. </blockquote></li></ul> <ul type="square"><li><blockquote><b> Liquidity Risk.</b> The risk that certain securities may be difficult or impossible to sell at a time and price beneficial to the fund. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Loan Participation Risk. </b>The risk that there may not be a readily available market for loan participation interests and, in some cases, the fund may have to dispose of such securities at a substantial discount from face value. Loan participations also involve the credit risk associated with the underlying corporate borrower. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> <ul type="square"><li><blockquote> <b>Unrated Fixed Income Securities Risk.</b> The risk that the subadviser will be unable to accurately assess the quality of an unrated fixed income security, so that the fund invests in a security with greater risk than intended, or that the liquidity of unrated fixed income securities in which the fund invests will be hindered, making it difficult for the fund to sell them. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States. </blockquote></li></ul> <b>Example </b> 0.1254 0.1219 0.0792 0.145 0.1847 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.16 0.1613 <b>Portfolio Turnover </b> 2009-10-01 -0.0172 -0.0174 -0.0137 -0.0126 -0.0128 0.0166 -0.0116 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSALPHASECTORROTATIONFUNDBarChart column period compact * ~</div> The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 96% of the average value of its portfolio. 0.0678 0.0656 0.0602 0.0663 0.0662 0.071 0.0811 <b>Virtus Global Commodities Stock Fund</b> 0.083 0.0272 0.062 Best Quarter: 2004-12-31 0.1915 Worst Quarter: 2008-09-30 -0.1926 <b>Investments, Risks and Performance<br /><br />Principal Investment Strategies </b> January 31, 2014 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSALPHASECTORROTATIONFUNDSUPPLEMENTBarChart column period compact * ~</div> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Estimated for current fiscal year. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. <ul type="square"><li><blockquote> <b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> The fund offers investors exposure to commodities-related investments in markets located throughout the world, including emerging market countries. Under normal circumstances, the fund invests globally at least 80% of its assets in stocks of companies principally engaged in the base metals, precious metals, energy, and agriculture group of industries. The fund will concentrate its investments in this commodities-related group of industries. The fund is a non-diversified portfolio and will consist primarily of common and preferred stocks, but may contain commodity-related exchange-traded funds (&#8220;ETFs&#8221;) and commodities-linked notes. The fund will primarily hold securities of companies listed on global securities exchanges or quoted on established over-the-counter markets, or American Depositary Receipts (ADRs). The fund typically invests in the securities of medium to large capitalization companies, but it is not limited to investing in the securities of companies of any particular size.<br /><br />Under normal circumstances, the fund will hold at least 40% of its assets in non-U.S issuers and ETFs and/or commodities-linked notes providing exposure to non-U.S markets. The fund intends to diversify its investments among countries and normally have represented in the portfolio business activities of a number of different countries. In determining the &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. The fund has not had a full calendar year of operations; therefore, performance information is not shown. <b>Principal Risks </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSALPHASECTORROTATIONFUNDSupplemental column period compact * ~</div> 0.3016 0.2823 0.1635 0.293 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows changes in the fund&#8217;s performance for its first full year of operations. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 0.1896 768 -0.4192 378 <b>Calendar year total returns for Class A Shares </b> 180 0.2234 0.1262 1172 853 557 0.0026 <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusGlobalPremiumAlphaSectorFund column period compact * ~</div> 0.1983 1600 <b><a name="toc458392_11"></a>Virtus Emerging Markets Equity Income Fund </b> 1454 959 <b>Investment Objective </b> 2788 The fund has an investment objective of seeking capital appreciation and income. 3080 <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The MSCI AC World Commodity Producer Sector Capped Index (net) is a market capitalization weighted index that measures performance of developed and emerging market commodity producers within the energy, metals and agricultural sectors. Each of the three sectors are equally weighted within the index. The index is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment.<br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the period from inception (September 5, 2012) through its fiscal year end (September 30, 2012), the fund&#8217;s portfolio turnover rate was 37% of the average value of its portfolio. Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. <b>Portfolio Turnover</b> The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The MSCI World Index (net) is a free float-adjusted market capitalization-weighted index that measures developed global market equity performance. The index is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Principal Risks </b> Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSDYNAMICALPHASECTORFUND column period compact * ~</div> <b>Average Annual Total Returns </b>(for the periods ended 12/31/12) 2.58 2084 2004-12-30 2004-12-30 2008-06-06 <b>Performance Information</b> 2012-08-08 The fund has not had a full calendar year of operations; therefore, performance information is not shown. Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2012:&nbsp;&nbsp;&nbsp;&nbsp;13.70%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q2/2012:&nbsp;&nbsp;&nbsp;&nbsp;-7.98%</td></tr></table></div> </div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 0.1294 0.1176 0.0764 0.1897 0.16 0.2017 0.1732 The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSDYNAMICALPHASECTORFUNDBarChart column period compact * ~</div> If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows changes in the fund&#8217;s performance for its first full year of operations. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <b>Investment Objective </b> -0.0195 768 The fund has an investment objective of capital appreciation and current income. -0.0209 278 -0.0164 180 -0.0153 -0.0051 0.0166 -0.0369 <b>Fees and Expenses </b> 1172 853 557 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.1047 0.1003 1600 0.0924 1454 0.071 959 0.0821 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 2788 Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. 3080 2084 After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Shareholder Fees (fees paid directly from your investment) <b>Virtus Global Dividend Fund </b> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> Returns do not reflect sales charges and would be lower if they did. This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0934 0.0589 0.0624 0.0018 0.0445 0.0367 632 723 332 131 1033 915 715 409 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left:20px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> 1366 1225 1225 708 2304 2438 <b>Fees and Expenses </b> 2626 0.0251 0.0161 0.0105 0.0799 0.0897 0.16 0.1124 0.0085 0.0032 0.003 0.0352 0.0449 0.0845 0.0599 <b>Portfolio Turnover </b> 0.0575 0 0 1556 The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li><blockquote> <b>Commodities Concentration Risk.</b> The risk that events negatively affecting the base metals, precious metals, energy and agriculture industries in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. Since the fund concentrates its assets in commodities-related investments, the fund is more vulnerable to conditions that negatively affect commodities-related companies and investments as compared to a fund that is not significantly invested in such companies.</blockquote></li></ul> <ul type="square"><li><blockquote> <b>Commodity and Commodity-Linked Instrument Risk.</b> The risk that investments in commodities or commodity-linked notes will subject the fund&#8217;s portfolio to greater volatility than investments in traditional securities, or that commodity-linked instruments will experience returns different from the commodities they attempt to track. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Emerging Market Investing Risk. </b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets. </blockquote></li></ul> <ul type="square"><li><blockquote> <b> Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in small and medium-sized companies may be more volatile than investments in larger companies. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li><blockquote><b> Market Volatility Risk. </b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li><blockquote> <b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> 0 232 2003-10-10 2006-05-15 0.01 232 0.01 715 715 1225 1225 2438 2626 0.13 2011-03-15 2011-03-15 2011-03-15 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusEmergingMarketsEquityIncomeFund column period compact * ~</div> Annual Fund Operating Expenses (expenses that you pay each year as a <br/> percentage of the value of your investment) 723 131 0.0575 0.011 0 0.011 0 0.011 1033 409 0.0025 0 0.01 1366 0.01 708 0 0.0042 2304 0.0042 1556 0.0042 Shareholder Fees (fees paid directly from your investment) 0.0028 0.0028 0.0028 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0205 0.028 0.018 0.0085 0.01 0.0085 0.0085 0.0025 0.01 0 0.0034 0.0034 0.0034 -0.0003 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusGlobalPremiumAlphaSectorFund column period compact * ~</div> 0.0001 0.0001 0.0001 0.0145 0.022 0.2689 0.158 0.012 0.0863 0.2129 0.0855 0.0205 0.0277 0.018 -0.4305 0.1703 0.1601 0.0537 0.1941 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2003:&nbsp;&nbsp;&nbsp;&nbsp;19.07%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-20.92%</td></tr></table></div> </div> <b><a name="toc458392_12"></a>Virtus Foreign Opportunities Fund </b> 0.0575 0 0 0 Shareholder Fees (fees paid directly from your investment) Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 3% during the third and fourth years and to 0% after the sixth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.01 0.01 <b>Portfolio Turnover</b> <b>Performance Information </b> <b>Principal Risks </b> 0.01 0.01 0.01 0.0025 0.01 0 0.0061 0.0061 0.0061 183 380 771 0.0098 0.0098 0.0098 1181 859 566 0.0284 0.0359 0.0259 1615 1464 975 -0.0026 -0.0026 -0.0026 2817 3099 0.0258 0.0333 0.0233 This fund offers investors exposure to emerging markets. The securities chosen for inclusion in the fund are those that, in the opinion of the subadviser, are high quality companies that pay above average dividends, have above average dividend growth potential, strong balance sheets and cash flow and adhere to better corporate governance. Companies selected must have the financial strength to maintain and grow their dividend payout commitments. The process is focused on identifying companies that have chosen to generate high levels of cash flow and to pay a high proportion of it to their shareholders. It is the belief of the subadviser that those companies offer the best opportunity for capital appreciation as well as superior income generation. <br /><br />Under normal circumstances, the fund invests at least 80% of its assets in equity securities of issuers located in emerging markets countries; such issuers may be of any capitalization. The equity securities in which the fund invests include common stocks, preferred stocks and American Depositary Receipts (ADRs). Emerging markets countries generally include every nation in the world except the U.S., Canada, Japan, Australia, New Zealand and most nations located in Western Europe. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. In determining &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. 2116 The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The MSCI ACWI Index (net) is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment.<br/><br/> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusGlobalPremiumAlphaSectorFund column period compact * ~</div> 0.96 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 771 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 280 183 50000 <b>Investments, Risks and Performance </b><br /><br /><b>Principal Investment Strategies </b> 1181 859 566 1615 1464 975 2817 The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. 3099 2116 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 714 <ul type="square"><li><blockquote> <b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> 323 122 Under normal circumstances, the fund invests globally at least 80% of its assets in stocks of companies principally engaged in the base metals, precious metals, energy, and agriculture group of industries. The fund will concentrate its investments in this commodities-related group of industries. January 31, 2014 The bar chart shows changes in the fund&#8217;s performance for its first full year of operations. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 1007 688 381 800-243-1574 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusGlobalPremiumAlphaSectorFund column period compact * ~</div> virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 1322 1180 660 2210 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 2534 1455 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Estimated for current fiscal year. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 0.0876 The fund has not had a full calendar year of operations; therefore, performance information is not shown. Returns do not reflect sales charges and would be lower if they did.<br /><br />Annual Return (%) 0.1126 Returns do not reflect sales charges and would be lower if they did. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. 821 436 In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 236 Best Quarter: 1381 1076 2012-09-30 781 0.137 Worst Quarter: 2012-06-30 -0.0798 Restated to reflect current expenses. 0.0375 0.0244 0.1035 0.16 0.1147 0.1583 714 223 122 688 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusGlobalPremiumAlphaSectorFundBarChart column period compact * ~</div> 1007 381 1322 1180 660 0.008 0.0016 0.0017 0.0338 821 0.0439 336 0.0845 0.053 236 2210 2534 1455 1381 1076 781 0.37 <b><a name="toc458392_20"></a>Virtus Herzfeld Fund </b> <b>Investment Objective </b> 0.0486 The fund has an investment objective of seeking capital appreciation and current income. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusGlobalPremiumAlphaSectorFund column period compact * ~</div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> The fund invests globally in infrastructure companies involved in the energy, utility, transportation, and communications industries. Infrastructure companies are believed by the subadviser to exhibit attractive risk/return characteristics, offer moderate-to-high income and moderate growth, and are defensive in nature. <br /><br />Under normal market conditions, the fund invests at least 80% of its assets in dividend paying equity securities of infrastructure companies that are located in three or more countries, one of which will be the United States. Under normal market conditions, the fund will invest at least 25% of its assets in securities of U.S. issuers. As of September 30, 2012, the fund was invested in issuers representing approximately 13 different countries. Although the fund concentrates its investments in infrastructure companies, it may invest up to 20% of its assets in securities of issuers that are not infrastructure companies, including stocks, debt obligations, money market securities and money market mutual funds, as well as certain derivative instruments. To the extent the fund purchases non-infrastructure stocks, they may be of issuers of any capitalization. When investing in debt obligations, the fund will invest primarily in investment grade debt obligations, although it may invest in high-yield, high-risk fixed income securities (junk bonds). This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Investments, Risks and Performance<br/><br/>Principal Investment Strategies</b> The fund pays transaction costs, such as commissions, when it buys and sells shares of closed-end funds or securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the period from inception (September 5, 2012) through its fiscal year end (September 30, 2012), the fund&#8217;s portfolio turnover rate was 3% of the average value of its portfolio. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Derivatives Risk.</b> The risk that the fund will incur a loss greater than the fund&#8217;s investment in, or will experience greater share price volatility as a result of investing in, a derivative contract. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Equity Securities Risk. </b>The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Foreign Investing Risk. </b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments. </blockquote></li></ul> <ul type="square"><li><blockquote><b>High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk. </b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Income Risk. </b> The risk that income received from the fund will vary widely over the short- and long-term. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Industry/Sector Concentration Risk. </b> The risk that events negatively affecting infrastructure companies will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. Since the fund concentrates its assets in infrastructure companies, the fund is more vulnerable to conditions that negatively affect infrastructure companies as compared to a fund that does not concentrate holdings in such companies. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Infrastructure-Related Investment Risk. </b>The risk that the value of the fund&#8217;s shares will decrease as a result of conditions, such as general or local economic conditions and political developments, changes in regulations, environmental problems, casualty losses, and changes in interest rates, negatively affecting the infrastructure companies in which the fund invests. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Interest Rate Risk. </b>The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Market Volatility Risk. </b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Master Limited Partnership (MLP) Risk. </b> The risk that the fund&#8217;s investments in MLP units will be negatively impacted by tax law changes, regulatory developments or other factors affecting the MLPs. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Preferred Stock Risk. </b> The risk that a preferred stock will decline in price, fail to pay dividends when expected, or be illiquid. </blockquote></li></ul> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and with a composite benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Principal Risks </b> <b>Calendar year total returns for Class A Shares</b> (includes returns of a predecessor fund) Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) <b>Performance Information </b> <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px; font-size: 8px;"> </p> <p style="margin-top: 0px; margin-bottom: 0px;"> </p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2010:&nbsp;&nbsp;&nbsp;&nbsp;16.39% </td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom"></td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2008:&nbsp;&nbsp;&nbsp;&nbsp;-16.55%</td></tr></table></div></div> The fund has not had a full calendar year of operations; therefore, performance information is not shown. 2011-03-15 2011-03-15 <b>Average Annual Total Returns </b> (for the periods ended 12/31/12; includes returns of a predecessor fund) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies and is provided for general comparative purposes. The index is calculated on a total-return basis with dividends reinvested. The Global Dividend Linked Benchmark consists of the MSCI World Infrastructure Sector Capped Index for the period since September 1, 2008. This is a market capitalization weighted index that measures performance of global infrastructure companies by capturing broad and diversified opportunities across telecommunication, utilities, energy, transportation and social infrastructure sectors. The telecommunication infrastructure and utilities sector each represent one-third of the index weight, while energy, transportation and social infrastructure sectors have a combined weight of the remaining one-third of the index. Performance of the Global Dividend Linked Benchmark prior to September 1, 2008 represents an allocation consisting of 65% MSCI USA/Utilities Index, 20% MSCI World Telecom Services Index, and 15% MSCI World ex USA/Utilities Index. The indexes are unmanaged and not available for direct investment. <br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 21% of the average value of its portfolio. 2011-03-15 0.21 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Under normal market conditions, the fund invests at least 80% of its assets in dividend paying equity securities of infrastructure companies that are located in three or more countries, one of which will be the United States. Although the fund concentrates its investments in infrastructure companies, it may invest up to 20% of its assets in securities of issuers that are not infrastructure companies, including stocks, debt obligations, money market securities and money market mutual funds, as well as certain derivative instruments. The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and with a composite benchmark that reflects the market sectors in which the fund invests. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) Best Quarter: 800-243-1574 2012-03-31 This fund seeks to provide investors with exposure to high-quality global companies. The securities selected for inclusion in the fund are those believed by the subadviser to be well-managed businesses with consistent operating histories and financial performance that have favorable long-term economic prospects and, in most cases, generate free cash flow. Over full market cycles, the investment style is designed with the objective of capturing part of the up market cycles and may offer protection in down market cycles. <br /><br />Under normal circumstances, the fund invests in equity securities or equity-linked instruments of issuers located throughout the world, including issuers in emerging markets countries and issuers in the United States. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. As of September 30, 2012, the fund was invested in issuers representing approximately 15 different countries. virtus.com 0.0676 <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> Worst Quarter: 2012-06-30 The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. -0.0194 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br/><br/>The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. Returns do not reflect sales charges and would be lower if they did. <b>Performance Information </b> <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusGlobalCommoditiesStockFund column period compact * ~</div> In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Best Quarter: The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 2010-09-30 The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 73% of the average value of its portfolio. 0.1639 Worst Quarter: 2008-09-30 <b><a name="toc458392_17"></a>Virtus Global Real Estate Securities Fund </b> <b>Investment Objective </b> -0.1655 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusGlobalCommoditiesStockFundBarChart column period compact * ~</div> 0.73 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0575 0 0 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. virtus.com 800-243-1574 The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 0.0085 0.0085 0.0085 Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 2% during the fourth and fifth years and to 0% after the fifth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0025 0.01 0 Returns do not reflect sales charges and would be lower if they did. 0.011 0.011 0.011 <b>Virtus Global Premium AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Fund </b> Restated to reflect current expenses. 0.0001 0.0001 0.0001 0.0221 0.0296 0.0196 Restated to reflect current expenses. Best Quarter: 786 2003-06-30 399 199 0.1907 Worst Quarter: 2008-12-31 1226 915 615 -0.2092 1692 1557 1057 2973 3280 2285 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 786 299 199 1226 915 615 1692 1557 1057 2973 3280 2285 0.01 0.01 0 0.2308 0.005 0.234 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSGLOBALOPPORTUNITIESFUND column period compact * ~</div> The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any underlying investment companies in which the fund invests. The principal risks of investing in the fund are: <ul type="square"><li><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li></ul><ul type="square"><li><blockquote><b>Closed-End Funds Risk.</b> The risk that closed-end funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility. Closed-end funds frequently trade at a discount from their net asset value, which may affect whether the fund will realize gain or loss upon its sale of the closed-end funds&#8217; shares. Closed-end funds may employ leverage, which also subjects the closed-end fund to increased risks such as increased volatility.</blockquote></li></ul> The principal risks attributable to the underlying investment companies in which the fund invests are:<ul type="square"><li><blockquote><b>Commodity Risk.</b> The risk that investments in commodities or commodity-linked notes will subject the fund&#8217;s portfolio to greater volatility than investments in traditional securities, or that commodity-linked instruments will experience returns different from the commodities they attempt to track.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Convertible Securities Risk.</b> The fund&#8217;s investments in convertible securities subject the fund to the risks associated with both fixed-income securities and common stocks, in addition to the risk that a convertible security may be called for redemption at a time and price unfavorable to the fund.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Derivatives Risk.</b> The risk that the fund will incur a loss greater than the fund&#8217;s investment in, or will experience greater share price volatility as a result of investing in, a derivative contract. Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage, or to attempt to increase yield.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Equity-Linked Instruments Risk.</b> The risk that, in addition to market risk and other risks of the referenced equity security, the fund may experience a return that is different from that of the referenced equity security. Equity-linked instruments also subject the fund to counterparty risk, including the risk that the issuing entity may not be able to honor its financial commitment, which could result in a loss of all or part of the fund&#8217;s investment.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Equity Real Estate Investment Trust (REIT) Securities Risk.</b> The risk that, in addition to the risks associated with investing in the real estate industry, the value of the fund&#8217;s shares will be negatively affected by factors specific to investing through a pooled vehicle, such as through poor management of a REIT or REIT-like entity, concentration risk, or other risks typically associated with investing in small or medium market capitalization companies.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Growth Stocks Risk.</b> The risk that the fund&#8217;s investments in growth stocks will be more volatile than investments in other types of stocks, or will perform differently from the market as a whole and from other types of stocks.</blockquote></li></ul> <ul type="square"><li><blockquote><b>High Yield-High Risk Fixed Income Securities Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Income Risk.</b> The risk that income received from the fund will vary widely over the short- and long-term.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Industry/Sector Concentration Risk.</b> The risk that events negatively affecting an industry or market sector in which a fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Infrastructure-Related Investment Risk.</b> The risk that the value of the fund&#8217;s shares will decrease as a result of conditions, such as general or local economic conditions and political developments, changes in regulations, environmental problems, casualty losses, and changes in interest rates, negatively affecting the infrastructure companies in which the fund invests.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Limited Number of Investments Risk.</b> The risk that the fund&#8217;s portfolio will be more susceptible to factors adversely affecting issuers of securities in the fund&#8217;s portfolio than would a fund holding a greater number of securities.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Liquidity Risk.</b> The risk that certain securities may be difficult or impossible to sell at the time and price beneficial to the fund.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Loan Participation Risk.</b> The risk that there may not be a readily available market for loan participation interests and, in some cases, the fund may have to dispose of such securities at a substantial discount from face value. Loan participations also involve the credit risk associated with the underlying corporate borrower.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Market Volatility Risk.</b> The value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Master Limited Partnership (MLP) Risk.</b> The risk that the fund&#8217;s investments in MLP units will be negatively impacted by tax law changes, regulatory developments or other factors affecting the MLP&#8217;s underlying assets.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> The risk that changes in interest rates will cause both extension and prepayment risks for mortgage-backed and asset-backed securities in which the fund invests, or that an impairment of the value of collateral underlying such securities will cause the value of the securities to decrease.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Municipal Bond Market Risk.</b> The risk that events negatively impacting a particular municipal security, or the municipal bond market in general, will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Preferred Stock.</b> The risk that a preferred stock will decline in price, fail to pay dividends when expected, or be illiquid.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Real Estate Risk.</b> The risk that the value of the fund&#8217;s shares will be negatively affected by changes in real estate values or economic conditions, credit risk and interest rate fluctuations, and changes in the value of the underlying real estate and defaults by borrowers.</blockquote></li></ul><ul type="square"><li><blockquote><b>Sector Focused Investing Risk.</b> The risk that events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul><ul type="square"><li><blockquote><b>Short Sales Risk.</b> The risk that a fund may experience a loss if the price of a borrowed security increases between the date of a short sale and the date on which the fund replaces the security.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Tax-Exempt Securities Risk.</b> The risk that tax-exempt securities may not provide a higher after-tax return than taxable securities.</blockquote></li></ul> <ul type="square"><li><blockquote><b>Unrated Fixed Income Securities Risk.</b> The risk that the subadviser will be unable to accurately assess the quality of an unrated fixed income security, so that the fund invests in a security with greater risk than intended, or that the liquidity of unrated fixed income securities in which the fund invests will be hindered, making it difficult for the fund to sell them.</blockquote></li></ul> <ul type="square"><li><blockquote><b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States. </blockquote></li></ul> <ul type="square"><li><blockquote><b>Value Stocks Risk.</b> The risk that the fund will underperform when value investing is out of favor or that the fund&#8217;s investments will not appreciate as anticipated.</blockquote></li></ul> Under normal circumstances, the fund invests in closed-end investment companies that primarily invest in equity and income-producing securities. The investment methodology utilizes a number of factors and consists of both a quantitative and qualitative approach to identify opportunities across the entire universe of closed-end funds. The overall investment philosophy is predicated on recognizing the recurring valuation patterns found in the closed-end fund industry and capitalizing on opportunities in a systematic manner. The strategy seeks to exploit the discount and premium spreads associated with closed-end funds. The fund may also allocate assets to other investment company structures, including exchange-traded funds (&#8220;ETFs&#8221;), equity securities, including common and preferred stocks, cash, and/or short term cash equivalents. <br/><br/>The fund primarily invests in closed-end funds whose principal investments strategies include one or more of the following:<br/><br/>Domestic Funds<ul type="square"><li style="margin-left:80px"><blockquote>Municipal Bond, Build America Bond, Government Bond, Corporate Bond, High Yield Bond</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Equity&#8212;Sector Specific (such as Utilities, Real Estate, MLPs), Equity&#8212;Covered Call, Equity&#8212;General, Equity&#8212;Growth &amp; Income, Equity&#8212;Dividend, Equity&#8212;Tax-Advantaged, Equity&#8212;Preferreds, Equity&#8212;Convertible Bond</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Loan Participation</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Mortgage-Backed</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Multi-Strategy</blockquote></li></ul>Non-U.S. Funds<ul type="square"><li style="margin-left:80px"><blockquote>Foreign Equity&#8212;Country Specific, Foreign Equity&#8212;Geographic Region, Global Equity&#8212;General, Global Equity&#8212;Growth &amp; Income, Global Equity&#8212;Dividend</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Global Fixed Income</blockquote></li></ul><ul type="square"><li style="margin-left:80px"><blockquote>Global Multi-Strategy</blockquote></li></ul>The closed-end funds that invest in equity securities may or may not use a growth or value strategy and may include funds investing in securities of issuers of any market capitalization. Closed-end funds that invest in non-U.S issuers may include issuers in emerging markets. Closed-end funds that invest in fixed income securities may invest in securities of any credit quality, including below investment grade (so-called &#8220;junk bonds&#8221;). <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> This fund seeks to provide investors with access to high-quality international companies. The securities selected for inclusion in the fund are those that in the opinion of the subadviser are well-managed businesses with consistent operating histories and financial performance that have favorable long-term economic prospects and, in most cases, generate free cash flow. Over full market cycles, the investment style is designed with the objective of capturing part of the up market cycles and may offer protection in down market cycles. <br /><br />Under normal circumstances, at least 80% of the fund&#8217;s assets are invested in equity securities or equity-linked instruments of issuers located outside the United States, including issuers in emerging markets countries. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left:20px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li><li style="margin-left:20px"><blockquote> <b>Equity-Linked Instruments Risk. </b> The risk that, in addition to market risk and other risks of the referenced equity security, the fund may experience a return that is different from that of the referenced equity security. Equity-linked instruments also subject the fund to counterparty risk, including the risk that the issuing entity may not be able to honor its financial commitment, which could result in a loss of all or part of the fund&#8217;s investment.</blockquote></li><li style="margin-left:20px"><blockquote><b> Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li><li style="margin-left:20px"><blockquote> <b>Growth Stocks Risk.</b> The risk that the fund&#8217;s investments in growth stocks will be more volatile than investments in other types of stocks, or will perform differently from the market as a whole and from other types of stocks.</blockquote></li><li style="margin-left:20px"><blockquote><b> Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li><li style="margin-left:20px"><blockquote> <b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods. </blockquote></li></ul> The fund has a primary investment objective of long-term capital appreciation, with a secondary investment objective of income. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSGLOBALOPPORTUNITIESFUND column period compact * ~</div> 0.163 0.0834 0.1283 0.2245 0.237 0.16 0.2254 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSGLOBALDIVIDENDFUND column period compact * ~</div> 0.3058 0.2731 0.2483 0.3163 0.3297 0.2296 0.328 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSGLOBALDIVIDENDFUNDBarChart column period compact * ~</div> Shareholder Fees (fees paid directly from your investment) In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 31% of the average value of its portfolio. <b>Investments, Risks and Performance<br /><br />Principal Investment Strategies</b> The fund provides global exposure to the real estate securities market, focusing exclusively on companies with a rental business profile. Rental companies derive 70% or more of total revenue from rental income and are most similar in business profile to U.S. real estate investment trusts (&#8220;REITs&#8221;). <br /><br />Under normal circumstances, the fund invests at least 80% of its assets in equity securities issued by U.S. and non-U.S companies of any capitalization that are principally engaged in the real estate industry, including common stock, preferred stock and other equity securities issued by real estate companies, such as REITs and similar REIT-like entities. The fund, under normal market conditions, will hold at least 40% of its assets in non-U.S. issuers. Additionally, the fund normally invests in real estate-related securities of issuers in developed countries; however it may invest up to 20% of its assets in issuers incorporated in emerging market countries. The fund concentrates its assets in the real estate industry and is non-diversified under federal securities laws. <b>Principal Risks </b> January 31, 2014 0.03 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left:20px"><blockquote><b> Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Equity REIT Securities Risk.</b> The risk that, in addition to the risks associated with investing in the real estate industry, the value of the fund&#8217;s shares will be negatively affected by factors specific to investing through a pooled vehicle, such as through poor management of a REIT or REIT-like entity, concentration risk, or other risks typically associated with investing in small or medium market capitalization companies.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Equity Securities Risk. </b>The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Foreign Investing Risk. </b>The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Industry/Sector Concentration Risk.</b> The risk that events negatively affecting real estate securities will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. Since the fund concentrates its assets in real estate related securities, the fund is more vulnerable to conditions that negatively affect real estate related securities as compared to a fund that does not concentrate holdings in such securities.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> <ul type="square"><li style="margin-left:20px"><blockquote><b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> <b><a name="toc458392_19"></a>Virtus Greater European Opportunities Fund </b> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. <b>Investment Objective </b> 50000 The fund has an investment objective of long-term capital appreciation. <b>Fees and Expenses </b> Estimated for current fiscal year. The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The fund has not had a full calendar year of operations; therefore, performance information is not shown. <b>Principal Risks </b> <b>Principal Risks </b> <b>Performance Information</b> 0.0575 0 0 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br /><br />The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b> 0 Returns do not reflect sales charges and would be lower if they did. <br /><br />Annual Return (%) <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusHerzfeldFund column period compact * ~</div> 0.01 0.01 <b>Performance Information </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after eight years. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.01 0.01 0.01 0.0025 0.01 0 <b>Portfolio Turnover</b> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSGLOBALOPPORTUNITIESFUNDBarChart column period compact * ~</div> 0.0156 0.0156 0.0156 <b>Average Annual Total Returns </b> (for the periods ended 12/31/12) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 0.0001 0.0001 0.0001 0.0282 0.0357 0.0257 Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The FTSE EPRA/NAREIT Developed Rental Index is a free-float market capitalization index measuring global real estate securities, which meet minimum size, liquidity and investment focus criteria. The FTSE EPRA/NAREIT Index (net) is calculated on a total-return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 844 460 260 1399 1094 799 1978 1850 1365 3541 3836 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2010:&nbsp;&nbsp;&nbsp;&nbsp;17.74%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-16.99%</td></tr></table></div> </div> 2905 844 360 260 1399 1094 799 1978 1850 1365 3541 3836 2905 0.2573 -0.0999 0.2459 0.1743 0.1339 0.087 0.236 0.2489 0.16 0.2231 0.1812 0.1559 0.1423 0.1912 0.2035 0.1694 0.1887 <b>Investment Objective </b> <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after eight years. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 92% of the average value of its portfolio. <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> 0.0575 The fund is appropriate for investors seeking diversification and the potential rewards associated with investing in high-yield fixed income securities. High-yield fixed income securities are those that are rated below investment grade. The subadviser uses an investment process that focuses on adding value through issue selection, sector/industry selection and opportunistic trading. The fund will generally overweight those sectors and industries where the subadviser identifies well-valued companies whose business profiles are viewed to be improving. The subadviser attempts to maintain the duration of the fund at a level similar to that of its style benchmark, the Barclay&#8217;s Capital U.S. High Yield 2% Issuer Capped Index. Under normal circumstances, the fund invests at least 80% of its assets in high yield fixed income securities. 0 0 <b>Principal Risks </b> 0 0.0085 0.0085 0.0085 0.0025 0.01 0 <b>Example </b> 0.0063 0.0063 0.0063 This fund seeks to offer investors exposure to European market economies through well-established companies. The securities selected for inclusion in the fund are believed by the subadviser to be well-managed businesses with consistent operating histories and financial performance that have favorable long-term economic prospects and, in most cases, generate free cash flow. Over full market cycles, the investment style is designed with the objective of capturing part of the up market cycles and may offer protection in down market cycles. <br/><br/>Under normal circumstances, at least 80% of the fund&#8217;s assets are invested in equity securities or equity-linked instruments of issuers located in Europe, including issuers in emerging markets countries. Equity-linked securities are hybrid debt securities whose return is connected to an underlying equity, usually a stock. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. In determining the &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li><li style="margin-left:20px"><blockquote><b>Equity-Linked Instruments Risk.</b> The risk that, in addition to market risk and other risks of the referenced equity security, the fund may experience a return that is different from that of the referenced equity security. Equity-linked instruments also subject the fund to counterparty risk, including the risk that the issuing entity may not be able to honor its financial commitment, which could result in a loss of all or part of the fund&#8217;s investment.</blockquote></li><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li><li style="margin-left:20px"><blockquote><b> Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li><li style="margin-left:20px"><blockquote><b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li><li style="margin-left:20px"><blockquote><b> Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> 0.0001 0.0001 0.0001 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 0.0174 <b>Calendar year total returns for Class A Shares</b> 0.0249 0.0149 Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) <b>Average Annual Total Returns</b> (for the periods ended 12/31/12) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2012:&nbsp;&nbsp;&nbsp;&nbsp;11.53%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-13.30%</td></tr></table></div> </div> The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The MSCI Europe Index (net) is a free float-adjusted market capitalization weighted index measuring the equity market performance of the developed markets in Europe. The MSCI Europe Index (net) is calculated on a total-return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 2009-04-21 2009-04-21 2009-04-21 0.31 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.01 0.01 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 0.49 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 50000 <ul type="square"><li style="margin-left:20px"><blockquote><b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 virtus.com 0.0575 0 Restated to reflect current expenses. 0 The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. Returns do not reflect sales charges and would be lower if they did. 0 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. 0.01 0.01 In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Performance Information </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusGlobalRealEstateSecuritiesFund column period compact * ~</div> If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Best Quarter: 0.01 0.01 2012-03-31 0.01 0.1153 Worst Quarter: 2011-09-30 -0.133 742 352 152 0.0025 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusGlobalRealEstateSecuritiesFundBarChart column period compact * ~</div> 0.01 0 <b>Fees and Expenses </b> 1091 776 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 471 Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) 0.0057 0.0057 0.0057 742 252 152 1091 776 471 <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0182 0.0257 1464 0.0157 1326 813 <b>Portfolio Turnover </b> 2509 2826 1779 <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 1464 0 1326 0 813 0 0 2509 2826 1779 <b>Principal Risks </b> <b>Performance Information </b> 0.1842 0.1417 0.0921 0.2475 0.16 0.2598 0.1912 Best Quarter: 0.164 0.1427 0.1745 0.1856 0.1739 0.1327 Worst Quarter: 0.1443 2010-09-30 2011-09-30 Shareholder Fees (fees paid directly from your investment) 0.1774 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your <br/> investment) -0.1699 -0.0201 0.1584 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. 749 360 160 1115 799 496 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 1365 1504 855 0.0918 0.0663 0.0431 0.1482 0.1599 0.16 0.1732 0.0582 0.0454 0.0412 0.076 0.087 0.1331 0.0533 Restated to reflect current expenses. 2589 2905 1867 2009-04-21 2009-04-21 2009-04-21 2010-09-16 2010-09-16 2010-09-16 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusInternationalEquityFund column period compact * ~</div> 0.0719 0.0094 0.2564 260 799 1365 2905 <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVirtusInternationalSmall-CapFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVirtusInternationalSmall-CapFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusInternationalSmall-CapFund column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusInternationalEquityFundBarChart column period compact * ~</div> 0.0575 0 0 The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The Barclays Capital U.S. High-Yield 2% Issuer Capped Bond Index is a market capitalization-weighted index that measures fixed rate non-investment grade debt securities of U.S. and non-U.S. corporations. No single issuer accounts for more than 2% of market cap. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment. <br/><br/> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0.01 0.01 0 749 160 1115 496 1504 855 0.0575 0 0 0.0085 0.0085 0.0085 2589 1867 0 0.0025 0 0.01 0.0158 0.0158 0.0158 0.0268 0.0343 0.0243 0.01 0.01 <b><a name="toc458392_22"></a>Virtus International Equity Fund </b> <b>Investment Objective </b> The fund has an investment objective of long-term capital appreciation. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009: &nbsp;&nbsp;&nbsp;&nbsp;11.27% &nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp; -14.67%</td></tr></table></div> </div> 0.92 Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. <b>Example </b> 50000 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. <b>Portfolio Turnover </b> The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Principal Risks </b> Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. <b>Performance Information </b> After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Virtus High Yield Fund </b> <b>Virtus Greater Asia ex Japan Opportunities Fund</b> Restated to reflect current expenses. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 40% of the average value of its portfolio. <b>Investments, Risks and Performance<br /><br />Principal Investment Strategies </b> This fund seeks to offer investors exposure to Asian market economies, with the exception of Japan, through well-established companies. The portfolio invests in what the subadviser believes to be well-managed businesses with consistent operating histories and financial performance that have favorable long-term economic prospects and, in most cases, generate free cash flow. Over full market cycles, the investment style is designed with the objective of capturing part of the up market cycles and may offer protection in down market cycles.<br /><br />Under normal circumstances, at least 80% of the fund&#8217;s assets are invested in equity securities or equity-linked instruments of issuers located in Asia (excluding Japan), including issuers in emerging markets. Equity-linked securities are hybrid debt securities whose return is connected to an underlying equity, usually a stock. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. In determining the &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li><blockquote> <b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li><blockquote> <b>Equity-Linked Instruments Risk. </b> The risk that, in addition to market risk and other risks of the referenced equity security, the fund may experience a return that is different from that of the referenced equity security. Equity-linked instruments also subject the fund to counterparty risk, including the risk that the issuing entity may not be able to honor its financial commitment, which could result in a loss of all or part of the fund&#8217;s investment.</blockquote></li></ul> <ul type="square"><li><blockquote> <b> Equity Securities Risk. </b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li><blockquote> <b> Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Market Volatility Risk. </b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b> Returns do not reflect sales charges and would be lower if they did.<br /><br />Annual Return (%) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2010:&nbsp;&nbsp;&nbsp;&nbsp;17.70%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-11.67%</td></tr></table></div> </div> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 2% during the fourth and fifth years and to 0% after the fifth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12) The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The MSCI AC Asia Pacific ex Japan Index (net) is a free float-adjusted market capitalization weighted index measuring the equity market performance of developed and emerging markets in Asia (excluding Japan), as well as Australia and New Zealand. The MSCI AC Asia Pacific ex Japan Index (net) is calculated on a total-return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Returns do not reflect sales charges and would be lower if they did. 0.4 Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. Best Quarter: 2010-09-30 0.177 Worst Quarter: 2011-09-30 -0.1167 The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left: 5px"><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Industry/Sector Concentration Risk.</b> The risk that events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent that the fund invests a significant portion of its portfolio in one or more industries (such as communications, consumer cyclicals and consumer non-cyclicals) or sectors, the fund is more vulnerable to conditions that negatively affect such industries or sectors as compared to a fund that is not significantly invested in such industries or sector.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Long-Term Maturities/Durations Risk.</b> The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> The risk that changes in interest rates will cause both extension and prepayment risks for mortgage-backed and asset-backed securities in which the fund invests, or that an impairment of the value of collateral underlying such securities will cause the value of the securities to decrease.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that the impairment of the value of collateral underlying a mortgage-backed or asset-backed security, such as due to non-payment of loans, will result in a reduction in the value of such security.</blockquote></li></ul> Restated to reflect current expenses. 0.1865 0.0796 0.0175 0.0811 0.0224 -0.2391 0.3115 0.1258 0.0312 0.1619 Best Quarter: 2009-06-30 0.1127 Worst Quarter: 2008-12-31 -0.1467 0.0375 0 0 0 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusGreaterAsiaexJapanOpportunitiesFund column period compact * ~</div> 0.005 0.05 0.01 0 <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSHIGHYIELDFUND column period compact * ~</div> <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusGreaterAsiaexJapanOpportunitiesFundBarChart column period compact * ~</div> This fund offers investors exposure primarily to mid- to large capitalization international companies, but it is not limited to investing in the securities of companies of any particular size. The subadviser uses a value-driven, absolute return approach to investing. The subadviser&#8217;s process is a mixture of country allocation and stock selection, with a recognition that a significant portion of long-term performance and risk reduction will come from the country allocation decision. <br /><br />Under normal circumstances, the fund invests at least 80% of its assets in equity securities of issuers located outside the United States, including issuers in emerging markets countries. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. In determining the &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left: 5px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in small and medium-sized companies may be more volatile than investments in larger companies.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul> <ul type="square"><li style="margin-left: 5px"><blockquote><b>Value Stocks Risk.</b> The risk that the fund will underperform when value investing is out of favor or that the fund&#8217;s investments will not appreciate in value as anticipated.</blockquote></li></ul> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br /><br />The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 0.0065 0.0065 0.0065 0.0065 0.0025 0.01 0.01 0 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSHIGHYIELDFUND column period compact * ~</div> 0.0041 0.0041 0.0041 0.0041 0.0131 0.0206 0.0206 0.0106 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSHIGHYIELDFUND column period compact * ~</div> The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The MSCI EAFE<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index (net) is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSHIGHYIELDFUND column period compact * ~</div> 503 609 309 108 775 846 646 337 1108 1066 1108 585 1895 2197 2390 1294 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSHIGHYIELDFUNDBarChart column period compact * ~</div> 831 446 246 1359 1053 758 1913 1784 1296 3414 3712 2766 503 209 209 108 775 646 646 337 1066 1108 1108 <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSHIGHYIELDFUND column period compact * ~</div> 585 1895 2197 2390 1294 0.1184 0.0465 0.0302 0.1109 0.1522 0.0422 0.1578 0.0169 0.0195 0.0535 0.0535 0.0595 0.1045 831 346 246 1359 1053 758 1913 1784 1296 3414 3712 2766 0.0644 0.0332 0.0344 0.0605 0.0606 0.0518 0.106 <b>Calendar year total returns for Class A Shares </b> Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2012:&nbsp;&nbsp;&nbsp;&nbsp;7.52%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-13.59%</td></tr></table></div> </div> <b>Average Annual Total Returns </b> (for the periods ended 12/31/12) 0.0589 0.009 0.0524 Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. Restated to reflect current expenses. The Total Annual Fund Operating Expenses do not correlate to the ratio of expense to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating expenses of the fund and do not include acquired fund fees and expenses. 0.0375 0 0 0 0.25 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 0 0.005 0.05 0.01 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVirtusGreaterEuropeanOpportunitiesFundBarChart column period compact * ~</div> 0.0055 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. 0.0055 0.0055 0.0055 0.01 0.01 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 0.01 0.0025 The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 0.01 0.0025 0.01 0.01 0 0 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 0.0093 0.0033 0.0093 0.0033 Returns do not reflect sales charges and would be lower if they did. 0.0093 0.0033 0.0033 0.0113 0.0218 0.0188 0.0293 0.0188 0.0193 0.0088 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. -0.0058 -0.0058 -0.4673 -0.0058 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVirtusGreaterEuropeanOpportunitiesFund column period compact * ~</div> In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. 0.3866 0.1883 0.0135 0.0235 0.016 -0.1086 0.3487 0.0532 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusGreaterEuropeanOpportunitiesFund column period compact * ~</div> 0.2711 0.1696 0.1102 0.3398 0.3525 0.16 0.3076 -0.0011 -0.0285 -0.0194 0.0035 0.0135 0.0166 -0.0049 338 728 137 1165 -0.0227 852 -0.0492 -0.0366 -0.0189 -0.009 0.0068 -0.0279 486 591 291 90 550 721 791 591 281 Best Quarter: 2012-08-08 974 1016 2012-03-31 852 1016 0.0752 488 Worst Quarter: 238 2011-09-30 1698 2005 -0.1359 2201 1084 728 137 2009-03-02 2009-03-02 2009-03-02 1165 550 <b>Investment Objective </b> The fund has an investment objective of capital appreciation. 486 191 191 <b>Fees and Expenses </b> 90 The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) 721 591 591 281 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 974 1016 <b>Example </b> 1016 488 2007-10-01 This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same and that the expense reimbursement arrangement remains in place only for the period indicated. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1698 2005 2201 1084 The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the period from inception (September 5, 2012) through its fiscal year end (September 30, 2012), the fund&#8217;s portfolio turnover rate was 0% of the average value of its portfolio. 2007-10-01 2007-10-01 <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> The fund pursues capital appreciation in the small-cap international arena. The fund invests in a select group of small-cap companies believed by the subadviser to be undervalued relative to their future market growth potential. The investment strategy emphasizes companies that the subadviser believes to have a sustainable competitive advantage, strong management and low financial risk and to be able to grow over market cycles.<br/><br/> Under normal circumstances, the fund invests at least 80% of its assets in equity securities of non-U.S. small capitalization companies. As of the date of the Prospectus, the fund&#8217;s subadviser considers small-capitalization companies to be those companies that, at the time of initial purchase, have market capitalizations of between $75 million and $5 billion. The fund intends to diversify its investments among countries and normally to have represented in the portfolio business activities of a number of different countries. In determining &#8220;location&#8221; of an issuer, the subadviser primarily relies on the country where the issuer is incorporated. However, the country of risk is ultimately determined based on analysis of the following criteria: actual building address (domicile), primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. This evaluation is conducted so as to determine that the issuer&#8217;s assets are exposed to the economic fortunes and risks of the designated country. Equity securities in which the fund invests include common stocks, preferred stocks and American Depositary Receipts (ADRs). The fund may invest in emerging markets issuers. Generally, the fund invests in approximately 30-60 securities at any given time and invests in issuers in approximately 20 countries. <b>Principal Risks </b> 0.1793 0.0763 The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0.0119 <b>Investment Objective </b> 0.0797 0.0262 -0.2235 <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. 0.4235 <b>Performance Information </B> 0.1324 Shareholder Fees (fees paid directly from your investment) 0.0319 0.1408 0.098 0.0278 0.0181 0.0899 0.1333 0.1446 0.0422 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0 <b>Example </b> 0.0378 0.0371 0.0725 0.0728 0.0595 <b>Portfolio Turnover </b> The fund has not had a full calendar year of operations; therefore, performance information is not shown. 0.0728 0.0444 0.0434 0.069 0.0691 0.0518 <b>Principal Risks </b> 0.1086 0.0564 <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVirtusInternationalEquityFund column period compact * ~</div> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. January 31, 2014 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 Estimated for current fiscal year. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. <b>Portfolio Turnover </b> 2009-10-01 <b>Investment Objective </b> The fund has an investment objective of long-term capital appreciation. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Investment Objective </b> The fund has an investment objective of providing high current income while attempting to limit changes in the fund&#8217;s net asset value per share caused by interest rate changes. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Virtus Multi-Sector Short Term Bond Fund </b> <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after six years. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 52% of the average value of its portfolio. <b>Portfolio Turnover</b> Shareholder Fees (fees paid directly from your investment) The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li><li style="margin-left:20px"><blockquote><b> Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li><li style="margin-left:20px"><blockquote><b> Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li><li style="margin-left:20px"><blockquote><b>Limited Number of Investments Risk.</b> The risk that the fund&#8217;s portfolio will be more susceptible to factors adversely affecting issuers of securities in the fund&#8217;s portfolio than would a fund holding a greater number of securities.</blockquote></li><li style="margin-left:20px"><blockquote><b> Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li><li style="margin-left:20px"><blockquote><b>Small Market Capitalization Companies Risk.</b> The risk that the fund&#8217;s investments in small market capitalization companies will increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.</blockquote></li></ul> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the<br/> value of your investment) <b>Investments, Risks and Performance </b><br/><br/><b>Principal Investment Strategies </b> <b>Principal Risks </b> Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0724 <b>Portfolio Turnover </b> The fund seeks to track the Premium AlphaSector<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> Index (ASRP), a public index published by NASDAQ. The fund may be invested in ETFs and/or securities representing the primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index and high-quality short-term securities. The primary sectors of the S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index represented are: consumer discretionary, consumer staples, energy, financials, healthcare, industrials, materials, technology, and utilities. Allocations are based on a proprietary quantitative model that seeks to evaluate &#8220;true&#8221; underlying trends within each sector by adjusting for unwarranted price distortions and changing levels of volatility in the market. The fund has the flexibility to be invested in any combination of the sector ETFs and/or securities, a combination of sector ETFs and/or securities and high-quality short-term securities, or 100% in high-quality short-term securities. The fund may invest in a basket of securities to represent a sector if it determines that investment in the ETF for that sector is not feasible or otherwise not in the best interest of the fund. The fund may also deviate from tracking the Premium AlphaSector Index and/or the model allocation if it is determined that tracking the Index and/or the model allocation is likely to violate applicable legal or regulatory restrictions or otherwise result in adverse consequences for the fund. <b>Principal Risks </b> <b>Investment Objective </b> The fund has an investment objective of maximizing current income while preserving capital. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. In the case of Class B Shares, it assumes that your shares are converted to Class A Shares after eight years. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <b>Portfolio Turnover </b> The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left: 5px"><blockquote><b>Credit Risk.</b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Emerging Market Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> The risk that changes in interest rates will cause both extension and prepayment risks for mortgage-backed and asset-backed securities in which the fund invests, or that an impairment of the value of collateral underlying such securities will cause the value of the securities to decrease.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that the U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> <b>Principal Risks </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVirtusInternationalSmall-CapFund column period compact * ~</div> The fund seeks current income with an emphasis on maintaining low volatility and overall short duration by investing primarily in higher quality, more liquid securities across 14 bond market sectors. The fund utilizes a value-oriented, research driven approach that seeks to strategically overweight undervalued sectors while applying strict risk controls.<br/><br />Under normal circumstances, the fund invests at least 80% of its assets in bonds, which are fixed income debt obligations of various types of issuers. The fund seeks to achieve its objective by investing in a diversified portfolio of primarily short-term fixed income securities having an expected dollar-weighted average maturity of three years or less and that are in one of the following market sectors:<ul type="square"><li style="margin-left: 5px"><blockquote>Securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, authorities or instrumentalities, including collateralized mortgage obligations, real estate mortgage investment conduits and other pass-through securities;</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>Debt securities issued by foreign issuers, including foreign governments and their political subdivisions, and issuers located in emerging markets;</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>Investment-grade securities; and</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote>High yield-high risk fixed income securities (so called &#8220;junk bonds&#8221;).</blockquote></li></ul>The fund may invest in all or some of these sectors. <b>Performance Information </b> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br/><br/>The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) <b>Performance Information </b> <b>Performance Information </b> <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009:&nbsp;&nbsp;&nbsp;&nbsp;10.79% &nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-9.05%</td></tr></table></div> </div> <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) <b>Virtus International Small-Cap Fund </b> Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The B of A Merrill Lynch 1-2.99 Year Medium Quality Corporate Bond Index measures performance of U.S. corporate bond issues rated BBB and A by Standard and Poor&#8217;s with maturities between one and three years. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Virtus International Real Estate Securities Fund </b> The fund has a primary investment objective of long-term capital appreciation, with a secondary investment objective of income. The fund provides international exposure to the real estate securities market, focusing exclusively on companies with a rental business profile. Rental companies derive 70% or more of total revenue from rental income and are most similar in business profile to U.S. real estate investment trusts (&#8220;REITs&#8221;). <br /><br />Under normal circumstances, the fund invests at least 80% of its assets in equity securities issued by non-U.S companies of any capitalization that are principally engaged in the real estate industry, including common stock, preferred stock and other equity securities issued by real estate companies, such as REITs and similar REIT-like entities. The fund may, at times, invest up to 20% of its assets in U.S. REIT securities. Additionally, the fund normally invests in real estate related securities of issuers in developed countries, however it may invest up to 20% of its assets in issuers incorporated in emerging market countries. The fund concentrates its assets in the real estate industry and is non-diversified under federal securities laws. The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li style="margin-left: 5px"><blockquote> <b> Emerging Market Investing Risk.</b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Equity REIT Securities Risk.</b> The risk that, in addition to the risks associated with investing in the real estate industry, the value of the fund&#8217;s shares will be negatively affected by factors specific to investing through a pooled vehicle, such as through poor management of a REIT or REIT-like entity, concentration risk, or other risks typically associated with investing in small or medium market capitalization companies.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods. Investments in smaller companies may be more volatile than investments in larger companies.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Foreign Investing Risk.</b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Geographic Concentration Risk.</b> The risk that events negatively affecting the geographic location where the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Industry/Sector Concentration Risk.</b> The risk that events negatively affecting real estate securities will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. Since the fund concentrates its assets in real estate related securities, the fund is more vulnerable to conditions that negatively affect real estate related securities as compared to a fund that does not concentrate holdings in such securities.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li style="margin-left: 5px"><blockquote> <b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b> Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2009:&nbsp;&nbsp;&nbsp;&nbsp;31.59%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-30.74%</td></tr></table></div> </div> <b>Average Annual Total Returns </b> (for the periods ended 12/31/12) Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 41% of the average value of its portfolio. 0.52 <b>Investments, Risks and Performance</b><br/><br/><b>Principal Investment Strategies </b> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. <b>Virtus Multi-Sector Fixed Income Fund</b> The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Shareholder Fees (fees paid directly from your investment) 800-243-1574 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your<br/> investment) virtus.com You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. <b>Investments, Risks and Performance </b><br /><br /><b>Principal Investment Strategies </b> The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 50000 The fund seeks to generate high current income and total return while preserving capital by applying extensive credit research and a time-tested approach designed to capitalize on opportunities across undervalued sectors of the bond market. The portfolio seeks diversification among 14 sectors in an effort to increase return potential and reduce risk.<br /><br />Under normal circumstances, the fund invests at least 80% of its assets in the following sectors of fixed income securities: <ul type="square"><li><blockquote> Securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, authorities or instrumentalities, including collateralized mortgage obligations, real estate mortgage investment conduits and other pass-through securities;</blockquote></li></ul><ul type="square"><li><blockquote>Debt securities issued by foreign issuers, including foreign governments and their political subdivisions and issuers located in emerging market countries;</blockquote></li></ul><ul type="square"><li><blockquote>Investment grade securities; and</blockquote></li></ul><ul type="square"><li><blockquote>High yield-high risk fixed income securities of U.S. issuers (so called &#8220;junk bonds&#8221;).</blockquote></li></ul>The fund may invest in all or some of these sectors. 0.41 Returns do not reflect sales charges and would be lower if they did. The fund may not achieve its objectives, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. The principal risks of investing in the fund are: <ul type="square"><li><blockquote> <b>Credit Risk. </b> The risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer&#8217;s ability to make such payments will cause the price of the security to decline.</blockquote></li></ul> <ul type="square"><li><blockquote> <b>Emerging Market Risk. </b> The risk that prices of emerging markets securities will be more volatile, or will be more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.</blockquote></li></ul> <ul type="square"><li><blockquote> <b> Foreign Investing Risk. </b> The risk that the prices of foreign securities in the fund&#8217;s portfolio will be more volatile than those of domestic securities, or will be negatively affected by economic, political or other developments.</blockquote></li></ul> <ul type="square"><li><blockquote> <b> High Yield-High Risk Fixed Income Securities (Junk Bonds) Risk.</b> The risk that the issuers of high yield-high risk securities in the fund&#8217;s portfolio will default, that the prices of such securities will be volatile, and that the securities will not be liquid. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Interest Rate Risk.</b> The risk that when interest rates rise, the values of the fund&#8217;s debt securities, especially those with longer maturities, will fall. </blockquote></li></ul> <ul type="square"><li><blockquote> <b>Long-Term Maturities/Durations Risk. </b> The risk of greater price fluctuations than would be associated with securities having shorter maturities or durations.</blockquote></li></ul><ul type="square"><li><blockquote> <b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li></ul><ul type="square"><li><blockquote><b>Mortgage-Backed and Asset-Backed Securities Risk.</b> The risk that changes in interest rates will cause both extension and prepayment risks for mortgage-backed and asset-backed securities in which the fund invests, or that an impairment of the value of collateral underlying such securities will cause the value of the securities to decrease.</blockquote></li></ul><ul type="square"><li><blockquote><b>U.S. Government Securities Risk.</b> The risk that the U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.<br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574. Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Calendar year total returns for Class A Shares </b>(includes returns of a predecessor fund) Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Returns do not reflect sales charges and would be lower if they did.<br /><br />Annual Return (%) <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) The Barclays Capital U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. The index is unmanaged and not available for direct investment.<br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <ul type="square"><li style="margin-left: 5px"><blockquote> <b> Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> The bar chart shows changes in the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 800-243-1574 0.76 Restated to reflect current expenses. virtus.com The fund may not achieve its objective, and it is not intended to be a complete investment program. The value of the fund&#8217;s investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the adviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of the exchange-traded funds in which the fund invests. The principal risks of investing in the fund are:<ul type="square"><li style="margin-left:20px"><blockquote><b>Correlation to Index Risk.</b> The risk that the performance of the fund and its index may vary somewhat due to factors such as fund flows, transaction costs, sample selection, and timing differences associated with additions to and deletions from its index.</blockquote></li><li style="margin-left:20px"><blockquote><b>Equity Securities Risk.</b> The risk that events negatively affecting issuers, industries or financial markets in which the fund invests, will impact the value of the stocks held by the fund and thus, the value of the fund&#8217;s shares over short or extended periods.</blockquote></li><li style="margin-left:20px"><blockquote><b>Exchange-Traded Funds (ETFs) Risk.</b> The risk that the value of an ETF will be more volatile than the underlying portfolio of securities the ETF is designed to track, or that the costs to the fund of owning shares of the ETF will exceed those the fund would incur by investing in such securities directly.</blockquote></li><li style="margin-left:20px"><blockquote><b>Fund of Funds Risk.</b> The risk that the underlying funds in which the fund invests will expose the fund to negative performance and additional expenses associated with investment in such funds, and increased volatility.</blockquote></li><li style="margin-left:20px"><blockquote><b>Market Volatility Risk.</b> The risk that the value of the securities in which the fund invests may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be temporary or may last for extended periods.</blockquote></li><li style="margin-left:20px"><blockquote><b>Model Portfolio Risk.</b> The risk that investments selected using quantitative models may perform differently from the market as a whole or from their expected performance. There can be no assurance that use of a quantitative model will enable the fund to achieve positive returns or outperform the market.</blockquote></li><li style="margin-left:20px"><blockquote><b>Portfolio Turnover Risk.</b> The risk that the fund&#8217;s principal investment strategies will result in a consistently high portfolio turnover rate. See the &#8220;Portfolio Turnover&#8221; section above for more information about the impact that portfolio turnover can have on fund performance.</blockquote></li><li style="margin-left:20px"><blockquote><b> Sector Focused Investing Risk.</b> The risk that events negatively affecting a particular industry or market sector in which the fund focuses its investments will cause the value of the fund&#8217;s shares to decrease, perhaps significantly. To the extent that the fund invests a significant portion of its portfolio in ETFs representing one or more of the primary sectors of the S&amp;P 500&#174; Index (such as consumer discretionary, energy, healthcare) or in an ETF representing U.S. Treasuries, the fund is more vulnerable to conditions that negatively affect such sectors as compared to a fund that is not significantly invested in such sectors.</blockquote></li><li style="margin-left:20px"><blockquote><b>U.S. Government Securities Risk.</b> The risk that U.S. Government securities in the fund&#8217;s portfolio will be subject to price fluctuations, or that an agency or instrumentality will default on an obligation not backed by the full faith and credit of the United States.</blockquote></li></ul> The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 2% during the fourth and fifth years and to 0% after the fifth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. Returns do not reflect sales charges and would be lower if they did. 50000 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br/><br/>The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574. <b>Calendar year total returns for Class A Shares </b> <b>Investment Objective </b> If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. Best Quarter: The fund has investment objectives of capital appreciation and income with approximately equal emphasis. The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index. 2009-09-30 800-243-1574 virtus.com 0.3159 The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. Worst Quarter: Returns do not reflect sales charges and would be lower if they did. 2008-12-31 -0.3074 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q2/2009:&nbsp;&nbsp;&nbsp;&nbsp;16.15%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-14.37%</td></tr></table></div> </div> Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 0.50% annually to 1% during the third year and to 0% after the third year. The deferred sales charge is imposed on Class T Shares redeemed during the first year only. Returns do not reflect sales charges and would be lower if they did.<br/><br/>Annual Return (%) After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. <b>Average Annual Total Returns </b>(for the periods ended 12/31/12) Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged and not available for direct investment. <br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q1/2012:&nbsp;&nbsp;&nbsp;&nbsp;7.84%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp; Q3/2011:&nbsp;&nbsp;&nbsp;&nbsp;-9.45%</td></tr></table></div> </div> Best Quarter: 2009-06-30 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 0.1615 Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. Worst Quarter: Best Quarter: 2008-12-31 After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. 2009-06-30 0.1079 -0.1437 <b>Fees and Expenses </b> Worst Quarter: 2.97 2008-12-31 -0.0905 In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float adjusted market capitalization-weighted index of 500 of the largest U.S. companies. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is calculated on a total return basis with dividends reinvested. The FTSE EPRA/NAREIT Developed Rental ex-U.S. Index is a free-float market capitalization index measuring international real estate securities, which meet minimum size, liquidity and investment focus criteria. The FTSE EPRA/NAREIT Developed Rental ex-U.S. Index (net) is calculated on a total return basis with net dividends reinvested. The indexes are unmanaged and not available for direct investment. <br /><br />After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <b>Example </b> <b>Portfolio Turnover </b> The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 24% of the average value of its portfolio. <div style="display:none">~ http://www.virtus.com/role/ScheduleShareholderFeesVIRTUSMULTI-SECTORSHORTTERMBONDFUND column period compact * ~</div> 0.0909 0.0481 <b>Investments, Risks and Performance</b><br /><br /><b>Principal Investment Strategies </b> 0.0136 0.0552 0.0315 -0.1396 0.298 0.1025 0.031 0.0939 0.0225 0 0 0 0 <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSINTERNATIONALREALESTATESECURITIESFUND column period compact * ~</div> The fund offers exposure to the equity real estate investment trust (&#8220;REIT&#8221;) market utilizing a Growth at a Reasonable Price style with macroeconomic and fundamental security analysis to identify the most attractive investment candidates. The subadviser believes the value of a REIT extends beyond the value of the underlying real estate and that through fundamental research, it can uncover and exploit inefficiencies in the market.<br/><br/>Under normal circumstances, the fund invests at least 80% of its assets in publicly-traded REITs and companies that are principally engaged in the real estate industry. The fund concentrates its assets in the real estate industry and is non-diversified under federal securities laws. 0.005 0.02 0 0 0.01 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSINTERNATIONALREALESTATESECURITIESFUNDBarChart column period compact * ~</div> <b>Principal Risks </b> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleTransposedVIRTUSMULTI-SECTORSHORTTERMBONDFUND column period compact * ~</div> <b>Performance Information </b> 0.0048 0.0048 0.0048 0.0048 0.0048 0.0025 0.0075 0.005 0 0.01 The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. <br /><br />The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574. 0.0028 0.0028 0.0028 0.0028 <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualFundOperatingExpensesVIRTUSMULTI-SECTORSHORTTERMBONDFUND column period compact * ~</div> 0.0028 0.0101 0.0151 0.0126 0.0076 0.0176 <b>Calendar year total returns for Class A Shares</b> (includes returns of a predecessor fund) <b>Average Annual Total Returns </b>(for the periods ended 12/31/12; includes returns of a predecessor fund) <b>Performance Information</b> <div style="display:none">~ http://www.virtus.com/role/ScheduleExpenseExampleNoRedemptionTransposedVIRTUSMULTI-SECTORSHORTTERMBONDFUND column period compact * ~</div> 50000 You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. Restated to reflect current expenses. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. The bar chart shows the fund&#8217;s performance from year to year over the life of the fund. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index. 800-243-1574 virtus.com The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <div style="display:none">~ http://www.virtus.com/role/ScheduleAnnualTotalReturnsVIRTUSMULTI-SECTORSHORTTERMBONDFUNDBarChart column period compact * ~</div> Best Quarter: 326 301 128 78 176 2012-03-31 0.0784 Worst Quarter: 539 2011-09-30 453 400 243 528 770 755 692 422 880 -0.0945 1433 1310 1523 942 1760 <div> <div class="MetaData"> <p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td width="49%">&nbsp;</td> <td valign="bottom" width="1%">&nbsp;</td> <td width="50%">&nbsp;</td></tr> <tr><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid; padding-left: 8px; border-top: #000000 1px solid;" valign="top" align="center">Best Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q3/2009:&nbsp;&nbsp;&nbsp;&nbsp;32.91%&nbsp;</td> <td style="border-bottom: #000000 1px solid; border-top: #000000 1px solid;" valign="bottom">&nbsp;</td> <td style="border-bottom: #000000 1px solid; padding-right: 8px; border-top: #000000 1px solid; border-right: #000000 1px solid;" valign="bottom" align="center">Worst&nbsp;Quarter:&nbsp;&nbsp;&nbsp;&nbsp;Q4/2008:&nbsp;&nbsp;&nbsp;&nbsp;-38.73%</td></tr></table></div> </div> Returns reflect deduction of maximum sales charges and full redemption at end of periods shown. Restated to reflect current expenses. The S&amp;P 500<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The FTSE NAREIT Equity REITs Index is a free-float market capitalization-weighted index measuring equity tax-qualified REITs, 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 indexes are calculated on a total return basis with dividends reinvested. The indexes are unmanaged and not available for direct investment.<br/><br/>After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Class A Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor&#8217;s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return. <div style="display:none">~ http://www.virtus.com/role/ScheduleAverageAnnualTotalReturnsTransposedVIRTUSMULTI-SECTORSHORTTERMBONDFUND column period compact * ~</div> 326 151 128 78 176 Restated to reflect current expenses. 539 453 400 243 528 770 755 692 422 880 1433 1310 1523 942 1760 0.0373 0.0281 0.0183 0.0924 0.1031 0.16 0.1004 0.0958 0.0828 0.1183 0.1293 0.1647 Returns do not reflect sales charges and would be lower if they did. <br/><br/>Annual Return (%) Restated to reflect current expenses. -0.0021 0.1006 0.0693 0.025 0.0163 0.0737 0.0901 0.0966 0.0849 0.0422 0.24 Generally, Class A Shares are not subject to any charges by the Fund when redeemed; however, a contingent deferred sales charge may be imposed on certain redemptions within 18 months on exchanges from a Virtus non-money market fund into a Virtus money market fund and purchases on which a finder&#8217;s fee has been paid. The 18-month period begins on the last day of the month preceding the month in which the purchase was made. The maximum deferred sales charge is imposed on Class B Shares redeemed during the first year; thereafter, it decreases 1% annually to 2% during the fourth and fifth years and to 0% after the fifth year. The deferred sales charge is imposed on Class C Shares redeemed during the first year only. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. 50000 0 0 0.0575 The fund concentrates its assets in the real estate industry and is non-diversified under federal securities laws. If between the time you purchase shares and the time you sell shares the value of the fund&#8217;s investments decreases, you will lose money. 0.01 0.01 0 <ul type="square"><li style="margin-left:20px"><blockquote><b>Non-Diversification Risk.</b> The risk that the fund will be more susceptible to factors negatively impacting the securities in its portfolio to the extent that each such security represents a significant portion of the fund&#8217;s assets.</blockquote></li></ul> The bar chart shows changes in the fund&#8217;s performance from year to year over a 10-year period. The table shows how the fund&#8217;s average annual returns compare to those of a broad-based securities market index and a more narrowly-based benchmark that reflects the market sectors in which the fund invests. 0.0595 0.0649 0.0364 0.0624 0.0379 800-243-1574 virtus.com 0.0552 0.0344 0.0336 0.0524 0.0554 0.0518 The fund&#8217;s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. 0.011 0.011 0.011 0.0025 0.01 0 0.0028 0.0028 0.0028 Best Quarter: 2009-09-30 0.3291 Worst Quarter: 2008-12-31 -0.3873 <b>Investment Objective </b> The fund has an investment objective of high total return from both current income and capital appreciation. <b>Fees and Expenses </b> The tables below illustrate all fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and under &#8220;Sales Charges&#8221; on page 193 of the fund&#8217;s prospectus and &#8220;Alternative Purchase Arrangements&#8221; on page 57 of the fund&#8217;s statement of additional information. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) <b>Example </b> This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated. It shows your costs if you sold your shares at the end of the period or continued to hold them. The example also assumes that your investment has a 5% return each year and that the fund&#8217;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 731 341 140 <b>Investments, Risks and Performance<br/><br/>Principal Investment Strategies </b> 1060 742 437 <b>Portfolio Turnover </b> 1411 1270 755 2397 2716 The fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund&#8217;s performance. During the most recent fiscal year, the fund&#8217;s portfolio turnover rate was 56% of the average value of its portfolio. 1657 <b>Investments, Risks and Performance <br/><br/>Principal Investment Strategies </b> <b>Principal Risks </b> Returns do not reflect sales charges and would be lower if they did. 0.0617 <b>Performance Information</b> After-tax returns are calculated using the historical