497 1 t1502139.htm VIRTUS OPPORTUNITIES TRUST

 

Virtus Emerging Markets Debt Fund, Virtus Emerging Markets Small-Cap Fund,

Virtus Emerging Markets Equity Income Fund, Virtus Global Opportunities Fund,

Virtus Global Real Estate Securities Fund, Virtus Greater European Opportunities Fund,

Virtus International Equity Fund, Virtus International Real Estate Securities Fund and

Virtus International Small-Cap Fund each a series of Virtus Opportunities Trust

 

Supplement dated September 14, 2015 to the Summary Prospectuses dated January 28, 2015,

as supplemented, and the Virtus Opportunities Trust Statutory Prospectus,

dated January 28, 2015, as supplemented.

 

THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENT DATED SEPTEMBER 1, 2015 TO THE

ABOVE-REFERENCED PROSPECTUSES. THIS SUPPLEMENT INCLUDES ADDITIONAL INFORMATION
WHICH WAS INADVERTANTLY OMITTED IN THE EARLIER SUPPLEMENT.

 

Important Notice to Investors

 

Virtus Emerging Markets Debt Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.75% 0.75% 0.75%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.52% 0.52% 0.52%
Total Annual Fund Operating Expenses 1.52% 2.27% 1.27%
Less:  Expense Reimbursement(b) (0.17%) (0.17%) (0.17%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b) 1.35% 2.10% 1.10%
(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.35% for Class A Shares, 2.10% for Class C Shares and 1.10% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $507 $804 $1,141 $2,091
Class C Sold $313 $676 $1,183 $2,578
Held $213 $676 $1,183 $2,578
Class I Sold or Held $112 $368 $663 $1,503

 

Virtus Emerging Markets Equity Income Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 1.05% 1.05% 1.05%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.65% 0.65% 0.65%
Acquired Fund Fees and Expenses 0.06% 0.06% 0.06%
Total Annual Fund Operating Expenses(b) 2.01% 2.76% 1.76%
Less:  Expense Reimbursement(c) (0.26%) (0.26%) (0.26%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)(c) 1.75% 2.50% 1.50%
(b)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(c)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.75% for Class A Shares, 2.50% for Class C Shares and 1.50% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $743 $1,121 $1,549 $2,738
Class C Sold $353 $806 $1,412 $3,051
Held $253 $806 $1,412 $3,051
Class I Sold or Held $153 $502 $904 $2,029

 

Virtus Emerging Markets Small-Cap Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 1.20% 1.20% 1.20%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 3.37% 3.37% 3.37%
Acquired Fund Fees and Expenses 0.02% 0.02% 0.02%
Total Annual Fund Operating Expenses(b) 4.84% 5.59% 4.59%
Less:  Expense Reimbursement(c) (2.99%) (2.99%) (2.99%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)(c) 1.85% 2.60% 1.60%

 

(b)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(c)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.85% for Class A Shares, 2.60% for Class C Shares and 1.60% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $752 $1,421 $2,394 $4,843
Class C Sold $363 $1,117 $2,276 $5,113
Held $263 $1,117 $2,276 $5,113
Class I Sold or Held $163 $823 $1,812 $4,322

 

Virtus Global Real Estate Securities Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.85% 0.85% 0.85%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.47% 0.47% 0.47%
Total Annual Fund Operating Expenses 1.57% 2.32% 1.32%
Less:  Expense Reimbursement(b) (0.17%) (0.17%) (0.17%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)

1.40%

2.15%

1.15%

(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.40% for Class A Shares, 2.15% for Class C Shares and 1.15% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $709 $1,010 $1,350 $2,307
Class C Sold $318 $691 $1,209 $2,629
Held $218 $691 $1,209 $2,629
Class I Sold or Held $117 $384 $690 $1,560

 

Virtus Greater European Opportunities Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.85% 0.85% 0.85%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.81% 0.81% 0.81%
Acquired Fund Fees and Expenses 0.01% 0.01% 0.01%
Total Annual Fund Operating Expenses(b) 1.92% 2.67% 1.67%
Less:  Expense Reimbursement(c) (0.47%) (0.47%) (0.47%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)(c)

1.45%

2.20%

1.20%

(b)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(c)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.45% for Class A Shares, 2.20% for Class C Shares and 1.20% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $714 $1,055 $1,468 $2,615
Class C Sold $323 $738 $1,329 $2,931
Held $223 $738 $1,329 $2,931
Class I Sold or Held $122 $432 $816 $1,895

 

Virtus International Equity Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.85% 0.85% 0.85%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 1.32% 1.32% 1.32%
Acquired Fund Fees and Expenses 0.01% 0.01% 0.01%
Total Annual Fund Operating Expenses(b) 2.43% 3.18% 2.18%
Less:  Expense Reimbursement(c) (0.93%) (0.93%) (0.93%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)(c)

1.50%

2.25%

1.25%

 

(b)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(c)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.50% for Class A Shares, 2.25% for Class C Shares and 1.25% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $719 $1,116 $1,633 $3,044
Class C Sold $328 $801 $1,497 $3,352
Held $228 $801 $1,497 $3,352
Class I Sold or Held $127 $497 $994 $2,362

 

Virtus International Real Estate Securities Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 1.00% 1.00% 1.00%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.48% 0.48% 0.48%
Total Annual Fund Operating Expenses 1.73% 2.48% 1.48%
Less:  Expense Reimbursement(b) (0.23%) (0.23%) (0.23%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)

1.50%

2.25%

1.25%

(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.50% for Class A Shares, 2.25% for Class C Shares and 1.25% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $719 $1,045 $1,418 $2,462
Class C Sold $328 $728 $1,278 $2,780
Held $228 $728 $1,278 $2,780
Class I Sold or Held $127 $422 $763 $1,728

 

Virtus International Small-Cap Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

 

 

Class R6

Management Fees 1.00% 1.00% 1.00% 1.00%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None None
Other Expenses 0.48% 0.48% 0.48% 0.39%(b)
Acquired Fund Fees and Expenses 0.02% 0.02% 0.02% 0.02%
Total Annual Fund Operating Expenses(c) 1.75% 2.50% 1.50% 1.41%
Less:  Expense Reimbursement(d) (0.15%) (0.15%) (0.15%) (0.15%)
Total Annual Fund Operating Expenses After Expense Reimbursement(c)(d)

1.60%

2.35%

1.35%

1.26%

(b)Estimated for current fiscal year, as annualized.
(c)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(d)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.60% for Class A Shares, 2.35% for Class C Shares, 1.35% for Class I Shares and 1.26% for Class R6 Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $728 $1,066 $1,442 $2,495
Class C Sold $338 $749 $1,303 $2,813
Held $238 $749 $1,303 $2,813
Class I Sold or Held $137 $444 $789 $1,764
Class R6 Sold or Held $128 $416 $742 $1,664

 

Virtus Emerging Markets Debt Fund, Virtus Emerging Markets Small-Cap Fund, Virtus Emerging Markets Equity Income Fund, Virtus Global Opportunities Fund, Virtus Global Real Estate Securities Fund, Virtus Greater European Opportunities Fund, Virtus International Equity Fund, Virtus International Real Estate Securities Fund and Virtus International Small-Cap Fund.

 

The first paragraph and the information in the first table in the section “More Information About Fund Expenses” on page 139 of the statutory prospectus are hereby revised with the following information for the above referenced funds:

 

Virtus Investment Advisers, Inc. (“VIA”) has contractually agreed to limit the total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, leverage expenses, extraordinary expenses and acquired fund fees and expenses, if any) of certain of the funds so that expenses do not exceed, on an annualized basis, the amounts indicated in the following table.

 

  Class A Shares Class B Shares Class C Shares Class I Shares Class R6 Shares Class T Shares

 

Through Date

Virtus Emerging Markets Debt Fund 1.35% N/A 2.10% 1.10% N/A N/A January 31, 2017
Virtus Emerging Markets Equity Income Fund 1.75% N/A 2.50% 1.50% N/A N/A January 31, 2017
Virtus Emerging Markets Small-Cap Fund 1.85% N/A 2.60% 1.60% N/A N/A January 31, 2017
Virtus Global Opportunities Fund(1) 1.55% 2.30% 2.30% 1.30% N/A N/A January 31, 2017
Virtus Global Real Estate Securities Fund 1.40% N/A 2.15% 1.15% N/A N/A January 31, 2017
Virtus Greater European Opportunities Fund 1.45% N/A 2.20% 1.20% N/A N/A January 31, 2017
Virtus International Equity Fund 1.50% N/A 2.25% 1.25% N/A N/A January 31, 2017
Virtus International Real Estate Securities Fund 1.50% N/A 2.25% 1.25% N/A N/A January 31, 2017
Virtus International Small-Cap Fund 1.60% N/A 2.35% 1.35% 1.26% N/A January 31, 2017

 

(1) Fund expenses currently below the capped level.

 

Investors should retain this supplement with the Prospectuses for future reference.

 

 

VOT 8020/9FundsNewExpCap&Waiver (09/15)

 

Virtus Bond Fund, Virtus CA Tax-Exempt Bond Fund,

Virtus High Yield Fund, Virtus Low Volatility Equity Fund,

Virtus Senior Floating Rate Fund and Virtus Wealth Masters Fund

each a series of Virtus Opportunities Trust

 

Supplement dated September 14, 2015 to the Summary Prospectuses dated January 28, 2015,

as supplemented, and the Virtus Opportunities Trust Statutory Prospectus,

dated January 28, 2015, as supplemented.

 

THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENT DATED SEPTEMBER 2, 2015 TO THE

ABOVE-REFERENCED PROSPECTUSES. THIS SUPPLEMENT INCLUDES ADDITIONAL INFORMATION
WHICH WAS INADVERTANTLY OMITTED IN THE EARLIER SUPPLEMENT.

 

Important Notice to Investors

Virtus Bond Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class B

 

 

Class C

 

 

Class I

Management Fees 0.45% 0.45% 0.45% 0.45%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% 1.00% None
Other Expenses 0.40% 0.40% 0.40% 0.40%
Total Annual Fund Operating Expenses 1.10% 1.85% 1.85% 0.85%
Less:  Expense Reimbursement(b) (0.25%) (0.25%) (0.25%) (0.25%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)

0.85%

1.60%

1.60%

0.60%

 

(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 0.85% for Class A Shares, 1.60% for Class B Shares, 1.60% for Class C Shares and 0.60% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $459 $663 $911 $1,620
Class B Sold $563 $732 $953 $1,930
Held $163 $532 $953 $1,930
Class C Sold $263 $532 $953 $2,127
Held $163 $532 $953 $2,127
Class I Sold or Held $61 $220 $421 $1,001

 

Virtus CA Tax-Exempt Bond Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a
percentage of the value of your investment)

 

Class A

 

Class I

Management Fees 0.45% 0.45%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% None
Other Expenses 0.41% 0.41%
Total Annual Fund Operating Expenses 1.11% 0.86%
Less:  Expense Reimbursement(a) (0.26%) (0.26%)
Total Annual Fund Operating Expenses After Expense Reimbursement(a) 0.85% 0.60%
(a)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 0.85% for Class A Shares and 0.60% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $359 $567 $819 $1,543
Class I Sold or Held $61 $221 $424 $1,011

 

Virtus High Yield Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class B

 

 

Class C

 

 

Class I

Management Fees 0.65% 0.65% 0.65% 0.65%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% 1.00% None
Other Expenses 0.41% 0.41% 0.41% 0.41%
Total Annual Fund Operating Expenses 1.31% 2.06% 2.06% 1.06%
Less:  Expense Reimbursement(b) (0.16%) (0.16%) (0.16%) (0.16%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)

1.15%

1.90%

1.90%

0.90%

(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.15% for Class A Shares, 1.90% for Class B Shares , 1.90% for Class C Shares and 0.90% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $488 $743 $1,036 $1,867
Class B Sold $593 $814 $1,078 $2,171
Held $193 $614 $1,078 $2,171
Class C Sold $293 $614 $1,078 $2,363
Held $193 $614 $1,078 $2,363
Class I Sold or Held $92 $305 $553 $1,264

 

Virtus Low Volatility Equity Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.95% 0.95% 0.95%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 4.95% 4.95% 4.95%
Acquired Fund Fees and Expenses 0.20% 0.20% 0.20%
Total Annual Fund Operating Expenses(b) 6.35% 7.10% 6.10%
Less:  Expense Reimbursement(c) (4.80%) (4.80%) (4.80%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)(c)

1.55%

2.30%

1.30%

(b)The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses 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.
(c)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.55% for Class A Shares, 2.30% for Class C Shares and 1.30% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $724 $1,514 $2,760 $5,733
Class C Sold $333 $1,213 $2,649 $5,983
Held $233 $1,213 $2,649 $5,983
Class I Sold or Held $132 $922 $2,205 $5,292

 

Virtus Wealth Masters Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes are hereby replaced with the following:

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

 

 

Class A

 

 

Class C

 

 

Class I

Management Fees 0.85% 0.85% 0.85%
Distribution and Shareholder Servicing (12b-1) Fees 0.25% 1.00% None
Other Expenses 0.36% 0.36% 0.36%
Total Annual Fund Operating Expenses 1.46% 2.21% 1.21%
Less:  Expense Reimbursement(b) (0.01%) (0.01%) (0.01%)
Total Annual Fund Operating Expenses After Expense Reimbursement(b)

1.45%

2.20%

1.20%

(b)The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed 1.45% for Class A Shares, 2.20% for Class C Shares and 1.20% for Class I Shares through January 31, 2017. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years following the fiscal year in which such reimbursement occurred.

 

Under “Fees and Expenses, the “Example” table is hereby replaced with the following:

Share Status 1 Year 3 Years 5 Years 10 Years
Class A Sold or Held $714 $1,008 $1,325 $2,219
Class C Sold $323 $689 $1,183 $2,543
Held $223 $689 $1,183 $2,543
Class I Sold or Held $122 $382 $663 $1,464

 

Virtus Bond Fund, Virtus CA Tax-Exempt Bond Fund, Virtus High Yield Fund, Virtus Low Volatility Equity Fund, Virtus Senior Floating Rate Fund and Virtus Wealth Masters Fund

 

The first paragraph and the information in the first table in the section “More Information About Fund Expenses” on page 139 of the statutory prospectus are hereby revised with the following information for the above referenced funds:

 

Virtus Investment Advisers, Inc. (“VIA”) has contractually agreed to limit the total operating expenses (excluding dividend and interest expenses, taxes, brokerage commissions, leverage expenses, extraordinary expenses and acquired fund fees and expenses, if any) of certain of the funds so that expenses do not exceed, on an annualized basis, the amounts indicated in the following table.

 

  Class A Shares Class B Shares Class C Shares Class I Shares Class R6 Shares Class T Shares Through Date
Virtus Bond Fund 0.85% 1.60% 1.60% 0.60% N/A N/A January 31, 2017
Virtus CA Tax Exempt Bond Fund 0.85% N/A N/A 0.60% N/A N/A

 

January 31, 2017

Virtus High Yield Fund 1.15% 1.90% 1.90% 0.90% N/A N/A January 31, 2017
Virtus Low Volatility Equity Fund 1.55% N/A 2.30% 1.30% N/A N/A

 

January 31, 2017

Virtus Senior Floating Rate Fund(1) 1.20% N/A 1.95% 0.95% N/A N/A

 

January 31, 2017

Virtus Wealth Masters Fund 1.45% N/A 2.20% 1.20% N/A N/A

 

January 31, 2017

(1) Fund expenses currently below the capped level.

 

Investors should retain this supplement with the Prospectuses for future reference.

 

 

VOT 8020/6FundsNewExpCap&Waiver (09/15)