497K 1 t1602298_497k.htm VIRTUS GLOBAL EQUITY TREND FUND out - none - 1.071s
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Summary Prospectus January 28, 2016, as supplemented September 7, 2016
Virtus Global Equity Trend Fund
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A: VGPAX
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C: VGPCX
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I: VGPIX
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Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information (SAI), annual report and other information about the fund online at virtus.com/products/prospectuses.
You can also get this information at no cost by calling 800-243-1574 or by sending an e-mail to: virtus.investment.partners@virtus.com. If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the prospectus and other information will also be available from your financial intermediary.
The fund’s prospectus dated January 28, 2016, as supplemented September 7, 2016, and SAI, dated September 23, 2016, are incorporated by reference into this Summary Prospectus.
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Investment Objective
The fund has an investment objective of capital appreciation. In pursuing this objective, the fund maintains an emphasis on preservation of capital.
Fees and Expenses
The tables below illustrate the 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 is available from your financial advisor and under “Sales Charges” on page 219 of the fund’s prospectus and “Alternative Purchase Arrangements” on page 108 of the fund’s statement of additional information.
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Shareholder Fees (fees paid directly from your investment)
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Class A
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Class C
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Class I
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​ ​ Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) ​ ​ ​ ​ ​ 5.75 % ​ ​ ​ ​ ​ ​ Non e ​ ​ ​ ​ ​ ​ Non e ​ ​ ​
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Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)
 ​ ​ ​ ​ ​ Non e ​ ​ ​ ​ ​ ​ 1.00 %(a) ​ ​ ​ ​ ​ ​ Non e ​ ​ ​
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of
your investment)
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Class A
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Class C
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Class I
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​ ​ Management Fees (b) ​ ​ ​ ​ ​ 1.00 % ​ ​ ​ ​ ​ ​ 1.00 % ​ ​ ​ ​ ​ ​ 1.00 % ​ ​ ​
​ ​ Distribution and Shareholder Servicing (12b-1) fees ​ ​ ​ ​ ​ 0.25 % ​ ​ ​ ​ ​ ​ 1.00 % ​ ​ ​ ​ ​ ​ Non e ​ ​ ​
​ ​ Other Expenses ​ ​ ​ ​ ​ 0.35 % ​ ​ ​ ​ ​ ​ 0.35 % ​ ​ ​ ​ ​ ​ 0.35 % ​ ​ ​
​ ​ Acquired Fund Fees and Expenses ​ ​ ​ ​ ​ 0.18 % ​ ​ ​ ​ ​ ​ 0.18 % ​ ​ ​ ​ ​ ​ 0.18 % ​ ​ ​
​ ​ Total Annual Fund Operating Expenses (c) ​ ​ ​ ​ ​ 1.78 % ​ ​ ​ ​ ​ ​ 2.53 % ​ ​ ​ ​ ​ ​ 1.53 % ​ ​ ​
(a)
The deferred sales charge is imposed on Class C Shares redeemed during the first year only.
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(b)
Restated to reflect current management fee.
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(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.
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Example
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’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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Share Status
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1 Year
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3 Years
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5 Years
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10 Years
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​ ​ Class A ​ ​ ​
Sold or Held
 ​ ​ ​ ​ ​ $745 ​ ​ ​ ​ ​ ​ $1,103 ​ ​ ​ ​ ​ ​ $1,484 ​ ​ ​ ​ ​ ​ $2,549 ​ ​ ​
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Class C
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Sold
 ​ ​ ​ ​ ​ $356 ​ ​ ​ ​ ​ ​ $788 ​ ​ ​ ​ ​ ​ $1,345 ​ ​ ​ ​ ​ ​ $2,866 ​ ​ ​
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Held
 ​ ​ ​ ​ ​ $256 ​ ​ ​ ​ ​ ​ $788 ​ ​ ​ ​ ​ ​ $1,345 ​ ​ ​ ​ ​ ​ $2,866 ​ ​ ​
​ ​ Class I ​ ​ ​
Sold or Held
 ​ ​ ​ ​ ​ $156 ​ ​ ​ ​ ​ ​ $483 ​ ​ ​ ​ ​ ​ $834 ​ ​ ​ ​ ​ ​ $1,824 ​ ​ ​
Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” 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’s performance. During the most recent fiscal year, the fund's portfolio turnover rate was 614% of the average value of its portfolio.
Investments, Risks and Performance
Principal Investment Strategies
The fund utilizes a rules based investment process and may invest in securities representing the approximately 130 sub-sectors of the primary sectors of the S&P 500® Index, international equities, and/or cash equivalents (high-quality short-term securities). Allocations to each are based on quantitative models.
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The fund has the flexibility to invest in any combination of the sub-sectors, international equities, and high-quality short-term securities, or 100% in high-quality short-term securities. A relative strength momentum model is utilized to rank each sub-sector and international equity component. The fund will allocate to those sub-sectors and international equities that the model determines are more likely to outperform the broad market. A market risk indicator model is also used to determine whether the market is in a lower or higher level of risk based on price trends in the overall market. When the market is determined to be in a higher level of risk, a defensive cash equivalent position may be built by allocating from those sub-sectors and international equities of the market that are not exhibiting absolute positive momentum, up to 100% of fund assets. The fund may invest in a basket of securities or ETFs to represent its positions.
Under normal circumstances, the fund intends to allocate 40% of its assets to ETFs and/or securities representative of non-U.S. markets. Through its investment in these ETFs and/or securities, the fund’s exposure to non-U.S. markets will be diversified among countries and will have represented the business activities of a number of different countries.
The adviser is responsible for the day-to-day management of the fund’s investments and manages the investments of the fund to conform with its investment policies as described in this prospectus.
Principal Risks
The fund may not achieve its objective(s), 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. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The redemption by one or more large shareholders or groups of shareholders of their holdings in the fund could have an adverse impact on the remaining shareholders in the fund including by accelerating the realization of capital gains and increasing the fund's transaction costs. The principal risks of investing in the fund are:
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Emerging Market Investing Risk.  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.
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Equity Securities Risk.  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. Investments in a particular style or in small or medium-sized companies may enhance that risk.
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Exchange-Traded Funds (ETFs) Risk.  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.
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Fund of Funds Risk.  The risk that the fund’s performance will be adversely affected by the assets owned by the other mutual funds in which it invests, and that the layering of expenses associated with the fund’s investment in such other funds will cost shareholders more than direct investments would have cost.
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Foreign Investing Risk.  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 currency fluctuations, less regulated or liquid securities markets, or economic, political or other developments.
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Market Volatility Risk.  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 issuers and/or general economic conditions. Price changes may be temporary or may last for extended periods.
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Portfolio Turnover Risk.  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 your investment.
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Quantitative Model Risk.  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.
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Sector Focused Investing Risk.  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’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&P 500® 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.
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U.S. Government Securities Risk.  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.
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Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund’s past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.
The bar chart shows changes in the fund’s performance from year to year over the life of the fund. The table shows how the fund’s average annual returns compare to those of two broad-based securities market indexes. Updated performance information is available at virtus.com or by calling 800-243-1574.
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Calendar year total returns for Class A Shares
Returns do not reflect sales charges and would be lower if they did.
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Best Quarter:
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Q4/2013:
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7.21%
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Worst Quarter:
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Q3/2015:
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-5.61%
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Average Annual Total Returns (for the periods ended 12/31/15)
Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.
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1 Year
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Since
Inception
(3/15/11)
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​ ​ Class A ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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Return Before Taxes
 ​ ​ ​ ​ ​ -13.35 % ​ ​ ​ ​ ​ ​ 1.33 % ​ ​ ​
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Return After Taxes on Distributions
 ​ ​ ​ ​ ​ -13.35 % ​ ​ ​ ​ ​ ​ 0.68 % ​ ​ ​
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Return After Taxes on Distributions and Sale of Fund Shares
 ​ ​ ​ ​ ​ -7.55 % ​ ​ ​ ​ ​ ​ 1.10 % ​ ​ ​
​ ​ Class C ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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Return Before Taxes
 ​ ​ ​ ​ ​ -8.73 % ​ ​ ​ ​ ​ ​ 1.84 % ​ ​ ​
​ ​ Class I ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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Return Before Taxes
 ​ ​ ​ ​ ​ -7.86 % ​ ​ ​ ​ ​ ​ 2.83 % ​ ​ ​
​ ​ MSCI All Country World Index (net) (reflects no deduction for fees, expenses or taxes) ​ ​ ​ ​ ​ -2.36 % ​ ​ ​ ​ ​ ​ 6.56 % ​ ​ ​
​ ​ S&P 500® Index (reflects no deduction for fees, expenses or taxes) ​ ​ ​ ​ ​ 1.38 % ​ ​ ​ ​ ​ ​ 12.58 % ​ ​ ​
The MSCI AC World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging global markets. The index is calculated on a total return basis with net dividends reinvested. The S&P 500® 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 indexes are unmanaged and not available for direct investment. 
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.
Management
The fund’s investment adviser is Virtus Investment Advisers, Inc. (“VIA”).
Portfolio Management
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Michael Davis,  a Managing Director at VIA, is a manager of the fund. Mr. Davis has served as a Portfolio Manager of the fund since September 2016.
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Brendan R. Finneran,  Managing Director and Equity Trader at VIA, is a manager of the fund. Mr. Finneran has served as a Portfolio Manager of the fund since September 2016.
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Robert F. Hofeman, Jr.,  Managing Director and Equity Trader at VIA,is a manager of the fund. Mr. Hofeman has served as a Portfolio Manager of the fund since September 2016.
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Warun Kumar,  Senior Managing Director and Portfolio Manager at VIA, is a manager of the fund. Mr. Kumar has served as a Portfolio Manager of the fund since May 2015.
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Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:
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$2,500, generally
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$100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts
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No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans
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Minimum additional investments applicable to Class A and Class C Shares:
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$100, generally
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No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.
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Virtus Mutual Funds
P.O. Box 9874
Providence, RI 02940-8074
​ 8451 ​ ​
9-16​
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For Class I Shares, the minimum initial purchase is $100,000; there is no minimum for additional purchases.
In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial advisor, broker-dealer or other financial intermediary.
Taxes
The fund’s distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial advisor to recommend the fund over another investment. Ask your financial advisor or visit your financial intermediary’s Web site for more information.