N-Q 1 b54700eqtrust_nq.txt VIRTUS EQUITY TRUST N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-00945 --------- Virtus Equity Trust (formerly, Phoenix Equity Trust) ------------------------------------------------------------------ (Exact name of registrant as specified in charter) 101 Munson Street Greenfield, MA 01301-9668 ------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Kevin J. Carr, Esq. Vice President, Chief Legal Officer, Counsel and Secretary for Registrant 100 Pearl Street Hartford, CT 06103-4506 ------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (800) 243-1574 -------------- Date of fiscal year end: March 31 -------- Date of reporting period: June 30, 2009 ------------- Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. SCHEDULE OF INVESTMENTS. The Schedules of Investments are attached herewith. VIRTUS EQUITY TRUST N-Q (UNAUDITED) JUNE 30, 2009 FOOTNOTE LEGEND --------------- (1) Federal Income Tax Information: For tax information at June 30, 2009, see the Federal Income Tax Information Note 2 in the Notes to Schedules of Investments. (2) Non-income producing (3) Variable or step coupon security; interest rate shown reflects the rate currently in effect. (4) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. See the table below.
Fund Market Value (000's) % of Net Assets ---- -------------------- --------------- Balanced Fund $20,737 3.4% Tactical Allocation Fund 5,940 3.2
(5) Amount is less than $500. VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- U.S. GOVERNMENT SECURITIES--6.5% U.S. Treasury Bond 3.500%, 2/15/39 $ 470 $ 406 U.S. Treasury Notes 0.875%, 4/30/11 13,965 13,924 2.750%, 2/28/13 970 998 4.750%, 8/15/17 7,205 7,898 3.125%, 5/15/19 16,960 16,404 -------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $38,817) 39,630 -------------- MUNICIPAL BONDS--3.1% ARIZONA--0.5% Salt River Project Agricultural Improvement & Power District Series 08-A, 5.000%, 1/1/38 3,215 3,191 -------------- CALIFORNIA--1.0% Alameda Corridor Transportation Authority Taxable Subordinate Series D (NATL-RE Insured) 6.250%, 10/1/14 500 503 Series 99-C (NATL- RE Insured) 6.600%, 10/1/29 2,750 2,620 Contra Costa County Pension Obligation Taxable (FSA Insured) 6.100%, 6/1/11 500 526 San Luis Obispo County Pension Obligation Taxable Series A (NATL-RE Insured) 3.940%, 9/1/12 330 337 Sonoma County Pension Obligation Taxable (FSA Insured) 6.625%, 6/1/13 2,375 2,450 -------------- 6,436 -------------- DELAWARE--0.5% State Transportation Authority Series A (FSA, NATL-RE Insured) 5.000%, 7/1/19 2,705 2,952 -------------- FLORIDA--0.1% Miami-Dade County Educational Facilities Authority Taxable Series C 5.480%, 4/1/16 350 346 -------------- MAINE--0.1% Bangor Pension Obligation Taxable Series B (NATL-RE, FGIC Insured) 5.940%, 6/1/13 675 738 --------------
PAR VALUE VALUE -------------- -------------- MISSISSIPPI--0.1% Mississippi Development Bank Jackson County Special Obligation Taxable Series A (FSA Insured) 5.000%, 6/1/11 $ 340 $ 352 -------------- NEW JERSEY--0.1% Monroe Township Pension Obligation Taxable 5.000%, 8/15/13 590 626 New Jersey Turnpike Authority Taxable Series B (AMBAC Insured) 4.252%, 1/1/16 150 148 Series B Prerefunded 1/1/15 @ 100 (AMBAC Insured) 4.252%, 1/1/16 5 5 -------------- 779 -------------- NEW YORK--0.1% City of Buffalo Taxable Series A (AMBAC Insured) 4.710%, 2/1/13 420 408 -------------- PENNSYLVANIA--0.4% City of Pittsburgh Pension Obligation Taxable Series A (NATL- RE, FGIC Insured) 6.500%, 3/1/14 1,100 1,119 Series C (NATL- RE, FGIC Insured) 6.500%, 3/1/17 1,800 1,803 -------------- 2,922 -------------- TEXAS--0.1% State of Texas Taxable Series C 4.700%, 8/1/09 625 626 -------------- VIRGINIA--0.1% Tobacco Settlement Financing Corp. Taxable Series 07-A1, 6.706%, 6/1/46 970 600 -------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $19,524) 19,350 -------------- MORTGAGE-BACKED SECURITIES--14.1% AGENCY--11.4% FHLMC R010-AB 5.500%, 12/15/19 1,300 1,337 FHMLC 5.000%, 1/1/35 9,225 9,435 FNMA 6.000%, 5/1/17 182 193 4.500%, 4/1/19 360 373 4.000%, 7/1/19 62 63 4.000%, 6/1/20 1,419 1,423 5.000%, 8/1/20 85 89
Refer to Footnote Legend before the Schedules of Investments 1 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- AGENCY--(CONTINUED) 6.000%, 12/1/32 $ 371 $ 391 6.000%, 10/1/34 255 268 6.000%, 5/1/35 490 514 5.500%, 3/1/36 4,796 4,970 6.000%, 9/1/36 933 978 5.500%, 11/1/36 3,468 3,588 6.000%, 10/1/37 1,675 1,753 6.000%, 2/1/38 501 524 5.000%, 5/1/38 6,463 6,591 5.000%, 6/1/38 960 979 5.500%, 6/1/38 6,863 7,094 6.000%, 11/1/38 1,999 2,092 4.000%, 1/1/39 1,655 1,607 4.500%, 3/1/39 4,700 4,696 6.000%, 3/1/39 1,395 1,460 4.500%, 4/1/39 992 991 4.500%, 4/1/39 3,585 3,582 4.000%, 5/1/39 1,597 1,548 4.500%, 5/1/39 8,700 8,693 GNMA 6.500%, 8/15/23 59 62 6.500%, 11/15/23 589 626 6.500%, 11/15/23 229 244 6.500%, 11/15/23 85 91 6.500%, 12/15/23 79 83 6.500%, 12/15/23 47 50 6.500%, 12/15/23 61 65 6.500%, 1/15/24 57 60 6.500%, 1/15/24 231 246 6.500%, 1/15/24 22 24 6.500%, 1/15/24 8 9 6.500%, 1/15/24 190 202 6.500%, 1/15/24 51 55 6.500%, 2/15/24 36 38 6.500%, 2/15/24 21 23 6.500%, 2/15/24 311 332 6.500%, 2/15/24 130 139 6.500%, 3/15/24 79 84 6.500%, 3/15/24 188 201 6.500%, 4/15/24 56 59 6.500%, 4/15/24 14 15 6.500%, 4/15/24 401 428 6.500%, 4/15/24 21 23
PAR VALUE VALUE -------------- -------------- AGENCY--(CONTINUED) 6.500%, 5/15/24 $ 8 $ 8 6.500%, 1/15/26 20 21 6.500%, 1/15/26 60 64 6.500%, 1/15/26 168 181 6.500%, 2/15/26 57 61 6.500%, 3/15/26 91 97 6.500%, 3/15/26 106 113 6.500%, 4/15/26 12 13 6.500%, 4/15/26 25 27 6.500%, 4/15/26 136 146 6.500%, 6/15/28 19 21 6.500%, 6/15/28 21 23 6.500%, 7/15/31 189 204 6.500%, 11/15/31 32 34 6.500%, 2/15/32 28 30 6.500%, 3/15/32 30 32 6.500%, 4/15/32 63 68 6.000%, 8/15/32 641 674 -------------- 70,208 -------------- NON-AGENCY--2.7% Bear Stearns Adjustable Rate Mortgage Trust 05-12, 13A1 5.443%, 2/25/36 (3) 1,745 1,069 Citigroup Mortgage Loan Trust, Inc. 05-5, 2A3 5.000%, 8/25/35 1,172 978 Credit Suisse First Boston Mortgage Securities Corp. 99-C1, A2 7.290%, 9/15/41 49 49 Credit Suisse Mortgage Capital Certificates(3) 06-C1, A4 5.551%, 2/15/39(3) 5,490 4,442 06-C1, A3 5.551%, 2/15/39(3) 575 495 First Horizon Asset Securities, Inc. 05-AR1, 2A1 5.001%, 4/25/35 (3) 1,697 1,250 GE Capital Commercial Mortgage Corp. 03-C1, C 4.975%, 1/10/38 (3) 655 559 GS Mortgage Securities Corp. II 07-GG10, A4 5.805%, 8/10/45 (3) 1,700 1,285 JPMorgan Chase Commercial Mortgage Securities Corp. 07-LD12, A4 5.882%, 2/15/51 (3) 1,450 1,086 Lehman Brothers - UBS Commercial Mortgage Trust(3) 04-C4, A2 4.567%, 6/15/29(3) 108 108 07-C7, A3 5.866%, 9/15/45(3) 1,700 1,300
Refer to Footnote Legend before the Schedules of Investments 2 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- NON-AGENCY--(CONTINUED) Wachovia Bank Commercial Mortgage Trust 07-C30, A5 5.342%, 12/15/43 $ 1,000 $ 658 Washington Mutual Mortgage Pass-Through-Certificates, Inc. 05-AR3, A2 4.639%, 3/25/35 (3) 97 74 Wells Fargo Mortgage Backed Securities Trust 04-EE, 2A3 3.585%, 12/25/34(3) 1,110 622 05-AR4, 2A1 4.537%, 4/25/35(3) 2,920 2,525 -------------- 16,500 -------------- TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $90,606) 86,708 -------------- ASSET-BACKED SECURITIES--0.6% AmeriCredit Automobile Receivables Trust 06-BG, A3 5.210%, 10/6/11 277 277 Associates Manufactured Housing Pass-Through-Certificate 97-2, A6 7.075%, 3/15/28 (3) 439 421 Bosphorus Financial Services Ltd. 144A 2.683%, 2/15/12 (3)(4) 859 748 Capital One Auto Finance Trust 07-B, A3A 5.030%, 4/15/12 598 604 Dunkin Securitization 06-1, M1 144A 8.285%, 6/20/31 (4) 1,025 854 GMAC Mortgage Corp. Loan Trust 05-HE2, A3 4.622%, 11/25/35 (3) 192 182 Wachovia Auto Loan Owner Trust 06-2A, A3 144A 5.230%, 8/22/11 (4) 456 459 -------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $3,859) 3,545 -------------- CORPORATE BONDS--11.8% CONSUMER DISCRETIONARY--1.3% Comcast Corp. 5.300%, 1/15/14 575 595 5.700%, 7/1/19 1,285 1,273 COX Communications, Inc. 144A 6.250%, 6/1/18 (4) 800 791 Hasbro, Inc. 6.300%, 9/15/17 775 755 News America, Inc. 6.650%, 11/15/37 1,475 1,327 Royal Caribbean Cruises Ltd. 7.250%, 6/15/16 875 695 Seneca Gaming Corp. Series B 7.250%, 5/1/12 765 665 Time Warner Cable, Inc. 5.850%, 5/1/17 435 434 Videotron Ltee 6.375%, 12/15/15 650 586
PAR VALUE VALUE -------------- -------------- CONSUMER DISCRETIONARY--(CONTINUED) WMG Acquisition Corp. 144A 9.500%, 6/15/16 (4) $ 705 $ 705 -------------- 7,826 -------------- CONSUMER STAPLES--0.6% Alliance One International, Inc. 144A 10.000%, 7/15/16 (4) 835 795 BAT International Finance plc 144A 9.500%, 11/15/18 (4) 200 235 Campbell Soup Co. 5.000%, 12/3/12 175 187 Delhaize Group 6.500%, 6/15/17 1,250 1,277 Reynolds American, Inc. 7.300%, 7/15/15 950 952 -------------- 3,446 -------------- ENERGY--1.2% Buckeye Partners LP 6.050%, 1/15/18 250 227 Helix Energy Solutions Group, Inc. 144A 9.500%, 1/15/16 (4) 230 211 Kinder Morgan Finance Co. ULC 5.700%, 1/5/16 2,420 2,087 Motiva Enterprises LLC 144A 5.200%, 9/15/12 (4) 750 770 NGPL PipeCo. LLC 144A 6.514%, 12/15/12 (4) 925 970 Petro-Canada 6.050%, 5/15/18 288 287 PetroHawk Energy Corp. 144A 10.500%, 8/1/14 (4) 350 360 Petropower I Funding Trust 144A 7.360%, 2/15/14 (4) 1,187 1,180 Swift Energy Co. 7.125%, 6/1/17 650 461 TEPPCO Partners LP 7.625%, 2/15/12 420 440 Weatherford International Ltd. 9.625%, 3/1/19 255 300 -------------- 7,293 -------------- FINANCIALS--4.6% American Express Credit Corp. Series C 7.300%, 8/20/13 750 780 Bank of America Corp. 5.750%, 8/15/16 800 694 5.750%, 12/1/17 545 485 5.650%, 5/1/18 800 707 Bank of New York / Mellon Corp. (The) 4.950%, 11/1/12 950 1,005 Bear Stearns Cos., Inc. LLC (The) 7.250%, 2/1/18 900 949 Capital One Financial Corp. 7.375%, 5/23/14 1,225 1,263 Citigroup, Inc. 5.000%, 9/15/14 910 763 4.875%, 5/7/15 1,235 1,009 Credit Suisse New York 5.000%, 5/15/13 900 920
Refer to Footnote Legend before the Schedules of Investments 3 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- FINANCIALS--(CONTINUED) Deutsche Bank AG 4.875%, 5/20/13 $ 300 $ 308 Ford Motor Credit Co. LLC 8.625%, 11/1/10 480 451 7.800%, 6/1/12 770 663 General Electric Capital Corp. 6.875%, 1/10/39 1,380 1,242 GMAC, Inc. 144A 6.750%, 12/1/14(4) 245 195 Goldman Sachs Group, Inc. (The) 5.950%, 1/18/18 705 684 6.150%, 4/1/18 1,100 1,071 HBOS plc 144A 5.375%, 11/29/49 (3)(4) 3,250 1,571 International Lease Finance Corp. 4.750%, 1/13/12 875 689 Janus Capital Group, Inc. 6.500%, 6/15/12 525 485 JPMorgan Chase & Co. 5.250%, 5/1/15 800 769 Series 1, 7.900%, 12/31/49(3) 536 469 Merrill Lynch & Co., Inc. 6.110%, 1/29/37 905 699 National Capital Trust II 144A 5.486%, 12/29/49 (3)(4) 2,700 1,782 Northern Trust Co. (The) 6.500%, 8/15/18 800 870 ProLogis 6.625%, 5/15/18 415 327 Rabobank Nederland NV 144A 11.000%, 12/31/49 (3)(4) 1,040 1,160 Simon Property Group LP 6.750%, 5/15/14 1,260 1,266 SunTrust Banks, Inc. 5.250%, 11/5/12 980 999 UFJ Finance AEC 6.750%, 7/15/13 900 932 Wachovia Bank NA 5.000%, 8/15/15 600 565 Wachovia Corp. 4.875%, 2/15/14 1,145 1,118 Westfield Capital Corp. Ltd./ Westfield Finance Authority(4) 144A 4.375%, 11/15/10(4) 175 171 144A 5.125%, 11/15/14(4) 1,175 1,057 -------------- 28,118 -------------- HEALTH CARE--0.2% Merck & Co., Inc. 1.875%, 6/30/11 425 426 Quest Diagnostics, Inc. 6.400%, 7/1/17 930 949 -------------- 1,375 -------------- INDUSTRIALS--1.4% Continental Airlines, Inc. 98-1A, 6.648%, 3/15/19 1,136 932 ITW Cupids Financing Trust I 144A 6.550%, 12/31/11 (4) 5,000 4,982
PAR VALUE VALUE -------------- -------------- INDUSTRIALS--(CONTINUED) Pitney Bowes, Inc. 4.750%, 5/15/18 $ 1,250 $ 1,162 Rockwell Collins, Inc. 4.750%, 12/1/13 1,000 1,007 Terex Corp. 7.375%, 1/15/14 390 359 United Airlines, Inc. 01-A1, 6.071%, 3/1/13 51 51 Waste Management, Inc. 5.000%, 3/15/14 175 171 -------------- 8,664 -------------- INFORMATION TECHNOLOGY--0.8% Broadridge Financial Solutions, Inc. 6.125%, 6/1/17 425 358 Fiserv, Inc. 6.125%, 11/20/12 1,220 1,266 Intuit, Inc. 5.750%, 3/15/17 221 210 Oracle Corp. 6.125%, 7/8/39 1,905 1,892 Tyco Electronic Group SA 6.000%, 10/1/12 350 344 Xerox Corp. 6.750%, 2/1/17 1,040 947 -------------- 5,017 -------------- MATERIALS--0.1% Norske Skog Canada Ltd. 7.375%, 3/1/14 570 245 Verso Paper Holdings LLC / Verso Paper, Inc. Series B 4.778%, 8/1/14 (3) 296 141 -------------- 386 -------------- TELECOMMUNICATION SERVICES--1.1% AT&T, Inc. 5.800%, 2/15/19 1,240 1,259 Citizen Communications Co. 6.250%, 1/15/13 640 592 France Telecom SA 4.375%, 7/8/14 410 413 OJSC Vimpel Communications 144A (VIP Finance Ireland Ltd.) 9.125%, 4/30/18 (4) 465 396 Qwest Corp. 7.875%, 9/1/11 410 410 6.500%, 6/1/17 570 501 Telecom Italia Capital SA 6.999%, 6/4/18 1,000 1,012 7.175%, 6/18/19 715 725 Telefonica Emisiones SAU 5.877%, 7/15/19 860 887 Verizon Communications, Inc. 4.900%, 9/15/15 720 719 -------------- 6,914 -------------- UTILITIES--0.5% Allegheny Energy Supply Co. LLC 144A 8.250%, 4/15/12 (4) 390 406 AmeriGas Partners LP 7.250%, 5/20/15 1,000 943 Entergy Gulf States, Inc. 5.250%, 8/1/15 300 286
Refer to Footnote Legend before the Schedules of Investments 4 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- UTILITIES--(CONTINUED) Great River Energy 144A 5.829%, 7/1/17 (4) $ 895 $ 861 Northeast Utilities 5.650%, 6/1/13 715 718 -------------- 3,214 -------------- TOTAL CORPORATE BONDS (IDENTIFIED COST $77,309) 72,253 --------------
SHARES VALUE -------------- -------------- PREFERRED STOCK--0.0% FINANCIALS--0.0% Preferred Blocker, Inc. (GMAC) Pfd. 144A 7.000%(4) 181 78 -------------- TOTAL PREFERRED STOCK (IDENTIFIED COST $57) 78 -------------- COMMON STOCKS--56.5% CONSUMER DISCRETIONARY--3.9% McDonald's Corp. 140,000 8,048 NIKE, Inc. Class B 161,600 8,368 Under Armour, Inc. Class A(2) 334,000 7,475 -------------- 23,891 -------------- CONSUMER STAPLES--6.6% Altria Group, Inc. 440,600 7,221 Bunge Ltd. 133,000 8,013 Costco Wholesale Corp. 184,000 8,409 PepsiCo, Inc. 153,000 8,409 Philip Morris International, Inc. 193,900 8,458 -------------- 40,510 -------------- ENERGY--8.8% Chesapeake Energy Corp. 192,700 3,821 ConocoPhillips 193,900 8,155 Halliburton Co. 367,000 7,597 Massey Energy Co. 304,539 5,951 Occidental Petroleum Corp. 123,000 8,094 Petroleo Brasileiro SA ADR 198,000 8,114 St. Mary Land & Exploration Co. 254,900 5,320 Valero Energy Corp. 412,000 6,959 -------------- 54,011 -------------- FINANCIALS--4.4% Allstate Corp. (The) 184,000 4,490 Goldman Sachs Group, Inc. (The) 57,000 8,404 Hudson City Bancorp, Inc. 617,700 8,209 Reinsurance Group of America, Inc. 160,000 5,586 -------------- 26,689 -------------- HEALTH CARE--8.1% Celgene Corp.(2) 167,000 7,990 Gilead Sciences, Inc.(2) 187,000 8,759 Johnson & Johnson 146,500 8,321 Merck & Co., Inc. 275,400 7,700 St. Jude Medical, Inc.(2) 201,000 8,261 UnitedHealth Group, Inc. 338,200 8,448 -------------- 49,479 -------------- INDUSTRIALS--7.5% Boeing Co. (The) 175,000 7,438 Caterpillar, Inc. 219,000 7,236 Continental Airlines, Inc. Class B(2) 918,000 8,134 Foster Wheeler AG(2) 300,000 7,125 L-3 Communications Holdings, Inc. 117,000 8,117 Union Pacific Corp. 156,000 8,121 -------------- 46,171 -------------- INFORMATION TECHNOLOGY--9.6% Cisco Systems, Inc.(2) 450,000 8,388 Corning, Inc. 509,000 8,174 Hewlett-Packard Co. 224,000 8,658 International Business Machines Corp. 77,000 8,040 Microsoft Corp. 379,000 9,009 Nokia OYJ Sponsored ADR 551,000 8,034 QUALCOMM, Inc. 195,600 8,841 -------------- 59,144 -------------- MATERIALS--4.8% Alcoa, Inc. 461,000 4,762 Freeport-McMoRan Copper & Gold, Inc. 165,000 8,268 Nucor Corp. 185,000 8,220 Potash Corp. of Saskatchewan, Inc. 86,000 8,002 -------------- 29,252 -------------- TELECOMMUNICATION SERVICES--2.8% AT&T, Inc. 333,000 8,272 Verizon Communications, Inc. 294,000 9,034 -------------- 17,306 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $306,956) 346,453 --------------
Refer to Footnote Legend before the Schedules of Investments 5 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- EXCHANGE TRADED FUNDS--1.2% PowerShares Deutsche Bank Agriculture Fund(2) 302,300 $ 7,694 -------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $7,533) 7,694 -------------- SHORT-TERM INVESTMENTS--7.0% MONEY MARKET MUTUAL FUNDS--7.0% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 42,971,248 42,971 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $42,971) 42,971 -------------- TOTAL LONG TERM INVESTMENTS--100.8% (IDENTIFIED COST $587,632) 618,682 -------------- TOTAL INVESTMENTS--100.8% (IDENTIFIED COST $587,632) 618,682(1) Other Assets and Liabilities--(0.8)% (4,996) -------------- NET ASSETS--100.0% $ 613,686 ==============
ABBREVIATIONS: ADR American Depositary Receipt. AMBAC American Municipal Bond Assurance Corporation. FGIC Financial Guaranty Insurance Company FHLMC Freddie Mac or Federal Home Loan Mortgage Corporation FNMA Fannie Mae or Federal National Mortgage Association FSA Financial Security Assurance, Inc. GNMA Ginnie Mae or Government National Mortgage Association NATL/NATL-RE National Public Finance Guarantee Corp. formerly Municipal Bond Insurance Association. Refer to Footnote Legend before the Schedules of Investments 6 VIRTUS BALANCED FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
COUNTRY WEIGHTINGS as of 6/30/09* + ----------------------------------- United States 93% Canada 2 Australia 1 Brazil 1 Finland 1 Switzerland 1 Other 1 --- Total 100% ===
* FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the table shown above. Country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. + % of total investments as of June 30, 2009 Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE LEVEL 2 LEVEL 3 AT LEVEL 1 SIGNIFICANT SIGNIFICANT JUNE 30, QUOTED OBSERVABLE UNOBSERVABLE INVESTMENT IN SECURITIES: 2009 PRICES INPUTS INPUTS ------------------------- ----------- -------- ----------- ------------ Debt Securities: U.S. Government Securities $ 39,630 $ -- $ 39,630 $-- Asset-Backed Securities 3,545 -- 3,545 -- Mortgage-Backed Securities 86,708 -- 86,708 -- Municipal Securities 19,350 -- 19,350 -- Corporate Debt 72,253 -- 72,253 -- Equity Securities: Preferred Stock 78 78 -- -- Common Stock 346,453 346,453 -- -- Exchange Traded Funds 7,694 7,694 -- -- Short-Term Investments 42,971 42,971 -- -- TOTAL INVESTMENTS $618,682 $397,196 $221,486 $--
The following is a reconciliation of assets of the Fund, for Level 3 investments for which significant unobservable inputs were used to determined fair value:
CORPORATE DEBT INVESTMENTS IN SECURITIES SECURITIES ------------------------- ---------- BALANCE AS OF MARCH 31, 2009: $ 1,056 Accrued Discount/(Premium) 1 Realized Gain (Loss) -- Change in Unrealized Appreciation (Depreciation) 123 Net Purchases/(Sales) (1,180) Transfers In and/or Out of Level 3 (1) -- ------- BALANCE AS OF JUNE 30, 2009 $ -- =======
(1) "Transfers in and/or out" represent the ending value as of June 30, 2009, for any investment security where a change in the pricing level occurred from the beginning to the end of the period. Certain level 3 securities have been determined based on availability of only a single broker source, which may or may not be a principal market maker. Other level 3 securities are without an active market or market participants and therefore are internally fair valued. These internally fair valued securities derive their valuation based on the review of inputs such as, but not limited to, similar securities, liquidity factors, capital structure, and credit analysis. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 7 VIRTUS CAPITAL GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--98.2% CONSUMER DISCRETIONARY--11.8% Aeropostale, Inc.(2) 39,750 $ 1,362 Amazon.com, Inc.(2) 42,500 3,556 Apollo Group, Inc. Class A(2) 26,200 1,863 Big Lots, Inc.(2) 70,675 1,486 Family Dollar Stores, Inc. 55,850 1,581 ITT Educational Services, Inc.(2) 55,425 5,579 Netflix, Inc.(2) 74,100 3,063 NIKE, Inc. Class B 38,750 2,007 Panera Bread Co. Class A(2) 47,000 2,343 Ross Stores, Inc. 51,825 2,000 Yum! Brands, Inc. 130,850 4,363 -------------- 29,203 -------------- CONSUMER STAPLES--10.5% Archer-Daniels-Midland Co. 105,800 2,832 Colgate-Palmolive Co. 112,625 7,967 Hansen Natural Corp.(2) 173,650 5,352 Wal-Mart Stores, Inc. 162,175 7,856 Walgreen Co. 67,650 1,989 -------------- 25,996 -------------- ENERGY--5.9% Exxon Mobil Corp. 92,675 6,479 National Oilwell Varco, Inc.(2) 48,250 1,576 Occidental Petroleum Corp. 46,850 3,083 Southwestern Energy Co.(2) 89,250 3,467 -------------- 14,605 -------------- FINANCIALS--4.3% AFLAC, Inc. 89,100 2,770 HCC Insurance Holdings, Inc. 63,750 1,531 Hudson City Bancorp, Inc. 152,550 2,027 IntercontinentalExchange, Inc.(2) 17,000 1,942 Morgan Stanley 77,250 2,203 -------------- 10,473 -------------- HEALTH CARE--16.0% Amgen, Inc.(2) 116,650 6,176 Biogen Idec, Inc.(2) 35,150 1,587 Endo Pharmaceuticals Holdings, Inc.(2) 145,650 2,610 Forest Laboratories, Inc.(2) 75,800 1,903 Gen-Probe, Inc.(2) 55,050 2,366 Gilead Sciences, Inc.(2) 130,025 6,090
SHARES VALUE -------------- -------------- HEALTH CARE--(CONTINUED) Illumina, Inc.(2) 98,900 $ 3,851 Life Technologies Corp.(2) 89,425 3,731 Schering-Plough Corp. 157,850 3,965 Sepracor, Inc.(2) 90,650 1,570 Watson Pharmaceuticals, Inc.(2) 166,550 5,611 -------------- 39,460 -------------- INDUSTRIALS--8.1% Granite Construction, Inc. 45,600 1,518 Iron Mountain, Inc.(2) 85,250 2,451 Lockheed Martin Corp. 77,075 6,216 Shaw Group, Inc. (The)(2) 95,050 2,605 Thomas & Betts Corp.(2) 58,300 1,682 URS Corp.(2) 108,500 5,373 -------------- 19,845 -------------- INFORMATION TECHNOLOGY--35.9% Akamai Technologies, Inc.(2) 84,600 1,623 Apple, Inc.(2) 59,900 8,532 Broadcom Corp. Class A(2) 114,980 2,850 Broadridge Financial Solutions, Inc. 123,550 2,049 Cisco Systems, Inc.(2) 507,198 9,454 Cree, Inc.(2) 72,850 2,141 F5 Networks, Inc.(2) 205,850 7,120 Google, Inc. Class A(2) 19,250 8,116 Hewlett-Packard Co. 184,750 7,141 Intel Corp. 161,225 2,668 Microsoft Corp. 216,575 5,148 Oracle Corp. 529,900 11,350 Red Hat, Inc.(2) 224,700 4,523 Sybase, Inc.(2) 69,050 2,164 Symantec Corp.(2) 94,300 1,467 WebMD Health Corp. Class A(2) 133,650 3,999 Western Digital Corp.(2) 238,350 6,316 Western Union Co. (The) 118,450 1,943 -------------- 88,604 -------------- MATERIALS--1.9% CF Industries Holdings, Inc. 27,875 2,067 Freeport-McMoRan Copper & Gold, Inc. 54,400 2,726 -------------- 4,793 -------------- TELECOMMUNICATION SERVICES--2.2% American Tower Corp. Class A(2) 172,150 5,428 --------------
Refer to Footnote Legend before the Schedules of Investments 8 VIRTUS CAPITAL GROWTH FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- UTILITIES--1.6% NRG Energy, Inc.(2) 148,700 $ 3,860 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $221,983) 242,267 -------------- TOTAL LONG TERM INVESTMENTS--98.2% (IDENTIFIED COST $221,983) 242,267 -------------- SHORT-TERM INVESTMENTS--2.0% MONEY MARKET MUTUAL FUNDS--2.0% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 4,915,695 4,916 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $4,916) 4,916 -------------- TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $226,899) 247,183(1) Other assets and liabilities, net--(0.2)% (605) -------------- NET ASSETS--100.0% $ 246,578 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES ----------------------------------------------------- Equity Securities: Common Stocks $242,267 $242,267 Short-Term Investments 4,916 4,916 TOTAL INVESTMENTS $247,183 $247,183 -----------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 9 VIRTUS GROWTH & INCOME FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--97.0% CONSUMER DISCRETIONARY--7.2% McDonald's Corp. 61,000 $ 3,507 NIKE, Inc. Class B 61,500 3,184 Under Armour, Inc. Class A(2) 159,700 3,574 -------------- 10,265 -------------- CONSUMER STAPLES--11.1% Altria Group, Inc. 167,700 2,749 Bunge Ltd. 50,600 3,049 Costco Wholesale Corp. 71,000 3,245 PepsiCo, Inc. 66,000 3,627 Philip Morris International, Inc. 73,800 3,219 -------------- 15,889 -------------- ENERGY--14.8% Chesapeake Energy Corp. 73,300 1,454 ConocoPhillips 73,800 3,104 Halliburton Co. 162,300 3,360 Massey Energy Co. 121,868 2,381 Occidental Petroleum Corp. 47,000 3,093 Petroleo Brasileiro SA ADR 76,000 3,114 St. Mary Land & Exploration Co. 97,000 2,024 Valero Energy Corp. 158,000 2,669 -------------- 21,199 -------------- FINANCIALS--7.2% Allstate Corp. (The) 71,000 1,732 Goldman Sachs Group, Inc. (The) 22,000 3,244 Hudson City Bancorp, Inc. 235,100 3,124 Reinsurance Group of America, Inc. 61,000 2,130 -------------- 10,230 -------------- HEALTH CARE--13.4% Celgene Corp.(2) 67,000 3,205 Gilead Sciences, Inc.(2) 72,000 3,373 Johnson & Johnson 55,800 3,169 Merck & Co., Inc. 104,800 2,930 St. Jude Medical, Inc.(2) 81,000 3,329 UnitedHealth Group, Inc. 128,700 3,215 -------------- 19,221 -------------- INDUSTRIALS--12.9% Boeing Co. (The) 67,000 2,847 Caterpillar, Inc. 97,000 3,205 Continental Airlines, Inc. Class B(2) 367,000 3,252
SHARES VALUE -------------- -------------- INDUSTRIALS--(CONTINUED) Foster Wheeler AG(2) 121,000 $ 2,874 L-3 Communications Holdings, Inc. 44,500 3,087 Union Pacific Corp. 62,000 3,228 -------------- 18,493 -------------- INFORMATION TECHNOLOGY--17.2% Cisco Systems, Inc.(2) 171,300 3,193 Corning, Inc. 226,100 3,631 Hewlett-Packard Co. 97,500 3,768 International Business Machines Corp. 30,000 3,133 Microsoft Corp. 166,600 3,960 Nokia OYJ Sponsored ADR 238,700 3,480 QUALCOMM, Inc. 74,400 3,363 -------------- 24,528 -------------- MATERIALS--8.6% Alcoa, Inc. 234,400 2,421 Freeport-McMoRan Copper & Gold, Inc. 63,000 3,157 Nucor Corp. 79,600 3,537 Potash Corp. of Saskatchewan, Inc. 35,000 3,257 -------------- 12,372 -------------- TELECOMMUNICATION SERVICES--4.6% AT&T, Inc. 128,000 3,179 Verizon Communications, Inc. 109,000 3,350 -------------- 6,529 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $118,388) 138,726 -------------- EXCHANGE TRADED FUNDS--2.1% PowerShares Deutsche Bank Agriculture Fund(2) 115,100 2,929 -------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $2,868) 2,929 -------------- TOTAL LONG TERM INVESTMENTS--99.1% (IDENTIFIED COST $121,256) 141,655 -------------- SHORT-TERM INVESTMENTS--0.8% MONEY MARKET MUTUAL FUNDS--0.8% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 1,189,570 1,190 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,190) 1,190 --------------
Refer to Footnote Legend before the Schedules of Investments 10 VIRTUS GROWTH & INCOME FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands) TOTAL INVESTMENTS--99.9% (IDENTIFIED COST $122,446) 142,845(1) Other assets and liabilities, net--0.1% 171 -------------- NET ASSETS--100.0% $ 143,016 ==============
ABBREVIATIONS: ADR American Depositary Receipt. Refer to Footnote Legend before the Schedules of Investments VIRTUS GROWTH & INCOME FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
COUNTRY WEIGHTINGS as of 6/30/09* + ----------------------------------- United States 91% Finland 3 Brazil 2 Canada 2 Switzerland 2 --- Total 100% ===
* FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the table shown above. Country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. + % of total investments as of June 30, 2009 Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES --------------------------------------------------- Equity Securities: Common Stock $138,726 $138,726 Exchange Traded Funds 2,929 2,929 Short-Term Investments 1,190 1,190 TOTAL INVESTMENTS $142,845 $142,845 ---------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 11 VIRTUS GROWTH OPPORTUNITIES FUND** SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--100.2% CONSUMER DISCRETIONARY--14.6% Amazon.com, Inc.(2) 5,940 $ 497 Best Buy Co., Inc. 7,450 249 Coach, Inc. 5,200 140 Guess?, Inc. 6,070 156 Honda Motor Co., Ltd. Sponsored ADR 7,820 214 International Game Technology 6,670 106 Kohl's Corp.(2) 5,990 256 Lowe's Cos., Inc. 11,600 225 NVR, Inc.(2) 650 327 Pulte Homes, Inc. 30,880 273 Starwood Hotels & Resorts Worldwide, Inc. 5,020 111 Wynn Resorts Ltd.(2) 4,580 162 -------------- 2,716 -------------- CONSUMER STAPLES--5.2% Archer-Daniels-Midland Co. 11,030 295 Avon Products, Inc. 9,350 241 Hansen Natural Corp.(2) 7,060 218 Whole Foods Market, Inc.(2) 11,430 217 -------------- 971 -------------- ENERGY--6.5% Occidental Petroleum Corp. 4,260 280 Petrohawk Energy Corp.(2) 6,480 145 Petroleo Brasileiro SA ADR 6,960 285 Southwestern Energy Co.(2) 5,490 213 Weatherford International Ltd.(2) 14,850 291 -------------- 1,214 -------------- FINANCIALS--6.9% Charles Schwab Corp. (The) 9,700 170 Goldman Sachs Group, Inc. (The) 2,030 299 Morgan Stanley 8,270 236 MSCI, Inc. Class A(2) 5,700 139 PNC Financial Services Group, Inc. 5,680 221 T. Rowe Price Group, Inc. 5,380 224 -------------- 1,289 -------------- HEALTH CARE--12.9% Alexion Pharmaceuticals, Inc.(2) 8,210 338 Allergan, Inc. 3,860 184 Express Scripts, Inc.(2) 5,390 370 Gilead Sciences, Inc.(2) 12,020 563
SHARES VALUE -------------- -------------- HEALTH CARE--(CONTINUED) Intuitive Surgical, Inc.(2) 675 $ 110 Schein (Henry), Inc.(2) 4,380 210 St. Jude Medical, Inc.(2) 8,200 337 Teva Pharmaceutical Industries Ltd. Sponsored ADR 5,730 283 -------------- 2,395 -------------- INDUSTRIALS--4.6% Cummins, Inc. 4,990 176 First Solar, Inc.(2) 960 156 Joy Global, Inc. 4,260 152 Robert Half International, Inc. 9,930 235 Robinson (C.H.) Worldwide, Inc. 2,750 143 -------------- 862 -------------- INFORMATION TECHNOLOGY--40.4% Activision Blizzard, Inc.(2) 17,430 220 Adobe Systems, Inc.(2) 6,200 175 Alcatel - Lucent SA Sponsored ADR(2) 55,000 136 Apple, Inc.(2) 4,890 696 Applied Materials, Inc. 33,560 368 ASML Holding N.V. 11,180 242 Broadcom Corp. Class A(2) 17,640 437 Corning, Inc. 27,450 441 F5 Networks, Inc.(2) 7,420 257 Google, Inc. Class A(2) 1,800 759 International Business Machines Corp. 7,210 753 Juniper Networks, Inc.(2) 12,100 286 Lam Research Corp.(2) 13,140 342 McAfee, Inc.(2) 6,780 286 Micron Technology, Inc.(2) 46,100 233 QUALCOMM, Inc. 19,040 861 Salesforce.com, Inc.(2) 5,660 216 Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR 26,540 250 Visa, Inc. Class A 3,690 230 Xilinx, Inc. 16,340 334 -------------- 7,522 -------------- MATERIALS--6.9% Alcoa, Inc. 25,790 266 Monsanto Co. 4,230 315 Nucor Corp. 5,760 256 Potash Corp. of Saskatchewan, Inc. 2,300 214
Refer to Footnote Legend before the Schedules of Investments 12 VIRTUS GROWTH OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- MATERIALS--(CONTINUED) United States Steel Corp. 6,250 $ 223 -------------- 1,274 -------------- TELECOMMUNICATION SERVICES--2.2% China Mobile Ltd. Sponsored ADR 4,820 242 Millicom International Cellular S.A.(2) 2,970 167 -------------- 409 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $16,878) 18,652 -------------- TOTAL LONG TERM INVESTMENTS--100.2% (IDENTIFIED COST $16,878) 18,652 -------------- TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $16,878) 18,652(1) Other assets and liabilities, net--(0.2)% (31) -------------- NET ASSETS--100.0% $ 18,621 ==============
ABBREVIATIONS: ADR American Depositary Receipt. ** Please see Note 3 Subsequent Events in the Notes to Schedules of Investments. Refer to Footnote Legend before the Schedules of Investments VIRTUS GROWTH OPPORTUNITIES FUND** SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
COUNTRY WEIGHTINGS as of 6/30/09* + ----------------------------------- United States 89% Brazil 2 Israel 2 Canada 1 China 1 Korea 1 Taiwan 1 Other 3 --- Total 100% ===
* FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the table shown above. Country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. + % of total investments as of June 30, 2009 Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES -------------------------------------------------- Equity Securities: Common Stock $18,652 $18,652 TOTAL INVESTMENTS $18,652 $18,652 --------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 13 VIRTUS MID-CAP CORE FUND** SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--91.0% CONSUMER DISCRETIONARY--9.3% Choice Hotels International, Inc. 375 $ 10 ITT Educational Services, Inc.(2) 55 6 John Wiley & Sons, Inc. Class A 390 13 -------------- 29 -------------- CONSUMER STAPLES--7.6% Brown-Forman Corp. Class B 190 8 Church & Dwight Co., Inc. 160 9 McCormick & Co., Inc. 215 7 -------------- 24 -------------- ENERGY--2.5% Devon Energy Corp. 145 8 -------------- FINANCIALS--7.0% Brown & Brown, Inc. 530 10 Realty Income Corp. 530 12 -------------- 22 -------------- HEALTH CARE--15.7% Bard (C.R.), Inc. 175 13 DENTSPLY International, Inc. 380 11 Teleflex, Inc. 245 11 Waters Corp.(2) 265 14 -------------- 49 -------------- INDUSTRIALS--23.7% Copart, Inc.(2) 380 13 Equifax, Inc. 400 10 Expeditors International of Washington, Inc. 200 7 Graco, Inc. 510 11 Jacobs Engineering Group, Inc.(2) 305 13 Robinson (C.H.) Worldwide, Inc. 125 7 Rockwell Collins, Inc. 300 13 -------------- 74 -------------- INFORMATION TECHNOLOGY--14.7% Adobe Systems, Inc.(2) 450 13 Intuit, Inc.(2) 460 13 Lender Processing Services, Inc. 350 10 Microchip Technology, Inc. 470 10 -------------- 46 -------------- MATERIALS--6.7% RPM International, Inc. 515 7
SHARES VALUE -------------- -------------- MATERIALS--(CONTINUED) Sigma-Aldrich Corp. 275 $ 14 -------------- 21 -------------- UTILITIES--3.8% EQT Corp. 350 12 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $280) 285 -------------- TOTAL LONG TERM INVESTMENTS--91.0% (IDENTIFIED COST $280) 285 -------------- SHORT-TERM INVESTMENTS--9.0% MONEY MARKET MUTUAL FUNDS--9.0% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 28,428 28 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $28) 28 -------------- TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $308) 313(1) Other assets and liabilities, net--0.0% --(5) -------------- NET ASSETS--100.0% $ 313 ==============
** The inception date for this Fund was June 22, 2009. Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES ---------------------------------------------------- Equity Securities: Common Stocks $285 $285 Short-Term Investments 28 28 TOTAL INVESTMENTS $313 $313 ----------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 14 VIRTUS MID-CAP GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--98.2% CONSUMER DISCRETIONARY--16.0% Advance Auto Parts, Inc. 20,300 $ 842 Darden Restaurants, Inc. 18,800 620 DISH Network Corp. Class A(2) 86,500 1,402 Gap, Inc. (The) 80,600 1,322 H&R Block, Inc. 78,000 1,344 Hasbro, Inc. 25,400 616 Interpublic Group of Cos., Inc. (The)(2) 170,900 863 Liberty Global, Inc. Class A(2) 51,800 823 Limited Brands, Inc. 44,700 535 Penn National Gaming, Inc.(2) 23,600 687 Polo Ralph Lauren Corp. 15,230 815 Ross Stores, Inc. 30,400 1,174 TJX Cos., Inc. (The) 23,360 735 -------------- 11,778 -------------- CONSUMER STAPLES--5.3% Dean Foods Co.(2) 97,900 1,878 Kroger Co. (The) 30,300 668 Pepsi Bottling Group, Inc. (The) 40,300 1,364 -------------- 3,910 -------------- ENERGY--8.2% Alpha Natural Resources, Inc.(2) 23,300 612 Comstock Resources, Inc.(2) 19,600 648 Dresser-Rand Group, Inc.(2) 31,000 809 Encore Acquisition Co.(2) 39,500 1,219 ENSCO International, Inc. 9,000 314 Murphy Oil Corp. 21,900 1,190 Tidewater, Inc. 18,200 780 Walter Energy, Inc. 13,200 478 -------------- 6,050 -------------- FINANCIALS--5.0% AmeriCredit Corp.(2) 46,500 630 Aspen Insurance Holdings Ltd. 33,800 755 Jefferies Group, Inc.(2) 49,300 1,052 Lazard Ltd. Class A 10,800 291 TD Ameritrade Holding Corp.(2) 53,100 931 -------------- 3,659 -------------- HEALTH CARE--11.7% Beckman Coulter, Inc. 9,800 560 Biogen Idec, Inc.(2) 12,700 573
SHARES VALUE -------------- -------------- HEALTH CARE--(CONTINUED) CIGNA Corp. 43,300 $ 1,043 Forest Laboratories, Inc.(2) 15,500 389 Hologic, Inc.(2) 45,100 642 Humana, Inc.(2) 7,490 242 LifePoint Hospitals, Inc.(2) 13,700 360 Omnicare, Inc. 19,400 500 Quest Diagnostics, Inc. 6,600 372 Universal Health Services, Inc. Class B 36,100 1,763 Valeant Pharmaceuticals International(2) 42,100 1,083 Watson Pharmaceuticals, Inc.(2) 31,700 1,068 -------------- 8,595 -------------- INDUSTRIALS--17.7% Brink's Co. (The) 23,000 668 Cooper Industries Ltd. Class A 25,700 798 Dover Corp. 41,900 1,386 General Cable Corp.(2) 23,400 879 Goodrich Corp. 34,600 1,729 Harsco Corp. 55,520 1,571 ITT Corp. 14,800 659 Manpower, Inc. 38,300 1,622 Northrop Grumman Corp. 14,400 658 Thomas & Betts Corp.(2) 45,100 1,301 UTI Worldwide, Inc.(2) 54,400 620 WESCO International, Inc.(2) 44,400 1,112 -------------- 13,003 -------------- INFORMATION TECHNOLOGY--24.2% Affiliated Computer Services, Inc. Class A(2) 34,400 1,528 Arrow Electronics, Inc.(2) 25,900 550 Avnet, Inc.(2) 74,600 1,569 Broadcom Corp. Class A(2) 18,800 466 Compuware Corp.(2) 60,900 418 Cypress Semiconductor Corp.(2) 126,400 1,163 Fidelity National Information Services, Inc. 27,900 557 Fiserv, Inc.(2) 38,000 1,737 Harris Corp. 29,700 842 LG Display Co. Ltd. ADR 59,600 744 Marvell Technology Group Ltd.(2) 34,900 406 Novellus Systems, Inc.(2) 23,800 398 ON Semiconductor Corp.(2) 69,000 473 QLogic Corp.(2) 48,400 614 Red Hat, Inc.(2) 36,700 739 Silicon Laboratories, Inc.(2) 19,200 729
Refer to Footnote Legend before the Schedules of Investments 15 VIRTUS MID-CAP GROWTH FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- INFORMATION TECHNOLOGY--(CONTINUED) Sybase, Inc.(2) 38,100 $ 1,194 Symantec Corp.(2) 117,500 1,828 Teradata Corp.(2) 27,200 637 Western Digital Corp.(2) 45,600 1,208 -------------- 17,800 -------------- MATERIALS--4.9% Ball Corp. 19,000 858 Cliffs Natural Resources, Inc. 21,800 534 Crown Holdings, Inc.(2) 72,800 1,757 Terra Industries, Inc. 17,600 426 -------------- 3,575 -------------- TELECOMMUNICATION SERVICES--2.9% NII Holdings, Inc.(2) 37,500 715 Telephone & Data Systems, Inc. 48,700 1,378 -------------- 2,093 -------------- UTILITIES--2.3% Energen Corp. 17,800 710 UGI Corp. 37,300 951 -------------- 1,661 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $74,888) 72,124 -------------- TOTAL LONG TERM INVESTMENTS--98.2% (IDENTIFIED COST $74,888) 72,124 -------------- SHORT-TERM INVESTMENTS--1.9% MONEY MARKET MUTUAL FUNDS--1.9% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 1,417,602 1,418 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,418) 1,418 -------------- TOTAL INVESTMENTS--100.1% (IDENTIFIED COST $76,306) 73,542(1) Other assets and liabilities, net--(0.1)% (91) -------------- NET ASSETS--100.0% $ 73,451 ==============
ABBREVIATIONS: ADR American Depositary Receipt. Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES -------------------------------------------------- Equity Securities: Common Stock $72,124 $72,124 Short-Term Investments 1,418 1,418 TOTAL INVESTMENTS $73,542 $73,542 --------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 16 VIRTUS MID-CAP VALUE FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--99.0% CONSUMER DISCRETIONARY--19.4% Big Lots, Inc.(2) 437,600 $ 9,203 Foot Locker, Inc. 710,000 7,434 Fortune Brands, Inc. 248,300 8,626 Home Depot, Inc. (The) 480,400 11,352 Limited Brands, Inc. 985,300 11,794 Penney (J.C.) Co., Inc. 391,000 11,226 TJX Cos., Inc. (The) 255,800 8,047 -------------- 67,682 -------------- CONSUMER STAPLES--15.2% Del Monte Foods Co. 1,352,600 12,687 Koninklijke Ahold NV Sponsored ADR 1,340,100 15,331 Safeway, Inc. 606,900 12,362 Sara Lee Corp. 1,293,300 12,623 -------------- 53,003 -------------- ENERGY--9.0% El Paso Corp. 1,034,300 9,547 Spectra Energy Corp. 842,042 14,247 Williams Cos., Inc. (The) 499,000 7,789 -------------- 31,583 -------------- FINANCIALS--1.4% Alleghany Corp.(2) 17,978 4,872 -------------- INDUSTRIALS--23.3% ACCO Brands Corp.(2) 769,832 2,171 Con-way, Inc. 330,500 11,670 Masco Corp. 893,600 8,561 Owens Corning, Inc.(2) 791,100 10,110 Raytheon Co. 187,300 8,322 Republic Services, Inc. 630,602 15,393 Thomas & Betts Corp.(2) 432,800 12,491 USG Corp.(2) 500,400 5,039 Waste Management, Inc. 263,900 7,431 -------------- 81,188 -------------- MATERIALS--16.9% Ball Corp. 275,800 12,455 Crown Holdings, Inc.(2) 623,000 15,039 Owens-Illinois, Inc.(2) 520,750 14,586 Packaging Corp. of America 624,200 10,112 Weyerhaeuser Co. 229,200 6,975 -------------- 59,167 --------------
SHARES VALUE -------------- -------------- UTILITIES--13.8% Dominion Resources, Inc. 324,700 $ 10,851 Duke Energy Corp. 837,884 12,225 Dynegy, Inc. Class A(2) 2,420,900 5,495 Mirant Corp.(2) 502,900 7,916 ONEOK, Inc. 402,000 11,855 -------------- 48,342 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $489,563) 345,837 -------------- TOTAL LONG TERM INVESTMENTS--99.0% (IDENTIFIED COST $489,563) 345,837 -------------- SHORT-TERM INVESTMENTS--0.7% MONEY MARKET MUTUAL FUNDS--0.7% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 2,401,409 2,401 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $2,401) 2,401 -------------- TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $491,964) 348,238(1) Other assets and liabilities, net--0.3% 918 -------------- NET ASSETS--100.0% $ 349,156 ==============
ABBREVIATIONS: ADR American Depositary Receipt. Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES --------------------------------------------------- Equity Securities: Common Stock $345,837 $345,837 Short-Term Investments 2,401 2,401 TOTAL INVESTMENTS $348,238 $348,238 ---------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 17 VIRTUS QUALITY SMALL-CAP FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--97.7% CONSUMER DISCRETIONARY--10.1% Cherokee, Inc. 75,900 $ 1,504 Matthews International Corp. Class A 81,600 2,540 Tempur-Pedic International, Inc. 238,800 3,121 -------------- 7,165 -------------- CONSUMER STAPLES--9.1% Chattem, Inc.(2) 50,900 3,466 WD-40 Co. 103,500 3,002 -------------- 6,468 -------------- ENERGY--9.4% CARBO Ceramics, Inc. 66,900 2,288 World Fuel Services Corp. 105,000 4,329 -------------- 6,617 -------------- FINANCIALS--17.6% Ares Capital Corp. 377,066 3,039 Cathay General Bancorp 141,300 1,344 Entertainment Properties Trust 158,300 3,261 Federated Investors, Inc. Class B 122,300 2,946 Financial Federal Corp. 90,500 1,860 -------------- 12,450 -------------- HEALTH CARE--11.7% Landauer, Inc. 55,900 3,429 Owens & Minor, Inc. 82,100 3,597 Young Innovations, Inc. 56,900 1,240 -------------- 8,266 -------------- INDUSTRIALS--28.3% ABM Industries, Inc. 243,900 4,407 CLARCOR, Inc. 90,100 2,630 Graco, Inc. 68,500 1,508 Landstar System, Inc. 91,100 3,272 Lincoln Electric Holdings, Inc. 72,400 2,609 McGrath RentCorp 147,100 2,804 Roper Industries, Inc. 61,800 2,800 -------------- 20,030 -------------- INFORMATION TECHNOLOGY--9.1% Cass Information Systems, Inc. 28,800 943 Computer Services, Inc. 52,100 1,680 Syntel, Inc. 120,100 3,776 -------------- 6,399 --------------
SHARES VALUE -------------- -------------- MATERIALS--2.4% Balchem Corp. 70,100 $ 1,719 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $79,107) 69,114 -------------- TOTAL LONG TERM INVESTMENTS--97.7% (IDENTIFIED COST $79,107) 69,114 -------------- SHORT-TERM INVESTMENTS--2.1% MONEY MARKET MUTUAL FUNDS--2.1% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 1,480,587 1,481 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,481) 1,481 -------------- TOTAL INVESTMENTS--99.8% (IDENTIFIED COST $80,588) 70,595(1) Other assets and liabilities, net--0.2% 170 -------------- NET ASSETS--100.0% $ 70,765 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES -------------------------------------------------- Equity Securities: Common Stock $69,114 $69,114 Short-Term Investments 1,481 1,481 TOTAL INVESTMENTS $70,595 $70,595 --------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 18 VIRTUS SMALL-CAP CORE FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--94.8% CONSUMER DISCRETIONARY--9.3% Pool Corp. 74,600 $ 1,235 Steiner Leisure Ltd.(2) 44,100 1,346 Tempur-Pedic International, Inc. 63,230 827 -------------- 3,408 -------------- CONSUMER STAPLES--4.0% Chattem, Inc.(2) 21,600 1,471 -------------- ENERGY--4.6% CARBO Ceramics, Inc. 39,000 1,334 Petroleum Development Corp.(2) 21,800 342 -------------- 1,676 -------------- FINANCIALS--9.0% Cohen & Steers, Inc. 71,200 1,064 Federated Investors, Inc. Class B 43,200 1,041 Financial Federal Corp. 57,550 1,183 -------------- 3,288 -------------- HEALTH CARE--17.0% Abaxis, Inc.(2) 68,000 1,397 Computer Programs & Systems, Inc. 36,500 1,398 Haemonetics Corp.(2) 29,100 1,659 Techne Corp. 27,600 1,761 -------------- 6,215 -------------- INDUSTRIALS--22.8% ABM Industries, Inc. 43,100 779 Forward Air Corp. 67,000 1,428 HEICO Corp. Class A 45,000 1,317 Lincoln Electric Holdings, Inc. 34,000 1,225 RBC Bearings, Inc.(2) 61,800 1,264 Rollins, Inc. 36,900 639 Roper Industries, Inc. 37,500 1,699 -------------- 8,351 -------------- INFORMATION TECHNOLOGY--23.5% ANSYS, Inc.(2) 64,250 2,002 Blackbaud, Inc. 115,372 1,794 FactSet Research Systems, Inc. 31,500 1,571 Jack Henry & Associates, Inc. 76,615 1,590 ScanSource, Inc.(2) 66,300 1,625 -------------- 8,582 --------------
SHARES VALUE -------------- -------------- MATERIALS--4.6% AptarGroup, Inc. 49,500 $ 1,671 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $32,701) 34,662 -------------- TOTAL LONG TERM INVESTMENTS--94.8% (IDENTIFIED COST $32,701) 34,662 -------------- SHORT-TERM INVESTMENTS--4.5% MONEY MARKET MUTUAL FUNDS--4.5% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 1,639,737 1,640 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $1,640) 1,640 -------------- TOTAL INVESTMENTS--99.3% (IDENTIFIED COST $34,341) 36,302(1) Other assets and liabilities, net--0.7% 244 -------------- NET ASSETS--100.0% $ 36,546 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES -------------------------------------------------- Equity Securities: Common Stock $34,662 $34,662 Short-Term Investments 1,640 1,640 TOTAL INVESTMENTS $36,302 $36,302 --------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 19 VIRTUS SMALL-CAP GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--99.7% CONSUMER DISCRETIONARY--12.4% American Eagle Outfitters, Inc. 60,100 $ 852 AnnTaylor Stores Corp.(2) 25,000 200 Burger King Holdings, Inc. 41,300 713 Chico's FAS, Inc.(2) 103,100 1,003 Children's Place Retail Stores, Inc. (The)(2) 33,200 878 DreamWorks Animation SKG, Inc. Class A(2) 24,700 681 Guess?, Inc. 41,700 1,075 Jack in the Box, Inc.(2) 22,600 507 LKQ Corp.(2) 62,683 1,031 -------------- 6,940 -------------- CONSUMER STAPLES--3.5% Darling International, Inc.(2) 157,500 1,039 Ralcorp Holdings, Inc.(2) 14,800 902 -------------- 1,941 -------------- ENERGY--8.5% Dril-Quip, Inc.(2) 18,000 686 Global Industries Ltd.(2) 100,000 566 Goodrich Petroleum Corp.(2) 31,300 770 Helix Energy Solutions Group, Inc.(2) 49,800 541 Massey Energy Co. 36,700 717 Pride International, Inc.(2) 34,300 859 Swift Energy Co.(2) 39,400 656 -------------- 4,795 -------------- FINANCIALS--4.6% Knight Capital Group, Inc. Class A(2) 51,100 871 Lazard Ltd. Class A 32,900 886 MF Global Ltd.(2) 143,500 851 -------------- 2,608 -------------- HEALTH CARE--23.0% Alexion Pharmaceuticals, Inc.(2) 26,000 1,069 BioMarin Pharmaceutical, Inc.(2) 40,400 631 ev3, Inc.(2) 55,100 591 Haemonetics Corp.(2) 10,000 570 HMS Holdings Corp.(2) 25,000 1,018 Luminex Corp.(2) 54,300 1,007 Myriad Genetics, Inc.(2) 29,400 1,048 Myriad Pharmaceuticals, Inc.(2) 7,350 34 Neogen Corp.(2) 46,348 1,343 Noven Pharmaceuticals, Inc.(2) 80,451 1,150
SHARES VALUE -------------- -------------- HEALTH CARE--(CONTINUED) NuVasive, Inc.(2) 29,823 $ 1,330 Perrigo Co. 42,000 1,167 Phase Forward, Inc.(2) 38,000 574 Sepracor, Inc.(2) 39,400 682 United Therapeutics Corp.(2) 8,600 717 -------------- 12,931 -------------- INDUSTRIALS--14.5% American Superconductor Corp.(2) 39,051 1,025 Atlas Air Worldwide Holdings, Inc.(2) 17,200 399 Beacon Roofing Supply, Inc.(2) 48,500 701 Bucyrus International, Inc. 33,100 945 Harsco Corp. 21,100 597 II-VI, Inc.(2) 34,984 776 Landstar System, Inc. 21,900 786 Navios Maritime Holdings, Inc. 78,900 334 Navistar International Corp.(2) 15,700 685 Tutor Perini Corp.(2) 45,100 783 Yingli Green Energy Holding Co. Ltd.(2) 79,600 1,079 -------------- 8,110 -------------- INFORMATION TECHNOLOGY--26.3% Advanced Energy Industries, Inc.(2) 63,100 567 Atheros Communications, Inc.(2) 33,000 635 Cavium Networks, Inc.(2) 40,600 683 Ciena Corp.(2) 68,200 706 CommScope, Inc.(2) 31,200 819 Constant Contact, Inc.(2) 64,100 1,272 Cybersource Corp.(2) 64,700 990 DG FastChannel, Inc.(2) 35,200 644 FormFactor, Inc.(2) 42,000 724 Macrovision Solutions Corp.(2) 36,600 798 Microsemi Corp.(2) 38,000 524 Nuance Communications, Inc.(2) 82,700 1,000 Plantronics, Inc. 60,000 1,135 PMC-Sierra, Inc.(2) 67,500 537 Riverbed Technology, Inc.(2) 46,900 1,088 ValueClick, Inc.(2) 76,100 801 Volterra Semiconductor Corp.(2) 77,654 1,020 Websense, Inc.(2) 45,846 818 -------------- 14,761 -------------- MATERIALS--4.2% FMC Corp. 15,900 752 Nalco Holding Co. 54,000 909
Refer to Footnote Legend before the Schedules of Investments 20 VIRTUS SMALL-CAP GROWTH FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- MATERIALS--(CONTINUED) Sensient Technologies Corp. 30,290 $ 684 -------------- 2,345 -------------- TELECOMMUNICATION SERVICES--1.5% Neutral Tandem, Inc.(2) 29,200 862 -------------- UTILITIES--1.2% Ormat Technologies, Inc. 17,000 685 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $53,636) 55,978 -------------- TOTAL LONG TERM INVESTMENTS--99.7% (IDENTIFIED COST $53,636) 55,978 -------------- SHORT-TERM INVESTMENTS--0.5% MONEY MARKET MUTUAL FUNDS--0.5% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 291,857 292 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $292) 292 -------------- TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $53,928) 56,270(1) Other assets and liabilities, net--(0.2)% (134) -------------- NET ASSETS--100.0% $ 56,136 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES --------------------------------------------------- Equity Securities: Common Stock $55,978 $55,978 Short-Term Investments 292 292 TOTAL INVESTMENTS $56,270 $56,270 ---------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 21 VIRTUS SMALL-CAP SUSTAINABLE GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--95.7% CONSUMER DISCRETIONARY--13.0% Aaron Rents, Inc. 15,950 $ 476 Morningstar, Inc.(2) 10,000 412 Strayer Education, Inc. 1,900 414 -------------- 1,302 -------------- CONSUMER STAPLES--3.9% Hansen Natural Corp.(2) 12,450 384 -------------- ENERGY--7.3% NATCO Group, Inc. Class A(2) 11,500 379 Petroleum Development Corp.(2) 7,600 119 Tesco Corp.(2) 29,000 230 -------------- 728 -------------- FINANCIALS--2.6% World Acceptance Corp.(2) 12,900 257 -------------- HEALTH CARE--17.5% Abaxis, Inc.(2) 28,900 594 Meridian Bioscience, Inc. 21,200 479 National Research Corp. 9,000 219 Techne Corp. 7,150 456 -------------- 1,748 -------------- INDUSTRIALS--16.1% Copart, Inc.(2) 16,550 574 Forward Air Corp. 24,300 518 HEICO Corp. Class A 17,650 516 -------------- 1,608 -------------- INFORMATION TECHNOLOGY--35.3% ANSYS, Inc.(2) 16,750 522 Blackbaud, Inc. 31,500 490 Cabot Microelectronics Corp.(2) 10,250 290 FactSet Research Systems, Inc. 7,450 371 Hittite Microwave Corp.(2) 15,500 539 Power Integrations, Inc. 16,250 387 Quality Systems, Inc. 7,050 401 ScanSource, Inc.(2) 21,400 525 -------------- 3,525 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $9,673) 9,552 -------------- TOTAL LONG TERM INVESTMENTS--95.7% (IDENTIFIED COST $9,673) 9,552 --------------
SHARES VALUE -------------- -------------- SHORT-TERM INVESTMENTS--6.1% MONEY MARKET MUTUAL FUNDS--6.1% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 611,044 $ 611 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $611) 611 -------------- TOTAL INVESTMENTS--101.8% (IDENTIFIED COST $10,284) 10,163(1) Other assets and liabilities, net--(1.8)% (179) -------------- NET ASSETS--100.0% $ 9,984 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES -------------------------------------------------- Equity Securities: Common Stock $ 9,552 $ 9,552 Short-Term Investments 611 611 TOTAL INVESTMENTS $10,163 $10,163 --------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 22 VIRTUS STRATEGIC GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--98.3% CONSUMER DISCRETIONARY--10.3% Amazon.com, Inc.(2) 16,890 $ 1,413 American Eagle Outfitters, Inc. 142,010 2,012 DreamWorks Animation SKG, Inc. Class A(2) 77,100 2,127 Kohl's Corp.(2) 33,220 1,420 LKQ Corp.(2) 86,900 1,430 Lowe's Cos., Inc. 67,050 1,301 McDonald's Corp. 32,870 1,890 Yum! Brands, Inc. 86,050 2,869 -------------- 14,462 -------------- CONSUMER STAPLES--10.2% Colgate-Palmolive Co. 41,310 2,922 CVS Caremark Corp. 68,260 2,176 General Mills, Inc. 20,560 1,152 Kroger Co. (The) 108,250 2,387 Philip Morris International, Inc. 33,330 1,454 Ralcorp Holdings, Inc.(2) 41,320 2,517 Safeway, Inc. 84,800 1,727 -------------- 14,335 -------------- ENERGY--7.9% Pride International, Inc.(2) 89,450 2,242 Range Resources Corp. 38,440 1,592 Schlumberger Ltd. 28,820 1,559 Transocean Ltd.(2) 33,413 2,482 Weatherford International Ltd.(2) 161,820 3,165 -------------- 11,040 -------------- FINANCIALS--3.4% BlackRock, Inc. 10,950 1,921 Goldman Sachs Group, Inc. (The) 19,540 2,881 -------------- 4,802 -------------- HEALTH CARE--12.8% Abbott Laboratories 36,870 1,734 Allergan, Inc. 33,080 1,574 Amgen, Inc.(2) 22,310 1,181 Biogen Idec, Inc.(2) 15,060 680 Bristol-Myers Squibb Co. 110,760 2,250 Celgene Corp.(2) 51,290 2,454 Cephalon, Inc.(2) 22,390 1,268 Genzyme Corp.(2) 28,140 1,567 Gilead Sciences, Inc.(2) 35,580 1,667
SHARES VALUE -------------- -------------- HEALTH CARE--(CONTINUED) Mylan, Inc.(2) 89,500 $ 1,168 NuVasive, Inc.(2) 11,400 508 Perrigo Co. 65,710 1,825 -------------- 17,876 -------------- INDUSTRIALS--10.3% ABB Ltd. Sponsored ADR 88,830 1,402 Harsco Corp. 73,180 2,071 Joy Global, Inc. 80,700 2,883 Norfolk Southern Corp. 50,910 1,918 SPX Corp. 24,590 1,204 Stericycle, Inc.(2) 42,660 2,198 Tutor Perini Corp.(2) 61,990 1,076 United Technologies Corp. 31,180 1,620 -------------- 14,372 -------------- INFORMATION TECHNOLOGY--36.4% Adobe Systems, Inc.(2) 80,400 2,275 Apple, Inc.(2) 28,460 4,047 Applied Materials, Inc. 251,990 2,764 Broadcom Corp. Class A(2) 118,570 2,939 Cisco Systems, Inc.(2) 157,450 2,935 Corning, Inc. 132,440 2,127 Cybersource Corp.(2) 77,400 1,184 EMC Corp.(2) 157,220 2,060 Google, Inc. Class A(2) 9,025 3,805 Hewlett-Packard Co. 93,680 3,621 International Business Machines Corp. 30,520 3,187 Marvell Technology Group Ltd.(2) 253,000 2,945 Microsoft Corp. 117,700 2,798 Nuance Communications, Inc.(2) 149,470 1,807 Oracle Corp. 143,100 3,065 QUALCOMM, Inc. 59,570 2,693 Research In Motion Ltd.(2) 25,680 1,825 Silicon Laboratories, Inc.(2) 60,200 2,284 Symantec Corp.(2) 130,530 2,031 Websense, Inc.(2) 35,000 624 -------------- 51,016 -------------- MATERIALS--5.2% FMC Corp. 28,310 1,339 Freeport-McMoRan Copper & Gold, Inc. 22,090 1,107 Monsanto Co. 24,140 1,794 Nalco Holding Co. 90,100 1,517
Refer to Footnote Legend before the Schedules of Investments 23 VIRTUS STRATEGIC GROWTH FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- MATERIALS--(CONTINUED) Potash Corp. of Saskatchewan, Inc. 16,460 $ 1,532 -------------- 7,289 -------------- TELECOMMUNICATION SERVICES--1.8% American Tower Corp. Class A(2) 59,870 1,888 Neutral Tandem, Inc.(2) 19,100 564 -------------- 2,452 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $136,946) 137,644 -------------- EXCHANGE TRADED FUNDS--1.3% Financial Select Sector SPDR Fund 151,200 1,810 -------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $1,673) 1,810 -------------- TOTAL LONG TERM INVESTMENTS--99.6% (IDENTIFIED COST $138,619) 139,454 -------------- SHORT-TERM INVESTMENTS--0.2% MONEY MARKET MUTUAL FUNDS--0.2% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 278,299 278 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $278) 278 -------------- TOTAL INVESTMENTS--99.8% (IDENTIFIED COST $138,897) 139,732(1) Other assets and liabilities, net--0.2% 223 -------------- NET ASSETS--100.0% $ 139,955 ==============
ABBREVIATIONS: ADR American Depositary Receipt. SPDR S&P Depositary Receipt. Refer to Footnote Legend before the Schedules of Investments VIRTUS STRATEGIC GROWTH FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
COUNTRY WEIGHTINGS as of 6/30/09* + ----------------------------------- United States 92% Canada 3 Japan 2 Switzerland 2 Netherlands 1 --- Total 100% ===
* FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the table shown above. Country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. + % of total investments as of June 30, 2009 Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES --------------------------------------------------- Equity Securities: Common Stock $137,644 $137,644 Exchange Traded Funds 1,810 1,810 Short-Term Investments 278 278 TOTAL INVESTMENTS $139,732 $139,732 ---------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 24 VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- U.S. GOVERNMENT SECURITIES--5.0% U.S. Treasury Note 0.875%, 4/30/11 $ 3,790 $ 3,779 4.750%, 8/15/17 1,740 1,907 3.125%, 5/15/19 3,640 3,521 -------------- TOTAL U.S. GOVERNMENT SECURITIES (IDENTIFIED COST $9,029) 9,207 -------------- MUNICIPAL BONDS--3.7% ARIZONA--0.6% Salt River Project Agricultural Improvement & Power District Series 08-A, 5.000%, 1/1/38 1,260 1,251 -------------- DELAWARE--0.6% State Transportation Authority Series A (FSA, NATL-RE Insured) 5.000%, 7/1/19 980 1,070 -------------- FLORIDA--0.1% Miami-Dade County Educational Facilities Authority Taxable Series C 5.480%, 4/1/16 125 123 -------------- PENNSYLVANIA--2.3% City of Pittsburgh Pension Obligation Taxable Series C (NATL- RE, FGIC Insured) 6.500%, 3/1/17 4,250 4,258 -------------- VIRGINIA--0.1% Tobacco Settlement Financing Corp. Taxable Series 07-A1, 6.706%, 6/1/46 345 213 -------------- TOTAL MUNICIPAL BONDS (IDENTIFIED COST $6,968) 6,915 -------------- MORTGAGE-BACKED SECURITIES--20.9% AGENCY--16.8% FHLMC R010-AB 5.500%, 12/15/19 234 241 FHMLC 5.000%, 1/1/35 5,176 5,293 FNMA 5.000%, 6/1/18 967 1,012 4.000%, 7/1/19 505 514 5.000%, 8/1/20 285 297 6.000%, 11/1/31 236 249 5.500%, 7/1/34 1,594 1,653 5.000%, 3/1/36 157 160 5.500%, 3/1/36 1,596 1,654
PAR VALUE VALUE -------------- -------------- AGENCY--(CONTINUED) 6.000%, 9/1/36 $ 327 $ 342 5.500%, 11/1/36 1,159 1,199 6.000%, 9/1/37 506 529 6.000%, 2/1/38 435 455 5.000%, 5/1/38 1,366 1,393 5.500%, 6/1/38 2,291 2,368 6.000%, 11/1/38 1,422 1,488 4.000%, 1/1/39 633 614 4.500%, 3/1/39 1,860 1,859 4.500%, 3/1/39 447 446 6.000%, 3/1/39 545 570 4.500%, 4/1/39 347 347 4.500%, 4/1/39 1,195 1,194 4.000%, 5/1/39 599 581 4.500%, 5/1/39 5,200 5,196 GNMA 6.500%, 11/15/23 10 10 6.500%, 11/15/23 113 120 6.500%, 11/15/23 60 64 6.500%, 11/15/23 92 98 6.500%, 12/15/23 124 131 6.500%, 12/15/23 85 90 6.500%, 12/15/23 104 111 6.500%, 3/15/24 77 82 6.500%, 4/15/24 42 45 6.500%, 7/15/24 457 486 -------------- 30,891 -------------- NON-AGENCY--4.1% Bear Stearns Adjustable Rate Mortgage Trust 05-12, 13A1 5.444%, 2/25/36 (3) 636 390 Citigroup Mortgage Loan Trust, Inc. 05-5, 2A3 5.000%, 8/25/35 489 408 Credit Suisse Mortgage Capital Certificates 06-C1, A4 5.551%, 2/15/39 (3) 2,050 1,658 First Horizon Asset Securities, Inc. 05-AR1, 2A1 5.001%, 4/25/35 (3) 670 494 GE Capital Commercial Mortgage Corp. 03-C1, C 4.975%, 1/10/38 (3) 245 209 GS Mortgage Securities Corp. II 07-GG10, A4 5.805%, 8/10/45 (3) 600 453
Refer to Footnote Legend before the Schedules of Investments 25 VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- NON-AGENCY--(CONTINUED) JPMorgan Chase Commercial Mortgage Securities Corp. 07-LD12, A4 5.882%, 2/15/51 (3) $ 575 $ 431 Lehman Brothers - UBS Commercial Mortgage Trust 04-C7, A6 4.786%, 10/15/29(3) 1,800 1,518 07-C7, A3 5.866%, 9/15/45(3) 600 459 Wachovia Bank Commercial Mortgage Trust 07-C30, A5 5.342%, 12/15/43 400 263 Wells Fargo Mortgage Backed Securities Trust 04-EE, 2A3 3.585%, 12/25/34(3) 622 348 05-AR4, 2A1 4.537%, 4/25/35(3) 973 842 -------------- 7,473 -------------- TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $40,077) 38,364 -------------- ASSET-BACKED SECURITIES--0.8% Associates Manufactured Housing Pass-Through-Certificate 97-2, A6 7.075%, 3/15/28 (3) 220 211 Bosphorus Financial Services Ltd. 144A 2.683%, 2/15/12 (3)(4) 172 149 Capital One Auto Finance Trust 07-B, A3A 5.030%, 4/15/12 530 535 Carmax Auto Owner Trust 05-2, A4 4.340%, 9/15/10 95 96 Dunkin Securitization 06-1, M1 144A 8.285%, 6/20/31 (4) 375 313 GMAC Mortgage Corp. Loan Trust 05-HE2, A3 4.622%, 11/25/35 (3) 80 76 Wachovia Auto Loan Owner Trust 06-2A, A3 144A 5.230%, 8/22/11 (4) 137 138 -------------- TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $1,614) 1,518 -------------- CORPORATE BONDS--14.6% CONSUMER DISCRETIONARY--1.6% Comcast Corp. 5.300%, 1/15/14 250 258 5.700%, 7/1/19 440 436 COX Communications, Inc. 144A 6.250%, 6/1/18 (4) 300 297 Hasbro, Inc. 6.300%, 9/15/17 275 268
PAR VALUE VALUE -------------- -------------- CONSUMER DISCRETIONARY--(CONTINUED) News America, Inc. 6.650%, 11/15/37 $ 550 $ 495 Royal Caribbean Cruises Ltd. 7.250%, 6/15/16 340 270 Seneca Gaming Corp. Series B 7.250%, 5/1/12 260 226 Time Warner Cable, Inc. 5.850%, 5/1/17 160 160 Videotron Ltee 6.375%, 12/15/15 225 203 WMG Acquisition Corp. 144A 9.500%, 6/15/16 (4) 290 290 -------------- 2,903 -------------- CONSUMER STAPLES--0.7% Alliance One International, Inc. 144A 10.000%, 7/15/16 (4) 310 295 BAT International Finance plc 144A 9.500%, 11/15/18 (4) 60 71 Delhaize Group 6.500%, 6/15/17 465 475 Reynolds American, Inc. 7.300%, 7/15/15 550 551 -------------- 1,392 -------------- ENERGY--1.7% Buckeye Partners LP 6.050%, 1/15/18 75 68 Helix Energy Solutions Group, Inc. 144A 9.500%, 1/15/16 (4) 60 55 Kinder Morgan Finance Co. ULC 5.700%, 1/5/16 930 802 NGPL PipeCo. LLC 144A 6.514%, 12/15/12 (4) 325 341 Petro-Canada 6.050%, 5/15/18 120 119 PetroHawk Energy Corp. 144A 10.500%, 8/1/14 (4) 125 128 Petropower I Funding Trust 144A 7.360%, 2/15/14 (4) 919 914 Smith International, Inc. 9.750%, 3/15/19 175 202 Swift Energy Co. 7.125%, 6/1/17 325 231 TEPPCO Partners LP 7.625%, 2/15/12 150 157 Weatherford International Ltd. 9.625%, 3/1/19 78 92 -------------- 3,109 -------------- FINANCIALS--5.5% American Express Credit Corp. Series C 7.300%, 8/20/13 275 286 Bank of America Corp. 5.750%, 8/15/16 300 260 5.750%, 12/1/17 205 183 5.650%, 5/1/18 300 265 Bank of New York / Mellon Corp. (The) 4.950%, 11/1/12 370 391 Bear Stearns Cos., Inc. LLC (The) 7.250%, 2/1/18 330 348 Capital One Financial Corp. 7.375%, 5/23/14 455 469
Refer to Footnote Legend before the Schedules of Investments 26 VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- FINANCIALS--(CONTINUED) Citigroup, Inc. 5.000%, 9/15/14 $ 340 $ 285 4.875%, 5/7/15 460 376 Credit Suisse New York 5.000%, 5/15/13 330 337 Deutsche Bank AG 4.875%, 5/20/13 110 113 Ford Motor Credit Co. LLC 8.625%, 11/1/10 190 179 7.800%, 6/1/12 255 220 General Electric Capital Corp. 6.875%, 1/10/39 515 464 GMAC, Inc. 144A 6.750%, 12/1/14(4) 73 58 Goldman Sachs Group, Inc. (The) 5.950%, 1/18/18 280 272 6.150%, 4/1/18 225 219 HBOS plc 144A 5.375%, 11/29/49 (3)(4) 750 362 International Lease Finance Corp. 4.750%, 1/13/12 375 295 Janus Capital Group, Inc. 6.500%, 6/15/12 185 171 JPMorgan Chase & Co. 5.250%, 5/1/15 350 337 Series 1, 7.900%, 4/29/49(3) 214 187 Merrill Lynch & Co., Inc. 6.110%, 1/29/37 415 320 National Capital Trust II 144A 5.486%, 12/29/49 (3)(4) 1,000 660 Northern Trust Co. (The) 6.500%, 8/15/18 250 272 ProLogis 6.625%, 5/15/18 150 118 Rabobank Nederland NV 144A 11.000%, 12/29/49 (3)(4) 400 446 Simon Property Group LP 6.750%, 5/15/14 470 472 SunTrust Banks, Inc. 5.250%, 11/5/12 370 377 UFJ Finance AEC 6.750%, 7/15/13 325 336 Wachovia Bank NA 5.000%, 8/15/15 250 236 Wachovia Corp. 4.875%, 2/15/14 435 425 Westfield Capital Corp. Ltd./ Westfield Finance Authority 144A 5.125%, 11/15/14 (4) 420 378 -------------- 10,117 -------------- HEALTH CARE--0.3% Merck & Co., Inc. 1.875%, 6/30/11 155 155 Quest Diagnostics, Inc. 6.400%, 7/1/17 330 337 -------------- 492 -------------- INDUSTRIALS--0.8% Allied Waste North America, Inc. 6.125%, 2/15/14 500 505
PAR VALUE VALUE -------------- -------------- INDUSTRIALS--(CONTINUED) Continental Airlines, Inc. 98-1A, 6.648%, 3/15/19 $ 422 $ 346 Pitney Bowes, Inc. 4.750%, 5/15/18 450 418 Terex Corp. 7.375%, 1/15/14 140 129 United Airlines, Inc. 01-A1, 6.071%, 3/1/13 19 19 -------------- 1,417 -------------- INFORMATION TECHNOLOGY--1.4% Broadridge Financial Solutions, Inc. 6.125%, 6/1/17 155 131 Convergys Corp. 4.875%, 12/15/09 750 742 Fiserv, Inc. 6.125%, 11/20/12 455 472 Intuit, Inc. 5.750%, 3/15/17 80 76 Oracle Corp. 6.125%, 7/8/39 710 705 Tyco Electronic Group SA 6.000%, 10/1/12 125 123 Xerox Corp. 6.750%, 2/1/17 385 350 -------------- 2,599 -------------- MATERIALS--0.1% Norske Skog Canada Ltd. 7.375%, 3/1/14 210 90 Verso Paper Holdings LLC / Verso Paper, Inc. Series B 4.778%, 8/1/14 (3) 107 51 -------------- 141 -------------- TELECOMMUNICATION SERVICES--1.6% AT&T, Inc. 5.625%, 6/15/16 550 566 5.800%, 2/15/19 460 467 Citizen Communications Co. 6.250%, 1/15/13 235 217 France Telecom SA 4.375%, 7/8/14 155 156 OJSC Vimpel Communications 144A (VIP Finance Ireland Ltd.) 9.125%, 4/30/18 (4) 160 136 Qwest Corp. 7.875%, 9/1/11 150 150 6.500%, 6/1/17 190 167 Telecom Italia Capital SA 6.999%, 6/4/18 250 253 7.175%, 6/18/19 265 269 Telefonica Emisiones S.A. 5.877%, 7/15/19 320 330 Verizon Communications, Inc. 4.900%, 9/15/15 275 275 -------------- 2,986 -------------- UTILITIES--0.9% Allegheny Energy Supply Co. LLC 144A 8.250%, 4/15/12 (4) 140 146
Refer to Footnote Legend before the Schedules of Investments 27 VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
PAR VALUE VALUE -------------- -------------- UTILITIES--(CONTINUED) AmeriGas Partners LP 7.250%, 5/20/15 $ 500 $ 471 Great River Energy 144A 5.829%, 7/1/17 (4) 284 273 Northeast Utilities 5.650%, 6/1/13 265 266 United Energy Distribution Holdings Property Ltd. 144A 5.450%, 4/15/16 (4) 500 461 -------------- 1,617 -------------- TOTAL CORPORATE BONDS (IDENTIFIED COST $28,472) 26,773 --------------
SHARES VALUE -------------- -------------- PREFERRED STOCK--0.0% FINANCIALS--0.0% Preferred Blocker, Inc. (GMAC) Pfd. 144A 7.000%(4) 68 29 -------------- TOTAL PREFERRED STOCK (IDENTIFIED COST $21) 29 -------------- COMMON STOCKS--46.7% CONSUMER DISCRETIONARY--3.2% McDonald's Corp. 35,000 2,012 NIKE, Inc. Class B 40,000 2,071 Under Armour, Inc. Class A(2) 83,000 1,858 -------------- 5,941 -------------- CONSUMER STAPLES--5.6% Altria Group, Inc. 109,000 1,787 Bunge Ltd. 32,900 1,982 Costco Wholesale Corp. 45,000 2,057 PepsiCo, Inc. 42,000 2,308 Philip Morris International, Inc. 47,900 2,089 -------------- 10,223 -------------- ENERGY--7.3% Chesapeake Energy Corp. 47,600 944 ConocoPhillips 47,900 2,015 Halliburton Co. 91,000 1,884 Massey Energy Co. 75,754 1,480 Occidental Petroleum Corp. 30,000 1,974 Petroleo Brasileiro SA ADR 49,000 2,008 St. Mary Land & Exploration Co. 63,000 1,315 Valero Energy Corp. 101,000 1,706 -------------- 13,326 --------------
SHARES VALUE -------------- -------------- FINANCIALS--3.6% Allstate Corp. (The) 45,000 $ 1,098 Goldman Sachs Group, Inc. (The) 14,000 2,064 Hudson City Bancorp, Inc. 152,800 2,031 Reinsurance Group of America, Inc. 39,000 1,361 -------------- 6,554 -------------- HEALTH CARE--6.6% Celgene Corp.(2) 41,000 1,962 Gilead Sciences, Inc.(2) 46,000 2,155 Johnson & Johnson 36,200 2,056 Merck & Co., Inc. 68,100 1,904 St. Jude Medical, Inc.(2) 50,000 2,055 UnitedHealth Group, Inc. 83,600 2,088 -------------- 12,220 -------------- INDUSTRIALS--6.2% Boeing Co. (The) 43,000 1,828 Caterpillar, Inc. 54,000 1,784 Continental Airlines, Inc. Class B(2) 228,000 2,020 Foster Wheeler AG(2) 75,000 1,781 L-3 Communications Holdings, Inc. 28,900 2,005 Union Pacific Corp. 39,000 2,030 -------------- 11,448 -------------- INFORMATION TECHNOLOGY--8.0% Cisco Systems, Inc.(2) 111,300 2,075 Corning, Inc. 126,000 2,024 Hewlett-Packard Co. 56,000 2,164 International Business Machines Corp. 19,000 1,984 Microsoft Corp. 94,000 2,234 Nokia OYJ Sponsored ADR 137,000 1,997 QUALCOMM, Inc. 48,400 2,188 -------------- 14,666 -------------- MATERIALS--3.9% Alcoa, Inc. 115,000 1,188 Freeport-McMoRan Copper & Gold, Inc. 41,000 2,054 Nucor Corp. 46,000 2,044 Potash Corp. of Saskatchewan, Inc. 21,000 1,954 -------------- 7,240 -------------- TELECOMMUNICATION SERVICES--2.3% AT&T, Inc. 82,000 2,037
Refer to Footnote Legend before the Schedules of Investments 28 VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- TELECOMMUNICATION SERVICES--(CONTINUED) Verizon Communications, Inc. 70,000 $ 2,151 -------------- 4,188 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $74,087) 85,806 -------------- EXCHANGE TRADED FUNDS--1.0% PowerShares Deutsche Bank Agriculture Fund(2) 74,700 1,901 -------------- TOTAL EXCHANGE TRADED FUNDS (IDENTIFIED COST $1,861) 1,901 -------------- TOTAL LONG TERM INVESTMENTS--92.7% (IDENTIFIED COST $162,129) 170,513 -------------- SHORT-TERM INVESTMENTS--7.5% MONEY MARKET MUTUAL FUNDS--7.5% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 13,807,310 13,807 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $13,807) 13,807 -------------- TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $175,936) 184,320(1) Other Assets and Liabilities--(0.2)% (454) -------------- NET ASSETS--100.0% $ 183,866 ==============
ABBREVIATIONS: ADR American Depositary Receipt. FGIC Financial Guaranty Insurance Company FHLMC Freddie Mac or Federal Home Loan Mortgage Corporation FNMA Fannie Mae or Federal National Mortgage Association FSA Financial Security Assurance, Inc. GNMA Ginnie Mae or Government National Mortgage Association NATL/ NATL-RE National Public Finance Corp. formerly Municipal Bond Insurance Association. Refer to Footnote Legend before the Schedules of Investments VIRTUS TACTICAL ALLOCATION FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
COUNTRY WEIGHTINGS as of 6/30/09* + ----------------------------------- United States 93% Canada 2 Australia 1 Brazil 1 Finland 1 Switzerland 1 Other 1 --- Total 100% ===
* FOREIGN SECURITY COUNTRY DETERMINATION: A combination of the following criteria is used to assign the countries of risk listed in the table shown above. Country of incorporation, actual building address, primary exchange on which security is traded and country in which the greatest percentage of company revenue is generated. + % of total investments as of June 30, 2009 Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
LEVEL 2 LEVEL 3 SIGNIFICANT SIGNIFICANT TOTAL VALUE AT LEVEL 1 OBSERVABLE UNOBSERVABLE INVESTMENT IN SECURITIES: JUNE 30, 2009 QUOTED PRICES INPUTS INPUTS ------------------------------------------------------------------------------------------- Debt Securities: U.S. Government Securities $ 9,207 $ -- $ 9,207 $-- Asset-Backed Securities 1,518 -- 1,518 -- Mortgage-Backed Securities 38,364 -- 38,364 -- Municipal Securities 6,915 -- 6,915 -- Corporate Debt 26,773 -- 26,773 -- Equity Securities: Preferred Stock 29 29 -- -- Common Stock 85,806 85,806 -- -- Exchange Traded Funds 1,901 1,901 -- -- Short-Term Investments 13,807 13,807 -- -- TOTAL INVESTMENTS $184,320 $101,543 $82,777 $-- -------------------------------------------------------------------------------------------
The following is a reconciliation of assets of the Fund, for Level 3 investments for which significant unobservable inputs were used to determined fair value:
CORPORATE DEBT INVESTMENTS IN SECURITIES SECURITIES ------------------------- ---------- BALANCE AS OF MARCH 31, 2009: $ 818 Accrued Discount/(Premium) -- Realized Gain (Loss) -- Change in Unrealized Appreciation (Depreciation) 96 Net Purchases/(Sales) -- Transfers In and/or Out of Level 3 (1) (914) ----- BALANCE AS OF JUNE 30, 2009 $ -- =====
(1) "Transfers in and/or out" represent the ending value as of June 30, 2009, for any investment security where a change in the pricing level occurred from the beginning to the end of the period. Certain level 3 securities have been determined based on availability of only a single broker source, which may or may not be a principal market maker. Other level 3 securities are without an active market or market participants and therefore are internally fair valued. These internally fair valued securities derive their valuation based on the review of inputs such as, but not limited to, similar securities, liquidity factors, capital structure, and credit analysis. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 29 VIRTUS VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- COMMON STOCKS--98.9% CONSUMER DISCRETIONARY--3.4% Aaron Rents, Inc. 7,100 $ 212 DISH Network Corp. Class A(2) 13,200 214 Foot Locker, Inc. 42,800 448 HSN, Inc.(2) 25,336 268 La-Z-Boy, Inc. 4,500 21 RadioShack Corp. 20,100 281 Royal Caribbean Cruises Ltd. 5,199 70 Ruby Tuesday, Inc.(2) 32,900 219 Superior Industries International, Inc. 4,200 59 -------------- 1,792 -------------- CONSUMER STAPLES--7.4% Altria Group, Inc. 112,706 1,847 Bunge Ltd. 11,161 672 Central Garden and Pet Co.(2) 6,081 67 Central Garden and Pet Co. Class A(2) 9,598 95 Del Monte Foods Co. 7,700 72 Kroger Co. (The) 8,200 181 Pantry, Inc., (The)(2) 7,600 126 Safeway, Inc. 1,263 26 Wal-Mart Stores, Inc. 15,000 727 -------------- 3,813 -------------- ENERGY--17.0% Anadarko Petroleum Corp. 8,800 400 Chevron Corp. 25,500 1,689 ConocoPhillips 43,400 1,825 Exxon Mobil Corp. 55,360 3,870 Sunoco, Inc. 11,700 272 Tesoro Corp. 34,100 434 Valero Energy Corp. 18,200 307 Western Refining, Inc.(2) 2,500 18 -------------- 8,815 -------------- FINANCIALS--22.4% Allied World Assurance Co. Holdings Ltd. 4,551 186 American Equity Investment Life Holding Co. 4,936 28 American Express Co. 20,700 481 Annaly Capital Management, Inc. 10,000 151 Bank of New York Mellon Corp. (The) 71,200 2,087 Blackstone Group LP (The) 8,400 89 Conseco, Inc.(2) 67,994 161 Discover Financial Services 16,500 169
SHARES VALUE -------------- -------------- FINANCIALS--(CONTINUED) Goldman Sachs Group, Inc. (The) 4,200 $ 619 Hartford Financial Services Group, Inc. (The) 29,800 354 JPMorgan Chase & Co. 6,200 212 Lincoln National Corp. 12,400 213 Morgan Stanley 31,600 901 New York Community Bancorp, Inc. 101,800 1,088 Northern Trust Corp. 11,439 614 PMI Group, Inc. (The) 33,747 67 PRG-Schultz International, Inc.(2) 18,240 49 Prudential Financial, Inc. 249 9 PS Business Parks, Inc. 4,519 219 Rayonier, Inc. 21,800 792 Simon Property Group, Inc. 5,775 297 State Street Corp. 42,361 1,999 Transatlantic Holdings, Inc. 1,500 65 UMB Financial Corp. 2,300 87 Unum Group 13,600 216 Ventas, Inc. 2,900 87 Wells Fargo & Co. 14,000 340 -------------- 11,580 -------------- HEALTH CARE--18.6% Bristol-Myers Squibb Co. 24,600 500 CIGNA Corp. 38,500 927 Coventry Health Care, Inc.(2) 700 13 INSMED, Inc.(2) 18,242 18 Johnson & Johnson 27,565 1,566 Kindred Healthcare, Inc.(2) 6,900 85 Mylan, Inc.(2) 38,000 496 Omnicare, Inc. 20,800 536 Pfizer, Inc. 214,900 3,223 Teleflex, Inc. 600 27 Watson Pharmaceuticals, Inc.(2) 26,000 876 WellPoint, Inc.(2) 26,900 1,369 -------------- 9,636 -------------- INDUSTRIALS--7.3% Aircastle Ltd 17,382 128 Armstrong World Industries, Inc.(2) 1,400 23 Chart Industries, Inc.(2) 735 13 Dollar Thrifty Automotive Group, Inc.(2) 28,800 402 Donnelley (R.R.) & Sons Co. 28,375 330 General Electric Co. 74,700 876 L-3 Communications Holdings, Inc. 15,800 1,096
Refer to Footnote Legend before the Schedules of Investments 30 VIRTUS VALUE OPPORTUNITIES FUND SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2009 (UNAUDITED) ($ reported in thousands)
SHARES VALUE -------------- -------------- INDUSTRIALS--(CONTINUED) Navistar International Corp.(2) 853 $ 37 Northrop Grumman Corp. 16,900 772 URS Corp.(2) 1,800 89 -------------- 3,766 -------------- INFORMATION TECHNOLOGY--8.1% 3Com Corp.(2) 47,400 223 Acxiom Corp. 4,700 41 Broadridge Financial Solutions, Inc. 20,600 342 Computer Sciences Corp.(2) 47,400 2,100 Compuware Corp.(2) 11,600 80 EarthLink, Inc.(2) 1,932 14 Hewitt Associates, Inc. Class A(2) 1,900 57 IAC/InterActive Corp.(2) 5,600 90 International Business Machines Corp. 11,800 1,232 -------------- 4,179 -------------- MATERIALS--7.3% Ashland, Inc. 32,200 903 Compass Minerals International, Inc. 6,300 346 Dow Chemical Co. (The) 31,700 512 Eastman Chemical Co. 20,900 792 Glatfelter (P.H.) Co. 22,139 197 International Paper Co. 23,300 352 Mosaic Co. (The) 900 40 Packaging Corp. of America 22,200 360 Pactiv Corp.(2) 3,300 72 Scotts Miracle-Gro Co. (The) Class A 3,600 126 Temple-Inland, Inc. 5,500 72 -------------- 3,772 -------------- TELECOMMUNICATION SERVICES--3.9% AT&T, Inc. 53,600 1,331 Sprint Nextel Corp.(2) 139,200 670 -------------- 2,001 -------------- UTILITIES--3.5% Calpine Corp.(2) 3,600 40 DTE Energy Co. 400 13 Mirant Corp.(2) 55,000 866 NRG Energy, Inc.(2) 12,700 330 NSTAR 11,500 369
SHARES VALUE -------------- -------------- UTILITIES--(CONTINUED) UGI Corp. 7,400 $ 188 -------------- 1,806 -------------- TOTAL COMMON STOCKS (IDENTIFIED COST $50,184) 51,160 -------------- TOTAL LONG TERM INVESTMENTS--98.9% (IDENTIFIED COST $50,184) 51,160 -------------- SHORT-TERM INVESTMENTS--0.5% MONEY MARKET MUTUAL FUNDS--0.5% State Street Institutional Liquid Reserves Fund Institutional Shares (seven-day effective yield 0.420%) 251,319 251 -------------- TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $251) 251 -------------- TOTAL INVESTMENTS--99.4% (IDENTIFIED COST $50,435) 51,411(1) Other assets and liabilities, net--0.6% 299 -------------- NET ASSETS--100.0% $ 51,710 ==============
Refer to Footnote Legend before the Schedules of Investments DISCLOSURE AS REQUIRED UNDER SFAS 157 AND FSP 157-4 The following table provides a summary of inputs used to value the Fund's net assets as of June 30, 2009 (See Security Valuation Note 1A in the Notes to Schedules of Investments.)
TOTAL VALUE AT LEVEL 1 JUNE 30, QUOTED INVESTMENT IN SECURITIES: 2009 PRICES --------------------------------------------------- Equity Securities: Common Stock $51,160 $51,160 Short-Term Investments 251 251 TOTAL INVESTMENTS $51,411 $51,411 ---------------------------------------------------
There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE SCHEDULES OF INVESTMENTS. 31 VIRTUS EQUITY TRUST NOTES TO SCHEDULES OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Virtus Equity Trust, a trust consisting of thirteen diversified funds and one non-diversified fund (each a "Fund"), in the preparation of the Schedules of Investments. The preparation of the Schedules of Investments in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the Schedules of Investments. Actual results could differ from those estimates and those differences could be significant. A. SECURITY VALUATION Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, at the last bid price. Debt securities are valued on the basis of broker quotations or valuations provided by a pricing service, which in determining value utilizes information with respect to recent sales, market transactions in comparable securities, quotations from dealers, and various relationships between securities in determining value. Due to continued volatility in the current market, valuations developed through pricing techniques may materially vary from the actual amounts realized upon sale of the securities. As appropriate, some securities and assets may be valued at "fair value" as determined in good faith by or under the direction of the Trustees. Certain foreign common stocks may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that foreign markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (generally, the close of the NYSE) that may impact the value of securities traded in these foreign markets. In these cases, information from an external vendor may be utilized to adjust closing market prices of certain foreign common stocks to reflect their fair value. Because the frequency of significant events is not predictable, fair valuation of certain foreign common stocks may occur on a frequent basis. Investments in underlying money market mutual funds are valued at each fund's closing net asset value. The Funds have adopted the provisions of the Statement of Financial Accounting Standards No. 157 ("SFAS 157") this standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, the Funds utilize a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 - quoted prices in active markets for identical securities - Level 2 - prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 - prices determined using significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) OTHER INFORMATION REGARDING EACH FUND IS AVAILABLE IN THE FUND'S MOST RECENT REPORT TO SHAREHOLDERS VIRTUS EQUITY TRUST NOTES TO SCHEDULES OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) (CONTINUED) In April 2009, FASB issued FASB Staff Position No. 157-4, Determining Fair Value when the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly ("FSP 157-4"). The Funds have adopted FSP 157-4 effective with this quarterly filing. FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS 157, when the volume and level of activity for the asset or liability have significantly decreased. It also includes guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 requires entities to describe the inputs used in valuation techniques used to measure fair value and changes in inputs over the period. It also expands the three-level hierarchy disclosure and the level three roll-forward disclosure for each major security type as described in paragraph 19 of FAS No. 115, Accounting for Certain Investments in Debt and Equity Securities. A summary of the inputs used to value the funds' net assets by each major security type is disclosed at the end of the Schedules of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. B. FOREIGN SECURITY COUNTRY DETERMINATION A combination of the following criteria is used to assign the countries of risk listed in the schedules of investments: country of incorporation, actual building address, primary exchange on which the security is traded and country in which the greatest percentage of company revenue is generated. C. DERIVATIVE FINANCIAL INSTRUMENTS In March 2008, FASB issued Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161"), an amendment to FASB Statement No. 133. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. The Funds have adopted the provisions of SFAS 161 as of the beginning of the current fiscal year. The Funds did not hold any Derivative Financial Instruments during the period. NOTE 2--FEDERAL INCOME TAX INFORMATION ($ REPORTED IN THOUSANDS) At June 30, 2009, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the funds were as follows:
NET UNREALIZED FEDERAL UNREALIZED UNREALIZED APPRECIATION FUND TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION) ---- -------- -------------- -------------- -------------- Balanced Fund $589,528 $49,163 $ (20,009) $ 29,154 Capital Growth Fund 230,255 30,927 (13,999) 16,928 Growth & Income Fund 123,378 22,546 (3,079) 19,467 Growth Opportunities Fund 17,182 2,672 (1,202) 1,470 Mid-Cap Core Fund 308 6 (1) 5 Mid-Cap Growth Fund 76,343 6,781 (9,582) (2,801) Mid-Cap Value Fund 492,327 22,775 (166,864) (144,089) Quality Small-Cap Fund 80,617 4,130 (14,152) (10,022) Small-Cap Core Fund 34,360 3,360 (1,418) 1,942 Small-Cap Growth Fund 54,030 7,340 (5,100) 2,240
OTHER INFORMATION REGARDING EACH FUND IS AVAILABLE IN THE FUND'S MOST RECENT REPORT TO SHAREHOLDERS VIRTUS EQUITY TRUST NOTES TO SCHEDULES OF INVESTMENTS JUNE 30, 2009 (UNAUDITED) (CONTINUED) Small-Cap Sustainable Growth Fund 10,395 1,128 (1,360) (232) Strategic Growth Fund 139,330 14,465 (14,063) 402 Tactical Allocation Fund 176,915 14,504 (7,099) 7,405 Value Opportunities Fund 50,462 6,192 (5,243) 949
NOTE 3--SUBSEQUENT EVENTS The Funds have adopted Statement of Financial Accounting Standards No. 165 ("SFAS 165") effective the current reporting period. SFAS 165 requires disclosure of the nature of all subsequent events through the date of issuance of the financial statements and an estimate of the financial impact, if any, on the financial statements of such an event(s). Management has evaluated the impact of all subsequent events on the funds through August 28, 2009, the date the quarterly report was filed, and is disclosing the following subsequent events: 1) Effective July 16, 2009, the Virtus Growth Opportunities Fund was liquidated at its net asset value which was distributed to the Fund's shareholders. 2) On July 20, 2009, the Virtus Value Opportunities Fund (the "Fund"), a series of Virtus Equity Trust (the "Trust"), mailed proxy statements to shareholders of record as of June 30, 2009 for the purpose of appointing a new subadviser to the Fund. OTHER INFORMATION REGARDING EACH FUND IS AVAILABLE IN THE FUND'S MOST RECENT REPORT TO SHAREHOLDERS ITEM 2. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Virtus Equity Trust (formerly, Phoenix Equity Trust) -------------------------------------------------------------------- By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, President (principal executive officer) Date August 27, 2009 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ George R. Aylward ------------------------------------------------------- George R. Aylward, President (principal executive officer) Date August 27, 2009 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ W. Patrick Bradley ------------------------------------------------------- W. Patrick Bradley, Chief Financial Officer and Treasurer (principal financial officer) Date August 27, 2009 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.