Virtus Bets on Alpha and Commodities With Three New Funds
Reported by Neil Anderson, Managing Editor
Virtus Investment Partners [see profile] just launched three new
mutual funds, with support from Coxe Advisors, F-Square Investments
and Harris Investment Management. Today the Hartford-based mutual fund
firm unveiled the Virtus Allocator Premium AlphaSector Fund, the Virtus
Global Premium AlphaSector Fund and the Virtus Global Commodities Stock
Harris, with support from Coxe, sub-advises the Global Commodities Stock Fund,
investing in companies related to commodities. F-Square subadvises both new
AlphaSector funds using a "proprietary quantitative analytical model" that taps
into both ETFs and cash. (Virtus already uses the F-Squared model in two other
funds, Virtus Premium AlphaSector and Virtus AlphaSector Rotation.)
The Allocator Premium AlphaSector Fund offers A shares for up to 575 basis points
of load and an expense ratio of 208 bps, C shares with a deferred load of up to
100 bps and an expense ratio of 283 bps, and I shares with an expense ratio of
183 bps. The Global Premium AlphaSector Funds' shares include the same loads but
expense ratios of 1 bp more across the board. F-Squared co-founder, president and
CEO Howard Present and Virtus vice president Amy Robinson PM both
new AlphaSector funds.
The Global Commodities Stock Funds' shares also include the same loads, with an
165 bps expense ratio for A shares, 240 bps for C shares and I shares for 140
bps. Coxe chairman and portfolio strategist Donald Coxe and Harris senior
PM Andrew Janes both PM the new commodities fund.
Company Press Release
HARTFORD, Conn., March 21, 2011 -- Virtus Investment Partners (Nasdaq:VRTS -
News), which operates a multi-manager asset management business, has launched
three new mutual funds: the Virtus Allocator Premium AlphaSector™ Fund, the
Virtus Global Premium AlphaSector™ Fund, and the Virtus Global Commodities Stock
"The addition of these three funds expands the breadth and depth of our product
offerings and provides additional options for advisors to utilize when
constructing portfolios for their clients," said Frank Waltman, executive vice
president, product management at Virtus. "The new AlphaSector funds add to the
array of product solutions that use the AlphaSector approach, which seeks to
minimize portfolio risk during severe market downturns. Through the Virtus
Global Commodities Stock Fund, we are able to offer a new product that will help
investors gain exposure to the ongoing and increasing global demand for
About the Funds
The Virtus Allocator Premium AlphaSector Fund (Class A:VAAAX) and the Virtus
Global Premium AlphaSector Fund (Class A:VGPAX) invest in a combination of
exchange traded funds (ETFs) and cash equivalents. The funds employ a
proprietary quantitative analytical model – developed by F-Squared Investments
and used in the Virtus Premium AlphaSector™ Fund and the Virtus AlphaSector™
Rotation Fund – that seeks to provide risk controls in down markets and enhanced
alpha in up markets.
The Virtus Allocator Premium AlphaSector Fund is a multi-strategy approach that
offers global diversification through allocations to four asset classes using
ETFs across domestic equities, international and emerging markets equities, fixed
income, and alternatives such as real estate and gold. The Global Premium
AlphaSector Fund allocates assets to domestic and international equities through
the use of nine ETFs which represent the primary sectors of the S&P 500® Index
and two international ETFs, representing developed international and emerging
Both funds can take a defensive position in volatile, downward trending markets
and allocate up to 100% of assets in cash equivalents and/or Treasuries in the
case of the Virtus Allocator Premium AlphaSector Fund and up to 100% of assets in
cash equivalents in the case of the Virtus Global Premium AlphaSector Fund.
The Virtus Global Commodities Stock Fund (Class A:VGCAX) invests in the equity
securities of commodity and commodity-related companies. The fund will allocate
among four commodities sectors: base metals, precious metals, energy, and
agriculture. It is designed to take advantage of rising global demand for
commodities in both developing and emerging markets.
The Virtus Global Commodities Stock Fund is subadvised by Harris Investment
Management in conjunction with specialty commodity firm Coxe Advisors LLP.
Portfolio manager Donald Coxe's expertise in global capital markets and
commodities is leveraged through macroeconomic research on commodity sectors
which is then combined with fundamental, bottom-up security analysis.
About F-Squared Investments, Inc.
F-Squared Investments is an SEC-registered investment advisor whose innovative
business model delivers scalable, transparent investment strategies and
customizable capabilities with the objective of outperforming the strategy's
stated benchmark while also seeking to deliver lower volatility, low beta, and
low correlation. The firm creates investment solutions with the goal of
generating repeatable, consistently high investment value-add.
About Harris Investments
Harris Investments(SM) is a service mark used by Harris Investment Management,
Inc. Harris Investment Management, Inc. is a registered investment adviser with
the SEC, and wholly owned subsidiary of Harris Bankcorp, which is a wholly owned
subsidiary of Harris Financial Corp., a wholly owned subsidiary of Bank of
Montreal. Harris Investments is part of BMO Asset Management™, the umbrella group
for BMO Financial Group's institutional investment management companies, which
offer a range of investment management products and services to retail and
institutional clients globally.
About Coxe Advisors LLP
Coxe Advisors LLP, is an investment management firm located in Chicago, Illinois,
providing asset management services for its clients. Coxe Advisors also serves
as a Strategy Advisor to BMO Financial Group and Harris Investments which is
wholly owned by Harris Bankcorp Inc., which is an indirect wholly owned
subsidiary of Bank of Montreal. In addition, Coxe Advisors acts as a Portfolio
Consultant to Harris Investment Management regarding the Virtus Global
Commodities Stock Fund. Coxe Advisors LLP is a registered investment advisor
with the SEC.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (Nasdaq:VRTS - News) is a distinctive partnership of
boutique investment managers singularly committed to the long-term success of
individual and institutional investors. The company provides investment
management products and services through its affiliated managers and select
subadvisers, each with a distinct investment style, autonomous investment process
and individual brand. Virtus Investment Partners offers access to a variety of
investment styles across multiple disciplines to meet a wide array of investor
needs. Additional information can be found at www.virtus.com.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. For this and other information about any
Virtus mutual fund, call 1-800-243-4361 or visit Virtus.com for a prospectus.
Read it carefully before you invest or send money.
Lack of liquidity in an ETF could result in its value being more volatile than
the underlying portfolio of securities. There is no guarantee that a diversified
portfolio will outperform a non-diversified portfolio, or that diversification
among different asset classes reduces risk. Because the funds hold a limited
number of securities, they will be impacted by each security's performance more
than funds with larger numbers of holdings. The guarantee on U.S. government
securities applies only to the underlying securities of the fund's portfolio, and
not to the value of the fund's shares. Commodity or commodity-related equity
prices may fluctuate widely over short time periods. Investing internationally,
especially in emerging markets, involves additional currency, political,
accounting, and economic and market risks. Because the funds are heavily weighted
in a single sector, they will be affected by that sector's performance more than
funds with broader sector diversification. Non-diversified portfolios may be
more susceptible to any single economic, political or regulatory event affecting
an issuer than a diversified portfolio.
Active Index Solutions, LLC is the source and owner of the trademarks, service
marks and copyrights related to the AlphaSector Index. AlphaSector is a trademark
of Active Index Solutions, LLC.
Mutual Funds distributed by VP Distributors, Inc., member FINRA and subsidiary of
Virtus Investment Partners, Inc.