Virtus Launches Premium AlphaSector™ Fund
Extension of AlphaSector Suite Determines Allocations on Weekly Basis
HARTFORD, Conn., July 12 /PRNewswire-FirstCall/ -- Virtus Investment Partners (Nasdaq: VRTS), which operates a multi-manager asset management business, has launched the Virtus Premium AlphaSector Fund (Class A: VAPAX), an extension of Virtus' AlphaSector™ product suite that is subadvised by quantitatively-based investment firm F-Squared Investments, Inc.
Similar to the Virtus AlphaSector Allocation Fund (Class A: PSWAX) and the AlphaSector Rotation Fund (Class A: PWBAX), introduced by Virtus in late 2009, the Virtus Premium AlphaSector Fund is constructed exclusively from the nine Select Sector SPDR exchange-traded funds plus a short-term Treasury ETF. The principal distinction between the strategies is that the Premium AlphaSector Fund has the ability to reallocate weekly, rather than monthly.
"Financial advisors recognize that our AlphaSector strategies provide clients what they are looking for in a post-2008 investment era – the flexibility to allocate to cash in downward trending markets while remaining invested in upward trending markets," said Frank Waltman, Virtus' executive vice president, product management.
"The Premium AlphaSector Fund offers advisors a way to better manage the impact of down markets which, in turn, increases the likelihood their clients can achieve their retirement or investment goals."
The Premium AlphaSector Fund's weekly reallocation signals are generated by F-Squared's proprietary quantitative model that identifies which sector(s) may weigh down future performance. Those sectors are then omitted from the portfolio and the assets are allocated equally to the remaining sectors. When three or fewer sectors are represented, the portfolio will begin building a position in cash equivalents, up to 100% of the portfolio.
"The introduction of the Virtus AlphaSector Funds last year proved the power and importance of a strategy that is designed to avoid significant losses, yet is still able to participate and even outperform when the market is heading up," said F-Squared's president and chief executive officer, Howard Present. "With the launch of the Premium AlphaSector Fund, we are able to offer financial advisors a more dynamic approach to managing market volatility with the objective of outperforming the S&P 500®."
About F-Squared Investments, Inc.
F-Squared Investments is an SEC-registered investment advisor. The firm creates investment solutions with the goal of generating repeatable, consistently high investment value-add. For more information, visit www.f-squaredinvestments.com.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (Nasdaq: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company, which had $25.6 billion under management as of March 31, 2010, 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 the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus contains this and other information about a fund. Please contact your financial representative, call 1-800-243-4361, or visit www.virtus.com to obtain a current prospectus. You should read the prospectus 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.
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.
SOURCE Virtus Investment Partners, Inc.