Virtus expands SGA offerings to leverages firm's global growth capabilities
HARTFORD, Conn., June 18, 2019 /PRNewswire/ -- Virtus Investment Partners (VRTS), which operates a multi-boutique asset management business, and affiliated manager Sustainable Growth Advisers (SGA) have introduced the Virtus SGA Emerging Markets Growth Fund (A Shares: VAEGX; C Shares: VCEGX; I Shares: VIEGX; R6 Shares: VESRX), a new fund that offers investors exposure to emerging markets through companies that the managers believe demonstrate strong, predictable, and sustainable growth potential.
Robert L. Rohn, portfolio manager, analyst and co-founder of SGA, said the fund invests in differentiated global businesses that they believe offer the potential for predictable, sustainable growth over the long term. The fund seeks long-term capital appreciation and may invest in companies of all market capitalizations, but will generally utilize large- and medium-capitalization companies. Kishore Rao and Hrishikesh (HK) Gupta are also portfolio managers on the fund.
The high-quality growth investment approach used for the fund mirrors the strategy of SGA's Emerging Markets Growth institutional separate account management.
According to Rohn, SGA's investment process identifies companies that it believes have a high degree of predictability, strong profitability and above-average earnings and cash flow growth. The portfolio managers expect to invest in a high-conviction concentrated portfolio of 25-35 holdings. The fund's benchmark is the MSCI Emerging Markets Index.
"At SGA, we believe that cash flow is the ultimate arbiter of value," Rohn said. "Using this fundamental principle, the fund seeks to generate high returns with lower risk by investing in businesses that we believe have the potential for sustainable growth in cash flow available to shareholders, a strategy that can be particularly attractive in the volatile world of emerging markets investing."
The introduction of the Virtus SGA Emerging Markets Growth Fund marks the third strategy managed by SGA in the Virtus Funds product lineup, including the Virtus SGA International Growth Fund (I Shares: STITX) and the Virtus SGA Global Growth Fund (I Shares: SGAPX), which Virtus adopted on May 6, 2019.
"SGA has historically generated very compelling investment performance in each of the strategies they manage," said Frank Waltman, executive vice president, product management for Virtus. "As with all affiliates, we look to leverage strong performing strategies in as many product structures as possible. This fund expands our product offerings and leverages SGA's consistent investment philosophy that is based on fundamental research and investing in equities of sustainable growth companies."
About Sustainable Growth Advisers
Founded in 2003, Sustainable Growth Advisers is an institutional investment management firm focused on providing high conviction U.S., global, international, and emerging markets portfolios. Its approach is designed to identify companies that they believe generate attractive absolute and relative returns over time by aligning client objectives with differentiated global businesses that could generate predictable, sustainable growth. SGA, which had $12.5 billion in client assets under management as of March 31, 2019, operates as an independent affiliate of Virtus Investment Partners.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (VRTS) 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. In addition to SGA, Virtus' affiliates include Ceredex Value Advisors, Duff & Phelps Investment Management, Kayne Anderson Rudnick Investment Management, Newfleet Asset Management, Rampart Investment Management, Seix Investment Advisors, Silvant Capital Management, and Virtus ETF Solutions. Additional information is available at virtus.com.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Geographic Concentration: A fund that focuses its investments in a particular geographic location will be highly sensitive to financial, economic, political, and other developments affecting the fiscal stability of that location. Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.
Please consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. The prospectus contains this and other information about the fund. For this and other information about any Virtus mutual fund, contact your financial representative, call 1-800-243-4361, or visit Virtus.com. Read the prospectus carefully before you invest or send money.
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