# EDGAR Filing Document

**Accession Number:** 0001423227
**File Stem:** 0000930413-23-000191
**Filing Date:** 2023-1
**Character Count:** 1727220
**Document Hash:** 02572d6d372f2bd38140eaf66230562e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000930413-23-000191.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0000930413-23-000191

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 59

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**EFFECTIVENESS DATE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Virtus Strategy Trust
- **CENTRAL INDEX KEY:** 0001423227
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MA

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22167
- **FILM NUMBER:** 23558329

**BUSINESS ADDRESS:**
- **STREET 1:** 101 MUNSON STEET
- **CITY:** GREENFIELD
- **STATE:** MA
- **ZIP:** 01301
- **BUSINESS PHONE:** 800-243-1574

**MAIL ADDRESS:**
- **STREET 1:** ONE FINANCIAL PLAZA
- **STREET 2:** 26TH FLOOR
- **CITY:** HARTFORD
- **STATE:** CT
- **ZIP:** 06103

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Allianz Funds Multi-Strategy Trust
- **DATE OF NAME CHANGE:** 20080109
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Virtus Strategy Trust
- **CENTRAL INDEX KEY:** 0001423227
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MA

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-148624
- **FILM NUMBER:** 23558328

**BUSINESS ADDRESS:**
- **STREET 1:** 101 MUNSON STEET
- **CITY:** GREENFIELD
- **STATE:** MA
- **ZIP:** 01301
- **BUSINESS PHONE:** 800-243-1574

**MAIL ADDRESS:**
- **STREET 1:** ONE FINANCIAL PLAZA
- **STREET 2:** 26TH FLOOR
- **CITY:** HARTFORD
- **STATE:** CT
- **ZIP:** 06103

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Allianz Funds Multi-Strategy Trust
- **DATE OF NAME CHANGE:** 20080109

## Series and Classes Contracts Data

### Virtus Duff & Phelps Water Fund (Series ID: S000021463)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000061366 | Class A             | AWTAX           |
| C000061367 | Class C             | AWTCX           |
| C000061369 | Class P             | AWTPX           |
| C000066034 | Institutional Class | AWTIX           |

### Virtus Global Allocation Fund (Series ID: S000025374)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000075793 | Class C              | PALCX           |
| C000075795 | Class P              | AGAPX           |
| C000075797 | Institutional Class  | PALLX           |
| C000075798 | Administrative Class | AGAMX           |
| C000075799 | Class A              | PALAX           |
| C000160541 | Class R6             | AGASX           |

### Virtus Convertible Fund (Series ID: S000028359)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000086658 | Class A              | ANZAX           |
| C000086659 | Class C              | ANZCX           |
| C000086661 | Institutional Class  | ANNPX           |
| C000086662 | Class P              | ANCMX           |
| C000086663 | Administrative Class | ANNAX           |
| C000235255 | Class R6             | VAADX           |

### Virtus Seix High Yield Income Fund (Series ID: S000028360)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000086666 | Institutional Class  | AYBIX           |
| C000086667 | Class P              | AYBPX           |
| C000086668 | Administrative Class | AYBVX           |
| C000086670 | Class A              | AYBAX           |
| C000086671 | Class C              | AYBCX           |

### Virtus International Small-Cap Fund (Series ID: S000028361)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000086672 | Class A             | AOPAX           |
| C000086673 | Class C             | AOPCX           |
| C000086675 | Institutional Class | ALOIX           |
| C000086676 | Class P             | ALOPX           |
| C000165874 | Class R6            | AIISX           |

### Virtus Newfleet Short Duration High Income Fund (Series ID: S000033713)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000103876 | Class A             | ASHAX           |
| C000103877 | Class C             | ASHCX           |
| C000103878 | Institutional Class | ASHIX           |
| C000103879 | Class P             | ASHPX           |
| C000177646 | Class R6            | ASHSX           |

### Virtus NFJ Emerging Markets Value Fund (Series ID: S000038497)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000118780 | Institutional Class | AZMIX           |
| C000118781 | Class P             | AZMPX           |
| C000118783 | Class A             | AZMAX           |
| C000118784 | Class C             | AZMCX           |

### Virtus NFJ Global Sustainability Fund (Series ID: S000047250)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000148056 | Class A             | ASUAX           |
| C000148057 | Institutional Class | ASTNX           |
| C000148058 | Class P             | ASTPX           |

?xml version='1.0' encoding='ASCII'?

#### As filed with the Securities and Exchange Commission on January 26, 2023

#### File No. 333-148624
**File No. 811-22167**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM N-1A**

**REGISTRATION STATEMENT**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Under the SECURITIES ACT OF 1933*** | **☒** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Pre-Effective Amendment No.** | **☐** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Post-Effective Amendment No. 144** | **☒** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**and/or** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**REGISTRATION STATEMENT** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Under the INVESTMENT COMPANY ACT OF 1940*** | **☒** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amendment No. 146** | **☒** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Check appropriate box or boxes)** |  |

---

## Virtus Strategy Trust

#### (Exact Name of Registrant as Specified in Charter)

#### Area Code and Telephone Number: (800) 243-1574

#### 101 Munson Street Greenfield, Massachusetts 01301 (Address of Principal Executive Offices)

#### Jennifer Fromm.

#### Vice President and Senior Counsel

#### Virtus Investment Partners, Inc.

#### One Financial Plaza
**Hartford, Connecticut 06103**

**(Name and Address of Agent for Service)**

***Copies of All Correspondence to:***

**Mark D. Perlow Esq.**

**Dechert LLP**

**One Bush Street, Suite 1600.**

**San Francisco, CA 94104-4446**

It is proposed that this filing will become effective (check appropriate box):

<br> ☐ immediately upon filing pursuant to paragraph (b)

☒ on January 27, 2023 pursuant
to paragraph (b) of Rule 485

<br> ☐ 60 days after filing pursuant to paragraph (a)(1)

<br> ☐ on _____________ or at such later date as the Commission shall order pursuant to paragraph (a)(2)

<br> ☐ 75 days after filing pursuant to paragraph (a)(2)

<br> ☐ on _____________ pursuant to paragraph (a)(2) of Rule 485.

If appropriate, check the following box:

<br> ☐ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

------

---

| |
|:---|
| **PROSPECTUS** |
| **VIRTUS STRATEGY TRUST** |

---

January 27, 2023

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** |
| **FUND** | **A** | **C** | **Institutional** | **P** | **Administrative** | **R6** |
| Virtus Convertible Fund | ANZAX | ANZCX | ANNPX | ANCMX | ANNAX | VAADX |
| Virtus Duff & Phelps Water Fund | AWTAX | AWTCX | AWTIX | AWTPX |  |  |
| Virtus Global Allocation Fund | PALAX | PALCX | PALLX | AGAPX | AGAMX | AGASX |
| Virtus International Small-Cap Fund | AOPAX | AOPCX | ALOIX | ALOPX |  | AIISX |
| Virtus Newfleet Short Duration High Income Fund | ASHAX | ASHCX | ASHIX | ASHPX |  | ASHSX |
| Virtus NFJ Emerging Markets Value Fund | AZMAX | AZMCX | AZMIX | AZMPX |  |  |
| Virtus NFJ Global Sustainability Fund | ASUAX |  | ASTNX | ASTPX |  |  |
| Virtus Seix High Yield Income Fund | AYBAX | AYBCX | AYBIX | AYBPX | AYBVX |  |

---

---

| |
|:---|
| Neither the Securities and Exchange Commission ("SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. This prospectus contains important information that you should know before investing in Virtus Mutual Funds. Please read it carefully and retain it for future reference. |
| **Not FDIC Insured • No Bank Guarantee • May Lose Value** |

---

------

**Virtus Mutual Funds**

#### **Table of Contents**

---

| | |
|:---|:---|
| **[FUND SUMMARIES](#x1x2)** | **[1](#x1x2)** |
| &nbsp;&nbsp;&nbsp;[Virtus Convertible Fund](#x2x2) | [1](#x2x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Duff & Phelps Water Fund](#x3x2) | [6](#x3x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Global Allocation Fund](#x4x2) | [11](#x4x2) |
| &nbsp;&nbsp;&nbsp;[Virtus International Small-Cap Fund](#x5x2) | [17](#x5x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Newfleet Short Duration High Income Fund](#x6x2) | [22](#x6x2) |
| &nbsp;&nbsp;&nbsp;[Virtus NFJ Emerging Markets Value Fund](#x7x2) | [27](#x7x2) |
| &nbsp;&nbsp;&nbsp;[Virtus NFJ Global Sustainability Fund](#x8x2) | [32](#x8x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Seix High Yield Income Fund](#x9x2) | [36](#x9x2) |
| **[MORE INFORMATION ABOUT FUND EXPENSES](#x10x2)** | **[40](#x10x2)** |
| **[MORE INFORMATION ABOUT INVESTMENT OBJECTIVES AND PRINCIPAL INVESTMENT STRATEGIES](#x11x2)** | **[41](#x11x2)** |
| &nbsp;&nbsp;&nbsp;[Virtus Convertible Fund](#x12x2) | [42](#x12x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Duff & Phelps Water Fund](#x13x2) | [43](#x13x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Global Allocation Fund](#x14x2) | [44](#x14x2) |
| &nbsp;&nbsp;&nbsp;[Virtus International Small-Cap Fund](#x15x2) | [46](#x15x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Newfleet Short Duration High Income Fund](#x16x2) | [47](#x16x2) |
| &nbsp;&nbsp;&nbsp;[Virtus NFJ Emerging Markets Value Fund](#x17x2) | [48](#x17x2) |
| &nbsp;&nbsp;&nbsp;[Virtus NFJ Global Sustainability Fund](#x18x2) | [49](#x18x2) |
| &nbsp;&nbsp;&nbsp;[Virtus Seix High Yield Income Fund](#x19x2) | [50](#x19x2) |
| **[MORE INFORMATION ABOUT RISKS RELATED TO PRINCIPAL INVESTMENT STRATEGIES](#x20x2)** | **[51](#x20x2)** |
| **[MANAGEMENT OF THE FUNDS](#x21x2)** | **[62](#x21x2)** |
| **[ADDITIONAL RISKS ASSOCIATED WITH INVESTMENT TECHNIQUES AND FUND OPERATIONS](#x22x2)** | **[67](#x22x2)** |
| **[PRICING OF FUND SHARES](#x23x2)** | **[73](#x23x2)** |
| **[SALES CHARGES](#x24x2)** | **[74](#x24x2)** |
| **[YOUR ACCOUNT](#x25x2)** | **[80](#x25x2)** |
| **[HOW TO BUY SHARES](#x26x2)** | **[82](#x26x2)** |
| **[HOW TO SELL SHARES](#x27x2)** | **[82](#x27x2)** |
| **[THINGS YOU SHOULD KNOW WHEN SELLING SHARES](#x28x2)** | **[83](#x28x2)** |
| **[ACCOUNT POLICIES](#x29x2)** | **[84](#x29x2)** |
| **[COST BASIS REPORTING](#x30x2)** | **[86](#x30x2)** |
| **[INVESTOR SERVICES AND OTHER INFORMATION](#x31x2)** | **[87](#x31x2)** |
| **[TAX STATUS OF DISTRIBUTIONS](#x32x2)** | **[87](#x32x2)** |
| **[FINANCIAL HIGHLIGHTS](#x33x2)** | **[88](#x33x2)** |
| **[APPENDIX A—Intermediary Sales Charge Discounts and Waivers](#x34x2)** | **[105](#x34x2)** |

---

This Prospectus provides information concerning the funds that you should consider in determining whether to purchase shares of the funds. None of this Prospectus, the statement of additional information ("SAI") or any contract that is an exhibit to the funds' registration statement is intended to give rise to any agreement or contract between the funds and any investor, or give rise to any contract or other rights in any individual shareholder, group of shareholders or other person other than any rights conferred explicitly by federal or state securities laws that may not be waived.

------

**Virtus Convertible Fund**

#### Investment Objective
The fund seeks maximum total return, consisting of capital appreciation and current income.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** | **Administrative** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** | **Administrative** |
| Management Fees | 0.57% | 0.57% | 0.57% | 0.57% | 0.57% | 0.57% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 1.00% |  |  |  | 0.25% |
| Other Expenses | 0.27% | 0.25% | 0.26% | 0.26% | 0.26% | 0.34% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| Total Annual Fund Operating Expenses<sup>(b)</sup> | 1.10% | 1.83% | 0.84% | 0.84% | 0.84% | 1.17% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(c)</sup> | (0.13)% | (0.09)% | (0.12)% | (0.12)% | (0.21)% | (0.23)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)(c)</sup> | 0.97% | 1.74% | 0.72% | 0.72% | 0.63% | 0.94% |

---

(a) The deferred sales
charge is imposed on Class C Shares redeemed during the first year only.

(b) The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses
to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating
expenses of the fund and do not include acquired fund fees and expenses.

(c) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 0.96% for Class A Shares, 1.73% for Class C Shares, 0.71% for Institutional
Class Shares, 0.71% for Class P Shares, 0.62% for Class R6 Shares and 0.93% for Administrative Class
Shares through February 1, 2024. Following the contractual period, the adviser may discontinue these
expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating
expenses reimbursed and/or fees waived under these arrangements for a period of three years following
the date such waiver or reimbursement occurred, provided that the recapture does not cause the fund to
exceed its expense limit in effect at the time of the waiver or reimbursement, and any in effect at the
time of recapture, after repayment is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $644 | $868 | $1111 | $1805 |
| Class C  | Sold | $277 | $567 | $982 | $2141 |
|  | Held | $177 | $567 | $982 | $2141 |
| Institutional Class  | Sold or Held | $74 | $256 | $454 | $1026 |
| Class P  | Sold or Held | $74 | $256 | $454 | $1026 |
| Class R6  | Sold or Held | $64 | $247 | $445 | $1018 |
| Administrative Class  | Sold or Held | $96 | $349 | $621 | $1400 |

---

<br> Virtus Convertible Fund 1

------

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 121% of the average value of its portfolio.

#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in convertible securities. Convertible securities include, but are not limited to, corporate bonds, debentures, notes or preferred stocks and their hybrids that can be converted into (exchanged for) equity securities or other securities (such as warrants or options) that provide an opportunity for equity participation. The fund may also invest a portion of its assets in contingent convertible securities ("CoCos"), which are a form of hybrid security that generally either converts into equity or has its principal written down at the election of investors and upon the occurrence of certain pre-specified triggering events.

For purposes of this policy, the fund may also gain exposure to convertible securities through derivatives or other "synthetic" means. The fund may invest in securities of any size market capitalization or credit quality, and may from time to time invest a significant amount of its assets in securities of smaller companies. The fund may also invest up to 20% of its net assets in nonconvertible debt securities rated below investment grade or unrated and determined to be of similar quality ("high-yield securities" or "junk bonds"). The fund may also invest in securities issued by the U.S. government and its agencies and instrumentalities. The portfolio managers follow a disciplined, fundamental bottom-up research process, which facilitates the early identification of convertible securities issuers demonstrating the ability to improve their fundamental characteristics. The portfolio managers select issuers that exceed minimum fundamental metrics and exhibit the highest visibility of future expected operating performance. The fundamental research process generally includes: a breakdown of a company and its growth by division and region, including revenue model analysis; profit margin analysis; analysis of experience and quality of its management; industry dynamics and competitive analysis; distribution channel and supply chain analysis; and macroeconomic climate analysis. Under normal market conditions, the portfolio managers seek to invest in securities that can participate in the upside of the underlying equity and provide downside protection from the bond. In addition to gaining "synthetic" exposure to convertible securities through derivatives as outlined above, the fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first nine risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Convertible Securities Risk.*** The value of a convertible security may decline as interest rates rise and/or vary with fluctuations in the market value of the underlying securities. The security may be called for redemption at a time and/or price unfavorable to the fund.

> ***Interest Rate Risk.*** The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.

> ***Counterparty Risk.*** There is risk that a party upon whom the fund relies to complete a transaction will default.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Call Risk.*** A fixed-income security may be redeemed before maturity ("called") below its current market price, and a call may lead to the reinvestment of proceeds at a lower interest rate, or with higher credit risk or other less favorable characteristics.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***High-Yield Fixed Income Securities (Junk Bonds) Risk.*** High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increases in interest rates or an issuer's deterioration or default.

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

<br> 2 Virtus Convertible Fund

------

> ***Contingent Convertible Securities Risk.*** Contingent convertible securities ("CoCos") are subject to greater levels of credit and liquidity risk than fixed income securities generally. They may rank junior to other creditors in the event of a liquidation or other bankruptcy-related event and become further subordinated as a result of conversion from debt to equity.

> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Debt Instruments Risk.*** Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer's or counterparty's deterioration or default.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Portfolio Turnover Risk.*** High levels of portfolio turnover increase transaction costs and taxes and may lower investment performance.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

> ***U.S. Government Securities Risk.*** U.S. Government securities may be subject to price fluctuations. An agency may default on an obligation not backed by the full faith and credit of the United States. Any guarantee on U.S. government securities does not apply to the value of the fund's shares.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574.

Class R6 shares have not had a full calendar year of operations; therefore, performance information for Class R6 Shares is not shown here. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:25.58, 2014:6.68, 2015:-1.55, 2016:5.87, 2017:15.22, 2018:3.01, 2019:26.42, 2020:55.82, 2021:5.28, 2022:-18.64)](img_173e93278bf44f2.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 26.25% | Worst Quarter: | 2022, Q2: | -15.22% |

---

<br> Virtus Convertible Fund 3

------

**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| Institutional Class Shares |  |  |  |
| Return Before Taxes | -18.64% | 11.69% | 10.83% |
| Return After Taxes on Distributions | -19.06% | 8.13% | 7.53% |
| Return After Taxes on Distributions and Sale of Fund Shares | -10.95% | 8.08% | 7.54% |
| Class A Shares |  |  |  |
| Return Before Taxes | -23.29% | 10.15% | 9.89% |
| Class C Shares |  |  |  |
| Return Before Taxes | -19.45% | 10.56% | 9.70% |
| Class P Shares |  |  |  |
| Return Before Taxes | -18.62% | 11.68% | 10.79% |
| Administrative Class Shares |  |  |  |
| Return Before Taxes | -18.78% | 11.44% | 10.58% |
| ICE BofA US Convertibles Index (reflects no deduction for fees, expenses or taxes) | -18.71% | 9.29% | 10.01% |

---

The ICE BofA US Convertibles Index tracks the performance of publicly issued US dollar denominated convertible securities of U.S. companies. The index is calculated on a total return basis. The index is unmanaged and is not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is Voya Investment Management Co. LLC ("Voya").

#### Portfolio Management
> ***Justin Kass, CFA,*** portfolio manager and senior managing director at Voya, has managed the fund since 2003.

> ***David J. Oberto,*** portfolio manager and senior vice president at Voya, has managed the fund since March 2022.

> ***Ethan Turner, CFA,*** portfolio manager and vice president at Voya, has managed the fund since January 2023.

> ***Michael E. Yee,*** portfolio manager and managing director at Voya, has managed the fund since March 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P, Institutional and Administrative Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 Shares): (i) qualified retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; (vi) 529 portfolios that are advised or sub-advised by Virtus affiliates; and (vii) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement.

<br> 4 Virtus Convertible Fund

------

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from fund assets or the Distributor's or an affiliate's resources on sales of or investments in Class R6 Shares. Class R6 Shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments to brokers or other entities to assist in, or in connection with, the sale of the fund's shares.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> Virtus Convertible Fund 5

------

**Virtus Duff & Phelps Water Fund**

#### Investment Objective
The fund seeks long-term capital appreciation.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** |
| Management Fees | 0.95% | 0.95% | 0.95% | 0.95% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 1.00% |  |  |
| Other Expenses | 0.28% | 0.27% | 0.27% | 0.24% |
| Total Annual Fund Operating Expenses | 1.48% | 2.22% | 1.22% | 1.19% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(b)</sup> | (0.26)% | (0.25)% | (0.29)% | (0.25)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)</sup> | 1.22% | 1.97% | 0.93% | 0.94% |

---

(a) The deferred sales
charge is imposed on Class C Shares redeemed during the first year only.

(b) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 1.22% for Class A Shares, 1.97% for Class C Shares, 0.93% for Institutional
Class Shares, 0.94% for Class P Shares and through February 1, 2024. Following the contractual period,
the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions,
the adviser may recapture operating expenses reimbursed and/or fees waived under these arrangements for
a period of three years following the date such waiver or reimbursement occurred, provided that the recapture
does not cause the fund to exceed its expense limit in effect at the time of the waiver or reimbursement,
and any in effect at the time of recapture, after repayment is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $667 | $968 | $1290 | $2200 |
| Class C  | Sold | $300 | $670 | $1167 | $2535 |
|  | Held | $200 | $670 | $1167 | $2535 |
| Institutional Class  | Sold or Held | $95 | $359 | $642 | $1452 |
| Class P  | Sold or Held | $96 | $353 | $630 | $1421 |

---

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 27% of the average value of its portfolio.

<br> 6 Virtus Duff & Phelps Water Fund

------

#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that are represented in one or more of the S&P Global Water Index, the NASDAQ OMX US Water or Global Water Indices, or the S-Network Global Water Index (Composite), or that are substantially engaged in water-related activities. Water-related activities consist of those that relate to the quality or availability of or demand for potable and non-potable water and include, but are not limited to, the following: water production, storage, transport and distribution; water supply enhancing or water demand-reducing technologies and materials; water planning, control and research; water conditioning, such as filtering, desalination, disinfection and purification; sewage and liquid waste treatment; and water delivery-related equipment and technology, consulting or engineering services relating to any of the above-mentioned activities. The specific activities that the fund may from time to time consider to qualify as "water-related activities" will change as markets, technologies and investment practices develop. The portfolio managers intend to diversify the fund's investments across geographic regions. Under normal market conditions, the fund will typically invest (i) between 45%-75% of its total assets in U.S. securities, (ii) between 20%-45% of its total assets in European securities, and (iii) up to 25% of its total assets in Asia and other geographies. The fund may invest in emerging market securities.

The portfolio managers select investments on a bottom-up basis irrespective of market capitalization, geography, industry/sector or growth- or value-orientation, and may look for several of the following characteristics: higher than average sustainable growth; substantial capacity for growth of revenue and earnings; superior management; alignment to select United Nations Sustainable Development Goals (SDG's) and other comparable societal goals; strong commitment to research and product development; and differentiated or superior product offerings addressing the structural demand drivers. The portfolio managers consider the level of active contribution to the improvement of water resource management during the stock selection process.

Companies' Environmental, Social and Corporate Governance ("ESG") practices are also considered as the portfolio managers believe this enhances the investment process.

The fund is "non-diversified," which means that it may invest a significant portion of its assets in a relatively small number of issuers, which may increase risk. In addition to common stocks and other equity securities (such as preferred stocks and warrants), the fund may invest in securities issued in initial public offerings (IPOs), and may utilize foreign currency exchange contracts, options, and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first seven risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***Water-Related Risk.*** Because the fund focuses its investments in water-related companies, it is particularly affected by events or factors relating to this sector, which may increase risk and volatility.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

> ***ESG Risk.*** The fund's consideration of ESG factors could cause the fund to perform differently from other funds. While the subadviser believes that the integration of ESG factors into the fund's investment process has the potential to contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

<br> Virtus Duff & Phelps Water Fund 7

------

> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Emerging Markets Risk.*** Foreign investing risk may be particularly high to the extent that the fund invests in emerging market securities. Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.

> ***IPO Risk.*** Securities purchased in initial public offerings have no trading history, limited issuer information and increased volatility.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Non-Diversification Risk.*** The fund is not diversified and may be more susceptible to factors negatively impacting its holdings to the extent the fund invests more of its assets in the securities of fewer issuers than would a diversified fund.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. The current subadviser commenced providing services for the fund in July 2022 and therefore the returns shown in the table for periods prior to that date reflect the performance of other investment professionals.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of a broad-based securities market index and a more narrowly based index that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:24.18, 2014:-0.84, 2015:0.59, 2016:5.13, 2017:22.71, 2018:-12.23, 2019:33.12, 2020:17.01, 2021:25.82, 2022:-20.8)](img_000e578267154f2.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2019, Q1: | 13.65% | Worst Quarter: | 2020, Q1: | -17.12% |

---

<br> 8 Virtus Duff & Phelps Water Fund

------

**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| Institutional Class Shares |  |  |  |
| Return Before Taxes | -20.80% | 6.38% | 8.09% |
| Return After Taxes on Distributions | -20.94% | 5.38% | 7.31% |
| Return After Taxes on Distributions and Sale of Fund Shares | -12.21% | 4.88% | 6.40% |
| Class A Shares |  |  |  |
| Return Before Taxes | -25.36% | 4.88% | 7.17% |
| Class C Shares |  |  |  |
| Return Before Taxes | -21.61% | 5.29% | 6.96% |
| Class P Shares |  |  |  |
| Return Before Taxes | -20.82% | 6.36% | 8.05% |
| MSCI All Country World Index (net) (reflects no deduction for fees, expenses or taxes) | -18.36% | 5.23% | 7.98% |
| S&P Global Water Index (net) (reflects no deduction for fees, expenses or taxes) | -21.48% | 7.73% | 9.85% |

---

The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The S&P Global Water Index (net) is a modified capitalization-weighted index comprised of 50 of the largest publicly traded companies in water-related businesses that meet specific invest ability requirements. The index is designed to provide liquid exposure to the leading publicly-listed companies in the global water industry, from both developed markets and emerging markets. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is Duff & Phelps Investment Management Co. ("Duff & Phelps"), an affiliate of VIA.

#### Portfolio Management
> ***David D. Grumhaus, Jr.,*** President and Chief Investment Officer and Senior Portfolio Manager of Duff & Phelps. Mr. Grumhaus has served as a Portfolio Manager of the fund since July 2022.

> ***Evan Lang,CFA,*** Managing Director, Portfolio Manager and Senior Research Analyst of Duff & Phelps. Mr. Lang has served as a Portfolio Manager of the fund since August 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P and Institutional Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

<br> Virtus Duff & Phelps Water Fund 9

------

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> 10 Virtus Duff & Phelps Water Fund

------

**Virtus Global Allocation Fund**

#### Investment Objective
The fund seeks after-inflation capital appreciation and current income.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** | **Administrative** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** | **Administrative** |
| Management Fees | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 1.00% |  |  |  | 0.25% |
| Other Expenses | 0.31% | 0.33% | 0.31% | 0.30% | 0.23% | 0.28% |
| Acquired Fund Fees and Expenses | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% |
| Total Annual Fund Operating Expenses<sup>(b)</sup> | 1.51% | 2.28% | 1.26% | 1.25% | 1.18% | 1.48% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(c)</sup> | (0.74)% | (0.76)% | (0.72)% | (0.68)% | (0.71)% | (0.76)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)(c)</sup> | 0.77% | 1.52% | 0.54% | 0.57% | 0.47% | 0.72% |

---

(a) The deferred sales
charge is imposed on Class C Shares redeemed during the first year only.

(b) The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses
to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating
expenses of the fund and do not include acquired fund fees and expenses.

(c) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 0.52% for Class A Shares, 1.27% for Class C Shares, 0.29% for Institutional
Class Shares, 0.32% for Class P Shares, 0.22% for Class R6 Shares and 0.47% for Administrative Class
Shares through February 1, 2024. Following the contractual period, the adviser may discontinue these
expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating
expenses reimbursed and/or fees waived under these arrangements for a period of three years following
the date such waiver or reimbursement occurred, provided that the recapture does not cause the fund to
exceed its expense limit in effect at the time of the waiver or reimbursement, and any in effect at the
time of recapture, after repayment is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $624 | $932 | $1262 | $2193 |
| Class C  | Sold | $255 | $639 | $1151 | $2557 |
|  | Held | $155 | $639 | $1151 | $2557 |
| Institutional Class  | Sold or Held | $55 | $328 | $622 | $1459 |
| Class P  | Sold or Held | $58 | $329 | $621 | $1451 |
| Class R6  | Sold or Held | $48 | $304 | $580 | $1369 |
| Administrative Class  | Sold or Held | $74 | $393 | $736 | $1703 |

---

<br> Virtus Global Allocation Fund 11

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#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 88% of the average value of its portfolio.

#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its investment objective through a combination of active allocation across asset classes and actively managed strategies within those asset classes. The fund allocates its investments across asset classes in response to changing market, macroeconomic, and other factors and events that the portfolio managers believe may affect the value of the fund's investments. To gain exposure to different asset classes, the fund incorporates actively managed underlying strategies, both directly through dedicated teams managing separate sleeves of the fund and indirectly through investments in affiliated mutual funds, as well as through passive strategies. Under normal circumstances, the fund invests directly and indirectly in global equity securities, fixed-income securities, and long and short positions using derivatives across multiple asset classes. The fund may also invest in exchange-traded funds ("ETFs"), unaffiliated mutual funds, other pooled vehicles and derivative instruments such as futures, among others. The fund's actively managed underlying strategies incorporate environmental, social and governance ("ESG") factors into the selection of individual securities, and the portfolio managers also consider ESG factors in the construction of the overall portfolio. The fund's allocations to different strategies and instruments are expected to vary over time and from time to time.

The fund's baseline long-term allocation consists of 60% to global equity exposure (the "Equity Component") and 40% to fixed income exposure (the "Fixed Income Component"), which is also the allocation of the blended benchmark index against which the fund's portfolio is managed. The Equity Component can include direct or indirect exposure to equity securities of any market capitalization, any sector and from any country, including emerging markets. The fund expects to invest a significant portion of the Equity Component into Virtus NFJ Global Sustainability Fund, an affiliated mutual fund. The Fixed Income Component primarily consists of direct or indirect exposure to fixed income securities from any sector, of any credit-quality including high yield bonds, from any part of the capital structure including loans, preferred securities and convertibles, denominated in any currency and issued by any country including emerging markets. Within the Fixed Income Component, the allocation to high-yield bonds, senior loans, preferred securities, convertibles and emerging market debt will not exceed 30% of the fund's assets on a gross exposure basis. Separately, the fund will also invest in non-U.S. currencies and take FX positions through derivatives, both long and short.

The portfolio managers may also invest up to 10% of the portfolio in any other asset class that falls outside of the Equity Component and the Fixed-Income Component, which constitute the "Other Component." Examples include, but are not limited to, derivatives on carbon emissions and commodities. Other asset classes may be added at the portfolio managers' discretion. The portfolio managers will typically over- or under-weight the fund's portfolio against the baseline long-term allocation, depending on the portfolio managers' view of the relative attractiveness of the investment opportunities available, which will change over time.

Depending on market conditions, the Equity Component may range between approximately 50% and 70% of the fund's assets, the Fixed Income Component may range between approximately 10% and 70% of the fund's assets and the Other Component may range between 0% and 10% of the fund's assets. The ranges apply at the time of purchase. The fund's exposure to each component may vary from the ranges due to market movements and it is at the portfolio managers' discretion when to bring the fund back within the range. As a result of its derivative positions, the fund may have gross investment exposures in excess of 100% of its net assets (i.e., the fund may be leveraged) and therefore subject to heightened risk of loss. The fund's performance can depend substantially on the performance of assets or indices underlying its derivatives even though it does not directly or indirectly own those underlying assets or indices.

The portfolio managers adjust the fund's exposure to the Equity Component, the Fixed Income Component, and the Other Component in response to changes in their views based on their analysis of market, macroeconomic and other factors. In conjunction with their asset class analysis the portfolio managers seek to gain exposure to desired asset classes primarily through actively managed underlying strategies that apply ESG factors (including the strategy employed by Virtus NFJ Global Sustainability Fund within the Equity Component) and passive ESG ETFs and futures. They also consider ESG factors in the construction of the overall portfolio. The portfolio managers believe that investing in companies with strong records for managing ESG risks can generate long-term competitive financial returns and positive societal impact.

Within the Fixed Income Component limits described above, the fund intends to make use of an integrated ESG security selection strategy ("U.S. Fixed Income Sleeve") that is managed by a dedicated team of portfolio managers. This strategy focuses on investments in bonds, notes, other debt instruments and preferred securities, including derivatives relating to such investments. The portfolio managers invest in a diversified portfolio of high-quality bonds that generates return primarily through security selection and sector rotation with an investment grade focus. The U.S. Fixed Income Sleeve may also invest in high yield debt (commonly known as "junk bonds") and emerging market corporate and sovereign bonds. The strategy is based on bottom-up fundamental credit research, which accounts for the potential financial impact of ESG issues facing corporations and therefore considers ESG factors alongside financial factors in the security selection and overall risk management process. Portfolio managers have the ability to weigh risks relative to market compensation and relative to corporate strategies that seek to address identified ESG concerns.

As a portion of the Equity Component described above, the fund intends to make use of a managed volatility strategy that focuses on investments in globally diverse equity securities, including emerging market equities ("Managed Volatility Sleeve"), and is managed by a dedicated team of portfolio managers. The sleeve's strategy focuses on the overall management of portfolio volatility and favors stocks that demonstrate lower beta. The portfolio managers apply an investment constraint requiring that the weighted average of the combined MSCI "E," "S" and "G" scores of the individual securities within the Managed Volatility Sleeve is higher at the time of purchase than the weighted average of the combined "E," "S" and "G" scores of the securities in the benchmark, the MSCI All Country World Index. The ESG evaluation process incorporates scores based on company sustainability disclosure, government and academic data and media searches, among other sources.

The fund may invest in any type of equity or fixed income security, including common and preferred stocks, warrants and convertible securities, mortgage-backed securities, asset-backed securities and government and corporate bonds. The fund may invest in securities of companies of any capitalization, including smaller capitalization companies. The fund also may make investments intended to provide exposure to one or more commodities or securities indices, currencies, and real estate-related securities. The fund is expected to be highly diversified across industries, sectors, and countries. The fund may liquidate a holding if it locates another instrument that offers a more attractive exposure to an asset class or when there is a change in the fund's target asset allocation or allocation among dedicated sleeves, or if the instrument is otherwise deemed inappropriate.

<br> 12 Virtus Global Allocation Fund

------

In implementing these investment strategies, the fund may make substantial use of over-the-counter (OTC) or exchange-traded derivatives, including futures contracts, interest rate swaps, total return swaps, credit default swaps, options (puts and calls) purchased or sold by the fund, currency forwards, and structured notes. The fund may use derivatives for a variety of purposes, including: as a hedge against adverse changes in the market price of securities, interest rates, or currency exchange rates; as a substitute for purchasing or selling securities; to increase the fund's return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics. When making use of volatility-linked derivatives, the fund will enter into instruments such as variance swaps, volatility futures and similar volatility instruments that reference indexes representing targeted asset classes, such as variance swaps on the S&P 500 Index or on the Euro Stoxx 50 Index. Derivatives positions are eligible to be held in any of the Equity Component, the Fixed Income Component or Other Component of the fund. The fund may maintain a significant percentage of its assets in cash and cash equivalents which will serve as margin or collateral for the fund's obligations under derivative transactions.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. In addition, you will also be subject to the risks associated with the principal investment strategies of any underlying funds in which the fund invests. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first nine risks).

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***ESG Risk.*** The fund's consideration of ESG factors could cause the fund to perform differently from other funds. While the subadviser believes that the integration of ESG factors into the fund's investment process has the potential to contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.

> ***Underlying Fund Risk.*** The fund will be indirectly affected by factors, risks and performance specific to any other fund in which it invests.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***Debt Instruments Risk.*** Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer's or counterparty's deterioration or default.

> ***Interest Rate Risk.*** The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.

> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Call Risk.*** A fixed-income security may be redeemed before maturity ("called") below its current market price, and a call may lead to the reinvestment of proceeds at a lower interest rate, or with higher credit risk or other less favorable characteristics.

> ***Commodity and Commodity-linked Instruments Risk.*** Commodities and commodity-linked instruments will subject the fund's portfolio to greater volatility than investments in traditional securities.Commodity-linked instruments may experience returns different than the commodity they attempt to track and may also be exposed to counterparty risk.

> ***Convertible Securities Risk.*** The value of a convertible security may decline as interest rates rise and/or vary with fluctuations in the market value of the underlying securities. The security may be called for redemption at a time and/or price unfavorable to the fund.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

> ***Emerging Markets Risk.*** Foreign investing risk may be particularly high to the extent that the fund invests in emerging market securities. Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.

<br> Virtus Global Allocation Fund 13

------

> ***ETF Risk.*** The risks associated with investing in ETFs generally reflect the risks of owning shares of the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

> ***High-Yield Fixed Income Securities (Junk Bonds) Risk.*** High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increases in interest rates or an issuer's deterioration or default.

> ***Index Risk.*** Investments in index-linked derivatives are subject to the risks associated with the applicable index.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Mortgage-Backed and Asset-Backed Securities Risk.*** Changes in interest rates may cause both extension and prepayment risks for mortgage-backed and asset-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the fund.

> ***Portfolio Turnover Risk.*** High levels of portfolio turnover increase transaction costs and taxes and may lower investment performance.

> ***Real Estate Investment Risk.*** The fund may be negatively affected by changes in real estate values or economic conditions, credit risk and interest rate fluctuations, changes in the value of the underlying real estate and defaults by lessees and/or borrowers.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

> ***Variable Distribution Risk.*** Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of two broad-based securities market indexes and a composite benchmark that reflects the market sectors in which the fund invests. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:11.57, 2014:1.99, 2015:-1.53, 2016:3.68, 2017:16.94, 2018:-8.52, 2019:18.35, 2020:14.17, 2021:11.13, 2022:-15.41)](img_8be7a659740a4f2.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 13.26% | Worst Quarter: | 2020, Q1: | -12.48% |

---

<br> 14 Virtus Global Allocation Fund

------

**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | **Since <br>Inception** |
|  |  |  |  | **Class R6** |
|  | **1 Year** | **5 Years** | **10 Years** | **(9/8/2015)** |
| Institutional Class Shares |  |  |  |  |
| Return Before Taxes | -15.41% | 3.05% | 4.67% |  |
| Return After Taxes on Distributions | -16.77% | 0.66% | 2.55% |  |
| Return After Taxes on Distributions and Sale of Fund Shares | -8.33% | 1.79% | 3.01% |  |
| Class A Shares |  |  |  |  |
| Return Before Taxes | -20.30% | 1.61% | 3.83% |  |
| Class C Shares |  |  |  |  |
| Return Before Taxes | -16.22% | 2.00% | 3.65% |  |
| Class P Shares |  |  |  |  |
| Return Before Taxes | -15.43% | 3.01% | 4.67% |  |
| Class R6 Shares |  |  |  |  |
| Return Before Taxes | -15.40% | 3.10% |  | 5.00% |
| Administrative Class Shares |  |  |  |  |
| Return Before Taxes | -15.65% | 3.10% | 4.60% |  |
| MSCI All Country World Index (net) (reflects no deduction for fees, expenses or taxes) | -18.36% | 5.23% | 7.98% | 8.11% |
| Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) | -13.01% | 0.02% | 1.06% | 0.86% |
| 60% MSCI All Country World Index (net) / 40% Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) | -16.02% | 3.45% | 5.39% | 5.43% |

---

The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

#### Portfolio Management
> ***Heather Bergman, Ph.D.,*** senior portfolio manager and managing director, Virtus Multi-Asset, of VIA, has managed the fund since 2017.

> ***Kunal Ghosh,*** chief investment officer and senior managing director, Virtus Systematic, of VIA, has managed the Equity Sleeve of the fund since July 2022.

> ***Paul Pietranico, CFA,*** chief investment officer and senior managing director, Virtus Multi-Asset, of VIA, has managed the fund since 2009.

> ***Michael Rothstein, CFA, FRM, CAIA,*** portfolio manager, Virtus Multi-Asset of VIA, has managed the fund since January 2023.

> ***David Torchia,*** senior portfolio manager and managing director of VIA, has managed the Fixed Income Sleeve of the fund since July 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

<br> Virtus Global Allocation Fund 15

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For Class P, Institutional and Administrative Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 Shares): (i) qualified retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; (vi) 529 portfolios that are advised or sub-advised by Virtus affiliates; and (vii) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from fund assets or the Distributor's or an affiliate's resources on sales of or investments in Class R6 Shares. Class R6 Shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments to brokers or other entities to assist in, or in connection with, the sale of the fund's shares.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> 16 Virtus Global Allocation Fund

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**Virtus International Small-Cap Fund**

#### Investment Objective
The fund seeks maximum long-term capital appreciation.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** |
| Management Fees | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 1.00% |  |  |  |
| Other Expenses | 0.53% | 0.48% | 0.46% | 0.36% | 0.36% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| Total Annual Fund Operating Expenses<sup>(b)</sup> | 1.79% | 2.49% | 1.47% | 1.37% | 1.37% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(c)</sup> | (0.53)% | (0.48)% | (0.42)% | (0.26)% | (0.36)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)(c)</sup> | 1.26% | 2.01% | 1.05% | 1.11% | 1.01% |

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(a) The deferred sales charge is imposed on Class
C Shares redeemed during the first year only.

(b) The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses
to average net assets appearing in the Financial Highlights tables, which tables reflect only the operating
expenses of the fund and do not include acquired fund fees and expenses.

(c) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 1.25% for Class A Shares, 2.00% for Class C Shares, 1.04% for Institutional
Class Shares, 1.10% for Class P Shares and 1.00% for Class R6 Shares through February 1, 2024. Following
the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time.
Under certain conditions, the adviser may recapture operating expenses reimbursed and/or fees waived
under these arrangements for a period of three years following the date such waiver or reimbursement
occurred, provided that the recapture does not cause the fund to exceed its expense limit in effect at
the time of the waiver or reimbursement, and any in effect at the time of recapture, after repayment
is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $671 | $1034 | $1420 | $2498 |
| Class C  | Sold | $304 | $730 | $1282 | $2790 |
|  | Held | $204 | $730 | $1282 | $2790 |
| Institutional Class  | Sold or Held | $107 | $424 | $763 | $1721 |
| Class P  | Sold or Held | $113 | $408 | $725 | $1624 |
| Class R6  | Sold or Held | $103 | $398 | $716 | $1615 |

---

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual

<br> Virtus International Small-Cap Fund 17

------

fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 131% of the average value of its portfolio.

#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in companies with smaller market capitalizations. The fund currently defines companies with smaller market capitalizations as those with market capitalizations comparable to companies included in the MSCI ACWI ex US Small Cap Index. Under normal market and other conditions, the fund expects to maintain a weighted-average market capitalization between 50% and 200% of the weighted-average market capitalization of the securities in the MSCI ACWI ex US Small-Cap Index, which as of September 30, 2022 would permit the fund to maintain a weighted-average market capitalization ranging from $700 million to $2.9 billion. The fund normally invests principally in securities of issuers located outside the United States and allocates its investments among at least eight different countries. The fund may invest up to 30% of its assets in emerging market securities (but no more than 10% in any one emerging market country).

Members of the portfolio management team believe that behavioral biases of investors contribute to market inefficiencies. Their quantitative investment process begins with a proprietary investment-return forecasting model which combines behavioral factors (which seek to capitalize on human behavioral biases (i.e., systematic tendencies) from financial analysts, company management and investors), with intrinsic and valuation factors (which are expected to provide tangible measures of a company's true worth). The portfolio managers integrate this multi-factor approach with a proprietary risk model to form the basis of portfolio construction, with constraints at the individual security, country and industry levels to manage exposures relative to the benchmark. Additionally, all investment recommendations are thoroughly vetted on an individual company level to confirm the investment rationale and suitability before a purchase or sale.

In addition to common stocks and other equity securities (such as preferred stocks, convertible securities and warrants), the fund may invest in securities issued in initial public offerings (IPOs), real estate investment trusts ("REITs") and may utilize foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments. The fund typically does not engage in active hedging of currency but retains flexibility to do so depending on market performance. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first six risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

> ***Emerging Markets Risk.*** Foreign investing risk may be particularly high to the extent that the fund invests in emerging market securities. Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

<br> 18 Virtus International Small-Cap Fund

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> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

> ***IPO Risk.*** Securities purchased in initial public offerings have no trading history, limited issuer information and increased volatility.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Real Estate Investment Risk.*** The fund may be negatively affected by changes in real estate values or economic conditions, credit risk and interest rate fluctuations, changes in the value of the underlying real estate and defaults by lessees and/or borrowers.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of two broad-based securities market indexes. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:32.95, 2014:-8.42, 2015:15.74, 2016:-7.51, 2017:39.28, 2018:-22.6, 2019:24.57, 2020:15.9, 2021:6.14, 2022:-26.96)](img_c8da9cd800584f2.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 22.14% | Worst Quarter: | 2020, Q1: | -24.76% |

---

<br> Virtus International Small-Cap Fund 19

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**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | **Since <br>Inception** |
|  |  |  |  | **Class R6** |
|  | **1 Year** | **5 Years** | **10 Years** | **(2/1/2016)** |
| Institutional Class Shares |  |  |  |  |
| Return Before Taxes | -26.96% | -2.83% | 4.63% |  |
| Return After Taxes on Distributions | -26.98% | -4.59% | 2.87% |  |
| Return After Taxes on Distributions and Sale of Fund Shares | -15.61% | -2.07% | 3.51% |  |
| Class A Shares |  |  |  |  |
| Return Before Taxes | -31.11% | -4.12% | 3.82% |  |
| Class C Shares |  |  |  |  |
| Return Before Taxes | -27.66% | -3.78% | 3.61% |  |
| Class P Shares |  |  |  |  |
| Return Before Taxes | -27.01% | -2.89% | 4.57% |  |
| Class R6 Shares |  |  |  |  |
| Return Before Taxes | -26.92% | -2.79% |  | 2.79% |
| MSCI ACWI Ex USA Small Cap Index (net) (reflects no deduction for fees, expenses or taxes) | -19.97% | 0.67% | 5.24% | 6.20% |
| MSCI World Ex USA Small Cap Index (net) (reflects no deduction for fees, expenses or taxes) | -20.59% | 0.45% | 5.77% | 5.98% |
| MSCI EAFE Small Cap Index (net) (reflects no deduction for fees, expenses or taxes) | -21.39% | -0.05% | 6.21% | 5.53% |

---

Effective January 1, 2023 the benchmark to which performance of the fund is compared is the MSCI All Country World ex USA Small Cap Index (net) replacing MSCI World Ex USA Small Cap Index (net) and MSCI EAFE Small Cap Index (net). This change is being made to more closely match the fund's primary benchmark to its principal investment strategy. The MSCI All Country World ex USA Small Cap Index (net) is a free float-adjusted market capitalization-weighted index that measures mid- and small-cap performance across 22 of 23 Developed Market countries (excluding the U.S.) and 24 Emerging Markets countries. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged and not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

#### Portfolio Management
> ***Kunal Ghosh,*** chief investment officer and senior managing director, Virtus Systematic, of VIA, has managed the fund since July 2022.

> ***Lu Yu, CFA, CIPM,*** lead portfolio manager and managing director, Virtus Systematic, of VIA, has managed the fund since July 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P and Institutional Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 Shares): (i) qualified retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; (vi) 529 portfolios that are advised or sub-advised by Virtus affiliates; and (vii) non-qualified deferred compensation plans. Other institutional

<br> 20 Virtus International Small-Cap Fund

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investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from fund assets or the Distributor's or an affiliate's resources on sales of or investments in Class R6 Shares. Class R6 Shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments to brokers or other entities to assist in, or in connection with, the sale of the fund's shares.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> Virtus International Small-Cap Fund 21

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**Virtus Newfleet Short Duration High Income Fund**

#### Investment Objective
The fund seeks a high level of current income with lower volatility than the broader high yield market.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 2.25% |  |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Class R6** |
| Management Fees | 0.48% | 0.48% | 0.48% | 0.48% | 0.48% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 0.50% |  |  |  |
| Other Expenses | 0.25% | 0.26% | 0.27% | 0.17% | 0.18% |
| Total Annual Fund Operating Expenses | 0.98% | 1.24% | 0.75% | 0.65% | 0.66% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(b)</sup> | (0.12)% | (0.13)% | (0.15)% | (0.00)% | (0.11)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)</sup> | 0.86% | 1.11% | 0.60% | 0.65% | 0.55% |

---

(a) The deferred sales charge is imposed on Class
C Shares redeemed during the first year only.

(b) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 0.86% for Class A Shares, 1.11% for Class C Shares, 0.60% for Institutional
Class Shares, 0.65% for Class P Shares and 0.55% for Class R6 Shares through February 1, 2024. Following
the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time.
Under certain conditions, the adviser may recapture operating expenses reimbursed and/or fees waived
under these arrangements for a period of three years following the date such waiver or reimbursement
occurred, provided that the recapture does not cause the fund to exceed its expense limit in effect at
the time of the waiver or reimbursement, and any in effect at the time of recapture, after repayment
is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $311 | $518 | $743 | $1389 |
| Class C  | Sold | $213 | $381 | $668 | $1489 |
|  | Held | $113 | $381 | $668 | $1489 |
| Institutional Class  | Sold or Held | $61 | $225 | $402 | $916 |
| Class P  | Sold or Held | $66 | $208 | $362 | $810 |
| Class R6  | Sold or Held | $56 | $200 | $357 | $812 |

---

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 56% of the average value of its portfolio.

<br> 22 Virtus Newfleet Short Duration High Income Fund

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#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in debt securities issued by public and private companies, which are rated below investment grade (rated Ba or below by Moody's or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality) (sometimes referred to as "high-yield securities" or "junk bonds"), while maintaining an average duration of less than three years, and in derivatives and other synthetic instruments that have economic characteristics similar to such debt securities. Derivatives transactions may have the effect of either magnifying or limiting the fund's gains and losses. To illustrate the effects of changes in interest rates on a portfolio with a similar average duration, generally, a portfolio with an average duration of three years would be expected to fall approximately 3% if interest rates rose by one percentage point.

The fund may invest up to 20% of its assets in bank loans. The fund may invest up to 20% of its assets in non-U.S. securities, which will typically be U.S. dollar-denominated but may also include securities denominated in non-U.S. currencies. The fund will invest less than 10% of its net assets in securities rated CCC or below by Standard and Poor's.

The fund invests in high yield securities and bank loans, seeking to generate investment income while protecting from adverse market conditions and prioritizing capital preservation.

The portfolio managers apply a disciplined investment approach, making use of fundamental research, to construct a portfolio for investment. The subadviser uses an investment process that focuses on adding value through issue selection, sector/industry selection and opportunistic trading. The fund will generally overweight those sectors and industries where the subadviser identifies well-valued companies whose business profiles are viewed to be improving. In selecting specific debt instruments for investment, the portfolio managers may look to such factors as the issuer's creditworthiness, the investment's yield in relation to its credit quality and the investment's relative value in relation to the high yield market. The portfolio managers seek to construct a portfolio with lower volatility than the broader high yield market in part through the fund's approach to duration and credit quality. The portfolio managers may sell a security for a variety of reasons, such as to invest in a company offering superior investment opportunities.

The fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first six risks).

> ***Debt Instruments Risk.*** Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer's or counterparty's deterioration or default.

> ***High-Yield Fixed Income Securities (Junk Bonds) Risk.*** High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increases in interest rates or an issuer's deterioration or default.

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Interest Rate Risk.*** The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Bank Loan Risk.*** In addition to the risks typically associated with high-yield fixed income securities, bank loans may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be less liquid and may trade infrequently on the secondary market. Bank loans settle on a delayed basis; thus, sale proceeds may not be available to meet redemptions for a substantial period of time after the sale of the loan.

> ***Confidential Information Access Risk.*** The fund's subadviser normally will seek to avoid the receipt of material, non-public information ("Confidential Information") about the issuers of privately placed instruments (which may include Senior Loans, other bank loans and related investments), because such issuers may have or later issue publicly traded securities, and thus the fund may be disadvantaged in comparison to other investors who have received Confidential Information from such issuers.

> ***Counterparty Risk.*** There is risk that a party upon whom the fund relies to complete a transaction will default.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

<br> Virtus Newfleet Short Duration High Income Fund 23

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> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Mortgage-Backed and Asset-Backed Securities Risk.*** Changes in interest rates may cause both extension and prepayment risks for mortgage-backed and asset-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the fund.

> ***Prepayment/Call Risk.*** Issuers may prepay or call their fixed rate obligations when interest rates fall, forcing the fund to reinvest in obligations with lower interest rates and the fund may not benefit fully from the increase in value that other fixed income investments experience when interest rates decline.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

> ***Unrated Fixed Income Securities Risk.*** If the subadviser is unable to accurately assess the quality of an unrated fixed income security, the fund may invest in a security with greater risk than intended, or the securities may be more difficult to sell than anticipated.

> ***U.S. Government Securities Risk.*** U.S. Government securities may be subject to price fluctuations. An agency may default on an obligation not backed by the full faith and credit of the United States. Any guarantee on U.S. government securities does not apply to the value of the fund's shares.

> ***Variable Distribution Risk.*** Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. The current subadviser commenced providing services for the fund in July 2022 and therefore the returns shown in the table for periods prior to that date reflect the performance of other investment professionals.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:4.56, 2014:2.04, 2015:-0.23, 2016:10.48, 2017:4.26, 2018:-0.02, 2019:7.36, 2020:6.02, 2021:5.35, 2022:-5.21)](img_a8f8a8517a454f2.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 9.80% | Worst Quarter: | 2020, Q1: | -11.95% |

---

<br> 24 Virtus Newfleet Short Duration High Income Fund

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**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | **Since <br>Inception** |
|  |  |  |  | **Class R6** |
|  | **1 Year** | **5 Years** | **10 Years** | **(2/1/2017)** |
| Institutional Class Shares |  |  |  |  |
| Return Before Taxes | -5.21% | 2.59% | 3.37% |  |
| Return After Taxes on Distributions | -7.50% | 0.23% | 1.00% |  |
| Return After Taxes on Distributions and Sale of Fund Shares | -3.07% | 0.95% | 1.50% |  |
| Class A Shares |  |  |  |  |
| Return Before Taxes | -7.61% | 1.86% | 2.87% |  |
| Class C Shares |  |  |  |  |
| Return Before Taxes | -5.64% | 2.09% | 2.85% |  |
| Class P Shares |  |  |  |  |
| Return Before Taxes | -5.23% | 2.57% | 3.32% |  |
| Class R6 Shares |  |  |  |  |
| Return Before Taxes | -5.21% | 2.66% |  | 2.85% |
| ICE BofA 1-3Y BB US Cash Pay High Yield Index (reflects no deduction for fees, expenses or taxes) | -3.07% | 3.05% | 3.59% | 3.12% |

---

The ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index is a subset of The ICE BofA U.S. Cash Pay High Yield Index including all securities with a remaining term to final maturity less than 3 years and rated BB1 through BB3, inclusive. The ICE BofA U.S. Cash Pay High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the U.S. domestic market.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is Newfleet Asset Management ("Newfleet"), an operating division of Virtus Fixed Income Advisers, LLC, an affiliate of VIA.

#### Portfolio Management
> ***David L. Albrycht, CFA,*** Newfleet Division President and Chief Investment Officer, & senior portfolio manager of Newfleet, has managed the fund since July 2022.

 ***William J. Eastwood, CFA,*** senior managing director, portfolio manager and head of trading of Newfleet, has managed the fund since July 2022.

> ***Eric Hess, CFA,*** senior managing director, portfolio manager and high yield sector head of Newfleet, has managed the fund since July 2022.

 ***Kyle A. Jennings, CFA,*** senior managing director and head of credit research of Newfleet, has managed the fund since July 2022.

 ***Francesco Ossino,*** senior managing director, senior portfolio manager, and bank loan sector head of Newfleet, has managed the fund since July 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P and Institutional Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 Shares): (i) qualified

<br> Virtus Newfleet Short Duration High Income Fund 25

------

retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; (vi) 529 portfolios that are advised or sub-advised by Virtus affiliates; and (vii) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from fund assets or the Distributor's or an affiliate's resources on sales of or investments in Class R6 Shares. Class R6 Shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments to brokers or other entities to assist in, or in connection with, the sale of the fund's shares.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> 26 Virtus Newfleet Short Duration High Income Fund

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**Virtus NFJ Emerging Markets Value Fund**

#### Investment Objective
The fund seeks long-term capital appreciation.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** |
| Management Fees | 0.85% | 0.85% | 0.85% | 0.85% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 1.00% |  |  |
| Other Expenses | 0.42% | 0.39% | 0.39% | 0.60% |
| Total Annual Fund Operating Expenses | 1.52% | 2.24% | 1.24% | 1.45% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(b)</sup> | (0.38)% | (0.35)% | (0.35)% | (0.46)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(b)</sup> | 1.14% | 1.89% | 0.89% | 0.99% |

---

(a) The deferred sales
charge is imposed on Class C Shares redeemed during the first year only.

(b) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 1.14% for Class A Shares, 1.89% for Class C Shares, 0.89% for Institutional
Class Shares, 0.99% for Class P Shares and through February 1, 2024. Following the contractual period,
the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions,
the adviser may recapture operating expenses reimbursed and/or fees waived under these arrangements for
a period of three years following the date such waiver or reimbursement occurred, provided that the recapture
does not cause the fund to exceed its expense limit in effect at the time of the waiver or reimbursement,
and any in effect at the time of recapture, after repayment is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $660 | $969 | $1299 | $2232 |
| Class C  | Sold | $292 | $667 | $1168 | $2548 |
|  | Held | $192 | $667 | $1168 | $2548 |
| Institutional Class  | Sold or Held | $91 | $359 | $647 | $1469 |
| Class P  | Sold or Held | $101 | $413 | $748 | $1696 |

---

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 83% of the average value of its portfolio.

<br> Virtus NFJ Emerging Markets Value Fund 27

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#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in equity securities of companies that are domiciled in or tied economically to countries with emerging securities markets—that is, countries with securities markets which are, in the opinion of the portfolio managers, less sophisticated than more developed markets in terms of participation by investors, analyst coverage, liquidity and regulation. Most countries with emerging securities markets are located in Asia, Africa, the Middle East, Latin America and Eastern Europe. The fund may achieve its exposure to non-U.S. equity securities in several ways, including through investing in American Depositary Receipts ("ADRs"), Global Depositary Receipts ("GDRs") and other depositary receipts, in addition to direct investments in the securities of non-U.S. issuers. The fund may invest in exchange traded funds ("ETFs").

Although the fund does not expect to invest significantly in foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments, or access products such as participatory notes ("P-Notes"), it may do so at any time. The fund typically does not seek to hedge its exposure to securities denominated in non-U.S. dollar currencies but retains the flexibility to do so at any time.

In selecting investments for the fund, the portfolio managers use a value investing style focusing on companies the portfolio managers believe are undervalued, including smaller capitalization securities and real estate investment trusts ("REITs"). The portfolio managers partition the fund's selection universe by industry and then identify what they believe to be undervalued securities in each industry to determine potential holdings for the fund representing a broad range of industry groups. The portfolio managers use quantitative factors to screen the fund's selection universe, analyzing factors such as price-to-earnings ratios (i.e., share price relative to a company's earnings), dividend yield, price-to-book ratios (i.e., share price relative to a company's balance sheet value), price-to-cash-flow ratios (i.e., share price relative to a company's cash flow). After still further narrowing the universe through a combination of qualitative analysis and fundamental research, the portfolio managers select in excess of 100 securities for the fund.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first seven risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

> ***Emerging Markets Risk.*** Foreign investing risk may be particularly high to the extent that the fund invests in emerging market securities. Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.

> ***China-Related Risk.*** Because the fund may invest a substantial portion of its assets in equity securities of Chinese companies, it is particularly affected by events or factors relating to China, which may increase risk and volatility.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

> ***Depositary Receipts Risk.*** Investments in foreign companies through depositary receipts may expose the fund to the same risks as direct investments in securities of foreign issuers.

<br> 28 Virtus NFJ Emerging Markets Value Fund

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> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Exchange-Traded Funds (ETFs) Risk.*** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs to the fund of owning shares of an ETF may exceed the cost of investing directly in the underlying securities.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Participatory Notes Risk.*** The performance of participatory notes ("P-notes") will not replicate exactly the performance of the issuers that they seek to replicate due to transaction costs and other expenses, and P-notes are also subject to counterparty risk and liquidity risk.

> ***Portfolio Turnover Risk.*** High levels of portfolio turnover increase transaction costs and taxes and may lower investment performance.

> ***Real Estate Investment Risk.*** The fund may be negatively affected by changes in real estate values or economic conditions, credit risk and interest rate fluctuations, changes in the value of the underlying real estate and defaults by lessees and/or borrowers.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Value Stocks Risk.*** The fund may underperform when value investing is out of favor or the fund's investments may not appreciate in value as anticipated.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future.

The bar chart shows changes in the fund's performance from year to year over the life of the fund. The table shows how the fund's average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:2.95, 2014:-2.39, 2015:-9.52, 2016:13.13, 2017:37.87, 2018:-19.63, 2019:21.9, 2020:22.61, 2021:2.53, 2022:-27.75)](img_bc14ba7bd6964f2.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 21.65% | Worst Quarter: | 2020, Q1: | -21.20% |

---

<br> Virtus NFJ Emerging Markets Value Fund 29

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**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| Institutional Class Shares |  |  |  |
| Return Before Taxes | -27.75% | -2.31% | 2.35% |
| Return After Taxes on Distributions | -27.05% | -2.71% | 1.44% |
| Return After Taxes on Distributions and Sale of Fund Shares | -15.13% | -1.64% | 1.53% |
| Class A Shares |  |  |  |
| Return Before Taxes | -31.88% | -3.65% | 1.52% |
| Class C Shares |  |  |  |
| Return Before Taxes | -28.45% | -3.26% | 1.33% |
| Class P Shares |  |  |  |
| Return Before Taxes | -27.84% | -2.41% | 2.25% |
| MSCI Emerging Markets Index (net) (reflects no deduction for fees, expenses or taxes) | -20.09% | -1.40% | 1.44% |

---

The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged and not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is NFJ Investment Group, LLC ("NFJ").

#### Portfolio Management
> ***John R. Mowrey, CFA,*** co-lead senior portfolio manager, analyst, executive managing director, and Chief Investment Officer for the NFJ Investment team, has managed the fund since 2013.

> ***J. Garth Reilly,*** co-lead senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since 2018.

> ***Thomas W. Oliver, CFA, CPA,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since 2012.

> ***R. Burns McKinney, CFA,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since 2012.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P and Institutional Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

<br> 30 Virtus NFJ Emerging Markets Value Fund

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#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> Virtus NFJ Emerging Markets Value Fund 31

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**Virtus NFJ Global Sustainability Fund**

#### Investment Objective
The fund seeks long-term capital appreciation.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

---

| | | | |
|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Institutional** | **Class P** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Institutional** | **Class P** |
| Management Fees | 0.80% | 0.80% | 0.80% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% |  |  |
| Other Expenses | 0.37% | 0.26% | 0.33% |
| Total Annual Fund Operating Expenses | 1.42% | 1.06% | 1.13% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(a)</sup> | (0.48)% | (0.37)% | (0.34)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement<sup>(a)</sup> | 0.94% | 0.69% | 0.79% |

---

(a) The fund's investment adviser has contractually
agreed to limit the fund's total operating expenses (excluding certain expenses, such as taxes, leverage
and borrowing expenses (such as commitment, amendment and renewal expenses on credit or redemption facilities),
interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual
or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend
expenses, if any) so that such expenses do not exceed 0.94% for Class A Shares, 0.69% for Institutional
Class Shares, 0.79% for Class P Shares and through February 1, 2024. Following the contractual period,
the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions,
the adviser may recapture operating expenses reimbursed and/or fees waived under these arrangements for
a period of three years following the date such waiver or reimbursement occurred, provided that the recapture
does not cause the fund to exceed its expense limit in effect at the time of the waiver or reimbursement,
and any in effect at the time of recapture, after repayment is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $641 | $930 | $1240 | $2119 |
| Institutional Class  | Sold or Held | $70 | $300 | $549 | $1261 |
| Class P  | Sold or Held | $81 | $325 | $589 | $1344 |

---

#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 70% of the average value of its portfolio.

#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its investment objective by creating a portfolio of global equities with a focus on companies that the portfolio managers believe exhibit strong records with respect to environmental, social, and corporate governance ("ESG") factors. The fund normally invests primarily in equity securities of both U.S. and non-U.S. companies, including emerging market securities. Under normal market conditions, the fund will invest at least 40% of its assets in non-U.S. securities. Notwithstanding the previous sentence, if the weighting of non-U.S. securities in the Dow Jones Sustainability World Index (the "Index") drops below 45%, the fund may invest a lower amount in non-U.S. securities, which will normally be such that the minimum level for non-U.S. securities will be 5% below the weighting of non-U.S. securities in the Index as of the most

<br> 32 Virtus NFJ Global Sustainability Fund

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recently published month-end composition. As of June 30, 2022, the capitalization weighting of non-U.S. securities in the Index was approximately 48.5%. The fund is not managed with reference to the Index, and its primary performance benchmark is the MSCI ACWI. The portfolio managers intend to diversify the fund's investments across geographic regions and economic sectors. The fund intends, but is not required, to hold stocks that are not included in the benchmark index. The fund may invest in issuers of any size market capitalization, including smaller capitalization companies. The fund may achieve its exposure to non-U.S. securities either directly or through depository receipts such as Global Depositary Receipts (GDRs).

The portfolio managers begin with an investment universe comprised of more than 5,000 equity securities and assess individual securities using a disciplined investment process that integrates a focus on the ESG records of the issuers of such securities with proprietary fundamental, company- specific research and quantitative analysis. The portfolio managers utilize a sector analysis to screen out issuers based on revenue from sectors such as tobacco, thermal coal, alcohol, gambling and weapons.

The portfolio managers use a proprietary ESG model scoring to evaluate and rate the securities in the investment universe. Based on this proprietary ESG scoring model, companies' ESG practices and risk factors are considered as part of the investment process, namely for the purposes of identifying tail risk factors (i.e., low probability factors that could have an outsized negative effect on performance) arising from a company's ESG practices and understanding how a company's ESG risk factors might affect the company and its performance. The portfolio managers believe that there are long-term benefits in an investment approach that attaches material weight to certain issues that receive less attention from traditional investment analysis, such as the environment, workplace relations, human rights, community relations, product safety and impact, and corporate governance and business ethics. The portfolio managers also believe that investing in companies with strong records for managing ESG risks can generate long-term competitive financial returns and positive societal impact and that companies that do not exhibit strong records with respect to ESG factors may be at a greater long-term risk of negative economic consequences. With respect to ESG factors, the portfolio managers will aim to invest the majority of the fund's portfolio in stocks that they rate as best-in-class (i.e., NFJ ESG rated AAA, AA or A) and avoid stocks rated worst-in-class (i.e., NFJ rated B and CCC), although the portfolio managers maintain discretion to invest from time to time in companies with minimum ESG scores and to exclude companies with high ESG scores from the fund's portfolio.

The portfolio managers then analyze specific companies for possible investment through a disciplined, fundamental, bottom up-research process and quantitative analysis. In identifying potential investments, the portfolio managers ordinarily look for companies that exhibit some or all of the following characteristics: a strong record with respect to ESG factors; a demonstrated record of ESG risk management; long-term competitive advantage; a strong balance sheet; high barriers to entry in the company's industry or area of business; and a strong record of capital discipline. The portfolio managers then seek to identify attractively-valued quality companies that exhibit growth characteristics. The portfolio managers construct the fund's portfolio with the expectation that stock-specific risk will drive the fund's returns over a complete market cycle and may reallocate the portfolio's holdings in attempting to mitigate other risk factors, such as currency risk, country/regional risk, investment style risk, and sector risk, among others. Under normal circumstances, the portfolio managers typically select approximately 40 to 60 stocks for the fund.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first five risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Equity Securities Risk.*** The value of the stocks held by the fund may be negatively affected by the financial market, industries in which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized companies may enhance that risk.

> ***Foreign Investing Risk.*** Investing in foreign securities subjects the fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

> ***Sustainable Investing Risk.*** Because the fund focuses on investments in companies that the fund's subadviser believes exhibit strong environmental, social, and corporate governance records, the fund's universe of investments may be smaller than that of other funds and broad equity benchmark indices.

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

> ***Currency Rate Risk.*** Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the fund's shares.

> ***Depositary Receipts Risk.*** Investments in foreign companies through depositary receipts may expose the fund to the same risks as direct investments in securities of foreign issuers.

<br> Virtus NFJ Global Sustainability Fund 33

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> ***Emerging Markets Risk.*** Foreign investing risk may be particularly high to the extent that the fund invests in emerging market securities. Emerging markets securities may be more volatile, or more greatly affected by negative conditions, than those of their counterparts in more established foreign markets.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. The current subadviser commenced providing services for the fund in July 2022 and therefore the returns shown in the table for periods prior to that date reflect the performance of other investment professionals.

The bar chart shows changes in the fund's performance from year to year over the life of the fund. The table shows how the fund's average annual returns compare to those of two broad-based securities market indexes. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2015:2.08, 2016:4.06, 2017:24.52, 2018:-8.27, 2019:31.5, 2020:18.87, 2021:23.44, 2022:-22.92)](img_2f7f0ee701684f2.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2020, Q2: | 20.34% | Worst Quarter: | 2020, Q1: | -17.56% |

---

**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Since** |
|  |  |  | **Inception** |
|  | **1 Year** | **5 Years** | **(12/9/2014)** |
| Institutional Class Shares |  |  |  |
| Return Before Taxes | -22.92% | 6.41% | 7.32% |
| Return After Taxes on Distributions | -26.86% | 3.51% | 5.24% |
| Return After Taxes on Distributions and Sale of Fund Shares | -10.71% | 4.88% | 5.64% |
| Class A Shares |  |  |  |
| Return Before Taxes | -27.35% | 4.96% | 6.32% |
| Class P Shares |  |  |  |
| Return Before Taxes | -23.03% | 6.30% | 7.22% |
| MSCI All Country World Index (net) (reflects no deduction for fees, expenses or taxes) | -18.36% | 5.23% | 6.59% |
| Dow Jones Sustainability World Index (net) (reflects no deduction for fees, expenses or taxes) | -16.04% | 6.11% | 7.00% |

---

The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The Dow Jones Sustainability World Index (net) tracks the performance of the top 10% of the 2,500 largest companies in the S&P Global Broad Market

<br> 34 Virtus NFJ Global Sustainability Fund

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Index that are the world's sustainability leaders based on economic, environmental and social criteria. The indexes are calculated on a total return basis. The indexes are unmanaged and not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is NFJ Investment Group, LLC ("NFJ").

#### Portfolio Management
> ***R. Burns McKinney, CFA,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since July 2022.

> ***John R. Mowrey, CFA,*** senior portfolio manager, analyst, executive managing director, and Chief Investment Officer for the NFJ Investment team, has managed the fund since Jul 2022.

> ***Thomas W. Oliver, CFA, CPA,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since July 2022.

> ***Jeff N. Reed, CFA,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since 2022.

> ***J. Garth Reilly,*** senior portfolio manager, analyst, and managing director for the NFJ Investment team, has managed the fund since 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P and Institutional Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> Virtus NFJ Global Sustainability Fund 35

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**Virtus Seix High Yield Income Fund**

#### Investment Objective
The fund seeks a high level of current income and capital growth.

#### Fees and Expenses
The tables below illustrate the fees and expenses that you may pay if you buy, hold and sell shares of the fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts in Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Virtus Funds. More information on these and other discounts is available: (i) from your financial professional or other financial intermediary; (ii) under "Sales Charges" on page 74 of the fund's prospectus; (iii) with respect to purchase of shares through specific intermediaries, in Appendix A to the fund's prospectus, entitled "Intermediary Sales Charge Discounts and Waivers;" and (iv) under "Alternative Purchase Arrangements" on page 113 of the fund's SAI.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Shareholder Fees *(fees paid directly from your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Administrative** |
| Maximum Sales Charge (load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |  |
| Maximum Deferred Sales Charge (load) (as a percentage of the lesser of purchase price or redemption proceeds)  |  | 1.00%<sup>(a)</sup> |  |  |  |
| **Annual Fund Operating Expenses *(expenses that you pay each year as* <br>*a percentage of the value of your investment)*** | **Class A** | **Class C** | **Institutional** | **Class P** | **Administrative** |
| Management Fees | 0.48% | 0.48% | 0.48% | 0.48% | 0.48% |
| Distribution and Shareholder Servicing (12b-1) Fees | 0.25% | 0.90% |  |  | 0.25% |
| Other Expenses | 0.59% | 0.49% | 0.51% | 0.52% | 0.14% |
| Total Annual Fund Operating Expenses | 1.32% | 1.87% | 0.99% | 1.00% | 0.87% |
| Recapture of expenses previously reimbursed and/or waived | 0.00% | 0.00% | 0.00% | 0.00% | 0.13% |
| Less: Fee Waiver and/or Expense Reimbursement<sup>(b)</sup> | (0.20)% | (0.06)% | (0.16)% | (0.20)% | (0.00)% |
| Total Annual Fund Operating Expenses After Expense Reimbursement or Recapture<sup>(b)</sup> | 1.12% | 1.81% | 0.83% | 0.80% | 1.00% |

---

(a) The deferred sales charge is imposed on Class
C Shares redeemed during the first year only.

(b) The fund's investment adviser has contractually agreed to limit the fund's
total operating expenses (excluding certain expenses, such as taxes, leverage and borrowing expenses
(such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage
commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently
occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any)
so that such expenses do not exceed 1.12% for Class A Shares, 1.81% for Class C Shares, 0.83% for Institutional
Class Shares, 0.80% for Class P Shares and 1.00% for Administrative Class Shares through February 1,
2024. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements
at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed and/or
fees waived under these arrangements for a period of three years following the date such waiver or reimbursement
occurred, provided that the recapture does not cause the fund to exceed its expense limit in effect at
the time of the waiver or reimbursement, and any in effect at the time of recapture, after repayment
is taken into account.

#### Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods or continued to hold them. The example also assumes that your investment has a 5% return each year, that the fund's operating expenses remain the same and that the expense reimbursement agreement remains in place for the contractual period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Status** | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| Class A  | Sold or Held | $485 | $759 | $1053 | $1889 |
| Class C  | Sold | $284 | $582 | $1005 | $2185 |
|  | Held | $184 | $582 | $1005 | $2185 |
| Institutional Class  | Sold or Held | $85 | $299 | $532 | $1198 |
| Class P  | Sold or Held | $82 | $298 | $533 | $1206 |
| Administrative Class  | Sold or Held | $102 | $291 | $495 | $1085 |

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#### Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 51% of the average value of its portfolio.

<br> 36 Virtus Seix High Yield Income Fund

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#### Investments, Risks and Performance

#### Principal Investment Strategies
The fund seeks to achieve its objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in high yield securities ("junk bonds"), which are fixed income securities rated below investment grade or unrated and determined to be of similar quality. The fund's fixed income securities may be fixed-, variable- or floating-rate. The fund invests across the entire range of maturities of high yield securities.

The portfolio managers follow a disciplined, fundamental bottom-up research process, which facilitates the early identification of high yield issuers demonstrating an ability to improve their fundamental characteristics. The portfolio managers select issuers that exceed minimum credit statistics and that they believe exhibit high visibility of future expected operating performance. The portfolio managers look for the following in high yield investment candidates: ability to exceed market expectations of operating earnings; the potential for bond rating upgrades; debt reduction capabilities; the ability to secure other sources of capital; and the potential to be recognized as an acquisition candidate. The fundamental research process generally includes: breakdown of a company and its growth by division and region, including revenue model analysis; profit margin analysis; experience and quality of its management; industry dynamics and competitive analysis; distribution channel and supply chain analysis; and macroeconomic climate. The fund may invest in the securities of issuers of any market capitalization, including smaller capitalization companies. The fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

#### Principal Risks
The fund may not achieve its objective(s), and it is not intended to be a complete investment program. The value of the fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of the fund's investments decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected, and investments may fail to perform as the subadviser expects. As a result, the value of your shares may decrease. Purchase and redemption activities by fund shareholders may impact the management of the fund and its ability to achieve its investment objective(s). The principal risks of investing in the fund are identified below (in alphabetical order after the first seven risks).

> ***Market Volatility Risk.*** The value of the securities in the fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short- or long-term. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

> ***Issuer Risk.*** The fund will be affected by factors specific to the issuers of securities and other instruments in which the fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers.

> ***Interest Rate Risk.*** The values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced for securities with longer maturities.

> ***High-Yield Fixed Income Securities (Junk Bonds) Risk.*** High-yield or junk bonds are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to increases in interest rates or an issuer's deterioration or default.

> ***Counterparty Risk.*** A counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund.

> ***Credit Risk.*** If the issuer of a debt instrument fails to pay interest or principal in a timely manner, or negative perceptions exist in the market of the issuer's ability to make such payments, the price of the security may decline.

***> *Liquidity Risk.* Certain securities may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. To the extent the fund invests in less liquid securities or the level of liquidity in a particular market is constrained, the lack of an active market for investments may cause delay in disposition or force a sale below fair value.***

> ***Allocation Risk.*** If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer.

> ***Debt Instruments Risk.*** Debt instruments are subject to greater levels of credit and liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer's or counterparty's deterioration or default.

> ***Derivatives Risk.*** Derivatives may include, among other things, futures, options, forwards and swap agreements and may be used in order to hedge portfolio risks, create leverage or attempt to increase returns. Investments in derivatives may result in increased volatility and the fund may incur a loss greater than its principal investment.

> ***Focused Investment Risk.*** To the extent the fund focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.

***> *Leverage Risk.* When a fund leverages its portfolio by borrowing or certain types of transactions or instruments, including derivatives, fund may be less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund's value may increase.***

> ***Portfolio Turnover Risk.*** High levels of portfolio turnover increase transaction costs and taxes and may lower investment performance.

> ***Redemption Risk.*** One or more large shareholders or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining shareholders in the fund by causing the fund to take actions it would not otherwise have taken.

<br> Virtus Seix High Yield Income Fund 37

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> ***Small and Medium Market Capitalization Risk.*** The fund's investments in small and medium market capitalization companies may increase the volatility and risk of loss to the fund, as compared with investments in larger, more established companies.

*Please see "More Information About Risks Related to Principal Investment Strategies" in the fund's prospectus for a more detailed description of the fund's risks.*

#### Performance Information
The bar chart and table below provide some indication of the potential risks of investing in the fund. The fund's past performance, before and after taxes, is not necessarily an indication of how the fund will perform in the future. The current subadviser commenced providing services for the fund in July 2022 and therefore the returns shown in the table for periods prior to that date reflect the performance of other investment professionals.

The bar chart shows changes in the fund's performance from year to year over a 10-year period. The table shows how the fund's average annual returns compare to those of a broad-based securities market index. Updated performance information is available at virtus.com or by calling 800-243-1574.

---

| |
|:---|
| **Calendar year total returns for Institutional Class Shares**  |
| Returns do not reflect sales charges applicable to other share classes and would be lower if they did. |

---

![PerformanceBarChartData(2013:8.21, 2014:0.58, 2015:-4.9, 2016:14.01, 2017:6.08, 2018:-4.93, 2019:14, 2020:3.65, 2021:5.7, 2022:-10.82)](img_f85c01c1cd524f2.jpg)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Best Quarter: | 2019, Q1: | 7.12% | Worst Quarter: | 2020, Q1: | -11.36% |

---

**Average Annual Total Returns** (for the periods ended 12/31/22)

Returns reflect deduction of maximum sales charges and full redemption at end of periods shown.

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **10 Years** |
| Institutional Class Shares |  |  |  |
| Return Before Taxes | -10.82% | 1.15% | 2.86% |
| Return After Taxes on Distributions | -12.90% | -1.18% | 0.18% |
| Return After Taxes on Distributions and Sale of Fund Shares | -6.39% | -0.10% | 0.98% |
| Class A Shares |  |  |  |
| Return Before Taxes | -14.52% | 0.07% | 2.13% |
| Class C Shares |  |  |  |
| Return Before Taxes | -11.85% | 0.14% | 1.81% |
| Class P Shares |  |  |  |
| Return Before Taxes | -10.89% | 1.17% | 2.86% |
| Administrative Class Shares |  |  |  |
| Return Before Taxes | -11.08% | 1.43% | 2.77% |
| ICE BofA US High Yield Master II Index (reflects no deduction for fees, expenses or taxes) | -11.22% | 2.12% | 3.94% |

---

The ICE BofA US High Yield Index tracks the performance of below investment grade U.S. dollar denominated corporate bonds publicly issued in the U.S. domestic market and includes issues with a credit rating of BBB or below. The index is calculated on a total return basis. The index is unmanaged and is not available for direct investment.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. After-tax returns are shown only for Institutional Class Shares; after-tax returns for other classes will vary. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. In certain cases, the Return After Taxes on Distributions and Sale of Fund Shares for a period may be higher than other return figures for the same period. This will occur when a capital loss is realized upon the sale of fund shares and provides an assumed tax benefit that increases the return.

<br> 38 Virtus Seix High Yield Income Fund

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#### Management
The fund's investment adviser is Virtus Investment Advisers, Inc. ("VIA").

The fund's subadviser is Seix Investment Advisors ("Seix"), an operating division of Virtus Fixed Income Advisers, LLC, an affiliate of VIA.

#### Portfolio Management

#### > James FitzPatrick, CFA, Managing Director and Portfolio Manager of Seix, has co-managed the fund since July 2022.

#### > Michael Kirkpatrick, Managing Director and Senior Portfolio Manager of Seix, has co-managed the fund since July 2022.

#### Purchase and Sale of Fund Shares
Minimum initial investments applicable to Class A and Class C Shares:

 $2,500, generally

 $100 for Individual Retirement Accounts (IRAs), systematic purchase or exchange accounts

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

Minimum additional investments applicable to Class A and Class C Shares:

 $100, generally

 No minimum for defined contribution plans, asset-based fee programs, profit-sharing plans or employee benefit plans.

For Class P, Institutional and Administrative Class shares, the minimum initial investment in the fund is $1,000,000 and no minimum is needed to add to an existing account, though minimums may be modified for certain financial intermediaries that aggregate trades on behalf of investors.

In general, you may buy or sell shares of the fund by mail or telephone on any business day. You also may buy and sell shares through a financial professional, broker-dealer or other financial intermediary.

#### Taxes
The fund's distributions are taxable to you as either ordinary income or capital gains, except when your investment is through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

#### Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your financial professional to recommend the fund over another investment.

Ask your financial professional or visit your financial intermediary's website for more information.

<br> Virtus Seix High Yield Income Fund 39

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**More Information About Fund Expenses**

VIA has contractually agreed to limit the total operating expenses (excluding certain expenses, such as front-end or contingent deferred sales charges, taxes, leverage and borrowing expenses (such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any) through February 1, 2024 of the funds listed below, so that such expenses do not exceed, on an annualized basis, the amounts indicated in the following table:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Shares** | **Class C Shares** | **Institutional Class Shares** | **Class P Shares** | **Class R6 Shares** | **Administrative Class Shares** |
| Virtus Convertible Fund | 0.96% | 1.73% | 0.71% | 0.71% | 0.62% | 0.93% |
| Virtus Duff & Phelps Water Fund | 1.22% | 1.97% | 0.93% | 0.94% | N/A | N/A |
| Virtus Global Allocation Fund | 0.52% | 1.27% | 0.29% | 0.32% | 0.22% | 0.47% |
| Virtus International Small-Cap Fund | 1.25% | 2.00% | 1.04% | 1.10% | 1.00% | N/A |
| Virtus Newfleet Short Duration High Income Fund | 0.86% | 1.11% | 0.60% | 0.65%<sup>(\*)</sup> | 0.55% | N/A |
| Virtus NFJ Emerging Markets Value Fund | 1.14% | 1.89% | 0.89% | 0.99% | N/A | N/A |
| Virtus NFJ Global Sustainability Fund | 0.94% | N/A | 0.69% | 0.79% | N/A | N/A |
| Virtus Seix High Yield Income Fund | 1.12% | 1.81% | 0.83% | 0.80% | N/A | 1.00%<sup>(\*)</sup> |

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<sup>(\*)</sup> Class expenses currently at or below the capped level.

Following the contractual period, VIA may discontinue these and/or prior arrangements at any time. Under certain conditions, the Adviser may recapture operating expenses reimbursed and/or fees waived under these arrangements for a period of three years following the date such waiver or reimbursement occurred, provided that the recapture does not cause the applicable fund(s) to exceed its expense limit in effect at the time of the waiver or reimbursement, and any in effect at the time of recapture, after repayment is taken into account.

For those funds operating under an expense reimbursement arrangement or fee waiver during the prior fiscal year, total (net) fund operating expenses, including acquired fund fees and expenses, if any, after effect of any expense reimbursement and/or fee waivers were:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **Class A** <br>**Shares** | **Class C Shares** | **Institutional Class Shares** | **Class P Shares** | **Class R6 Shares** | **Administrative Class Shares** |
| Virtus Convertible Fund | 0.96% | 1.73% | 0.71% | 0.71% | 0.62% | 0.93% |
| Virtus Duff & Phelps Water Fund | 1.22% | 1.97% | 0.93% | 0.94% | N/A | N/A |
| Virtus Global Allocation Fund | 0.52% | 1.27% | 0.29% | 0.32% | 0.22% | 0.47% |
| Virtus International Small-Cap Fund | 1.25% | 2.00% | 1.04% | 1.10% | 1.00% | N/A |
| Virtus Newfleet Short Duration High Income Fund | 0.86% | 1.11% | 0.60% | 0.65% | 0.55% | N/A |
| Virtus NFJ Emerging Markets Value Fund | 1.14% | 1.89% | 0.89% | 0.99% | N/A | N/A |
| Virtus NFJ Global Sustainability Fund | 0.94% | N/A | 0.69% | 0.79% | N/A | N/A |
| Virtus Seix High Yield Income Fund | 1.12% | 1.81% | 0.83% | 0.80% | N/A | 1.00% |

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<br> 40 Virtus Mutual Funds

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**More Information About Investment Objectives and Principal Investment Strategies**

The investment objectives and principal strategies of each fund are described in this section. Each of the following funds has either a fundamental or a non-fundamental investment objective as noted below. A fundamental investment objective may only be changed with shareholder approval. A non-fundamental investment objective may be changed by the Board of Trustees of that fund without shareholder approval. If a fund's investment objective is changed, the prospectus will be supplemented to reflect the new investment objective and shareholders will be provided with at least 60 days advance notice of such change. There is no guarantee that a fund will achieve its objective.

Please see the SAI for additional information about the securities and investment strategies described in this prospectus and about additional securities and investment strategies that may be used by the funds.

<br> Virtus Mutual Funds 41

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**Virtus Convertible Fund**

#### Non-Fundamental Investment Objectives:
The fund seeks maximum total return, consisting of capital appreciation and current income.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in convertible securities. Convertible securities include, but are not limited to, corporate bonds, debentures, notes or preferred stocks and their hybrids that can be converted into (exchanged for) equity securities or other securities (such as warrants or options) that provide an opportunity for equity participation. For purposes of this policy, the fund may also gain exposure to convertible securities through derivatives or other "synthetic" means. The fund may invest in securities of any market capitalization or credit quality, and may from time to time invest a significant amount of its assets in securities of smaller companies. The fund may also invest up to 20% of its net assets in nonconvertible debt securities rated below investment grade (rated Ba or below by Moody's, or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality). The fund may also invest a portion of its assets in contingent convertible securities ("CoCos"), which are a form of hybrid security that generally either converts into equity or has its principal written down upon the occurrence of certain pre-specified triggering events. The fund may also invest in securities issued by the U.S. government and its agencies and instrumentalities. The fund's policy of investing 80% of its assets in convertible securities may be changed only upon 60 days' written notice to shareholders.

The portfolio managers follow a disciplined, fundamental bottom-up research process, which facilitates the early identification of convertible securities issuers demonstrating the ability to improve their fundamental characteristics. The portfolio managers select issuers that exceed minimum fundamental metrics and exhibit the highest visibility of future expected operating performance. The fundamental research process generally includes: a breakdown of a company and its growth by division and region, including revenue model analysis; profit margin analysis; analysis of experience and quality of its management; industry dynamics and competitive analysis; distribution channel and supply chain analysis; and macroeconomic climate analysis. The portfolio managers may consider selling a particular security when the portfolio managers perceive a change in company fundamentals, a decline in relative attractiveness to other issues, and/or a decline in industry fundamentals, or if any of the original reasons for purchase materially changes.

The portfolio managers evaluate each security's investment characteristics as a fixed income instrument as well as its potential for capital appreciation. Under normal market conditions, the portfolio managers seek to invest in securities that can participate in the upside of the underlying equity and provide downside protection from the bond.

In addition to gaining "synthetic" exposure to convertible securities through derivatives as outlined above, the fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time. In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may not achieve its investment objective when it does so.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> 42 Virtus Convertible Fund

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**Virtus Duff & Phelps Water Fund**

#### Non-Fundamental Investment Objective:
The fund seeks long-term capital appreciation.

#### Principal Investment Strategies:
The fund seeks to achieve its objective by investing, under normal circumstances, at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that are represented in one or more of the S&P Global Water Index, the NASDAQ OMX US Water or Global Water Indices or the S-Network Global Water Index (Composite), or that are substantially engaged in water-related activities. Water-related activities consist of those commercial activities that relate to the quality or availability of or demand for potable and non-potable water and include, but are not limited to, the following: water production, storage, transport and distribution; water supply-enhancing or water demand-reducing technologies and materials; water planning, control and research; water conditioning, such as filtering, desalination, disinfection and purification; sewage and liquid waste treatment; and water delivery-related equipment and technology, consulting or engineering services relating to any of the above-mentioned activities. The specific activities that the fund may from time to time consider to qualify as "water-related activities" will change as markets, technologies and investment practices develop. See "Summary of Principal Risks—Water-Related Risk" in this Prospectus. The fund's portfolio managers are not constrained by capitalization limitations. In addition, the fund has adopted a fundamental policy to concentrate more than 25% of its total assets in the water-related resources sector. The portfolio managers intend to diversify the fund's investments across geographic regions. Under normal market conditions, the fund will typically invest (i) between 45%-75% of its total assets in U.S. securities, (ii) between 20%-45% of its total assets in European securities, and (iii) up to 25% of its total assets in Asia and other geographies. The fund may invest in emerging market securities. The fund may also purchase securities in initial public offerings (IPOs). The fund's policy of investing 80% of its assets in common stocks and other equity securities of companies that are represented in one or more of the S&P Global Water Index, the NASDAQ OMX US Water or Global Water Indices or the S-Network Global Water Index (Composite), or that are substantially engaged in water-related activities may be changed only upon 60 days' written notice to shareholders.

In making investment decisions for the fund, the portfolio managers select investments on a bottom-up basis irrespective of market capitalization, geography, industry/sector or growth- or value-orientation. In selecting investments for the fund, the portfolio managers may look for several of the following characteristics: higher than average sustainable growth; substantial capacity for growth of revenue and earnings; superior management; alignment to select United Nations Sustainable Development Goals (SDG's) and other comparable societal goals; strong commitment to research and product development; and differentiated or superior product offerings addressing the structural demand drivers.

Companies' Environmental, Social and Corporate Governance ("ESG") practices are also considered as the portfolio managers believe this enhances the investment process.

The fund is "non-diversified," which means that it may invest a significant portion of its assets in a relatively small number of issuers, which may increase risk. Under normal circumstances, the portfolio managers typically select approximately 25 to 50 securities for the fund.

The fund may utilize foreign currency exchange contracts, options and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time. In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may not achieve its investment objective when it does so.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> Virtus Duff & Phelps Water Fund 43

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**Virtus Global Allocation Fund**

#### Non-Fundamental Investment Objectives:
The fund seeks after-inflation capital appreciation and current income.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective through a combination of active allocation across asset classes and actively managed strategies within those asset classes. The fund allocates its investments across asset classes in response to changing market, macroeconomic, and other factors and events that the portfolio managers believe may affect the value of the fund's investments. To gain exposure to different asset classes, the fund incorporates actively managed underlying strategies, both directly through dedicated teams managing separate sleeves of the fund and indirectly through investments in affiliated mutual funds, as well as through passive strategies. Under normal circumstances, the fund invests directly and indirectly in global equity securities, fixed-income securities, and long and short positions using derivatives across multiple asset classes. The fund may also invest in exchange-traded funds ("ETFs"), unaffiliated mutual funds, other pooled vehicles and derivative instruments such as futures, among others. The fund's actively managed underlying strategies incorporate environmental, social and governance ("ESG") factors into the selection of individual securities, and the portfolio managers also consider ESG factors in the construction of the overall portfolio. The fund's allocations to different strategies and instruments are expected to vary over time and from time to time.

The fund's baseline long-term allocation consists of 60% to global equity exposure (the "Equity Component") and 40% to fixed income exposure (the "Fixed Income Component"), which is also the allocation of the blended benchmark index against which the fund's portfolio is managed. The Equity Component can include direct or indirect exposure to equity securities of any market capitalization, any sector and from any country, including emerging markets. The fund expects to invest a significant portion of the Equity Component into Virtus NFJ Global Sustainability Fund, an affiliated mutual fund. The Fixed Income Component primarily consists of direct or indirect exposure to fixed income securities from any sector, of any credit-quality including high yield bonds, from any part of the capital structure including loans, preferred securities and convertibles, denominated in any currency and issued by any country including emerging markets. Separately, the fund will also invest in non-U.S. currencies and take FX positions through derivatives, both long and short.

The portfolio managers may also invest up to 10% of the portfolio in any other asset class that falls outside of the Equity Component and the Fixed-Income Component, which constitute the "Other Component." Examples include, but are not limited to, derivatives on carbon commissions or commodities. Other asset classes or investment grade strategies may be added at the portfolio managers' discretion. The portfolio managers will typically over- or under-weight the fund's portfolio against the baseline long-term allocation, depending on the portfolio managers' view of the relative attractiveness of the investment opportunities available, which will change over time.

Depending on market conditions, the Equity Component may range between approximately 50% and 70% of the fund's assets, the Fixed Income Component is expected to range between approximately 10% and 70% of the fund's assets and the Other Component may range between 0% and 10% of the fund's assets. As a result of its derivative positions, the fund may have gross investment exposures in excess of 100% of its net assets (i.e., the fund may be leveraged) and therefore subject to heightened risk of loss. The fund's performance can depend substantially on the performance of assets or indices underlying its derivatives even though it does not directly or indirectly own those underlying assets or indices.

The portfolio managers adjust the fund's exposure to the Equity Component, the Fixed Income Component, and the Other Component in response to changes in their views based on their analysis of market, macroeconomic and other factors. In conjunction with their asset class analysis the portfolio managers seek to gain exposure to desired asset classes primarily through actively managed underlying strategies that apply ESG factors (including the strategy employed by Virtus NFJ Global Sustainability Fund within the Equity Component) and passive ESG ETFs and futures. They also consider ESG factors in the construction of the overall portfolio. The portfolio managers believe that investing in companies with strong records for managing ESG risks can generate long-term competitive financial returns and positive societal impact.

Within the Fixed Income Component limits described above, the fund intends to make use of an integrated ESG security selection strategy ("U.S. Fixed Income Sleeve") that is managed by a dedicated team of portfolio managers. This strategy focuses on investments in bonds, notes, other debt instruments and preferred securities, including derivatives relating to such investments. The portfolio managers invest in a diversified portfolio of high-quality bonds that generates return primarily through security selection and sector rotation with an investment grade focus. The U.S. Fixed Income Sleeve may also invest in high yield debt (commonly known as "junk bonds"). The strategy is based on bottom-up fundamental credit research, which accounts for the potential financial impact of ESG issues facing corporations and therefore considers ESG factors alongside financial factors in the security selection and overall risk management process. Portfolio managers have the ability to weigh risks relative to market compensation and relative to corporate strategies that seek to address identified ESG concerns.

As a portion of the Equity Component described above, the fund intends to make use of a managed volatility strategy that focuses on investments in globally diverse equity securities, including emerging market equities ("Managed Volatility Sleeve"), and is managed by a dedicated team of portfolio managers. The sleeve's strategy focuses on the overall management of portfolio volatility and favors stocks that demonstrate lower beta. The portfolio managers apply an investment constraint requiring that the weighted average of the combined MSCI "E," "S" and "G" scores of the individual securities within the Managed Volatility Sleeve is higher at the time of purchase than the weighted average of the combined "E," "S" and "G" scores of the securities in the benchmark, the MSCI All Country World Index.The ESG evaluation process incorporates scores based on company sustainability disclosure, government and academic data and media searches, among other sources.

The fund may invest in any type of equity or fixed income security, including common and preferred stocks, warrants and convertible securities, mortgage-backed securities, asset-backed securities and government and corporate bonds. The fund may invest in fixed income securities of any maturity. The fund may invest in securities of companies of any capitalization, including smaller capitalization companies. The fund also may make investments intended to provide exposure to one or more commodities or securities indices, currencies, and real estate-related securities. The fund is expected to be highly diversified across industries, sectors, and countries. The fund may liquidate a holding if it locates another instrument that offers a more attractive exposure to an asset class or when there is a change in the fund's target asset allocation or allocation among dedicated sleeves, or if the instrument is otherwise deemed inappropriate.

<br> 44 Virtus Global Allocation Fund

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In implementing these investment strategies, the fund may make substantial use of over-the-counter (OTC) or exchange-traded derivatives, including futures contracts, interest rate swaps, total return swaps, credit default swaps, options (puts and calls) purchased or sold by the fund, currency forwards, and structured notes. The fund may use derivatives for a variety of purposes, including: as a hedge against adverse changes in the market price of securities, interest rates, or currency exchange rates; as a substitute for purchasing or selling securities; to increase the fund's return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics. When making use of volatility-linked derivatives, the fund will enter into instruments such as variance swaps, volatility futures and similar volatility instruments that reference indexes representing targeted asset classes, such as variance swaps on the S&P 500 Index or on the Euro Stoxx 50 Index. Derivatives positions are eligible to be held in any of the Equity Component, the Fixed Income Component or Other Component of the fund. The fund may maintain a significant percentage of its assets in cash and cash equivalents which will serve as margin or collateral for the fund's obligations under derivative transactions.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> Virtus Global Allocation Fund 45

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**Virtus International Small-Cap Fund**

#### Non-Fundamental Investment Objective:
The fund seeks maximum long-term capital appreciation.

#### Principal Investment Strategies:
The fund seeks to achieve its objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in companies with smaller market capitalizations. The fund currently defines companies with smaller market capitalizations as those with market capitalizations comparable to companies included in the MSCI ACWI ex US Small-Cap Index. Under normal market and other conditions, the fund expects to maintain a weighted-average market capitalization between 50% and 200% of the weighted-average market capitalization of the securities in the MSCI ACWI ex US Small Cap Index, which as of September 30, 2022 would permit the fund to maintain a weighted-average market capitalization ranging from $700 million to $2.9 billion. The fund normally invests principally in securities of issuers located outside the United States and allocates its investments among at least eight different countries. The fund may invest up to 30% of its assets in emerging market securities (but no more than 10% in any one emerging market country). The fund's policy of investing 80% of its assets in companies with smaller market capitalizations may be changed only upon 60 days' written notice to shareholders.

Companies' Environmental, Social and Corporate Governance ("ESG") practices are also considered for purposes of the investment process, based in part using third party globally established ESG rating companies.

Members of the portfolio management team believe that behavioral biases of investors contribute to market inefficiencies. Their quantitative investment process begins with a proprietary investment-return forecasting model which combines behavioral factors (which seek to capitalize on human behavioral biases (i.e., systematic tendencies) from financial analysts, company management and investors), with intrinsic and valuation factors (which are expected to provide tangible measures of a company's true worth). The portfolio managers integrate this multi-factor approach with a proprietary risk model to form the basis of portfolio construction, with constraints at the individual security, country and industry levels to manage exposures relative to the benchmark. Additionally, all investment recommendations are thoroughly vetted on an individual company level to confirm the investment rationale and suitability before a purchase or sale.

In addition to common stocks and other equity securities (such as preferred stocks, convertible securities and warrants), the fund may invest in securities issued in initial public offerings (IPOs), real estate investment trusts ("REITs") and may utilize foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments. The fund typically does not engage in active hedging of currency but retains flexibility to do so depending on market performance. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> 46 Virtus International Small-Cap Fund

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**Virtus Newfleet Short Duration High Income Fund**

#### Non-Fundamental Investment Objectives:
The fund seeks a high level of current income with lower volatility than the broader high yield market.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in debt securities issued by public and private companies, which are rated below investment grade (rated Ba or below by Moody's or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality)(sometimes referred to as "high-yield securities" or "junk bonds"), while maintaining an average duration of less than three years, and in derivatives and other synthetic instruments that have economic characteristics similar to such debt securities. Derivatives transactions may have the effect of either magnifying or limiting the fund's gains and losses. Duration is a measure of the weighted average maturity of cash flows on the bonds held by the fund and can be used by the portfolio managers as a measure of the sensitivity of the market value of the fund's portfolio to changes in interest rates. Generally, the longer the duration of the fund, the more sensitive its market value will be to changes in interest rates. To illustrate the effects of changes in interest rates on a portfolio with a similar average duration, generally, a portfolio with an average duration of three years would be expected to fall approximately 3% if interest rates rose by one percentage point. The fund's policy of investing 80% of its assets in debt securities issued by public and private companies, which are rated below investment grade (rated Ba or below by Moody's or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality)(sometimes referred to as "high-yield securities" or "junk bonds"), while maintaining an average duration of less than three years, and in derivatives and other synthetic instruments that have economic characteristics similar to such debt securities may be changed only upon 60 days' written notice to shareholders.

The fund may invest up to 20% of its assets in bank loans. The fund may invest up to 20% of its assets in non-U.S. securities, which will typically be U.S. dollar-denominated but may also include securities denominated in non-U.S. currencies. The fund will invest less than 10% of its net assets in securities rated CCC or below utilizing the highest rating of any Nationally Recognized Statistical Rating Organization..

The fund invests in high yield securities and bank loans, seeking to generate investment income while protecting from adverse market conditions and prioritizing capital preservation. The portfolio managers apply a disciplined investment approach, making use of fundamental research, to construct a portfolio for investment. The subadviser uses an investment process that focuses on adding value through issue selection, sector/industry selection and opportunistic trading. The fund will generally overweight those sectors and industries where the subadviser identifies well-valued companies whose business profiles are viewed to be improving. In selecting specific debt instruments for investment, the portfolio managers may look to such factors as the issuer's creditworthiness, the investment's yield in relation to its credit quality and the investment's relative value in relation to the high yield market. The portfolio managers seek to construct a portfolio with lower volatility than the broader high yield market in part through the fund's approach to duration and credit quality. The portfolio managers may sell a security for a variety of reasons, such as to invest in a company offering superior investment opportunities.

The fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time. In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may be less likely to achieve its investment objective when it does so.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> Virtus Newfleet Short Duration High Income Fund 47

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**Virtus NFJ Emerging Markets Value Fund**

#### Non-Fundamental Investment Objectives:
The fund seeks long-term capital appreciation.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in equity securities of companies that are domiciled in or tied economically to countries with emerging securities markets—that is, countries with securities markets which are, in the opinion of the portfolio managers, less sophisticated than more developed markets in terms of participation by investors, analyst coverage, liquidity and regulation. Most countries with emerging securities markets are located in Asia, Africa, the Middle East, Latin America and Eastern Europe. The fund may achieve its exposure to non-U.S. equity securities in several ways, including through investing in American Depositary Receipts ("ADRs"), Global Depositary Receipts ("GDRs") and other depositary receipts, in addition to direct investments in the securities of non-U.S. issuers. The fund may invest in exchange traded funds ("ETFs"). The fund's policy of investing 80% of its assets in in equity securities of companies that are domiciled in or tied economically to countries with emerging securities markets may be changed only upon 60 days' written notice to shareholders.

The portfolio managers use a value investing style focusing on companies whose securities the portfolio managers believe have attractive valuation and fundamental strength. The portfolio managers partition the fund's selection universe by industry and then identify what they believe to be the most attractively valued securities in each industry to determine potential holdings for the fund representing a broad range of industry groups. The portfolio managers use initial parameters and quantitative tools to narrow the fund's selection universe and also review and consider fundamental changes. In selecting individual holdings and constructing the overall portfolio, the portfolio managers take into account the dividend yields of their investments. After still further narrowing the universe through a combination of qualitative analysis and fundamental research, the portfolio managers select the securities to be included in the fund's portfolio. The portfolio managers consider selling a security when any of the considerations leading to its purchase materially changes or when a more attractive candidate is identified.

As part of the subadviser's fundamental research, and to the extent consistent with the fund's investment objective and strategies, the subadviser may consider environmental, social and/or governance ("ESG") factors that the subadviser believes may influence a prospective investment's risks and rewards. Any consideration of ESG factors will be within the context of the subadviser's overall investment approach. Evaluation of whether such factors are relevant and financially material to a particular investment opportunity are elements of the subadviser's investment research and decision making processes. Although the specific ESG factors that will be relevant to each investment opportunity will differ, some examples of ESG factors the subadviser believes to be relevant to many investment opportunities are labor/human capital management, corporate governance & quality of management, corporate behavior, product safety & quality, privacy & data security, climate risks, carbon management, and pollution & waste. In evaluating an existing or prospective investment, ESG is just one of many inputs considered by the subadviser when making investment decisions on behalf of the fund. In addition, ESG is not weighted more heavily than other considerations, and the fund could invest in a company even if that company scores poorly when any applicable ESG factors are considered.

In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may be less likely to achieve its investment objective when it does so. In addition to common stocks and other equity securities (such as preferred stocks, convertible securities and warrants), the fund may utilize foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> 48 Virtus NFJ Emerging Markets Value Fund

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**Virtus NFJ Global Sustainability Fund**

#### Non-Fundamental Investment Objective:
The fund seeks long-term capital appreciation.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective by creating a portfolio of global equities with a focus on companies that the portfolio managers believe exhibit strong records with respect to environmental, social, and corporate governance ("ESG") factors. The fund normally invests primarily in equity securities of both U.S. and non-U.S. companies, including emerging market securities. Under normal market conditions, the fund will invest at least 40% of its assets in non-U.S. securities. Notwithstanding the previous sentence, if the weighting of non-U.S. securities in the Dow Jones Sustainability World Index (the "Index") drops below 45%, the fund may invest a lower amount in non-U.S. securities, which will normally be such that the minimum level for non-U.S. securities will be 5% below the weighting of non-U.S. securities in the Index as of the most recently published month-end composition. As of June 30, 2022, the capitalization weighting of non-U.S. securities in the Index was approximately 48.5%. The fund is not managed with reference to the Index, and its primary performance benchmark is the MSCI ACWI. The portfolio managers intend to diversify the fund's investments across geographic regions and economic sectors. The fund intends, but is not required, to hold stocks that are not included in the benchmark index. The fund may invest in issuers of any size market capitalization, including smaller capitalization companies. The fund may achieve its exposure to non-U.S. securities either directly or through depository receipts such as Global Depositary Receipts (GDRs).

The portfolio managers begin with an investment universe comprised of more than 5,000 equity securities and assess individual securities using a disciplined investment process that integrates a focus on the ESG records of the issuers of such securities with proprietary fundamental, company-specific research and quantitative analysis. The portfolio managers utilize a sector analysis to screen out issuers based on revenue from sectors such as tobacco, thermal coal, alcohol, gambling and weapons.

The portfolio managers use a proprietary ESG scoring model to evaluate and rate the securities in the investment universe. Based on this proprietary ESG scoring model, companies' ESG practices and risk factors are considered as part of the investment process, namely for the purposes of identifying tail risk factors (i.e., low probability factors that could have an outsized negative effect on performance) arising from a company's ESG practices and understanding how a company's ESG risk factors might affect the company and its performance. The portfolio managers believe that there are long-term benefits in an investment approach that attaches material weight to certain issues that receive less attention from traditional investment analysis, such as the environment, workplace relations, human rights, community relations, product safety and impact, and corporate governance and business ethics. The portfolio managers also believe that investing in companies with strong records for managing ESG risks can generate long-term competitive financial returns and positive societal impact and that companies that do not exhibit strong records with respect to ESG factors may be at a greater long-term risk of negative economic consequences. With respect to ESG factors, the portfolio managers will aim to invest the majority of the fund's portfolio in stocks that they rate as best-in-class (i.e., NFJ ESG rated AAA, AA, or A) and avoid stocks rated worst-in-class (i.e., NFJ ESG rated B or CCC), although the portfolio managers maintain discretion to invest from time to time in companies with minimum ESG scores and to exclude companies with high ESG scores from the fund's portfolio.

The portfolio managers then analyze specific companies for possible investment through a disciplined, fundamental, bottom up-research process and quantitative analysis. In identifying potential investments, the portfolio managers ordinarily look for companies that exhibit some or all of the following characteristics: a strong record with respect to ESG factors; a demonstrated record of ESG risk management; long-term competitive advantage; a strong balance sheet; high barriers to entry in the company's industry or area of business; and a strong record of capital discipline. The portfolio managers then seek to identify attractively-valued quality companies that exhibit growth characteristics. The portfolio managers construct the fund's portfolio with the expectation that stock-specific risk will drive the fund's returns over a complete market cycle and may reallocate the portfolio's holdings in attempting to mitigate other risk factors, such as currency risk, country/regional risk, investment style risk, and sector risk, among others. Under normal circumstances, the portfolio managers typically select approximately 40 to 60 stocks for the fund.

In connection with the portfolio managers' ESG-related investments, the fund may engage in a variety of activities as a shareholder in certain portfolio companies. These activities are intended to raise issues related to ESG factors with the management of certain portfolio companies and to protect long-term investor interests. The fund's subadviser's actions are also intended to encourage more sustainable governance policies, financial markets and corporate practices in keeping with the fund's focus on issues related to ESG factors. In seeking to accomplish these goals, the fund may engage in active share ownership of its portfolio companies, including by initiating or supporting shareholder resolutions, voting shareholder proxies and engaging in dialogue with the management.

The portfolio managers regularly monitor the ESG ratings of individual holdings, and the risk and return profile of the portfolio, and may consider whether to sell a particular security when any of the above factors materially changes, or when a more attractive investment candidate is available. The fund typically does not seek to hedge its exposure to securities denominated in non-U.S. dollar currencies but retains the flexibility to do so at any time.

The fund may invest in equity-related instruments. Equity-related instruments are securities and other instruments, including derivatives such as equity-linked securities, whose investment results are intended to correspond generally to the performance of one or more specified equity securities or of a specified equity index or analogous "basket" of equity securities.

In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may be less likely to achieve its investment objective when it does so.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

<br> Virtus NFJ Global Sustainability Fund 49

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**Virtus Seix High Yield Income Fund**

#### Non-Fundamental Investment Objective:
The fund seeks a high level of current income and capital growth.

#### Principal Investment Strategies:
The fund seeks to achieve its investment objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in high yield securities ("junk bonds"), which are fixed income securities rated below investment grade (rated Ba or below by Moody's, or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality). The fund's fixed income securities may be fixed-, variable- or floating-rate. The fund invests across the entire range of maturities of high yield securities. The fund's policy of investing 80% of its assets in high yield securities ("junk bonds"), which are fixed income securities rated below investment grade (rated Ba or below by Moody's, or BB or below by S&P or Fitch, or if unrated, determined by the fund's subadviser to be of comparable quality) may be changed only upon 60 days' written notice to shareholders.

The portfolio managers follow a disciplined, fundamental bottom-up research process, which facilitates the early identification of high yield issuers demonstrating an ability to improve their fundamental characteristics. The portfolio managers select issuers that exceed minimum credit statistics and that they believe exhibit high visibility of future expected operating performance. The portfolio managers look for the following in high yield investment candidates: ability to exceed market expectations of operating earnings; the potential for bond rating upgrades; debt reduction capabilities; the ability to secure other sources of capital; and the potential to be recognized as an acquisition candidate. The fundamental research process generally includes: breakdown of a company and its growth by division and region, including revenue model analysis; profit margin analysis; experience and quality of its management; industry dynamics and competitive analysis; distribution channel and supply chain analysis; and macroeconomic climate. The portfolio managers may consider selling a particular security when the portfolio managers perceive a change in credit fundamentals, a decline in relative attractiveness to other issues, and/or a decline in industry fundamentals, or if any of the original reasons for purchase materially changes.

The fund may invest in the securities of issuers of any market capitalization, including smaller capitalization companies. The fund may utilize foreign currency exchange contracts, options, stock index futures contracts, warrants and other derivative instruments. Although the fund did not invest significantly in derivative instruments as of the most recent fiscal year end, it may do so at any time. In response to adverse market, economic, political or other conditions, the fund may deviate from its principal strategies by making temporary investments of some or all of its assets in high-quality fixed income securities, cash and cash equivalents. The fund may not achieve its investment objective when it does so.

*Please see "More Information About Risks Related to Principal Investment Strategies" for information about the risks of investing in the fund. Please refer to "Additional Risks Associated with Investment Techniques and Fund Operations" for other investment techniques of the fund.*

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**More Information About Risks Related to Principal Investment Strategies**

Each fund may not achieve its objective(s), and each fund is not intended to be a complete investment program.

Generally, the value of a fund's investments that supports your share value may decrease. If between the time you purchase shares and the time you sell shares the value of such fund's investments decreases, you will lose money.

Investment values can decrease for a number of reasons. Conditions affecting the overall economy, specific industries or companies in which the fund invests can be worse than expected and investments may fail to perform as the adviser or a subadviser expects. As a result, the value of your shares may decrease.

Specific risks of investing in each fund are identified in the below table and described in detail following the table. The risks are listed in alphabetical order, which is not necessarily indicative of importance. For certain funds, the indicated risks apply indirectly through the fund's investments in other funds.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Risks** | **Virtus Convertible Fund** | **Virtus Duff & Phelps Water Fund** | **Virtus Global Allocation Fund** | **Virtus International Small-Cap Fund** | **Virtus Newfleet Short Duration High Income Fund** | **Virtus NFJ Emerging Markets Value Fund** | **Virtus NFJ Global Sustainability Fund** | **Virtus Seix High Yield Income Fund** |
| Allocation | X |  | X | X |  | X | X |  |
| Bank Loans |  |  |  |  | X |  |  | X |
| China-Related |  |  |  |  |  | X |  |  |
| Commodity and Commodity-linked Instruments Risk |  |  | X |  |  |  |  |  |
| Confidential Information Access |  |  |  |  | X |  |  | X |
| Contingent Convertible Securities | X |  |  |  |  |  |  |  |
| Convertible Securities | X |  | X |  |  |  |  |  |
| Counterparty | X | X | X | X | X | X | X | X |
| Debt Instruments | X |  | X |  | X |  |  | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit | X | X | X | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Rate | X |  | X |  | X |  |  | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayment/Call | X |  | X |  | X |  |  | X |
| Depositary Receipts |  |  |  |  |  | X | X |  |
| Derivatives | X | X | X | X | X | X |  | X |
| Equity Securities | X | X | X | X |  | X | X |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Small and Medium Market Capitalization | X | X | X | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Value Stocks |  |  |  |  |  | X |  |  |
| ESG |  | X | X |  |  |  |  |  |
| ETFs |  |  | X |  |  | X |  |  |
| Focused Investment | X | X | X | X |  | X | X |  |
| Foreign Investing |  | X | X | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency Rate Risk |  | X | X | X | X | X | X |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Emerging Market Risk |  | X | X | X |  | X | X |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign Currency Transactions Risk | X | X | X | X | X | X |  | X |
| &nbsp;&nbsp;&nbsp;&nbsp;Participatory Notes |  |  |  |  |  | X |  |  |
| High Yield Fixed Income Securities (Junk Bonds) | X |  | X |  | X |  |  | X |
| Index |  |  | X |  |  |  |  |  |
| IPO |  | X |  | X |  |  |  |  |
| Issuer | X | X | X | X | X | X | X | X |
| Leverage | X | X | X | X | X | X |  | X |
| Liquidity | X | X | X | X | X | X | X | X |
| Market Volatility | X | X | X | X | X | X | X | X |
| Mortgage-Backed and Asset-Backed Securities |  |  | X |  | X |  |  | X |
| Non-Diversification |  | X |  |  |  |  |  |  |
| Portfolio Turnover | X |  | X |  |  | X |  | X |
| Preferred Stocks |  |  |  |  |  |  |  |  |

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<br> Virtus Mutual Funds 51

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Risks** | **Virtus Convertible Fund** | **Virtus Duff & Phelps Water Fund** | **Virtus Global Allocation Fund** | **Virtus International Small-Cap Fund** | **Virtus Newfleet Short Duration High Income Fund** | **Virtus NFJ Emerging Markets Value Fund** | **Virtus NFJ Global Sustainability Fund** | **Virtus Seix High Yield Income Fund** |
| Real Estate Investment |  |  | X | X |  | X |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity REIT Securities Risk |  |  | X |  | x |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;REIT and REOC Securities Risk. |  |  | X |  |  |  |  |  |
| Redemption Risk | X | X | X | X | X | X | X | X |
| Sustainable Investing |  |  |  |  |  |  | X |  |
| Underlying Funds |  |  | X |  |  |  |  |  |
| Unrated Fixed Income Securities |  |  |  |  | X |  |  | X |
| U.S. Government Securities | X |  |  |  | X |  |  | X |
| Variable Distribution |  |  | X |  | X |  |  | X |
| Water-Related |  | X |  |  |  |  |  |  |

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#### Allocation
A fund's investment performance depends, in part, upon how its assets are allocated and reallocated by its subadviser. If the fund's exposure to equities and fixed income securities, or to other asset classes, deviates from the subadviser's intended allocation, or if the fund's allocation is not optimal for market conditions at a given time, the fund's performance may suffer. To the extent the portfolio managers employ quantitative models, whether proprietary or maintained by third parties, there can be no assurance that such models will behave as expected in all market conditions, including due to deviations between expected and actual relationships among variables. Any imperfections, errors, or limitations in such models could affect a fund's performance. By necessity, such models make simplifying assumptions that limit their effectiveness. In addition, the computer programming used to construct, or the data employed by, quantitative models may contain errors, which may cause losses for the fund or reduce performance. In the event third-party models become increasingly costly or unavailable, the portfolio managers may be forced to rely on proprietary models or to reduce or discontinue their use of quantitative models. The funds are also subject to the risk that deficiencies in the operational systems or controls of the subadviser or another service provider will cause losses for the funds or hinder fund operations. For example, trading delays or errors (both human and systemic) could prevent a fund from purchasing a security expected to appreciate in value. Additionally, legislative, regulatory, or tax developments may affect the investment techniques available to the subadviser and each individual portfolio manager in connection with managing the funds and may also adversely affect the ability of the funds to achieve their investment objectives. To the extent portfolio managers employ strategies that are not correlated to broader markets, or that are intended to seek returns under a variety of market conditions (such as managed volatility strategies), a fund may outperform the general securities market during periods of flat or negative market performance, and underperform the securities market during periods of strong market performance. To the extent that a fund invests significantly in one or more Underlying Funds, its investment performance will depend upon how its assets are allocated and reallocated among particular Underlying Funds and other investments. A fund that invests significantly in one or more Underlying Funds is subject to allocation risk, which is the risk that the subadviser will make less than optimal or poor asset allocation decisions and/or that the subadviser will make less than optimal or poor decisions in selecting the Underlying Funds and other investments in which each fund invests. The subadviser attempts to identify asset classes and sub-classes, and Underlying Funds and/or other means of obtaining exposure to such asset classes, and other investments that will provide consistent, quality performance for each fund, but there is no guarantee that the subadviser's allocation techniques will produce the desired results. It is possible that the subadviser will focus on Underlying Funds and other investments that perform poorly or underperform other available Funds under various market conditions.

You could lose money on your investment in the funds as a result of these allocation decisions.

#### Bank Loans
Investing in loans (including floating rate loans, loan assignments, loan participations and other loan instruments) carries certain risks in addition to the risks typically associated with high-yield/high-risk fixed income securities. Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and sometimes trade infrequently on the secondary market. In the event a borrower defaults, a fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws. There is a risk that the value of the collateral securing the loan may decline after a fund invests and that the collateral may not be sufficient to cover the amount owed to the fund. If the loan is unsecured, there is no specific collateral on which the fund can foreclose. In addition, if a secured loan is foreclosed, a fund may bear the costs and liabilities associated with owning and disposing of the collateral, including the risk that collateral may be difficult to sell.

Transactions in many loans settle on a delayed basis that may take more than seven days. As a result, sale proceeds related to the sale of loans may not be available to make additional investments or to meet the fund's redemption obligations until potentially a substantial period of time after the sale of the loans. No active trading market may exist for some loans, which may impact the ability of the fund to realize full value in the event of the need to liquidate such assets. Adverse market conditions may impair the liquidity of some actively traded loans. Loans also may be subject to restrictions on resale, which can delay the sale and adversely impact the sale price. Difficulty in selling a loan can result in a loss. Loans made to finance highly leveraged corporate acquisitions may be especially vulnerable to adverse changes in economic or market conditions. Certain loans may not be considered "securities," and purchasers, such as a fund, therefore may not be entitled to rely on the strong anti-fraud protections of the federal securities laws. With loan participations, a fund may not be able to control the exercise of any remedies that the lender would have under the loan and likely would not have any rights against the borrower directly, so that delays and expense may be greater than those that would be involved if a fund could enforce its rights directly against the borrower.

#### China-Related Risk
The Chinese economy is generally considered an emerging and volatile market. Although China has experienced a relatively stable political environment in recent years, there is no guarantee that such stability will be maintained in the future. As an emerging market, many factors may affect such stability — such as increasing gaps between the rich and poor or agrarian unrest and instability of existing political structures—and may result in adverse consequences to a fund

<br> 52 Virtus Mutual Funds

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investing in securities and instruments economically tied to China. A small number of companies represent a large portion of the Chinese market as a whole, and prices for securities of these companies may be very sensitive to adverse political, economic, or regulatory developments in China and other Asian countries, and may experience significant losses in such conditions. The value of Chinese currencies may also vary significantly relative to the U.S. dollar, affecting a fund's investments, to the extent the Fund invests in China-related investments.

Historically, China's central government has exercised substantial control over the Chinese economy through administrative regulation, state ownership, the allocation, expropriation or nationalization of resources, by controlling payment of foreign currency-denominated obligations, by setting monetary policy and by providing preferential treatment to particular industries or companies. The emergence of domestic economic demand is still at an early stage, making China's economic health largely dependent upon exports. China's growing trade surplus with the U.S. has increased the risk of trade disputes. For example, recent developments in relations between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade between the two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant reduction in international trade, which could have a negative impact on China's, or others countries', export industry and a commensurately negative impact on a fund that invests in securities and instruments that are economically tied to China. In addition, as China's economic and political strength has grown in recent years, it has shown a greater willingness to assert itself militarily in the region. Military or diplomatic moves to resolve any issues could adversely affect the economies in the region.

Despite economic reforms that have resulted in less direct central and local government control over Chinese businesses, actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. These activities, which may include central planning, partial state ownership of or government actions designed to substantially influence certain Chinese industries, market sectors or particular Chinese companies, may adversely affect the public and private sector companies in which a fund invests. Government actions may also affect the economic prospects for, and the market prices and liquidity of, the securities of Chinese companies and the payments of dividends and interest by Chinese companies. In addition, currency fluctuations, monetary policies, competition, social instability or political unrest may adversely affect economic growth in China. The Chinese economy and Chinese companies may also be adversely affected by regional security threats, as well as adverse developments in Chinese trade policies, or in trade policies toward China by countries that are trading partners with China. The economies, industries, and securities and currency markets of the China region may also be adversely affected by slow economic activity worldwide, dependence on exports and international trade, increasing competition from Asia's other low-cost emerging economies, and environmental events and natural disasters that may occur in China.

In addition, the relationship between China and Taiwan is particularly sensitive, and hostilities between China and Taiwan may present a risk to a fund's investments in China.

#### Commodity and Commodity-Linked Instruments
Investments by a fund in commodities or commodity-linked instruments may subject the fund's portfolio to greater volatility than investments in traditional securities. The value of commodity-linked instruments may be affected by overall market movements, changes in interest rates or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Individual commodity prices can fluctuate widely over short time periods. Commodity investments typically do not have dividends or income and are dependent on price movements to generate returns. Commodity price movements can deviate from equity and fixed income price movements. The means by which a fund seeks exposure to commodities, both directly and indirectly through derivatives, may be limited by the fund's intention to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended. A fund's investments in commodity-linked derivative instruments may subject the fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

#### Confidential Information Access Risk
In managing funds that may invest in privately placed instruments, NFJ (the "Subadviser") normally will seek to avoid the receipt by the portfolio managers and analysts of material, non-public information ("Confidential Information") about the issuers of such instruments (which may include senior loans, other bank loans and related investments), because such issuers may have or later issue publicly traded securities. In many instances, issuers offer to furnish Confidential Information to prospective purchasers or holders of the issuer's loans. In circumstances when the Subadviser's portfolio managers and analysts do not receive Confidential Information from these issuers, a fund may be disadvantaged in comparison to other bank loan investors, including with respect to the price the fund pays or receives when it buys or sells a bank loan. Further, in situations when a fund is asked, for example, to grant consents, waivers or amendments with respect to bank loans, the Subadviser's ability to assess the desirability of such consents, waivers and amendments may be compromised. For these and other reasons, it is possible that the Subadviser's decision not to receive Confidential Information under normal circumstances could adversely affect a fund's investment performance.

Notwithstanding its intention not to receive Confidential Information with respect to its management of investments in loans and privately placed instruments generally, the Subadviser may from time to time come into possession of confidential information about issuers whose securities may be held in a fund's portfolio. Possession of such information may in some instances occur despite the Subadviser's efforts to avoid such possession, but in other instances the Subadviser may choose to receive such information (for example, in connection with participation in a creditors' committee with respect to a financially distressed issuer). As, and to the extent, required by applicable law, the Subadviser's ability to trade in these securities for the account of a fund could potentially be limited by its possession of such information.

Such limitation on the Subadviser's ability to trade could have an adverse effect on a fund by, for example, preventing the fund from selling a loan that is experiencing a material decline in value. In some instances, these trading restrictions could continue in effect for a substantial period of time.

#### Contingent Convertible Securities Risk
Contingent convertible securities ("CoCos") have no stated maturity, have fully discretionary coupons and are typically issued in the form of subordinated debt instruments. CoCos generally either convert into equity or have their principal written down upon the occurrence of certain triggering events ("triggers") linked to regulatory capital thresholds or regulatory actions relating to the issuer's continued viability. As a result, an investment by a fund in CoCos is subject to the risk that coupon (i.e., interest) payments may be cancelled by the issuer or a regulatory authority in order to help the issuer absorb losses. An investment by a fund in

<br> Virtus Mutual Funds 53

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CoCos is also subject to the risk that, in the event of the liquidation, dissolution or winding-up of an issuer prior to a trigger event, the fund's rights and claims will generally rank junior to the claims of holders of the issuer's other debt obligations. In addition, if CoCos held by a fund are converted into the issuer's underlying equity securities following a trigger event, the fund's holding may be further subordinated due to the conversion from a debt to equity instrument. As CoCos may be perpetual or have long-dated maturities, they may face greater interest rate sensitivity and may be subject to greater fluctuations in value than securities with shorter maturity dates. Such securities also may be subject to prepayment risk due to optional or mandatory redemption provisions. Further, the value of an investment in CoCos is unpredictable and will be influenced by many factors and risks, including interest rate risk, credit risk, market risk and liquidity risk. An investment by a fund in CoCos may result in losses to the fund.

#### Convertible Securities
Convertible securities are bonds, debentures, notes, preferred stock, rights, warrants or other securities that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or a different issuer or into cash within a particular period of time at a specified price or formula. A convertible security generally entitles the holder to receive interest paid or accrued on debt instruments or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. If a convertible security is called for redemption, the respective fund may have to redeem the security, convert it into common stock or sell it to a third party at a price and time that is not beneficial for the fund. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying securities. The funds may also invest in synthetic convertible securities, which involve the combination of separate securities that possess the two principal characteristics of a traditional convertible security (i.e., an income-producing component and a right to acquire an equity security). Synthetic convertible securities are often achieved, in part, through investments in warrants or options to buy common stock (or options on a stock index), and therefore are subject to the risks associated with derivatives. Securities convertible into common stocks may have higher yields than common stocks but lower yields than comparable nonconvertible securities.

#### Counterparty Risk
A fund is also subject to the risk that a counterparty to a derivatives contract, repurchase agreement, a loan of portfolio securities or an unsettled transaction may be unable or unwilling to make timely settlement payments or otherwise honor its obligations to the fund. If a counterparty fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, the fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for the fund. In addition, transactions in some types of swaps (including interest rate swaps and credit default swaps on North American and European indices) are required to be centrally cleared ("cleared swaps"). For over-the-counter swaps, there is a risk that the other party to certain of these instruments will not perform its obligations to the funds or that a fund may be unable to enter into offsetting positions to terminate its exposure or liquidate its position under certain of these instruments when it wishes to do so. Such occurrences could result in losses to such fund. For cleared swaps, a fund's counterparty is a clearinghouse rather than a bank or broker. In cleared swaps, such fund makes payments (including margin payments) to and receives payments from a clearinghouse through its account at clearing members. Clearing members guarantee performance of their clients' obligations to the clearinghouse. Counterparty risk may be pronounced during unusually adverse market conditions and may be particularly acute in environments in which financial services firms are exposed to systemic risks of the type evidenced by the 2008 insolvency of Lehman Brothers and subsequent market disruptions. See "Derivatives Risk" below.

#### Debt Instruments
Debt instruments are subject to various risks, the most prominent of which are credit risk and interest rate risk. These risks can affect an instrument's price volatility to varying degrees, depending upon the nature of the instrument. Risks associated with investing in debt instruments include the following:

 ***Credit Risk.*** There is a risk that the issuer of a security will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer's ability to make such payments will cause the price of the security to decline. Securities are subject to varying degrees of credit risk, which are often reflected in their credit ratings and a fund holding a fixed income security is subject to the risk that the security's credit rating will be downgraded. Securities issued by the U.S. Treasury historically have presented minimal credit risk. However, at least one major rating agency downgraded the long-term U.S. credit rating in 2011 due to the rising public debt burden and perception of greater policymaking uncertainty in the U.S. and have introduced greater uncertainty about the ability of the U.S. to repay its obligations. A further credit rating downgrade or a U.S. credit default could decrease the value and increase the volatility of the fund's investments, to the extent that the fund has exposure to securities issued by the U.S. Treasury. Debt instruments rated below investment-grade are especially susceptible to this risk.

 ***Interest Rate Risk.*** The values of debt instruments usually rise and fall in response to changes in interest rates. Declining interest rates generally increase the value of existing debt instruments, and rising interest rates generally decrease the value of existing debt instruments. Changes in a debt instrument's value usually will not affect the amount of interest income paid to a fund, but will affect the value of the fund's shares. Interest rate risk is generally greater for investments with longer maturities. It is difficult to predict the pace at which central banks or monetary authorities may change interest rates or the timing, frequency, or magnitude of such changes. Any such changes could be sudden and could expose debt markets to significant volatility and reduced liquidity for investments.

Certain instruments pay interest at variable or floating rates. Variable rate instruments reset at specified intervals, while floating rate instruments reset whenever there is a change in a specified index rate. In most cases, these reset provisions reduce the effect of changes in market interest rates on the value of the instrument. However, some instruments do not track the underlying index directly, but reset based on formulas that can produce an effect similar to leveraging; others may also provide for interest payments that vary inversely with market rates. The market prices of these instruments may fluctuate significantly when interest rates change.

To the extent that a fund effectively has short positions with respect to fixed income instruments, the values of such short positions would generally be expected to rise when nominal interest rates rise and to decline when nominal interest rates decline. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate.

Some investments give the issuer the option to call or redeem an investment before its maturity date. If an issuer calls or redeems an investment during a time of declining interest rates, a fund might have to reinvest the proceeds in an investment offering a lower yield, and therefore it might not benefit from any increase in value as a result of declining interest rates.

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 ***Limited Voting Rights Risk.*** Debt instruments typically do not provide any voting rights, except in cases when interest payments have not been made and the issuer is in default.

 ***Liquidity Risk.*** Certain debt instruments may be substantially less liquid than many other securities, such as U.S. Government securities or common stocks. Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing a fund from purchasing or selling such illiquid securities at an advantageous time or price, or possibly requiring a fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations or possibly delaying the redemption of fund shares. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, non-U.S. securities, Rule 144A securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Additionally, the market for certain investments may become illiquid or less liquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. Illiquidity can be caused by, among other things, a drop in overall market trading volume, an inability to find a willing buyer, or legal restrictions on the securities' resale.

The SEC has adopted Rule 22e-4 under the 1940 Act, which requires each fund to adopt a liquidity risk management program to assess and manage its liquidity risk. Under its program, a fund will be required to classify its investments into specific liquidity categories and monitor compliance with limits on investments in illiquid securities. The funds do not expect Rule 22e-4 to have a significant effect on investment operations. While the liquidity risk management program attempts to assess and manage liquidity risk, there is no guarantee it will be effective in its operations and may not reduce the liquidity risk inherent in a fund's investments.

 ***Long-Term Maturities/Durations Risk.*** Fixed income instruments with longer maturities or durations may be subject to greater price fluctuations due to interest rate, tax law, and general market changes than instruments with shorter maturities or durations.

 ***Prepayment/Call Risk.*** There is a risk that issuers will prepay fixed rate obligations when interest rates fall. A fund holding callable instruments therefore may be forced to reinvest in obligations with lower interest rates than the original obligations and otherwise may not benefit fully from the increase in value that other fixed income investments experience when rates decline.

 ***Redemption Risk.*** Debt instruments sometimes contain provisions that allow for redemption in the event of tax or security law changes, in addition to call features at the option of the issuer. In the event of a redemption, a fund may not be able to reinvest the proceeds at comparable rates of return.

#### Depositary Receipts
Certain funds may invest in American Depositary Receipts (ADRs) sponsored by U.S. banks, European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs), ADRs not sponsored by U.S. banks, other types of depositary receipts (including non-voting depositary receipts), and other similar instruments representing securities of foreign companies. The issuers of Depositary Receipts may discontinue issuing new Depositary Receipts and withdraw existing Depositary Receipts at any time, which may result in costs and delays in the distribution of the underlying assets to the fund and may negatively impact the fund's performance.

Although certain depositary receipts may reduce or eliminate some of the risks associated with foreign investing, these types of securities generally are subject to many of the same risks as direct investment in securities of foreign issuers.

#### Derivatives
Derivative transactions are contracts whose value is derived from the value of an underlying asset, index or rate, including futures, options, non-deliverable forwards, foreign currency forward contracts and swap agreements. A fund may use derivatives to hedge against factors that affect the value of its investments, such as interest rates and foreign currency exchange rates. A fund may also utilize derivatives as part of its overall investment technique to gain or lessen exposure to various securities, markets, volatility, dividend payments and currencies.

Derivatives typically involve greater risks than traditional investments. It is generally more difficult to ascertain the risk of, and to properly value, derivative contracts. Many derivatives, and particularly those that are privately negotiated, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the fund. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Derivatives are usually less liquid than traditional securities and are subject to counterparty risk (the risk that the other party to the contract will default or otherwise not be able to perform its contractual obligations). In addition, some derivatives transactions may involve potentially unlimited losses.

As a seller of a credit default swap, a fund effectively adds economic leverage to its portfolio because, in addition to its total net assets, the fund is subject to investment exposure on the notional amount of the swap. Additionally, holding a position in a credit default swap could result in losses if the fund does not correctly evaluate the creditworthiness of the company on which the credit default swap is based. To the extent a fund writes call options on individual securities that it does not hold in its portfolio (i.e., "naked" call options), it is subject to the risk that a liquid market for the underlying security may not exist at the time an option is exercised or when the fund otherwise seeks to close out an option position. Naked call options have speculative characteristics and the potential for unlimited loss.

Derivative contracts entered into for hedging purposes may also subject a fund to losses if the contracts do not correlate with the assets, indexes or rates they were designed to hedge. In regard to currency hedging using forward contracts, it is generally not possible to precisely match the foreign currency exposure of such foreign currency forward contracts to the value of the securities involved due to fluctuations in the market values of such securities and cash flows into and out of the fund between the date a foreign currency forward contract is entered into and the date it expires.

Governments, agencies and/or other regulatory bodies may adopt or change laws or regulations that could adversely affect a fund's ability to invest in derivatives as the fund's subadviser intends. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), among other things, grants the Commodity Futures Trading Commission (the "CFTC") and SEC broad rulemaking authority to implement various provisions of the Dodd-Frank Act including comprehensive regulation of the over-the-counter ("OTC") derivatives market. The implementation of the Dodd-Frank Act could adversely affect a fund by placing limits on derivative transactions, and/or increasing transaction and/or regulatory compliance costs. For example, the CFTC has adopted rules that apply a new aggregation standard for position limit purposes, which may further limit a fund's ability to trade futures contracts and swaps.

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There are also special tax rules applicable to certain types of derivatives, which could affect the amount, timing and character of a fund's income or loss and hence of its distributions to shareholders by causing holding period adjustments, converting short-term capital losses into long-term capital losses, and accelerating a fund's income or deferring its losses.

Under recently adopted rules and regulations, transactions in some types of swaps (including interest rate swaps and credit default swaps on North American and European indices) are required to be centrally cleared. In a cleared derivatives transaction, a fund's counterparty is a clearing house, rather than a bank or broker. Since the funds are not members of clearing houses and only members of a clearing house can participate directly in the clearing house, the funds will hold cleared derivatives through accounts at clearing members. In cleared derivatives transactions, the funds will make payments (including margin payments) to and receive payments from a clearing house through their accounts at clearing members. Clearing members guarantee performance of their clients' obligations to the clearing house.

Centrally cleared derivative arrangements may be less favorable to mutual funds than bilateral arrangements. For example, the funds may be required to provide greater amounts of margin for cleared derivatives transactions than for bilateral derivatives transactions. Also, in contrast to bilateral derivatives transactions, following a period of notice to a fund, a clearing member generally can require termination of existing cleared derivatives transactions at any time or increases in margin requirements above the margin that the clearing member required at the beginning of a transaction. Clearing houses also have broad rights to increase margin requirements for existing transactions or to terminate transactions at any time. In addition, derivatives that are centrally cleared are subject to the credit risk of the clearing house and the member of the clearing house through which a fund holds its cleared position. If a fund's counterparty or the relevant clearing house or clearing member were to default, the fund could lose a portion or all of the collateral held by the counterparty, clearing house, or clearing member on its behalf, or could suffer extended delays in recovering that collateral.

A fund's use of derivatives may also increase the amount of taxes payable by shareholders or the resources required by the fund or its adviser and/or subadviser(s) to comply with particular regulatory requirements.

#### Equity Securities
Generally, prices of equity securities are more volatile than those of fixed income securities. Equity securities may take the form of shares of common stock of a corporation, membership interests in a limited liability company, limited partnership interests, or other forms of ownership interests. Equity securities also include, among other things, preferred stocks, convertible securities and warrants. The prices of equity securities will rise and fall in response to a number of different factors. In particular, equity securities will respond to events that affect entire financial markets or industries (such as changes in inflation or consumer demand) and to events that affect particular issuers (such as news about the success or failure of a new product). Equity securities also are subject to "stock market risk," meaning that stock prices in general may decline over short or extended periods of time. When the value of the stocks held by the fund goes down, the value of the fund's shares will be affected. Dividend paying companies may underperform companies without a history of paying dividends. In addition, because a company's equity securities rank junior in priority to the interests of bond holders and other creditors, a company's equity securities will usually react more strongly than its bonds and other debt to actual or perceived changes in the company's financial condition or prospects. Risks associated with investing in equity securities include the following:

 ***Small and Medium Market Capitalization Companies Risk.*** Small and medium-sized companies often have narrower markets, fewer products or services to offer, and more limited managerial and financial resources than larger, more established companies. As a result, the performance of small and medium-sized companies may be more volatile, and they may face a greater risk of business failure, which could increase the volatility and risk of loss to the fund.

 ***Value Stocks Risk.*** A company may be undervalued due to market or economic conditions, temporary earnings declines, unfavorable developments affecting the company and other factors, or because it is associated with a market sector that generally is out of favor with investors. Undervalued stocks tend to be inexpensive relative to their earnings or assets compared to other types of stock. However, these stocks can continue to be inexpensive for long periods of time and may not realize their full economic value.

#### ESG
A fund's consideration of ESG factors could cause it to perform differently compared to funds that do not use such considerations. A fund's consideration of ESG factors could cause it to perform differently compared to funds that do not use such considerations. The relevance and weightings of specific ESG factors may vary across asset classes, sectors and strategies and no one factor is determinative. ESG factors are qualitative and subjective by nature and there are significant differences in interpretations of what it means for a company to have positive or negative ESG factors. There is no guarantee that the factors utilized by a fund's subadviser or any judgment exercised by the subadviser will reflect the opinions of any particular investor, and the factors analyzed by the subadviser may differ from the factors any particular investor considers relevant in evaluating ESG practices. When integrating ESG factors into the investment process, the subadviser may rely on third-party data that it believes to be reliable, but it does not guarantee the accuracy of such third-party data. ESG information from third-party data providers may be incomplete, inaccurate or unavailable, which may adversely impact the investment process. Moreover, the current lack of common standards may result in different approaches to integrating ESG factors. As a result, the funds may invest in companies that do not reflect the beliefs and values of any particular investor.

The ESG factors that may be evaluated as part of a fund's investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. Further, the regulatory landscape with respect to ESG integration in the United States is still developing and future rules and regulations may require a fund to modify or alter its investment process with respect to ESG integration.

#### Exchange-Traded Funds (ETFs)
ETFs invest in a portfolio of securities designed to track a particular market segment or index. The risks associated with investing in ETFs generally reflect the risks of owning shares of the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities. Assets invested in ETFs incur a layering of expenses, including operating costs and advisory fees that fund shareholders indirectly bear; such expenses may exceed the expenses the fund would incur if it invested directly in the underlying portfolio of securities the ETF is designed to track. Shares of ETFs trade on a securities exchange and may trade at, above, or below their net asset value. The extent to which the investment

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performance and risks associated with a fund correlate to those of a particular ETF will depend upon the extent to which the portfolio's assets are allocated from time to time for investment in the ETF, which will vary.

#### Focused Investments
Focusing fund investments in a small number of issuers, industries, foreign currencies or regions increases risk. Funds that are "non-diversified" because they may invest a significant portion of their assets in a relatively small number of issuers may have more risk because changes in the value of a single security or the impact of a single economic, political or regulatory occurrence may have a greater adverse impact on the fund's NAV. Similarly, certain underlying bond funds may have more risk because they may invest a substantial portion of their assets in bonds of similar projects or from issuers of the same status. Some of those issuers also may present substantial credit or other risks. Diversified funds that invest in a relatively small number of issuers are subject to similar risks. In addition, the funds may be subject to increased risk to the extent they focus their investments in securities denominated in a particular foreign currency or in a narrowly defined geographic area, for example, regional economic risks relating to weather emergencies and natural disasters. Similarly, a fund that focuses its investments in a certain type of issuer is particularly vulnerable to events affecting such type of issuer. Also, a fund may have greater risk to the extent it invests a substantial portion of its assets in a group of related industries (or "sectors"). The industries comprising any particular sector and investments in a particular foreign currency or in a narrowly defined geographic area outside the United States may share common characteristics, are often subject to similar business risks and regulatory burdens, and react similarly to economic, market, political or other developments. Funds may be subject to increased risk to the extent they allocate assets among investment styles and certain styles underperform relative to other investment styles. Furthermore, certain issuers, industries and regions may be adversely affected by the impacts of climate change on the demand for and the development of goods and services and related production costs, and the impacts of legislation, regulation and international accords related to climate change, as well as any indirect consequences of regulation or business trends driven by climate change. Funds that focus investments of their assets in a particular industry or group of related industries are subject, and have heightened exposure, to the risks factors particular to each such industry as described below and under "Additional Risks Associated with Investment Techniques and Fund Operations— Industry Focus."

As discussed below, certain Underlying Funds may have more risk because they have a particular geographic or sector focus. An Underlying Fund that holds or obtains exposure to a particular geography, such as Europe or the Far East, may be affected by economic, regulatory or political developments affecting issuers in that geography. Similarly, Underlying Funds that focus their investments in companies that have exposure, directly or indirectly, to a particular sector, such as the eco-sectors or water-related sectors, will be impacted more by events or factors affecting those sectors than if their portfolios were more diversified among a number of unrelated sectors and industries.

To the extent that a fund concentrates a significant portion of its assets in a single Underlying Fund, it will be particularly sensitive to the risks associated with that Underlying Fund and any investments in which that Underlying Fund concentrates. See "Underlying Fund Risks" below.

#### Foreign Investing
Investing in securities of non-U.S. companies involves special risks and considerations not typically associated with investing in U.S. companies, and the values of non-U.S. securities may be more volatile than those of U.S. securities. The values of non-U.S. securities are subject to economic, geopolitical, and political developments in countries and regions where the issuers operate or are domiciled, or where the securities are traded, such as changes in economic or monetary policies, and to changes in currency exchange rates. Values may also be affected by restrictions on receiving the investment proceeds from a non-U.S. country. In the event of nationalization, expropriation or other confiscation, a fund could lose its entire investment in non-U.S. securities.

In general, less information is publicly available about non-U.S. companies than about U.S. companies. Non-U.S. companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition , a fund's investments in non-U.S. securities may be subject to withholding and other taxes imposed by countries outside the U.S., which could reduce the return on an investment in a fund. Certain foreign issuers classified as passive foreign investment companies may be subject to additional taxation risk. Risks associated with foreign investing include the following:

 ***Currency Rate Risk.*** Because the foreign securities in which a fund invests generally trade in currencies other than the U.S. dollar, changes in currency exchange rates will affect the fund's net asset value, the value of dividends and interest earned, and gains and losses realized on the sale of securities. Currency rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or non-U.S. governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. Because the value of each fund's shares is calculated in U.S. dollars, it is possible for a fund to lose money by investing in a foreign security if the local currency of a foreign market depreciates against the U.S. dollar, even if the local currency value of the fund's holdings goes up. Generally, a strong U.S. dollar relative to such other currencies will adversely affect the value of the fund's holdings in foreign securities. The local emerging market currencies in which a fund may be invested from time to time may experience substantially greater volatility against the U.S. dollar than the major convertible currencies of developed countries.

 ***Emerging Market Risk.*** The risks of foreign investments are generally greater in countries whose markets are still developing than they are in more developed markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the actions of a few large investors. They may also have policies that restrict investment by foreigners, or that prevent foreign investors from withdrawing their money at will. Certain emerging markets may also face other significant internal or external risks, including the imposition of sanctions and risk of war and civil unrest. Emerging market securities may have different clearance and settlement procedures, which may be unable to keep pace with the volume of securities transactions or otherwise make it difficult to engage in such transactions. Settlement problems may cause a fund to miss attractive investment opportunities, hold a portion of its assets in cash pending investment, or be delayed in disposing of a portfolio security, all of which would negatively affect the fund's performance.

Funds may also be subject to Emerging Markets Risk if they invest in derivatives or other securities or instruments whose value or returns are related to the value or returns of emerging market securities.

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The funds may invest in some emerging markets through trading structures or protocols that subject them to risks such as those associated with illiquidity, custodying assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets. For example, some of the funds may invest in certain eligible Chinese securities ("China A Shares") listed and traded on either the Shanghai Stock Exchange ("SSE") or the Shenzhen Stock Exchange ("SZSE"). Such funds expect to access China A Shares through the Shanghai-Hong Kong Stock Connect Program or the Shenzhen-Hong Kong Stock Connect Program (each, a "Stock Connect"). The Shanghai Stock Connect is a securities trading and clearing program developed by the Hong Kong Stock Exchange ("SEHK"), SSE, Hong Kong Securities Clearing Company Limited and China Securities Depository and Clearing Corporation Limited for the establishment of mutual market access between SEHK and SSE that commenced operations in November 2014. The Shenzhen Stock Connect subsequently commenced operations in December 2016. The Stock Connect programs are subject to regulations promulgated by regulatory authorities for both SSE, SZSE and SEHK, as applicable, and further regulations or restrictions, such as trading suspensions, may adversely affect the Stock Connects and the value of the China A Shares held by the funds. There is no guarantee that the systems required to operate each Stock Connect will function properly or will continue to be adapted to changes and developments in the applicable markets or that the relevant exchanges will continue to support the Stock Connects in the future. In the event that the relevant systems do not function properly, trading through a Stock Connect program could be disrupted. While Stock Connect is not subject to individual investment quotas, daily and aggregate investment quotas apply to the aggregate volume on each Stock Connect, which may restrict or preclude a fund's ability to invest in Stock Connect securities or to enter into or exit trades on a timely basis. In addition, Stock Connect securities generally may not be sold, purchased or otherwise transferred other than through Stock Connect in accordance with each program's rules, which may further subject the funds to liquidity risk with respect to China A Shares. A fund may be restricted in its ability to dispose of its China A Shares purchased through a Stock Connect in a timely manner. As an example, the Shanghai Stock Connect is generally available only on business days when both the SEHK and SSE are open. When either the SEHK or SSE is closed, a fund will not be able to trade Stock Connect securities at a time that may otherwise be beneficial to trade. Additionally, the SSE or SZSE may be open at a time when the Stock Connect program is not trading, with the result that prices of China A Shares may fluctuate at times when a fund is unable to add to or exit its position. Because of the way in which China A Shares are held in Stock Connect, a fund may not be able to exercise the rights of a shareholder and may be limited in its ability to pursue claims against the issuer of a security, and may suffer losses in the event the depository of the SSE or SZSE becomes insolvent. Only certain China A Shares are eligible to be accessed through the Stock Connect program. Such securities may lose their eligibility at any time, in which case they presumably could be sold but could no longer be purchased through the Stock Connect program. Because the Stock Connect program is new, the actual effect on the market for trading China A Shares with the introduction of large numbers of foreign investors is unknown. Investments in China A Shares may not be covered by the securities investor protection programs of either exchange and, without the protection of such programs, will be subject to the risk of default by the broker. The limitations and risks described above with respect to each Stock Connect are specific to the applicable program; however, these and other risks may exist to varying degrees in connection with the funds' investments through other trading structures, protocols and platforms in other emerging markets.

Chinese operating companies sometimes rely on variable interest entity ("VIE") structures to raise capital from non-Chinese investors because of Chinese government limitations or prohibitions on direct foreign ownership in certain industries. In a VIE structure, a series of contractual arrangements are entered into between a holding company domiciled outside of China and a Chinese operating company or companies, which are intended to mimic direct ownership in the operating company, but in many cases these arrangements have not been tested in court and it is not clear that the contracts are enforceable or that the structures will otherwise work as intended. The offshore holding company, which is not a Chinese operating company, then issues exchange-traded shares that are sold to the public, including non-Chinese investors (such as the Fund). Shares of the offshore entity purchased by the Fund would not be equity ownership interests in the Chinese operating company and the Fund's interest would be subject to legal, operational and other risks associated with the company's use of the VIE structure. For example, at any time the Chinese government could determine that the contractual arrangements constituting part of the VIE structure are unenforceable or do not comply with applicable law or regulations, these laws or regulations could change or be interpreted differently in the future, and the Chinese government may with no advance notice otherwise intervene in or exert influence over VIE structures or the related Chinese operating companies. If any of these or similar risks or developments materialize, the Fund's investment in the offshore entity may suddenly and significantly decline in value or become worthless because of, among other things, difficulty enforcing (or the inability to enforce) the contractual arrangements or materially adverse effects on the Chinse operating company's performance. In these circumstances, the Fund could experience significant losses with no recourse available. From time to time, the Fund's investments in U.S.-listed shell companies relying on VIE structures to consolidate China-based operations could be significant.

For all of these reasons, investments in emerging markets may be considered speculative. To the extent that a fund invests a significant portion of its assets in a particular emerging market, the fund will be more vulnerable to financial, economic, political and other developments in that country, and conditions that negatively impact that country will have a greater impact on the fund as compared with a fund that does not have its holdings concentrated in a particular country.

 ***Foreign Currency Transactions Risk.*** A fund may engage in foreign currency transactions, including foreign currency forward contracts, options, swaps and other similar strategic transactions. These transactions may be for the purposes of hedging or efficient portfolio management, or may be for investment purposes, and they may be exchange traded or traded directly with market counterparties. Such transactions may not prove successful or may have the effect of limiting gains from favorable markets movements.

A fund may use derivatives to acquire positions in various currencies, which presents the risk that the fund could lose money on its exposure to a particular currency and also lose money on the derivative. A fund also may take positions in currencies that do not correlate to the currency exposure presented by the fund's other investments. As a result, the fund's currency exposure may differ, in some cases significantly, from the currency exposure of its other investments and/or its benchmarks.

 ***Participatory Notes Risk.*** A fund may invest in P-Notes, to seek to gain economic exposure to markets where holding an underlying security is not feasible. P-Notes are participation interest notes that are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying equity, debt, currency or market. When purchasing a P-Note, the posting of margin is not required because the full cost of the P-Note (plus commission) is paid at the time of purchase. When the P-Note matures, the issuer will pay to, or receive from, the purchaser the difference between the minimal value of the underlying instrument at the time of purchase and that instrument's value at maturity. Investments in P-Notes involve the same

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risks associated with a direct investment in the underlying foreign companies or foreign securities markets that they seek to replicate. In addition, there can be no assurance that the trading price of P-Notes will equal the underlying value of the foreign companies or foreign securities markets that they seek to replicate. The holder of a P-Note that is linked to a particular underlying security is entitled to receive any dividends paid in connection with an underlying security or instrument. However, the holder of a P-Note does not receive the same voting rights as it would if it directly owned the underlying security or instrument. P-Notes are generally traded over-the-counter. P-Notes constitute general unsecured contractual obligations of the banks or broker-dealers that issue them. There is also counterparty risk associated with these investments because the fund is relying on the creditworthiness of such counterparty and has no rights under a P-Note against the issuer of the underlying security. In addition, the fund will incur transaction costs as a result of investment in P-Notes.

#### High-Yield Fixed Income Securities (Junk Bonds)
Securities rated below the four highest rating categories of a nationally recognized statistical rating organization, may be known as "high-yield" securities and commonly referred to as "junk bonds." The highest of the ratings among these nationally recognized statistical rating organizations is used to determine the security's classification. Such securities entail greater price volatility and credit and interest rate risk than investment-grade securities. Analysis of the creditworthiness of high-yield issuers is more complex than for higher-rated securities, making it more difficult for a fund's subadviser to accurately predict risk. There is a greater risk with high-yield fixed income securities that an issuer will not be able to make principal and interest payments when due. If the fund pursues missed payments, there is a risk that fund expenses could increase. In addition, lower-rated securities may not trade as often and may be less liquid than higher-rated securities, especially during periods of economic uncertainty or change. As a result of all of these factors, these bonds are generally considered to be speculative. In recent years, there has been a broad trend of weaker or less restrictive covenant protections in the high yield market. Among other things, under such weaker or less restrictive covenants, borrowers might be able to exercise more flexibility with respect to certain activities than borrowers who are subject to stronger or more protective covenants. For example, borrowers might be able to incur more debt, including secured debt, return more capital to shareholders, remove or reduce assets that are designated as collateral securing high yield securities, increase the claims against assets that are permitted against collateral securing high yield securities or otherwise manage their business in ways that could impact creditors negatively. In addition, certain privately held borrowers might be permitted to file less frequent, less detailed or less timely financial reporting or other information, which could negatively impact the value of the high yield securities issued by such borrowers. Each of these factors might negatively impact the high yield instruments held by a fund.

#### Index
Investments in index-linked derivatives are subject to the risks associated with the applicable index and may include factors such as flows, transaction costs, and timing differences associated with additions to and deletions from the index.

#### Initial Public Offerings (IPOs)
A fund may acquire common and preferred stock of issuers in an IPO. Investment returns from IPOs may be highly volatile and subject to varying patterns of trading volume, and these securities may at times be difficult to sell. In addition, information about the issuers of IPO securities is often difficult to obtain since they are new to the market and may not have lengthy operating histories. From time to time, a fund may purchase stock in an IPO and then immediately sell the stock. This practice will increase portfolio turnover rates and increase costs to the fund, affect fund performance, and may increase capital gain distributions, resulting in greater tax liability to the fund's shareholders. At any particular time or from time to time, a fund may not be able to invest in securities issued in IPOs, or invest to the extent desired, because, for example, only a small portion (if any) of the securities being offered in an IPO may be made available to the fund. In addition, under certain market conditions, a relatively small number of companies may issue securities in IPOs. Similarly, as the number of funds to which IPO securities are allocated increases, the number of securities issued to any one fund may decrease. The investment performance of a fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the fund is able to do so. In addition, as a fund increases in size, the impact of IPOs on the fund's performance will generally decrease.

#### Issuer
The value of a security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services as well as the historical and prospective earnings of the issuer and the value of its assets.

#### Leverage
When a fund makes investments in futures contracts, forward contracts, swaps and other derivative instruments, the futures contracts, forward contracts, swaps and certain other derivatives provide the economic effect of financial leverage by creating additional investment exposure, as well as the potential for greater loss. When a fund uses leverage through activities such as borrowing, entering into short sales, purchasing securities on margin or on a when-issued basis, or purchasing derivative instruments in an effort to increase its returns, the fund has the risk of magnified capital losses that occur when losses affect an asset base, enlarged by borrowings or the creation of liabilities, that exceeds the net assets of the fund. The value of the shares of a fund employing leverage will be more volatile and sensitive to market movements. The use of leverage may cause a fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Certain types of leveraging transactions, such as short sales that are not "against the box," could theoretically be subject to unlimited losses in cases where a fund, for any reason, is unable to close out the transaction. In addition, to the extent a fund borrows money, interest costs on such borrowings may not be recovered by any appreciation of the securities purchased with the borrowed amounts and could exceed the fund's investment returns, resulting in greater losses. Leverage may also involve the creation of a liability that requires the fund to pay interest.

#### Market Volatility
The value of the securities in which a fund invests may go up or down in response to the prospects of individual issuers and/or general economic conditions. Such price changes may be temporary or may last for extended periods.

Instability in the financial markets may expose each fund to greater market and liquidity risk and potential difficulty in valuing portfolio instruments that it holds. In response to financial markets that experienced extreme volatility, and in some cases a lack of liquidity, the U.S. Government and other governments have taken a number of unprecedented actions, including acquiring distressed assets from financial institutions and acquiring ownership interests in those institutions. The implications of government ownership and disposition of these assets are unclear. Additional legislation or government regulation may also change the way in

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which funds themselves are regulated, which could limit or preclude a fund's ability to achieve its investment objective. Local, regional or global events such as war or military conflict (e.g. Russia's invasion of Ukraine), acts of terrorism, the spread of infectious illness or other public health issue, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, or other events could have a significant impact on a fund and its investments, hampering the ability of a fund's portfolio manager(s) to invest a fund's assets as intended.

#### Mortgage-Backed and Asset-Backed Securities
Mortgage-backed securities represent interests in pools of residential mortgage loans purchased from individual lenders by a federal agency or originated and issued by private lenders. Asset-backed securities represent interests in pools of underlying assets such as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property, and receivables from credit card arrangements. These two types of securities share many of the same risks.

The impairment of the value of collateral or other assets underlying a mortgage-backed or asset-backed security, such as that resulting from non-payment of loans, may result in a reduction in the value of such security and losses to a fund.

Early payoffs in the loans underlying such securities may result in a fund receiving less income than originally anticipated. The variability in prepayments will tend to limit price gains when interest rates drop and exaggerate price declines when interest rates rise. In the event of high prepayments, a fund may be required to invest proceeds at lower interest rates, causing the fund to earn less than if the prepayments had not occurred. Conversely, rising interest rates may cause prepayments to occur at a slower than expected rate, which may effectively change a security that was considered short- or intermediate-term into a long-term security. Due to these risks, asset-backed securities may become more volatile in certain interest rate environments. Due to these risks, asset-backed securities may become more volatile in certain interest rate environments. Long-term securities tend to fluctuate in value more widely in response to changes in interest rates than shorter-term securities.

#### Non-Diversification
As a non-diversified investment company, the fund is not limited in the proportion of assets that it may invest in the securities of any one issuer. If the fund takes concentrated positions in a small number of issuers, the fund may be more susceptible to the risks associated with those issuers, or to a single economic, political, regulatory or other event affecting those issuers.

#### Portfolio Turnover
A fund's investment strategy may result in consistently frequently high turnover rate. A high portfolio turnover rate may result in correspondingly greater brokerage commission expenses and the distribution to shareholders of additional capital gains for tax purposes, some of which may be taxable at ordinary income rates. These factors may negatively affect the fund's performance.

#### Preferred Stocks
Preferred stocks may provide a higher dividend rate than the interest yield on debt instruments of the same issuer, but are subject to greater risk of fluctuation in market value and greater risk of non-receipt of income. Unlike interest on debt instruments, dividends on preferred stocks must be declared by the issuer's board of directors before becoming payable. Preferred stocks are in many ways like perpetual debt instruments, providing a stream of income but without stated maturity date. Because they often lack a fixed maturity or redemption date, preferred stocks are likely to fluctuate substantially in price when interest rates change. Such fluctuations generally are comparable to or exceed those of long-term government or corporate bonds (those with maturities of fifteen to thirty years). Preferred stocks have claims on assets and earnings of the issuer which are subordinate to the claims of all creditors but senior to the claims of common stockholders. A preferred stock rating differs from a bond rating because it applies to an equity issue which is intrinsically different from, and subordinated to, a debt issue. Preferred stock ratings generally represent an assessment of the capacity and willingness of an issuer to pay preferred stock dividends and any applicable sinking fund obligations. Preferred stock also may be subject to optional or mandatory redemption provisions, and may be significantly less liquid than many other securities, such as U.S. Government securities, corporate debt or common stock.

#### Real Estate Investment
Investing in companies that invest in real estate ("Real Estate Companies") exposes the fund to the risks of owning real estate directly, as well as to risks that relate specifically to the way in which Real Estate Companies are organized and operated. Real estate is highly sensitive to general and local economic conditions and developments, and characterized by intense competition and periodic overbuilding. Real Estate Companies may lack diversification due to ownership of a limited number of properties and concentration in a particular geographic region or property type. Risks associated with investing in Real Estate Companies include the following:

 ***Equity REIT Securities Risk.*** REITs are financial vehicles that pool investor capital to purchase or finance real estate. Equity REITs invest primarily in direct ownership or lease of real property, and they derive most of their income from rents.

Equity REITs can also realize capital gains by selling properties that have appreciated in value. Investing in equity REITs and REIT-like entities involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs and REIT-like entities are typically small or medium market capitalization companies, and they are subject to management fees and other expenses. A fund that invests in REITs and REIT-like entities will bear its proportionate share of the costs of the REITs' and REIT-like entities' operations. REITs and REIT-like entities are dependent upon management skill, may not be diversified, and are subject to heavy cash flow dependency and self-liquidation. REITs and REIT-like entities also are subject to the possibility of failing to qualify for tax-free pass-through of income. Also, because REITs and REIT-like entities typically are invested in a limited number of projects or in a particular market segment, these entities are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. In the event of a default by a borrower or lessee, a REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, investment in REITs could cause the fund to possibly fail to qualify as a regulated investment company, depending upon the nature of dividends received by the fund.

 ***REIT and REOC Securities Risk.*** Investing in Real Estate Investment Trusts (REITs) and REIT-like entities involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs and REIT-like entities are dependent upon management skill, may not

<br> 60 Virtus Mutual Funds

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be diversified, and are subject to heavy cash flow dependency and self-liquidation. REITs and REIT-like entities also are subject to the possibility of failing to qualify for tax-free pass-through of income. Also, because REITs and REIT-like entities typically are invested in a limited number of projects or in a particular market segment, these entities are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. In the event of a default by a borrower or lessee, a REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, investment in REITs could cause the fund to possibly fail to qualify as a regulated investment company. A Real Estate Operating Company ("REOC") is similar to an equity REIT in that it owns and operates commercial real estate, but unlike a REIT it has the freedom to retain all its funds from operations and, in general, faces fewer restrictions than a REIT. REOCs do not pay any specific level of income as dividends, if at all, and there is no minimum restriction on the number of owners nor limits on ownership concentration. The value of a fund's REOC securities may be adversely affected by the same factors that adversely affect REITs. In addition, a corporate REOC does not qualify for the federal tax treatment that is accorded a REIT. A fund also may experience a decline in its income from REOC securities due to falling interest rates or decreasing dividend payments.

#### Redemption
The redemption by one or more large shareholders or groups of shareholders of their holdings in the fund could have an adverse impact on the remaining shareholders in the fund by, for example, accelerating the realization of capital gains and/or increasing the fund's transaction costs.

#### Sustainable Investing Risk
Certain funds focus their investments in companies their subadviser believe exhibit strong records with respect to environmental, social, and corporate governance ("ESG") factors, a fund may choose to sell, or not to purchase, investments that are otherwise consistent with its investment objective.

Environmental performance criteria rate a company's management of its environmental challenges, including its effort to reduce or offset the impacts of its products and operations. Social criteria measure how well a company manages its impact on the communities where it operates, including its treatment of local populations, its handling of human rights issues, its commitment to philanthropic activities, its record regarding labor-management relations, anti-discrimination policies and practices, employee safety and the quality and safety record of a company's products, its marketing practices and any involvement in regulatory or anti-competitive controversies. Governance criteria address a company's investor relations and management practices, including company sustainability reporting, board accountability and business ethics policies and practices. To the extent other funds consider ESG factors and criteria as part of their overall investment strategy, similar risks will apply.

In general, the application of the fund's subadviser's ESG criteria to investments will affect a fund's exposure to certain issuers, industries, sectors, regions, and countries; may lead to a smaller universe of investments than other funds that do not incorporate ESG analysis; and may negatively impact the relative performance of a fund depending on whether such investments are in or out of favor. In addition, a fund may sell a security based on ESG-related factors when it might otherwise be disadvantageous to do so.

Due to its focus on investing in companies that a subadviser believes exhibit strong ESG records, a fund invests in companies that may share common characteristics, are often subject to similar business risks and regulatory burdens, and whose securities may react similarly to various events and other factors. To the extent it focuses a significant portion of its assets in a limited number of issuers, sectors, industries or geographic regions, a fund is further subject to focused investment risk and is more susceptible to events or factors affecting companies in that particular sector, industry or geographic region. See "Focused Investment Risk." A fund may also have focused investment risk to the extent that it invests a substantial portion of its assets in a particular country or geographic region. Prolonged drought, floods, weather, disease and other natural disasters, as well as war and political instability, may significantly reduce the ability of companies in such regions to maintain or expand their operations or their marketing efforts in affected countries or geographic regions. See "Non-U.S. Investment Risk" and "Emerging Markets Risk."

#### Underlying Fund Risk
Certain Funds may invest their assets partially, significantly or primarily in Underlying Funds, as described under "Principal Investments and Strategies of Each Fund." The risks associated with investing in these funds may be closely related to the risks associated with the securities and other investments held by the Underlying Funds. To the extent that a fund invests in Underlying Funds, its ability to achieve its investment objective may depend upon the ability of the Underlying Funds to achieve their investment objectives. There can be no assurance that the investment objective of any Underlying Fund will be achieved.

To the extent that a fund invests in Underlying Funds, its net asset value per share ("NAV") will fluctuate in response to changes in the net asset values of the Underlying Funds in which it invests. The extent to which the investment performance and risks associated with a fund correlate to those of a particular Underlying Fund will depend upon the extent to which the fund's assets are allocated from time to time for investment in the Underlying Fund, which will vary. As a shareholder of an Underlying Fund, a fund may indirectly bear service and other fees that are in addition to the fees the fund pays its service providers. Underlying Funds that are actively managed may entail risks generally associated with actively managed investment products, including management risk. Underlying Funds that seek to track an index or other benchmark may involve tracking risk. Tracking risk is the risk that a fund may not precisely replicate the results of an index or benchmark that it is intended to track. Deviations of this type may result from purchases or redemptions of fund shares, transaction costs, fund expenses and other factors.

#### Unrated Fixed Income Securities
A fund's subadviser has the authority to make determinations regarding the quality of unrated fixed-income securities for the purposes of assessing whether they meet the fund's investment restrictions. However, analysis of unrated securities is more complex than that of rated securities, making it more difficult for the subadviser to accurately predict risk. Unrated fixed income securities may not be lower in quality than rated securities, but due to their perceived risk they may not have as broad a market as rated securities, making it more difficult to sell unrated securities.

<br> Virtus Mutual Funds 61

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#### U.S. Government Securities
Obligations issued or guaranteed by the U.S. Government, its agencies, authorities and instrumentalities and backed by the full faith and credit of the United States only guarantee principal and interest will be timely paid to holders of the securities. The entities do not guarantee that the value of fund shares will increase, and in fact, the market values of such obligations may fluctuate. In addition, not all U.S. Government securities are backed by the full faith and credit of the United States; some are the obligation solely of the entity through which they are issued. There is no guarantee that the U.S. Government would provide financial support to its agencies and instrumentalities if not required to do so by law.

#### Variable Distribution Risk
To the extent a fund invests in fixed income securities that have variable or floating interest rates, the amounts of the fund's periodic distributions to shareholders may vary with fluctuations in market interest rates. Generally, when market interest rates fall, the amount of the distributions to shareholders will likewise decrease.

#### Water-Related Risk
Because the Duff & Phelps Water Fund (for purposes of this section, the "fund") focuses its investments in companies that are substantially engaged in water-related activities, events or factors affecting the sector consisting of companies engaged in such activities (the "water-related resource sector") will have a greater effect on, and may more adversely affect, the fund than they would with respect to a fund that is more diversified among a number of unrelated sectors and industries.

Companies in the water-related resource sector may be significantly affected by events relating to international political and economic developments, water conservation, the success of exploration projects, commodity prices and tax and other government regulations. There are substantial differences between the water-related, environmental and other regulatory practices and policies in various jurisdictions, and any given regulatory agency may make major shifts in policy from time to time. Other economic and market developments that may significantly affect companies in the water- related resource sector include, without limitation, inflation, rising interest rates, fluctuations in commodity prices, raw material costs and other operating costs, and competition from new entrants into the sector.

Companies in the water-related resource sector are susceptible to changes in investment in water purification technology globally, and a slackening in the pace of new infrastructure projects in developing or developed countries may constrain such companies' ability to grow in global markets. Other reductions in demand for clean water, such as significant decreases in world population or increased availability of potable water in arid regions, may reduce demand for certain products and services provided by companies in the water-related resource sector.

**Management of the Funds**

#### The Adviser
VIA (also the "Adviser") is the investment adviser to the funds and is located at One Financial Plaza, Hartford, CT 06103. VIA acts as the investment adviser for over 70 mutual funds and as adviser to institutional clients. As of September 30, 2022, VIA had approximately $47.5 billion in assets under management. VIA has acted as an investment adviser for over 80 years and is an indirect wholly- owned subsidiary of Virtus Investment Partners, Inc. ("Virtus"), a publicly traded multi-manager asset management business.

Subject to the direction of the funds' Board of Trustees, VIA is responsible for managing the funds' investment programs and for the general operations of the funds, including oversight of the funds' subadvisers and recommending their hiring, termination and replacement.

VIA has appointed and oversees the activities of each of the subadvisers for the funds as shown in the table below. For Virtus Global Allocation Fund and Virtus International Small-Cap Fund, VIA is responsible for the day-to-day management of the fund's investments and manages the investments of the fund to conform with its investment policies as described in this prospectus. For all of the other funds, each subadviser manages the investments of its respective fund(s) to conform with its investment policies as described in this prospectus.

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| | |
|:---|:---|
| Virtus Convertible Fund | Voya |
| Virtus Duff & Phelps Water Fund | Duff & Phelps |
| Virtus Newfleet Short Duration High Income Fund | Newfleet |
| Virtus NFJ Emerging Markets Value Fund | NFJ |
| Virtus NFJ Global Sustainability Fund | NFJ |
| Virtus Seix High Yield Income Fund | Seix |

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#### Management Fees
Each fund pays VIA an investment management fee that is accrued daily against the value of the fund's net assets at the following annual rates.

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| | |
|:---|:---|
| Virtus Convertible Fund | 0.57% |
| Virtus Duff & Phelps Water Fund | 0.95% |
| Virtus Global Allocation Fund | 0.70% |
| Virtus International Small-Cap Fund | 1.00% |
| Virtus Newfleet Short Duration High Income Fund | 0.48% |
| Virtus NFJ Emerging Markets Value Fund | 0.85% |
| Virtus NFJ Global Sustainability Fund | 0.80% |
| Virtus Seix High Yield Income Fund | 0.48% |

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#### The Subadvisers
Duff & Phelps, an affiliate of VIA, is located at 200 South Wacker Drive, Suite 500, Chicago, IL 60606. Duff & Phelps acts as subadviser to mutual funds and as adviser or subadviser to closed-end mutual funds and to institutional clients. Duff & Phelps (together with its predecessor) has been in the investment advisory business for more than 70 years. As of September 30, 2022, Duff & Phelps managed approximately $11.5 billion, of which $11.5 billion was regulatory assets under management and $700 million was model/emulation assets under contract. Model/emulation assets refer to assets that Duff & Phelps is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

NFJ, an affiliate of VIA, is located at One Financial Plaza, Hartford, Connecticut 06103 with its primary investment office at 2100 Ross Avenue, Dallas, Texas 75201. As of September 30, 2022 NFJ managed approximately $6.6 billion, of which $5.1 billion was regulatory assets under management and $1.5 billion was model/emulation assets under contract. Model/emulation assets refer to assets that NFJ is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

Virtus Fixed Income Advisers, LLC, ("VFIA") an affiliate of VIA, is located at One Financial Plaza, Hartford, CT 06103. VFIA operates through its divisions, Newfleet and Seix, in subadvising their respective fund(s) as described herein. As of September 30, 2022, the three divisions that make up VFIA managed approximately $33.1 billion in aggregate assets under management.

The Newfleet division of VFIA acts as subadviser to mutual funds and as adviser to institutions and individuals. Newfleet Asset Management, LLC, which merged with and into VFIA on July 1, 2022, and the former portfolio management team of which now operates as the Newfleet division of VFIA, had been an investment adviser since 1989. As of September 30, 2022, the Newfleet division of VFIA managed approximately $8.42 billion in assets under management.

The Seix division of VFIA is a fundamental, credit driven fixed income boutique specializing in investment grade and high yield bond and leveraged loan management. Seix has employed its bottom-up, research-oriented approach to fixed income management for over 20 years. The entity that is now VFIA, and the former portfolio management team of which now operates as the Seix division of VFIA, was established in 2008. Its predecessor, Seix Investment Advisors, Inc., was founded in 1992 and was independently owned until 2004 when the firm joined the entity now known as Virtus Fund Advisers, LLC, as the institutional fixed income management division. As of September 30, 2022, the Seix division of VFIA managed approximately $13.3 billion in assets under management.

Voya is located at 230 Park Avenue, New York, NY 10169 and is a wholly-owned subsidiary of Voya Investment Management LLC ("Voya IM LLC"), a registered investment adviser, which in turn is a wholly owned subsidiary of VIM Holdings LLC, a Delaware limited liability company. Voya Financial, Inc., a publicly traded company (NYSE: VOYA), holds a 76% economic stake in VIM Holdings LLC through its subsidiary Voya Holdings Inc. As of July 25, 2022, Allianz SE, a stock corporation organized and existing under the laws of the European Union and the Federal Republic of Germany, holds an indirect 24% economic stake in VIM Holdings LLC as a result of a transaction combining Voya IM LLC with the assets and teams comprising specified transferred strategies formerly managed by Allianz Global Investors U.S. LLC. Voya began business as an investment adviser on November 6, 1972, under the name of Aetna Capital Management, Inc. As of September 30, 2022, Voya managed $369.2 billion, of which $317.3 billion was regulatory assets under management and $51.9 billion was model/emulation assets under control. Model/emulation assets refer to assets that Voya is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

VIA pays each subadviser a subadvisory fee which is calculated on the fund's average daily net assets at the following annual rates:

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| | |
|:---|:---|
| Virtus Convertible Fund | 50% of net investment management fee |
| Virtus Duff & Phelps Water Fund | 50% of net investment management fee |
| Virtus Newfleet Short Duration High Income Fund | 50% of net investment management fee |
| Virtus NFJ Emerging Markets Value Fund | 50% of net investment management fee |
| Virtus NFJ Global Sustainability Fund | 50% of net investment management fee |
| Virtus Seix High Yield Income Fund | 50% of net investment management fee |

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A discussion regarding the basis for the Board of Trustees approving the investment advisory and subadvisory agreements for Virtus Duff & Phelps Water Fund, Virtus Newfleet Short Duration High Income Fund, Virtus NFJ Global Sustainability Fund, Virtus Seix High Yield Income Fund and Virtus Convertible Fund is available in the funds' 2023 annual report, covering the period October 1, 2021 through September 30, 2022. A discussion regarding the basis for the Board of Trustees approving the investment advisory and subadvisory agreements for Virtus NFJ Emerging Markets Value Fund and Virtus NFJ Global Sustainability Fund is expected to be available in the funds' 2023 semiannual report, covering the period October 1, 2022 through March 31, 2023.

The funds operate under a "manager of managers" structure, in which the Adviser provides general management services to the funds, including overall supervisory responsibility for the general management and investment of the funds' assets, and the Adviser has the ultimate responsibility, subject to oversight by the funds' Board of Trustees, to oversee the funds' subadvisers (if any) and recommend their hiring, termination and replacement.

The funds and the Adviser have received shareholder approval to rely on an exemptive order and additional exemptive relief from SEC that permits the Adviser, subject to certain conditions, and without the approval of shareholders, to: (a) select unaffiliated subadvisers, partially-owned affiliated subadvisers, and wholly-owned affiliated subadvisers, to manage all or a portion of the assets of the fund, and enter into subadvisory agreements with such subadvisers; (b) materially amend subadvisory agreements with such subadvisers; and (c) to continue the employment of existing subadvisers after events that under the 1940 Act and the relevant subadvisory agreements would otherwise cause an automatic termination of the subadvisory agreements. In such circumstances, shareholders would receive notice of such action. In addition, the exemptive relief permits the fund to disclose its advisory fees as follows: (a) advisory fees paid by the fund to the Adviser and the subadvisory fees paid by the Adviser to wholly-owned affiliated subadvisers for the fund may be disclosed on an aggregate basis, rather than disclosing the amounts paid to each individually; and (b) subadvisory fees paid by the Adviser to multiple unaffiliated and partially-owned affiliated subadvisers for the fund may be disclosed on an aggregate basis, rather than disclosing the amounts paid to each such subadviser individually.

#### Portfolio Management
The following individuals are jointly and primarily responsible for the day-to-day management of the funds' portfolios.

#### Duff & Phelps
<br> Virtus Mutual Funds 63

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<br> <u>Virtus Duff & Phelps Water Fund</u> <u>David D. Grumhaus, Jr (since July 2022)Evan Lang, CFA (since August 2022)</u>

***David D. Grumhaus, Jr.*** Mr. Grumhaus, President, and Chief Investment Officer of Duff & Phelps. Mr. Grumhaus has served as a Portfolio Manager of the fund since July 2022. Prior to joining Duff & Phelps in 2014, Mr. Grumhaus served as a portfolio manager and director of research for Copia Capital, LLC. Previously, he was an investment banker for Goldman, Sachs & Co., and William Blair & Company, LLC. Mr. Grumhaus began his career in the investment industry in 1989.

***Evan Lang, CFA.*** Mr. Lang is a Managing Director and Senior Research Analyst of Duff & Phelps. Mr. Lang has served as a Portfolio Manager of the fund since August 2022. Prior to joining Duff & Phelps in August 2022, Mr. Lang was a research analyst (since 2014) and portfolio manager at TortoiseEcofin (since 2015) where he managed a sustainable global water strategy.

#### Newfleet
<br> <u>Virtus Newfleet Short Duration High Income Fund</u> <u>David L. Albrycht, CFA (since July 2022)William J. Eastwood, CFA (since July 2022)Eric Hess, CFA (since July 2022)Kyle A. Jennings, CFA (since July 2022)Francesco Ossino (since July 2022)</u>

***David L. Albrycht, CFA.*** Mr. Albrycht is President and Chief Investment Officer at Newfleet. Prior to joining Newfleet in 2011, he was Executive Managing Director (2008 to 2011) and Vice President (2005 to 2008), Fixed Income, of Goodwin Capital Advisers, Inc. ("Goodwin"). Previously, he was associated with VIA, which at the time was an affiliate of Goodwin. He managed fixed income portfolios for Goodwin affiliates since 1991. Mr. Albrycht also manages several fixed income and variable investment options as well as two closed-end funds.

***William J. Eastwood, CFA.*** Mr. Eastwood is a Senior Managing Director and Head of Trading at Newfleet with trading responsibilities primarily for leveraged finance. In addition, Mr. Eastwood is co-portfolio manager of the Newfleet High Yield and Flexible Credit strategies in both separately managed and pooled vehicles, as well as mutual funds, through a number of subadvisory relationships. Mr. Eastwood joined Newfleet in 2011 as a senior fixed income trader. Prior to joining Newfleet, he served as a senior fixed income trader at several firms, including Neuberger Berman, PPM America, and Phoenix Investment Counsel.

***Eric Hess, CFA.*** Mr. Hess is a Managing Director and Credit Analyst at Newfleet and Sector Head of High Yield Credit. He is also responsible for the oil and gas, power, and utility industries. In addition, Mr. Hess is co-portfolio manager of the Newfleet High Yield and Flexible Credit strategies in both separately managed and pooled vehicles, as well as mutual funds, through a number of subadvisory relationships. Prior to joining Newfleet in 2011, Mr. Hess was on the fixed income team at Goodwin Capital Advisers. He joined Goodwin Capital's corporate credit research group in 2010. Previous to joining Goodwin, he was a credit analyst for The Travelers Companies.

***Kyle A. Jennings, CFA.*** Mr. Jennings is Senior Managing Director and Head of Credit Research (since 2011). Prior to joining Newfleet, Mr. Jennings was Managing Director of Goodwin. Previously, he was associated with VIA, which at the time was an affiliate of Goodwin, and has been a member of the corporate credit research team since 1998. He is the sector manager for the leveraged loan sector of the multi-sector fixed income strategies of Newfleet. He has over 20 years of investment experience.

***Francesco Ossino.*** Mr. Ossino is Senior Managing Director and Sector Head of the Bank Loan asset class at Newfleet, with a primary focus on floating rate bank loan products. Prior to joining Virtus in August 2012, Mr. Ossino was a portfolio manager at Hartford Investment Management Company (2004 to 2012), where he managed mutual funds focused on bank loans and a commingled bank loan portfolio for institutional investors. Previously, he held a variety of credit analyst and portfolio management positions at CIGNA (2002 to 2004), HVB Bank (2000 to 2002) and FleetBoston Financial (1996 to 2000).

#### NFJ

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| | |
|:---|:---|
| Virtus NFJ Emerging Markets Value Fund | R. Burns McKinney, CFA (since 2012)<br>John R. Mowrey, CFA (since 2013)<br>Thomas W. Oliver, CFA, CPA (since 2012)<br>J. Garth Reilly (since 2018) |
| Virtus NFJ Global Sustainability Fund | R. Burns McKinney, CFA (since July 2022)<br>John R. Mowrey, CFA (since July 2022)<br>Thomas W. Oliver, CFA, CPA (since July 2022)<br>Jeff N. Reed, CFA (since July 2022)<br>J. Garth Reilly (since July 2022) |

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***R. Burns McKinney, CFA.*** Mr. McKinney is a managing director and a senior portfolio manager/analyst at NFJ Investment Group. He serves as a co-lead portfolio manager of the NFJ Dividend Value, NFJ International Value, and NFJ Global Sustainability strategies. He has been quoted and featured in a number of national publications, including the Wall Street Journal and Barron's, and has been a featured guest on CNBC and Bloomberg TV. Prior to joining NFJ in 2006, Mr. McKinney was an equity analyst at Evergreen Investments, an investment banking analyst at Alex. Brown & Sons, a vice president in equity research at Merrill Lynch, and an equity analyst at Morgan Stanley. Mr. McKinney earned a B.A. in economics from Dartmouth College and an M.B.A. from The Wharton School, The University of Pennsylvania. He is a Chartered Financial Analyst<sup>®</sup>(CFA<sup>®</sup>) charterholder. He began his career in the investment industry in 1996..

***John R. Mowrey, CFA.*** Mr. Mowrey is an executive managing director, senior portfolio manager/analyst, and chief investment officer of NFJ Investment Group, responsible for the overall investment policy for all value equity portfolios, hiring new talent, and building out the team's investment capabilities. He serves as co-lead portfolio manager for the NFJ Mid Cap Value, NFJ Small Cap Value, NFJ Emerging Markets Value, and NFJ Global Infrastructure Income strategies. Mr. Mowrey joined NFJ in 2007 and has been quoted and featured in a number of national publications, including Barron's, Fortune, Kiplinger's, Funds Europe, and

<br> 64 Virtus Mutual Funds

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MarketWatch, and has been a featured guest on CNBC, Bloomberg TV, Fox Business News, TD Ameritrade Network, and Yahoo! Finance. He earned a B.A. in political science from Rhodes College and an M.B.A. from Southern Methodist University. He is a Chartered Financial Analyst<sup>®</sup> (CFA<sup>®</sup>) charterholder. He began his career in the investment industry in 2006.

***Thomas W. Oliver, CFA, CPA.*** Mr. Oliver is a managing director and senior portfolio manager/analyst at NFJ Investment Group. He serves as a co-lead portfolio manager of the NFJ Dividend Value, NFJ Large Cap Value and NFJ All Cap Value strategies. Prior to joining NFJ in 2005, Mr. Oliver was a manager of corporate reporting at Perot Systems and an auditor at Deloitte & Touche. Mr. Oliver earned a B.B.A. and an M.B.A. from the University of Texas. He is a Chartered Financial Analyst<sup>®</sup> (CFA<sup>®</sup>) charterholder and has his Certified Public Accountant (CPA) designation. He began his career in the investment industry in 1995.

***Jeff N. Reed, CFA.*** Mr Reed is a managing director and senior portfolio manager/analyst at NFJ Investment Group. He serves as a co-lead portfolio manager of the NFJ Dividend Value, NFJ Large Cap Value, NFJ All Cap Value, and NFJ Global Sustainability strategies. Prior to joining NFJ in 2007, Mr. Reed was a credit analyst at Frost Bank. Mr. Reed earned a B.B.A. in finance and e-business from Texas Christian University and an M.B.A. from the University of Texas, McCombs School of Business. He is currently enrolled in the Master of Science in Data Science program with a specialization in machine learning at Southern Methodist University. He is a Chartered Financial Analyst<sup>®</sup> (CFA<sup>®</sup>) charterholder. He began his career in the investment industry in 2004.

***J. Garth Reilly.*** Mr. Reilly is a managing director and senior portfolio manager/analyst at NFJ Investment Group. He serves as a co-lead portfolio manager of the NFJ Emerging Markets Value, NFJ International Value, and NFJ Global Infrastructure Income strategies. Prior to joining NFJ in 2005, he was an intern at Luther King Capital Management and Citigroup Alternative Investments. Mr. Reilly earned a B.A. in political economy from Princeton University and an M.B.A. from Southern Methodist University. He began his career in the investment industry in 2005.

#### Seix
<br> <u>Virtus Seix High Yield Income Fund</u> <u>James FitzPatrick, CFA (since July 2022)Michael Kirkpatrick (since July 2022)</u>

***James FitzPatrick.*** Mr. FitzPatrick joined Seix Investment Advisors, Inc., the predecessor to Seix, in 1997 and serves as Portfolio Manager, Managing Director and Head of Leveraged Finance Trading. He has worked in investment management since 1996.

***Michael Kirkpatrick.*** Mr. Kirkpatrick joined Seix Investment Advisors, Inc., the predecessor to Seix, in 2002 and serves as Senior Portfolio Manager, Managing Director and Senior High Yield Research Analyst primarily covering the Gaming and Finance sectors. He is a member of the Seix Investment Policy Group, which determines firm-wide asset allocation policy. He has worked in investment management since 1991.

#### VIA

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| | |
|:---|:---|
| Virtus Global Allocation Fund | Heather Bergman, Ph.D. (since 2017)<br>Paul Pietranico, CFA (since 2009)<br>Kunal Ghosh (Equity Sleeve) (since July 2022)<br>Michael Rothstein, CFA, FRM, CAIA (since January 2023)<br>David Torchia (Fixed Income Sleeve) (since July 2022) |
| Virtus International Small-Cap Fund | Kunal Ghosh (since July 2022)<br>Lu Yu, CFA, CIPM (since July 2022) |

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***Heather Bergman, Ph.D.*** Ms. Bergman is a senior portfolio manager and managing director, Virtus Multi-Asset, with Virtus Investment Advisers, Inc. As a member of the Multi-Asset Team, she manages Active Allocation strategies and investment functions around the 529 portfolios. She also focuses on the due diligence efforts into the underlying investment strategies in the US for both internal and external managers and actively contributes to the team's Fundamental Research. She has 14 years of investment industry experience. Previously, she was a portfolio manager and a director with Allianz Global Investors, which she joined in 2011. Ms. Bergman previously taught at UCLA. Before that, she was an analyst at a global hedge fund. Ms. Bergman has a B.A. from Georgetown University, an M.A. from Columbia University and a Ph.D. in international political economy from the University of California, Los Angeles.

***Kunal Ghosh.*** Mr. Ghosh is chief investment officer and senior managing director, Virtus Systematic, with Virtus Investment Advisers, Inc., which he joined in 2022. He has 17 years of investment-industry experience. Previously, he was a managing director and head of the Systematic team with Allianz Global Investors, which he joined in 2006. Mr. Ghosh was previously a research associate and portfolio manager for Barclays Global Investors, and a quantitative analyst for the Cayuga Hedge Fund. He has a B.Tech. from the Indian Institute of Technology, an M.S. in material engineering from the University of British Columbia and an M.B.A. from Cornell University.

***Paul Pietranico, CFA.*** Mr. Pietranico is chief investment officer and senior managing director, Virtus Multi-Asset, with Virtus Investment Advisers, Inc. He is a portfolio manager on active allocation, multi asset income and unconstrained multi asset strategies. Paul has investment industry experience since 1995. Previously, he was a Director and Senior Portfolio Manager, Allianz Global Investors Multi Asset US, which he joined in 2005, and where he was a member of the global team's Fundamental Multi Asset Investment Committee and co-head of the Fixed Income working group. He previously worked at Charles Schwab & Co. in the Schwab Center for Investment Research, focusing on asset allocation, manager research and quantitative modeling. Mr. Pietranico has a B.S. in physics, an M.A. in philosophy, and an M.S. in engineering economic systems and operations research from Stanford University. He is a CFA charterholder.

***Michael Rothstein, CFA, FRM, CAIA.*** Mr. Rothstein is a portfolio manager, Virtus Multi-Asset, with Virtus Investment Advisers, Inc., which he joined in 2022. As a member of the Multi-Asset team, he develops and manages dynamic asset allocation strategies. Prior to joining Virtus in 2022, Mr. Rothstein was head of product specialists for the Multi Asset US team at Allianz Global Investors, and a portfolio manager with Allianz Global Investors, which he joined in 2007. Prior to joining Allianz Global Investors in 2007, he was a Financial Advisor at AG Edwards & Sons Inc.. Mr. Rothstein earned a B.S. in finance from Ramapo College and an M.B.A. in statistics from Baruch College. He is a Chartered Financial Analyst<sup>®</sup> (CFA<sup>®</sup>) charterholder, a certified Financial Risk Manager (FRM) and a Chartered Alternative Investment Analyst<sup>®</sup> (CAIA<sup>®</sup>) charterholder. He began his career in the investment industry in 2006.

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***David Torchia.*** Mr. Torchia is a portfolio manager and head of multi-sector credit strategies/investment grade at Stone Harbor Investment Partners ("Stone Harbor"), and Senior Portfolio Manager and Managing Director with Virtus Investment Advisers Inc. Prior to joining the predecessor to Stone Harbor in 2006, Mr. Torchia was a Managing Director and senior portfolio manager responsible for directing investment policy and strategy for all investment grade U.S. fixed income portfolios at Citigroup Asset Management. Previously, he served as a portfolio manager and investment policy committee member at Salomon Brothers Asset Management and as a manager of structured portfolios for the bond portfolio analysis group at Salomon Brothers Inc. Mr. Torchia earned a B.S. in industrial engineering from the University of Pittsburgh and an M.B.A in finance from Lehigh University. He began working in the investment industry in 1984.

***Lu Yu, CFA, CIPM.*** Ms. Yu, is a lead portfolio manager and managing director, Virtus Systematic, with Virtus Investment Advisers, Inc. which she joined in July 2022. She has 18 years of investment-industry experience. Previously, Ms. Yu was a managing director and had portfolio-management and research responsibilities for the Systematic team with Allianz Global Investors. She was previously a risk analyst for Provident Advisors LLC. Ms. Yu has a B.S. from Nanjing University, China, and an M.S. from the University of Southern California and the National University of Singapore. She holds CFA and CIPM designations.

#### Voya
<br> <u>Virtus Convertible Fund</u> <u>Justin Kass, CFA (since 2003)Ethan Turner, CFA (since January 2023)David J. Oberto (since March 2022)Michael E. Yee (since March 2022)</u>

***Justin Kass, CFA.*** Mr. Kass, CFA, is a portfolio manager and a senior managing director with Voya. He also serves as Chief Investment Officer and Co-Head of the Income & Growth team. He joined Voya in July 2022 in conjunction with the firm's transfer of certain portfolio management teams from Allianz Global Investors U.S., which he had joined in 2000, where he was a portfolio manager, managing director, CIO and co-head of the U.S. income and growth strategies team with portfolio management, research and trading responsibilities for the income and strategies team. Prior to that at Allianz, Mr. Kass held portfolio manager responsibilities for the U.S. convertible strategy and was a lead portfolio manager for the income and growth strategy since its inception and was also responsible for managing multiple closed-end and open-end mutual funds. Mr. Kass has a B.S. from the University of California, Davis, and an M.B.A. from the UCLA Anderson School of Management. He is a CFA<sup><sup>®</sup></sup> charterholder.

***David J. Oberto.*** Mr. Oberto is a portfolio manager and senior vice president with Voya. He joined Voya in July 2022 in conjunction with the firm's transfer of certain portfolio management teams from Allianz Global Investors U.S., which he had joined in 2007, where he was a portfolio manager and director with portfolio management, research and trading responsibilities for the income and growth strategies team. Mr. Oberto served as portfolio manager for the U.S. High Yield Bond strategy and was also responsible for managing multiple closed-end and open-end mutual funds. Prior to that, he was a portfolio administrator, a credit default swaps (CDS) account manager and a trade-closer at Bain Capital. Mr. Oberto has a B.S.B.A. with a concentration in finance and a minor in economics from Fordham University and an M.S. in finance from the D'Amore-McKim School of Business at Northeastern University.

***Ethan Turner, CFA.*** Mr. Turner is a portfolio manager and vice president with Voya. He joined Voya in July 2022 in conjunction with the firm's transfer of certain portfolio management teams from Allianz Global Investors U.S., which he had joined in 2012, where he was an analyst and vice president with research responsibilities for the income and growth strategies team. Prior to that at Allianz, he was a trading assistant. Prior to that, Mr. Turner was a lead analyst covering the financial sector at Relational Investors and a financial analyst at Sunstone Hotel Investors. Mr. Turner earned a BS from San Diego State University and an MBA from the Anderson School of Management at the University of California, Los Angeles. He is a CFA<sup>®</sup> Charterholder.

***Michael E. Yee.*** Mr. Yee is a portfolio manager and a managing director with Voya. He joined Voya in July 2022 in conjunction with the firm's transfer of certain portfolio management teams from Allianz Global Investors U.S., which he had joined in 1995, where he was a portfolio manager and managing director with portfolio management, research and trading responsibilities for the income and growth strategies team. He served as a lead portfolio manager for the income and growth strategy since inception and was responsible for managing multiple closed-end and open-end mutual funds. Prior to that at Allianz, Mr. Yee was an analyst for the global and systematic team with responsibilities focused on U.S. large cap equity strategies and worked in global portfolio administration and client service. Previously, he was a financial consultant for Priority One Financial/Liberty Foundation. He has a B.S. from the University of California, San Diego, and an M.B.A. from San Diego State University.

*Please refer to the SAI for additional information about the funds' portfolio managers, including the structure of and method of computing compensation, other accounts they manage and their ownership of shares of the funds.*

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**Additional Risks Associated with Investment Techniques and Fund Operations**

In addition to the Principal Investment Strategies and Risks Related to Principal Investment Strategies, certain of the funds may engage in additional investment techniques that present additional risks to a fund. The information below the chart describes the additional investment techniques and their risks. Many of the additional investment techniques that a fund may use, as well as other investment techniques that are relied upon to a lesser degree, are more fully described in the SAI.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Risks** | **Virtus Convertible Fund** | **Virtus Duff & Phelps Water Fund** | **Virtus Global Allocation Fund** | **Virtus International Small-Cap Fund** | **Virtus Newfleet Short Duration High Income Fund** | **Virtus NFJ Emerging Markets Value Fund** | **Virtus NFJ Global Sustainability Fund** | **Virtus Seix High Yield Income Fund** |
| Capitalization Criteria, Percentage Investment Limitations and Alternative Means of Gaining Exposure |  | X | X |  |  |  |  |  |
| Changes in Investment Objectives and Policies | X | X | X | X | X | X | X | X |
| Common Stocks and Other Equity Securities |  | X | X | X |  |  |  |  |
| Convertible Securities |  | X |  |  |  |  |  |  |
| Corporate Debt Securities |  |  | X |  |  |  |  |  |
| Credit Ratings and Unrated Securities |  |  | X |  | X |  |  |  |
| Credit Risk Transfer Securities |  |  | X |  | X |  |  |  |
| Cybersecurity | X | X | X | X | X | X | X | X |
| Equity-Related Instruments |  | X | X | X |  |  |  |  |
| Exchange-Traded Funds (ETFs) |  |  |  | X |  |  |  |  |
| Fixed Income Securities |  |  | X |  | X |  |  |  |
| High-Yield Securities |  |  | X |  |  |  |  |  |
| Illiquid Securities |  | X |  |  | X |  |  |  |
| Industry/Sector Concentration |  | X | X |  |  |  |  |  |
| LIBOR |  |  | X |  | X |  | X | X |
| Location of Issuers |  | X |  | X |  |  |  |  |
| Mutual Fund Investing |  |  | X | X |  |  | X | X |
| New and Smaller-Sized Funds |  |  | X |  |  |  |  |  |
| Non-U.S. Securities |  | X | X | X |  |  |  |  |
| Operational | X | X | X |  | X | X | X | X |
| U.S. and Foreign Government Obligations |  |  | X |  | X |  |  |  |
| Variable and Floating Rate Securities |  |  | X |  | X |  |  |  |
| When-Issued, Delayed Delivery and Forward Commitment Transactions |  | X |  |  |  |  |  |  |

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#### Capitalization Criteria, Percentage Investment Limitations and Alternative Means of Gaining Exposure
Unless otherwise stated, all market capitalization criteria and percentage limitations on fund investments listed in this Prospectus will apply at the time of investment. A fund would not violate these limitations unless an excess or deficiency occurs or exists immediately after and as a result of an investment. Unless otherwise indicated, references to assets in the percentage limitations on the funds' investments refer to total assets. Unless otherwise stated, if a fund is described as investing in a particular type of security or other instrument, either generally or subject to a minimum investment percentage, the fund may make such investments either directly or by gaining exposure through indirect means, such as depositary receipts, derivatives (based on either notional or mark-to-market value depending on the instrument and circumstances), placement warrants or other structured products. Such exposure may be achieved through a combination of multiple instruments or through a combination of one or more investment instruments and cash or cash equivalents. Certain funds are subject to market capitalization criteria or similar criteria, such as policies adopted pursuant to Rule 35d-1 under the 1940 Act, that are tied to specific securities indices ("reference indices"). When a reference index is periodically rebalanced or reconstituted, a fund may require a reasonable time period to align its investment portfolio with any new market capitalization or other criteria that result from changes to the reference index.

#### Changes in Investment Objectives and Policies
The investment objective of each of the funds is not fundamental and may be changed by the Board of Trustees without shareholder approval. Unless otherwise stated in the Statement of Additional Information, all investment policies of the funds may be changed by the Board of Trustees without shareholder approval. In addition, each fund may be subject to additional restrictions on its ability to utilize certain investments or investment techniques described herein or in the Statement of Additional Information. These additional restrictions may be changed with the consent of the Board of Trustees but without approval by or notice to shareholders.

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Each of the Virtus Convertible Fund, Virtus Duff & Phelps Water Fund, Virtus International Small-Cap Fund, Virtus Newfleet Short Duration High Income Fund, Virtus NFJ Emerging Markets Value Fund, and Virtus Seix High Yield Income Fund has adopted an 80% investment policy under Rule 35d-1 under the Investment Company Act of 1940 (which policy is set forth in the Statement of Additional Information) and will not change such policy as it is stated in each fund's respective Fund Summary unless such fund provides shareholders with the notice required by Rule 35d-1, as it may be amended or interpreted by the SEC from time to time.

#### Common Stocks and Other Equity Securities
Common stock represents an ownership interest in a company. Common stock may take the form of shares in a corporation, membership interests in a limited liability company, limited partnership interests, or other forms of ownership interests. The value of a company's stock may fall as a result of factors directly relating to that company, such as decisions made by its management or lower demand for the company's products or services. A stock's value may also fall because of factors affecting not just the company, but also companies in the same industry or in a number of different industries, such as increases in production costs. The value of a company's stock may also be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency exchange rates or adverse circumstances involving the credit markets. In addition, a company's stock generally pays dividends only after the company invests in its own business and makes required payments to holders of its bonds, other debt and preferred securities. For this reason, the value of a company's stock will usually react more strongly than its bonds, other debt and preferred securities to actual or perceived changes in the company's financial condition or prospects.

To the extent that a fund focuses its investments on equity securities issued by dividend paying companies, fund performance may lag behind that of funds that do not place emphasis on dividends. During periods of market advance, dividend paying companies typically experience lower levels of earnings growth and/or capital appreciation than non-dividend paying companies. Furthermore, the dividend payments may vary over time, and there is no guarantee that a company will maintain any minimum level of dividend payments or pay a dividend at all.

Stocks of smaller companies may be more vulnerable to adverse developments than those of larger companies. Stocks of companies that the portfolio managers believe are fast-growing may trade at a higher multiple of current earnings than other stocks. The value of such stocks may be more sensitive to changes in current or expected earnings than the values of other stocks. Seeking earnings growth may result in significant investments in sectors that may be subject to greater volatility than other sectors of the economy. Companies that a fund's portfolio manager believes are undergoing positive change and whose stock the portfolio manager believes is undervalued by the market may have experienced adverse business developments or may be subject to special risks that have caused their stocks to be out of favor. If a fund's portfolio manager's assessment of a company's earnings growth or other prospects is wrong, or if the portfolio manager's judgment of how other investors will value the company is wrong, then the price of the company's stock may fall or may not approach the value that the portfolio manager has placed on it.

Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy and/or insolvency of the issuer. In addition to common stocks, equity securities include, without limitation, preferred stocks, convertible securities and warrants. Equity securities other than common stocks are subject to many of the same risks as common stocks, although possibly to different degrees. A fund may invest in, and gain exposure to, common stocks and other equity securities through purchasing depositary receipts, such as ADRs, EDRs and GDRs, as described under "Non-U.S. Securities" below.

Preferred stock represents an equity interest in a company that generally entitles the holder to receive, in preference for the holders of other stocks such as common stocks, dividends and a fixed share of the proceeds resulting from a liquidation of the company. Preferred stock may pay fixed or adjustable rates of return. Preferred stock is subject to issuer-specified and market risks applicable generally to equity securities. In addition, a company's preferred stock generally pays dividends only after the company makes required payments to holders of its bonds and other debt.

#### Convertible Securities
Convertible securities are generally bonds, debentures, notes, preferred securities, "synthetic" convertibles and other securities or investments that may be converted or exchanged (by the holder or issuer) into equity securities of the issuer (or cash or securities of equivalent value). The price of a convertible security will normally vary in some proportion to changes in the price of the underlying equity security because of this conversion or exercise feature. However, the value of a convertible security may not increase or decrease as rapidly as the underlying common stock. A convertible security may be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a fund is called for redemption or conversion, the fund could be required to tender it for redemption, convert it into the underlying common stock or sell it to a third party. A convertible security will normally also provide income and is subject to interest rate risk. Convertible securities may be lower-rated or high-yield securities subject to greater levels of credit risk, and may also be less liquid than non-convertible debt securities. While convertible securities generally offer lower interest or dividend yields than non-convertible fixed income securities of similar quality, their value tends to increase as the market value of the underlying stock increases and to decrease when the value of the underlying stock decreases. However, a convertible security's market value tends to reflect the market price of the common stock of the issuing company when that stock price approaches or is greater than the convertible security's "conversion price." The conversion price is defined as the predetermined price at which the convertible security could be exchanged for the associated stock. As the market price of the underlying common stock declines, the price of the convertible security tends to be influenced more by the yield of the convertible security. Thus, it may not decline in price to the same extent as the underlying common stock. Depending upon the relationship of the conversion price to the market value of the underlying security, a convertible security may trade more like an equity security than a debt instrument. Also, a fund may be forced to convert a security before it would otherwise choose, which may decrease the fund's return.

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#### Corporate Debt Securities
Corporate debt securities are subject to the risk of the issuer's inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to factors such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. When interest rates rise, the value of corporate debt securities can be expected to decline. Debt securities with longer maturities or durations tend to be more sensitive to interest rate movements than those with shorter maturities.

#### Credit Ratings and Unrated Securities
A fund may invest in securities based on their credit ratings assigned by rating agencies such as Moody's, S&P and Fitch. Moody's, S&P, Fitch and other rating agencies are private services that provide ratings of the credit quality of fixed income securities, including convertible securities. An Appendix to the funds' Statement of Additional Information describes the various ratings assigned to fixed income securities by Moody's, S&P and Fitch. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk. Rating agencies may fail to make timely changes in credit ratings and an issuer's current financial condition may be better or worse than a rating indicates. A fund will not necessarily sell a security when its rating is reduced below its rating at the time of purchase. The subadviser does not rely solely on credit ratings, and may develop their own analyses of issuer credit quality.

The funds may purchase unrated securities (which are not rated by a rating agency) if the subadviser determines that the security is of comparable quality to a rated security that the funds may purchase. Unrated securities may be less liquid than comparable rated securities and involve the risk that the subadviser may not accurately evaluate the security's comparative credit rating. Analysis of the creditworthiness of issuers of high yield securities may be more complex than for issuers of higher-quality fixed income securities. In the event a fund invests a significant portion of assets in high yield securities and/ or unrated securities, the fund's success in achieving its investment objective may depend more heavily on the subadviser's creditworthiness analysis than if the fund invested exclusively in higher-quality and rated securities.

#### Credit Risk Transfer Securities
Credit risk transfer securities are fixed- or floating-rate unsecured general obligations issued from time to time by Freddie Mac, Fannie Mae or other government sponsored entities ("GSEs"). Typically, such securities are issued at par and have stated final maturities. The securities are structured so that: (i) interest is paid directly by the issuing GSE, and (ii) principal is paid by the issuing GSE in accordance with the principal payments and default performance of a certain pool of residential mortgage loans acquired by the GSE ("reference obligations"). The performance of the securities will be directly affected by the selection of the reference obligations by the GSE. Such securities are issued in tranches to which are allocated certain principal repayments and credit losses corresponding to the seniority of the particular tranche. Each tranche of securities will have credit exposure to the reference obligations and the yield to maturity will be directly related to the amount and timing of certain defined credit events on the reference obligations, any prepayments by borrowers and any removals of a reference obligation from the pool.

Credit risk transfer securities are unguaranteed and unsecured debt securities issued by the GSE and therefore are not directly linked to or backed by the underlying mortgage loans. As a result, in the event that a GSE fails to pay principal or interest on its credit risk transfer securities or goes through a bankruptcy, insolvency or similar proceeding, holders of such credit risk transfer securities have no direct recourse to the underlying mortgage loans and will generally receive recovery on par with other unsecured note holders in such a scenario.

Each fund may also invest in credit risk transfer securities that are issued by private entities, such as banks or other financial institutions. Such securities are subject to risks similar to those associated with credit risk transfer securities issued by GSEs.

The risks associated with an investment in credit risk transfer securities are different than the risks associated with an investment in mortgage-backed securities issued by Fannie Mae and Freddie Mac, or other GSEs or issued by a private issuer, because some or all of the mortgage default or credit risk associated with the underlying mortgage loans is transferred to investors. As a result, investors in these securities could lose some or all of their investment in these securities if the underlying mortgage loans default.

#### Cybersecurity
With the increased use of technologies such as the Internet to conduct business, the funds are potentially more susceptible to operational and information security risks through breaches in cybersecurity. In general, a breach in cybersecurity can result from either a deliberate attack or an unintentional event. Cybersecurity breaches may involve, among other things, infection by computer viruses or other malicious software code or unauthorized access to the digital information systems, networks or devices of the funds or their service providers (including, but not limited to, the funds' investment adviser, transfer agent, custodian, administrators and other financial intermediaries) through "hacking" or other means, in each case for the purpose of misappropriating assets or sensitive information (including, for example, personal shareholder information), corrupting data or causing operational disruption or failures in the physical infrastructure or operating systems that support the funds. Any such cybersecurity breaches or losses of service may cause the funds to lose proprietary information, suffer data corruption or lose operational capacity, which, in turn, could cause the funds to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures, and/or financial loss. While the funds and their service providers have established business continuity plans and risk management systems designed to prevent or reduce the impact of cybersecurity attacks, there are inherent limitations in such plans and systems due in part to the ever-changing nature of technology and cybersecurity attack tactics, and there is a possibility that certain risks have not been adequately identified or prepared for. Cybersecurity risks may also impact issuers of securities in which the funds invest, which may cause the funds' investments in such issuers to lose value.

#### Equity-Related Instruments
Equity-related instruments are securities and other instruments, including derivatives such as equity- linked securities, whose investment results are intended to correspond generally to the performance of one or more specified equity securities or of a specified equity index or analogous "basket" of equity securities. See "Common Stocks and Other Equity Securities" above. To the extent that a fund invests in equity-related instruments whose return corresponds to the performance of a non-U.S. securities index or one or more non-U.S. equity securities, investing in such equity-related instruments will involve risks similar to the risks of investing in non-U.S. securities. See "Non-U.S. Securities" above. In addition, a fund bears the risk that the issuer of an equity-related instrument may default on its obligations under the instrument. Equity-related instruments are often used for many of the same purposes as, and share many of the same risks with, other

<br> Virtus Mutual Funds 69

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derivative instruments. See "Derivatives" above. Equity-related instruments may be considered illiquid and thus subject to a fund's restrictions on investments in illiquid securities.

#### Exchange-Traded Funds (ETFs)
ETFs invest in a portfolio of securities designed to track a particular market segment or index. The risks associated with investing in ETFs generally reflect the risks of owning shares of the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities. Assets invested in ETFs incur a layering of expenses, including operating costs and advisory fees that fund shareholders indirectly bear; such expenses may exceed the expenses the fund would incur if it invested directly in the underlying portfolio of securities the ETF is designed to track. Shares of ETFs trade on a securities exchange and may trade at, above, or below their net asset value.

#### Fixed Income Securities
As used in this Prospectus, the term "fixed income securities" includes, without limitation: securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises ("U.S. Government Securities"); corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper; mortgage-backed and other asset-backed securities; inflation-indexed bonds issued both by governments and corporations; structured notes, including hybrid or "indexed" securities and event-linked bonds; loan participations and assignments; delayed funding loans and revolving credit facilities; bank certificates of deposit, fixed time deposits and bankers' acceptances; repurchase agreements and reverse repurchase agreements; debt securities issued by states or local governments and their agencies, authorities and other government- sponsored enterprises; obligations of non-U.S. governments or their subdivisions, agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities. Securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. Investments in U.S. Government Securities and other government securities remain subject to the risks associated with downgrade or default. Unless otherwise stated in the Fund Summaries or under "Principal Investments and Strategies of Each Fund," the funds may invest in derivatives based on fixed income securities. Although most of the funds focus on equity and related investments, the funds may also have significant investment exposure to fixed income securities through investments of cash collateral from loans of portfolio securities.

Fixed income securities are obligations of the issuer to make payments of principal and/or interest on future dates. Fixed income securities are subject to the risk of the issuer's inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to factors such as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market conditions. As interest rates rise, the value of fixed income securities can be expected to decline. Fixed income securities with longer "durations" (a measure of the expected life of a fixed income security that is used to determine the sensitivity of a security's price to changes in interest rates) tend to be more sensitive to interest rate movements than those with shorter durations. Similarly, a fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. As a general rule, a 1% rise in interest rates means a 1% fall in value for every year of duration. By way of example, the price of a bond fund with a duration of five years would be expected to fall approximately 5% if interest rates rose by one percentage point and the price of a bond fund with a duration of three years would be expected to fall approximately 3% if interest rates rose by one percentage point. Certain fixed-income funds can have "negative" duration profiles (which may be achieved through the use of derivatives or other means), meaning they tend to increase in value in response to an increase in interest rates. For these funds, a 1% increase in interest rates would tend to correspond to a 1% increase in value for every year of negative duration. The timing of purchase and sale transactions in debt obligations may result in capital appreciation or depreciation because the value of debt obligations varies inversely with prevailing interest rates.

#### High-Yield Securities
Securities rated lower than Baa by Moody's Investors Service, Inc. ("Moody's") or lower than BBB by S&P Global Ratings ("S&P") or Fitch, Inc. ("Fitch"), or unrated securities deemed by the subadviser to be of comparable quality, are sometimes referred to as "high yield securities" or "junk bonds." Investing in these securities involves special risks in addition to the risks associated with investments in higher-rated fixed income securities. While offering a greater potential opportunity for capital appreciation and higher yields, these securities may be subject to greater levels of interest rate, credit and liquidity risk, may entail greater potential price volatility and may be less liquid than higher-rated securities. These securities may be regarded as predominantly speculative with respect to the issuer's continuing ability to meet principal and interest payments. They may also be more susceptible to real or perceived adverse economic and competitive industry conditions than higher-rated securities. Fixed income securities rated in the lowest investment grade categories by a rating agency may also possess speculative characteristics. If securities are in default with respect to the payment of interest or the repayment on principal, or present an imminent risk of default with respect to such payments, the issuer of such securities may fail to resume principal or interest payments, in which case a fund may lose its entire investment. In recent years, there has been a broad trend of weaker or less restrictive covenant protections in the high yield market. Among other things, under such weaker or less restrictive covenants, borrowers might be able to exercise more flexibility with respect to certain activities than borrowers who are subject to stronger or more protective covenants. For example, borrowers might be able to incur more debt, including secured debt, return more capital to shareholders, remove or reduce assets that are designated as collateral securing high yield securities, increase the claims against assets that are permitted against collateral securing high yield securities or otherwise manage their business in ways that could impact creditors negatively. In addition, certain privately held borrowers might be permitted to file less frequent, less detailed or less timely financial reporting or other information, which could negatively impact the value of the high yield securities issued by such borrowers. Each of these factors might negatively impact the high yield instruments held by a fund.

#### Illiquid Securities
A fund may not purchase or otherwise acquire any illiquid securities if, immediately after the acquisition, the value of illiquid securities held by such fund would exceed 15% of the fund's net assets. Certain illiquid securities may require pricing using fair valuation procedures approved by the Board of Trustees. The subadviser may be subject to significant delays in disposing of illiquid securities held by the fund, and transactions in illiquid securities may entail registration expenses and other transaction costs that are higher than those for transactions in liquid securities. The term "illiquid securities" for this purpose means securities that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the securities. Please see "Investment Objectives and Policies" in the Statement of Additional Information for a listing of various securities that are generally considered to be illiquid for these purposes. Restricted securities, i.e., securities subject to legal or contractual restrictions on resale, may be illiquid. However, some restricted securities may be treated as liquid, although they may be less liquid than registered securities traded on established secondary markets. This generally includes securities that are unregistered, such as securities issued pursuant to Rule 144A under the Securities Act,

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or that are otherwise exempt from registration under the Securities Act, such as commercial paper. If any fund determines at any time that it owns illiquid securities in excess of 15% of its net assets, it will cease to undertake new commitments to acquire illiquid securities until its holdings are no longer in excess of 15% of its NAV, report the occurrence in compliance with Rule 30b1-10 under the 1940 Act, and, depending on circumstances, may take additional steps to reduce its holdings of illiquid securities.

#### Industry/Sector Concentration
The value of the investments of a fund that focuses its investments in a particular industry or market sector will be highly sensitive to financial, economic, political and other developments affecting that industry or market sector, and conditions that negatively impact that industry or market sector will have a greater impact on the fund as compared with a fund that does not have its holdings similarly concentrated. Events negatively affecting the industries or market sectors in which a fund has invested are therefore likely to cause the value of the fund's shares to decrease, perhaps significantly.

#### LIBOR
The London Interbank Offered Rate ("LIBOR") historically has been and currently is used extensively in the U.S. and globally as a "benchmark" or "reference rate" for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other derivatives. For example, debt instruments in which a fund invests may pay interest at floating rates based on LIBOR or may be subject to interest caps or floors based on LIBOR. A fund's derivative investments may also reference LIBOR. In addition, issuers of instruments in which a fund invests may obtain financing at floating rates based on LIBOR, and a fund may use leverage or borrowings based on LIBOR. In July 2017, the head of the United Kingdom Financial Conduct Authority announced the intention to phase out the use of LIBOR by the end of 2021. However, after subsequent announcements by the FCA, the LIBOR administrator and other regulators, certain of the most widely used LIBORs have been extended and are expected to continue until mid-2023. Currently, the U.S. and other countries are working to replace LIBOR with alternative reference rates. The transition effort in the U.S. is being led by the Alternative Reference Rate Committee ("ARRC"), a diverse group of market participants convened by the Federal Reserve. After much deliberation, ARRC selected the Secured Overnight Financing Rate ("SOFR") as the preferred LIBOR successor for U.S. dollar markets. SOFR is a volume-weighted median of borrowing rates from the Treasury repurchase agreement market. National working groups in other jurisdictions have similarly identified overnight nearly risk-free rates like SOFR as their preferred alternatives to LIBOR. Although the structured transition to the new rates is designed to mitigate the risks of disruption to financial markets, such risks exist. Abandonment of or modifications to LIBOR could lead to significant short- and long-term uncertainty and market instability. The risks associated with this discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. It remains uncertain the effects such changes would have on the funds, or issuers of instruments in which the funds invest, and the financial markets generally.

#### Location of Issuers
A fund's policies may be determined by reference to whether an issuer is "located in" a particular country or group of countries. In determining whether an issuer is "located in" a particular country for those purposes, the subadviser will consider a number of factors, including but not limited to: (i) whether the issuer's securities are principally traded in the country's markets; (ii) where the issuer's principal offices or operations are located; (iii) where the issuer is headquartered or organized; and (iv) the percentage of the issuer's revenues derived from goods or services sold or manufactured in the country. The subadviser may also consider other factors in making this determination. No single factor will necessarily be determinative nor must all be present for the subadviser to determine that an issuer is in a particular country.

#### Mutual Fund Investing
Through its investments in other mutual funds, a fund is exposed not only to the risks of the underlying funds' investments but also to certain additional risks. Assets invested in other mutual funds incur a layering of expenses, including operating costs, advisory fees and administrative fees that you, as a shareholder in the fund, indirectly bear. Such fees and expenses may exceed the fees and expenses the fund would have incurred if it invested in the underlying fund's assets directly. To the extent that the expense ratio of an underlying fund changes, the weighted average operating expenses borne by the fund may increase or decrease. An underlying fund may change its investment objective or policies without the approval of the fund, and the fund might be forced to withdraw its investment from the underlying fund at a time that is unfavorable to the fund. If a fund invests in closed-end funds, it may incur added expenses such as additional management fees and trading costs and additional risks associated with trading at a discount to NAV and use of leverage.

#### New and Smaller-Sized Funds
In addition to the risks described under "Summary of Principal Risks" above and in this section, to the extent a fund is recently formed, it would have limited performance history, or even none at all, for investors to evaluate. Also, it is possible that newer funds and smaller-sized funds (including funds that have lost significant assets through market declines or redemptions) may invest in securities offered in initial public offerings and other types of transactions (such as private placements) which, because of the funds' size, have a disproportionate impact on the funds' performance results. Such funds would not necessarily have achieved the same performance results if their aggregate net assets had been greater.

#### Non-U.S. Securities
The funds may invest in non-U.S. securities. Non-U.S. securities may include, but are not limited to, securities of companies that are organized and headquartered outside the U.S. (including securities traded in local currencies); non-U.S. equity securities as designated by commonly-recognized market data services; U.S. dollar- or non-U.S. currency-denominated corporate debt securities of non-U.S. issuers; securities of U.S. issuers traded principally in non-U.S. markets; non-U.S. bank obligations; U.S. dollar-or non-U.S. currency-denominated obligations of non-U.S. governments or their subdivisions, agencies and instrumentalities, international agencies and supranational entities; and securities of other investment companies investing primarily in non-U.S. securities. When assessing compliance with investment policies that designate a minimum or maximum level of investment in "non-U.S. securities" for a fund, the subadviser may apply a variety of factors (either in addition to or in lieu of one or more of the categories described in the preceding sentence) in order to determine whether a particular security or instrument should be treated as U.S. or non-U.S. For more information about how the subadviser may define non-U.S. securities for purposes of a fund's asset tests and investment restrictions, see the fund's principal investments and strategies under "Principal Investments and Strategies of Each Fund." For more information about how the subadviser may determine whether an issuer is located in a particular country, see "Location of Issuers" below.

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The funds may invest in American Depositary Receipts (ADRs), European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs). ADRs are dollar-denominated receipts issued generally by domestic banks and representing the deposit with the bank of a security of a non-U.S. issuer, and are publicly traded on exchanges or over-the-counter in the United States. EDRs are receipts similar to ADRs and are issued and traded in Europe. GDRs may be offered privately in the United States and also traded in public or private markets in other countries. Investing in these instruments exposes a fund to credit and counterparty risk with respect to the issuer of the ADR, EDR or GDR, in addition to the risks of the underlying investment.

Investing in non-U.S. securities involves special risks and considerations not typically associated with investing in U.S. securities and shareholders should consider carefully the substantial risks involved for funds that invest in these securities. These risks include: differences in accounting, auditing and financial reporting standards; generally higher commission rates on non-U.S. portfolio transactions; the possibility of nationalization, expropriation or confiscatory taxation; adverse changes in investment or exchange control regulations; market disruption; the possibility of security suspensions; and political instability. The Public Company Accounting Oversight Board ("PCAOB"), which regulates auditors of US public companies, for example, is unable to inspect audit work papers in certain foreign countries. Additionally, investors in foreign countries often have limited rights and few practical remedies to pursue shareholder claims, including class actions or fraud claims, and the ability of the SEC, the US Department of Justice and other authorities to bring and enforce actions against foreign issuers or foreign persons is limited.

Individual non-U.S. economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product, rate of inflation, capital reinvestment, resources, self- sufficiency and balance of payments position. Other countries' financial infrastructure or settlement systems may be less developed than those of the United States. The securities markets, values of securities, yields and risks associated with non-U.S. securities markets may change independently of each other. Also, non-U.S. securities and dividends and interest payable on those securities could be subject to withholding and other foreign taxes. Non-U.S. securities often trade with less frequency and volume than domestic securities and therefore may exhibit greater price volatility. Investments in non-U.S. securities may also involve higher custodial costs than domestic investments and additional transaction costs with respect to foreign currency conversions. Changes in foreign exchange rates also will affect the value of securities denominated or quoted in foreign currencies. The currencies of non-U.S. countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by a fund.

Member States of the European Union recently put in place new laws and regulations to implement the second Markets in Financial Instruments Directive ("MiFID II") and the related Markets in Financial Instruments Regulation ("MiFIR"). These impose new regulatory obligations and costs, among other things with respect to the processes and conditions under which global asset managers such as Allianz Global Investors, an affiliate of AllianzGI U.S., acquire investment research. Notably, investment managers subject to MiFID II may not receive investment research from brokers unless the investment manager pays for such research directly from its own resources, or from a separate, dedicated account paid for with client funds with client permission (or a combination of these methods). Although the subadviser and the Trust are both organized in the U.S., they may be affected by MiFID II in several potential scenarios, including, without limitation, where: the subadviser seeks to aggregate trades on behalf of the Trust with those of vehicles that are directly subject to MiFID II; the subadviser seeks to use brokers based in the European Union; and/or the subadviser or the Trust make use of advisory personnel who are subject to European Union regulation.

#### Operational
An investment in a fund, like any mutual fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a fund. While the funds seek to minimize such events through controls and oversight, there may still be failures that could cause losses to a fund.

#### U.S. and Foreign Government Obligations
Obligations issued or guaranteed by the U.S. Government, its agencies, authorities and instrumentalities and backed by the full faith and credit of the United States only guarantee principal and interest will be timely paid to holders of the securities. The entities do not guarantee that the value of fund shares will increase, and in fact, the market values of such obligations may fluctuate. In addition, not all U.S. Government securities are backed by the full faith and credit of the United States; some are the obligation solely of the entity through which they are issued. There is no guarantee that the U.S. Government would provide financial support to its agencies and instrumentalities if not required to do so by law. Foreign obligations may not be backed by the government of the issuing country, and are subject to foreign investing risks.

#### Variable and Floating Rate Securities
Variable- and floating-rate securities provide for a periodic adjustment in the interest rate paid on the obligations. If a fund invests in floating-rate debt instruments ("floaters") or engages in credit-spread trades, it may gain a certain degree of protection against rises in interest rates, but will participate in any declines in interest rates as well. This is because variable- and floating-rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating-rate securities will not generally increase in value if interest rates decline. The funds may also invest in inverse floating-rate debt instruments ("inverse floaters"). An inverse floater may exhibit greater price volatility than a fixed-rate obligation of similar credit quality. When a fund holds variable- or floating-rate securities, a decrease (or, in the case of inverse floating-rate securities, an increase) in market interest rates will adversely affect the income received from such securities and the net asset value of the fund's shares. Certain of a fund's investments, including variable- and floating-rate securities, may require the fund to accrue and distribute income not yet received. As a result, in order to generate cash to make the requisite distributions, the fund may be required to sell securities in its portfolio that it would otherwise have continued to hold.

#### When-Issued, Delayed Delivery and Forward Commitment Transactions
Each fund may purchase securities which it is eligible to purchase on a when-issued basis, may purchase and sell such securities for delayed delivery and may make contracts to purchase such securities for a fixed price at a future date beyond normal settlement time (forward commitments). When-issued transactions, delayed delivery purchases and forward commitments involve a risk of loss if the value of the securities declines prior to the settlement date. This risk is in addition to the risk that the fund's other assets will decline in value. Therefore, these transactions may result in a form of leverage and increase a fund's overall

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investment exposure. Typically, no income accrues on securities a fund has committed to purchase prior to the time delivery of the securities is made, although a fund may earn income on securities it has segregated to cover these positions.

*The funds may buy other types of securities or employ other portfolio management techniques. Please refer to the SAI for more detailed information about these and other investment techniques of the funds.*

**Pricing of Fund Shares**

#### How is the Share Price determined?
The Board of Trustees has adopted valuation policy and approved procedures for determining the value of investments of each Fund. Pursuant to the valuation policy and Rule 2a-5 under the 1940 Act, the Board of Trustees has designated the Adviser as its "valuation designee" for fair value determinations.

Each fund calculates a share price for each class of its shares. The share price (net asset value or "NAV") for each class is based on the net assets of the fund and the number of outstanding shares of that class. In general, each fund calculates a share price for each class by:

 adding the values of all securities and other assets of the fund;

 subtracting liabilities; and

 dividing the result by the total number of outstanding shares of that class.

*Assets*: 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. Shares of other investment companies are valued at such companies' NAVs. Debt instruments, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. Other assets, such as accrued interest, accrued dividends and cash are also included in determining the fund's NAV. As required, some securities and assets are valued at fair value as determined by the Adviser.

For the Virtus Global Allocation Fund, the fund's assets may consist primarily of shares of underlying mutual funds, if any, which are valued at their respective NAVs, and ETFs, which are valued as of the close of regular trading on the NYSE each business day. To determine NAV, the fund and each underlying mutual fund values its assets at market value. Equity securities held by the underlying affiliated mutual funds or directly by the funds 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 held by the underlying affiliated mutual funds or directly by the funds are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. Securities held by any underlying unaffiliated mutual funds will be valued as set forth in the respective prospectuses of the underlying unaffiliated funds. As required, some securities and assets held by any underlying affiliated mutual funds or directly by the funds are valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees. Other assets, such as accrued interest, accrued dividends and cash are also included in determining the fund's NAV.

*Liabilities*: Accrued liabilities for class-specific expenses (if any), distribution fees, service fees and other liabilities are deducted from the assets of each class. Accrued expenses and liabilities that are not class-specific (such as management fees) are allocated to each class in proportion to each class's net assets except where an alternative allocation can be more appropriately made.

*Net Asset Value (NAV):* The liabilities allocated to a class are deducted from the proportionate interest of such class in the assets of the applicable fund. The resulting amount for each class is then divided by the number of shares outstanding of that class to produce each class's NAV per share.

The NAV per share of each class of each fund is determined as of the close of regular trading (generally 4:00 PM Eastern Time) on days when the New York Stock Exchange ("NYSE") is open for trading. A fund will not calculate its NAV per share class on days when the NYSE is closed for trading. If a fund (or underlying fund, as applicable) holds securities that are traded on foreign exchanges that trade on weekends or other holidays when the funds do not price their shares, the NAV of the fund's shares may change on days when shareholders will not be able to purchase or redeem the fund's shares.

#### How are securities fair valued?
If market quotations are not readily available or available prices are not reliable, the funds determine a "fair value" for an investment according to policies and procedures approved by the Board of Trustees. The types of assets for which such pricing might be required include: (i) securities whose trading has been suspended; (ii) securities where the trading market is unusually thin or trades have been infrequent; (iii) debt instruments that have recently gone into default and for which there is no current market quotation; (iv) a security whose market price is not available from an independent pricing source and for which otherwise reliable quotes are not available; (v) securities of an issuer that has entered into a restructuring; (vi) a security whose price as provided by any pricing source does not, in the opinion of the adviser/subadviser, reflect the security's market value; (vii) foreign securities subject to trading collars for which no or limited trading takes place; (viii) securities where the market quotations are not readily available as a result of "significant" events; and (ix) securities whose principal exchange or trading market is closed for an entire business day on which a fund needs to determine its NAV. This list is not inclusive of all situations that may require a security to be fair valued, nor is it intended to be conclusive in determining whether a specific event requires fair valuation.

The value of any portfolio security held by a fund for which market quotations are not readily available shall be determined in good faith and in a manner that assesses the security's "fair value" on the valuation date (i.e., the amount that the fund might reasonably expect to receive for the security upon its current sale), based on a consideration of all available facts and all available information, including, but not limited to, the following: (i) the fundamental analytical data relating to the investment; (ii) the value of other relevant financial instruments, including derivative securities, traded on other markets or among dealers; (iii) an evaluation of the forces which influence the market in which these securities are purchased and sold (e.g., the existence of merger proposals or tender offers that might affect the value of the security); (iv) the type of the security; (v) the size of the holding; (vi) the initial cost of the security; (vii) trading volumes on markets, exchanges or among broker-dealers; (viii) price quotes from dealers and/or pricing services; (ix) values of baskets of securities traded on other markets, exchanges, or among dealers; (x) changes in interest rates; (xi) information obtained from the issuer, analysts, other financial institutions and/or the appropriate stock exchange (for exchange traded securities); (xii) an analysis of the company's financial statements; (xiii) government (domestic or foreign) actions or

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pronouncements; (xiv) recent news about the security or issuer; (xv) whether two or more dealers with whom the adviser/subadviser regularly effects trades are willing to purchase or sell the security at comparable prices; and (xvi) other news events or relevant matters.

Certain non-U.S. securities 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 non-U.S. markets close (where the security is principally traded) and the time that a fund calculates its NAV at the close of regular trading on the NYSE (generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases, the funds fair value non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes, as well as prices for similar securities. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

The value of a security, as determined using the fair value process, may not reflect such security's market value.

#### At what price are shares purchased?
All investments received by the funds' authorized agents in good order prior to the close of regular trading on the NYSE (generally 4:00 PM Eastern Time) will be executed based on that day's NAV; investments received by the funds' authorized agent in good order after the close of regular trading on the NYSE will be executed based on the next business day's NAV. Shares credited to your account from the reinvestment of a fund's distributions will be in full and fractional shares that are purchased at the closing NAV on the next business day on which the fund's NAV is calculated following the dividend record date.

**Sales Charges**

An investor may be required to pay commissions and/or other forms of compensation to a broker for transactions in any share class, which are not reflected in the disclosure in this section.

#### What are the classes and how do they differ?
Each fund offers multiple classes of shares. Each class of shares has different sales and distribution charges. (See "Fund Fees and Expenses" in each fund's "Fund Summary," previously in this prospectus.) For certain classes of shares, the funds have adopted distribution and service plans allowed under Rule 12b-1 of the Investment Company Act of 1940, as amended, that authorize the funds to pay distribution and service fees ("Rule 12b-1 Fees") for the sale of their shares and for services provided to shareholders.

The Rule 12b-1 Fees for each class of each fund are as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **Class A Shares** | **Class C Shares** | **Institutional Class Shares** | **Class P Shares** | **Class R6 Shares** | **Administrative Class Shares** |
| Virtus Convertible Fund | 0.25% | 1.00% |  |  |  | 0.25% |
| Virtus Duff & Phelps Water Fund | 0.25% | 1.00% |  |  |  |  |
| Virtus Global Allocation Fund | 0.25% | 1.00% |  |  |  | 0.25% |
| Virtus International Small-Cap Fund | 0.25% | 1.00% |  |  |  |  |
| Virtus Newfleet Short Duration High Income Fund | 0.25% | 0.50% |  |  |  |  |
| Virtus NFJ Emerging Markets Value Fund | 0.25% | 1.00% |  |  |  |  |
| Virtus NFJ Global Sustainability Fund | 0.25% |  |  |  |  |  |
| Virtus Seix High Yield Income Fund | 0.25% | 0.90% |  |  |  | 0.25% |

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#### Service Fees – Class P Shares.
The Trust has adopted an Administrative Services Plan for Class P shares of the funds. The Plan allows a fund to use its Class P assets to pay financial intermediaries that provide services relating to Class P shares. The Administrative Services Plan permits payments for the provision of certain administrative, recordkeeping and other services to Class P shareholders. The Plan permits a fund to make service fee payments at an annual rate of up to 0.10% of the fund's average daily net assets attributable to its Class P shares. Because these fees are paid out of a fund's Class P assets on an ongoing basis, over time they will increase the cost of an investment in Class P shares.

#### What arrangement is best for you?
The different classes of shares permit you to choose the method of purchasing shares that is most beneficial to you. In choosing a class of shares, consider the amount of your investment, the length of time you expect to hold the shares, whether you decide to receive distributions in cash or to reinvest them in additional shares, and any other personal circumstances. Depending upon these considerations, the accumulated distribution and service fees and contingent deferred sales charges of one class of shares may be more or less than the initial sales charge and accumulated distribution and service fees of another class of shares bought at the same time. Because distribution and service fees are paid out of a fund's assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.

Your financial representative should recommend only those arrangements that are appropriate for you based on known information. In certain instances, you may be entitled to a reduction or waiver of sales charges. For instance, you may be entitled to a sales charge discount on Class A Shares if you purchase more than certain breakpoints.

To determine your eligibility for a sales charge discount on Class A Shares, you may aggregate all of your accounts (including joint accounts, retirement accounts such as individual retirement accounts ("IRAs"), non-IRAs, etc.) and those of your spouse, domestic partner, children and minor grandchildren.

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The availability of certain sales charge waivers and discounts may depend on whether you purchase your shares directly from the fund or through a financial intermediary. Different intermediaries may impose different sales charges (including partial reduction in or waivers of sales charges) other than those listed in this section. Such intermediary-specific sales charge variations are described in Appendix A to this prospectus, entitled "Intermediary Sales Charges Discounts and Waivers." Appendix A is incorporated herein by reference and is legally part of this prospectus.

Your financial representative may request that you provide an account statement or other holdings information to determine your eligibility for a breakpoint and/or waiver and to make certain all involved parties have the necessary data. In all instances, it is the purchaser's responsibility to notify the fund or the purchaser's financial representative at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts. For waivers and discounts not available through a particular intermediary, in order to receive these waivers or discounts shareholders will have to purchase fund shares through another intermediary offering such waivers or discounts or directly from the fund if the fund offers such waivers or discounts.

Additional information about the classes of shares offered, sales charges, breakpoints and discounts follows in this section and also may be found in the SAI in the section entitled "How to Buy Shares." Intermediary-specific sales charge variations are described in Appendix A to this prospectus, entitled "Intermediary Sales Charges Discounts and Waivers." This information is available free of charge, and in a clear and prominent format, at the Individual Investors section of virtus.com. Please be sure that you fully understand these choices before investing. If you or your financial representative requires additional assistance, you may also contact Virtus Fund Services by calling toll-free 800-243-1574.

**Class A Shares (all funds).** If you purchase Class A Shares, you will pay a sales charge at the time of purchase equal to the following: for Virtus Seix High Yield Income Fund, 3.75% of the offering price, Virtus Newfleet Short Duration High Income Fund, 2.25% of the offering price, for all other funds, 5.50% of the offering price. The sales charge may be reduced or waived under certain conditions. (See "Initial Sales Charge Alternative—Class A Shares" and "Class A Sales Charge Reductions and Waivers" below.) Generally, Class A Shares are not subject to any charges by the fund when redeemed; however, with respect to all funds other than Virtus Newfleet Short Duration High Income Fund and Virtus Seix High Yield Income Fund, you may pay a 1% contingent deferred sales charge ("CDSC") on certain redemptions of purchases of $1,000,000 or more of Class A Shares within 18 months of a finder's fee being paid on such shares. The CDSC may be imposed on redemptions within 18 months of a finder's fee being paid. With respect to Virtus Newfleet Short Duration High Income Fund, you may pay a 0.50% CDSC if you purchase $250,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 12 months after your initial purchase. With respect to Virtus Seix High Yield Income Fund, you may pay a 0.50% CDSC if you purchase $1,000,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 18 months after your initial purchase. The Distributor may pay broker-dealers a finder's fee for Class A Share purchases in excess $1 million. The 12- or 18-month period, as applicable, begins on the last day of the month preceding the month in which the purchase was made, and shares not subject to a finder's fee will be deemed to be redeemed first. Class A Shares have lower distribution and service fees (0.25%) and generally pay higher dividends than Class C Shares. If you transact in Class A Shares through a financial intermediary, your financial intermediary may charge you a fee outside of the fund, such as brokerage commission or an investment advisory fee. You should consult your financial intermediary regarding the different share classes available to you, how their fees and expenses differ, and whether the fees charged by your financial intermediary differ depending upon which share class you choose.

**Class C Shares (not offered by Virtus NFJ Global Sustainability Fund).** If you purchase Class C Shares, you will not pay a sales charge at the time of purchase. If you sell your Class C Shares within the first year after they are purchased, you will pay a deferred sales charge of 1%. (See "Deferred Sales Charge Alternative— Class C Shares" below.) Class C Shares have higher distribution and services fees (1.00%) and pay lower dividends than Class A Shares. For Virtus Newfleet Short Duration High Income Fund, the distribution and services fees are 0.50%. For Virtus Seix High Yield Income Fund, the distribution and services fees are 0.90%. With certain exceptions, Class C Shares will convert to Class A Shares after eight years, thus reducing future annual expenses. If an investor intends to purchase greater than $999,999 of Class C shares, (except of the Virtus Newfleet Short Duration High Income Fund), and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, thus reducing expenses. If an investor intends to purchase greater than $249,999 of Class C shares of the Virtus Newfleet Short Duration High Income Fund, and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, thus reducing expenses. The funds may refuse any order to purchase shares. If you transact in Class C Shares through a financial intermediary, your financial intermediary may charge you a fee outside of the fund, such as brokerage commission or an investment advisory fee. You should consult your financial intermediary regarding the different share classes available to you, how their fees and expenses differ, and whether the fees charged by your financial intermediary differ depending upon which share class you choose.

**Institutional Class Shares (all funds).** Institutional Class Shares are offered primarily to clients of financial intermediaries that (i) charge such clients an ongoing fee for advisory, investment, consulting, or similar services; or (ii) have entered into an agreement with the funds' distributor to offer Institutional Class Shares through a no-load network or platform. Such clients may include pension and profit sharing plans, other employee benefit trusts, endowments, foundations and corporations. Institutional Class Shares are also offered to private and institutional clients of, or referred by, the adviser, a subadviser or their affiliates, and to Trustees of the funds and trustees/directors of affiliated open- and closed-end funds, and directors, officers and employees of Virtus and its affiliates. If you are eligible to purchase and do purchase Institutional Class Shares, you will pay no sales charge at any time. There are no distribution and service fees applicable to Institutional Class Shares. If you transact in Institutional Class Shares through a financial intermediary, your financial intermediary may charge you a fee outside of the fund, such as brokerage commission or an investment advisory fee. You should consult your financial intermediary regarding the different share classes available to you, how their fees and expenses differ, and whether the fees charged by your financial intermediary differ depending upon which share class you choose.

**Class R6 Shares (all funds other than Virtus Duff & Phelps Water Fund, Virtus NFJ Emerging Markets Value Fund, Virtus NFJ Global Sustainability Fund, and Virtus Seix High Yield Income Fund).** Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 Shares): (i) qualified retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; (vi) 529 portfolios that are advised or sub-advised by Virtus affiliates; and (vii) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. In addition, without a minimum initial investment requirement, Class R6 Shares are available

<br> Virtus Mutual Funds 75

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to any trustee of the Virtus Funds and trustees/directors of affiliated open- and closed-end funds, directors, officers and employees of Virtus and its affiliates, and a spouse or domestic partner, child or minor grandchild of any such qualifying individual (in each case either individually or jointly with other investors), provided in each case that those shares are held directly with the Transfer Agent or in an eligible account. The minimum initial investment amount may be waived subject to the fund's discretion. If you are eligible to purchase and do purchase Class R6 Shares, you will pay no sales charge at any time. There are no distribution and service fees applicable to Class R6 Shares. If you transact in Class R6 Shares through a financial intermediary, your financial intermediary may charge you a fee outside of the fund, such as brokerage commission or an investment advisory fee. You should consult your financial intermediary regarding the different share classes available to you, how their fees and expenses differ, and whether the fees charged by your financial intermediary differ depending upon which share class you choose.

**Initial Sales Charge Alternative—Class A Shares.** The public offering price of Class A Shares is the NAV plus a sales charge that varies depending on the size of your purchase. (See "Class A Shares—Reduced Initial Sales Charges" in the SAI.) Shares purchased based on the automatic reinvestment of income dividends or capital gain distributions are not subject to any sales charges. The sales charge is divided between your investment dealer and the fund's underwriter, VP Distributors, LLC ("VP Distributors" or the "Distributor").

#### Sales Charge you may pay to purchase Class A Shares

#### Virtus Newfleet Short Duration High Income Fund

---

| | | |
|:---|:---|:---|
|  | **Sales Charge as a percentage of** | **Sales Charge as a percentage of** |
| **Amount of Transaction at Offering Price** | **Offering Price** | **Net Amount Invested** |
| Under $100,000 | 2.25% | 2.30% |
| $100,000 but under $249,999 | 1.25 | 1.27 |
| $250,000 or more |  |  |

---

#### Virtus Seix High Yield Income Fund

---

| | | |
|:---|:---|:---|
|  | **Sales Charge as a percentage of** | **Sales Charge as a percentage of** |
| **Amount of Transaction at Offering Price** | **Offering Price** | **Amount Invested** |
| Under $50,000 | 3.75% | 3.90% |
| $50,000 but under $100,000 | 3.50 | 3.63 |
| $100,000 but under $250,000 | 3.25 | 3.36 |
| $250,000 but under $500,000 | 2.25 | 2.30 |
| $500,000 but under $1,000,000 | 1.75 | 1.78 |
| $1,000,000 or more |  |  |

---

#### All Other Funds

---

| | | |
|:---|:---|:---|
|  | **Sales Charge as a percentage of** | **Sales Charge as a percentage of** |
| **Amount of Transaction at Offering Price** | **Offering Price** | **Amount Invested** |
| Under $50,000 | 5.50% | 5.82% |
| $50,000 but under $100,000 | 4.50 | 4.71 |
| $100,000 but under $250,000 | 3.50 | 3.63 |
| $250,000 but under $500,000 | 2.50 | 2.56 |
| $500,000 but under $1,000,000 | 2.00 | 2.04 |
| $1,000,000 or more |  |  |

---

Each fund receives the entire NAV of its Class A shares purchased by investors (i.e., the gross purchase price minus the applicable sales charge). The Distributor receives the sales charge shown above less any applicable discount or commission "reallowed" to participating brokers in the amounts indicated in the table above. The Distributor may, however, elect to reallow the entire sales charge to participating brokers for all sales with respect to which orders are placed with the Distributor for any particular fund during a particular period. During such periods as may from time to time be designated by the Distributor, the Distributor will pay an additional amount of up to 0.50% of the purchase price on sales of Class A shares of all or selected funds purchased to each participating broker that obtains purchase orders in amounts exceeding thresholds established from time to time by the Distributor.

#### Class A Sales Charge Reductions and Waivers
Investors may qualify for reduced or no initial (front-end) sales charges, as shown in the table above, through utilization of Combination Purchase Privilege, Letter of Intent, Right of Accumulation, Gifting of Shares, Purchase by Associations or the Account Reinstatement Privilege. These programs are summarized below and are described in greater detail in the SAI. These reductions and waivers do not apply to any CDSC that may be applied to certain Class A Share redemptions.

*Combination Purchase Privilege.* Your purchase of any class of shares of these funds or any other Virtus Mutual Fund, (other than Class A Shares of Virtus Seix U.S. Government Securities Ultra-Short Bond Fund or Virtus Seix Ultra-Short Bond Fund (the "Ultra-Short Bond Funds")) if made at the same time by the same person, will be added together with any existing Virtus Mutual Fund account values to determine whether the combined sum entitles you to an immediate reduction in sales charges. A "person" is defined in this and the following sections as either: (a) any individual, his or her spouse or domestic partner, children and minor grandchildren purchasing shares for his, her or their own account (including an IRA account) including his, her or their own sole proprietorship or trust where any of the above is a named beneficiary; (b) a trustee or other fiduciary purchasing for a single trust, estate or single fiduciary account (even though more than one beneficiary may exist); (c) multiple accounts (up to 200) under a qualified employee benefit plan or administered by a third party administrator; or (d) trust companies, bank trust departments, registered investment advisers, and similar entities placing orders or providing administrative services with respect to

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accounts over which they exercise discretionary investment authority and which are held in a fiduciary, agency, custodial or similar capacity, provided all shares are held of record in the name, or nominee name, of the entity placing the order.

*Letter of Intent.* If you sign a Letter of Intent, your purchase of any class of shares of these funds or any other Virtus Mutual Fund, (other than Class A Shares of the Ultra-Short Bond Funds) if made by the same person within a 13-month period, will be added together to determine whether you are entitled to an immediate reduction in sales charges. Sales charges are reduced based on the overall amount you indicate that you will buy under the Letter of Intent. The Letter of Intent is a mutually non-binding arrangement between you and Virtus Mutual Funds. Shares worth 5% of the Letter of Intent amount will be held in escrow (while remaining registered in your name) to secure payment of the higher sales charges applicable to the shares actually purchased in the event the full intended amount is not purchased.

*Right of Accumulation*. The value of your account(s) in any class of shares of these funds or any other Virtus Mutual Fund, (other than Class A Shares of the Ultra-Short Bond Funds) if made over time by the same person, may be added together at the time of each purchase to determine whether the combined sum entitles you to a prospective reduction in sales charges. You must provide certain account information to Virtus Mutual Funds or their agents at the time of purchase to exercise this right.

*Gifting of Shares.* If you make a gift of shares of a Virtus Mutual Fund, upon your request you may combine purchases, if made at the same time, of any class of shares of these funds or any other Virtus Mutual Fund at the sales charge discount allowed for the combined purchase. The receiver of the gift may also be entitled to a prospective reduction in sales charges in accordance with the funds' right of accumulation or other provisions. You or the receiver of the gift must provide certain account information to Virtus Mutual Funds or their agents at the time of purchase to exercise this right.

*Purchase by Associations.* Certain groups or associations may be treated as a "person" and qualify for reduced Class A Share sales charges. The group or association must: (1) have been in existence for at least six months; (2) have a legitimate purpose other than to purchase mutual fund shares at a reduced sales charge; (3) work through an investment dealer; and (4) not be a group whose sole reason for existing is to consist of members who are credit card holders of a particular company, policyholders of an insurance company, customers of a bank or a broker-dealer or clients of an investment adviser.

*Account Reinstatement Privilege*. Subject to the funds' policies and procedures regarding market timing, for 180 days after you sell your Class A Shares on which you previously paid a sales charge, you may purchase Class A Shares of any Virtus Mutual Fund at NAV, with no sales charge, by reinvesting all or part of your proceeds, but not more.

*Sales at Net Asset Value*. In addition to the programs summarized above, the funds may sell their Class A Shares at NAV without an initial sales charge to certain types of accounts or account holders, as described below.

If you fall within any one of the following categories, you will not have to pay a sales charge on your purchase of Class A Shares, provided that such purchase is made upon the written assurance of the purchaser that the purchase is made for investment purposes and that the shares so acquired will not be resold except to the funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Trustee, director or officer of any Virtus Mutual Fund, or any other mutual fund advised, subadvised or distributed by the Adviser, Distributor or any of their corporate affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any director or officer, or any full-time employee or sales representative (for at least 90 days), of the applicable fund's Adviser, subadviser or Distributor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any private client of an Adviser or subadviser to any Virtus Mutual Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Registered representatives and employees of securities dealers with whom the Distributor has sales agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any qualified retirement plan exclusively for persons described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any officer, director or employee of a corporate affiliate of the Adviser, a subadviser or the Distributor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any spouse or domestic partner, child, parent, grandparent, brother or sister of any person named in (1), (2), (4) or (6) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Employee benefit plans for employees of the Adviser, Distributor and/or their corporate affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Any employee or agent who retires from the Distributor and/or their corporate affiliates or from Phoenix Life Insurance Company ("PNX"), as long as, with respect to PNX employees or agents, such individual was employed by PNX prior to December 31, 2008;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Any Virtus direct account held in the name of a qualified employee benefit plan, endowment fund or foundation if, on the date of the initial investment, the plan, fund or foundation has assets of $10,000,000 or more or at least 100 eligible employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Any person with a direct rollover transfer of shares from an established Virtus Mutual Fund or Virtus qualified plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Any state, county, city, department, authority or similar agency prohibited by law from paying a sales charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Any unallocated account held by a third party administrator, registered investment adviser, trust company, or bank trust department which exercises discretionary authority and holds the account in a fiduciary, agency, custodial or similar capacity, if in the aggregate such accounts held by such entity equal or exceed $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Any deferred compensation plan established for the benefit of any trustee or director of Virtus, any Virtus Mutual Fund, or any open-or closed-end fund advised, subadvised or distributed by the Adviser, the Distributor or any of their corporate affiliates.

If you fall within any one of the following categories, you also will not have to pay a sales charge on your purchase of Class A Shares:

<br> Virtus Mutual Funds 77

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Individuals purchasing through an account with an unaffiliated brokerage firm having an agreement with the Distributor to waive sales charges for its clients (see Appendix A to this prospectus for a description of broker-dealers offering various sales load waivers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Purchasers of Class A Shares bought through investment advisers and financial planners who charge an advisory, consulting or other fee for their services and buy shares for their own accounts or the accounts of their clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Retirement plans and deferred compensation plans and trusts used to fund those plans (including, for example, certain plans qualified or created under Sections 401(a), 403(b) or 457 of the Internal Revenue Code (the "Code")), and "rabbi trusts" that buy shares for their own accounts, in each case if those purchases are made through a broker or agent or other financial intermediary that has made special arrangements with the Distributor for such purchases; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Clients of investment professionals or financial planners who buy shares for their own accounts but only if their accounts are linked to a master account of their investment professional or financial planner on the books and records of the broker, agent or financial intermediary with which the Distributor has made such special arrangements. (See Appendix A to this prospectus for a description of broker-dealers offering various sales load waivers.) Each of the investors described in (15) through (18) may be charged a fee by the broker, agent or financial intermediary for purchasing shares.

#### CDSC you may pay on Class A Shares
Investors buying Class A Shares on which a finder's fee has been paid may incur a CDSC if they redeem their shares. The CDSC of 1.00% may be imposed on redemptions within 18 months of a finder's fee being paid. For Virtus Newfleet Short Duration High Income Fund, the CDSC may be imposed on redemptions within 12 months of a finder's fee being paid; for all other funds, the CDSC may be imposed on redemptions within 18 months of a finder's fee being paid. For Virtus fixed income funds, the CDSC is 0.50%; for all other Virtus Mutual Funds in this prospectus, the CDSC is 1.00%. The 12- or 18-month period, as applicable, begins on the last day of the month preceding the month in which the purchase was made, and shares not subject to a finder's fee will be deemed to be redeemed first. The CDSC will be multiplied by the then current market value or the initial cost of the shares being redeemed, whichever is less.

#### Deferred Sales Charge Alternative—Class C Shares
Class C Shares are purchased without an initial sales charge; however, shares sold within one year of purchase are subject to a CDSC of 1.00%. The sales charge will be multiplied by the then-current market value or the initial cost of the shares being redeemed, whichever is less. No sales charge will be imposed on increases in NAV or on shares purchased through the reinvestment of income dividends or capital gain distributions. To minimize the sales charge, shares not subject to any charge will be redeemed first, followed by shares held the longest. The date of purchase will be used to calculate the number of shares owned and time period held.

With certain exceptions, Class C Shares, and any reinvested dividends and other distributions paid on such shares, will automatically convert to Class A Shares after eight years. However, for investors invested in Class C Shares through a financial intermediary or recordkeeper, it is the responsibility of the financial intermediary or recordkeeper to ensure that the investor is credited with the proper holding period for the shares redeemed. The automatic conversion of Class C Shares to Class A Shares shall not apply to shares held through intermediaries or recordkeepers that do not track the length of time that a participant has held such shares or that are not otherwise able to operationally support the automatic conversion feature.

In addition, certain Class C Shares may be exchangeable in advance of the automatic conversion. If you hold your shares through a financial intermediary or recordkeeper, please contact your financial intermediary or recordkeeper for additional information. Class C Shares that have been held directly with the fund, and not through a financial intermediary, for fewer than the required number of years may be exchanged for Class A Shares at the fund's or transfer agent's discretion if (i) the Class C Shares are not subject to a CDSC, and (ii) a commission was not paid on the sale of such Class C Shares.

All conversions and exchanges from Class C Shares to Class A Shares will be on the basis of the relative NAVs per share, without the imposition of any sales load, fee or other charge. Automatic conversions of Class C shares to Class A shares will generally be processed monthly on or about the 10th day of the month, although for investors invested in Class C Shares through a financial intermediary or recordkeeper, it is the responsibility of the financial intermediary or recordkeeper to determine the timing of the conversions. As of the date of this Prospectus, conversions and exchanges from Class C Shares to Class A Shares of the same fund are not expected to be considered taxable events for Federal income tax purposes. Shareholders should consult their tax professionals regarding their own tax considerations.

#### Deferred Sales Charge you may pay to sell Class C Shares

---

| | | |
|:---|:---|:---|
| **Year** | **1** | **2+** |
| CDSC | 1% | 0% |

---

#### Class A Shares and Class C Shares CDSC Reductions and Waivers
The CDSC is waived on the redemption (sale) of Class A Shares and Class C Shares if the redemption is made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within one year of death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of the sole shareholder on an individual account,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) of a joint tenant where the surviving joint tenant is the deceased's spouse or domestic partner,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the beneficiary of a Uniform Gifts to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA) or other custodial account, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the "grantor" on a trust account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within one year of disability, as defined in Code Section 72(m)(7);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the funds' Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by 401(k) plans using an approved participant tracking system for participant hardships, death, disability or normal retirement, and loans which are subsequently repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) based on the exercise of exchange privileges among Class A Shares and Class C Shares of these funds or any of the Virtus Mutual Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) based on any direct rollover transfer of shares from an established Virtus Mutual Fund qualified plan into a Virtus Mutual Fund IRA by participants terminating from the qualified plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) based on the systematic withdrawal program, provided such withdrawals do not exceed more than 1% monthly or 3% quarterly of the aggregate net investments. (See "Systematic Withdrawal Program" in this SAI for additional information about these restrictions.)

If, as described in condition (a) above, an account is transferred to an account registered in the name of a deceased's estate, the CDSC will be waived on any redemption from the estate account occurring within one year of the death.

The availability of certain sales charge waivers and discounts may depend on whether you purchase your shares through a financial intermediary offering them. Different intermediaries may impose different sales charges (including partial reduction in or waivers of sales charges) other than those listed in this section, provided that they do not exceed the maximum sales charge listed. Such intermediary-specific sales charge variations are described in Appendix A to this prospectus, entitled "Intermediary Sales Charge Discounts and Waivers." Appendix A is incorporated herein by reference and is legally part of this prospectus.

#### Compensation to Dealers

#### Class A Shares, Class C Shares and Institutional Class Shares Only
Dealers with whom the Distributor has entered into sales agreements receive a discount or commission on Class A Shares as described below.

#### Virtus Newfleet Short Duration High Income Fund

---

| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a Percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount as a Percentage of Offering Price** |
| Under $100,000 | 2.25% | 2.30% | 2.00% |
| $100,000 but under $250,000 | 1.25 | 1.27 | 1.00 |
| $250,000 or more |  |  |  |

---

#### Virtus Seix High Yield Income Fund

---

| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a Percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount as a Percentage of Offering Price** |
| Under $50,000 | 3.75% | 3.90% | 3.25% |
| $50,000 but under $100,000 | 3.50 | 3.63 | 3.00 |
| $100,000 but under $250,000 | 3.25 | 3.36 | 2.75 |
| $250,000 but under $500,000 | 2.25 | 2.30 | 2.00 |
| $500,000 but under $1,000,000 | 1.75 | 1.78 | 1.50 |
| $1,000,000 or more |  |  |  |

---

#### All Other Funds

---

| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a Percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount as a Percentage of Offering Price** |
| Under $50,000 | 5.50% | 5.82% | 4.75% |
| $50,000 but under $100,000 | 4.50 | 4.71 | 4.00 |
| $100,000 but under $250,000 | 3.50 | 3.63 | 3.00 |
| $250,000 but under $500,000 | 2.50 | 2.56 | 2.00 |
| $500,000 but under $1,000,000 | 2.00 | 2.04 | 1.75 |
| $1,000,000 or more |  |  |  |

---

With respect to Class C Shares, the Distributor intends to pay investment dealers a sales commission of 1% of the sale price of Class C Shares sold by such dealers. Your broker, dealer or financial professional may also charge you additional commissions or fees for their services in selling shares to you provided they notify the Distributor of their intention to do so.

Dealers and other entities that enter into special arrangements with the Distributor or the funds' transfer agent, Virtus Fund Services, LLC (the "Transfer Agent"), may receive compensation for the sale and promotion of shares of these funds. Such fees are in addition to the sales commissions referenced above and may be based upon the amount of sales of fund shares by a dealer; the provision of assistance in marketing of fund shares; access to sales personnel and information

<br> Virtus Mutual Funds 79

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dissemination services; and other criteria as established by the Distributor. Depending on the nature of the services, these fees may be paid either from the funds through distribution fees, service fees or, in some cases, the Distributor may pay certain fees from its own profits and resources.

Dealers and other entities that enter into special arrangements with the Distributor or the Transfer Agent may receive compensation from or on behalf of the funds for providing certain recordkeeping and related services to the funds or their shareholders. These fees may also be referred to as shareholder accounting fees, administrative services fees, sub-transfer agent fees or networking fees. They are not for the sale, promotion or marketing of fund shares.

From its own profits and resources, the Distributor may, from time to time, make payments to qualified wholesalers, registered financial institutions and third party marketers for marketing support services and/or retention of assets. These payments are sometimes referred to as "revenue sharing." Among others, the Distributor has agreed to make such payments for marketing support services to Equitable Advisors, LLC. The Distributor may pay broker-dealers a finder's fee in an amount equal to 1.00% of eligible Class A Share purchases from $1,000,000 to $3,000,000, 0.50% on amounts of $3,000,001 to $10,000,000, and 0.25% on amounts greater than $10,000,000. Purchases of Class A Shares by an account in the name of a qualified employee benefit plan are eligible for a finder's fee only if such plan has at least 100 eligible employees. A CDSC may be imposed on certain redemptions of such Class A investments. A CDSC of 1.00% may be imposed on redemptions within 18 months of a finder's fee being paid. For purposes of determining the applicability of the CDSC, the 18-month period, as applicable, begins on the last day of the month preceding the month in which the purchase was made.The Distributor will also pay broker-dealers a service fee of 0.25% beginning in the thirteenth month following purchase of Class A Shares on which a finder's fee has been paid. (For the exact rate for your fund(s), please refer to the chart in the section of this prospectus entitled "Sales Charges" under "What are the classes and how do they differ?") VP Distributors reserves the right to discontinue or alter such fee payment plans at any time.

From its own resources or pursuant to the distribution and shareholder servicing plans, and subject to the dealers' prior approval, the Distributor may provide additional compensation to registered representatives of dealers in the form of travel expenses, meals, and lodging associated with training and educational meetings sponsored by the Distributor. The Distributor may also provide gifts amounting in value to less than $100, and occasional meals or entertainment, to registered representatives of dealers. Any such travel expenses, meals, lodging, gifts or entertainment paid will not be preconditioned upon the registered representatives' or dealers' achievement of a sales target. The Distributor may, from time to time, reallow the entire portion of the sales charge on Class A Shares which it normally retains to individual selling dealers. However, such additional reallowance generally will be made only when the selling dealer commits to substantial marketing support such as internal wholesaling through dedicated personnel, internal communications and mass mailings.

The Distributor has also agreed to pay fees to certain distributors for preferred marketing opportunities. These arrangements may be viewed as creating a conflict of interest between these distributors and investors. Investors should make due inquiry of their selling agents to ensure that they are receiving the requisite point of sale disclosures and appropriate recommendations free of any influence by reason of these arrangements.

The categories of payments the Distributor and/or the Transfer Agent may make to other parties are not mutually exclusive, and such parties may receive payments under more than one or all categories. These payments could be significant to a party receiving them, creating a conflict of interest for such party in making investment recommendations to investors. Investors should make due inquiry of any party recommending the funds for purchase to ensure that such investors are receiving the requisite point of sale disclosures and appropriate recommendations free of any influence by reason of these arrangements.

A document containing information about sales charges, including breakpoint (volume) discounts, is available free of charge on the Internet at *virtus.com*. In the Our Products section, go to the "Mutual Funds" tab and click on the link for Breakpoint (Volume) Discounts.

#### Class R6 Shares Only
No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from fund assets or the Distributor's or an affiliate's resources on sales of or investments in Class R6 Shares. Class R6 Shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments to brokers or other entities to assist in, or in connection with, the sale of the fund's shares.

**Your Account**

#### Opening an Account

#### Class A Shares, Class C Shares, Institutional Class Shares, Class P Shares and Administrative Class Shares
Your financial professional can assist you with your initial purchase as well as all phases of your investment program. If you are opening an account by yourself, please follow the instructions outlined below.

The funds have established the following preferred methods of payment for fund shares:

 Checks drawn on an account in the name of the investor and made payable to Virtus Mutual Funds;

 Checks drawn on an account in the name of the investor's company or employer and made payable to Virtus Mutual Funds; or

 Wire transfers or Automated Clearing House ("ACH") transfers from an account in the name of the investor, or the investor's company or employer.

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Payment in other forms may be accepted at the discretion of the funds; however, the funds generally do not accept such other forms of payment as cash equivalents (such as traveler's checks, cashier's checks, money orders or bank drafts), starter checks, credit card convenience checks, or certain third party checks. Please specify the name(s) of the fund or funds in which you would like to invest on the check or transfer instructions.

**To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. Accordingly, when you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may check the information you provide against publicly available databases, information obtained from consumer reporting agencies, other financial institutions or other sources. If, after reasonable effort, we cannot verify your identity, we reserve the right to close the account and redeem the shares at the NAV next calculated after the decision is made by us to close the account.**

#### Step 1
Your first choice will be the initial amount you intend to invest in each fund.

Minimum **initial** investments applicable to Class A and Class C Shares:

 $100 for individual retirement accounts ("IRAs"), accounts that use the systematic exchange privilege, or accounts that use the Systematic Purchase program. (See Investor Services and Other Information for additional details.)

 There is no initial dollar requirement for defined contribution plans, asset-based fee programs, profit-sharing plans, or employee benefit plans. There is also no minimum for reinvesting dividends and capital gains into another account.

 $2,500 for all other accounts.

Minimum **additional** investments applicable to Class A and Class C Shares:

 $100 for any account.

 There is no minimum additional investment requirement for defined contribution plans, asset-based fee programs, profit-sharing plans, or employee benefit plans. There is also no minimum additional investment requirement for reinvesting dividends and capital gains into another account.

Minimum **initial** investments applicable to Institutional Class Shares, Class P Shares and Administrative Class Shares:

 $1,000,000 for any account for qualified investors. (Call Virtus Fund Services at 800-243-1574 for additional details.)

There is no minimum additional investment requirement applicable to Institutional Class Shares, Class P Shares and Administrative Class Shares.

#### Step 2
Your second choice will be what class of shares to buy. Each share class, except Institutional Class, Class P, Administrative Class and Class R6 Shares, has different sales and distribution charges. Because all future investments in your account will be made in the share class you choose when you open your account, you should make your decision carefully. Your financial professional can help you pick the share class that makes the most sense for your situation.

#### Step 3
Your next choice will be how you want to receive any dividends and capital gain distributions. Your options are:

 Receive both dividends and capital gain distributions in additional shares;

 Receive dividends in additional shares and capital gain distributions in cash;

 Receive dividends in cash and capital gain distributions in additional shares; or

 Receive both dividends and capital gain distributions in cash. No interest will be paid on uncashed distribution checks.

#### Class R6 Shares Only
If you are investing through a qualified retirement plan, bank or trust company, insurance company or other qualifying financial institution, registered investment company or non-qualified deferred compensation plan, your financial institution or financial intermediary will provide you with the information you need to open an account and buy Class R6 Shares. If you are a qualified institutional investor, or qualified individual investor as described under the heading "What arrangement is best for you?," please refer to the instructions above for Class A Shares, Class C Shares, Class P Shares, Administrative Class Shares and Institutional Class Shares, except for the application of any minimum initial and/or additional purchase requirement.

#### All Share Classes
The funds reserve the right to refuse any purchase order for any reason. The funds will notify the investor of any such rejection in accordance with industry and regulatory standards, which is generally within three business days. The funds further reserve the right to close an account (or to take such other steps as the funds or their agents deem reasonable) for any lawful reason, including but not limited to the suspicion of fraud or other illegal activity in connection with the account.

#### Listing a Trusted Contact
For shareholders who have a mutual fund account directly with Virtus, you have the option of adding a Trusted Contact to our records. The Trusted Contact is someone you authorize us to contact to address any concerns about fraudulent activity or financial exploitation; to inquire about your status as an active shareholder; and/or to disclose account activity or account details if necessary for protecting your account assets.

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The Trusted Contact is not permitted to execute transactions or make changes to your account. Other than the shareholder, only the named financial professional of record on the account, or a Power of Attorney/guardian/ conservator who is named on the account or has submitted instructions, signed in capacity with a Medallion Guarantee, are permitted to execute transactions or make account changes. Your Trusted Contact must be at least 18 years of age, and should not be your financial professional of record or an individual who is already named on the account.

**How to Buy Shares**

#### IMPORTANT INFORMATION FOR INVESTORS

#### Class A Shares, Class C Shares, Institutional Class Shares, Class P Shares and Administrative Class Shares

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| | |
|:---|:---|
|  | **To Open An Account** |
| Through a financial professional | Contact your financial professional. Some financial professionals may charge a fee and may set different minimum investments or limitations on buying shares. |
| Through the mail | Complete a new account application and send it with a check payable to the fund. Mail them to: Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. |
| Through express delivery | Complete a new account application and send it with a check payable to the fund. Send them to: Virtus Mutual Funds, 4400 Computer Drive, Westborough, MA 01581-1722. |
| By Federal Funds wire | Call us at 800-243-1574 (press 1, then 0). |
| By Systematic Purchase | Complete the appropriate section on the application and send it with your initial investment payable to the fund. Mail them to: Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. |
| By telephone exchange | Call us at 800-243-1574 (press 1, then 0). |

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#### Class R6 Shares Only
If you are investing through a qualified retirement plan, bank or trust company, insurance company or other qualifying financial institution, registered investment company or non-qualified deferred compensation plan, your financial institution or financial intermediary will provide you with the information you need to buy Class R6 Shares. If you are a qualified institutional investor, or qualified individual investor as described under the heading "What arrangement is best for you?," please refer to the instructions above for Class A Shares, Class C Shares, Class P Shares, Administrative Class Shares and Institutional Class Shares.

#### All Share Classes
The price at which a purchase is effected is based on the NAV next determined after receipt of a purchase order in good order by the funds' Transfer Agent or an authorized agent. A purchase order is generally in "good order" if an acceptable form of payment accompanies the purchase order and the order includes the appropriate application(s) and/or other form(s) and any supporting legal documentation required by the funds' Transfer Agent or an authorized agent, each in legible form. However, the funds, their Transfer Agent or other authorized agent may consider a request to be not in good order even after receiving all required information if any of them suspects that the request is fraudulent or otherwise not valid.

Each fund reserves the right to refuse any order that may disrupt the efficient management of that fund.

**How to Sell Shares**

#### Class A Shares, Class C Shares, Institutional Class Shares, Class P Shares and Administrative Class Shares

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| | |
|:---|:---|
|  | To Sell Shares |
| Through a financial professional | Contact your financial professional. Some financial professionals may charge a fee and may set different minimums on redemptions of accounts. |
| Through the mail | Send a letter of instruction to: Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. Be sure to include the registered owner's name, fund and account number and number of shares or dollar value you wish to sell. |
| Through express delivery | Send a letter of instruction to: Virtus Mutual Funds, 4400 Computer Drive, Westborough, MA 01581-1722. Be sure to include the registered owner's name, fund and account number and number of shares or dollar value you wish to sell. |
| By telephone | For sales up to $50,000, requests can be made by calling 800-243-1574. |
| By telephone exchange | Call us at 800-243-1574 (press 1, then 0). |

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#### Class R6 Shares Only
If you are investing through a qualified retirement plan, bank or trust company, insurance company or other qualifying financial institution, registered investment company or non-qualified deferred compensation plan, your financial institution or financial intermediary will provide you with the information you need to know when selling Class R6 Shares. If you are a qualified institutional investor, or qualified individual investor as described under the heading "What arrangement is best for you?," please refer to the instructions above for Class A Shares, Class C Shares, Class P Shares, Administrative Class Shares and Institutional Class Shares.

#### All Share Classes
You have the right to have the funds buy back shares at the NAV next determined after receipt of a redemption request in good order by the funds' Transfer Agent or an authorized agent. In the case of a Class C Share redemption, and certain Class A Share redemptions, you will be subject to the applicable contingent deferred sales charge, if any, for such shares. Subject to certain restrictions, shares may be redeemed by telephone or in writing. In addition, shares may be sold through securities dealers, brokers or agents who may charge customary commissions or fees for their services. The funds do not charge any redemption fees.

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Regardless of the method used by the funds for payment (e.g., check, wire or electronic transfer (ACH)), payment for shares redeemed will normally be sent one business day after the request is received in good order by the transfer agent, or one business day after the trade has settled for trades submitted through the NSCC, but will in any case be made within seven days after tender. The funds expect to meet redemption requests, both under normal circumstances and during periods of stressed market conditions, by using cash, by selling portfolio assets to generate cash, or by borrowing funds under a line of credit, subject to availability of capacity in such line of credit, or participating in an interfund lending program in reliance on exemptive relief from the SEC. The right to redeem shares may be suspended and payment postponed during periods when the NYSE is closed, other than customary weekend and holiday closings, or if permitted by rules of the SEC, during periods when trading on the NYSE is restricted or during any emergency which makes it impracticable for a fund to dispose of its securities or to determine fairly the value of its net assets or during any other period permitted by order of the SEC for the protection of investors. Furthermore, the shareholder will not be entitled to and the Transfer Agent will not mail redemption proceeds until checks received for shares purchased have cleared, which may take up to 15 days.

If you are 65 years of age or older, or if we have reason to believe you have a mental or physical impairment that restricts you from protecting your own financial interests, we may temporarily delay the release of redemption proceeds from your account if we reasonably believe that you have been the victim of actual or attempted financial exploitation.

Notice of this temporary delay will be provided to you, and the delay will be for no more than 15 business days while we conduct a review of the suspected financial exploitation. Contacting your Trusted Contact, if you have selected one, may be part of the review. (See "Listing a Trusted Contact" in the section, "Your Account".)

We may delay an additional 10 business days if we reasonably believe that actual or attempted financial exploitation has occurred or will occur. At the expiration of the delay, if we have not concluded that such exploitation has occurred, the proceeds will be released to you.

**Things You Should Know When Selling Shares**

You may realize a taxable gain or loss (for federal income tax purposes) if you redeem or exchange shares of the funds.

#### Class A Shares, Class C Shares, Institutional Class Shares, Class P Shares and Administrative Class Shares
Redemption requests will not be honored until all required documents, in proper form, have been received. Additional documentation will be required for redemptions by organizations, fiduciaries, or retirement plans, or if a redemption is requested by anyone but the shareholder(s) of record. Even after all required documents have been received, a redemption request may not be considered in good order by the funds, their Transfer Agent or other authorized agents if any of them suspects that the request is fraudulent or otherwise not valid. To avoid delay in redemption or transfer, shareholders having questions about specific requirements should contact the funds' Transfer Agent at 800-243-1574.

Transfers between broker-dealer "street" accounts are governed by the accepting broker-dealer. Questions regarding this type of transfer should be directed to your financial professional.

As stated in the applicable account applications, accounts associated with certain types of retirement plans and individual retirement accounts may incur fees payable to the Transfer Agent in the event of redeeming an account in full. Shareholders with questions about this should contact the funds' Transfer Agent at 800-243-1574.

#### Redemptions by Mail
 If you are selling shares held individually, jointly, or as custodian under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act:

Send a clear letter of instruction if both of these apply:

 The proceeds do not exceed $50,000.

 The proceeds are payable to the registered owner at the address on record.

Send a clear letter of instructions with a signature guarantee when any of these apply:

 You are selling more than $50,000 worth of shares.

 The name or address on the account has changed within the last 30 days.

 You want the proceeds to go to a different name or address than on the account.

 If you are selling shares held in a corporate or fiduciary account, please contact the funds' Transfer Agent at 800-243-1574.

**The signature guarantee, if required, must be a STAMP 2000 Medallion guarantee made by an eligible guarantor institution as defined by the funds' Transfer Agent in accordance with its signature guarantee procedures. Guarantees using previous technology medallions will not be accepted. As of the date of this prospectus, the Transfer Agent's signature guarantee procedures generally permit guarantees by banks, broker-dealers, credit unions, national securities exchanges, registered securities associations, clearing agencies and savings associations.**

#### Selling Shares by Telephone
The Transfer Agent will use reasonable procedures to confirm that telephone instructions are genuine. Address and bank account information are verified, redemption instructions are taped, and all redemptions are confirmed in writing.

The individual investor bears the risk from instructions given by an unauthorized third party that the Transfer Agent reasonably believed to be genuine. The funds, their Transfer Agent and their other authorized agents will not be liable for any loss, liability, cost or expense resulting from acting upon telephone instructions that are reasonably believed to be genuine.

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The Transfer Agent may modify or terminate the telephone redemption privilege at any time with 60 days' notice to shareholders, except for instances of disruptive trading or market timing; in such cases, the telephone redemption privilege may be suspended immediately, followed by written notice. (See "Disruptive Trading and Market Timing" in this prospectus.)

During times of drastic economic or market changes, telephone redemptions may be difficult to make or temporarily suspended; however, shareholders would be able to make redemptions through other methods described above.

#### Class R6 Shares Only
If you are investing through a qualified retirement plan, bank or trust company, insurance company or other qualifying financial institution, registered investment company or non-qualified deferred compensation plan, your financial institution or financial intermediary will provide you with the information you need to know when selling Class R6 Shares. If you are a qualified institutional investor, or qualified individual investor as described under the heading "What arrangement is best for you?," please refer to the instructions above for Class A Shares, Class C Shares, Class P Shares, Administrative Class Shares and Institutional Class Shares.

#### All Share Classes

#### Payment of Redemptions In Kind
Each fund reserves the right to pay large redemptions "in kind" (i.e., in securities owned by the fund) rather than in cash. Large redemptions are those that exceed $250,000 or 1% of the fund's net assets, whichever is less, over any 90-day period. Additional documentation will be required for redemptions by organizations, fiduciaries, or retirement plans, or if a redemption is requested by anyone but the shareholder(s) of record. Investors who are paid redemption proceeds in kind generally will receive a pro rata share of the fund's portfolio, which may include illiquid securities. Any securities received remain at market risk until sold. Brokerage commissions and capital gains may be incurred when converting securities received into cash. On any illiquid securities received, the investor will bear the risk of not being able to sell the securities at all.

**Account Policies**

#### Account Reinstatement Privilege
Subject to the fund's policies and procedures regarding market timing, for 180 days after you sell your Class A Shares on which you previously paid a sales charge, you may purchase Class A Shares of any Virtus Mutual Fund at NAV, with no sales charge, by reinvesting all or part of your proceeds, but not more. Send your written request to Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. You can call Virtus Mutual Funds at 800-243-1574 for more information.

Please remember, a redemption and reinvestment are considered to be a sale and purchase for tax-reporting purposes.

#### Annual Fee on Small Accounts
To help offset the costs associated with maintaining small accounts, the funds reserve the right to assess an annual $25 small account fee on fund accounts with a balance below $2,500. The small account fee may be waived in certain circumstances, such as for accounts that have elected electronic delivery of statements/regulatory documents and accounts owned by shareholders having multiple accounts with a combined value of over $25,000. The small account fee does not apply to accounts held through a financial intermediary.

The small account fee will be collected through the automatic sale of shares in your account. We will send you written notice before we charge the $25 fee so that you may increase your account balance above the minimum, sign up for electronic delivery, consolidate your accounts or liquidate your account. You may take these actions at any time by contacting your investment professional or the Transfer Agent.

#### Redemption of Small Accounts
Due to the high cost of maintaining small accounts, if your redemption activity causes your account balance to fall below $200, you may receive a notice requesting you to bring the balance up to $200 within 60 days. If you do not, the shares in the account will be sold at NAV, and a check will be mailed to the address of record. Any applicable sales charges will be deducted.

#### Distributions of Small Amounts
Distributions in amounts less than $10 will automatically be reinvested in additional shares of the fund.

#### Uncashed Checks
If any correspondence sent by a fund is returned by the postal or other delivery service as "undeliverable," your dividends or any other distribution may be automatically reinvested in the fund.

If your distribution check is not cashed within six months, the distribution may be reinvested in the fund at the current NAV. You will not receive any interest on uncashed distribution or redemption checks. This provision may not apply to certain retirement or qualified accounts.

#### Inactive Accounts
As required by the laws of certain states, if no activity occurs in an account within the time period specified by your state law, the funds or their agents may be required to transfer the assets to your state under the state's abandoned property law.

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#### Exchange Privileges
You should read the prospectus of the Virtus Mutual Fund(s) into which you want to make an exchange before deciding to make an exchange. You can obtain a prospectus from your financial professional; by calling 800-243-4361; or on the Internet at virtus.com.

 You generally may exchange shares of one fund for the same class of shares of another Virtus Mutual Fund (e.g., Class A Shares for Class A Shares). Class C Shares are also exchangeable for Class C1 Shares of those Virtus Mutual Funds offering them. Exchange privileges may not be available for all Virtus Mutual Funds and may be rejected or suspended.

 Exchanges may be made by telephone (800-243-1574) or by mail (Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074).

 The amount of the exchange must be equal to or greater than the minimum initial investment required, unless the minimum has been waived (as described in the SAI).

 The exchange of shares of one fund for shares of a different fund is treated as a sale of the original fund's shares and any gain on the transaction may be subject to federal income tax.

 Financial intermediaries are permitted to initiate exchanges from one class of a fund into another class of the same fund if, among other things, the financial intermediary agrees to follow procedures established by the fund, the Distributor or the Transfer Agent, which generally will require that (i) the exchanges be carried out within accounts that are maintained and controlled by the intermediary and meet investor eligibility requirements, if applicable, for the share class or account type, and (ii) no contingent deferred sales charges are outstanding, or the applicable intermediary agrees to cause any outstanding contingent deferred sales charges to be paid in a manner agreed to by the fund, the Distributor or the Transfer Agent. The fund's ability to make this type of exchange may be limited by operational or other limitations, requiring the fund or its agent to process the transaction as a liquidation and purchase, at the same closing NAV. The financial intermediary will be ultimately responsible for reporting the transaction in accordance with their instruction.

Shareholders owning shares of a fund through accounts established directly with the Transfer Agent (i.e., not established with a financial intermediary who deals with the Transfer Agent exclusively on the investor's behalf) may be permitted to exchange shares of one class of the fund into another class of the same fund, if they meet the investor eligibility requirements associated with the class into which they wish to exchange, at the discretion of the fund or the Transfer Agent. A shareholder's ability to make this type of exchange may be limited by operational or other limitations of his or her financial intermediary or the fund.

Under the Code, generally if a shareholder exchanges shares from one class of a fund into another class of the same fund, the transaction should not be subject to U.S. federal income taxes; however, each shareholder should consult both the relevant financial intermediary (if applicable) and the shareholder's tax professional regarding the treatment of any specific exchange carried out under the terms of this subsection.

Institutional Class shares of a fund may be exchanged for Administrative Class shares offered by any other fund or Virtus Investment Trust fund that offers such class of shares, or vice versa, provided that the Institutional Class or Administrative Class shareholder, as the case may be, meets the eligibility requirements of the class into which such shareholder seeks to exchange.

#### Systematic Exchanges
If the conditions above have been met, you or your broker may, by telephone or written notice, elect to have shares exchanged for the same class of shares of another Virtus Mutual Fund automatically on a monthly, quarterly, semiannual or annual basis or may cancel this privilege at any time. If you maintain an account balance of at least $5,000, or $2,000 for tax qualified retirement benefit plans (calculated on the basis of the NAV of the shares held in a single account), you may direct that shares be automatically exchanged at predetermined intervals for shares of the same class of another Virtus Mutual Fund. Systematic exchanges will be executed upon the close of business on the 10th day of each month or the next succeeding business day. Exchanges will be based upon each fund's NAV per share next computed after the close of business on the 10th day of each month (or next succeeding business day), without sales charge. Systematic exchange forms are available from the Transfer Agent.

#### Disruptive Trading and Market Timing
These funds are not appropriate for market timers, and market timers are discouraged from becoming investors. Your ability to make exchanges among Virtus Mutual Funds is subject to modification if we determine, in our sole opinion, that your exercise of the exchange privilege may disadvantage or potentially harm the rights or interests of other shareholders.

Frequent purchases, redemptions and exchanges, programmed exchanges, exchanges into and then out of a fund in a short period of time, and exchanges of large amounts at one time may be indicative of market timing and otherwise disruptive trading ("Disruptive Trading") which can have risks and harmful effects for other shareholders. These risks and harmful effects include:

 dilution of the interests of long-term investors, if market timers or others exchange into a fund at prices that are below the true value or exchange out of a fund at prices that are higher than the true value;

 an adverse effect on portfolio management, as determined by the adviser or subadviser in its sole discretion, such as causing a fund to maintain a higher level of cash than would otherwise be the case, or causing a fund to liquidate investments prematurely; and

 reducing returns to long-term shareholders through increased brokerage and administrative expenses.

Additionally, the nature of the portfolio holdings of certain funds (or the underlying funds as applicable), may expose those funds to investors who engage in the type of market timing trading that seeks to take advantage of possible delays between the change in the value of a mutual fund's portfolio holdings and the reflection of the change in the NAV of the fund's shares, sometimes referred to as "time-zone arbitrage." Arbitrage market timers seek to exploit possible delays between the change in the value of a mutual fund's portfolio holdings and the NAV of the fund's shares in funds that hold significant investments in foreign

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securities because certain foreign markets close several hours ahead of the U.S. markets. If an arbitrageur is successful, the value of the fund's shares may be diluted if redeeming shareholders receive proceeds (and buying shareholders receive shares) based upon NAVs which do not reflect appropriate fair value prices.

In order to attempt to protect our shareholders from the potential harmful effects of Disruptive Trading, the funds' Board of Trustees has adopted a policy to safeguard against market timing designed to discourage Disruptive Trading. The Board of Trustees has adopted this policy as a preventive measure to protect all shareholders from the potential effects of Disruptive Trading, while also abiding by any rights that shareholders may have to make exchanges and provide reasonable and convenient methods of making exchanges that do not have the potential to harm other shareholders.

Excessive trading activity is measured by the number of roundtrip transactions in an account. A roundtrip transaction is one where a shareholder buys and then sells, or sells and then buys, shares of any fund within 30 days. Shareholders of the funds are limited to one roundtrip transaction within any rolling 30-day period. Roundtrip transactions are counted at the shareholder level. In considering a shareholder's trading activity, the funds may consider, among other factors, the shareholder's trading history both directly and, if known, through financial intermediaries, in the funds, in other funds within the Virtus Mutual Fund complex, in non-Virtus funds or in accounts under common control or ownership. We do not include exchanges made pursuant to the dollar cost averaging or other similar programs when applying our market timing policies. Systematic withdrawal and/or contribution programs, mandatory retirement distributions, and transactions initiated by a plan sponsor also will not count towards the roundtrip limits. The funds may permit exchanges that the funds' transfer agent believes, in the exercise of its judgment, are not disruptive. The funds also may permit purchases and redemptions by funds of funds that the funds' transfer agent believes, in the exercise of its judgment, are not disruptive. Considerations such as the size of the fund and the size of the requested transaction may be considered when determining whether or not the transaction would be disruptive.

Shareholders holding shares for at least 30 days following investment will ordinarily be in compliance with the funds' policy regarding excessive trading activity. The funds may, however, take action if activity is deemed disruptive even if shares are held longer than 30 days, such as a request for a transaction of an unusually large size. The size of the fund and the size of the requested transaction may be considered when determining whether or not the transaction would be disruptive.

Under the funds' market timing policy, we may modify your exchange privileges for some or all of the funds by not accepting an exchange request from you or from any person, asset allocation service, and/or market timing service made on your behalf. We may also limit the amount that may be exchanged into or out of any fund at any one time, or may revoke your right to make Internet, telephone or facsimile exchanges. We may reinstate Internet, telephone and facsimile exchange privileges after they are revoked, but we will not reinstate these privileges if we have reason to believe that they might be used thereafter for Disruptive Trading.

The funds currently do not charge exchange or redemption fees, or any other administrative charges on fund exchanges. The funds reserve the right to impose such fees and/or charges in the future.

Orders for the purchase of fund shares are subject to acceptance by the relevant fund. We reserve the right to reject, without prior notice, any exchange request into any fund if the purchase of shares in the corresponding fund is not accepted for any reason.

The funds do not have any arrangements with any person, organization or entity to permit frequent purchases and redemptions of fund shares.

We may, without prior notice, take whatever action we deem appropriate to comply with or take advantage of any state or federal regulatory requirement. The funds reserve the right to reject any purchase or exchange transaction at any time. If we reject a purchase or exchange for any reason, we will notify you of our decision in writing.

The funds cannot guarantee that their policies and procedures regarding market timing will be effective in detecting and deterring all Disruptive Trading.

#### Retirement Plans
Shares of the funds may be used as investments under the following retirement plans: traditional IRA, rollover IRA, SEP-IRA, SIMPLE IRA, Roth IRA, 401(k) plans, profit-sharing, money purchase plans, and certain 403(b) plans. For more information, call 800-243-4361.

**Cost Basis Reporting**

When you redeem fund shares, the applicable fund or, if you purchase your shares through a financial intermediary, your financial intermediary, generally is required to report to you and the IRS on an IRS Form 1099-B or other applicable form, cost-basis information with respect to those shares, as well as information about whether any gain or loss on your redemption is short- or long-term and whether any loss is disallowed under the "wash sale" rules. This reporting requirement is effective for fund shares acquired by you (including through dividend reinvestment) on or after January 1, 2012, when you subsequently redeem those shares. Such reporting generally is not required for shares held in a retirement or other tax-advantaged account. Cost basis is typically the price you pay for your shares (including reinvested dividends), with adjustments for certain commissions, wash-sales, organizational actions, and other items, including any returns of capital paid to you by a fund in respect of your shares. Cost basis is used to determine your net gains and losses on any shares you redeem in a taxable account.

The applicable fund or your financial intermediary, as applicable, will permit you to select from a list of alternative cost basis reporting methods to determine your cost basis in fund shares acquired on or after January 1, 2012. If you do not select a particular cost basis reporting method, the fund or financial intermediary will apply its default cost basis reporting method to your shares. If you hold your shares directly in a fund account, the funds' default method (or the method you have selected by notifying the fund) will apply; if you hold your shares in an account with a financial intermediary, the intermediary's default method (or the method you have selected by notifying the intermediary) will apply. Please contact the relevant fund at 800-243-1574 or your financial intermediary, as applicable, for more information on the available methods for cost basis reporting and how to select or change a particular method. You should consult your tax adviser concerning the application of these rules to your investment in a fund, and to determine which available cost basis method is best for you. Please note that you are responsible for calculating and reporting your cost basis in the shares of each fund acquired prior to January 1, 2012 as this information will not be reported to you by the funds and may not be reported to you by your financial intermediary.

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**Investor Services and Other Information**

***Systematic Purchase*** is a systematic investment plan that allows you to have a specified amount automatically deducted from your checking or savings account and then deposited into your mutual fund account. (Complete the "Systematic Purchase" section on the application and include a voided check.)

***Systematic Exchange*** allows you to automatically move money from one Virtus Mutual Fund to another on a monthly, quarterly, semiannual or annual basis. Shares of one Virtus Mutual Fund will be exchanged for shares of the same class of another Virtus Mutual Fund at the interval you select. (Complete the "Systematic Exchange" section on the application.) Exchange privileges may not be available for all Virtus Mutual Funds and may be rejected or suspended.

***Telephone Exchange*** lets you exchange shares of one Virtus Mutual Fund for the same class of shares in another Virtus Mutual Fund, using our customer service telephone number (800-243-1574). (See the "Telephone Exchange" section on the application.) Exchange privileges may not be available for all Virtus Mutual Funds and may be rejected or suspended.

***Systematic Withdrawal*** allows you to periodically redeem a portion of your account on a predetermined monthly, quarterly, semiannual, or annual basis. Sufficient shares from your account will be redeemed at the closing NAV on the applicable payment date, with proceeds to be mailed to you or sent through ACH to your bank (at your selection). For payments to be mailed, shares will be redeemed on the 15th of the month so that the payment is made about the 20th of the month. For ACH payments, you may select the day of the month for the payments to be made; if no date is specified, the payments will occur on the 15th of the month. The minimum withdrawal is $25, and minimum account balance requirements continue to apply. Shareholders in the program must own Virtus Mutual Fund shares worth at least $5,000.

***Disclosure of Fund Portfolio Holdings***. A description of the funds' policies and procedures with respect to the disclosure of the funds' portfolio holdings is available in the SAI.

***Availability and Delivery of Fund Documents.*** Fund documents such as this prospectus are available for download from the Our Products section of virtus.com, or you may request paper copies of such documents at any time by calling 800-243-1574. The funds will not charge you a fee for paper copies of fund documents, although the funds will incur additional expenses when printing and mailing them, and fund expenses pass indirectly to all shareholders.

**Tax Status of Distributions**

The funds plan to make distributions from net investment income at intervals stated in the table below and to distribute net realized capital gains, if any, at least annually.

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| | |
|:---|:---|
| **Fund** | **Dividend Paid** |
| Virtus Convertible Fund | Quarterly |
| Virtus Duff & Phelps Water Fund | Semiannually |
| Virtus Global Allocation Fund | Semiannually |
| Virtus International Small-Cap Fund | Semiannually |
| Virtus Newfleet Short Duration High Income Fund | Monthly |
| Virtus NFJ Emerging Markets Value Fund | Quarterly |
| Virtus NFJ Global Sustainability Fund | Semiannually |
| Virtus Seix High Yield Income Fund | Monthly |

---

Distributions of short-term capital gains (gains on securities held for a year or less) and net investment income are taxable to shareholders as ordinary income. Certain distributions of long-term capital gains and certain dividends are taxable at a lower rate than ordinary income. Long-term capital gains, if any, which are distributed to shareholders and which are designated by a fund as capital gain distributions, are taxable to shareholders as long-term capital gain distributions regardless of the length of time you have owned your shares.

Unless you elect to receive distributions in cash, dividends and capital gain distributions are paid in additional shares. All distributions, whether paid in cash or in additional shares, are subject to federal income tax and may be subject to state, local, and other taxes.

<br> Virtus Mutual Funds 87

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**Financial Highlights (continued)**

These tables are intended to help you understand each fund's financial information for the past five years or, if the class is less than 5 years old, since the class of shares was first offered. Some of this information reflects financial information for a single fund share. The total returns in the tables represent the rate that an investor would have earned or lost on an investment in a fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, the funds' independent registered public accounting firm. PricewaterhouseCoopers LLP's reports, together with each fund's financial statements, is included in the funds' most recent Annual Report, which is available upon request.<br>

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus Convertible Fund** | **Virtus Convertible Fund** | **Virtus Convertible Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $45.74 | 0.16 |  | (7.94) | (7.78) | (0.19) | (7.50) | (7.69) |  |
| 10/1/20 to 9/30/21 | 38.77 | 0.11 |  | 9.73 | 9.84 | (0.20) | (2.67) | (2.87) |  |
| 10/1/19 to 9/30/20 | 29.25 | 0.27 |  | 10.59 | 10.86 | (0.43) | (0.91) | (1.34) |  |
| 10/1/18 to 9/30/19 | 32.78 | 0.29 |  | 0.63 | 0.92 | (0.90) | (3.55) | (4.45) |  |
| 10/1/17 to 9/30/18 | 34.27 | 0.32 |  | 4.58 | 4.90 | (1.30) | (5.09) | (6.39) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $46.36 | (0.12) |  | (8.05) | (8.17) | —<br><sup>(7)</sup> | (7.50) | (7.50) |  |
| 10/1/20 to 9/30/21 | 39.39 | (0.24) |  | 9.88 | 9.64 | —<br><sup>(7)</sup> | (2.67) | (2.67) |  |
| 10/1/19 to 9/30/20 | 29.61 | 0.02 |  | 10.77 | 10.79 | (0.10) | (0.91) | (1.01) |  |
| 10/1/18 to 9/30/19 | 32.95 | 0.08 |  | 0.67 | 0.75 | (0.54) | (3.55) | (4.09) |  |
| 10/1/17 to 9/30/18 | 34.36 | 0.08 |  | 4.59 | 4.67 | (0.99) | (5.09) | (6.08) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $44.81 | 0.24 |  | (7.74) | (7.50) | (0.29) | (7.50) | (7.79) |  |
| 10/1/20 to 9/30/21 | 38.04 | 0.23 |  | 9.53 | 9.76 | (0.32) | (2.67) | (2.99) |  |
| 10/1/19 to 9/30/20 | 28.76 | 0.34 |  | 10.40 | 10.74 | (0.55) | (0.91) | (1.46) |  |
| 10/1/18 to 9/30/19 | 32.41 | 0.37 |  | 0.61 | 0.98 | (1.08) | (3.55) | (4.63) |  |
| 10/1/17 to 9/30/18 | 33.89 | 0.40 |  | 4.52 | 4.92 | (1.31) | (5.09) | (6.40) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $44.23 | 0.23 |  | (7.63) | (7.40) | (0.28) | (7.50) | (7.78) |  |
| 10/1/20 to 9/30/21 | 37.57 | 0.22 |  | 9.42 | 9.64 | (0.31) | (2.67) | (2.98) |  |
| 10/1/19 to 9/30/20 | 28.45 | 0.34 |  | 10.27 | 10.61 | (0.58) | (0.91) | (1.49) |  |
| 10/1/18 to 9/30/19 | 32.12 | 0.35 |  | 0.60 | 0.95 | (1.07) | (3.55) | (4.62) |  |
| 10/1/17 to 9/30/18 | 33.95 | 0.38 |  | 4.50 | 4.88 | (1.62) | (5.09) | (6.71) |  |
| **Class R6** |  |  |  |  |  |  |  |  |  |
| 1/31/22<sup>(9)</sup> to 9/30/22 | $34.43 | 0.24 |  | (4.94) | (4.70) | (0.24) |  | (0.24) |  |
| **Administrative Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $45.15 | 0.17 |  | (7.83) | (7.66) | (0.21) | (7.50) | (7.71) |  |
| 10/1/20 to 9/30/21 | 38.36 | 0.14 |  | 9.62 | 9.76 | (0.30) | (2.67) | (2.97) |  |
| 10/1/19 to 9/30/20 | 28.95 | 0.35 |  | 10.42 | 10.77 | (0.45) | (0.91) | (1.36) |  |
| 10/1/18 to 9/30/19 | 32.46 | 0.30 |  | 0.61 | 0.91 | (0.87) | (3.55) | (4.42) |  |
| 10/1/17 to 9/30/18 | 34.08 | 0.33 |  | 4.54 | 4.87 | (1.40) | (5.09) | (6.49) |  |

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<br> 88 Virtus Mutual Funds

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**Financial Highlights**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (15.47) | $30.27 | (20.06)% | $236603 | 0.96% | 1.10% | 0.45% | 121% |
| 6.97 | 45.74 | 25.71 | 396378 | 0.95<br><sup>(6)</sup> | 1.02 | 0.25 | 130 |
| 9.52 | 38.77 | 38.44 | 254762 | 0.96 | 0.98 | 0.83 | 145 |
| (3.53) | 29.25 | 5.29 | 69611 | 1.02 | 1.02 | 0.99 | 143 |
| (1.49) | 32.78 | 16.83 | 61385 | 0.96 | 0.96 | 1.02 | 133 |
| (15.67) | $30.69 | (20.67)% | $87842 | 1.73% | 1.82% | (0.32)% | 121% |
| 6.97 | 46.36 | 24.75 | 141138 | 1.72<br><sup>(6)</sup> | 1.77 | (0.52) | 130 |
| 9.78 | 39.39 | 37.40 | 112523 | 1.73 | 1.74 | 0.06 | 145 |
| (3.34) | 29.61 | 4.53 | 60434 | 1.75 | 1.75 | 0.26 | 143 |
| (1.41) | 32.95 | 15.90 | 53461 | 1.73 | 1.73 | 0.24 | 133 |
| (15.29) | $29.52 | (19.84)% | $930359 | 0.71% | 0.83% | 0.68% | 121% |
| 6.77 | 44.81 | 26.02 | 1640171 | 0.69 | 0.77 | 0.51 | 130 |
| 9.28 | 38.04 | 38.80 | 1045769 | 0.71 | 0.71 | 1.07 | 145 |
| (3.65) | 28.76 | 5.62 | 370111 | 0.72 | 0.72 | 1.29 | 143 |
| (1.48) | 32.41 | 17.10 | 332874 | 0.71 | 0.71 | 1.27 | 133 |
| (15.18) | $29.05 | (19.86)% | $348324 | 0.71% | 0.83% | 0.64% | 121% |
| 6.66 | 44.23 | 26.03 | 808844 | 0.69<br><sup>(8)</sup> | 0.81 | 0.51 | 130 |
| 9.12 | 37.57 | 38.78 | 547783 | 0.71 | 0.71 | 1.08 | 145 |
| (3.67) | 28.45 | 5.59 | 155601 | 0.75 | 0.75 | 1.26 | 143 |
| (1.83) | 32.12 | 17.08 | 102412 | 0.74 | 0.74 | 1.24 | 133 |
| (4.94) | $29.49 | (13.67)% | $86 | 0.62% | 0.83% | 1.11% | 121%<sup>(10)</sup> |
| (15.37) | $29.78 | (20.05)% | $15612 | 0.93% | 1.16% | 0.46% | 121% |
| 6.79 | 45.15 | 25.79 | 25665 | 0.91 | 0.97 | 0.31 | 130 |
| 9.41 | 38.36 | 38.50 | 13386 | 0.93 | 0.93 | 0.99 | 145 |
| (3.51) | 28.95 | 5.29 | 550 | 0.97 | 0.97 | 1.03 | 143 |
| (1.62) | 32.46 | 16.88 | 997 | 0.93 | 0.93 | 1.05 | 133 |

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<br> Virtus Mutual Funds 89

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**Financial Highlights (continued)**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus Duff & Phelps Water Fund** | **Virtus Duff & Phelps Water Fund** | **Virtus Duff & Phelps Water Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $22.45 | 0.05 |  | (4.87) | (4.82) | (0.25) | (1.51) | (1.76) | —<sup>(7)</sup> |
| 10/1/20 to 9/30/21 | 17.63 | 0.26 |  | 4.87 | 5.13 | (0.04) | (0.27) | (0.31) |  |
| 10/1/19 to 9/30/20 | 16.31 | 0.06 |  | 1.77 | 1.83 | (0.11) | (0.40) | (0.51) |  |
| 10/1/18 to 9/30/19 | 15.54 | 0.11 |  | 1.15 | 1.26 | (0.13) | (0.36) | (0.49) |  |
| 10/1/17 to 9/30/18 | 15.49 | 0.13 |  | 0.34 | 0.47 | (0.04) | (0.38) | (0.42) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $21.18 | (0.09) |  | (4.60) | (4.69) | (0.08) | (1.51) | (1.59) | —<sup>(7)</sup> |
| 10/1/20 to 9/30/21 | 16.73 | 0.09 |  | 4.63 | 4.72 | —<br><sup>(7)</sup> | (0.27) | (0.27) |  |
| 10/1/19 to 9/30/20 | 15.52 | (0.06) |  | 1.67 | 1.61 |  | (0.40) | (0.40) |  |
| 10/1/18 to 9/30/19 | 14.79 |  |  | 1.10 | 1.10 | (0.01) | (0.36) | (0.37) |  |
| 10/1/17 to 9/30/18 | 14.82 | 0.01 |  | 0.34 | 0.35 |  | (0.38) | (0.38) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $22.06 | 0.11 |  | (4.77) | (4.66) | (0.32) | (1.51) | (1.83) | —<sup>(7)</sup> |
| 10/1/20 to 9/30/21 | 17.33 | 0.33 |  | 4.77 | 5.10 | (0.10) | (0.27) | (0.37) |  |
| 10/1/19 to 9/30/20 | 16.03 | 0.11 |  | 1.74 | 1.85 | (0.15) | (0.40) | (0.55) |  |
| 10/1/18 to 9/30/19 | 15.31 | 0.15 |  | 1.11 | 1.26 | (0.18) | (0.36) | (0.54) |  |
| 10/1/17 to 9/30/18 | 15.32 | 0.17 |  | 0.34 | 0.51 | (0.14) | (0.38) | (0.52) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $22.53 | 0.10 |  | (4.91) | (4.81) | (0.23) | (1.51) | (1.74) | —<sup>(7)</sup> |
| 10/1/20 to 9/30/21 | 17.68 | 0.32 |  | 4.88 | 5.20 | (0.08) | (0.27) | (0.35) |  |
| 10/1/19 to 9/30/20 | 16.33 | 0.11 |  | 1.77 | 1.88 | (0.13) | (0.40) | (0.53) |  |
| 10/1/18 to 9/30/19 | 15.59 | 0.15 |  | 1.14 | 1.29 | (0.19) | (0.36) | (0.55) |  |
| 10/1/17 to 9/30/18 | 15.57 | 0.17 |  | 0.36 | 0.53 | (0.13) | (0.38) | (0.51) |  |

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<br> 90 Virtus Mutual Funds

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**Financial Highlights**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (6.58) | $15.87 | (23.71)<sup>(11)</sup> | $207428 | 1.22% | 1.48% | 0.27% | 27% |
| 4.82 | 22.45 | 29.41 | 286453 | 1.22 | 1.45 | 1.23 | 32 |
| 1.32 | 17.63 | 11.35 | 200384 | 1.22 | 1.40 | 0.37 | 28 |
| 0.77 | 16.31 | 8.88 | 177463 | 1.23 | 1.40 | 0.76 | 33 |
| 0.05 | 15.54 | 3.05 | 172374 | 1.19 | 1.41 | 0.84 | 34 |
| (6.28) | $14.90 | (24.32)<sup>(11)</sup> | $41415 | 1.97% | 2.22% | (0.50)% | 27% |
| 4.45 | 21.18 | 28.48 | 68805 | 1.97 | 2.20 | 0.43 | 32 |
| 1.21 | 16.73 | 10.48 | 57901 | 1.97 | 2.16 | (0.38) | 28 |
| 0.73 | 15.52 | 8.02 | 70175 | 1.98 | 2.15 | 0.01 | 33 |
| (0.03) | 14.79 | 2.35 | 83156 | 1.94 | 2.16 | 0.07 | 34 |
| (6.49) | $15.57 | (23.48)<sup>(11)</sup> | $235079 | 0.93% | 1.23% | 0.59% | 27% |
| 4.73 | 22.06 | 29.76 | 325247 | 0.93 | 1.21 | 1.57 | 32 |
| 1.30 | 17.33 | 11.71 | 204320 | 0.93 | 1.13 | 0.68 | 28 |
| 0.72 | 16.03 | 9.12 | 152496 | 0.94 | 1.18 | 1.04 | 33 |
| (0.01) | 15.31 | 3.36 | 164322 | 0.92 | 1.14 | 1.13 | 34 |
| (6.55) | $15.98 | (23.53)<sup>(11)</sup> | $153863 | 0.94% | 1.19% | 0.50% | 27% |
| 4.85 | 22.53 | 29.77 | 339111 | 0.94 | 1.25 | 1.51 | 32 |
| 1.35 | 17.68 | 11.67 | 240922 | 0.94 | 1.16 | 0.66 | 28 |
| 0.74 | 16.33 | 9.14 | 210425 | 0.95 | 1.17 | 1.03 | 33 |
| 0.02 | 15.59 | 3.40 | 243338 | 0.93 | 1.15 | 1.12 | 34 |

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<br> Virtus Mutual Funds 91

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**Financial Highlights (continued)**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus Global Allocation Fund** | **Virtus Global Allocation Fund** | **Virtus Global Allocation Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $11.99 | 0.10 | 0.74 | (2.75) | (1.91) | (0.22) | (0.83) | (1.05) |  |
| 10/1/20 to 9/30/21 | 11.11 | 0.14 | 0.16 | 1.33 | 1.63 | (0.22) | (0.53) | (0.75) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 11.05 | 0.13 |  | 0.94 | 1.07 | (0.12) | (0.89) | (1.01) |  |
| 10/1/18 to 9/30/19 | 11.47 | 0.21 |  | 0.06 | 0.27 | (0.25) | (0.44) | (0.69) |  |
| 10/1/17 to 9/30/18 | 12.34 | 0.26 |  | 0.07 | 0.33 | (0.55) | (0.65) | (1.20) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $12.50 | 0.06 | 0.74 | (2.88) | (2.08) | (0.13) | (0.83) | (0.96) |  |
| 10/1/20 to 9/30/21 | 11.47 | 0.07 | 0.21 | 1.32 | 1.60 | (0.04) | (0.53) | (0.57) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 11.37 | 0.06 |  | 0.95 | 1.01 | (0.02) | (0.89) | (0.91) |  |
| 10/1/18 to 9/30/19 | 11.67 | 0.13 |  | 0.08 | 0.21 | (0.07) | (0.44) | (0.51) |  |
| 10/1/17 to 9/30/18 | 12.47 | 0.19 |  | 0.06 | 0.25 | (0.40) | (0.65) | (1.05) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $11.89 | 0.36 | 0.72 | (2.95) | (1.87) | (0.24) | (0.83) | (1.07) |  |
| 10/1/20 to 9/30/21 | 11.05 | 0.17 | 0.16 | 1.32 | 1.65 | (0.28) | (0.53) | (0.81) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 11.02 | 0.14 |  | 0.94 | 1.08 | (0.16) | (0.89) | (1.05) |  |
| 10/1/18 to 9/30/19 | 11.45 | 0.24 |  | 0.06 | 0.30 | (0.29) | (0.44) | (0.73) |  |
| 10/1/17 to 9/30/18 | 12.15 | 0.28 |  | 0.08 | 0.36 | (0.41) | (0.65) | (1.06) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $11.79 | 0.24 | 0.70 | (2.79) | (1.85) | (0.24) | (0.83) | (1.07) |  |
| 10/1/20 to 9/30/21 | 10.96 | 0.16 | 0.16 | 1.30 | 1.62 | (0.26) | (0.53) | (0.79) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 10.94 | 0.17 |  | 0.90 | 1.07 | (0.16) | (0.89) | (1.05) |  |
| 10/1/18 to 9/30/19 | 11.38 | 0.18 |  | 0.12 | 0.30 | (0.30) | (0.44) | (0.74) |  |
| 10/1/17 to 9/30/18 | 12.28 | 0.27 |  | 0.09 | 0.36 | (0.61) | (0.65) | (1.26) |  |
| **Class R6** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $11.59 | 0.12 | 0.71 | (2.64) | (1.81) | (0.25) | (0.83) | (1.08) |  |
| 10/1/20 to 9/30/21 | 10.79 | 0.17 | 0.16 | 1.28 | 1.61 | (0.28) | (0.53) | (0.81) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 10.78 | 0.16 |  | 0.92 | 1.08 | (0.18) | (0.89) | (1.07) |  |
| 10/1/18 to 9/30/19 | 11.23 | 0.23 |  | 0.06 | 0.29 | (0.30) | (0.44) | (0.74) |  |
| 10/1/17 to 9/30/18 | 12.13 | 0.29 |  | 0.07 | 0.36 | (0.61) | (0.65) | (1.26) |  |
| **Administrative Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $12.42 | 0.11 | 0.54 | (2.63) | (1.98) | (0.23) | (0.83) | (1.06) |  |
| 10/1/20 to 9/30/21 | 11.46 | 0.33 | 0.16 | 1.37 | 1.86 | (0.37) | (0.53) | (0.90) | —<sup>(7)</sup> |
| 10/1/19 to 9/30/20 | 11.38 | 0.13 |  | 0.98 | 1.11 | (0.14) | (0.89) | (1.03) |  |
| 10/1/18 to 9/30/19 | 11.77 | 0.22 |  | 0.08 | 0.30 | (0.25) | (0.44) | (0.69) |  |
| 10/1/17 to 9/30/18 | 12.64 | 0.28 |  | 0.07 | 0.35 | (0.57) | (0.65) | (1.22) |  |

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<br> 92 Virtus Mutual Funds

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**Financial Highlights**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (2.96) | $9.03 | (17.65)% | $36036 | 0.52% | 1.26% | 0.91% | 88% |
| 0.88 | 11.99 | 15.16<br><sup>(11)</sup> | 49743 | 0.56<br><sup>(8)</sup> | 1.22 | 1.19 | 168 |
| 0.06 | 11.11 | 10.21 | 46506 | 0.52 | 1.14 | 1.18 | 141 |
| (0.42) | 11.05<br><sup>(12)</sup> | 3.05<br><sup>(12)</sup> | 49259 | 0.61 | 1.14 | 1.95 | 29 |
| (0.87) | 11.47 | 2.62 | 40974 | 0.59 | 1.12 | 2.24 | 17 |
| (3.04) | $9.46 | (18.21)% | $2136 | 1.27% | 2.03% | 0.53% | 88% |
| 1.03 | 12.50 | 14.29<br><sup>(11)</sup> | 2558 | 1.31<br><sup>(8)</sup> | 1.94 | 0.59 | 168 |
| 0.10 | 11.47 | 9.28 | 3549 | 1.27 | 1.83 | 0.55 | 141 |
| (0.30) | 11.37<br><sup>(12)</sup> | 2.29<br><sup>(12)</sup> | 6393 | 1.34 | 1.91 | 1.14 | 29 |
| (0.80) | 11.67 | 1.90 | 26220 | 1.33 | 1.86 | 1.56 | 17 |
| (2.94) | $8.95 | (17.42)% | $6085 | 0.29% | 1.01% | 3.29% | 88% |
| 0.84 | 11.89 | 15.46<br><sup>(11)</sup> | 10820 | 0.31<br><sup>(8)</sup> | 0.86 | 1.43 | 168 |
| 0.03 | 11.05 | 10.40 | 9609 | 0.29 | 0.88 | 1.28 | 141 |
| (0.43) | 11.02<br><sup>(12)</sup> | 3.34<br><sup>(12)</sup> | 6026 | 0.36 | 0.89 | 2.25 | 29 |
| (0.70) | 11.45 | 2.92 | 6652 | 0.33 | 0.86 | 2.43 | 17 |
| (2.92) | $8.87 | (17.46)% | $2270 | 0.32% | 1.00% | 2.21% | 88% |
| 0.83 | 11.79 | 15.30<br><sup>(11)</sup> | 6536 | 0.36<br><sup>(8)</sup> | 1.03 | 1.38 | 168 |
| 0.02 | 10.96 | 10.39 | 5371 | 0.32 | 0.90 | 1.63 | 141 |
| (0.44) | 10.94<br><sup>(12)</sup> | 3.30<br><sup>(12)</sup> | 6173 | 0.37 | 0.91 | 1.68 | 29 |
| (0.90) | 11.38 | 2.92 | 4292 | 0.35 | 0.88 | 2.30 | 17 |
| (2.89) | $8.70 | (17.37)% | $175564 | 0.22% | 0.93% | 1.19% | 88% |
| 0.80 | 11.59 | 15.46<br><sup>(11)</sup> | 216700 | 0.26<br><sup>(8)</sup> | 0.91 | 1.50 | 168 |
| 0.01 | 10.79 | 10.57 | 191750 | 0.22 | 0.83 | 1.52 | 141 |
| (0.45) | 10.78<br><sup>(12)</sup> | 3.34<br><sup>(12)</sup> | 249269 | 0.28 | 0.82 | 2.23 | 29 |
| (0.90) | 11.23 | 2.95 | 252313 | 0.28 | 0.81 | 2.48 | 17 |
| (3.04) | $9.38 | (17.61)% | $112 | 0.47% | 0.59% | 1.02% | 88% |
| 0.96 | 12.42 | 16.73<br><sup>(11)</sup> | 42 | 0.47<br><sup>(8)</sup> | 2.34 | 2.68 | 168 |
| 0.08 | 11.46 | 10.24 | 27 | 0.47 | 1.08 | 1.17 | 141 |
| (0.39) | 11.38<br><sup>(12)</sup> | 3.17<br><sup>(12)</sup> | 23 | 0.53 | 1.07 | 1.97 | 29 |
| (0.87) | 11.77 | 2.68 | 22 | 0.53 | 1.06 | 2.28 | 17 |

---

<br> Virtus Mutual Funds 93

------

**Financial Highlights (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus International Small-Cap Fund** | **Virtus International Small-Cap Fund** | **Virtus International Small-Cap Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $41.91 | 0.48 |  | (12.74) | (12.26) | (0.86) | (6.06) | (6.92) | 0.04 |
| 10/1/20 to 9/30/21 | 34.36 | 0.22 |  | 7.76 | 7.98 | (0.30) | (0.13) | (0.43) |  |
| 10/1/19 to 9/30/20 | 32.15 | 0.15 |  | 2.54 | 2.69 | (0.48) |  | (0.48) |  |
| 10/1/18 to 9/30/19 | 43.09 | 0.34 |  | (6.28) | (5.94) | (0.10) | (4.90) | (5.00) |  |
| 10/1/17 to 9/30/18 | 41.19 | 0.42 |  | 2.41 | 2.83 | (0.25) | (0.68) | (0.93) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $40.12 | 0.20 |  | (12.28) | (12.08) | (0.05) | (6.06) | (6.11) | 0.04 |
| 10/1/20 to 9/30/21 | 33.00 | (0.24) |  | 7.60 | 7.36 | (0.11) | (0.13) | (0.24) |  |
| 10/1/19 to 9/30/20 | 30.72 | (0.08) |  | 2.40 | 2.32 | (0.04) |  | (0.04) |  |
| 10/1/18 to 9/30/19 | 41.63 | 0.05 |  | (6.06) | (6.01) |  | (4.90) | (4.90) |  |
| 10/1/17 to 9/30/18 | 40.01 | (0.15) |  | 2.55 | 2.40 | (0.10) | (0.68) | (0.78) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $43.24 | 0.56 |  | (13.22) | (12.66) | (0.90) | (6.06) | (6.96) | 0.04 |
| 10/1/20 to 9/30/21 | 35.49 | 0.29 |  | 8.03 | 8.32 | (0.44) | (0.13) | (0.57) |  |
| 10/1/19 to 9/30/20 | 33.21 | 0.23 |  | 2.63 | 2.86 | (0.58) |  | (0.58) |  |
| 10/1/18 to 9/30/19 | 44.65 | 0.47 |  | (6.58) | (6.11) | (0.43) | (4.90) | (5.33) |  |
| 10/1/17 to 9/30/18 | 42.85 | 0.32 |  | 2.71 | 3.03 | (0.55) | (0.68) | (1.23) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $41.77 | 0.47 |  | (12.63) | (12.16) | (0.91) | (6.06) | (6.97) | 0.04 |
| 10/1/20 to 9/30/21 | 34.20 | 0.27 |  | 7.72 | 7.99 | (0.29) | (0.13) | (0.42) |  |
| 10/1/19 to 9/30/20 | 31.91 | 0.17 |  | 2.56 | 2.73 | (0.44) |  | (0.44) |  |
| 10/1/18 to 9/30/19 | 43.06 | 0.33 |  | (6.25) | (5.92) | (0.33) | (4.90) | (5.23) |  |
| 10/1/17 to 9/30/18 | 41.33 | 0.22 |  | 2.68 | 2.90 | (0.49) | (0.68) | (1.17) |  |
| **Class R6** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $42.86 | 0.59 |  | (13.08) | (12.49) | (0.99) | (6.06) | (7.05) | 0.04 |
| 10/1/20 to 9/30/21 | 35.17 | 0.32 |  | 7.94 | 8.26 | (0.44) | (0.13) | (0.57) |  |
| 10/1/19 to 9/30/20 | 33.03 | 0.26 |  | 2.59 | 2.85 | (0.71) |  | (0.71) |  |
| 10/1/18 to 9/30/19 | 44.64 | 0.48 |  | (6.59) | (6.11) | (0.60) | (4.90) | (5.50) |  |
| 10/1/17 to 9/30/18 | 42.90 | 0.40 |  | 2.66 | 3.06 | (0.64) | (0.68) | (1.32) |  |

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<br> 94 Virtus Mutual Funds

------

**Financial Highlights**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (19.14) | $22.77 | (34.75)<sup>(11)</sup> | $2845 | 1.25% | 1.78% | 1.53% | 131% |
| 7.55 | 41.91 | 23.32 | 4853 | 1.25 | 1.77 | 0.54 | 51 |
| 2.21 | 34.36 | 8.37 | 3619 | 1.25 | 1.75 | 0.47 | 60 |
| (10.94) | 32.15 | (12.05) | 4826 | 1.25 | 1.94 | 1.05 | 55 |
| 1.90 | 43.09 | 6.88 | 9108 | 1.25 | 1.50 | 0.95 | 62 |
| (18.15) | $21.97 | (35.24)<sup>(11)</sup> | $166 | 2.00% | 2.49% | 0.66% | 131% |
| 7.12 | 40.12 | 22.36 | 373 | 2.00 | 2.47 | (0.62) | 51 |
| 2.28 | 33.00 | 7.56 | 722 | 2.00 | 2.49 | (0.27) | 60 |
| (10.91) | 30.72 | (12.75) | 963 | 2.04 | 2.59 | 0.16 | 55 |
| 1.62 | 41.63 | 5.99 | 2610 | 2.08 | 2.27 | (0.35) | 62 |
| (19.58) | $23.66 | (34.62)<sup>(11)</sup> | $17202 | 1.04% | 1.47% | 1.73% | 131% |
| 7.75 | 43.24 | 23.55 | 29125 | 1.04 | 1.50 | 0.69 | 51 |
| 2.28 | 35.49 | 8.61 | 31942 | 1.04 | 1.51 | 0.69 | 60 |
| (11.44) | 33.21 | (11.88) | 40477 | 1.04 | 1.61 | 1.39 | 55 |
| 1.80 | 44.65 | 7.09 | 49443 | 1.05 | 1.28 | 0.70 | 62 |
| (19.09) | $22.68 | (34.67)<sup>(11)</sup> | $4965 | 1.10% | 1.36% | 1.48% | 131% |
| 7.57 | 41.77 | 23.45 | 10911 | 1.10 | 1.53 | 0.65 | 51 |
| 2.29 | 34.20 | 8.55 | 10751 | 1.10 | 1.49 | 0.53 | 60 |
| (11.15) | 31.91 | (11.92) | 19740 | 1.10 | 1.58 | 1.01 | 55 |
| 1.73 | 43.06 | 7.02 | 48830 | 1.10 | 1.29 | 0.51 | 62 |
| (19.50) | $23.36 | (34.60)<sup>(11)</sup> | $18866 | 1.00% | 1.37% | 1.86% | 131% |
| 7.69 | 42.86 | 23.60 | 31785 | 1.00 | 1.41 | 0.77 | 51 |
| 2.14 | 35.17 | 8.63 | 29889 | 1.00 | 1.43 | 0.80 | 60 |
| (11.61) | 33.03 | (11.82) | 28630 | 1.00 | 1.49 | 1.44 | 55 |
| 1.74 | 44.64 | 7.14 | 33876 | 1.00 | 1.22 | 0.87 | 62 |

---

<br> Virtus Mutual Funds 95

------

**Financial Highlights (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus Newfleet Short Duration High Income Fund** | **Virtus Newfleet Short Duration High Income Fund** | **Virtus Newfleet Short Duration High Income Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $14.59 | 0.64 |  | (1.63) | (0.99) | (0.76) |  | (0.76) |  |
| 10/1/20 to 9/30/21 | 13.99 | 0.62 |  | 0.84 | 1.46 | (0.86) |  | (0.86) |  |
| 10/1/19 to 9/30/20 | 14.62 | 0.58 |  | (0.54) | 0.04 | (0.67) |  | (0.67) |  |
| 10/1/18 to 9/30/19 | 14.93 | 0.51 |  | (0.11) | 0.40 | (0.71) |  | (0.71) |  |
| 10/1/17 to 9/30/18 | 15.18 | 0.59 |  | (0.16) | 0.43 | (0.68) |  | (0.68) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $14.63 | 0.61 |  | (1.63) | (1.02) | (0.73) |  | (0.73) |  |
| 10/1/20 to 9/30/21 | 13.98 | 0.58 |  | 0.84 | 1.42 | (0.77) |  | (0.77) |  |
| 10/1/19 to 9/30/20 | 14.61 | 0.54 |  | (0.54) |  | (0.63) |  | (0.63) |  |
| 10/1/18 to 9/30/19 | 14.90 | 0.47 |  | (0.10) | 0.37 | (0.66) |  | (0.66) |  |
| 10/1/17 to 9/30/18 | 15.15 | 0.55 |  | (0.15) | 0.40 | (0.65) |  | (0.65) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $14.47 | 0.67 |  | (1.61) | (0.94) | (0.80) |  | (0.80) |  |
| 10/1/20 to 9/30/21 | 13.89 | 0.65 |  | 0.84 | 1.49 | (0.91) |  | (0.91) |  |
| 10/1/19 to 9/30/20 | 14.52 | 0.61 |  | (0.54) | 0.07 | (0.70) |  | (0.70) |  |
| 10/1/18 to 9/30/19 | 14.89 | 0.54 |  | (0.11) | 0.43 | (0.80) |  | (0.80) |  |
| 10/1/17 to 9/30/18 | 15.14 | 0.63 |  | (0.15) | 0.48 | (0.73) |  | (0.73) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $14.52 | 0.66 |  | (1.62) | (0.96) | (0.79) |  | (0.79) |  |
| 10/1/20 to 9/30/21 | 13.90 | 0.65 |  | 0.83 | 1.48 | (0.86) |  | (0.86) |  |
| 10/1/19 to 9/30/20 | 14.51 | 0.59 |  | (0.51) | 0.08 | (0.69) |  | (0.69) |  |
| 10/1/18 to 9/30/19 | 14.88 | 0.53 |  | (0.10) | 0.43 | (0.80) |  | (0.80) |  |
| 10/1/17 to 9/30/18 | 15.13 | 0.62 |  | (0.15) | 0.47 | (0.72) |  | (0.72) |  |
| **Class R6** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $14.48 | 0.68 |  | (1.61) | (0.93) | (0.81) |  | (0.81) |  |
| 10/1/20 to 9/30/21 | 13.89 | 0.66 |  | 0.83 | 1.49 | (0.90) |  | (0.90) |  |
| 10/1/19 to 9/30/20 | 14.52 | 0.62 |  | (0.54) | 0.08 | (0.71) |  | (0.71) |  |
| 10/1/18 to 9/30/19 | 14.89 | 0.56 |  | (0.11) | 0.45 | (0.82) |  | (0.82) |  |
| 10/1/17 to 9/30/18 | 15.14 | 0.64 |  | (0.16) | 0.48 | (0.73) |  | (0.73) |  |

---

<br> 96 Virtus Mutual Funds

------

**Financial Highlights**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (1.75) | $12.84 | (7.05)% | $114099 | 0.86% | 0.98% | 4.59% | 56% |
| 0.60 | 14.59 | 10.65 | 145424 | 0.86 | 0.93 | 4.24 | 69 |
| (0.63) | 13.99 | 0.37 | 136690 | 0.86 | 0.87 | 4.13 | 81 |
| (0.31) | 14.62 | 2.85 | 136086 | 0.88 | 0.88 | 3.52 | 47 |
| (0.25) | 14.93 | 2.95 | 150899 | 0.89 | 0.89 | 3.92 | 60 |
| (1.75) | $12.88 | (7.27)% | $58284 | 1.11% | 1.24% | 4.34% | 56% |
| 0.65 | 14.63 | 10.34 | 77032 | 1.11 | 1.20 | 4.00 | 69 |
| (0.63) | 13.98 | 0.12 | 90863 | 1.12 | 1.13 | 3.86 | 81 |
| (0.29) | 14.61 | 2.58 | 117058 | 1.14 | 1.14 | 3.25 | 47 |
| (0.25) | 14.90 | 2.74 | 135483 | 1.11 | 1.11 | 3.70 | 60 |
| (1.74) | $12.73 | (6.78)% | $231407 | 0.60% | 0.76% | 4.86% | 56% |
| 0.58 | 14.47 | 10.91 | 251201 | 0.60 | 0.70 | 4.50 | 69 |
| (0.63) | 13.89 | 0.63 | 285572 | 0.61 | 0.64 | 4.35 | 81 |
| (0.37) | 14.52 | 3.06 | 388672 | 0.63 | 0.63 | 3.74 | 47 |
| (0.25) | 14.89 | 3.26 | 388443 | 0.60 | 0.60 | 4.20 | 60 |
| (1.75) | $12.77 | (6.90)% | $140949 | 0.65%<sup>(6)(13)</sup> | 0.65% | 4.72% | 56% |
| 0.62 | 14.52 | 10.81 | 247819 | 0.65 | 0.76 | 4.45 | 69 |
| (0.61) | 13.90 | 0.69 | 264908 | 0.63 | 0.67 | 4.16 | 81 |
| (0.37) | 14.51 | 3.05 | 501138 | 0.65 | 0.65 | 3.70 | 47 |
| (0.25) | 14.88 | 3.21 | 411367 | 0.65 | 0.65 | 4.14 | 60 |
| (1.74) | $12.74 | (6.74)% | $10501 | 0.55% | 0.66% | 4.87% | 56% |
| 0.59 | 14.48 | 10.95 | 21117 | 0.55 | 0.63 | 4.59 | 69 |
| (0.63) | 13.89 | 0.70 | 33741 | 0.55 | 0.56 | 4.49 | 81 |
| (0.37) | 14.52 | 3.20 | 39234 | 0.57 | 0.57 | 3.89 | 47 |
| (0.25) | 14.89 | 3.29 | 52922 | 0.55 | 0.55 | 4.27 | 60 |

---

<br> Virtus Mutual Funds 97

------

**Financial Highlights (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus NFJ Emerging Markets Value Fund** | **Virtus NFJ Emerging Markets Value Fund** | **Virtus NFJ Emerging Markets Value Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $20.11 | 0.09 |  | (6.70) | (6.61) | (0.03) |  | (0.03) |  |
| 10/1/20 to 9/30/21 | 18.09 | 0.05 |  | 2.17 | 2.22 | (0.20) |  | (0.20) |  |
| 10/1/19 to 9/30/20 | 15.55 | 0.15 |  | 2.58 | 2.73 | (0.19) |  | (0.19) |  |
| 10/1/18 to 9/30/19 | 16.18 | 0.42 |  | (0.68) | (0.26) | (0.37) |  | (0.37) |  |
| 10/1/17 to 9/30/18 | 17.24 | 0.41 |  | (1.14) | (0.73) | (0.26) | (0.07) | (0.33) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $20.12 | (0.05) |  | (6.67) | (6.72) |  |  |  |  |
| 10/1/20 to 9/30/21 | 18.07 | (0.11) |  | 2.17 | 2.06 | (0.01) |  | (0.01) |  |
| 10/1/19 to 9/30/20 | 15.56 | 0.03 |  | 2.57 | 2.60 | (0.09) |  | (0.09) |  |
| 10/1/18 to 9/30/19 | 16.23 | 0.35 |  | (0.73) | (0.38) | (0.29) |  | (0.29) |  |
| 10/1/17 to 9/30/18 | 17.33 | 0.24 |  | (1.11) | (0.87) | (0.16) | (0.07) | (0.23) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $19.98 | 0.13 |  | (6.65) | (6.52) | (0.07) |  | (0.07) |  |
| 10/1/20 to 9/30/21 | 18.01 | 0.11 |  | 2.15 | 2.26 | (0.29) |  | (0.29) |  |
| 10/1/19 to 9/30/20 | 15.48 | 0.19 |  | 2.57 | 2.76 | (0.23) |  | (0.23) |  |
| 10/1/18 to 9/30/19 | 16.29 | 0.49 |  | (0.73) | (0.24) | (0.57) |  | (0.57) |  |
| 10/1/17 to 9/30/18 | 17.49 | 0.42 |  | (1.11) | (0.69) | (0.44) | (0.07) | (0.51) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $19.99 | 0.14 |  | (6.69) | (6.55) | (0.06) |  | (0.06) |  |
| 10/1/20 to 9/30/21 | 18.05 | 0.09 |  | 2.15 | 2.24 | (0.30) |  | (0.30) |  |
| 10/1/19 to 9/30/20 | 15.53 | 0.22 |  | 2.53 | 2.75 | (0.23) |  | (0.23) |  |
| 10/1/18 to 9/30/19 | 16.16 | 0.45 |  | (0.69) | (0.24) | (0.39) |  | (0.39) |  |
| 10/1/17 to 9/30/18 | 17.13 | 0.36 |  | (1.08) | (0.72) | (0.18) | (0.07) | (0.25) |  |

---

<br> 98 Virtus Mutual Funds

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**Financial Highlights**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (6.64) | $13.47 | (32.92)% | $8246 | 1.15% | 1.53% | 0.52% | 83% |
| 2.02 | 20.11 | 12.24 | 15565 | 1.14 | 1.50 | 0.26 | 56 |
| 2.54 | 18.09 | 17.63 | 14907 | 1.14 | 1.64 | 0.89 | 105 |
| (0.63) | 15.55 | (1.68) | 14395 | 1.15 | 1.65 | 2.69 | 101 |
| (1.06) | 16.18 | 4.36 | 22590 | 1.14 | 1.65 | 2.31 | 116 |
| (6.72) | $13.40 | (33.40)% | $476 | 1.90% | 2.24% | (0.25)% | 83% |
| 2.05 | 20.12 | 11.40 | 914 | 1.89 | 2.25 | (0.51) | 56 |
| 2.51 | 18.07 | 16.75 | 1016 | 1.89 | 2.37 | 0.16 | 105 |
| (0.67) | 15.56 | (2.38) | 1006 | 1.90 | 2.40 | 2.24 | 101 |
| (1.10) | 16.23 | (5.08) | 1196 | 1.90 | 2.38 | 1.35 | 116 |
| (6.59) | $13.39 | (32.75)% | $44679 | 0.89% | 1.24% | 0.75% | 83% |
| 1.97 | 19.98 | 12.50 | 122736 | 0.89 | 1.27 | 0.50 | 56 |
| 2.53 | 18.01 | 17.95 | 115817 | 0.89 | 1.34 | 1.18 | 105 |
| (0.81) | 15.48 | (1.45) | 90711 | 0.90 | 1.37 | 3.13 | 101 |
| (1.20) | 16.29 | (4.12) | 111161 | 0.90 | 1.39 | 2.41 | 116 |
| (6.61) | $13.38 | (32.84)% | $11220 | 1.00% | 1.46% | 0.83% | 83% |
| 1.94 | 19.99 | 12.40 | 10449 | 0.99<br><sup>(8)</sup> | 1.47 | 0.44 | 56 |
| 2.52 | 18.05 | 17.85 | 7192 | 0.99 | 1.27 | 1.33 | 105 |
| (0.63) | 15.53 | (1.53) | 2022 | 0.99 | 1.32 | 2.90 | 101 |
| (0.97) | 16.16 | (4.30) | 3312 | 0.98 | 1.48 | 2.03 | 116 |

---

<br> Virtus Mutual Funds 99

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**Financial Highlights (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus NFJ Global Sustainability Fund** | **Virtus NFJ Global Sustainability Fund** | **Virtus NFJ Global Sustainability Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $25.50 | 0.18 |  | (5.11) | (4.93) | (0.15) | (5.06) | (5.21) | 0.01 |
| 10/1/20 to 9/30/21 | 21.06 | 0.13 |  | 4.97 | 5.10 | (0.16) | (0.50) | (0.66) |  |
| 10/1/19 to 9/30/20 | 18.27 | 0.11 |  | 3.03 | 3.14 | (0.02) | (0.33) | (0.35) |  |
| 10/1/18 to 9/30/19 | 19.46 | 0.14 |  | 0.04 | 0.18 | (0.30) | (1.07) | (1.37) |  |
| 10/1/17 to 9/30/18 | 17.96 | 0.17 |  | 1.98 | 2.15 | (0.21) | (0.44) | (0.65) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $26.28 | 0.24 |  | (5.33) | (5.09) | (0.18) | (5.06) | (5.24) | 0.01 |
| 10/1/20 to 9/30/21 | 21.64 | 0.18 |  | 5.13 | 5.31 | (0.17) | (0.50) | (0.67) |  |
| 10/1/19 to 9/30/20 | 18.75 | 0.17 |  | 3.10 | 3.27 | (0.05) | (0.33) | (0.38) |  |
| 10/1/18 to 9/30/19 | 19.72 | 0.19 |  | 0.06 | 0.25 | (0.15) | (1.07) | (1.22) |  |
| 10/1/17 to 9/30/18 | 18.13 | 0.22 |  | 2.00 | 2.22 | (0.19) | (0.44) | (0.63) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $25.72 | 0.20 |  | (5.20) | (5.00) | (0.04) | (5.06) | (5.10) | 0.01 |
| 10/1/20 to 9/30/21 | 21.22 | 0.10 |  | 5.07 | 5.17 | (0.17) | (0.50) | (0.67) |  |
| 10/1/19 to 9/30/20 | 18.39 | 0.14 |  | 3.05 | 3.19 | (0.03) | (0.33) | (0.36) |  |
| 10/1/18 to 9/30/19 | 19.68 | 0.21 |  | (0.02) | 0.19 | (0.41) | (1.07) | (1.48) |  |
| 10/1/17 to 9/30/18 | 18.13 | 0.16 |  | 2.05 | 2.21 | (0.22) | (0.44) | (0.66) |  |

---

<br> 100 Virtus Mutual Funds

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**Financial Highlights**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (10.13) | $15.37 | (25.53)<sup>(11)</sup> | $3451 | 0.94% | 1.42% | 0.85% | 70% |
| 4.44 | 25.50 | 24.61 | 5305 | 0.94 | 1.37 | 0.54 | 30 |
| 2.79 | 21.06 | 17.35 | 2350 | 0.98 | 1.44 | 0.58 | 31 |
| (1.19) | 18.27 | 2.43 | 1444 | 1.09 | 1.84 | 0.77 | 49 |
| 1.50 | 19.46 | 12.23 | 614 | 1.09 | 1.70 | 0.92 | 20 |
| (10.32) | $15.96 | (25.39)<sup>(11)</sup> | $74848 | 0.69% | 1.06% | 1.11% | 70% |
| 4.64 | 26.28 | 24.95 | 114884 | 0.69 | 1.09 | 0.72 | 30 |
| 2.89 | 21.64 | 17.59 | 132073 | 0.74 | 1.03 | 0.88 | 31 |
| (0.97) | 18.75 | 2.63 | 2072 | 0.84 | 1.66 | 1.05 | 49 |
| 1.59 | 19.72 | 12.52 | 28237 | 0.84 | 1.43 | 1.18 | 20 |
| (10.09) | $15.63 | (25.44)<sup>(11)</sup> | $2689 | 0.79% | 0.98% | 0.94% | 70% |
| 4.50 | 25.72 | 24.78 | 5336 | 0.79 | 1.17 | 0.44 | 30 |
| 2.83 | 21.22 | 17.52 | 28372 | 0.84 | 1.13 | 0.74 | 31 |
| (1.29) | 18.39 | 2.56 | 21582 | 0.94 | 1.65 | 1.17 | 49 |
| 1.55 | 19.68 | 12.44 | 11362 | 0.94 | 1.25 | 0.84 | 20 |

---

<br> Virtus Mutual Funds 101

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**Financial Highlights (continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Net Asset Value,<br>Beginning of Period** | **Net Investment Income (Loss)<sup>(1)</sup>** | **Capital Gains Distributions<br>Received from Underlying Funds<sup>(1)</sup>** | **Net Realized and<br>Unrealized Gain (Loss)** | **Total from Investment Operations** | **Dividends from<br>Net Investment Income** | **Distributions from<br>Net Realized Gains** | **Total Distributions** | **Payment from Affiliate** |
| **Virtus Seix High Yield Income Fund** | **Virtus Seix High Yield Income Fund** | **Virtus Seix High Yield Income Fund** |  |  |  |  |  |  |  |
| **Class A**  |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $8.97 | 0.37 |  | (1.78) | (1.41) | (0.41) |  | (0.41) |  |
| 10/1/20 to 9/30/21 | 8.39 | 0.43 |  | 0.58 | 1.01 | (0.43) |  | (0.43) |  |
| 10/1/19 to 9/30/20 | 8.91 | 0.42 |  | (0.50) | (0.08) | (0.44) |  | (0.44) |  |
| 10/1/18 to 9/30/19 | 8.91 | 0.43 |  | 0.01 | 0.44 | (0.44) |  | (0.44) |  |
| 10/1/17 to 9/30/18 | 9.31 | 0.45 |  | (0.39) | 0.06 | (0.46) |  | (0.46) |  |
| **Class C** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $8.95 | 0.31 |  | (1.77) | (1.46) | (0.35) |  | (0.35) |  |
| 10/1/20 to 9/30/21 | 8.38 | 0.37 |  | 0.56 | 0.93 | (0.36) |  | (0.36) |  |
| 10/1/19 to 9/30/20 | 8.89 | 0.36 |  | (0.49) | (0.13) | (0.38) |  | (0.38) |  |
| 10/1/18 to 9/30/19 | 8.90 | 0.37 |  |  | 0.37 | (0.38) |  | (0.38) |  |
| 10/1/17 to 9/30/18 | 9.30 | 0.39 |  | (0.39) |  | (0.40) |  | (0.40) |  |
| **Institutional Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $8.57 | 0.37 |  | (1.70) | (1.33) | (0.43) |  | (0.43) |  |
| 10/1/20 to 9/30/21 | 8.04 | 0.44 |  | 0.54 | 0.98 | (0.45) |  | (0.45) |  |
| 10/1/19 to 9/30/20 | 8.56 | 0.43 |  | (0.48) | (0.05) | (0.47) |  | (0.47) |  |
| 10/1/18 to 9/30/19 | 8.58 | 0.44 |  | 0.01 | 0.45 | (0.47) |  | (0.47) |  |
| 10/1/17 to 9/30/18 | 8.98 | 0.46 |  | (0.37) | 0.09 | (0.49) |  | (0.49) |  |
| **Class P** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $8.54 | 0.37 |  | (1.69) | (1.32) | (0.43) |  | (0.43) |  |
| 10/1/20 to 9/30/21 | 8.01 | 0.44 |  | 0.54 | 0.98 | (0.45) |  | (0.45) |  |
| 10/1/19 to 9/30/20 | 8.53 | 0.43 |  | (0.48) | (0.05) | (0.47) |  | (0.47) |  |
| 10/1/18 to 9/30/19 | 8.55 | 0.44 |  | 0.01 | 0.45 | (0.47) |  | (0.47) |  |
| 10/1/17 to 9/30/18 | 8.96 | 0.46 |  | (0.38) | 0.08 | (0.49) |  | (0.49) |  |
| **Administrative Class** |  |  |  |  |  |  |  |  |  |
| 10/1/21 to 9/30/22 | $8.52 | 0.35 |  | (1.68) | (1.33) | (0.43) |  | (0.43) |  |
| 10/1/20 to 9/30/21 | 8.02 | 0.74 |  | 0.40 | 1.14 | (0.64) |  | (0.64) |  |
| 10/1/19 to 9/30/20 | 8.54 | 0.42 |  | (0.48) | (0.06) | (0.46) |  | (0.46) |  |
| 10/1/18 to 9/30/19 | 8.44 | 0.43 |  | 0.03 | 0.46 | (0.36) |  | (0.36) |  |
| 10/1/17 to 9/30/18 | 8.84 | 0.44 |  | (0.37) | 0.07 | (0.47) |  | (0.47) |  |

---

<br> 102 Virtus Mutual Funds

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**Financial Highlights**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Change in Net Asset Value** | **Net Asset Value, End of Period** | **Total Return<sup>(2)(3)</sup>** | **Net Assets, End of Period<br>(in thousands)** | **Ratio of Net Expenses to<br>Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Gross Expenses<br>to Average Net Assets<sup>(4)(5)</sup>** | **Ratio of Net Investment Income (Loss)<br>to Average Net Assets<sup>(4)</sup>** | **Portfolio Turnover Rate<sup>(3)</sup>** |
| (1.82) | $7.15 | (16.24)% | $12984 | 1.13% | 1.33% | 4.41% | 51% |
| 0.58 | 8.97 | 12.20 | 20763 | 1.13<br><sup>(6)</sup> | 1.14 | 4.93 | 153 |
| (0.52) | 8.39 | (0.82) | 20251 | 1.12 | 1.12 | 4.96 | 143 |
|  | 8.91 | 5.18 | 26937 | 1.07 | 1.07 | 4.98 | 70 |
| (0.40) | 8.91 | 0.67 | 33768 | 1.05 | 1.05 | 4.93 | 40 |
| (1.81) | $7.14 | (16.76)% | $1195 | 1.82% | 1.88% | 3.72% | 51% |
| 0.57 | 8.95 | 11.32 | 2255 | 1.86<br><sup>(6)</sup> | 1.89 | 4.21 | 153 |
| (0.51) | 8.38 | (1.41) | 3880 | 1.81 | 1.81 | 4.26 | 143 |
| (0.01) | 8.89 | 4.33 | 4880 | 1.76 | 1.76 | 4.28 | 70 |
| (0.40) | 8.90 | 0.02 | 8544 | 1.71 | 1.71 | 4.27 | 40 |
| (1.76) | $6.81 | (16.02)% | $16713 | 0.84% | 0.99% | 4.66% | 51% |
| 0.53 | 8.57 | 12.43 | 42666 | 0.87 | 0.88 | 5.19 | 153 |
| (0.52) | 8.04 | (0.50) | 51920 | 0.83 | 0.83 | 5.22 | 143 |
| (0.02) | 8.56 | 5.48 | 77365 | 0.79 | 0.79 | 5.25 | 70 |
| (0.40) | 8.58 | 1.03 | 122078 | 0.73 | 0.73 | 5.26 | 40 |
| (1.75) | $6.79 | (15.97)% | $1561 | 0.81% | 0.90% | 4.73% | 51% |
| 0.53 | 8.54 | 12.47 | 4196 | 0.85 | 0.95 | 5.20 | 153 |
| (0.52) | 8.01 | (0.46) | 10113 | 0.80 | 0.80 | 5.28 | 143 |
| (0.02) | 8.53 | 5.56 | 12128 | 0.73 | 0.73 | 5.31 | 70 |
| (0.41) | 8.55 | 0.94 | 17535 | 0.70 | 0.70 | 5.26 | 40 |
| (1.76) | $6.76 | (16.19)% | $114 | 1.01%<sup>(6)(13)</sup> | 0.88% | 4.47% | 51% |
| 0.50 | 8.52 | 14.60 | 111 | 1.00 | 2.16 | 8.73 | 153 |
| (0.52) | 8.02 | (0.63) | 26 | 1.00 | 1.00 | 5.14 | 143 |
| 0.10 | 8.54 | 5.60 | 24 | 0.94 | 0.94 | 5.10 | 70 |
| (0.40) | 8.44 | 0.83 | 20 | 0.88 | 0.88 | 4.93 | 40 |

---

(1) Calculated using average shares outstanding.

(2) Sales charges, where applicable, are not
reflected in the total return calculation.

(3) Not
annualized for periods less than one year.

(4) Annualized
for periods less than one year.

(5) The
Funds will also indirectly bear their prorated share of expenses of any underlying funds in which they
invest. Such expenses are not included in the calculation of this ratio.

(6) See Note 4D in Notes to Financial Statements
for information on recapture of expenses previously reimbursed and/or waived.

(7) Amount is less than $0.005 per share.

<br> Virtus Mutual Funds 103

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**Financial Highlights (continued)**

(8) Due to a change in expense cap, the ratio
shown is a blended expense ratio.

(9) Inception
date.

(10) Portfolio turnover
is representative of the Fund for the entire period.

(11) Payment from affiliate had no impact on
total return.

(12) Payments from affiliates
increased the end of period net asset value and total return by less than $0.01 and 0.01%, respectively.

(13) The share class is
currently under its expense limitation.

<br> 104 Virtus Mutual Funds

------

**This Appendix A is part of, and is incorporated into, the prospectus.**

### Appendix A

### Intermediary Sales Charge Discounts and Waivers
Specific intermediaries may have different policies and procedures regarding the availability of front-end sales load waivers or CDSC waivers, which are discussed below. In all instances, it is the purchaser's responsibility to notify the fund or the purchaser's financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts. For waivers and discounts not available through a particular intermediary, in order to receive these waivers or discounts shareholders will have to purchase fund shares through another intermediary offering such waivers or discounts or directly from the fund if the fund offers such waivers or discounts. Please see the section entitled "Sales Charges – What arrangement is best for you?" for more information on sales charges and waivers available for different classes.

#### Ameriprise Financial

#### Class A Shares Front-End Sales Charge Waivers Available at Ameriprise Financial
*The following information applies to Class A shares purchases if you have an account with or otherwise purchase fund shares through Ameriprise Financial:*

Shareholders purchasing fund shares through an Ameriprise Financial retail brokerage account are eligible for the following front-end sales charge waivers, which may differ from those disclosed elsewhere in this prospectus:

 Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the same fund family).

 Shares exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following a shorter holding period, that waiver will apply.

 Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.

 Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor's spouse, advisor's lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor's lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant.

 Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement).

#### Edward D. Jones & Co., L.P. ("Edward Jones")

#### Policies Regarding Transactions Through Edward Jones
*The following information has been provided by Edward Jones:*

Effective February 1, 2021, the following information supersedes prior information with respect to transactions and positions held in fund shares through an Edward Jones system. Clients of Edward Jones (also referred to as "shareholders") purchasing fund shares on the Edward Jones commission and fee-based platforms are eligible only for the following sales charge discounts (also referred to as "breakpoints") and waivers, which can differ from discounts and waivers described elsewhere in this prospectus or SAI or through another broker-dealer. In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase of any relationship, holdings of Virtus Funds, or other facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.

#### Breakpoints, Rights of Accumulation, and/or Letters of Intent

####  Breakpoints as described in this prospectus.
 **Rights of Accumulation ("ROA").** The applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans) of Virtus Funds held by the shareholder or in an account grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations ("pricing groups"). If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform. The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase or acquired in exchange for shares purchased with a sales charge. The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level. ROA is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).

 **Letter of Intent ("LOI")**. Through a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market value of

<br> Virtus Mutual Funds 105

------

qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges will be adjusted if LOI is not met. If the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.

#### Sales Charge Waivers
Sales charges are waived for the following shareholders and in the following situations:

 Associates of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.

 Shares purchased in an Edward Jones fee-based program.

 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment.

 Shares purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account or the purchase is made in an individual retirement account with proceeds from liquidations in a non-retirement account.

 Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in the prospectus.

 Exchanges from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or earlier at the discretion of Edward Jones.

#### Contingent Deferred Sales Charges ("CDSC") Waivers
If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following conditions:

 Death or disability of the shareholder.

 Systematic withdrawals with up to 10% per year of the account value.

 Return of excess contributions from an Individual Retirement Account (IRA).

 Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches qualified age based on applicable IRS regulations.

 Shares sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.

 Shares exchanged in an Edward Jones fee-based program.

 Shares acquired through NAV reinstatement.

 Shares redeemed at the discretion of Edward Jones for Minimum Balances, as described below.

#### Other Important Information Regarding Transactions Through Edward Jones

#### Minimum Purchase Amounts
 Initial purchase minimum: $250

 Subsequent purchase minimum: none

#### Minimum Balances
Edward Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that are not included in this policy:

 A fee-based account held on an Edward Jones platform.

 A 529 account held on an Edward Jones platform.

 An account with an active systematic investment plan or LOI.

#### Exchanging Share Classes
 At any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of the same fund.

<br> 106 Virtus Mutual Funds

------

#### Janney Montgomery Scott LLC
Effective May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC ("Janney") brokerage account, you will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge ("CDSC"), or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund's Prospectus or the SAI.

#### Front-end Sales Charge\* Waivers on Class A Shares available at Janney
 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

 Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.

 Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement).

 Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

 Shares acquired through a right of reinstatement.

 Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney's policies and procedures.

#### CDSC Waivers on Class A Shares and Class C Shares available at Janney
 Shares sold upon the death or disability of the shareholder.

 Shares sold as part of a systematic withdrawal plan as described in this Prospectus.

 Shares purchased in connection with a return of excess contributions from an IRA account.

 Shares sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the fund's Prospectus.

 Shares sold to pay Janney fees but only if the transaction is initiated by Janney.

 Shares acquired through a right of reinstatement.

 Shares exchanged into the same share class of a different fund.

#### Front-end Sales Charge\* Discounts Available at Janney: Breakpoints, Rights of Accumulation, and/or Letters of Intent
 Breakpoints as described in this prospectus.

 Rights of accumulation ("ROA"), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within the purchaser's household at Janney. Eligible fund family assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial professional about such assets.

 Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder notifies his or her financial professional about such assets.

\*Also referred to as an "initial sales charge."

#### Merrill Lynch
Shareholders purchasing fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.

#### Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch
 Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan.

 Shares purchased by or through a 529 Plan (does not include 529 Plan units or 529-specific share classes or equivalents).

 Shares purchased through a Merrill Lynch affiliated investment advisory program.

 Shares exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch's policies relating to sales load discounts and waivers.

 Shares purchased by third party investment professionals on behalf of their advisory clients through Merrill Lynch's platform.

 Shares of funds purchased through the Merrill Edge Self-Directed platform.

<br> Virtus Mutual Funds 107

------

 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

 Shares exchanged from Class C (i.e. level-load) shares of the same fund pursuant to Merrill Lynch's policies relating to sales load discounts and waivers.

 Employees and registered representatives of Merrill Lynch or its affiliates and their family members.

 Directors or Trustees of the fund, and employees of the fund's investment adviser or any of its affiliates, as described in this prospectus.

 Eligible shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill Lynch's account maintenance fees are not eligible for reinstatement.

#### CDSC Waivers on Class A Shares and Class C Shares available at Merrill Lynch
 Death or disability of the shareholder.

 Shares sold as part of a systematic withdrawal plan as described in the fund's prospectus.

 Return of excess contributions from an IRA account.

 Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code.

 Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch.

 Shares acquired through a right of reinstatement.

 Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only).

 Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch's policies relating to sales load discounts and waivers.

#### Front-end Load Discounts on Class A Shares Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
 Breakpoints as described in this prospectus.

 Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in this prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within the purchaser's household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial professional about such assets.

 Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time.

#### Morgan Stanley
Effective July 1, 2018, shareholders purchasing fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than those disclosed elsewhere in this prospectus or the SAI.

#### Front-end Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
 Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

 Morgan Stanley employee and employee-related accounts according to Morgan Stanley's account linking rules.

 Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund.

 Shares purchased through a Morgan Stanley self-directed brokerage account.

 Class C (i.e., level-load) Shares that are no longer subject to a contingent deferred sales charge and are converted to Class A Shares of the same fund pursuant to Morgan Stanley Wealth Management's share class conversion program.

 Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge.

#### Oppenheimer & Co. Inc. ("OPCO")
Effective February 26, 2020, shareholders purchasing fund shares through an OPCO platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or SAI.

<br> 108 Virtus Mutual Funds

------

#### Front-end Sales Charge Waivers on Class A Shares available at OPCO
 Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan.

 Shares purchased by or through a 529 Plan.

 Shares purchased through a OPCO affiliated investment advisory program.

 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

 Shares purchased using the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same amount, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement).

 A shareholder in the fund's Class C shares will have their shares exchanged at net asset value into Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the exchange is in line with the policies and procedures of OPCO.

 Employees and registered representatives of OPCO or its affiliates and their family members.

 Directors or Trustees of the fund, and employees of the fund's investment adviser or any of its affiliates, as described in this prospectus.

#### CDSC Waivers on Class A Shares and Class C Shares available at OPCO
 Death or disability of the shareholder.

 Shares sold as part of a systematic withdrawal plan as described in this Prospectus.

 Return of excess contributions from an IRA account.

 Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS guidance.

 Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO.

 Shares acquired through a right of reinstatement.

#### Front-end Sales Charge Discounts Available at OPCO: Breakpoints, Rights of Accumulation, and/or Letters of Intent
 Breakpoints as described in this prospectus.

 Rights of accumulation ("ROA"), which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial professional about such assets.

#### Raymond James & Associates, Inc., Raymond James Financial Services, Inc. and each such entity's affiliates ("Raymond James")
Effective March 1, 2019, shareholders purchasing fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.

#### Front-end Sales Load Waivers on Class A Shares available at Raymond James
 Shares purchased in an investment advisory program.

 Shares purchased within the same fund family through a systematic reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

 Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.

 Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement).

 A shareholder in a fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James.

#### CDSC Waivers on Class A Shares and Class C Shares available at Raymond James
 Death or disability of the shareholder.

 Shares sold as part of a systematic withdrawal plan as described in this prospectus.

 Return of excess contributions from an IRA account.

 Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in this prospectus.

<br> Virtus Mutual Funds 109

------

 Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.

 Shares acquired through a right of reinstatement.

#### Front-end Load Discounts on Class A Shares Available at Raymond James: Breakpoints, and/or Rights of Accumulation, and/or Letters of Intent
 Breakpoints as described in this prospectus.

 Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial professional about such assets.

 Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial professional about such assets.

#### Robert W. Baird & Co. Incorporated ("Baird")
Effective June 15, 2020, shareholders purchasing fund shares through a Baird platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.

#### Front-end Sales Charge Waivers on Class A Shares available at Baird
 Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing share of the same fund.

 Shares purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird.

 Shares purchased using the proceeds of redemptions from another Virtus fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement).

 Shareholders in Class C Shares will have their shares exchanged at net asset value into Class A shares of the same fund if the shares are no longer subject to CDSC and the exchange is in line with the policies and procedures of Baird.

 Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

#### CDSC Waivers on Class A Shares and Class C Shares available at Baird
 Shares sold due to the death or disability of the shareholder.

 Shares sold as part of a systematic withdrawal plan as described in this Prospectus.

 Shares bought due to returns of excess contributions from an IRA account.

 Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable Internal Revenue Service regulations as described in this prospectus.

 Shares sold to pay Baird fees but only if the transaction is initiated by Baird.

 Shares acquired through a right of reinstatement.

#### Front-end Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of Accumulations
 Breakpoints as described in this prospectus.

 Rights of accumulation ("ROA"), which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of Virtus fund assets held by accounts within the purchaser's household at Baird. Eligible Virtus fund assets not held at Baird may be included in the rights of accumulations calculation only if the shareholder notifies his or her financial professional about such assets.

 Letters of intent ("LOI") allow for breakpoint discounts based on anticipated purchases of Virtus funds through Baird, over a 13-month period of time.

#### Stifel, Nicolaus & Company, Incorporated ("Stifel")
Effective July 1, 2020, shareholders purchasing fund shares through a Stifel platform or account or who own shares for which Stifel or an affiliate is the broker-dealer of record are eligible for the following additional sales charge waiver.

#### Front-end Sales Load Waiver on Class A Shares available at Stifel
 Class C shares that have been held for more than seven (7) years will be exchanged for Class A shares of the same fund pursuant to Stifel's policies and procedures without the imposition of a front-end sales load.

All other sales charge waivers and reductions described elsewhere in this prospectus or the SAI still apply.

<br> 110 Virtus Mutual Funds

------

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| |
|:---|
| Virtus Mutual Funds<br>P.O. Box 9874<br>Providence, RI 02940-8074 |
| **ADDITIONAL INFORMATION**<br>You can find more information about the funds in the following documents: |
| **Appendix A – Intermediary Sales Charge Discounts and Waivers**<br>Appendix A – Intermediary Sales Charge Discounts and Waivers contains more information about specific sales charge discounts and waivers available for shareholders who purchase fund shares through a specific intermediary. Appendix A is incorporated by reference and is legally part of this prospectus. |
| **Annual and Semiannual Reports** Annual and semiannual reports contain more information about the funds' investments. The annual report discusses the market conditions and investment strategies that significantly affected the funds' performance during the last fiscal year. |
| **Statement of Additional Information (SAI)** The SAI contains more detailed information about the funds. It is incorporated by reference and is legally part of the prospectus.<br>To obtain free copies of these documents, you can download copies from the Our Products section of virtus.com, or you can request copies by calling Virtus Fund Services toll-free at 800-243-1574. You may also call this number to request other information about the funds or to make shareholder inquiries.<br>Information about the funds (including the SAI) can be reviewed and copied at the Securities and Exchange Commission's ("SEC") Public Reference Room in Washington, DC. For information about the operation of the Public Reference Room, call 202-551-8090. Reports and other information about the funds are available in the EDGAR database on the SEC's Internet site at sec.gov. You may also obtain copies upon payment of a duplicating fee by writing the Public Reference Section of the SEC, Washington, DC 20549-6009 or by electronic request at publicinfo@sec.gov.<br>Virtus Fund Services: 800-243-1574 |
| **Daily NAV Information**<br>The daily NAV for each fund may be obtained from the Our Products section of virtus.com. |

---

<br> Investment Company Act File No. 811-22167 <br> 8060 1-23

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#### Virtus Strategy Trust

#### 101 Munson Street

#### Greenfield, MA 01301

#### STATEMENT OF ADDITIONAL INFORMATION

#### January 27, 2023
Virtus Strategy Trust is an open-end management investment company issuing shares in 8 separate series or "Funds", all of which are publicly offered and described herein:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TICKER SYMBOL BY CLASS** |
| **FUND** | **A** | **C** | **Institutional** | **P** | **Administrative** | **Administrative** | **R6** |
| Virtus Convertible Fund | ANZAX  | ANZCX  | ANNPX | ANCMX  | ANCMX  | ANNAX  | VAADX  |
| Virtus Duff & Phelps Water Fund | AWTAX | AWTCX | AWTIX | AWTPX | AWTPX |  |  |
| Virtus Global Allocation Fund | PALAX | PALCX | PALLX | AGAPX | AGAPX | AGAMX | AGASX |
| Virtus International Small-Cap Fund | AOPAX | AOPCX | ALOIX | ALOPX | ALOPX |  | AIISX |
| Virtus Newfleet Short Duration High Income Fund | ASHAX | ASHCX | ASHIX | ASHPX | ASHPX |  | ASHSX |
| Virtus NFJ Emerging Markets Value Fund | AZMAX | AZMCX | AZMIX | AZMPX | AZMPX |  |  |
| Virtus NFJ Global Sustainability Fund | ASUAX |  | ASTNX | ASTPX | ASTPX |  |  |
| Virtus Seix High Yield Income Fund | AYBAX | AYBCX | AYBIX | AYBPX | AYBPX | AYBVX |  |

---

This Statement of Additional Information ("SAI") relates to the Class A, Class C, Institutional Class, Class P, Administrative Class and Class R6 shares of the Funds. This SAI is not a prospectus, and it should be read in conjunction with the Prospectuses for the Funds dated January 27, 2023 as described below and as supplemented and amended from time to time. Each Fund's Prospectuses are incorporated by reference into this SAI, and the portions of this SAI that relate to each fund have been incorporated by reference into such fund's Prospectuses. The portions of this SAI that do not relate to a Fund do not form a part of such Fund's SAI, have not been incorporated by reference into such Fund's Prospectuses and should not be relied upon by investors in such Fund.

The Prospectuses may be obtained by downloading them from virtus.com; by calling VP Distributors, LLC at 800.243.1574; or by writing to the Distributor at One Financial Plaza, Hartford, CT 06103.

Capitalized terms used and not defined herein have the same meanings as those used in the Prospectuses.

The audited financial statements for the Funds appear in each Fund's [annual report](http://www.sec.gov/Archives/edgar/data/1423227/000119312522297488/d414465dncsr.htm) for its most recent fiscal year. The financial statements from the foregoing annual report are incorporated herein by reference. Shareholders may obtain a copy of the Annual Report dated September 30, 2022,without charge, by calling 800.243.1574 or by downloading it from virtus.com.

Transfer Agent: 800.243.1574

Adviser Consulting Group: 800.243.4361

Telephone Orders: 800.367.5877

Web Site: virtus.com

------

#### **Table of Contents**

#### Page

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| | |
|:---|:---|
| [GLOSSARY](#x1x3) | [3](#x1x3) |
| [GENERAL INFORMATION AND HISTORY](#x2x3) | [6](#x2x3) |
| [MORE INFORMATION ABOUT FUND INVESTMENT STRATEGIES & RELATED RISKS](#x3x3) | [14](#x3x3) |
| [INVESTMENT LIMITATIONS](#x4x3) | [70](#x4x3) |
| [MANAGEMENT OF THE TRUST](#x5x3) | [72](#x5x3) |
| [CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES](#x6x3) | [92](#x6x3) |
| [INVESTMENT ADVISORY AND OTHER SERVICES](#x7x3) | [92](#x7x3) |
| [DISTRIBUTION PLANS](#x8x3) | [102](#x8x3) |
| [PORTFOLIO MANAGERS](#x9x3) | [105](#x9x3) |
| [BROKERAGE ALLOCATION AND OTHER PRACTICES](#x10x3) | [110](#x10x3) |
| [PURCHASE, REDEMPTION AND PRICING OF SHARES](#x11x3) | [112](#x11x3) |
| [INVESTOR ACCOUNT SERVICES AND POLICIES](#x12x3) | [120](#x12x3) |
| [DIVIDENDS, DISTRIBUTIONS AND TAXES](#x13x3) | [122](#x13x3) |
| [PERFORMANCE INFORMATION](#x14x3) | [128](#x14x3) |
| [FINANCIAL STATEMENTS](#x15x3) | [130](#x15x3) |
| [APPENDIX A — DESCRIPTION OF RATINGS](#x16x3) | A- [1](#x16x3) |
| [APPENDIX B — CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS](#x17x3) | B- [1](#x17x3) |

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No person has been authorized to give any information or to make any representations not contained in this SAI or in the Prospectuses in connection with the offering made by the Prospectuses, and, if given or made, such information or representations must not be relied upon as having been authorized by the Funds. The Prospectuses do not constitute an offering by the Funds in any jurisdiction in which such offering may not lawfully be made.

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#### GLOSSARY

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| | |
|:---|:---|
| 1933 Act | The Securities Act of 1933, as amended |
| 1940 Act | The Investment Company Act of 1940, as amended |
| ACH | Automated Clearing House, a nationwide electronic money transfer system that provides for the inter-bank clearing of credit and debit transactions and for the exchange of information among participating financial institutions |
| Administrator | The Trust's administrative agent, Virtus Fund Services, LLC |
| ADRs | American Depositary Receipts |
| ADSs | American Depositary Shares |
| Adviser | The investment adviser to the Funds, Virtus Investment Advisers, Inc. |
| AllianzGI U.S. | Allianz Global Investors U.S. LLC, former subadviser to Emerging Markets Opportunities Fund, Focused Growth Fund, Global Small-Cap Fund, Health Sciences Fund, Income & Growth Fund, Mid-Cap Growth Fund, Small-Cap Fund and Technology Fund |
| BNY Mellon | BNY Mellon Investment Servicing (US) Inc., the sub-administrative and accounting agent and sub-transfer agent for the Funds |
| Board | The Board of Trustees of Virtus Strategy Trust (also referred to herein as the "Trustees") |
| CCO | Chief Compliance Officer |
| CDRs | Continental Depositary Receipts (another name for EDRs) |
| CDSC | Contingent Deferred Sales Charge |
| CEA | Commodity Exchange Act, which is the U.S. law governing trading in commodity futures |
| CFTC | Commodity Futures Trading Commission, which is the U.S. regulator governing trading in commodity futures |
| Code | The Internal Revenue Code of 1986, as amended, which is the law governing U.S. federal taxes |
| Convertible Fund | Virtus Convertible Fund |
| Custodian | The custodian of the Funds' assets, The Bank of New York Mellon |
| Distributor | The principal underwriter of shares of the Funds, VP Distributors, LLC |
| DST | DST Asset Manager Solutions Inc., sub-transfer agent |
| Duff & Phelps | Duff & Phelps Investment Management Co., subadviser to the Water Fund |
| EDRs | European Depositary Receipts (another name for CDRs) |
| Emerging Markets Value Fund | Virtus NFJ Emerging Markets Value Fund |

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| | |
|:---|:---|
| FHFA | Federal Housing Finance Agency, an independent Federal agency that regulates FNMA, FHLMC and the twelve Federal Home Loan Banks |
| FHLMC | Federal Home Loan Mortgage Corporation, also known as "Freddie Mac", which is a government-sponsored corporation formerly owned by the twelve Federal Home Loan Banks and now owned entirely by private stockholders |
| FINRA | Financial Industry Regulatory Authority, a self-regulatory organization with authority over registered broker-dealers operating in the United States, including VP Distributors |
| Fitch | Fitch Ratings, Inc. |
| FNMA | Federal National Mortgage Association, also known as "Fannie Mae", which is a government-sponsored corporation owned entirely by private stockholders and subject to general regulation by the Secretary of Housing and Urban Development |
| Fund Complex | The group of Funds sponsored by Virtus and managed by the Adviser or its affiliates, including the Virtus Mutual Funds, Virtus Variable Insurance Trust and certain other closed-end funds |
| Funds | The series of the Trust discussed in this SAI |
| GDRs | Global Depositary Receipts |
| GICs | Guaranteed Investment Contracts |
| Global Allocation Fund | Virtus Global Allocation Fund |
| Global Sustainability Fund | Virtus NFJ Global Sustainability Fund |
| GNMA | Government National Mortgage Association, also known as "Ginnie Mae", which is a wholly-owned United States Government corporation within the Department of Housing and Urban Development |
| High Yield Fund | Virtus Seix High Yield Income Fund |
| International Small-Cap Fund | Virtus International Small-Cap Fund |
| IMF | International Monetary Fund, an international organization seeking to promote international economic cooperation, international trade, employment and exchange rate stability, among other things |
| Independent Trustees | Those members of the Board who are not "interested persons" as defined by the 1940 Act |
| IRA | Individual Retirement Account |
| IRS | The United States Internal Revenue Service, which is the arm of the U.S. government that administers and enforces the Code |
| Kroll | Kroll Bond Rating Agency |
| LIBOR | London Interbank Offering Rate, an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market |
| Moody's | Moody's Investors Service, Inc. |

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| | |
|:---|:---|
| NAV | Net Asset Value, which is the per-share price of a Fund |
| Newfleet | Newfleet Asset Management, a division of Virtus Fixed Income Advisers, LLC, subadviser to the Short Duration High Income Fund |
| NFJ | NFJ Investment Group, LLC, subadviser to Emerging Markets Value Fund and Global Sustainability Fund |
| NFJ Funds | Collectively, Emerging Markets Value Fund and Global Sustainability Fund |
| NYSE | New York Stock Exchange |
| OCC | Options Clearing Corporation, a large equity derivatives clearing corporation |
| PERLS | Principal Exchange Rate Linked Securities |
| PNX | Phoenix Life Insurance Company, which is the former parent company of Virtus Investment Partners, Inc., and certain of its corporate affiliates |
| Prospectuses | The prospectuses for the Funds, as amended from time to time |
| PwC | PricewaterhouseCoopers LLP, the independent registered public accounting firm for the Trust |
| Regulations | The Treasury Regulations promulgated under the Code |
| RIC | Regulated Investment Company, a designation under the Code indicating a U.S.-registered investment company meeting the specifications under the Code allowing the investment company to be exempt from paying U.S. federal income taxes |
| S&P | S&P Global Ratings |
| S&P 500<sup><sup>®</sup></sup> Index | The Standard & Poor's 500<sup><sup>®</sup></sup> Index, which is a free-float market capitalization-weighted index of 500 of the largest U.S. companies, calculated on a total return basis with dividends reinvested |
| SAI | Statement of Additional Information, such as this document, which is a part of a mutual fund registration statement |
| SEC | U.S. Securities and Exchange Commission |
| Seix | Seix Investment Advisors, a division of Virtus Fixed Income Advisers, LLC, subadviser to the High Yield Fund |
| Short Duration High Income Fund | Virtus Newfleet Short Duration High Income Fund |
| SMBS | Stripped Mortgage-backed Securities |
| Transfer Agent | The Trust's transfer agent, Virtus Fund Services, LLC |
| Trust | Virtus Strategy Trust |
| VFS | Virtus Fund Services, LLC, the Administrator and Transfer Agent of the Trust |
| VIA | Virtus Investment Advisers, Inc., the Adviser to the funds |

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| | |
|:---|:---|
| Virtus | Virtus Investment Partners, Inc., which is the parent company of the Adviser, the Distributor, the Administrator/Transfer Agent and NFJ |
| Virtus Funds | The family of funds overseen by the Board, consisting of the Funds, The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, the series of Virtus Alternative Solutions Trust, the series of Virtus Asset Trust, the series of Virtus Equity Trust, the series of Virtus Event Opportunities Trust, the series of Virtus Investment Trust, the series of Virtus Opportunities Trust, the series of Virtus Retirement Trust and the series of Virtus Variable Insurance Trust |
| Virtus Mutual Funds | The family of funds consisting of the Funds, The Merger Fund<sup>®</sup>, the series of Virtus Alternative Solutions Trust, the series of Virtus Asset Trust, the series of Virtus Equity Trust, the series of Virtus Event Opportunities Trust, the series of Virtus Investment Trust, and the series of Virtus Opportunities Trust |
| Voya | Voya Investment Management Co., LLC, subadviser to the Convertible Fund |
| VP Distributors | VP Distributors, LLC, the Trust's Distributor |
| VVIT | Virtus Variable Insurance Trust, a separate trust consisting of several series advised by VIA and distributed by VP Distributors |
| Water Fund | Virtus Duff & Phelps Water Fund |

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#### GENERAL INFORMATION AND HISTORY
The Trust is an open-end management investment company ("mutual fund") that currently consists of eight separate investment series, all of which are offered in this Statement of Additional Information. The Trust was organized as a Massachusetts business trust on January 10, 2008.

This Statement of Additional Information relates to the prospectus for the Virtus Convertible Fund, Virtus Duff & Phelps Water Fund, Virtus Global Allocation Fund, Virtus International Small-Cap Fund, Virtus Newfleet Short Duration High Income Fund, Virtus NFJ Emerging Markets Value Fund, Virtus NFJ Global Sustainability Fund and Virtus Seix High Yield Income Fund. The Trust may from time to time create additional series offered through new, revised or supplemented prospectus or private placement memoranda and statements of additional information.

Effective February 1, 2021, the name of each fund listed in the column entitled "Previous Name" in the table below was changed to the corresponding name listed in the column entitled "Subsequent Name." In addition, effective February 1, 2021, the name of the Trust changed from "Allianz Funds Multi-Strategy Trust" to "Virtus Strategy Trust."

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| | |
|:---|:---|
| **Previous Name** | **Subsequent Name** |
| AllianzGI Convertible Fund | Virtus AllianzGI Convertible Fund |
| AllianzGI Emerging Markets Value Fund | Virtus NFJ Emerging Markets Value Fund |
| AllianzGI Global Allocation Fund | Virtus AllianzGI Global Allocation Fund |
| AllianzGI Global Sustainability Fund | Virtus AllianzGI Global Sustainability Fund |
| AllianzGI High Yield Bond Fund | Virtus AllianzGI High Yield Bond Fund |
| AllianzGI International Small-Cap Fund | Virtus AllianzGI International Small-Cap Fund  |
| AllianzGI Short Duration High Income Fund | Virtus AllianzGI Short Duration High Income Fund |
| AllianzGI Water Fund | Virtus AllianzGI Water Fund |

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Effective July 25, 2022, the name of each fund listed in the column entitled "Previous Name" in the table below was changed to the corresponding name listed in the column entitled "Subsequent Name."

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| | |
|:---|:---|
| **Previous Name** | **Subsequent Name** |

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| | |
|:---|:---|
| Virtus AllianzGI Convertible Fund | Virtus Convertible Fund |
| Virtus AllianzGI Global Allocation Fund | Virtus Global Allocation Fund |
| Virtus AllianzGI Global Sustainability Fund | Virtus NFJ Global Sustainability Fund |
| Virtus AllianzGI High Yield Bond Fund | Virtus Seix High Yield Income Fund |
| Virtus AllianzGI International Small-Cap Fund  | Virtus International Small-Cap Fund  |
| Virtus AllianzGI Short Duration High Income Fund | Virtus Newfleet Short Duration High Income Fund |
| Virtus AllianzGI Water Fund | Virtus Duff & Phelps Water Fund |

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The Trust's Prospectuses describe the investment objectives of the Funds and the strategies that each Fund will employ in seeking to achieve its investment objective. The respective investment objective(s) for each Fund is a non-fundamental policy of that Fund and may be changed without shareholder approval upon 60 days' notice. The following discussion supplements the disclosure in the Prospectuses.

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| | | |
|:---|:---|:---|
| **Fund Type** | **Fund** | **Investment Objective(s)** |
| Fixed Income | Convertible Fund | The fund seeks maximum total return, consisting of capital appreciation and current income |
|  | High Yield Fund | The fund seeks a high level of current income and capital growth |
|  | Short Duration High Income Fund | The fund seeks a high level of current income with lower volatility than the broader high yield market  |
| International/Global | Duff & Phelps Water Fund | The fund seeks long-term capital appreciation |
|  | Global Allocation Fund | The fund seeks after-inflation capital appreciation and current income |
|  | International Small-Cap Fund | The fund seeks maximum long-term capital appreciation |
|  | Emerging Markets Value Fund | The fund seeks long-term capital appreciation |
|  | Global Sustainability Fund | The fund seeks long-term capital appreciation |

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#### Capital Stock and Organization of the Trust
The Trust is a Massachusetts business trust established under an Amended and Restated Agreement and Declaration of Trust on January 10, 2008 (the "Agreement and Declaration of Trust"). The capitalization of the Trust consists solely of an unlimited number of shares of beneficial interest each with a par value of $0.0001 or such other amount as may be fixed from time to time by the Trustees. The Board may establish additional series (with different investment objectives and fundamental policies) at any time in the future. Establishment and offering of additional series will not alter the rights of the Trust's shareholders.

Holders of shares of a Fund have equal rights with regard to voting, redemptions, dividends, distributions, and liquidations with respect to that Fund. Shareholders of all Funds vote on the election of Trustees. On matters affecting an individual Fund (such as approval of an investment advisory agreement or a change in fundamental investment policies) and also on matters affecting an individual class (such as approval of matters relating to a Plan of Distribution for a particular class of shares), a separate vote of that Fund or class is required. The Trust does not hold regular meetings of shareholders of the Funds. The Board will call a meeting of shareholders of a Fund when at least 10% of the outstanding shares of that Fund entitled to vote on the matter so request in writing. If the Board fails to call a meeting after being so notified, the shareholders may call the meeting. The Board will assist the shareholders by identifying other shareholders or mailing communications, as required under Section 16(c) of the 1940 Act.

Shares are fully paid, nonassessable and redeemable when they are issued. Shares do not have cumulative voting rights, preemptive rights or subscription rights. The assets received by the Trust for the issue or sale of shares of each Fund, and any class thereof and all income, earnings, profits and proceeds thereof, are allocated to such Fund, and class, respectively, subject only to the rights of creditors, and constitute the underlying assets of such Fund or class. The underlying assets of each Fund are required to be segregated on the books of account, and are to be charged with

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the expenses in respect to such Fund and with a share of the general expenses of the Trust. Any general expenses of the Trust not readily identifiable as belonging to a particular Fund or class will be allocated by or under the direction of the Board as it determines to be fair. The Trust is not bound to recognize any transfer of shares of a Fund or class until the transfer is recorded on the Trust's books pursuant to policies and procedures of the Transfer Agent.

Shares begin earning dividends on Fund shares the day after the Trust receives the shareholder's purchase payment. Net investment income from interest and dividends, if any, will be declared and paid at least annually to shareholders of record by the Funds. Any net capital gains from the sale of portfolio securities will be distributed no less frequently than once annually. Net short-term capital gains may be paid more frequently. Dividend and capital gain distributions of a Fund will be reinvested in additional shares of that Fund or Portfolio unless the shareholder elects to have the distributions paid in cash.

Under Massachusetts law, shareholders could, under certain circumstances, be held liable for the obligations of the Trust. However, the Declaration of Trust disclaims shareholder liability for acts or obligations of the Trust and requires that notice of such disclaimer be given in each agreement, obligation or instrument entered into or executed by the Trust or the Trustees. The Declaration of Trust also provides for indemnification out of a Fund's property for all loss and expense of any shareholder of that Fund held liable on account of being or having been a shareholder. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which such disclaimer is inoperative or the Fund of which he or she is or was a shareholder is unable to meet its obligations, and thus should be considered remote.

#### Diversification of Funds
Each Fund is diversified under the 1940 Act with the exception of Water Fund which is a non-diversified fund. Each Fund also intends to diversify its assets to the extent necessary to qualify for tax treatment as a RIC under the Code. (For information regarding qualification under the Code, see "Dividends, Distributions and Taxes" in this SAI.)

#### Fund Names and Investment Policies
Each of the Funds noted below has a name that suggests a focus on a particular type of investment. In accordance with Rule 35d-1 under the 1940 Act, each of these Funds has adopted a policy that it will, under normal circumstances, invest at least 80% of its assets in investments of the type suggested by its name. For this policy, "assets" means net assets plus the amount of any borrowings for investment purposes. In addition, in appropriate circumstances, synthetic investments may be included in the 80% basket if they have economic characteristics similar to the other investments included in the basket. A Fund's policy to invest at least 80% of its assets in such a manner is not a "fundamental" one, which means that it may be changed without a vote of a majority of the Fund's outstanding shares as defined in the 1940 Act. However, under Rule 35d-1, shareholders must be given written notice at least 60 days prior to any change by a Fund of its 80% investment policy.

Each of the Funds listed below has a policy that states at least 80% of its assets will be invested in investments of the type suggested by its name.

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| | |
|:---|:---|
| Convertible Fund | International Small-Cap Fund |
| Emerging Markets Value Fund | Short Duration High Income Fund |
| High Yield Fund | Water Fund  |

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Under such policies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Convertible Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in convertible securities. Convertible securities include, but are not limited to, corporate bonds, debentures, notes or preferred stocks and their hybrids that can be converted into (exchanged for) equity securities or other securities (such as warrants or options) that provide an opportunity for equity participation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Emerging Markets Value Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in equity securities of companies that are domiciled in or tied economically to countries with emerging securities markets—that is, countries with securities markets which are, in the opinion of the portfolio managers, less sophisticated that more developed markets in terms of participation by investors, analyst coverage, liquidity and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The High Yield Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in high yield securities ("junk bonds"), which are fixed income securities rated below investment grade (rated Ba or below by Moody's, or BB or below by S&P or Fitch, or if unrated, determined by the Manager to be of comparable quality).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The International Small-Cap Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in companies with smaller market capitalizations. The Fund currently defines companies with smaller market capitalizations as those with market capitalizations comparable to companies included in the MSCI ACWI ex US Small-Cap Index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Short Duration High Income Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in debt securities issued by public and private companies, which are rated below investment grade (rated Ba or below by Moody's or BB or below by S&P or Fitch, or if unrated, determined by the Manager to be of comparable quality) while maintaining an average duration of less than three years and in derivatives and other synthetic instruments that have economic characteristics similar to such debt securities. Derivatives transactions may have the effect of either magnifying or limiting the Fund's gains and losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Water Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of companies that are represented in one or more of the S&P Global Water Index, the NASDAQ OMX US Water or Global Water Indices or the S-Network Global Water Index (Composite), or that are substantially engaged in water-related activities.

#### Portfolio Turnover
The portfolio turnover rate of each Fund is calculated by dividing the lesser of purchases or sales of portfolio securities during the fiscal year by the monthly average of the value of the Fund's securities (excluding all securities, including options, with maturities at the time of acquisition of one year or less). All long-term securities, including long-term U.S. Government securities, are included. A high rate of portfolio turnover generally involves correspondingly greater brokerage commission expenses, which must be borne directly by the Fund. Turnover rates may vary greatly from year to year as well as within a particular year and also may be affected by cash requirements for redemptions of each Fund's shares by requirements that enable the Trust to receive certain favorable tax treatments. The portfolio turnover rate for each Fund that has completed a fiscal period of operations is set forth in its summary prospectus and under "Financial Highlights" in the statutory prospectus.

#### Additional Performance Information
Performance information is computed separately for each class of a Fund. Each Fund may from time to time include the total return of each class of its shares in advertisements or in information furnished to present or prospective shareholders. The Funds may from time to time include the yield and total return of each class of their shares in advertisements or information furnished to present or prospective shareholders. Each Fund may from time to time include in advertisements the total return of each class and the ranking of those performance figures relative to such figures for groups of mutual funds categorized by Lipper Inc. or another third party as having the same or similar investment objectives, policies and/or strategies. Information provided to any newspaper or similar listing of the Fund's net asset values and public offering prices will separately present each class of shares. The Funds also may compute current distribution rates and use this information in their Prospectus and Statement of Additional Information, in reports to current shareholders, or in certain types of sales literature provided to prospective investors.

Investment results of the Funds will fluctuate over time, and any representation of the Funds' total return or yield for any prior period should not be considered as a representation of what an investor's total return or yield may be in any future period. The Trust's Annual and Semiannual Reports contain additional performance information for the Funds and are available upon request, without charge, by calling the telephone numbers listed on the cover of this Statement of Additional Information.

#### Disclosure of Portfolio Holdings
The Trustees of the Trust have adopted a policy with respect to the protection of certain non-public information which governs disclosure of the Funds' portfolio holdings. This policy provides that the Funds' portfolio holdings information generally may not be disclosed to any party prior to the information becoming public.

Divulging Fund portfolio holdings to selected third parties is permissible only when the affected party has legitimate business purposes for doing so and the recipients are subject to a duty of confidentiality.

#### Public Disclosures
In accordance with rules established by the SEC, each Fund sends semiannual and annual reports to shareholders that contain a full listing of portfolio holdings as of the second and fourth fiscal quarters, respectively, within 60 days of quarter end. The Funds also disclose complete portfolio holdings as of the end of the first and third fiscal quarters on Form N-PORT, which is filed with the SEC within 60 days of quarter end. The Funds' shareholder reports are available on Virtus' Web site at virtus.com. The Funds also make publicly available on Virtus' Web site a full listing of portfolio holdings as of the end of each month with a 15-day delay. Portfolio holdings may be released sooner at the Administrator's discretion. Additionally, each Fund provides its top 10 holdings and summary composition data derived from portfolio holdings information on Virtus' Web site. This information is posted to the Web site at the end of each month with respect to the top 10 holdings, and at the end of each quarter with respect to summary composition information, generally within 10 business days. With respect to certain Funds, the top 10 holdings and summary composition

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information may be reported on a one-month lag. This information will be available on the Web site until full portfolio holdings information becomes publicly available as described above. The Funds also provide publicly-available portfolio holdings information directly to ratings agencies, the frequency and timing of which is determined under the terms of the contractual arrangements with such agencies, and may provide to financial intermediaries, upon request, monthly portfolio holdings for periods included in publicly-available quarterly portfolio holdings disclosures.

#### Other Disclosures
The Trust and/or the Administrator may authorize the disclosure of non-public portfolio holdings information under certain limited circumstances. The Funds' policy provides that non-public disclosures of a Fund's portfolio holdings may only be made if (i) the Fund has a legitimate business purpose for making such disclosure and (ii) the party receiving the non-public information is subject to a duty of confidentiality. Federal law also prohibits recipients of non-public portfolio holdings information from trading on such information. The Administrator will consider any actual or potential conflicts of interest between Virtus and the Funds' shareholders and will act in the best interest of the Funds' shareholders with respect to any such disclosure of portfolio holdings information. If a potential conflict can be resolved in a manner that does not present detrimental effects to the Funds' shareholders, the Administrator may authorize release of portfolio holdings information. Conversely, if the potential conflict cannot be resolved in a manner that does not present detrimental effects to the Funds' shareholders, the Administrator will not authorize such release.

#### Ongoing Arrangements to Disclose Portfolio Holdings
As previously authorized by the Funds' Board and/or the Funds' Administrator, the Funds will periodically disclose non-public portfolio holdings on a confidential basis to various service providers that require such information in order to assist the Funds in their day-to-day operations, as well as public information to certain ratings organizations. In addition to Virtus and its affiliates, the entities receiving non-public portfolio holdings as of the date of this SAI are described in the following table. The table also includes information as to the timing of these entities receiving the portfolio holdings information from the Funds.

#### Non-Public Portfolio Holdings Information

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| | | |
|:---|:---|:---|
| **Type of Service Provider** | **Name of Service Provider** | **Timing of Release of Portfolio Holdings Information** |
| Adviser  | VIA | Daily, with no delay |
| Subadviser (Water Fund) | Duff & Phelps | Daily, with no delay |
| Subadviser (Short Duration High Income Fund) | Newfleet | Daily, with no delay |
| Subadviser (Emerging Markets Value Fund and Global Sustainabilty Fund) | NFJ | Daily, with no delay |
| Subadviser (High Yield Fund) | Seix | Daily, with no delay |
| Subadviser (Convertible Fund) | Voya | Daily, with no delay |
| Administrator | VFS | Daily, with no delay |
| Distributor | VP Distributors | Daily, with no delay |
| Class Action Service Provider | Financial Recovery Technologies and Institutional Shareholder Services | Daily, with no delay |
| Custodian and Security Lending Agent | The Bank of New York Mellon | Daily, with no delay |
| Sub-administrative and Accounting Agent and Sub-transfer Agent | BNY Mellon | Daily, with no delay |
| Middle Office for Subadviser (NFJ Funds) | SS&C, Inc. | Daily, with no delay |
| Independent Registered Public Accounting Firm | PwC | Annually, within 15 business days of end of fiscal year. |
| Performance Analytic Firm | FactSet Research Systems, Inc. | Daily, with no delay |
| Liquidity Management Analytics System | MSCI Group | Daily, with no delay |
| Back-end Compliance Monitoring System | BNY Mellon | Daily, with no delay |

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| | | |
|:---|:---|:---|
| **Type of Service Provider** | **Name of Service Provider** | **Timing of Release of Portfolio Holdings Information** |
| Code of Ethics | StarCompliance, LLC | Daily, with no delay |
| Printing Firm for Financial Reports | DFIN | Semiannually, within 60 days of end of reporting period. |
| Proxy Voting Service | Institutional Shareholder Services | Daily, weekly, monthly, quarterly depending on subadviser |
| Trading system, compliance monitoring, and trade execution analysis | Bloomberg | Daily |
| Analysis and reporting services | IDS GmbH | Daily |
| Execution evaluation | Virtu Financial, Inc. (formerly, Plexus ITG) | Daily |
| Valuation services | Markit | Varied |

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These service providers are required to keep all non-public information confidential and are prohibited from trading based on the information or otherwise using the information except as necessary in providing services to the Funds. There is no guarantee that the Funds' policies on use and dissemination of holdings information will protect the Funds from the potential misuse of holdings by individuals or firms in possession of such information.

#### Public Portfolio Holdings Information

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| | | |
|:---|:---|:---|
| **Type of Service Provider** | **Name of Service Provider** | **Timing of Release of Portfolio Holdings Information** |
| Portfolio Redistribution Firms | Bloomberg, FactSet Research Systems, Inc. and Thompson Reuters | Monthly with a 15 day delay. |
| Rating Agencies | Lipper Inc. and Morningstar | Monthly with a 15 day delay. |
| Virtus Public Web site | Virtus Investment Partners, Inc. | Monthly with a 15 day delay. |

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#### Other Virtus Mutual Funds
In addition to the Funds of the Trust, the funds commonly referred to as "Virtus Mutual Funds" also include The Merger Fund<sup>®</sup>, the series of the series of Virtus Alternative Solutions Trust, Virtus Asset Trust, the series of Virtus Equity Trust, the series of Virtus Event Opportunities Trust, the series of Virtus Investment Trust and the series of Virtus Opportunities Trust. Virtus Mutual Funds are generally offered in multiple classes. The following chart shows the share classes offered by each Virtus Mutual Fund as of the date of this SAI:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Trust** | **Fund** | **Class/Shares** | **Class/Shares** | **Class/Shares** | **Class/Shares** | **Class/Shares** | **Class/Shares** | **Class/Shares** |
| **Trust** | **Fund** | **A** | **C** | **I** | **R6** | **P** | **Institutional** | **Administrative** |
| The Merger Fund<sup><sup>®</sup></sup> | The Merger Fund<sup><sup>®</sup></sup> | X |  | X |  |  |  |  |
| Virtus Alternative Solutions Trust | Virtus Duff & Phelps Select MLP and Energy Fund | X | X | X |  |  |  |  |
| Virtus Alternative Solutions Trust | Virtus KAR Long/Short Equity Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Ceredex Large-Cap Value Equity Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Ceredex Mid-Cap Value Equity Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Ceredex Small-Cap Value Equity Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix Core Bond Fund | X |  | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix Corporate Bond Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix Floating Rate High Income Fund | X | X | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix High Grade Municipal Bond Fund | X |  | X |  |  |  |  |
| Virtus Asset Trust | Virtus Seix High Income Fund | X |  | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix High Yield Fund | X |  | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix Investment Grade Tax-Exempt Bond Fund | X |  | X |  |  |  |  |
| Virtus Asset Trust | Virtus Seix Total Return Bond Fund | X |  | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix U.S. Government Securities Ultra-Short Bond Fund | X |  | X | X |  |  |  |
| Virtus Asset Trust | Virtus Seix Ultra-Short Bond Fund | X |  | X |  |  |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| | Virtus SGA International Growth Fund | X | X |  |
| | Virtus Silvant Large-Cap Growth Stock Fund | X | X |  |
| | Virtus Zevenbergen Innovative Growth Stock Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Capital Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Equity Income Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Global Quality Dividend Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Mid-Cap Core Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Mid-Cap Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Cap Core Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Cap Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Cap Value Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Mid Cap Core Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Mid Cap Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus KAR Small-Mid Cap Value Fund | X | X |  |
| Virtus Equity Trust | Virtus SGA Emerging Markets Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus SGA Global Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus SGA New Leaders Growth Fund | X | X |  |
| Virtus Equity Trust | Virtus Tactical Allocation Fund | X | X |  |
| Virtus Event Opportunities Trust | Virtus Westchester Credit Event Fund | X | X |  |
| Virtus Event Opportunities Trust | Virtus Westchester Event-Driven Fund | X | X |  |
| Virtus Investment Trust | Virtus Emerging Markets Opportunities Fund | X |  | X |
| Virtus Investment Trust | Virtus Income & Growth Fund | X |  | X |
| Virtus Investment Trust | Virtus KAR Global Small-Cap Fund | X |  | X |
| Virtus Investment Trust | Virtus KAR Health Sciences Fund | X |  | X |
| Virtus Investment Trust | Virtus NFJ Dividend Value Fund | X |  | X |
| Virtus Investment Trust | Virtus NFJ International Value Fund | X |  | X |
| Virtus Investment Trust | Virtus NFJ Large-Cap Value Fund | X |  | X |
| Virtus Investment Trust | Virtus NFJ Mid-Cap Value Fund | X |  | X |
| Virtus Investment Trust | Virtus NFJ Small-Cap Value Fund | X |  | X |
| Virtus Investment Trust | Virtus Silvant Focused Growth Fund | X |  | X |
| Virtus Investment Trust | Virtus Silvant Mid-Cap Growth Fund | X |  | X |
| Virtus Investment Trust | Virtus Small-Cap Fund | X |  | X |
| Virtus Investment Trust | Virtus Zevenbergen Technology Fund | X |  | X |
| Virtus Opportunities Trust | Virtus Duff & Phelps Global Infrastructure Fund | X | X |  |
| Virtus Opportunities Trust | Virtus Duff & Phelps Global Real Estate Securities Fund | X | X |  |
| Virtus Opportunities Trust | Virtus Duff & Phelps International Real Estate Securities Fund | X | X |  |
| Virtus Opportunities Trust | Virtus Duff & Phelps Real Asset Fund | X | X |  |
| Virtus Opportunities Trust | Virtus Duff & Phelps Real Estate Securities Fund | X | X |  |
|  | Virtus FORT Trend Fund | X | X |  |
|  | Virtus KAR Developing Markets Fund | X | X |  |
|  | Virtus KAR Emerging Markets Small-Cap Fund | X | X |  |
|  | Virtus KAR International Small-Mid Cap Fund | X | X |  |
|  | Virtus Newfleet Core Plus Bond Fund | X | X |  |
|  | Virtus Newfleet High Yield Fund | X | X |  |
|  | Virtus Newfleet Low Duration Core Plus Bond Fund | X | X |  |
|  | Virtus Newfleet Multi-Sector Intermediate Bond Fund | X | X |  |
|  | Virtus Newfleet Multi-Sector Short Term Bond Fund<sup>(1)</sup> | X | X |  |
|  | Virtus Newfleet Senior Floating Rate Fund | X | X |  |
|  | Virtus Seix Tax-Exempt Bond Fund | X | X |  |
|  | Virtus Stone Harbor Emerging Markets Corporate Debt Fund<sup>(2)</sup> | X | X |  |
|  | Virtus Stone Harbor Emerging Markets Debt Allocation Fund | X | X |  |
|  | Virtus Stone Harbor Emerging Markets Debt Fund<sup>(2)</sup> | X | X |  |
|  | Virtus Stone Harbor High Yield Bond Fund | X | X |  |
|  | Virtus Stone Harbor Local Markets Fund | X | X |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| Virtus Stone Harbor Strategic Income Fund | X |  | X |  |
| Virtus Vontobel Emerging Markets Opportunities Fund | X | X | X | X |
| Virtus Vontobel Foreign Opportunities Fund | X | X | X | X |
| Virtus Vontobel Global Opportunities Fund | X | X | X | X |
| Virtus Vontobel Greater European Opportunities Fund | X | X | X |  |

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<sup>(1)</sup> Virtus Newfleet Multi-Sector Short Term Bond Fund also offers Class C1 Shares.

<sup>(2)</sup> Effective January 30, 2023, the name of the Virtus Stone Harbor Emerging Markets Debt Fund will be changed to Virtus Stone Harbor Emerging Markets Debt Income Fund and the name of the Virtus Stone Harbor Emerging Markets Corporate Debt Fund will be changed to Virtus Stone Harbor Emerging Markets Bond Fund.

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#### MORE INFORMATION ABOUT FUND INVESTMENT STRATEGIES & RELATED RISKS
The following investment strategies and policies supplement each Fund's investment strategies and policies set forth in the Funds' prospectuses. Some of the investment strategies and policies described below and in each Fund's prospectus set forth percentage limitations on a Fund's investment in, or holdings of, certain types of investments. Unless otherwise required by law or stated in this SAI, compliance with these strategies and policies will be determined immediately after the acquisition of such investments by the Fund. Subsequent changes in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the Fund's investment strategies and policies.

Throughout this section, the term "adviser" may be used to refer to a subadviser, if any, and the term the "Fund" may be used to refer to any Fund.

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| | | |
|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| **Commodities-Related Investing** | Commodity-related companies may underperform the stock market as a whole. The value of securities issued by commodity-related companies may be affected by factors affecting a particular industry or commodity. The operations and financial performance of commodity- related companies may be directly affected by commodity prices, especially those commodity-related companies that own the underlying commodity. The stock prices of such companies may also experience greater price volatility than other types of common stocks. Securities issued by commodity-related companies are sensitive to changes in the supply and demand for, and thus the prices of, commodities. Volatility of commodity prices, which may lead to a reduction in production or supply, may also negatively impact the performance of commodity and natural resources companies that are solely involved in the transportation, processing, storing, distribution or marketing of commodities. Volatility of commodity prices may also make it more difficult for commodity-related companies to raise capital to the extent the market perceives that their performance may be directly or indirectly tied to commodity prices.<br>Certain types of commodities instruments (such as commodity-linked notes) are subject to the risk that the counterparty to the instrument will not perform or will be unable to perform in accordance with the terms of the instrument.<br>Exposure to commodities and commodities markets may subject the Fund to greater volatility than investments in traditional securities. No active trading market may exist for certain commodities investments, which may impair the ability of the Fund to sell or to realize the full value of such investments in the event of the need to liquidate such investments. In addition, adverse market conditions may impair the liquidity of actively traded commodities investments. Commodities may include, among other things, oil, gas, coal, alternative energy, steel, timber, agricultural products, minerals, precious metals (e.g., gold, silver, platinum, and palladium) and other resources. In addition, the Funds may invest in companies principally engaged in the commodities industries (such as mining, dealing or transportation companies) with significant exposure to commodities markets or investments in commodities, and through these investments may be exposed to the risks of investing in commodities.<br>In order to qualify for the special U.S. federal income tax treatment accorded regulated investment companies and their shareholders described in "Dividends, Distributions and Taxes" below, a Fund must, among other things, derive at least 90% of its income from certain specified sources (such income, "qualifying income"). Income from certain commodity-linked investments does not constitute qualifying income to a Fund. The tax treatment of certain other commodity-linked investments is not certain, in particular with respect to whether income and gains from such investments constitute qualifying income. If such income were determined not to constitute qualifying income and were to cause a Fund's non-qualifying income to exceed 10% of the Fund's gross income for any year, the Fund would fail the 90% gross income test and fail to qualify as a regulated investment company unless it were eligible to and did pay a tax at the fund level. A Fund's intention to so qualify can therefore limit the manner in or extent to which the fund seeks exposure to commodities. |  |
| ***Collateralized Debt Obligations*** | Collateralized Debt Obligations ("CDOs") are securitized interests in pools of assets. Assets called collateral usually comprise loans or debt instruments.<br>A CDO may be called a collateralized loan obligation ("CLO") or collateralized bond obligation  |  |

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| | | |
|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | ("CBO") if it holds only loans or bonds, respectively. Investors bear the credit risk of the collateral.<br>Multiple tranches of securities are issued by the CDO, offering investors various maturity and credit risk characteristics. Tranches are categorized as senior, mezzanine, and subordinated/equity, according to their degree of credit risk.<br>Senior and mezzanine tranches are typically rated, with the former receiving ratings of A to AAA/Aaa and the latter receiving ratings of B to BBB/Baa. The ratings reflect both the credit quality of underlying collateral as well as how much protection a given tranche is afforded by tranches that are subordinate to it. |  |
| ***Convertible Securities*** | A convertible security is a bond, debenture, note, or other security that entitles the holder to acquire common stock or other equity securities of the same or a different issuer within a particular period of time at a specific price or formula. It generally entitles the holder to receive interest paid or accrued until the security matures or is redeemed, converted, or exchanged. Convertible securities may have several unique investment characteristics such as (1) higher yields than common stocks, but lower yields than comparable nonconvertible securities, (2) a lesser degree of fluctuation in value than the underlying stock since they have fixed income characteristics and (3) the potential for capital appreciation if the market price of the underlying common stock increases.<br>Before conversion, convertible securities have characteristics similar to nonconvertible debt securities. Convertible securities often rank senior to common stock in a corporation's capital structure and, therefore, are often viewed as entailing less risk than the corporation's common stock, although the extent to which this is true depends in large measure on the degree to which the convertible security sells above its value as a fixed income security. However, because convertible securities are often viewed by the issuer as future common stock, they are often subordinated to other senior securities and therefore are rated one category lower than the issuer's nonconvertible debt obligations or preferred stock.<br>A convertible security may be subject to redemption or conversion at the option of the issuer at a predetermined price. If a convertible security held by a Fund is called for redemption, the Fund could be required to permit the issuer to redeem the security and convert it to the underlying common stock. A Fund generally would invest in convertible securities for their favorable price characteristics and total return potential, and would normally not exercise an option to convert. Each Fund might be more willing to convert such securities to common stock.<br>In the event of a liquidation of the issuing company, holders of convertible securities would generally be paid before the company's common stockholders but after holders of any senior debt obligations of the company.<br>A Fund's subadviser will select only those convertible securities for which it believes (a) the underlying common stock is an appropriate investment for a Fund and (b) a greater potential for total return exists by purchasing the convertible security because of its higher yield and/or favorable market valuation. However, a Fund may invest in convertible debt securities rated less than investment grade. <br>Debt securities rated less than investment grade are commonly referred to as "junk bonds." (For information about debt securities rated less than investment grade, see "High-Yield Fixed Income Securities (Junk Bonds)" under "Debt Investing" in this section of the SAI; for additional information about ratings on debt obligations, see Appendix A to this SAI.)<br>The Funds may also invest in synthetic convertible securities, which involve the combination of separate securities that possess the two principal characteristics of a traditional convertible security (i.e., an income- producing component and a right to acquire an equity security). Synthetic convertible securities are often achieved, in part, through investments in warrants or options to buy common stock (or options on a stock index), and therefore are subject to the risks associated with derivatives. |  |
| ***Contingent Capital***  | Contingent capital securities (sometimes referred to as "CoCos") are debt or preferred  |  |

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| | | |
|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| ***Securities*** | securities with loss absorption characteristics built into the terms of the security, for example a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer's capital ratio falling below a certain level.<br>Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening a Fund's standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security under such circumstances. In addition, most CoCos are considered to be high yield or "junk" securities and are therefore subject to the risks of investing in below investment grade securities.<br>As CoCos may be perpetual or have long-dated maturities, they may face greater interest rate sensitivity and may be subject to greater fluctuations in value than securities with shorter maturity dates. Such securities also may be subject to prepayment risk due to optional or mandatory redemption provisions. |  |
| ***Corporate Debt Securities*** | Each Fund may invest in debt securities issued by corporations, limited partnerships and other similar entities. A Fund's investments in debt securities of domestic or foreign corporate issuers include bonds, debentures, notes and other similar corporate debt instruments, including convertible securities that meet the Fund's minimum ratings criteria or if unrated are, in the Fund's subadviser's opinion, comparable in quality to corporate debt securities that meet those criteria. The rate of return or return of principal on some debt obligations may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies or to the value of commodities, such as gold. |  |
| ***"Covenant-Lite" Obligations*** | The Funds may invest in, or obtain exposure to, obligations that may be "covenant-lite," which means such obligations lack, or possess fewer, financial covenants that protect lenders than other obligations. Covenant-lite agreements may feature incurrence covenants, as opposed to the more restrictive maintenance covenants.<br>Under a maintenance covenant, the borrower would need to meet regular, specific financial tests, while under an incurrence covenant, the borrower only would be required to comply with the financial tests at the time it takes certain actions (e.g., issuing additional debt, paying a dividend or making an acquisition). A covenant-lite obligation contains fewer maintenance covenants than other obligations, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. |  |
| **Debt Investing** | Each Fund may invest in debt, or fixed income, instruments. Debt, or fixed income, instruments (which include corporate bonds, commercial paper, debentures, notes, government securities, municipal obligations, state- or state agency-issued obligations, obligations of foreign issuers, asset- or mortgage-backed securities, and other obligations) are used by issuers to borrow money and thus are debt obligations of the issuer. Holders of debt instruments are creditors of the issuer, normally ranking ahead of holders of both common and preferred stock as to dividends or upon liquidation. The issuer usually pays a fixed, variable, or floating rate of interest and must repay the amount borrowed at the instrument's maturity. Some debt instruments, such as zero-coupon bonds (discussed below), do not pay interest but may be sold at a deep discount from their face value.<br>Yields on debt instruments depend on a variety of factors, including the general conditions of the money, bond, and note markets, the size of a particular offering, the maturity date of the obligation, and the rating of the issue. Debt instruments with longer maturities tend to produce higher yields and are generally subject to greater price fluctuations in response to changes in market conditions than obligations with shorter maturities. An increase in interest rates generally will reduce the market value of portfolio debt instruments, while a decline in interest rates generally will increase the value of the same instruments. It is difficult to predict the pace at which central banks or monetary authorities may increase interest rates or the timing, frequency, or magnitude of such increases. Any such changes could be sudden and could expose debt markets to significant volatility and reduced liquidity for investments. The achievement of a Fund's investment objective depends in part on the  |  |

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| | | |
|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | continuing ability of the issuers of the debt instruments in which the Fund invests to meet their obligations for the payment of principal and interest when due. Obligations of issuers of debt instruments are subject to the provisions of bankruptcy, insolvency, sovereign immunity, and other laws that affect the rights and remedies of creditors. There is also the possibility that, as a result of litigation or other conditions, the ability of an issuer to pay, when due, the principal of and interest on its debt instruments may be materially affected. |  |
| ***Dollar-denominated Foreign Debt Securities ("Yankee Bonds")*** | Each Fund may invest in "Yankee bonds", which are dollar- denominated instruments issued in the U.S. market by foreign branches of U.S. banks and U.S. branches of foreign banks. Since these instruments are dollar-denominated, they are not affected by variations in currency exchange rates. They are influenced primarily by interest rate levels in the United States and by the financial condition of the issuer, or of the issuer's foreign parent. However, investing in these instruments may present a greater degree of risk than investing in domestic securities, due to less publicly available information, less securities regulation, war or expropriation. Special considerations may include higher brokerage costs and thinner trading markets. Investments in foreign countries could be affected by other factors including extended settlement periods. (See "Foreign Investing" in this section of the SAI for additional information about investing in foreign countries.) |  |
| ***Duration*** | Duration is a time measure of a bond's interest-rate sensitivity, based on the weighted average of the time periods over which a bond's cash flows accrue to the bondholder. Time periods are weighted by multiplying by the present value of its cash flow divided by the bond's price. (A bond's cash flows consist of coupon payments and repayment of capital.) A bond's duration will almost always be shorter than its maturity, with the exception of zero-coupon bonds, for which maturity and duration are equal. |  |
| ***Equity-Linked Securities*** | Each Fund may invest in equity-linked securities, including, among others, PERCS, ELKS or LYONs (as defined below), which are securities that are convertible into, or the value of which is based upon the value of, equity securities upon certain terms and conditions.<br>The amount received by an investor at maturity of such securities is not fixed but is based on the price of the underlying common stock. It is impossible to predict whether the price of the underlying common stock will rise or fall.<br>Trading prices of the underlying common stock will be influenced by the issuer's operational results, by complex, interrelated political, economic, financial or other factors affecting the capital markets, the stock exchanges on which the underlying common stock is traded and the market segment of which the issuer is a part. In addition, it is not possible to predict how equity-linked securities will trade in the secondary market. The market for such securities may be shallow, and high volume trades may be possible only with discounting.<br>In addition to the foregoing risks, the return on such securities depends on the creditworthiness of the issuer of the securities, which may be the issuer of the underlying securities or a third-party investment banker or other lender. The creditworthiness of such third- party issuer equity-linked securities may, and often does, exceed the creditworthiness of the issuer of the underlying securities.<br>The advantage of using equity-linked securities over traditional equity and debt securities is that the former are income producing vehicles that may provide a higher income than the dividend income on the underlying equity securities while allowing some participation in the capital appreciation of the underlying equity securities.<br>Another advantage of using equity-linked securities is that they may be used for hedging to reduce the risk of investing in the generally more volatile underlying equity securities. |  |
| *Preferred Equity Redemption Cumulative Stock (PERCS)* | PERCS technically is preferred stock with some characteristics of common stock.<br>PERCS are mandatorily convertible into common stock after a period of time, usually three years, during which the investors' capital gains are capped, usually at 30%.<br>Commonly, PERCS may be redeemed by the issuer at any time or if the issuer's common stock is trading at a specified price level or better. The redemption price starts at the beginning of  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | the PERCS duration period at a price that is above the cap by the amount of the extra dividends the PERCS holder is entitled to receive relative to the common stock over the duration of the PERCS and declines to the cap price shortly before maturity of the PERCS.<br>In exchange for having the cap on capital gains and giving the issuer the option to redeem the PERCS at any time or at the specified common stock price level, the Fund may be compensated with a substantially higher dividend yield than that on the underlying common stock. |  |
| *Equity-Linked Securities (ELKS)* | ELKS differ from ordinary debt securities, in that the principal amount received at maturity is not fixed but is based on the price of the issuer's common stock.<br>ELKS are debt securities commonly issued in fully registered form for a term of three years under an indenture trust. At maturity, the holder of ELKS will be entitled to receive a principal amount equal to the lesser of a cap amount, commonly in the range of 30% to 55% greater than the current price of the issuer's common stock, or the average closing price per share of the issuer's common stock, subject to adjustment as a result of certain dilution events, for the 10 trading days immediately prior to maturity.<br>Unlike PERCS, ELKS are commonly not subject to redemption prior to maturity. ELKS usually bear interest six times during the three-year term at a substantially higher rate than the dividend yield on the underlying common stock. In exchange for having the cap on the return that might have been received as capital gains on the underlying common stock, the Fund may be compensated with the higher yield, contingent on how well the underlying common stock does. |  |
| *Liquid Yield Option Notes (LYONs))* | LYONs differ from ordinary debt securities, in that the amount received prior to maturity is not fixed but is based on the price of the issuer's common stock.<br>LYONs are zero-coupon notes that sell at a large discount from face value. For an investment in LYONs, a Fund will not receive any interest payments until the notes mature, typically in 15 to 20 years, when the notes are redeemed at face, or par value.<br>The yield on LYONs, typically, is lower-than-market rate for debt securities of the same maturity, due in part to the fact that the LYONs are convertible into common stock of the issuer at any time at the option of the holder of the LYONs.<br>Commonly, the LYONs are redeemable by the issuer at any time after an initial period or if the issuer's common stock is trading at a specified price level or better, or, at the option of the holder, upon certain fixed dates.<br>The redemption price typically is the purchase price of the LYONs plus accrued original issue discount to the date of redemption, which amounts to the lower-than-market yield.<br>A Fund will receive only the lower-than-market yield unless the underlying common stock increases in value at a substantial rate. LYONs are attractive to investors, like a Fund, when it appears that they will increase in value due to the rise in value of the underlying common stock. |  |
| ***Exchange-Traded Notes ("ETNs")*** | Generally, ETNs are senior, unsecured, unsubordinated debt securities whose returns are linked to the performance of a particular market benchmark or strategy minus applicable fees. ETNs are traded on an exchange during normal trading hours. However, investors can also hold the ETN until maturity. At maturity, the issuer pays to the investor a cash amount equal to the principal amount, subject to the day's market benchmark or strategy factor.<br>ETNs do not make periodic coupon payments or provide principal protection. ETNs are subject to credit risk, and the value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying market benchmark or strategy remaining unchanged. The value of an ETN may also be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying assets, changes in the applicable interest rates, changes in the issuer's credit rating, and economic, legal, political, or geographic events that affect the referenced underlying asset. When a Fund invests in ETNs it will bear its proportionate share of any fees and expenses borne by the ETN. A Fund's  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | decision to sell its ETN holdings may be limited by the availability of a secondary market. In addition, although an ETN may be listed on an exchange, the issuer may not be required to maintain the listing, and there can be no assurance that a secondary market will exist for an ETN.<br>ETNs are also subject to tax risk. No assurance can be given that the IRS will accept, or a court will uphold, how a Fund characterizes and treats ETNs for tax purposes. Further, the IRS and Congress are considering proposals that would change the timing and character of income and gains from ETNs.<br>An ETN that is tied to a specific market benchmark or strategy may not be able to replicate and maintain exactly the composition and relative weighting of securities, commodities or other components in the applicable market benchmark or strategy. Some ETNs that use leverage can, at times, be relatively illiquid and, thus, they may be difficult to purchase or sell at a fair price. Leveraged ETNs are subject to the same risks as other instruments that use leverage in any form.<br>The market value of ETNs may differ from that of their market benchmark or strategy. This difference in price may be due to the fact that the supply and demand in the market for ETNs at any point in time is not always identical to the supply and demand in the market for the securities, commodities or other components underlying the market benchmark or strategy that the ETN seeks to track. As a result, there may be times when an ETN trades at a premium or discount to its market benchmark or strategy. |  |
| ***High-Yield Fixed Income Securities ("Junk Bonds")*** | Investments in securities rated "BB" or below by S&P or Fitch, or "Ba" or below by Moody's generally provide greater income (leading to the name "high-yield" securities) and opportunity for capital appreciation than investments in higher quality securities, but they also typically entail greater price volatility, liquidity, and principal and income risk. These securities are regarded as predominantly speculative as to the issuer's continuing ability to meet principal and interest payment obligations. Analysis of the creditworthiness of issuers of lower-quality debt securities may be more complex than for issuers of higher-quality debt securities.<br>Interest-bearing securities typically experience appreciation when interest rates decline and depreciation when interest rates rise. The market values of low-rated securities tend to reflect individual corporate developments to a greater extent than do higher-rated securities, which react primarily to fluctuations in the general level of interest rates. Low-rated securities also tend to be more sensitive to economic conditions than higher-rated securities. As a result, they generally involve more credit risks than securities in the higher-rated categories. During an economic downturn or a sustained period of rising interest rates, highly leveraged issuers of low-rated securities may experience financial stress and may not have sufficient revenues to meet their payment obligations. The issuer's ability to service its debt obligations may also be adversely affected by specific corporate developments, the issuer's inability to meet specific projected business forecasts or the unavailability of additional financing. The risk of loss due to default by an issuer of low-rated securities is generally considered to be significantly greater than issuers of higher- rated securities because such securities are usually unsecured and are often subordinated to other creditors. Further, if the issuer of a low- rated security defaulted, the applicable Fund might incur additional expenses in seeking recovery. Periods of economic uncertainty and changes would also generally result in increased volatility in the market prices of low-rated securities and thus in the applicable Fund's NAV.<br>Low-rated securities often contain redemption, call or prepayment provisions which permit the issuer of the securities containing such provisions to, at its discretion, redeem the securities. During periods of falling interest rates, issuers of low-rated securities are likely to redeem or prepay the securities and refinance them with debt securities with a lower interest rate. To the extent an issuer is able to refinance the securities or otherwise redeem them, the applicable Fund may have to replace the securities with a lower yielding security which would result in lower returns for the Fund. |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | A Fund may have difficulty disposing of certain low-rated securities because there may be a thin trading market for such securities. Because not all dealers maintain markets in all low-rated securities, there is no established retail secondary market for many of these securities. The Funds anticipate that such securities could be sold only to a limited number of dealers or institutional investors. To the extent a secondary trading market does exist, it is generally not as liquid as the secondary market for higher-rated securities. The lack of a liquid secondary market may have an adverse impact on the market price of the security, and accordingly, the NAV of a particular Fund and its ability to dispose of particular securities when necessary to meet its liquidity needs, or in response to a specific economic event, or an event such as a deterioration in the creditworthiness of the issuer. The lack of a liquid secondary market for certain securities may also make it more difficult for the Fund to obtain accurate market quotations for purposes of valuing its respective portfolio. Market quotations are generally available on many low-rated issues only from a limited number of dealers and may not necessarily represent firm bids of such dealers or prices for actual sales. During periods of thin trading, the spread between bid and asked prices is likely to increase significantly. In addition, adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of low-rated securities, especially in a thinly-traded market. If a Fund experiences unexpected net redemptions, it may be forced to liquidate a portion of its portfolio securities without regard to their investment merits. Due to the limited liquidity of low-rated securities, the Fund may be forced to liquidate these securities at a substantial discount. Any such liquidation would reduce the Fund's asset base over which expenses could be allocated and could result in a reduced rate of return for the Fund. |  |
| ***Interest Rate Environment Risk*** | Changing interest rates, may have unpredictable effects on markets, may result in heightened market volatility and may detract from a Fund's performance to the extent the Fund is exposed to such interest rates. A low interest rate environment may have an adverse impact on each Fund's ability to provide a positive yield to its shareholders and pay expenses out of Fund assets because of the low yields from the Fund's portfolio investments. Alternatively, a general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from a Fund that holds large amounts of fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Fund's performance.<br>Further, Federal Reserve policy changes may expose fixed-income and related markets to heightened volatility and may reduce liquidity for certain Fund investments, which could cause the value of a Fund's investments and a Fund's share price to decline or create difficulties for the Fund in disposing of investments. A Fund that invests in derivatives tied to fixed-income markets may be more substantially exposed to these risks than a Fund that does not invest in derivatives.<br>A Fund could also be forced to liquidate its investments at disadvantageous times or prices, thereby adversely affecting the Fund. To the extent a Fund experiences high redemptions because of these policy changes, the Fund may experience increased portfolio turnover, which will increase the costs that the Fund incurs and lower the Fund's performance. |  |
| ***Inverse Floating Rate Obligations*** | Certain variable rate securities pay interest at a rate that varies inversely to prevailing short-term interest rates (sometimes referred to as inverse floaters). For example, upon reset the interest rate payable on a security may go down when the underlying index has risen. During periods when short-term interest rates are relatively low as compared to long-term interest rates, a Fund may attempt to enhance its yield by purchasing inverse floaters. Certain inverse floaters may have an interest rate reset mechanism that multiplies the effects of changes in the underlying index. While this form of leverage may increase the security's yield, it may also increase the volatility of the security's market value.<br>Similar to other variable and floating rate obligations, effective use of inverse floaters requires skills different from those needed to select most portfolio securities. If movements in  | No Fund will invest more than 5% of its assets in inverse floaters. |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | interest rates are incorrectly anticipated, a Fund holding these instruments could lose money and its NAV could decline. |  |
| ***Letters of Credit*** | Debt obligations, including municipal obligations, certificates of participation, commercial paper and other short-term obligations, may be backed by an irrevocable letter of credit of a bank that assumes the obligation for payment of principal and interest in the event of default by the issuer. Only banks that, in the opinion of the relevant Fund's subadviser, are of investment quality comparable to other permitted investments of the Fund may be used for Letter of Credit-backed investments. |  |
| ***Loan and Debt Participations and Assignments*** | A loan participation agreement involves the purchase of a share of a loan made by a bank to a company in return for a corresponding share of the borrower's principal and interest payments. Loan participations of the type in which a Fund may invest include interests in both secured and unsecured corporate loans. When a Fund purchases loan assignments from lenders, it will acquire direct rights against the borrower, but these rights and the Fund's obligations may differ from, and be more limited than, those held by the assignment lender. The principal credit risk associated with acquiring loan participation and assignment interests is the credit risk associated with the underlying corporate borrower. There is also a risk that there may not be a readily available market for participation loan interests and, in some cases, this could result in the Fund disposing of such securities at a substantial discount from face value or holding such securities until maturity.<br>There is typically a limited amount of public information available about loans because loans normally are not registered with the SEC or any state securities commission or listed on any securities exchange. Certain of the loans in which a fund may invest may not be considered "securities," and therefore the fund may not be entitled to rely on the anti-fraud protections of the federal securities laws with respect to those loans in the event of fraud or misrepresentation by a borrower. A fund may come into possession of material, non-public information about a borrower as a result of the fund's ownership of a loan or other floating- rate instrument of the borrower. Because of prohibitions on trading in securities of issuers while in possession of material, non-public information, the fund might be unable to enter into a transaction in a publicly-traded security of the borrower when it would otherwise be advantageous to do so.<br>Loans trade in an unregulated inter-dealer or inter-bank secondary market. Purchases and sales of loans are generally subject to contractual restrictions that must be satisfied before a loan can be bought or sold. These restrictions may (i) impede the fund's ability to buy or sell loans; (ii) negatively affect the transaction price; (iii) affect the counterparty credit risk borne by the fund; (iv) impede the fund's ability to timely vote or otherwise act with respect to loans; and (v) expose the fund to adverse tax or regulatory consequences.<br>In the event that a corporate borrower failed to pay its scheduled interest or principal payments on participations held by a Fund, the market value of the affected participation would decline, resulting in a loss of value of such investment to the Fund. Accordingly, such participations are speculative and may result in the income level and net assets of the Fund being reduced. Moreover, loan participation agreements generally limit the right of a participant to resell its interest in the loan to a third party and, as a result, loan participations may be deemed by the Fund to be illiquid investments. A Fund will invest only in participations with respect to borrowers whose creditworthiness is, or is determined by the Fund's subadviser to be, substantially equivalent to that of issuers whose senior unsubordinated debt securities are rated B or higher by Moody's or S&P. For the purposes of diversification and/or concentration calculations, both the borrower and issuer will be considered an "issuer."<br>The Funds may purchase from banks participation interests in all or part of specific holdings of debt obligations. Each participation interest is backed by an irrevocable letter of credit or guarantee of the selling bank that the relevant Fund's subadviser has determined meets the prescribed quality standards of the Fund. Thus, even if the credit of the issuer of the debt obligation does not meet the quality standards of the Fund, the credit of the selling bank will. |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | Loan participations and assignments may be illiquid and therefore subject to the Funds' limitations on investments in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.)<br>Large loans to corporations or governments may be shared or syndicated among several lenders, usually banks. A Fund may participate in such syndicates, or can buy part of a loan, becoming a direct lender. Participations and assignments involve special types of risk, including liquidity risk and the risks of being a lender. If a Fund purchases a participation, it may only be able to enforce its rights through the lender, and may assume the credit risk of the lender in addition to the borrower. With respect to assignments, a Funds' rights against the borrower may be more limited than those held by the original lender.<br>Certain funds invest significantly in floating rate loans that have interest rate provisions linked to LIBOR. LIBOR is used extensively in the U.S. and globally as a "benchmark." The United Kingdom's Financial Conduct Authority announced a desire to phase out the use of LIBOR by the end of 2021. The administrator of LIBOR ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. <br>Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. Various financial industry groups have been planning for the transition away from LIBOR, but there remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund's transactions and the financial markets generally. The transition away from LIBOR may lead to increased volatility and illiquidity in markets that currently rely on LIBOR and may adversely affect the Fund's performance. The transition may also result in a reduction in the value of certain LIBOR-based investments held by the Funds or reduce the effectiveness of related transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses for the Fund. Since the usefulness of LIBOR as a benchmark could also deteriorate during the transition period, effects could occur at any time.<br>Many loans have interest rate provisions referencing LIBOR that, when drafted, did not contemplate the permanent discontinuation of LIBOR and, as a result, there may be uncertainty or disagreement over how the loans should be interpreted. For example, loans without fallback language, or with fallback language that does not contemplate the discontinuation of LIBOR, could become less liquid and/or change in value as the date approaches when LIBOR will no longer be updated. Further, the interest rate provisions of these loans may need to be renegotiated. Finally, there may be other risks related to the discontinuation of LIBOR, such as loan price volatility risk and technology or systems risk.<br>Currently, the U.S. and other countries are working to replace LIBOR with alternative reference rates. The transition effort in the U.S. is being led by the Alternative Reference Rate Committee ("ARRC"), a diverse group of market participants convened by the Federal Reserve. After much deliberation, ARRC selected the Secured Overnight Financing Rate ("SOFR") as the preferred LIBOR successor for U.S. dollar markets. SOFR is a volume-weighted median of borrowing rates from the Treasury repurchase agreement market. National working groups in other jurisdictions have similarly identified overnight nearly risk-free rates like SOFR as their preferred alternatives to LIBOR. The alternative reference rates may be more volatile than LIBOR and may perform erratically until widely accepted within the marketplace. The risks associated with this discontinuation and transition will persist if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner.<br>The shift to SOFR from LIBOR also brings pricing challenges for borrowers and loan issuers, who prefer exposure to credit benchmarks that will adjust to shifts in credit market conditions. SOFR is based on the U.S. repurchase agreement market, which has no credit risk and may fall during times of stress. LIBOR, by contrast, measures bank borrowing costs and  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | rises during periods of stress. Lenders are adapting by pricing loans with a spread to SOFR. However, there are risks that this spread could underprice risks if there are unexpected periods of credit stress. |  |
| *Senior Loans* | A senior floating rate loan ("Senior Loan") is typically originated, negotiated and structured by a U.S. or foreign commercial bank, insurance company, finance company or other financial institution (the "Agent") for a group of loan investors ("Loan Investors"). The Agent typically administers and enforces the Senior Loan on behalf of the other Loan Investors in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Loan Investors.<br>Senior Loans primarily include senior floating rate loans and secondarily senior fixed rate loans, and interests therein. Loan interests primarily take the form of assignments purchased in the primary or secondary market. Loan interests may also take the form of participation interests in a Senior Loan. Such loan interests may be acquired from U.S. or foreign commercial banks, insurance companies, finance companies or other financial institutions who have made loans or are Loan Investors or from other investors in loan interests.<br>The Fund typically purchases "assignments" from the Agent or other Loan Investors. The purchaser of an assignment typically succeeds to all the rights and obligations under the Loan Agreement of the assigning Loan Investor and becomes a Loan Investor under the Loan Agreement with the same rights and obligations as the assigning Loan Investor.<br>Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning Loan Investor.<br>Each Fund is permitted to invest a portion of its total assets in "participations." Loan participations are interests in loans to corporations, which loans are administered by the lending bank or agent for a syndicate of lending banks. In a Loan participation, the borrower corporation is the underlying issuer of the loan, but the Fund derives its rights in the loan participation from the intermediary bank. Because the intermediary bank does not guarantee a Loan participation, it is subject to the credit risks associated with the underlying corporate borrower.<br>Participations by the Fund in a Loan Investor's portion of a Senior Loan typically will result in the Fund having a contractual relationship only with such Loan Investor, not with the borrower. As a result, the Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the Loan Investor selling the participation and only upon receipt by such Loan Investor of such payments from the borrower.<br>In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the Loan Agreement, nor any rights with respect to any funds acquired by other Loan Investors through set-off against the borrower and the Fund may not directly benefit from the collateral supporting the Senior Loan in which it has purchased the participation.<br>As a result, the Fund may assume the credit risk of both the borrower and the Loan Investor selling the participation. In the event of the insolvency of the Loan Investor selling a participation, the Fund may be treated as a general creditor of such Loan Investor. The selling Loan Investors with respect to such participations will likely conduct their principal business activities in the banking, finance and financial services industries.<br>Persons engaged in such industries may be more susceptible to, among other things, fluctuations in interest rates, changes in the Federal Open Market Committee's monetary policy, governmental regulations concerning such industries and capital raising activities generally, and fluctuations in the financial markets generally.<br>In the event of bankruptcy or insolvency of the corporate borrower, a Loan participation may be subject to certain defenses that can be asserted by the borrower as a result of improper  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | conduct by the seller.<br>In addition, in the event the underlying corporate borrower fails to pay principal and interest when due, the Fund may be subject to delays, expenses, and risks that are greater than those that would have been involved if the Fund had purchased a direct obligation of the borrower.<br>Under the terms of a Loan participation, the Fund may be regarded as a creditor of the seller of the loan participation (rather than of the underlying corporate borrower), so that the Fund may also be subject to the risk that the seller of the loan participation may become insolvent.<br>The secondary market for loan participations is limited and any such participation purchased by the Fund may be regarded as illiquid.<br>A borrower must comply with various restrictive covenants contained in a loan agreement or note purchase agreement between the borrower and the holders of the Senior Loan (the "Loan Agreement"). The Fund will generally rely upon the Agent or an intermediate participant to receive and forward to the Fund its portion of the principal and interest payments on the Senior Loan. Furthermore, unless under the terms of a Participation Agreement the Fund has direct recourse against the borrower, the Fund will rely on the Agent and the other Loan Investors to use appropriate credit remedies against the borrower.<br>With respect to Senior Loans for which the Agent does not perform administrative and enforcement functions, the Fund will perform such tasks on its own behalf, although a collateral bank will typically hold any collateral on behalf of the Fund and the other Loan Investors pursuant to the applicable Loan Agreement.<br>A Fund may purchase and retain in its portfolio a Senior Loan where the borrower has experienced, or may be perceived to be likely to experience, credit problems, including involvement in or recent emergence from bankruptcy reorganization proceedings or other forms of debt restructuring.<br>Such investments may provide opportunities for enhanced income as well as capital appreciation. At times, in connection with the restructuring of a Senior Loan either outside of bankruptcy court or in the context of bankruptcy court proceedings, a Fund may determine or be required to accept equity securities or junior debt securities in exchange for all or a portion of a Senior Loan. As soon as reasonably practical, a Fund will divest itself of any equity securities or any junior debt securities received if it is determined that the security is an ineligible holding for a Fund. A Fund may acquire interests in Senior Loans which are designed to provide temporary or "bridge" financing to a borrower pending the sale of identified assets or the arrangement of longer-term loans or the issuance and sale of debt obligations. Bridge loans are often unrated.<br>A Fund may also invest in Senior Loans of borrowers that have obtained bridge loans from other parties. A borrower's use of bridge loans involves a risk that the borrower may be unable to locate permanent financing to replace the bridge loan, which may impair the borrower's perceived creditworthiness.<br>A Fund will be subject to the risk that collateral securing a loan will decline in value or have no value. Such a decline, whether as a result of bankruptcy proceedings or otherwise, could cause the Senior Loan to be under-collateralized or unsecured. In most credit agreements there is no formal requirement to pledge additional collateral.<br>In addition, a Fund may invest in Senior Loans guaranteed by, or secured by assets of, shareholders or owners, even if the Senior Loans are not otherwise collateralized by assets of the borrower; provided, however, that such guarantees are fully secured. If a borrower becomes involved in bankruptcy proceedings, a court may invalidate a Fund's security interest in the loan collateral or subordinate a Fund's rights under the Senior Loan to the interests of the borrower's unsecured creditors or cause interest previously paid to be refunded to the borrower.<br>If a court requires interest to be refunded, it could negatively affect a Fund's performance. Such action by a court could be based, for example, on a "fraudulent conveyance" claim to the effect that the borrower did not receive fair consideration for granting the security  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | interest in the loan collateral to a Fund or a "preference claim" that a pre-petition creditor received a greater recovery on an existing debt than it would have in a liquidation situation.<br>There are also other events, such as the failure to perfect a security interest due to faulty documentation or faulty official filings, which could lead to the invalidation of a Fund's security interest in loan collateral.<br>If a Fund's security interest in loan collateral is invalidated or the Senior Loan is subordinated to other debt of a borrower in bankruptcy or other proceedings, a Fund would have substantially lower recovery, and perhaps no recovery on the full amount of the principal and interest due on the Loan, or a Fund could also have to refund interest.<br>A Fund may acquire warrants and other equity securities as part of a unit combining a Senior Loan and equity securities of a borrower or its affiliates. The acquisition of such equity securities will only be incidental to a Fund's purchase of a Senior Loan.<br>A Fund may also acquire equity securities or debt securities (including non-dollar denominated debt securities) issued in exchange for a Senior Loan or issued in connection with the debt restructuring or reorganization of a borrower, or if such acquisition, in the judgment of the Subadviser, may enhance the value of a Senior Loan or would otherwise be consistent with a Fund's investment policies.<br>Economic and other market events may reduce the demand for certain senior loans held by the Fund, which may adversely impact the net asset value of the Fund. |  |
| ***Municipal Securities and Related Investments*** | Tax-exempt municipal securities are debt obligations issued by the various states and their subdivisions (e.g., cities, counties, towns, and school districts) to raise funds, generally for various public improvements requiring long-term capital investment. Purposes for which tax-exempt bonds are issued include flood control, airports, bridges and highways, housing, medical facilities, schools, mass transportation and power, water or sewage plants, as well as others. Tax-exempt bonds also are occasionally issued to retire outstanding obligations, to obtain funds for operating expenses or to loan to other public or, in some cases, private sector organizations or to individuals.<br>Yields on municipal securities are dependent on a variety of factors, including the general conditions of the money market and the municipal bond market, the size of a particular offering, the maturity of the obligations and the rating of the issue. Municipal securities with longer maturities tend to produce higher yields and are generally subject to potentially greater capital appreciation and depreciation than obligations with shorter maturities and lower yields. The market prices of municipal securities usually vary, depending upon available yields. An increase in interest rates will generally reduce the value of portfolio investments, and a decline in interest rates will generally increase the value of portfolio investments. The ability of a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of municipal securities in which the Fund invests to meet their obligations for the payment of interest and principal when due. The ratings of Moody's and S&P represent their opinions as to the quality of municipal securities which they undertake to rate. Ratings are not absolute standards of quality; consequently, municipal securities with the same maturity, coupon, and rating may have different yields. There are variations in municipal securities, both within a particular classification and between classifications, depending on numerous factors. It should also be pointed out that, unlike other types of investments, municipal securities have traditionally not been subject to regulation by, or registration with, the SEC, although there have been proposals which would provide for such regulation in the future.<br>The federal bankruptcy statutes relating to the debts of political subdivisions and authorities of states of the United States provide that, in certain circumstances, such subdivisions or authorities may be authorized to initiate bankruptcy proceedings without prior notice to or consent of creditors, which proceedings could result in material and adverse changes in the rights of holders of their obligations.<br>Lawsuits challenging the validity under state constitutions of present systems of financing public education have been initiated or adjusted in a number of states, and legislation has  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | been introduced to effect changes in public school financing in some states. In other instances there have been lawsuits challenging the issuance of pollution control revenue bonds or the validity of their issuance under state or federal law which could ultimately affect the validity of those municipal securities or the tax-free nature of the interest thereon.<br>Descriptions of some of the municipal securities and related investment types most commonly acquired by the Funds are provided below. In addition to those shown, other types of municipal investments are, or may become, available for investment by the Funds. For the purpose of each Fund's investment restrictions set forth in this SAI, the identification of the "issuer" of a municipal security which is not a general obligation bond is made by the applicable Fund's subadviser on the basis of the characteristics of the obligation, the most significant of which is the source of funds for the payment of principal and interest on such security. |  |
| *Municipal Bonds* | Municipal bonds, which meet longer-term capital needs and generally have maturities of more than one year when issued, have two principal classifications: general obligation bonds and revenue bonds. Another type of municipal bond is referred to as an industrial development bond.<br>The Funds may purchase insured municipal debt securities in which scheduled payments of interest and principal are guaranteed by a private, non-governmental or governmental insurance company. The insurance does not guarantee the market value of the municipal debt or the value of the shares of a Fund.<br>Pre-refunded municipal bonds are tax-exempt bonds that have been refunded to a call date on or before the final maturity of principal and remain outstanding in the municipal market. The payment of principal and interest of the pre-refunded municipal bonds held by a Fund is funded from securities in a designated escrow account that holds U.S. Treasury securities or other obligations of the U.S. Government, including its agencies and instrumentalities ("Agency Securities"). While still tax-exempt, pre-refunded municipal bonds usually will bear a Aaa rating (if a re-rating has been requested and paid for) because they are backed by the U.S. Treasury or Agency Securities. As the payment of principal and interest is generated from securities held in a designated escrow account, the pledge of the municipality has been fulfilled and the original pledge of revenue by the municipality is no longer in place. The escrow account securities pledged to pay the principal and interest of the pre-refunded municipal bonds held by a Fund may subject the Fund to interest rate risk and market risk. In addition, while a secondary market exists for pre-refunded municipal bonds, if a Fund sells pre-refunded municipal bonds prior to maturity, the price received may be more or less than the original cost, depending on market conditions at the time of sale. |  |
| <u>General Obligation Bonds</u> | Issuers of general obligation bonds include states, counties, cities, towns, and regional districts. The proceeds of these obligations are used to fund a wide range of public projects, including construction or improvement of schools, highways and roads, and water and sewer systems. The basic security behind general obligation bonds is the issuer's pledge of its full faith and credit and taxing power for the payment of principal and interest. The taxes that can be levied for the payment of debt service may be limited or unlimited as to the rate or amount of special assessments. |  |
| <u>Industrial Development Bonds</u> | Industrial development bonds, which are considered municipal bonds if the interest paid is exempt from Federal income tax, are issued by or on behalf of public authorities to raise money to finance various privately operated facilities for business and manufacturing, housing, sports arenas and pollution control. These bonds are also used to finance public facilities such as airports, mass transit systems, ports and parking. The payment of the principal and interest on such bonds is dependent solely on the ability of the facility's user to meet its financial obligations and the pledge, if any, of real and personal property so financed as security for such payment. |  |
| <u>Revenue Bonds</u> | The principal security for a revenue bond is generally the net revenues derived from a particular facility, group of facilities, or, in some cases, the proceeds of a special excise or  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | other specific revenue source. Revenue bonds are issued to finance a wide variety of capital projects including: electric, gas, water and sewer systems; highways, bridges, and tunnels; port and airport facilities; colleges and universities; and hospitals. Although the principal security behind these bonds may vary, many provide additional security in the form of a debt service reserve fund whose money may be used to make principal and interest payments on the issuer's obligations. Housing finance authorities have a wide range of security; including partially or fully insured mortgages, rent subsidized and/or collateralized mortgages, and/or the net revenues from housing or other public projects. Some authorities provide further security in the form of a state's ability (without obligation) to make up deficiencies in the debt service reserve fund. |  |
| *Municipal Leases* | Each Fund may acquire participations in lease obligations or installment purchase contract obligations (hereinafter collectively called "lease obligations") of municipal authorities or entities. Although lease obligations do not constitute general obligations of the municipality for which the municipality's taxing power is pledged, a lease obligation may be backed by the municipality's covenant to budget for, appropriate, and make the payments due under the lease obligation. However, certain lease obligations contain "non- appropriation" clauses which provide that the municipality has no obligation to make lease or installment purchase payments in future years unless money is appropriated for such purpose on a yearly basis. In addition to the "non-appropriation" risk, these securities represent a relatively new type of financing that has not yet developed the depth of marketability associated with more conventional bonds. In the case of a "non-appropriation" lease, a Fund's ability to recover under the lease in the event of non-appropriation or default will be limited solely to the repossession of the leased property in the event foreclosure might prove difficult. The Fund's subadviser will evaluate the credit quality of a municipal lease and whether it will be considered liquid. (See "Illiquid and Restricted Investments" in this section of the SAI for information regarding the implications of these investments being considered illiquid.) |  |
| *Municipal Notes* | Municipal notes generally are used to provide for short-term working capital needs and generally have maturities of one year or less. Municipal notes include bond anticipation notes, construction loan notes, revenue anticipation notes and tax anticipation notes. |  |
| <u>Bond Anticipation Notes</u> | Bond anticipation notes are issued to provide interim financing until long-term financing can be arranged. In most cases, the long-term bonds then provide the money for the repayment of the notes. |  |
| <u>Construction Loan Notes</u> | Construction loan notes are sold to provide construction financing. After successful completion and acceptance, many projects receive permanent financing through FNMA or GNMA. |  |
| <u>Revenue Anticipation Notes</u> | Revenue anticipation notes are issued in expectation of receipt of other types of revenue, such as Federal revenues available under Federal revenue sharing programs. |  |
| <u>Tax Anticipation Notes</u> | Tax anticipation notes are issued to finance working capital needs of municipalities. Generally, they are issued in anticipation of various seasonal tax revenue, such as income, sales, use and business taxes, and are payable from these specific future taxes. |  |
| *Tax-Exempt Commercial Paper* | Tax-exempt commercial paper is a short-term obligation with a stated maturity of 365 days or less. It is issued by state and local governments or their agencies to finance seasonal working capital needs or as short-term financing in anticipation of longer-term financing. |  |
| ***Participation on Creditors' Committees*** | While the Funds do not invest in securities to exercise control over the securities' issuers, each Fund may, from time to time, participate on committees formed by creditors to negotiate with the management of financially troubled issuers of securities held by the Fund. Such participation may subject the relevant Fund to expenses such as legal fees and may deem the Fund an "insider" of the issuer for purposes of the Federal securities laws, and expose the Fund to material non- public information of the issuer, and therefore may restrict the Fund's ability to purchase or sell a particular security when it might otherwise desire to  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | do so. Participation by a Fund on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and debtors. A Fund will participate on such committees only when the Fund's subadviser believes that such participation is necessary or desirable to enforce the Fund's rights as a creditor or to protect the value of securities held by the Fund. |  |
| ***Payable in Kind ("PIK") Bonds*** | PIK bonds are obligations which provide that the issuer thereof may, at its option, pay interest on such bonds in cash or "in kind", which means in the form of additional debt securities. Such securities benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to attract investors who are willing to defer receipt of such cash. The Funds will accrue income on such investments for tax and accounting purposes, which is distributable to shareholders and which, because no cash is received at the time of accrual, may require the liquidation of other portfolio securities to satisfy the Funds' distribution obligations. The market prices of PIK bonds generally are more volatile than the market prices of securities that pay interest periodically, and they are likely to respond to changes in interest rates to a greater degree than would otherwise similar bonds on which regular cash payments of interest are being made. |  |
| ***Fixed Rate Preferred Stocks*** | Some fixed rate preferred stocks in which a Fund may invest, known as perpetual preferred stocks, offer a fixed return with no maturity date. Because they never mature, perpetual preferred stocks act like long-term bonds and can be more volatile than and more sensitive to changes in interest rates than other types of preferred stocks that have a maturity date. The Funds may also invest in sinking fund preferred stocks. These preferred stocks also offer a fixed return, but have a maturity date and are retired or redeemed on a predetermined schedule. The shorter duration of sinking fund preferred stocks makes them perform somewhat like intermediate-term bonds and they typically have lower yields than perpetual preferred stocks. |  |
| ***Adjustable Rate and Auction Preferred Stocks*** | Typically, the dividend rate on an adjustable rate preferred stock is determined prospectively each quarter by applying an adjustment formula established at the time of issuance of the stock. Although adjustment formulas vary among issues, they typically involve a fixed premium or discount relative to rates on specified debt securities issued by the U.S. Treasury. Typically, an adjustment formula will provide for a fixed premium or discount adjustment relative to the highest base yield of three specified U.S. Treasury securities: the 90-day Treasury bill, the 10-year Treasury note and the 20-year Treasury bond. The premium or discount adjustment to be added to or subtracted from this highest U.S. Treasury base rate yield is fixed at the time of issue and cannot be changed without the approval of the holders of the stock. The dividend rate on another type of preferred stocks in which a Fund may invest, commonly known as auction preferred stocks, is adjusted at intervals that may be more frequent than quarterly, such as every 7 or 49 days, based on bids submitted by holders and prospective purchasers of such stocks and may be subject to stated maximum and minimum dividend rates.<br>The issues of most adjustable rate and auction preferred stocks currently outstanding are perpetual, but are redeemable after a specified date, or upon notice, at the option of the issuer. Certain issues supported by the credit of a high-rated financial institution provide for mandatory redemption prior to expiration of the credit arrangement. No redemption can occur if full cumulative dividends are not paid. Although the dividend rates on adjustable and auction preferred stocks are generally adjusted or reset frequently, the market values of these preferred stocks may still fluctuate in response to changes in interest rates. Market values of adjustable preferred stocks also may substantially fluctuate if interest rates increase or decrease once the maximum or minimum dividend rate for a particular stock is approached. Auctions for U.S. auction preferred stocks have failed since early 2008, and the dividend rates payable on such preferred shares since that time typically have been paid at their maximum applicable rate (typically a function of a reference rate of interest). The Adviser expects that auction preferred stocks will continue to pay dividends at their maximum applicable rate for the foreseeable future and cannot predict whether or when the  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | auction markets for auction preferred stocks may resume normal functioning. |  |
| ***Ratings*** | The rating or quality of a debt security refers to a rating agency's assessment of the issuer's creditworthiness, i.e., its ability to pay principal and interest when due. Higher ratings indicate better credit quality, as rated by independent rating organizations such as Moody's, S&P or Fitch, which publish their ratings on a regular basis. Appendix A provides a description of the various ratings provided for bonds (including convertible bonds), municipal bonds, and commercial paper.<br>After a Fund purchases a debt security, the rating of that security may be reduced below the minimum rating acceptable for purchase by the Fund. A subsequent downgrade does not require the sale of the security, but the Fund's subadviser will consider such an event in determining whether to continue to hold the obligation. To the extent that ratings established by Moody's or S&P may change as a result of changes in such organizations or their rating systems, a Fund will invest in securities which are deemed by the Fund's subadviser to be of comparable quality to securities whose current ratings render them eligible for purchase by the Fund.<br>Credit ratings issued by credit rating agencies evaluate the safety of principal and interest payments of rated securities. They do not, however, evaluate the market-value risk and therefore may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes in the economy or in the condition of the issuer that affect the market value of the security. Consequently, credit ratings are used only as a preliminary indicator of investment quality. |  |
| ***Revolving Credit Facilities (Revolvers)*** | Revolvers are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. As the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the Revolver and usually provides for floating or variable rates of interest.<br>These commitments may have the effect of requiring the Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company's financial condition makes it unlikely that such amounts will be repaid).<br>The Fund may invest in Revolvers with credit quality comparable to that of issuers of its other investments.<br>Revolvers may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, the Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value.<br>Each Fund currently intends to treat Revolvers for which there is no readily available market as illiquid for purposes of that Fund's limitation on illiquid investments. |  |
| ***Sovereign Debt*** | Each Fund may invest in "sovereign debt," which is issued or guaranteed by foreign governments (including countries, provinces and municipalities) or their agencies and instrumentalities. Sovereign debt may trade at a substantial discount from face value. The Funds may hold and trade sovereign debt of foreign countries in appropriate circumstances to participate in debt conversion programs. Emerging market country sovereign debt involves a higher degree of risk than that of developed markets, is generally lower-quality debt, and is considered speculative in nature due, in part, to the extreme and volatile nature of debt burdens in such countries and because emerging market governments can be relatively unstable. The issuer or governmental authorities that control sovereign-debt repayment ("sovereign debtors") may be unable or unwilling to repay principal or interest when due in accordance with the terms of the debt. A sovereign debtor's willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash-flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the sovereign debtor's policy towards the IMF, and the political constraints to which the sovereign debtor may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies and  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | others abroad to reduce principal and interest arrearage on their debt. The commitment of these third parties to make such disbursements may be conditioned on the sovereign debtor's implementation of economic reforms or economic performance and the timely service of the debtor's obligations. The sovereign debtor's failure to meet these conditions may cause these third parties to cancel their commitments to provide funds to the sovereign debtor, which may further impair the debtor's ability or willingness to timely service its debts. In certain instances, the Funds may invest in sovereign debt that is in default as to payments of principal or interest. In the event that the Funds hold non- performing sovereign debt, the Funds may incur additional expenses in connection with any restructuring of the issuer's obligations or in otherwise enforcing their rights thereunder. |  |
| *Brady Bonds* | Each Fund may invest a portion of its assets in certain sovereign debt obligations known as "Brady Bonds." Brady Bonds are issued under the framework of the Brady Plan, an initiative announced by former U.S. Treasury Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to restructure their outstanding external indebtedness. The Brady Plan contemplates, among other things, the debtor nation's adoption of certain economic reforms and the exchange of commercial bank debt for newly issued bonds. In restructuring its external debt under the Brady Plan framework, a debtor nation negotiates with its existing bank lenders as well as the World Bank or the IMF. The World Bank or IMF supports the restructuring by providing funds pursuant to loan agreements or other arrangements that enable the debtor nation to collateralize the new Brady Bonds or to replenish reserves used to reduce outstanding bank debt. Under these loan agreements or other arrangements with the World Bank or IMF, debtor nations have been required to agree to implement certain domestic monetary and fiscal reforms. The Brady Plan sets forth only general guiding principles for economic reform and debt reduction, emphasizing that solutions must be negotiated on a case-by-case basis between debtor nations and their creditors.<br>Brady Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity (these uncollateralized amounts constitute the "residual risk"). In light of the residual risk of Brady Bonds and, among other factors, the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds, investments in Brady Bonds can be viewed as speculative. |  |
| ***Stand-by Commitments*** | Each Fund may purchase securities together with the right to resell them to the seller or a third party at an agreed-upon price or yield within specified periods prior to their maturity dates. Such a right to resell is commonly known as a stand-by commitment, and the aggregate price which a Fund pays for securities with a stand-by commitment may increase the cost, and thereby reduce the yield, of the security. The primary purpose of this practice is to permit the Fund to be as fully invested as practicable in municipal securities while preserving the necessary flexibility and liquidity to meet unanticipated redemptions. Stand-by commitments acquired by a Fund are valued at zero in determining the Fund's NAV. Stand-by commitments involve certain expenses and risks, including the inability of the issuer of the commitment to pay for the securities at the time the commitment is exercised, non-marketability of the commitment, and differences between the maturity of the underlying security and the maturity of the commitment. |  |
| ***Strip Bonds*** | Strip bonds are debt securities that are stripped of their interest (usually by a financial intermediary) after the securities are issued. The market value of these securities generally fluctuates more in response to changes in interest rates than interest-paying securities of comparable maturity. |  |
| ***Tax Credit Bonds ("Build America Bonds")*** | Build America Bonds are taxable bonds issued by federal and state local governments that allow a new direct federal payment subsidy. At the election of the state and local governments, the Treasury Department will make a direct payment to the state or local governmental issuer in an amount equal to 35% of the interest payment on the Build America Bonds. As a result, state and local governments will have lower net borrowing costs.  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | This will also make Build America Bonds attractive to a broader group of investors that typically invest in traditional state and local tax-exempt bonds, where interest rates have historically been 20% lower than taxable interest rates. |  |
| ***Tender Option Bonds*** | Tender option bonds are relatively long-term bonds that are coupled with the option to tender the securities to a bank, broker-dealer or other financial institution at periodic intervals and receive the face value of the bond. This investment structure is commonly used as a means of enhancing a security's liquidity. |  |
| ***Variable and Floating Rate Obligations*** | Each Fund may purchase securities having a floating or variable rate of interest. These securities pay interest at rates that are adjusted periodically according to a specific formula, usually with reference to some interest rate index or market interest rate (the "underlying index"). The floating rate tends to decrease the security's price sensitivity to changes in interest rates. These securities may carry demand features permitting the holder to demand payment of principal at any time or at specified intervals prior to maturity. Accordingly, as interest rates decrease or increase, the potential for capital appreciation or depreciation is less than for fixed-rate obligations.<br>The floating and variable rate obligations that the Funds may purchase include variable rate demand securities. Variable rate demand securities are variable rate securities that have demand features entitling the purchaser to resell the securities to the issuer at an amount approximately equal to amortized cost or the principal amount thereof plus accrued interest, which may be more or less than the price that the Fund paid for them. The interest rate on variable rate demand securities also varies either according to some objective standard, such as an index of short-term, tax-exempt rates, or according to rates set by or on behalf of the issuer.<br>When a Fund purchases a floating or variable rate demand instrument, the Fund's subadviser will monitor, on an ongoing basis, the ability of the issuer to pay principal and interest on demand. The Fund's right to obtain payment at par on a demand instrument could be affected by events occurring between the date the Fund elects to demand payment and the date payment is due that may affect the ability of the issuer of the instrument to make payment when due, except when such demand instrument permits same day settlement. To facilitate settlement, these same day demand instruments may be held in book entry form at a bank other than the Funds' custodian subject to a sub- custodian agreement between the bank and the Funds' custodian.<br>The floating and variable rate obligations that the Funds may purchase also include certificates of participation in such obligations purchased from banks. A certificate of participation gives the Fund an undivided interest in the underlying obligations in the proportion that the Fund's interest bears to the total principal amount of the obligation. Certain certificates of participation may carry a demand feature that would permit the holder to tender them back to the issuer prior to maturity.<br>The income received on certificates of participation in tax-exempt municipal obligations constitutes interest from tax-exempt obligations.<br>Each Fund will limit its purchases of floating and variable rate obligations to those of the same quality as it otherwise is allowed to purchase. Similar to fixed rate debt instruments, variable and floating rate instruments are subject to changes in value based on changes in prevailing market interest rates or changes in the issuer's creditworthiness.<br>A floating or variable rate instrument may be subject to a Fund's percentage limitation on illiquid securities if there is no reliable trading market for the instrument or if the Fund may not demand payment of the principal amount within seven days. (See "Illiquid and Restricted Securities" in this section of the SAI.) |  |
| ***Zero, Deferred and Step Coupon Debt Securities and Payment-in-Kind***  | Each Fund may invest in debt obligations that do not make any interest payments for a specified period of time prior to maturity ("deferred coupon" bonds) or until maturity ("zero coupon" bonds). The nonpayment of interest on a current basis may result from the bond's having no stated interest rate, in which case the bond pays only principal at maturity and is  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| ***Securities*** | normally initially issued at a discount from face value. Alternatively, the bond may provide for a stated rate of interest, but provide that such interest is not payable until maturity, in which case the bond may initially be issued at par. The value to the investor of these types of bonds is represented by the economic accretion either of the difference between the purchase price and the nominal principal amount (if no interest is stated to accrue) or of accrued, unpaid interest during the bond's life or payment deferral period.<br>Because deferred and zero coupon bonds do not make interest payments for a certain period of time, they are generally purchased by a Fund at a deep discount and their value fluctuates more in response to interest rate changes than does the value of debt obligations that make current interest payments. The degree of fluctuation with interest rate changes is greater when the deferred period is longer. Therefore, when a Fund invests in zero or deferred coupon bonds, there is a risk that the value of the Funds' shares may decline more as a result of an increase in interest rates than would be the case if the Fund did not invest in such bonds.<br>Even though zero and deferred coupon bonds may not pay current interest in cash, each Fund is required to accrue interest income on such investments and to distribute such amounts to shareholders. Thus, a Fund would not be able to purchase income-producing securities to the extent cash is used to pay such distributions, and, therefore, the Funds' current income could be less than it otherwise would have been. Instead of using cash, the Fund might liquidate investments in order to satisfy these distribution requirements.<br>Step coupon bonds trade at a discount from their face value and pay coupon interest. The coupon rate is low for an initial period and then increases to a higher coupon rate. The discount from the face amount or par value depends on the time remaining until cash payments begin, prevailing interest rates, liquidity of the security and the perceived credit quality of the issuer.<br>Payment-in-kind securities are debt or preferred securities that require or permit payment of interest in the form of additional securities. Payment-in-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash. |  |
| **Derivative Instruments** | Each Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. Each Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity- linked derivatives.<br>Each Fund may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or in pursuit of its investment objective(s) and policies (to seek to enhance returns). When a Fund invests in a derivative, the risks of loss of that derivative may be greater than the derivative's cost. No Fund may use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. In addition to other considerations, a Fund's ability to use derivative instruments may be limited by tax considerations. (See "Dividends, Distributions and Taxes" in this SAI.) <br>Investments in derivatives may subject a Fund to special risks in addition to normal market fluctuations and other risks inherent in investment in securities. Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose a Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case.<br>SEC Rule 18f-4 ("Rule 18f-4" or the "Derivatives Rule") regulates the ability of a Fund to enter into derivative transactions and other leveraged transactions. The Derivatives Rule defines the term "derivatives" to include short sales and forward contracts, such as TBA  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | transactions, in addition to instruments traditionally classified as derivatives, such as swaps, futures, and options. Rule 18f-4 also regulates other types of leveraged transactions, such as reverse repurchase transactions and transactions deemed to be "similar to" reverse repurchase transactions, such as certain securities lending transactions in connection with which a Fund obtains leverage. Among other things, under Rule 18f-4, a Fund is prohibited from entering into these derivatives transactions except in reliance on the provisions of the Derivatives Rule. The Derivatives Rule establishes limits on the derivatives transactions that a Fund may enter into based on the value-at-risk ("VaR") of the Fund inclusive of derivatives. A Fund will generally satisfy the limits under the Rule if the VaR of its portfolio (inclusive of derivatives transactions) does not exceed 200% of the VaR of its "designated reference portfolio." The "designated reference portfolio" is a representative unleveraged index or a Fund's own portfolio absent derivatives holdings, as determined by such Fund's derivatives risk manager. This limits test is referred to as the "Relative VaR Test." As a result of the Relative VaR Test, a Fund may not seek returns in excess of 2x the Underlying Index.<br>In addition, among other requirements, Rule 18f-4 requires a Fund to establish a derivatives risk management program, appoint a derivatives risk manager, and carry out enhanced reporting to the Board, the SEC and the public regarding a Fund's derivatives activities. These new requirements will apply unless a Fund qualifies as a "limited derivatives user," which the Derivatives Rule defines as a fund that limits its derivatives exposure to 10% of its net assets. It is possible that the limits and compliance costs imposed by the Derivatives Rule may adversely affect a Fund's performance, efficiency in implementing its strategy, liquidity and/or ability to pursue its investment objectives and may increase the cost of such Fund's investments and cost of doing business, which could adversely affect investors. |  |
| ***Commodity Interests*** | Certain of the derivative investment types permitted for the Funds may be considered commodity interests for purposes of the CEA and regulations approved by the CFTC. However, as of the date of this SAI, each Fund intends to limit the use of such investment types as required to qualify for exclusion or exemption from being considered a "commodity pool" or otherwise as a vehicle for trading in commodity interests under such regulations. <br>The CFTC has adopted amendments to its rules that may affect the Funds' ability to continue to claim exclusion or exemption from regulation. If a Fund's use of these techniques would cause the Fund to be considered a "commodity pool" under the CEA, then the Adviser would be subject to registration and regulation as the Fund's commodity pool operator, and the Fund's subadviser may be subject to registration and regulation as the Fund's commodity trading advisor. A Fund may incur additional expense as a result of the CFTC's registration and regulation obligations, and the Fund's use of these techniques and other instruments may be limited or restricted. |  |
| ***Credit-linked Notes*** | Credit-linked notes are derivative instruments used to transfer credit risk. The performance of the notes is linked to the performance of the underlying reference obligation or reference portfolio ("reference entities"). The notes are usually issued by a special purpose vehicle that sells credit protection through a credit default swap agreement in return for a premium and an obligation to pay the transaction sponsor should a reference entity experience a credit event, such as bankruptcy. The special purpose vehicle invests the proceeds from the notes to cover its contingent obligation. Revenue from the investments and the money received as premium are used to pay interest to note holders. The main risk of credit linked notes is the risk of default to the reference obligation of the credit default swap. Should a default occur, the special purpose vehicle would have to pay the transaction sponsor, subordinating payments to the note holders. Credit linked notes also may not be liquid and may be subject to currency and interest rate risks as well. |  |
| ***Equity-linked Derivatives*** | Each Fund may invest in equity-linked derivative products, the performance of which is designed to correspond generally to the performance of a specified stock index or "basket" of stocks, or to a single stock. Investments in equity-linked derivatives involve the same risks associated with a direct investment in the types of securities such products are designed to track. There can be no assurance that the trading price of the equity-linked derivatives will  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | equal the underlying value of the securities purchased to replicate a particular investment or that such basket will replicate the investment.<br>Investments in equity-linked derivatives may constitute investments in other investment companies. (See "Mutual Fund Investing" in this section of the SAI for information regarding the implications of a Fund investing in other investment companies.) |  |
| ***Eurodollar Instruments*** | The Funds may invest in Eurodollar instruments. Eurodollar instruments are dollar-denominated certificates of deposit and time deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Eurodollar futures contracts enable purchasers to obtain a fixed rate for the lending of funds and sellers to obtain a fixed rate for borrowings. Each Fund might use Eurodollar instruments to hedge against changes in interest rates or to enhance returns.<br>Eurodollar obligations are subject to the same risks that pertain to domestic issuers, most notably income risk (and, to a lesser extent, credit risk, market risk, and liquidity risk). Additionally, Eurodollar obligations are subject to certain sovereign risks. One such risk is the possibility that a sovereign country might prevent capital, in the form of dollars, from flowing across its borders. Other risks include adverse political and economic developments, the extent and quality of government regulation of financial markets and institutions, the imposition of foreign withholding taxes, and expropriation or nationalization of foreign issuers. However, Eurodollar obligations will undergo the same type of credit analysis as domestic issuers in which a Fund invests. |  |
| ***Foreign Currency Forward Contracts, Futures and Options*** | Each Fund may engage in certain derivative foreign currency exchange and option transactions involving investment risks and transaction costs to which the Fund would not be subject absent the use of these strategies. If a Fund's subadviser's predictions of movements in the direction of securities prices or currency exchange rates are inaccurate, the Fund may experience adverse consequences, leaving it in a worse position than if it had not used such strategies. Risks inherent in the use of option and foreign currency forward and futures contracts include: (1) dependence on the Fund's subadviser's ability to correctly predict movements in the direction of securities prices and currency exchange rates; (2) imperfect correlation between the price of options and futures contracts and movements in the prices of the securities or currencies being hedged; (3) the fact that the skills needed to use these strategies are different from those needed to select portfolio securities; (4) the possible absence of a liquid secondary market for any particular instrument at any time; and (5) the possible need to defer closing out certain hedged positions to avoid adverse tax consequences. The Fund's ability to enter into futures contracts is also limited by the requirements of the Code for qualification as a regulated investment company. (See the "Dividends, Distributions and Taxes" section of this SAI.)<br>A Fund may engage in currency exchange transactions to protect against uncertainty in the level of future currency exchange rates. In addition, a Fund may write covered put and call options on foreign currencies for the purpose of increasing its return.<br>A Fund may enter into contracts to purchase or sell foreign currencies at a future date ("forward contracts") and purchase and sell foreign currency futures contracts. For certain hedging purposes, the Fund may also purchase exchange-listed and over-the-counter put and call options on foreign currency futures contracts and on foreign currencies. A put option on a futures contract gives the Fund the right to assume a short position in the futures contract until the expiration of the option. A put option on a currency gives the Fund the right to sell the currency at an exercise price until the expiration of the option. A call option on a futures contract gives the Fund the right to assume a long position in the futures contract until the expiration of the option. A call option on a currency gives the Fund the right to purchase the currency at the exercise price until the expiration of the option.<br>When engaging in position hedging, a Fund enters into foreign currency exchange transactions to protect against a decline in the values of the foreign currencies in which its portfolio securities are denominated (or an increase in the values of currency for securities which the Fund expects to purchase, when the Fund holds cash or short-term investments).  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | In connection with position hedging, the Fund may purchase put or call options on foreign currency and on foreign currency futures contracts and buy or sell forward contracts and foreign currency futures contracts. (A Fund may also purchase or sell foreign currency on a spot basis, as discussed in "Foreign Currency Transactions" under "Foreign Investing" in this section of the SAI.)<br>The precise matching of the amounts of foreign currency exchange transactions and the value of the portfolio securities involved will not generally be possible since the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the dates the currency exchange transactions are entered into and the dates they mature. It is also impossible to forecast with precision the market value of portfolio securities at the expiration or maturity of a forward or futures contract. Accordingly, it may be necessary for a Fund to purchase additional foreign currency on the spot market (and bear the expense of such purchase) if the market value of the security or securities being hedged is less than the amount of foreign currency the Fund is obligated to deliver and a decision is made to sell the security or securities and make delivery of the foreign currency. Conversely, it may be necessary to sell on the spot market some of the foreign currency received upon the sale of the portfolio security or securities if the market value of such security or securities exceeds the amount of foreign currency the Fund is obligated to deliver.<br>Hedging techniques do not eliminate fluctuations in the underlying prices of the securities which a Fund owns or intends to purchase or sell. They simply establish a rate of exchange which one can achieve at some future point in time. Additionally, although these techniques tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also tend to limit any potential gain which might result from the increase in value of such currency.<br>A Fund may seek to increase its return or to offset some of the costs of hedging against fluctuations in currency exchange rates by writing covered put options and covered call options on foreign currencies. In that case, the Fund receives a premium from writing a put or call option, which increases the Fund's current return if the option expires unexercised or is closed out at a net profit. A Fund may terminate an option that it has written prior to its expiration by entering into a closing purchase transaction in which it purchases an option having the same terms as the option written.<br>A Fund's currency hedging transactions may call for the delivery of one foreign currency in exchange for another foreign currency and may at times not involve currencies in which its portfolio securities are then denominated. A Fund's subadviser will engage in such "cross hedging" activities when it believes that such transactions provide significant hedging opportunities for the Fund. Cross hedging transactions by a Fund involve the risk of imperfect correlation between changes in the values of the currencies to which such transactions relate and changes in the value of the currency or other asset or liability which is the subject of the hedge.<br>Foreign currency forward contracts, futures and options may be traded on foreign exchanges. Such transactions may not be regulated as effectively as similar transactions in the United States; may not involve a clearing mechanism and related guarantees; and are subject to the risk of governmental actions affecting trading in, or the prices of, foreign securities. The value of such positions also could be adversely affected by (i) other complex foreign political, legal and economic factors, (ii) lesser availability than in the United States of data on which to make trading decisions, (iii) delays in the relevant Fund's ability to act upon economic events occurring in foreign markets during non- business hours in the United States, (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the United States, and (v) lesser trading volume.<br>The types of derivative foreign currency exchange transactions most commonly employed by the Funds are discussed below, although each Fund is also permitted to engage in other similar transactions to the extent consistent with the Fund's investment limitations and restrictions. |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| *Foreign Currency Forward Contracts* | A foreign currency forward contract involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days ("term") from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders (usually large commercial banks) and their customers. |  |
| *Foreign Currency Futures Transactions* | Each Fund may use foreign currency futures contracts and options on such futures contracts. Through the purchase or sale of such contracts, a Fund may be able to achieve many of the same objectives attainable through the use of foreign currency forward contracts, but more effectively and possibly at a lower cost.<br>Unlike forward foreign currency exchange contracts, foreign currency futures contracts and options on foreign currency futures contracts are standardized as to amount and delivery period and are traded on boards of trade and commodities exchanges. It is anticipated that such contracts may provide greater liquidity and lower cost than forward foreign currency exchange contracts.<br>Purchasers and sellers of foreign currency futures contracts are subject to the same risks that apply to the buying and selling of futures generally. In addition, there are risks associated with foreign currency futures contracts similar to those associated with options on foreign currencies. (See "Foreign Currency Options" and "Futures Contracts and Options on Futures Contracts", each in this sub-section of the SAI.) The Fund must accept or make delivery of the underlying foreign currency, through banking arrangements, in accordance with any U.S. or foreign restrictions or regulations regarding the maintenance of foreign banking arrangements by U.S. residents and may be required to pay any fees, taxes or charges associated with such delivery which are assessed in the issuing country.<br>Futures contracts are designed by boards of trade which are designated "contracts markets" by the CFTC. Futures contracts trade on contracts markets in a manner that is similar to the way a stock trades on a stock exchange and the boards of trade, through their clearing corporations, guarantee performance of the contracts. As of the date of this SAI, the Funds may invest in futures contracts under specified conditions without being regulated as commodity pools. However, under CFTC rules the Funds' ability to maintain the exclusions/exemptions from the definition of commodity pool may be limited. (See "Commodity Interests" in this section of the SAI.) |  |
| *Foreign Currency Options* | A foreign currency option provides the option buyer with the right to buy or sell a stated amount of foreign currency at the exercise price at a specified date or during the option period. A call option gives its owner the right, but not the obligation, to buy the currency, while a put option gives its owner the right, but not the obligation, to sell the currency. The option seller (writer) is obligated to fulfill the terms of the option sold if it is exercised. However, either seller or buyer may close its position during the option period for such options any time prior to expiration.<br>A call rises in value if the underlying currency appreciates. Conversely, a put rises in value if the underlying currency depreciates. While purchasing a foreign currency option can protect a Fund against an adverse movement in the value of a foreign currency, it does not limit the gain which might result from a favorable movement in the value of such currency. For example, if the Fund were holding securities denominated in an appreciating foreign currency and had purchased a foreign currency put to hedge against a decline in the value of the currency, it would not have to exercise its put. Similarly, if the Fund had entered into a contract to purchase a security denominated in a foreign currency and had purchased a foreign currency call to hedge against a rise in the value of the currency but instead the currency had depreciated in value between the date of purchase and the settlement date, the Fund would not have to exercise its call but could acquire in the spot market the amount of foreign currency needed for settlement.<br>The value of a foreign currency option depends upon the value of the underlying currency relative to the other referenced currency. As a result, the price of the option position may vary with changes in the value of either or both currencies and have no relationship to the  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | investment merits of a foreign security, including foreign securities held in a "hedged" investment portfolio. Because foreign currency transactions occurring in the interbank market involve substantially larger amounts than those that may be involved in the use of foreign currency options, the Funds may be disadvantaged by having to deal in an odd lot market (generally consisting of transactions of less than $1 million) for the underlying foreign currencies at prices that are less favorable than for round lots.<br>As in the case of other kinds of options, the use of foreign currency options constitutes only a partial hedge, and a Fund could be required to purchase or sell foreign currencies at disadvantageous exchange rates, thereby incurring losses. The purchase of an option on a foreign currency may not necessarily constitute an effective hedge against fluctuations in exchange rates and, in the event of rate movements adverse to the Fund's position, the Fund may forfeit the entire amount of the premium plus related transaction costs.<br>Options on foreign currencies written or purchased by a Fund may be traded on U.S. or foreign exchanges or over the counter. There is no systematic reporting of last sale information for foreign currencies traded over the counter or any regulatory requirement that quotations available through dealers or other market sources be firm or revised on a timely basis. Quotation information available is generally representative of very large transactions in the interbank market and thus may not reflect relatively smaller transactions (i.e., less than $1 million) where rates may be less favorable. The interbank market in foreign currencies is a global, around-the-clock market. To the extent that the options markets are closed while the markets for the underlying currencies remain open, significant price and rate movements may take place in the underlying markets that are not reflected in the options market.<br>For additional information about options transactions, see "Options" under "Derivative Investments" in this section of the SAI. |  |
| *Foreign Currency Warrants* | Foreign currency warrants such as currency exchange warrants are warrants that entitle the holder to receive from the issuer an amount of cash (generally, for warrants issued in the United States, in U.S. dollars) that is calculated pursuant to a predetermined formula and based on the exchange rate between two specified currencies as of the exercise date of the warrant. Foreign currency warrants generally are exercisable upon their issuance and expire as of a specified date and time.<br>Foreign currency warrants may be used to reduce the currency exchange risk assumed by purchasers of a security by, for example, providing for a supplemental payment in the event the U.S. dollar depreciates against the value of a major foreign currency such as the Japanese Yen or Euro. The formula used to determine the amount payable upon exercise of a foreign currency warrant may make the warrant worthless unless the applicable foreign currency exchange rate moves in a particular direction (e.g., unless the U.S. dollar appreciates or depreciates against the particular foreign currency to which the warrant is linked or indexed).<br>Foreign currency warrants are severable from the debt obligations with which they may be offered, and may be listed on exchanges. Foreign currency warrants may be exercisable only in certain minimum amounts, and an investor wishing to exercise warrants who possesses less than the minimum number required for exercise may be required either to sell the warrants or to purchase additional warrants, thereby incurring additional transaction costs. Upon exercise of warrants, there may be a delay between the time the holder gives instructions to exercise and the time the exchange rate relating to exercise is determined, thereby affecting both the market and cash settlement values of the warrants being exercised. The expiration date of the warrants may be accelerated if the warrants should be delisted from an exchange or if their trading should be suspended permanently, which would result in the loss of any remaining "time value" of the warrants (i.e., the difference between the current market value and the exercise value of the warrants), and, if the warrants were "out-of-the-money," in a total loss of the purchase price of the warrants.<br>Warrants are generally unsecured obligations of their issuers and are not standardized  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | foreign currency options issued by the OCC. Unlike foreign currency options issued by OCC, the terms of foreign exchange warrants generally will not be amended in the event of governmental or regulatory actions affecting exchange rates or in the event of the imposition of other regulatory controls affecting the international currency markets. The initial public offering price of foreign currency warrants could be considerably in excess of the price that a commercial user of foreign currencies might pay in the interbank market for a comparable option involving larger amounts of foreign currencies. Foreign currency warrants are subject to significant foreign exchange risk, including risks arising from complex political or economic factors. |  |
| *Performance Indexed Paper* | Performance indexed paper is commercial paper the yield of which is linked to certain currency exchange rate movements. The yield to the investor on performance indexed paper is established at maturity as a function of spot exchange rates between the designated currencies as of or about the time (generally, the index maturity two days prior to maturity). The yield to the investor will be within a range stipulated at the time of purchase of the obligation, generally with a guaranteed minimum rate of return that is below, and a potential maximum rate of return that is above, market yields on commercial paper, with both the minimum and maximum rates of return on the investment corresponding to the minimum and maximum values of the spot exchange rate two business days prior to maturity. |  |
| *Principal Exchange Rate Linked Securities ("PERLS")* | PERLS are debt obligations the principal on which is payable at maturity in an amount that may vary based on the exchange rate between the particular currencies at or about that time. The return on "standard" principal exchange rate linked securities is enhanced if the currency to which the security is linked appreciates against the base currency, and is adversely affected by increases in the exchange value of the base currency. "Reverse" PERLS are like the "standard" securities, except that their return is enhanced by increases in the value of the base currency and adversely impacted by increases in the value of other currency. Interest payments on the securities are generally made at rates that reflect the degree of currency risk assumed or given up by the purchaser of the notes (i.e., at relatively higher interest rates if the purchaser has assumed some of the currency exchange risk, or relatively lower interest rates if the issuer has assumed some of the currency exchange risk, based on the expectations of the current market). PERLS may in limited cases be subject to acceleration of maturity (generally, not without the consent of the holders of the securities), which may have an adverse impact on the value of the principal payment to be made at maturity. |  |
| ***Futures Contracts and Options on Futures Contracts*** | Each Fund may use interest rate, foreign currency, dividend, volatility or index futures contracts. An interest rate, foreign currency, dividend, volatility or index futures contract provides for the future sale by one party and purchase by another party of a specified quantity of a financial instrument, foreign currency, dividend basket or the cash value of an index at a specified price and time. A futures contract on an index is an agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index contract was originally written. Although the value of an index might be a function of the value of certain specified securities, no physical delivery of these securities is made. A public market exists in futures contracts covering several indexes as well as a number of financial instruments and foreign currencies, and it is expected that other futures contracts will be developed and traded in the future. Interest rate and volatility futures contracts currently are traded in the United States primarily on the floors of the Chicago Board of Trade and the International Monetary Market of the Chicago Mercantile Exchange. Interest rate futures also are traded on foreign exchanges such as the London International Financial Futures Exchange and the Singapore International Monetary Exchange. Volatility futures also are traded on foreign exchanges such as Eurex. Dividend futures are also traded on foreign exchanges such as Eurex, NYSE Euronext Liffe, London Stock Exchange and the Singapore International Monetary Exchange.<br>A Fund may purchase and write call and put options on futures. Futures options possess  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | many of the same characteristics as options on securities and indexes discussed above. A futures option gives the holder the right, in return for the premium paid, to assume a long position (call) or short position (put) in a futures contract at a specified exercise price at any time during the period of option. Upon exercise of a call option, the holder acquires a long position in the futures contract and the writer is assigned the opposite short position. In the case of a put option, the opposite is true.<br>Except as otherwise described in this SAI, the Funds will limit their use of futures contracts and futures options to hedging transactions and in an attempt to increase total return, in accordance with Federal regulations. The costs of, and possible losses incurred from, futures contracts and options thereon may reduce the Fund's current income and involve a loss of principal. Any incremental return earned by the Fund resulting from these transactions would be expected to offset anticipated losses or a portion thereof.<br>The Funds will only enter into futures contracts and futures options which are standardized and traded on a U.S. or foreign exchange, board of trade, or similar entity, or quoted on an automated quotation system.<br>When a purchase or sale of a futures contract is made by a Fund, the Fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of cash or U.S. Government securities ("initial margin"). The margin required for a futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract which is returned to the Fund upon termination of the contract, assuming all contractual obligations have been satisfied. The Funds expect to earn interest income on their initial margin deposits. A futures contract held by a Fund is valued daily at the official settlement price of the exchange on which it is traded. Each day the Fund pays or receives cash, called "variation margin," equal to the daily change in value of the futures contract. This process is known as "marking to market." Variation margin does not represent a borrowing or loan by the Fund but is instead a settlement between the Fund and the broker of the amount one would owe the other if the futures contract expired. In computing daily NAV, the Fund will mark to market its open futures positions.<br>The Funds are also required to deposit and maintain margin with respect to put and call options on futures contracts written by them. Such margin deposits will vary depending on the nature of the underlying futures contract (and the related initial margin requirements), the current market value of the option, and other futures positions held by the relevant Fund.<br>Futures contracts are designed by boards of trade which are designated "contracts markets" by the CFTC. Futures contracts trade on contracts markets in a manner that is similar to the way a stock trades on a stock exchange and the boards of trade, through their clearing corporations, guarantee performance of the contracts. A Fund's ability to claim an exclusion or exemption from the definition of a commodity pool may be limited when the Fund invests in futures contracts. (See "Commodity Interests" in this SAI.)<br>The requirements of the Code for qualification as a regulated investment company also may limit the extent to which a Fund may enter into futures, futures options or forward contracts. (See the "Dividends, Distributions and Taxes" section of this SAI.)<br>Although some futures contracts call for making or taking delivery of the underlying securities, generally these obligations are closed out prior to delivery by offsetting purchases or sales of matching futures contracts (same exchange, underlying security or index, and delivery month). If an offsetting purchase price is less than the original sale price, the Fund realizes a capital gain, or if it is more, the Fund realizes a capital loss. Conversely, if an offsetting sales price is more than the original purchase price, the Fund realizes a capital gain, or if it is less, the Fund realizes a capital loss. The transaction costs must also be included in these calculations.<br>Positions in futures contracts and related options may be closed out only on an exchange which provides a secondary market for such contracts or options. The Fund will enter into an option or futures position only if there appears to be a liquid secondary market. However,  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | there can be no assurance that a liquid secondary market will exist for any particular option or futures contract at any specific time. Thus, it may not be possible to close out a futures or related option position. In the case of a futures position, in the event of adverse price movements the Fund would continue to be required to make daily margin payments. In this situation, if the Fund has insufficient cash to meet daily margin requirements it may have to sell portfolio securities to meet its margin obligations at a time when it may be disadvantageous to do so. In addition, the Fund may be required to take or make delivery of the securities underlying the futures contracts it holds. The inability to close out futures positions also could have an adverse impact on the Fund's ability to hedge its portfolio effectively.<br>There are several risks in connection with the use of futures contracts as a hedging device. While hedging can provide protection against an adverse movement in market prices, it can also limit a hedger's opportunity to benefit fully from a favorable market movement. In addition, investing in futures contracts and options on futures contracts will cause the Fund to incur additional brokerage commissions and may cause an increase in the Fund's portfolio turnover rate.<br>The successful use of futures contracts and related options may also depend on the ability of the relevant Fund's subadviser to forecast correctly the direction and extent of market movements, interest rates and other market factors within a given time frame. To the extent market prices remain stable during the period a futures contract or option is held by a Fund or such prices move in a direction opposite to that anticipated, the Fund may realize a loss on the transaction which is not offset by an increase in the value of its portfolio securities. Options and futures may also fail as a hedging technique in cases where the movements of the securities underlying the options and futures do not follow the price movements of the hedged portfolio securities. As a result, the Fund's total return for the period may be less than if it had not engaged in the hedging transaction. The loss from investing in futures transactions is potentially unlimited.<br>Utilization of futures contracts by a Fund involves the risk of imperfect correlation in movements in the price of futures contracts and movements in the price of the securities which are being hedged. If the price of the futures contract moves more or less than the price of the securities being hedged, the Fund will experience a gain or loss which will not be completely offset by movements in the price of the securities. It is possible that, where a Fund has sold futures contracts to hedge its portfolio against a decline in the market, the market may advance and the value of securities held in the Fund's portfolio may decline. If this occurred, the Fund would lose money on the futures contract and would also experience a decline in value in its portfolio securities. Where futures are purchased to hedge against a possible increase in the prices of securities before the Fund is able to invest its cash (or cash equivalents) in securities (or options) in an orderly fashion, it is possible that the market may decline; if the Fund then determines not to invest in securities (or options) at that time because of concern as to possible further market decline or for other reasons, the Fund will realize a loss on the futures that would not be offset by a reduction in the price of the securities purchased.<br>The market prices of futures contracts may be affected if participants in the futures market elect to close out their contracts through off- setting transactions rather than to meet margin deposit requirements. In such case, distortions in the normal relationship between the cash and futures markets could result. Price distortions could also result if investors in futures contracts opt to make or take delivery of the underlying securities rather than to engage in closing transactions because such action would reduce the liquidity of the futures market. In addition, from the point of view of speculators, because the deposit requirements in the futures markets are less onerous than margin requirements in the cash market, increased participation by speculators in the futures market could cause temporary price distortions. Due to the possibility of price distortions in the futures market and because of the imperfect correlation between movements in the prices of securities and movements in the prices of futures contracts, a correct forecast of market trends may still not result in a successful  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | hedging transaction.<br>Compared to the purchase or sale of futures contracts, the purchase of put or call options on futures contracts involves less potential risk for the Fund because the maximum amount at risk is the premium paid for the options plus transaction costs. However, there may be circumstances when the purchase of an option on a futures contract would result in a loss to the Fund while the purchase or sale of the futures contract would not have resulted in a loss, such as when there is no movement in the price of the underlying securities.<br>In addition to other futures contracts and options thereon, the Funds may invest in commodity futures contracts and options thereon. A commodity futures contract is an agreement between two parties, in which one party agrees to buy a commodity, such as an energy, agricultural or metal commodity from the other party at a later date at a price and quantity agreed upon when the contract is made.<br>A Fund will be required to segregate initial margin in the name of the futures broker upon entering into an index future.<br>For additional information about options transactions, see "Options" under "Derivative Investments" in this section of the SAI. |  |
| ***Mortgage-Related and Other Asset-Backed Securities*** | Each Fund may purchase mortgage-related and other asset-backed securities, which collectively are securities backed by mortgages, installment contracts, credit card receivables or other financial assets. Asset-backed securities represent interests in "pools" of assets in which payments of both interest and principal on the securities are made periodically, thus in effect "passing through" such payments made by the individual borrowers on the assets that underlie the securities, net of any fees paid to the issuer or guarantor of the securities. The average life of asset-backed securities varies with the maturities of the underlying instruments, and the average life of a mortgage-backed instrument, in particular, is likely to be less than the original maturity of the mortgage pools underlying the securities as a result of mortgage prepayments, where applicable. For this and other reasons, an asset-backed security's stated maturity may be different, and the security's total return may be difficult to predict precisely.<br>If an asset-backed security is purchased at a premium, a prepayment rate that is faster than expected will reduce yield to maturity, while a prepayment rate that is slower than expected will have the opposite effect of increasing yield to maturity. Conversely, if an asset-backed security is purchased at a discount, faster than expected prepayments will increase yield to maturity, while slower than expected prepayments will decrease yield to maturity.<br>Prepayments of principal of mortgage-related securities by mortgagors or mortgage foreclosures affect the average life of the mortgage-related securities in the Fund's portfolio. Mortgage prepayments are affected by the level of interest rates and other factors, including general economic conditions and the underlying location and age of the mortgage. In periods of rising interest rates, the prepayment rate tends to decrease, lengthening the average life of a pool of mortgage-related securities. The longer the remaining maturity of a security the greater the effect of interest rate changes will be. Changes in the ability of an issuer to make payments of interest and principal and in the market's perception of its creditworthiness also affect the market value of that issuer's debt securities.<br>In periods of falling interest rates, the prepayment rate tends to increase, shortening the average life of a pool. Because prepayments of principal generally occur when interest rates are declining, it is likely that the Fund, to the extent that it retains the same percentage of debt securities, may have to reinvest the proceeds of prepayments at lower interest rates than those of its previous investments. If this occurs, that Fund's yield will correspondingly decline. Thus, mortgage-related securities may have less potential for capital appreciation in periods of falling interest rates than other fixed income securities of comparable duration, although they may have a comparable risk of decline in market value in periods of rising interest rates. To the extent that the Fund purchases mortgage-related securities at a premium, unscheduled prepayments, which are made at par, result in a loss equal to any unamortized premium. |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | Duration is one of the fundamental tools used by a Fund's subadviser in managing interest rate risks including prepayment risks. Traditionally, a debt security's "term to maturity" characterizes a security's sensitivity to changes in interest rates. "Term to maturity," however, measures only the time until a debt security provides its final payment, taking no account of prematurity payments. Most debt securities provide interest ("coupon") payments in addition to a final ("par") payment at maturity, and some securities have call provisions allowing the issuer to repay the instrument in full before maturity date, each of which affect the security's response to interest rate changes. "Duration" therefore is generally considered a more precise measure of interest rate risk than "term to maturity." Determining duration may involve a subadviser's estimates of future economic parameters, which may vary from actual future values. Generally fixed income securities with longer effective durations are more responsive to interest rate fluctuations than those with shorter effective durations. For example, if interest rates rise by 1%, the value of securities having an effective duration of three years will generally decrease by approximately 3%.<br>A Fund may purchase privately issued mortgage-related securities that are originated, packaged and serviced by third party entities. It is possible these third parties could have interests that are in conflict with the holders of mortgage-related securities, and such holders (such as a Fund) could have rights against the third parties or their affiliates. For example, if a loan originator, servicer or its affiliates engaged in negligence or willful misconduct in carrying out its duties, then a holder of the mortgage-related security could seek recourse against the originator/servicer or its affiliates, as applicable. Also, as a loan originator/servicer, the originator/servicer or its affiliates may make certain representations and warranties regarding the quality of the mortgages and properties underlying a mortgage-related security. If one or more of those representations or warranties is false, then the holders of the mortgage-related securities (such as a Fund) could trigger an obligation of the originator/servicer or its affiliates, as applicable, to repurchase the mortgages from the issuing trust. Notwithstanding the foregoing, many of the third parties that are legally bound by trust and other documents have failed to perform their respective duties, as stipulated in such trust and other documents, and investors have had limited success in enforcing terms.<br>Descriptions of some of the different types of mortgage-related and other asset-backed securities most commonly acquired by the Funds are provided below. In addition to those shown, other types of mortgage-related and asset-backed investments are, or may become, available for investment by the Funds. |  |
| *Collateralized Mortgage Obligations ("CMOs")* | CMOs are hybrid instruments with characteristics of both mortgage- backed and mortgage pass-through securities. Interest and prepaid principal on a CMO are paid, in most cases, monthly. CMOs may be collateralized by whole mortgage loans but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by entities such as GNMA, FHLMC, or FNMA, and their income streams.<br>CMOs are typically structured in multiple classes, each bearing a different stated maturity. Actual maturity and average life will depend upon the prepayment experience of the collateral. CMOs provide for a modified form of call protection through a de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to investors holding the shortest maturity class. Investors holding the longer maturity classes typically receive principal only after the first class has been retired. An investor may be partially guarded against a sooner than desired return of principal because of the sequential payments.<br>FHLMC CMOs are debt obligations of FHLMC issued in multiple classes having different maturity dates and are secured by the pledge of a pool of conventional mortgage loans purchased by FHLMC. The amount of principal payable on each monthly payment date is determined in accordance with FHLMC's mandatory sinking fund schedule. Sinking fund payments in the CMOs are allocated to the retirement of the individual classes of bonds in the order of their stated maturities. Payments of principal on the mortgage loans in the collateral pool in excess of the amount of FHLMC's minimum sinking fund obligation for any  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | payment date are paid to the holders of the CMOs as additional sinking-fund payments. Because of the "pass- through" nature of all principal payments received on the collateral pool in excess of FHLMC's minimum sinking fund requirement, the rate at which principal of the CMOs is actually repaid is likely to be such that each class of bonds will be retired in advance of its scheduled maturity date. If collection of principal (including prepayments) on the mortgage loans during any semiannual payment period is not sufficient to meet FHLMC's minimum sinking fund obligation on the next sinking fund payment date, FHLMC agrees to make up the deficiency from its general funds. |  |
| *CMO Residuals* | CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans. As described above, the cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make required payments of principal and interest on the CMOs and second to pay the related administrative expenses of the issuer. The "residual" in a CMO structure generally represents the interest in any excess cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates, the amount of administrative expenses and, in particular, the prepayment experience on the mortgage assets. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are based. In certain circumstances a Fund may fail to recoup fully its initial investment in a CMO residual.<br>CMO residuals are generally purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers. The CMO residual market currently may not have the liquidity of other more established securities trading in other markets. CMO residuals may be subject to certain restrictions on transferability, may be deemed illiquid and therefore subject to the Funds' limitations on investment in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.) |  |
| *Mortgage Pass- through Securities* | Mortgage pass-through securities are interests in pools of mortgage loans, assembled and issued by various governmental, government- related, and private organizations. Unlike other forms of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at maturity or specified call dates, these securities provide a monthly payment consisting of both interest and principal payments. In effect, these payments are a "pass- through" of the monthly payments made by the individual borrowers on their residential or commercial mortgage loans, net of any fees paid to the issuer or guarantor of such securities. Additional payments are caused by repayments of principal resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs. "Modified pass-through" securities (such as securities issued by GNMA) entitle the holder to receive all interest and principal payments owed on the mortgage pool, net of certain fees, at the scheduled payment dates regardless of whether or not the mortgagor actually makes the payment.<br>The principal governmental guarantor of U.S. mortgage-related securities is GNMA. GNMA is authorized to guarantee, with the full faith and credit of the United States Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA (such as savings and loan institutions, commercial banks and mortgage bankers) and backed by pools of Federal Housing Administration insured or Veterans Administration guaranteed mortgages. Government-related guarantors whose obligations are not backed by the full faith and credit of the United States Government include FNMA and FHLMC. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. FHLMC issues Participation Certificates that represent interests in conventional mortgages from FHLMC's national portfolio. FNMA and  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | power to repudiate any contract entered into by FNMA or FHLMC prior to its appointment if it determines that performance of the contract is burdensome and repudiation of the contract promotes the orderly administration of FNMA's or FHLMC's affairs. Furthermore, FHFA has the right to transfer or sell any asset or liability of FNMA or FHLMC without any approval, assignment or consent. If FHFA were to transfer any such guarantee obligation to another party, holders of FNMA or FHLMC mortgage-backed securities would have to rely on that party for satisfaction of the guarantee obligation and would be exposed to the credit risk of that party. |  |
| *Adjustable Rate Mortgage-Backed Securities* | Adjustable rate mortgage-backed securities ("ARMBSs") have interest rates that reset at periodic intervals. Acquiring ARMBSs permits a Fund to participate in increases in prevailing current interest rates through periodic adjustments in the coupons of mortgages underlying the pool on which ARMBSs are based. Such ARMBSs generally have higher current yield and lower price fluctuations than is the case with more traditional fixed income debt securities of comparable rating and maturity. In addition, when prepayments of principal are made on the underlying mortgages during periods of rising interest rates, a Fund can reinvest the proceeds of such prepayments at rates higher than those at which they were previously invested. Mortgages underlying most ARMBSs, however, have limits on the allowable annual or lifetime increases that can be made in the interest rate that the mortgagor pays. Therefore, if current interest rates rise above such limits over the period of the limitation, a Fund holding an ARMBS does not benefit from further increases in interest rates. Moreover, when interest rates are in excess of coupon rates (i.e., the rates being paid by mortgagors) of the mortgages, ARMBSs behave more like fixed income securities and less like adjustable rate securities and are subject to the risks associated with fixed income securities. In addition, during periods of rising interest rates, increases in the coupon rate of adjustable rate mortgages generally lag current market interest rates slightly, thereby creating the potential for capital depreciation on such securities |  |
| *Commercial Mortgage-Backed Securities* | Commercial Mortgage-Backed Securities include securities that reflect an interest in, and are secured by, mortgage loans on commercial real property. The market for commercial mortgage-backed securities developed more recently and in terms of total outstanding principal amount of issues is relatively small compared to the market for residential single- family mortgage-backed securities. Many of the risks of investing in commercial mortgage- backed securities reflect the risks of investing in the real estate securing the underlying mortgage loans. These risks reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make loan payments, and the ability of a property to attract and retain tenants. Commercial mortgage-backed securities may be less liquid and exhibit greater price volatility than other types of mortgage- or asset-backed securities. |  |
| *Other Asset-Backed Securities* | Through trusts and other special purpose entities, various types of securities based on financial assets other than mortgage loans are increasingly available, in both pass-through structures similar to mortgage pass-through securities described above and in other structures more like CMOs. As with mortgage-related securities, these asset-backed securities are often backed by a pool of financial assets representing the obligations of a number of different parties. They often include credit-enhancement features similar to mortgage-related securities.<br>Financial assets on which these securities are based include automobile receivables; credit card receivables; loans to finance boats, recreational vehicles, and mobile homes; computer, copier, railcar, and medical equipment leases; and trade, healthcare, and franchise receivables. In general, the obligations supporting these asset-backed securities are of shorter maturities than mortgage loans and are less likely to experience substantial prepayments. However, obligations such as credit card receivables are generally unsecured and the obligors are often entitled to protection under a number of consumer credit laws granting, among other things, rights to set off certain amounts owed on the credit cards, thus reducing the balance due. Other obligations that are secured, such as automobile receivables, may present issuers with difficulties in perfecting and executing on the security  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | interests, particularly where the issuer allows the servicers of the receivables to retain possession of the underlying obligations, thus increasing the risk that recoveries on defaulted obligations may not be adequate to support payments on the securities. |  |
| *Stripped Mortgage- backed Securities ("SMBS")* | SMBS are derivative multi-class mortgage securities. They may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions on a pool of mortgage assets. A common type of SMBS will have one class receiving some of the interest and most of the principal from the mortgage assets, while the other class will receive most of the interest and the remainder of the principal. In the most extreme case, one class will receive all of the interest (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). The yield to maturity on an IO class security is extremely sensitive to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on a Fund's yield to maturity from these securities. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to recoup fully its initial investment in these securities even if the security is in one of the highest rating categories. The market value of the PO class generally is unusually volatile in response to changes in interest rates.<br>Although SMBS are purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers, these securities were only recently developed. As a result, established trading markets have not yet developed and, accordingly, these securities may be deemed illiquid and therefore subject to the Funds' limitations on investment in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.)<br>Each Fund may invest in other mortgage-related securities with features similar to those described above, to the extent consistent with the relevant Fund's investment objectives and policies. |  |
| ***Options*** | Each Fund may purchase or sell put and call options on securities, indices and other financial instruments. Options may relate to particular securities, foreign and domestic securities indices, financial instruments, volatility, credit default, foreign currencies or the yield differential between two securities. Such options may or may not be listed on a domestic or foreign securities exchange and may or may not be issued by the OCC.<br>A call option for a particular security gives the purchaser of the option the right to buy, and a writer the obligation to sell, the underlying security at the stated exercise price before the expiration of the option, regardless of the market price of the security. A premium is paid to the writer by the purchaser in consideration for undertaking the obligation under the option contract. A put option for a particular security gives the purchaser the right to sell and a writer the obligation to buy the security at the stated exercise price before the expiration date of the option, regardless of the market price of the security.<br>If the only derivatives in which a Fund invests are covered options, options written by a Fund will be covered and will remain covered as long as the Fund is obligated as a writer. A call option is "covered" if the Fund owns the underlying security or its equivalent covered by the call or has an absolute and immediate right to acquire that security without additional cash consideration (or for additional cash consideration if such cash is segregated) upon conversion or exchange of other securities held in its portfolio. A call option is also covered if the Fund holds on a share-for-share or equal principal amount basis a call on the same security as the call written where the exercise price of the call held is equal to or less than the exercise price of the call written or greater than the exercise price of the call written if appropriate liquid assets representing the difference are segregated by the Fund. A put option is "covered" if the Fund maintains appropriate liquid securities with a value equal to the exercise price, or owns on a share-for-share or equal principal amount basis a put on the same security as the put written where the exercise price of the put held is equal to or greater  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | than the exercise price of the put written.<br>A Fund's obligation to sell an instrument subject to a covered call option written by it, or to purchase an instrument subject to a secured put option written by it, may be terminated before the expiration of the option by the Fund's execution of a closing purchase transaction. This means that a Fund buys an option of the same series (i.e., same underlying instrument, exercise price and expiration date) as the option previously written. Such a purchase does not result in the ownership of an option. A closing purchase transaction will ordinarily be effected to realize a profit on an outstanding option, to prevent an underlying instrument from being called, to permit the sale of the underlying instrument or to permit the writing of a new option containing different terms on such underlying instrument. The cost of such a closing purchase plus related transaction costs may be greater than the premium received upon the original option, in which event the Fund will experience a loss. There is no assurance that a liquid secondary market will exist for any particular option. A Fund that has written an option and is unable to effect a closing purchase transaction will not be able to sell the underlying instrument (in the case of a covered call option) or liquidate the segregated assets (in the case of a secured put option) until the option expires or the optioned instrument is delivered upon exercise. The Fund will be subject to the risk of market decline or appreciation in the instrument during such period.<br>Options purchased are recorded as an asset and written options are recorded as liabilities to the extent of premiums paid or received. The amount of this asset or liability will be subsequently marked-to-market to reflect the current value of the option purchased or written. The current value of the traded option is the last sale price or, in the absence of a sale, the current bid price. If an option purchased by a Fund expires unexercised, the Fund will realize a loss equal to the premium paid. If a Fund enters into a closing sale transaction on an option purchased by it, the Fund will realize a gain if the premium received by the Fund on the closing transaction is more than the premium paid to purchase the option, or a loss if it is less. If an option written by a Fund expires on the stipulated expiration date or if a Fund enters into a closing purchase transaction, it will realize a gain (or loss if the cost of a closing purchase transaction exceeds the net premium received when the option is sold), and the liability related to such option will be eliminated. If an option written by a Fund is exercised, the proceeds of the sale will be increased by the net premium originally received and the Fund will realize a gain or loss.<br>Options trading is a highly specialized activity that entails more complex and potentially greater than ordinary investment risk. Options may be more volatile than the underlying instruments and, therefore, on a percentage basis, an investment in options may be subject to greater fluctuation than an investment in the underlying instruments themselves.<br>There are several other risks associated with options. For example, there are significant differences among the securities, currency, volatility, credit default and options markets that could result in an imperfect correlation among these markets, causing a given transaction not to achieve its objectives. In addition, a liquid secondary market for particular options, whether traded over-the- counter or on an exchange, may be absent for reasons that include the following: there may be insufficient trading interest in certain options; restrictions may be imposed by an exchange on opening transactions or closing transactions or both; trading halts, suspensions or other restrictions may be imposed with respect to particular classes or series of options or underlying securities or currencies; unusual or unforeseen circumstances may interrupt normal operations on an exchange; the facilities of an exchange or the OCC may not at all times be adequate to handle current trading value; or one or more exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the trading of options (or a particular class or series of options), in which event the secondary market on that exchange (or in that class or series of options) would cease to exist, although outstanding options that had been issued by the OCC as a result of trades on that exchange would continue to be exercisable in accordance with their terms.<br>The staff of the SEC currently takes the position that options not traded on registered domestic securities exchanges and the assets used to cover the amount of the Fund's  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | obligation pursuant to such options are illiquid, and are therefore subject to each Fund's limitation on investments in illiquid securities. However, for options written with "primary dealers" in U.S. Government securities pursuant to an agreement requiring a closing transaction at the formula price, the amount considered to be illiquid may be calculated by reference to a formula price. (See "Illiquid and Restricted Securities" in this section of the SAI.) |  |
| *Options on Indexes and "Yield Curve" Options* | Each Fund may enter into options on indexes or options on the "spread," or yield differential, between two fixed income securities, in transactions referred to as "yield curve" options. Options on indexes and yield curve options provide the holder with the right to make or receive a cash settlement upon exercise of the option. With respect to options on indexes, the amount of the settlement will equal the difference between the closing price of the index at the time of exercise and the exercise price of the option expressed in dollars, times a specified multiple. With respect to yield curve options, the amount of the settlement will equal the difference between the yields of designated securities.<br>With respect to yield curve options, a call or put option is covered if a Fund holds another call or put, respectively, on the spread between the same two securities and maintains in a segregated account liquid assets sufficient to cover the Fund's net liability under the two options. Therefore, the Fund's liability for such a covered option is generally limited to the difference between the amount of the Fund's liability under the option it wrote less the value of the option it holds. A Fund may also cover yield curve options in such other manner as may be in accordance with the requirements of the counterparty with which the option is traded and applicable laws and regulations.<br>The trading of these types of options is subject to all of the risks associated with the trading of other types of options. In addition, however, yield curve options present risk of loss even if the yield of one of the underlying securities remains constant, if the spread moves in a direction or to an extent which was not anticipated. |  |
| *Reset Options* | In certain instances, a Fund may purchase or write options on U.S. Treasury securities, which provide for periodic adjustment of the strike price and may also provide for the periodic adjustment of the premium during the term of each such option. Like other types of options, these transactions, which may be referred to as "reset" options or "adjustable strike" options grant the purchaser the right to purchase (in the case of a call) or sell (in the case of a put), a specified type of U.S. Treasury security at any time up to a stated expiration date (or, in certain instances, on such date). In contrast to other types of options, however, the price at which the underlying security may be purchased or sold under a "reset" option is determined at various intervals during the term of the option, and such price fluctuates from interval to interval based on changes in the market value of the underlying security. As a result, the strike price of a "reset" option, at the time of exercise, may be less advantageous than if the strike price had been fixed at the initiation of the option. In addition, the premium paid for the purchase of the option may be determined at the termination, rather than the initiation, of the option. If the premium for a reset option written by a Fund is paid at termination, the Fund assumes the risk that (i) the premium may be less than the premium which would otherwise have been received at the initiation of the option because of such factors as the volatility in yield of the underlying Treasury security over the term of the option and adjustments made to the strike price of the option, and (ii) the option purchaser may default on its obligation to pay the premium at the termination of the option. Conversely, where a Fund purchases a reset option, it could be required to pay a higher premium than would have been the case at the initiation of the option. |  |
| ***OTC Options*** | The Funds may also purchase and write over-the-counter ("OTC") options. OTC options differ from traded options in that they are two-party contracts, with price and other terms negotiated between buyer and seller, and generally do not have as much market liquidity as exchange-traded options. The Funds may be required to treat as illiquid OTC options purchased and securities being used to cover certain written OTC options, and they will treat the amount by which such formula price exceeds the intrinsic value of the option (i.e., the  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | amount, if any, by which the market price of the underlying security exceeds the exercise price of the option) as an illiquid investment. The Funds may also purchase and write so-called dealer options. Participants in OTC options markets typically are not subject to the same level of credit evaluation and regulatory oversight as are members of exchange-based markets and therefore OTC derivatives generally expose a Fund to greater counterparty risk than exchange-traded derivatives. |  |
| ***Swaptions*** | A Fund may enter into swaption contracts, which give the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. Over-the-counter swaptions, although providing greater flexibility, may involve greater credit risk than exchange-traded options as they are not backed by the clearing organization of the exchanges where they are traded, and as such, there is a risk that the seller will not settle as agreed. A Fund's financial liability associated with swaptions is linked to the marked-to- market value of the notional underlying investments. Purchased swaption contracts are exposed to a maximum loss equal to the price paid for the option/swaption (the premium) and no further liability. Written swaptions, however, give the right of potential exercise to a third party, and the maximum loss to the Fund in the case of an uncovered swaption is unlimited. |  |
| ***Swap Agreements*** | Each Fund may enter into swap agreements on, among other things, interest rates, indices, securities and currency exchange rates. A Fund's subadviser may use swaps in an attempt to obtain for the Fund a particular desired return at a lower cost to the Fund than if the Fund had invested directly in an instrument that yielded that desired return. Swap agreements are two-party contracts entered into primarily by institutional investors for periods typically ranging from a few weeks to more than one year. In a standard "swap" transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or "swapped" between the parties are calculated with respect to a "notional amount," i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a "basket" of securities representing a particular index. The "notional amount" of the swap agreement is only a fictive basis on which to calculate the obligations the parties to a swap agreement have agreed to exchange. A Fund's obligations (or rights) under a swap agreement will generally be equal only to the amount to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the "net amount"). A Fund may pay fees or incur other costs each time it enters into, modifies, or terminates a swap agreement.<br>Because swap agreements are two-party contracts and may have terms of greater than seven days, they may be considered to be illiquid and therefore subject to the Funds' limitations on investment in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.) Moreover, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. A Fund's subadviser will cause the Fund to enter into swap agreements only with counterparties that would be eligible for consideration as repurchase agreement counterparties under the Funds' repurchase agreement guidelines. (See "Repurchase Agreements" in this section of the SAI.) Certain restrictions imposed on the Funds by the Code may limit the Funds' ability to use swap agreements. (See the "Dividends, Distributions and Taxes" section of this SAI.) The swaps market is a relatively new market and is largely unregulated. It is possible that developments in the swaps market, including potential government regulation, could adversely affect a Fund's ability to terminate existing swap agreements or to realize amounts to be received under such agreements.<br>Certain swap agreements are exempt from most provisions of the CEA and, therefore, are not regulated as futures or commodity option transactions under the CEA, pursuant to regulations of the CFTC. To qualify for this exemption, a swap agreement must be entered into by eligible participants and must meet certain conditions (each pursuant to the CEA and regulations of the CFTC). However, CFTC rule amendments dictate that certain swap agreements be considered commodity interests for purposes of the CEA. (See "Commodity  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | Interests" in this section of the SAI for additional information regarding the implications of investments being considered commodity interests under the CEA.)<br>The SEC and the CFTC have developed rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act to create a comprehensive regulatory framework for swap transactions. Under the regulations, certain swap transactions will be required to be executed on a regulated trading platform and cleared through a derivatives clearing organization. Additionally, the regulations impose other requirements on the parties entering into swap transactions, including requirements relating to posting margin, and reporting and documenting swap transactions. A Fund engaging in swap transactions may incur additional expenses as a result of these regulatory requirements. The Adviser is continuing to monitor the implementation of these regulations and to assess their impact on the Funds. |  |
| *Credit Default Swap Agreements* | Each Fund may enter into credit default swap agreements. A credit default swap is a bilateral financial contract in which one party (the protection buyer) pays a periodic fee in return for a contingent payment by the protection seller following a credit event of a reference issuer. The protection buyer must either sell particular obligations issued by the reference issuer for its par value (or some other designated reference or strike price) when a credit event occurs or receive a cash settlement based on the difference between the market price and such reference price. A credit event is commonly defined as bankruptcy, insolvency, receivership, material adverse restructuring of debt, or failure to meet payment obligations when due. A Fund may be either the buyer or seller in the transaction. If a Fund is a buyer and no event of default occurs, the Fund loses its investment and recovers nothing; however, if an event of default occurs, the Fund receives full notional value for a reference obligation that may have little or no value. As a seller, a Fund receives a periodic fee throughout the term of the contract, provided there is no default event; if an event of default occurs, the Fund must pay the buyer the full notional value of the reference obligation. The value of the reference obligation received by the Fund as a seller, coupled with the periodic payments previously received, may be less than the full notional value the Fund pays to the buyer, resulting in a loss of value to the Fund.<br>Credit default swaps involve greater risks than if the Fund had invested in the reference obligation directly. In addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risks. A Fund will enter into swap agreements only with counterparties deemed creditworthy by the Fund's subadviser. |  |
| *Dividend Swap Agreements* | A dividend swap agreement is a financial instrument where two parties contract to exchange a set of future cash flows at set dates in the future. One party agrees to pay the other the future dividend flow on a stock or basket of stocks in an index, in return for which the other party gives the first call options. Dividend swaps generally are traded over the counter rather than on an exchange. |  |
| *Inflation Swap Agreements* | Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (e.g., the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), while the other pays a compounded fixed rate. Inflation swap agreements may be used by a Fund to hedge the inflation risk associated with non-inflation indexed investments, thereby creating "synthetic" inflation-indexed investments. One factor that may lead to changes in the values of inflation swap agreements is a change in real interest rates, which are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, which may lead to a decrease in value of an inflation swap agreement. |  |
| *Total Return Swap Agreements* | "Total return swap" is the generic name for any non-traditional swap where one party agrees to pay the other the "total return" of a defined underlying asset, usually in return for receiving a stream of cash flows based upon an agreed rate. A total return swap may be applied to any underlying asset but is most commonly used with equity indices, single stocks, bonds and defined portfolios of loans and mortgages. A total return swap is a  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | mechanism for the user to accept the economic benefits of asset ownership without utilizing the balance sheet. The other leg of the swap, which is often LIBOR or SOFR, is spread to reflect the non-balance sheet nature of the product. Total return swaps can be designed with any underlying asset agreed between the two parties. No notional amounts are exchanged with total return swaps. |  |
| *Variance and Correlation Swap Agreements* | Variance swap agreements are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on an underlying asset or index. "Actual variance" as used here is defined as the sum of the square of the returns on the reference asset or index (which in effect is a measure of its "volatility") over the length of the contract term. In other words, the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility. Correlation swap agreements are contracts in which two parties agree to exchange cash payments based on the differences between the stated and the actual correlation realized on the underlying equity securities within a given equity index. "Correlation" as used here is defined as the weighted average of the correlations between the daily returns of each pair of securities within a given equity index. If two assets are said to be closely correlated, it means that their daily returns vary in similar proportions or along similar trajectories. A Fund may enter into variance or correlation swaps in an attempt to hedge equity market risk or adjust exposure to the equity markets. |  |
| **Equity Securities** | The Funds may invest in equity securities. Equity securities include common stocks, preferred stocks and preference stocks; securities such as bonds, warrants or rights that are convertible into stocks; and depositary receipts for those securities.<br>Common stockholders are the owners of the company issuing the stock and, accordingly, usually have the right to vote on various corporate governance matters such as mergers. They are not creditors of the company, but rather, in the event of liquidation of the company, would be entitled to their pro rata shares of the company's assets after creditors (including fixed income security holders) and, if applicable, preferred stockholders are paid. Outside of the United States, preferred stock may carry different rights or obligations. In some jurisdictions, preferred stocks may have different voting rights and there may be more robust trading markets and liquidity in preferred stock than the common or ordinary stock of the company. Preferred stock is a class of stock having a preference over common stock as to dividends or upon liquidation. A preferred stockholder is a shareholder in the company and not a creditor of the company as is a holder of the company's fixed income securities. Dividends paid to common and preferred stockholders are distributions of the earnings or other surplus of the company and not interest payments, which are expenses of the company. Equity securities owned by the Fund may be traded in the over-the-counter market or on a securities exchange and may not be traded every day or in the volume typical of securities traded on a major U.S. national securities exchange. As a result, disposition by the Fund of a portfolio security to meet redemptions by shareholders or otherwise may require the Fund to sell the security at less than the reported value of the security, to sell during periods when disposition is not desirable, or to make many small sales over a lengthy period of time. The market value of all securities, including equity securities, is based upon the market's perception of value and not necessarily the book value of an issuer or other objective measure of a company's worth.<br>Stock values may fluctuate in response to the activities of an individual company or in response to general market and/or economic conditions. Historically, common stocks have provided greater long- term returns and have entailed greater short-term risks than other types of securities. Smaller or newer issuers may be more likely to realize more substantial growth or suffer more significant losses. Investments in these companies can be both more volatile and more speculative. Fluctuations in the value of equity securities in which a Fund invests will cause the NAV of the Fund to fluctuate. |  |
| ***Initial Public***  | A Fund may invest in a company's securities at the time of a company's initial public offering ("IPO"). Companies involved in IPOs are often smaller and have a limited operating history,  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| ***Offerings*** | which involves a greater risk that the value of their securities will be impaired following the IPO. In addition, market psychology prevailing at the time of an IPO can have a substantial and unpredictable effect on the price of an IPO security, causing the price of a company's securities to be particularly volatile at the time of its IPO and for a period thereafter. As a result, a Fund's Adviser or subadviser might decide to sell an IPO security more quickly than it would otherwise, which may result in significant gains or losses to the Fund. |  |
| ***Securities of Small and Mid Capitalization Companies*** | While small and medium-sized issuers in which a Fund invests may offer greater opportunities for capital appreciation than larger market capitalization issuers, investments in such companies may involve greater risks and thus may be considered speculative. For example, smaller companies may have limited product lines, markets or financial resources, or they may be dependent on a limited management group. In addition, many small and mid-capitalization company stocks trade less frequently and in smaller volume, and may be subject to more abrupt or erratic price movements, than stocks of larger companies. The securities of small and mid-capitalization companies may also be more sensitive to market changes than the securities of larger companies. When a Fund invests in small or mid- capitalization companies, these factors may result in above-average fluctuations in the NAV of the Fund's shares. Therefore, a Fund investing in such securities should be considered as a long-term investment and not as a vehicle for seeking short-term profits. Similarly, an investment in a Fund solely investing in such securities should not be considered a complete investment program.<br>Market capitalizations of companies in which the Funds invest are determined at the time of purchase. |  |
| ***Unseasoned Companies*** | As a matter of operating policy, each Fund may invest to a limited extent in securities of unseasoned companies and new issues. A Fund's subadviser regards a company as unseasoned when, for example, it is relatively new to, or not yet well established in, its primary line of business. Such companies generally are smaller and younger than companies whose shares are traded on the major stock exchanges. Accordingly, their shares are often traded over-the- counter and their share prices may be more volatile than those of larger, exchange-listed companies. Generally a Fund will not invest more than 5% of its total assets in securities of any one company with a record of fewer than three years' continuous operation (including that of predecessors). |  |
| **Foreign Investing** | The Funds may invest in a broad range of securities of foreign issuers, including equity, debt and convertible securities and foreign government securities. The Funds may purchase the securities of issuers from various countries, including countries commonly referred to as "emerging markets" or "frontier markets." The Funds may also invest in domestic securities denominated in foreign currencies. Factors that may be considered when assessing compliance with investment policies that designate a minimum or maximum level of investment in non-U.S. securities include, but are not limited to, whether such securities are securities of companies that are organized and headquartered outside the U.S. (including securities traded in local currencies); non-U.S. equity securities as designated by commonly-recognized market data services; U.S. dollar- or non-U.S. currency-denominated corporate debt securities of non-U.S. issuers; securities of U.S. issuers traded principally in non-U.S. markets; non-U.S. bank obligations; U.S. dollar- or non-U.S. currency-denominated obligations of non-U.S. governments or their subdivisions, agencies and instrumentalities, international agencies and supranational entities; and securities of other investment companies investing primarily in non-U.S. securities.<br>Investing in the securities of foreign companies involves special risks and considerations not typically associated with investing in U.S. companies. These include differences in accounting, auditing and financial reporting standards, generally higher commission rates on foreign portfolio transactions, the possibility of expropriation or confiscatory taxation, adverse changes in investment or exchange control regulations, political instability which could affect U.S. investments in foreign countries, and potential restrictions on the flow of international capital. Foreign issuers may become subject to sanctions imposed by the  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | United States or another country, which could result in the immediate freeze of the foreign issuers' assets or securities. The imposition of such sanctions could impair the market value of the securities of such foreign issuers and limit a Fund's ability to buy, sell, receive or deliver the securities. Additionally, dividends payable on foreign securities may be subject to foreign taxes withheld prior to distribution. Foreign securities often trade with less frequency and volume than domestic securities and therefore may exhibit greater price volatility. Changes in foreign exchange rates will affect the value of those securities which are denominated or quoted in currencies other than the U.S. dollar. Many of the foreign securities held by a Fund will not be registered with, nor will the issuers thereof be subject to the reporting requirements of, the SEC. Accordingly, there may be less publicly available information about the securities and about the foreign company or government issuing them than is available about a domestic company or government entity. Moreover, individual foreign economies may differ favorably or unfavorably from the United States economy in such respects as growth of Gross National Product, rate of inflation, capital reinvestment, resource self- sufficiency and balance of payment positions. Finally, the Funds may encounter difficulty in obtaining and enforcing judgments against issuers of foreign securities.<br>Securities of U.S. issuers denominated in foreign currencies may be less liquid and their prices more volatile than securities issued by domestic issuers and denominated in U.S. dollars. In addition, investing in securities denominated in foreign currencies often entails costs not associated with investment in U.S. dollar-denominated securities of U.S. issuers, such as the cost of converting foreign currency to U.S. dollars, higher brokerage commissions, custodial expenses and other fees. Non-U.S. dollar denominated securities may be subject to certain withholding and other taxes of the relevant jurisdiction, which may reduce the yield on the securities to the Funds and which may not be recoverable by the Funds or their investors.<br>The Trust may use an eligible foreign custodian in connection with its purchases of foreign securities and may maintain cash and cash equivalents in the care of a foreign custodian. The amount of cash or cash equivalents maintained in the care of eligible foreign custodians will be limited to an amount reasonably necessary to effect the Trust's foreign securities transactions. The use of a foreign custodian invokes considerations which are not ordinarily associated with domestic custodians. These considerations include the possibility of expropriations, restricted access to books and records of the foreign custodian, inability to recover assets that are lost while under the control of the foreign custodian, and the impact of political, social or diplomatic developments.<br>Settlement procedures relating to the Funds' investments in foreign securities and to the Funds' foreign currency exchange transactions may be more complex than settlements with respect to investments in debt or equity securities of U.S. issuers, and may involve certain risks not present in the Funds' domestic investments. For example, settlement of transactions involving foreign securities or foreign currency may occur within a foreign country, and a Fund may be required to accept or make delivery of the underlying securities or currency in conformity with any applicable U.S. or foreign restrictions or regulations, and may be required to pay any fees, taxes or charges associated with such delivery. Such investments may also involve the risk that an entity involved in the settlement may not meet its obligations. Settlement procedures in many foreign countries are less established than those in the United States, and some foreign country settlement periods can be significantly longer than those in the United States.<br>A Fund that has significant exposure to certain countries can be expected to be impacted by the political (including geopolitical) and economic conditions within such countries. There is continuing uncertainty around the future of the euro and the European Union (EU) following the United Kingdom's vote to exit the EU in June 2016. In March 2017, the United Kingdom invoked a treaty provision that sets out the basics of a withdrawal from the EU and provides that negotiations must be completed within two years, unless all EU member states agree on an extension. The United Kingdom left the EU on January 31, 2020, followed by a transition  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | period during which businesses and others prepared for the new post-Brexit rules that took effect on January 1, 2021. While a limited deal was reached prior to December 31, 2020, many aspects are still to be determined, including those related to financial services. Significant uncertainty remains in the market regarding the ramifications of the withdrawal of the United Kingdom from the European Union, and the range and potential implications of possible political, regulatory, economic and market outcomes are difficult to predict. Continuing Brexit issues and negotiations may cause greater market volatility and illiquidity, currency fluctuations, deterioration in economic activity, a decrease in business confidence, and increased likelihood of a recession in the United Kingdom. While it is not possible to determine the precise impact these events may have on the Fund, during this period and beyond, the impact on the United Kingdom, EU countries, other countries or parties that transact with the United Kingdom and EU, and the broader global economy could be significant and could adversely affect the value and liquidity of the Fund's investments. In addition, if one or more countries were to exit the EU or abandon the use of the euro as a currency, the value of investments tied to those countries or the euro could decline significantly and unpredictably.<br>A Fund's investments in foreign currency-denominated debt obligations and hedging activities will likely produce a difference between its book income and its taxable income. This difference could cause a portion of the Fund's income distributions to constitute returns of capital for tax purposes or require the Fund to make distributions exceeding book income to qualify for treatment as a regulated investment company for U.S. federal tax purposes. A Fund's use of non-U.S. securities may increase or accelerate the amount of ordinary income recognized by taxable shareholders. |  |
| ***Depositary Receipts*** | A Fund permitted to hold foreign securities may also hold ADRs, ADSs, GDRs and EDRs. ADRs and ADSs typically are issued by an American bank or trust company and evidence ownership of underlying securities issued by a foreign corporation. EDRs, which are sometimes referred to as CDRs, are issued in Europe typically by foreign banks and trust companies and evidence ownership of either foreign or domestic securities. GDRs are similar to EDRs and are designed for use in several international financial markets. Generally, ADRs and ADSs in registered form are designed for use in United States securities markets and EDRs in bearer form are designed for use in European securities markets. For purposes of a Fund's investment policies, its investments in ADRs, ADSs, GDRs and EDRs will be deemed to be investments in the underlying foreign securities.<br>Depositary Receipts may be issued pursuant to sponsored or unsponsored programs. In sponsored programs, an issuer has made arrangements to have its securities traded in the form of Depositary Receipts. In unsponsored programs, the issuer may not be directly involved in the creation of the program. Although regulatory requirements with respect to sponsored and unsponsored programs are generally similar, in some cases it may be easier to obtain financial information from an issuer that has participated in the creation of a sponsored program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between such information and the market value of the Depositary Receipts. For purposes of a Fund's investment policies, investments in Depositary Receipts will be deemed to be investments in the underlying securities. Thus, a Depositary Receipt representing ownership of common stock will be treated as common stock.<br>Depositary Receipts are generally subject to the same sort of risks as direct investments in a foreign country, such as currency risk, political and economic risk, and market risk, because their values generally depend on the performance of a foreign security denominated in its home currency. (The risks of foreign investing are addressed above in this section of the SAI under the heading "Foreign Investing.") In addition to risks associated with the underlying portfolio of securities, receipt holders also must consider credit standings of the custodians and broker/dealer sponsors. In addition, the issuers of Depositary Receipts may discontinue issuing new Depositary Receipts and withdraw existing Depositary Receipts at any time, which may result in costs and delays in the distribution of the underlying assets to the Fund  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | and may negatively impact the Fund's performance. The receipts are not registered with the SEC and qualify as Rule 144A securities which may make them more difficult and costly to sell. (For information about Rule 144A securities, see "Illiquid and Restricted Securities" in this section of the SAI.) |  |
| ***Emerging Market Securities*** | The Funds may invest in countries or regions with relatively low gross national product per capita compared to the world's major economies, and in countries or regions with the potential for rapid economic growth (emerging markets). Emerging markets will include any country: (i) having an "emerging stock market" as defined by the International Finance Corporation; (ii) with low-to-middle-income economies according to the World Bank; (iii) listed in World Bank publications as developing; or (iv) determined by the subadviser to be an emerging market as defined above.<br>Certain emerging market countries are either comparatively underdeveloped or are in the process of becoming developed and may consequently be economically dependent on a relatively few or closely interdependent industries. A high proportion of the securities of many emerging market issuers may also be held by a limited number of large investors trading significant blocks of securities. While a Fund's subadviser will strive to be sensitive to publicized reversals of economic conditions, political unrest and adverse changes in trading status, unanticipated political and social developments may affect the values of the Fund's investments in such countries and the availability of additional investments in such countries.<br>The Funds may invest in some emerging markets through trading structures or protocols that subject them to risks such as those associated with illiquidity, custodying assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets. Securities of many issuers in emerging markets may be less liquid and more volatile than securities of comparable domestic issuers. Emerging markets also have different clearance and settlement procedures, and in certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Delays in settlement could result in temporary periods when a portion of the assets of a Fund is uninvested and no return is earned thereon. The inability of a Fund to make intended security purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of portfolio securities due to settlement problems could result either in losses to the Fund due to subsequent declines in value of portfolio securities or, if a Fund has entered into a contract to sell the security, in possible liability to the purchaser. Securities prices in emerging markets can be significantly more volatile than in the more developed nations of the world, reflecting the greater uncertainties of investing in less established markets and economies. In particular, countries with emerging markets may have relatively unstable governments, present the risk of nationalization of businesses, restrictions on foreign ownership, or prohibitions of repatriation of assets, and may have less protection of property rights than more developed countries.<br>Certain emerging markets may require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, a country could impose temporary restrictions on foreign capital remittances, whether because deterioration occurs in an emerging market's balance of payments or for other reasons. The Funds could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the application to the Funds of any restrictions on investments.<br>Investments in certain foreign emerging market debt obligations may be restricted or controlled to varying degrees. These restrictions or controls may at times preclude investment in certain foreign emerging market debt obligations and increase the expenses of the Funds. |  |
| ***Foreign Currency***  | Funds that invest directly in foreign (non-U.S.) currencies, or in securities that trade in, or receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| ***Transactions*** | currencies are subject to the additional risk of currency fluctuations. In the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or non-U.S. governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad.<br>An adverse change in the value of a particular foreign currency as against the U.S. dollar, to the extent that such change is not offset by a gain in other foreign currencies, will result in a decrease in the Fund's assets. Any such change may also have the effect of decreasing or limiting the income available for distribution. Foreign currencies may be affected by revaluation, adverse political and economic developments, and governmental restrictions. Further, no assurance can be given that currency exchange controls will not be imposed on any particular currency at a later date.<br>As a result of its investments in foreign securities, a Fund may receive interest or dividend payments, or the proceeds of the sale or redemption of such securities, in the foreign currencies in which such securities are denominated. In that event, the Fund may convert such currencies into dollars at the then current exchange rate. Under certain circumstances, however, such as where the Fund's subadviser believes that the applicable rate is unfavorable at the time the currencies are received or the Fund's subadviser anticipates, for any other reason, that the exchange rate will improve, the Fund may hold such currencies for an indefinite period of time.<br>In addition, a Fund may be required to receive delivery of the foreign currency underlying forward foreign currency contracts it has entered into. This could occur, for example, if an option written by the Fund is exercised or the Fund is unable to close out a forward contract. A Fund may hold foreign currency in anticipation of purchasing foreign securities.<br>A Fund may also elect to take delivery of the currencies' underlying options or forward contracts if, in the judgment of the Fund's subadviser, it is in the best interest of the Fund to do so. In such instances as well, the Fund may convert the foreign currencies to dollars at the then current exchange rate, or may hold such currencies for an indefinite period of time.<br>While the holding of currencies will permit a Fund to take advantage of favorable movements in the applicable exchange rate, it also exposes the Fund to risk of loss if such rates move in a direction adverse to the Fund's position. Such losses could reduce any profits or increase any losses sustained by the Fund from the sale or redemption of securities, and could reduce the dollar value of interest or dividend payments received. In addition, the holding of currencies could adversely affect the Fund's profit or loss on currency options or forward contracts, as well as its hedging strategies.<br>When a Fund effects foreign currency exchange transactions on a spot (i.e., cash) basis at the spot rate prevailing in the foreign exchange market, the Fund incurs expenses in converting assets from one currency to another. A Fund may also effect other types of foreign currency exchange transactions, which have their own risks and costs. For information about such transactions, please see "Foreign Currency Forward Contracts, Futures and Options" under "Derivatives" in this section of the SAI. |  |
| ***Foreign Investment Companies*** | Some of the countries in which the Funds may invest may not permit, or may place economic restrictions on, direct investment by outside investors. Investments in such countries may be permitted only through foreign government-approved or - authorized investment vehicles, which may include other investment companies. These Funds may also invest in other investment companies that invest in foreign securities. Investing through such vehicles may involve frequent or layered fees or expenses and may also be subject to limitation under the 1940 Act. As a shareholder of another investment company, the Fund would bear, along with other shareholders, its pro rata portion of the other investment company's expenses, including advisory fees. Those expenses would be in addition to the advisory and other expenses that the Fund bears directly in connection with its own operations. For additional  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | information, see "Mutual Fund Investing" in this section of the SAI. |  |
| ***Privatizations*** | The governments of some foreign countries have been engaged in programs of selling part or all of their stakes in government owned or controlled enterprises ("privatizations"). Privatizations may offer opportunities for significant capital appreciation. In certain foreign countries, the ability of foreign entities such as the Funds to participate in privatizations may be limited by local law, or the terms on which a Fund may be permitted to participate may be less advantageous than those for local investors. There can be no assurance that foreign governments will continue to sell companies currently owned or controlled by them or that privatization programs will be successful. |  |
| **Funding Agreements** | Each Fund may invest in funding agreements, which are insurance contracts between an investor and the issuing insurance company. For the issuer, they represent senior obligations under an insurance product. For the investor, and from a regulatory perspective, these agreements are treated as securities. These agreements, like other insurance products, are backed by claims on the general assets of the issuing entity and rank on the same priority level as other policy holder claims. Funding agreements typically are issued with a one-year final maturity and a variable interest rate, which may adjust weekly, monthly, or quarterly. Some agreements carry a seven-day put feature. A funding agreement without this feature is considered illiquid and will therefore be subject to the Funds' limitations on investments in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.) Funding agreements are regulated by the state insurance board of the state where they are executed. |  |
| **Guaranteed Investment Contracts** | Each Fund may invest in GICs issued by U.S. and Canadian insurance companies. A GIC requires the investor to make cash contributions to a deposit fund of an insurance company's general account. The insurance company then makes payments to the investor based on negotiated, floating or fixed interest rates. A GIC is a general obligation of the issuing insurance company and not a separate account. The purchase price paid for a GIC becomes part of the general assets of the insurance company, and the contract is paid from the insurance company's general assets. Generally, a GIC is not assignable or transferable without the permission of the issuing insurance company, and an active secondary market in GICs does not currently exist. Therefore, these investments may be deemed to be illiquid, in which case they will be subject to the Funds' limitations on investments in illiquid securities. (See "Illiquid and Restricted Securities" in this section of the SAI.) |  |
| **Hybrid Instruments** | The Funds may invest in "hybrid" or indexed securities. A hybrid instrument is a type of potentially high-risk derivative that combines a traditional stock, bond, or commodity with an option or forward contract. Generally, the principal amount, amount payable upon maturity or redemption, or interest rate of a hybrid is tied (positively or negatively) to the price of some commodity, currency or securities index or another interest rate or some other economic factor (each a "benchmark"). The interest rate or (unlike most fixed income securities) the principal amount payable at maturity of a hybrid security may be increased or decreased, depending on changes in the value of the benchmark. An example of a hybrid could be a bond issued by an oil company that pays a small base level of interest with additional interest that accrues in correlation to the extent to which oil prices exceed a certain predetermined level. Such a hybrid instrument would be a combination of a bond and a call option on oil.<br>Hybrids can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, duration management and increased total return. Hybrids may not bear interest or pay dividends. The value of a hybrid or its interest rate may be a multiple of a benchmark and, as a result, may be leveraged and move (up or down) more steeply and rapidly than the benchmark. These benchmarks may be sensitive to economic and political events, such as commodity shortages and currency devaluations, which cannot be readily foreseen by the purchaser of a hybrid. Under certain conditions, the redemption value of a hybrid could be zero. Thus, an investment in a hybrid may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar-denominated bond  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | that has a fixed principal amount and pays a fixed rate or floating rate of interest. The purchase of hybrids also exposes a Fund to the credit risk of the issuer of the hybrids. These risks may cause significant fluctuations in the net asset value of a Fund.<br>Certain hybrid instruments may provide exposure to the commodities markets. These are derivative securities with one or more commodity-linked components that have payment features similar to commodity futures contracts, commodity options, or similar instruments. Commodity-linked hybrid instruments may be either equity or debt securities, and are considered hybrid instruments because they have both security and commodity-like characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index or other economic variable. The Funds will only invest in commodity-linked hybrid instruments that qualify under applicable rules of the CFTC for an exemption from the provisions of the CEA.<br>Certain issuers of structured products such as hybrid instruments may be deemed to be investment companies as defined in the 1940 Act. If so, a Fund's investments in these products will be subject to limits applicable to investments in investment companies and may be subject to other restrictions imposed by the 1940 Act.<br>Structured notes are derivative debt instruments, the interest rate or principal of which is determined by an unrelated indicator (for example, a currency, security, commodity or index thereof). The terms of the instrument may be "structured" by the purchaser and the borrower issuing the note. Indexed securities may include structured notes as well as securities other than debt securities, the interest rate or principal of which is determined by an unrelated indicator. Indexed securities may include a multiplier that multiplies the indexed element by a specified factor and, therefore, the value of such securities may be very volatile. The terms of structured notes and indexed securities may provide that in certain circumstances no principal is due at maturity, which may result in a loss of invested capital. Structured notes and indexed securities may be positively or negatively indexed, so that appreciation of the unrelated indicator may produce an increase or a decrease in the interest rate or the value of the structured note or indexed security at maturity may be calculated as a specified multiple of the change in the value of the unrelated indicator. Therefore, the value of such notes and securities may be very volatile. Structured notes and indexed securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the unrelated indicator.<br>Structured notes or indexed securities also may be more volatile, less liquid, and more difficult to accurately price than less complex securities and instruments or more traditional debt securities. A Fund's Adviser analyzes these notes and securities in its overall assessment of the effective duration of the Fund's holdings in an effort to monitor the Fund's interest rate risk. |  |
| **Illiquid and Restricted Securities** | Illiquid securities are investments that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Each Fund may invest up to 15% of its net assets in illiquid assets. No Fund may acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more than 15% of its net assets in illiquid investments that are assets. Historically, illiquid securities have included securities subject to contractual or legal restrictions on resale because they have not been registered under the 1933 Act ("restricted securities"), securities that are otherwise not readily marketable, such as over-the- counter options, and repurchase agreements not entitling the holder to payment of principal in seven days. Such securities may offer higher yields than comparable publicly traded securities, and they also may incur higher risks.<br>Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, non-U.S. securities, Rule 144A securities, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. In such cases, a Fund, due to limitations on investments in illiquid  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | securities and the difficulty in purchasing and selling such securities or instruments, may be unable to achieve its desired level of exposure to a certain issuer or sector. Additional legislative or regulatory actions to address perceived liquidity or other issues in markets generally, or in particular markets such as the fixed income securities markets and municipal securities markets, may alter or impair the Funds' ability to pursue their investment objectives or utilize certain investment strategies and techniques.<br>Repurchase agreements, reverse repurchase agreements and time deposits that do not provide for payment to the Fund within seven days may be deemed illiquid securities for this purpose unless such securities are variable amount master demand notes with maturities of nine months or less or unless the Fund's subadviser has determined that an adequate trading market exists for such securities or that market quotations are readily available.<br>The Funds may purchase Rule 144A securities sold to institutional investors without registration under the 1933 Act and commercial paper issued in reliance upon the exemption in Section 4(a)(2) of the 1933 Act, for which an institutional market has developed. Institutional investors depend on an efficient institutional market in which the unregistered security can be readily resold or on the issuer's ability to honor a demand for repayment of the unregistered security.<br>An investment's contractual or legal restrictions on resale to the general public or to certain institutions may not be indicative of the liquidity of the investment and therefore the investments described in this section may be determined to be liquid in accordance with the Fund's liquidity risk management program approved by the Board. The Trustees have delegated to each Fund's Adviser the determination of the liquidity of such investments in the respective Fund's portfolio as administrator of the Fund's liquidity risk management program. The Fund's Adviser will take into account relevant market, trading and investment-specific considerations when determining whether an investment is illiquid.<br>If illiquid assets exceed 15% of a Fund's net assets after the time of purchase, the Fund will take steps to reduce, in accordance with Rule 22e-4 under the 1940 Act, its holdings of illiquid securities. Because illiquid securities may not be readily marketable, the relevant Fund's subadviser may not be able to dispose of them in a timely manner. As a result, the Fund may be forced to hold illiquid securities while their price depreciates. Depreciation in the price of illiquid securities may cause the NAV of the Fund holding them to decline. An investment that is determined by a Fund's Adviser to be liquid may subsequently revert to being illiquid if not enough buyer interest exists.<br>Restricted securities ordinarily can be sold by the Fund in secondary market transactions to certain qualified investors pursuant to rules established by the SEC, in privately negotiated transactions to a limited number of purchasers or in a public offering made pursuant to an effective registration statement under the 1933 Act. When registration is required, the Fund may be obligated to pay all or part of the registration expenses and a considerable time may elapse between the decision to sell and the sale date. If, during such period, adverse market conditions were to develop, the Fund might obtain a less favorable price than the price which prevailed when it decided to sell.<br>Restricted securities will be priced at fair value as determined in good faith by the Trustees or their delegate. |  |
| **Leverage** | Each Fund may employ investment techniques that create leverage, either by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested.<br>The SEC takes the position that transactions that have a leveraging effect on the capital structure of a mutual fund or are economically equivalent to borrowing can be viewed as constituting a form of borrowing by the fund for purposes of the 1940 Act. These transactions can include buying and selling certain derivatives (such as futures contracts); selling (or writing) put and call options; engaging in sale-buybacks; entering into firm-commitment and  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | stand-by commitment agreements; engaging in when-issued, delayed-delivery, or forward-commitment transactions; and other similar trading practices (additional discussion about a number of these transactions can be found throughout this section of the SAI). As a result, when a Fund enters into such transactions the transactions may be subject to the same requirements and restrictions as borrowing. (See "Borrowing" below for additional information.)<br>The following are some of the Funds' permitted investment techniques that are generally viewed as creating leverage for the Funds. |  |
| ***Borrowing*** | A Fund's ability to borrow money is limited by its investment policies and limitations, by the 1940 Act, and by applicable exemptions, no- action letters, interpretations, and other pronouncements issued from time to time by the SEC and its staff or any other regulatory authority with jurisdiction. Under the 1940 Act, a Fund is required to maintain continuous asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of the Fund's total assets made for temporary or emergency purposes. Any borrowings for temporary purposes in excess of 5% of the Fund's total assets must maintain continuous asset coverage. If the 300% asset coverage should decline as a result of market fluctuations or for other reasons, a Fund may be required to sell some of its portfolio holdings within three days (excluding Sundays and holidays) to reduce the debt and restore the 300% asset coverage, even though it may be disadvantageous from an investment standpoint to sell securities at that time.<br>Borrowing will tend to exaggerate the effect on net asset value of any increase or decrease in the market value of a Fund's portfolio. Money borrowed will be subject to interest costs that may or may not be recovered by earnings on the securities purchased. A Fund also may be required to maintain minimum average balances in connection with a borrowing or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate. |  |
| *Interfund Borrowing and Lending* | The Virtus Funds and their investment advisers have received exemptive relief from the SEC which permits the Virtus Funds to participate in an interfund lending program. The interfund lending program allows the participating Virtus Funds to borrow money from and loan money to each other for temporary or emergency purposes. The program is subject to a number of conditions designed to ensure fair and equitable treatment of the participating Virtus Funds, including the following: (1) no Virtus Fund may borrow money through the program unless it receives a more favorable interest rate than a rate approximating the lowest interest rate at which bank loans would be available to any of the participating Virtus Funds under a loan agreement; and (2) no Virtus Fund may lend money through the program unless it receives a more favorable return than that available from an investment in overnight repurchase agreements or the yield of any money market fund in which the Virtus Fund could invest. In addition, a Virtus Fund may participate in the program only if and to the extent that such participation is consistent with its investment objectives, policies and limitations. Interfund loans and borrowings have a maximum duration of seven days and loans may be called on one business day's notice.<br>A participating Virtus Fund may not lend to another Virtus Fund under the interfund lending program if the interfund loan would cause its aggregate outstanding interfund loans to exceed 15% of its current net assets at the time of the loan. Interfund loans by a Virtus Fund to any one Virtus Fund may not exceed 5% of net assets of the lending Virtus Fund.<br>The restrictions discussed above and the other conditions of the SEC exemptive order permitting interfund lending are designed to minimize the risks associated with interfund lending for both the lending Virtus Fund and the borrowing Virtus Fund. However, no borrowing or lending activity is without risk. If a Virtus Fund borrows money from another Virtus Fund, there is a risk that the interfund loan could be called on one business day's notice or not renewed, in which case the borrowing Virtus Fund may have to borrow from a bank at higher rates if an interfund loan were not available from another Virtus Fund. A delay  |  |

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|  | in repayment to a lending Virtus Fund could result in a lost opportunity or additional lending costs, and interfund loans are subject to the risk that the borrowing Virtus Fund could be unable to repay the loan when due. |  |
| ***Mortgage "Dollar- Roll" Transactions*** | Each Fund may enter into mortgage "dollar-roll" transactions pursuant to which it sells mortgage-backed securities for delivery in the future and simultaneously contracts to repurchase substantially similar securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the mortgage-backed securities. The Fund is compensated for the lost interest by the difference between the current sales price and the lower price for the future purchase (often referred to as the "drop") as well as by the interest earned on, and gains from, the investment of the cash proceeds of the initial sale. The Fund may also be compensated by receipt of a commitment fee. If the income and capital gains from the Fund's investment of the cash from the initial sale do not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of the Fund compared with what the performance would have been without the use of the dollar roll.<br>Dollar-roll transactions involve the risk that the market value of the securities the Fund is required to purchase may decline below the agreed upon repurchase price of those securities. If the broker-dealer to whom the Fund sells securities becomes insolvent, the Fund's right to purchase or repurchase securities may be restricted. Successful use of dollar rolls may depend upon the Fund's subadviser's ability to correctly predict interest rates and prepayments. There is no assurance that dollar rolls can be successfully employed. |  |
| ***Reverse Repurchase Agreements*** | Reverse repurchase agreements are transactions in which the Fund sells a security and simultaneously commits to repurchase that security from the buyer, such as a bank or broker-dealer, at an agreed-upon price on an agreed-upon future date. The resale price in a reverse repurchase agreement reflects a market rate of interest that is not related to the coupon rate or maturity of the sold security. For certain demand agreements, there is no agreed-upon repurchase date and interest payments are calculated daily, often based upon the prevailing overnight repurchase rate.<br>Generally, a reverse repurchase agreement enables the Fund to recover for the term of the reverse repurchase agreement all or most of the cash invested in the portfolio securities sold and to keep the interest income associated with those portfolio securities. Such transactions are only advantageous if the interest cost to the Fund of the reverse repurchase transaction is less than the cost of obtaining the cash otherwise. In addition, interest costs on the money received in a reverse repurchase agreement may exceed the return received on the investments made by the Fund with those monies. Using reverse repurchase agreements to earn additional income involves the risk that the interest earned on the invested proceeds is less than the expense of the reverse repurchase agreement transaction.<br>A Fund will enter into reverse repurchase agreements only with parties that the Fund's subadviser deems creditworthy, but such investments are still subject to the risks of leverage discussed above. |  |
| **Market Volatility Risk** | A Fund could lose money over short periods due to short-term market movements and over longer periods during more prolonged market downturns. The value of a security or other instrument may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or other instrument, or factors that affect a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector or asset class. During a general market downturn, multiple asset classes may be negatively affected. Changes in market conditions and interest rates generally do not have the same impact on all types of securities and instruments.<br>Social, political, economic and other conditions and events (such as natural disasters, epidemics and pandemics, terrorism, conflicts and social unrest) that occur from time to time will create uncertainty and may have significant impacts on issuers, industries,  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | governments and other systems, including the financial markets, to which a Fund and the issuers in which it invests are exposed. As global systems, economies and financial markets are increasingly interconnected, events that once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region or financial market will, more frequently, impact issuers in other countries, regions or markets, including in established markets such as the United States. These impacts can be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat.<br>Uncertainty can result in or coincide with: increased volatility in the global financial markets, including those related to equity and debt securities, loans, credit, derivatives and currency; a decrease in the reliability of market prices and difficulty in valuing assets; greater fluctuations in currency exchange rates; increased risk of default (by both government and private issuers); further social, economic, and political instability; nationalization of private enterprises; greater governmental involvement in the economy or in social factors that impact the economy; greater, less or different governmental regulation and supervision of the securities markets and market participants and increased, decreased or different processes for and approaches to monitoring markets and enforcing rules and regulations by governments or self-regulatory organizations; limited, or limitations on the, activities of investors in such markets; controls or restrictions on foreign investment, capital controls and limitations on repatriation of invested capital; inability to purchase and sell assets or otherwise settle transactions (i.e., a market freeze); unavailability of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have substantial negative effects on markets as well as the economy as a whole; recessions; rapid interest rate changes; supply chain disruptions; sanctions; and difficulties in obtaining and/or enforcing legal judgments.<br>For example, an outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and eventually detected globally. This coronavirus resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19 adversely affected the economies of many nations and the entire global economy, individual issuers and capital markets. Future infectious illness outbreaks could affect the economies of many nations or the entire global economy in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises may exacerbate other pre-existing political, social and economic risks in certain countries or globally.<br>Although it is impossible to predict the precise nature and consequences of these events, or of any political or policy decisions and regulatory changes occasioned by emerging events or uncertainty on applicable laws or regulations that impact a Fund's investments, it is clear that these types of events will impact the Funds and the issuers in which each invests. The government response to these events, including emergency health measures, welfare benefit programs, fiscal stimulus, industry support programs, and measures that impact interest rates, among other responses, is also a factor that may impact the financial markets and the value of a Fund's holdings. The issuers in which a Fund invests could be significantly impacted by emerging events and uncertainty of this type. A Fund will also be negatively affected if the operations and effectiveness of any of its key service providers are compromised or if necessary or beneficial systems and processes are disrupted. |  |
| **Master Limited Partnerships ("MLPs")** | An investment in MLP units involves some risks that differ from an investment in the common stock of a corporation. Holders of MLP units have limited control on matters affecting the partnership. Conflicts of interest exist between common unit holders and the general partner, including those arising from incentive distribution payments. MLPs holding credit-related investments are subject to interest rate risk and the risk of default on payment obligations by debt issuers. MLPs that concentrate in a particular industry or a particular  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | geographic region are subject to risks associated with such industry or region. The fees that MLPs charge for transportation of oil and gas products through their pipelines are subject to government regulation, which could negatively impact the revenue stream. Investing in MLPs also involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. These include the risk of environmental incidents, terrorist attacks, demand destruction from high commodity prices, proliferation of alternative energy sources, inadequate supply of external capital, and conflicts of interest with the general partner. There are also certain tax risks associated with investment in MLPs. The benefit derived from a Fund's investment in MLPs is somewhat dependent on the MLP being treated as a partnership for federal income tax purposes, so any change to this status would adversely affect the price of MLP units. Historically, a substantial portion of the gross taxable income of MLPs has been offset by tax losses and deductions reducing gross income received by investors, and any change to these tax rules would adversely affect the price of an MLP unit. Certain MLPs may trade less frequently than other securities, and those with limited trading volumes may display volatile or erratic price movements. |  |
| **Money Market Instruments** | Each Fund may invest in money market instruments, which are high- quality short-term investments. The types of money market instruments most commonly acquired by the Funds are discussed below, although each Fund is also permitted to invest in other types of money market instruments to the extent consistent with the Fund's investment limitations and restrictions. |  |
| ***Banker's Acceptances*** | A banker's acceptance is a time draft drawn on a commercial bank by a borrower usually in connection with an international commercial transaction (to finance the import, export, transfer or storage of goods). The borrower, as well as the bank, is liable for payment, and the bank unconditionally guarantees to pay the draft at its face amount on the maturity date. Most acceptances have maturities of six months or less and are traded in secondary markets prior to maturity. |  |
| ***Certificates of Deposit*** | Certificates of deposit are generally short-term, interest-bearing negotiable certificates issued by banks or savings and loan associations against funds deposited in the issuing institution. They generally may be withdrawn on demand but may be subject to early withdrawal penalties which could reduce the Fund's yield. Deposits subject to early withdrawal penalties or that mature in more than seven days are treated as illiquid securities if there is no readily available market for the securities. |  |
| ***Commercial Paper*** | Commercial paper refers to short-term, unsecured promissory notes issued by corporations to finance short-term credit needs. Commercial paper is usually sold on a discount basis and has a maturity at the time of issuance not exceeding nine months. The commercial paper purchased by the funds may consist of U.S. dollar- or foreign currency-denominated obligations of domestic or non-U.S. issuers, and may be rated or unrated (see Appendix A for a description of the ratings assigned by various rating agencies to commercial paper). The rate of return on commercial paper may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. |  |
| ***Obligations of Foreign Banks and Foreign Branches of U.S. Banks*** | The money market instruments in which the Funds may invest include negotiable certificates of deposit, bankers' acceptances and time deposits of foreign branches of U.S. banks, foreign banks and their non-U.S. branches (Eurodollars), U.S. branches and agencies of foreign banks (Yankee dollars), and wholly-owned banking-related subsidiaries of foreign banks. For the purposes of each Fund's investment policies with respect to money market instruments, obligations of foreign branches of U.S. banks and of foreign banks are obligations of the issuing bank and may be general obligations of the parent bank. Such obligations, however, may be limited by the terms of a specific obligation and by government regulation. As with investment in non-U.S. securities in general, investments in the obligations of foreign branches of U.S. banks and of foreign banks may subject a Fund to investment risks that are different in some respects from those of investments in obligations of domestic issuers. |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
| ***Time Deposits*** | Time deposits are deposits in a bank or other financial institution for a specified period of time at a fixed interest rate for which a negotiable certificate is not received. |  |
| ***U.S. Government Obligations*** | Securities issued or guaranteed as to principal and interest by the United States Government include a variety of Treasury securities, which differ only in their interest rates, maturities, and times of issuance. Treasury bills have maturities of one year or less. Treasury notes have maturities of one to ten years, and Treasury bonds generally have maturities of greater than ten years.<br>Agencies of the United States Government which issue or guarantee obligations include, among others, Export-Import Bank of the United States, Farmers Home Administration, Federal Housing Administration, GNMA, Maritime Administration, Small Business Administration and The Tennessee Valley Authority. Obligations of instrumentalities of the United States Government include securities issued or guaranteed by, among others, FNMA, Federal Home Loan Banks, FHLMC, Federal Intermediate Credit Banks, Banks for Cooperatives, and the U.S. Postal Service. Some of these securities are supported by the full faith and credit of the U.S. Government, others are supported by the right of the issuer to borrow from the Treasury, while still others are supported only by the credit of the instrumentality. There is no guarantee that the U.S. Government will provide financial support to its agencies or instrumentalities, now or in the future, if it is not obligated to do so by law. Accordingly, although these securities have historically involved little risk of loss of principal if held to maturity, they may involve more risk than securities backed by the full faith and credit of the U.S. Government because the Fund must look principally to the agency or instrumentality issuing or guaranteeing the securities for repayment and may not be able to assert a claim against the United States if the agency or instrumentality does not meet its commitment. |  |
| **Mutual Fund Investing** | Each Fund is authorized to invest in the securities of other investment companies subject to the limitations contained in the 1940 Act.<br>Investment companies in which the Fund may invest may include ETFs. An ETF is an investment company classified as an open-end investment company or unit investment trust that is traded similarly to a publicly traded company. Most ETFs seek to achieve the same return as a particular market index. That type of ETF is similar to an index fund in that it will primarily invest in the securities of companies that are included in a selected market index. An index-based ETF will invest in all of the securities included in the index, a representative sample of the securities included in the index, or other investments expected to produce returns substantially similar to that of the index. Other types of ETFs include leveraged or inverse ETFs, which are ETFs that seek to achieve a daily return that is a multiple or an inverse multiple of the daily return of a securities index. An important characteristic of these ETFs is that they seek to achieve their stated objectives on a daily basis, and their performance over longer periods of time can differ significantly from the multiple or inverse multiple of the index performance over those longer periods of time. ETFs also include actively managed ETFs that pursue active management strategies and publish their portfolio holdings on a frequent basis.<br>In connection with the management of its daily cash positions, each Fund may invest in securities issued by investment companies that invest in short-term debt securities (which may include municipal obligations that are exempt from Federal income taxes) and that seek to maintain a $1.00 NAV per share.<br>In certain countries, investments by the Funds may only be made through investments in other investment companies that, in turn, are authorized to invest in the securities that are issued in such countries. (See "Foreign Investment Companies" under "Foreign Investing" in this section of the SAI.)<br>Under the 1940 Act, a Fund generally may not own more than 3% of the outstanding voting stock of an investment company, invest more than 5% of its total assets in any one investment company, or invest more than 10% of its total assets in the securities of investment companies. In some instances, a Fund may invest in an investment company in  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | excess of these limits; for instance, with respect to investments in money market funds or investments made pursuant to exemptive rules adopted and/or orders granted by the SEC. The SEC has adopted exemptive rules to permit funds of funds to exceed these limits when complying with certain conditions, which differ depending upon whether the funds in which a fund of funds invests are affiliated or unaffiliated with the fund of funds. The Funds may rely on these exemptive rules and/or orders to invest in affiliated or unaffiliated mutual funds and/or unaffiliated ETFs. <br>The risks associated with investing in other investment companies generally reflect the risks of owning shares of the underlying securities in which those investment companies invest, although lack of liquidity in an investment company could result in its value being more volatile than the underlying portfolio of securities. For purposes of complying with investment policies requiring a Fund to invest a percentage of its assets in a certain type of investments (e.g., stocks of small capitalization companies), the Fund generally will look through an investment company in which it invests, to categorize the investment company in accordance with the types of investments the investment company holds.<br>Certain investment companies in which the Funds may invest may be considered commodity pools under the CEA and applicable CFTC regulations. If a Fund invests in such an investment company, the Fund will be required to treat some or all of its holding of the investment company's shares as a commodity interest for the purposes of determining whether the Fund is qualified to claim exclusion or exemption from regulation by the CFTC. (See "Commodity Interests" in this section of the SAI for additional information regarding the implications to the Funds of investing in commodity interests.)<br>Investors in each Fund should recognize that when a Fund invests in another investment company, the Fund will bear its pro rata portion of the other investment company's expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations. |  |
| **Real Estate Investment Trusts ("REITs")** | &nbsp;&nbsp;&nbsp;&nbsp;Each Fund may invest in REITs. REITs pool investors' funds for investment primarily in income producing commercial real estate or real estate related loans. A REIT is not taxed on income distributed to shareholders if it complies with several requirements relating to its organization, ownership, assets, and income and a requirement that it distribute to its shareholders at least 90% of its taxable income (other than net capital gains) for each taxable year.<br>REITs can generally be classified as follows:<br> Equity REITs, which invest the majority of their assets directly in real property and derive their income primarily from rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value.<br> Mortgage REITs, which invest the majority of their assets in real estate mortgages and derive their income primarily from interest payments.<br> Hybrid REITs, which combine the characteristics of both equity REITs and mortgage REITs.<br>REITs are structured similarly to closed-end investment companies in that they are essentially holding companies. An investor should realize that by investing in REITs indirectly through the Fund, he will bear not only his proportionate share of the expenses of the Fund, but also, indirectly, similar expenses of the underlying REITs. (See "Mutual Fund Investing" in this section of the SAI.)<br>Selecting REITs requires an evaluation of the merits of each type of asset a particular REIT owns, as well as regional and local economics. Due to the proliferation of REITs in recent years and the relative lack of sophistication of certain REIT managers, the quality of REIT assets has varied significantly. The risks associated with REITs are similar to those associated with the direct ownership of real estate. These include declines in the value of real estate, risks related to general and local economic conditions, dependence on  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | management skill, cash flow dependence, possible lack of availability of long-term mortgage funds, over-building, extended vacancies of properties, decreased occupancy rates and increased competition, increases in property taxes and operating expenses, changes in neighborhood values and the appeal of the properties to tenants and changes in interest rates.<br>Equity REITs may be affected by changes in the value of the underlying properties they own, while mortgage REITs may be affected by the quality of any credit extended. Further, equity and mortgage REITs are dependent upon management skills and generally are not diversified. Equity and mortgage REITs are also subject to potential defaults by borrowers, self-liquidation, and the possibility of failing to qualify for tax-free status of income under the Code and failing to maintain exemption from the 1940 Act. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments. In addition, investment in REITs could cause the Fund to possibly fail to qualify as a regulated investment company. (See the "Dividends, Distributions and Taxes" section of the SAI.) |  |
| **Regulation S Securities** | A Fund may invest in the securities of U.S. and non-U.S. issuers that are issued through private offerings without registration with the SEC pursuant to Regulation S under the Securities Act ("Regulation S Securities"). Offerings of Regulation S Securities may be conducted outside of the United States. Because Regulation S Securities are subject to legal or contractual restrictions on resale, Regulation S Securities may be considered illiquid. If a Regulation S Security is determined to be illiquid, the investment will be included with a Fund's 15% of net assets limitation on investment in illiquid securities. Furthermore, because Regulation S Securities are generally less liquid than registered securities, a Fund may take longer to liquidate these positions than would be the case for publicly traded securities. Although Regulation S Securities may be resold in privately negotiated transactions, the price realized from these sales could be less than those originally paid by a Fund. Further, companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities were publicly traded. Accordingly, Regulation S Securities may involve a high degree of business and financial risk and may result in substantial losses. |  |
| **Repurchase Agreements** | Each Fund may enter into repurchase agreements by which the Fund purchases portfolio securities subject to the seller's agreement to repurchase them at a mutually agreed-upon time and price. The repurchase price may be higher than the purchase price, the difference being income to the Fund, or the purchase and repurchase price may be the same, with interest payable to the Fund at a stated rate together with the repurchase price on repurchase. In either case, the income to the Fund is unrelated to the interest rate on the security.<br>A repurchase agreement must be collateralized by obligations that could otherwise be purchased by the Fund (except with respect to maturity), and these must be maintained by the seller in a segregated account for the Fund. The value of such collateral will be monitored throughout the term of the repurchase agreement in an attempt to ensure that the market value of the collateral always equals or exceeds the repurchase price (including accrued interest). If the value of the collateral dips below such repurchase price, additional collateral will be requested and, when received, added to the account to maintain full collateralization.<br>Repurchase agreements will be entered into with commercial banks, brokers and dealers considered by the relevant Fund's subadviser to be creditworthy. However, the use of repurchase agreements involves certain risks such as default by, or insolvency of, the other party to the transaction. The Fund also might incur disposition costs in connection with liquidating the underlying securities or enforcing its rights.<br>Typically, repurchase agreements are in effect for one week or less, but they may be in effect for longer periods of time.<br>Repurchase agreements of more than seven days' duration are subject to each Fund's limitation on investments in illiquid securities, which means that no more than 15% of the  |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | market value of a Fund's total assets may be invested in repurchase agreements with a maturity of more than seven days and in other illiquid securities. |  |
| **Securities Lending** | Subject to certain investment restrictions, each Fund may, subject to the Trustees' and Trust Treasurer's approval, lend securities from its portfolio to brokers, dealers and financial institutions deemed creditworthy and receive, as collateral, cash or cash equivalents which at all times while the loan is outstanding will be maintained in amounts equal to at least 100% of the current market value of the loaned securities. Any cash collateral will be invested in short-term securities that will increase the current income of the Fund lending its securities.<br>A Fund will have the right to regain record ownership of loaned securities to exercise beneficial rights such as voting rights and subscription rights. While a securities loan is outstanding, the Fund is to receive an amount equal to any dividends, interest or other distributions with respect to the loaned securities. A Fund may pay reasonable fees to persons unaffiliated with the Trust for services in arranging such loans.<br>Even though securities lending usually does not impose market risks on the lending Fund, as with any extension of credit, there are risks of delay in recovery of the loaned securities and in some cases loss of rights in the collateral should the borrower of the securities fail financially. In addition, the value of the collateral taken as security for the securities loaned may decline in value or may be difficult to convert to cash in the event that a Fund must rely on the collateral to recover the value of the securities. Moreover, if the borrower of the securities is insolvent, under current bankruptcy law, the Fund could be ordered by a court not to liquidate the collateral for an indeterminate period of time. If the borrower is the subject of insolvency proceedings and the collateral held might not be liquidated, the result could be a material adverse impact on the liquidity of the lending Fund.<br>No Fund will lend securities having a value in excess of 33 1/3% of its assets, including collateral received for loaned securities (valued at the time of any loan). |  |
| **Short Sales** | Each Fund may sell securities short as part of its overall portfolio management strategies involving the use of derivative instruments and to offset potential declines in long positions in similar securities. A short sale is a transaction in which a Fund sells a security it does not own or have the right to acquire, or that it owns but does not wish to deliver, in anticipation that the market price of that security will decline. A short sale is "against the box" to the extent the Fund contemporaneously owns, or has the right to obtain at no added cost, securities identical to those sold short. All other short sales are commonly referred to as "naked" short sales.<br>When a Fund makes a short sale, the broker-dealer through which the short sale is made must borrow the security sold short and deliver it to the party purchasing the security. The Fund is required to make a margin deposit in connection with such short sales; the Fund may have to pay a fee to borrow particular securities and will often be obligated to pay over any dividends and accrued interest on borrowed securities. If the price of the security sold short increases between the time of the short sale and the time the Fund covers its short position, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a capital gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and the securities being hedged.<br>If a Fund sells securities short against the box, it may protect unrealized gains, but will lose the opportunity to profit on such securities if the price rises. If a Fund engages in naked short sales, the Fund's risk of loss could be as much as the maximum attainable price of the security (which could be limitless) less the price paid by the Fund for the security at the time it was borrowed. |  |
| **Special Situations** | Each Fund may invest in special situations that the Fund's subadviser believes present opportunities for capital growth. Such situations most typically include corporate restructurings, mergers, and tender offers. |  |

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| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | A special situation arises when, in the opinion of the Fund's subadviser, the securities of a particular company will, within a reasonably estimable period of time, be accorded market recognition at an appreciated value solely by reason of a development particularly or uniquely applicable to that company and regardless of general business conditions or movements of the market as a whole. Developments creating special situations might include, among others, the following: liquidations, reorganizations, recapitalizations, mergers, or tender offers; material litigation or resolution thereof; technological breakthroughs; and new management or management policies. Although large and well-known companies may be involved, special situations often involve much greater risk than is inherent in ordinary investment securities. |  |
| **Stapled Securities** | A stapled security consists of two or more securities that are combined to form one security such that the individual securities cannot be traded separately. For example, an interest in a portfolio of real estate properties (a REIT) may be combined with an interest in the operating company that manages the portfolio of those properties. Investors in stapled securities are subject to the risks inherent with each security that makes up the stapled security. |  |
| **Structured Notes** | Structured Notes are derivatives where the amount of principal repayment and or interest payments is based upon the movement of one or more factors. These factors include, but are not limited to, currency exchange rates, interest rates (such as the prime lending rate and LIBOR or SOFR) and stock indices such as the S&P 500<sup><sup>®</sup></sup> Index.<br>In some cases, the impact of the movements of these factors may increase or decrease through the use of multipliers or deflators. The use of structured notes allows the Fund to tailor its investments to the specific risks and returns the Subadviser wishes to accept while avoiding or reducing certain other risks. |  |
| **Temporary Investments** | When business or financial conditions warrant, each Fund may assume a temporary defensive position by investing in money-market instruments, including obligations of the U.S. Government and its agencies and instrumentalities, obligations of foreign sovereigns, other debt securities, commercial paper including bank obligations, certificates of deposit (including Eurodollar certificates of deposit) and repurchase agreements. (See "Money Market Instruments" in this section of the SAI for more information about these types of investments.)<br>For temporary defensive purposes, during periods in which a Fund's subadviser believes adverse changes in economic, financial or political conditions make it advisable, the Fund may reduce its holdings in equity and other securities and may invest up to 100% of its assets in certain short-term (less than twelve months to maturity) and medium-term (not greater than five years to maturity) debt securities and in cash (U.S. dollars, foreign currencies, or multicurrency units). The short-term and medium-term debt securities in which a Fund may invest for temporary defensive purposes will be those that the Fund's subadviser believes to be of high quality (i.e., subject to relatively low risk of loss of interest or principal). If rated, these securities will be rated in one of the three highest rating categories by rating services such as Moody's or S&P (i.e., rated at least A). |  |
| **Warrants or Rights to Purchase Securities** | Each Fund may invest in or acquire warrants or rights to purchase equity or fixed income securities at a specified price during a specific period of time. A Fund will make such investments only if the underlying securities are deemed appropriate by the Fund's subadviser for inclusion in the Fund's portfolio. Included are warrants and rights whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants and stock rights are almost identical to call options in their nature, use and effect except that they are issued by the issuer of the underlying security, rather than an option writer, and they generally have longer expiration dates than call options. (See "Options" in this section of the SAI for information about call options.)<br>Bonds with warrants attached to purchase equity securities have many characteristics of convertible bonds and their prices may, to some degree, reflect the performance of the underlying stock. However, unlike convertible securities and preferred stocks, warrants do not  |  |

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|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | pay a fixed dividend. Bonds also may be issued with warrants attached to purchase additional fixed income securities at the same coupon rate. A decline in interest rates would permit a Fund holding such warrants to buy additional bonds at the favorable rate or to sell the warrants at a profit. If interest rates rise, the warrants would generally expire with no value.<br>A Fund may purchase put warrants and call warrants whose values vary depending on the change in the value of one or more specified securities indices ("index warrants"). Index warrants are generally issued by banks or other financial institutions and give the holder the right, at any time during the term of the warrant, to receive upon exercise of the warrant a cash payment from the issuer based on the value of the underlying index at the time of exercise. In general, if the value of the underlying index rises above the exercise price of the index warrant, the holder of a call warrant will be entitled to receive a cash payment from the issuer upon exercise based on the difference between the value of the index and the exercise price of the warrant; if the value of the underlying index falls, the holder of a put warrant will be entitled to receive a cash payment from the issuer upon exercise based on the difference between the exercise price of the warrant and the value of the index. The holder of a warrant would not be entitled to any payments from the issuer at any time when, in the case of a call warrant, the exercise price is greater than the value of the underlying index or, in the case of a put warrant, the exercise price is less than the value of the underlying index. If a Fund were not to exercise an index warrant prior to its expiration, then the Fund would lose the amount of the purchase price paid by it for the warrant.<br>A Fund will normally use index warrants in a manner similar to its use of options on securities indices. The risks of the Fund's use of index warrants are generally similar to those relating to its use of index options. (See "Options" in this section of the SAI for information about index options.) Unlike most index options, however, index warrants are issued in limited amounts and are not obligations of a regulated clearing agency, but are backed only by the credit of the bank or other institution which issues the warrant. Also, index warrants generally have longer terms than index options. Although a Fund will normally invest only in exchange-listed warrants, index warrants are not likely to be as liquid as certain index options backed by a recognized clearing agency. In addition, the terms of index warrants may limit a Fund's ability to exercise the warrants at such time, or in such quantities, as the Fund would otherwise wish to do. |  |
| **When-Issued and Delayed Delivery Transactions** | Each Fund may purchase securities on a when-issued or forward commitment basis. These transactions are also known as delayed delivery transactions. (The phrase "delayed delivery" is not intended to include purchases where a delay in delivery involves only a brief period required by the selling party solely to locate appropriate certificates and prepare them for submission for clearance and settlement in the customary way.) Delayed delivery transactions involve a commitment by the Fund to purchase or sell securities at a future date (ordinarily up to 90 days later). The price of the underlying securities (usually expressed in terms of yield) and the date when the securities will be delivered and paid for (the settlement date) are fixed at the time the transaction is negotiated. When-issued purchases and forward commitments are negotiated directly with the selling party.<br>When-issued purchases and forward commitments enable the Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. For example, in periods of rising interest rates and falling bond prices, the Fund might sell debt securities it owns on a forward commitment basis to limit its exposure to falling prices. In periods of falling interest rates and rising prices, the Fund might sell securities it owns and purchase the same or similar securities on a when-issued or forward commitment basis, thereby obtaining the benefit of currently higher yields. The Fund will not enter into such transactions for the purpose of leverage.<br>The value of securities purchased on a when-issued or forward commitment basis and any subsequent fluctuations in their value will be reflected in the Fund's NAV starting on the first business day after the date of the agreement to purchase the securities. The Fund will be subject to the rights and risks of ownership of the securities on the agreement date. However,  |  |

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| | | |
|:---|:---|:---|
| **<u>Investment Technique</u>** | **<u>Description and Risks</u>** | **<u>Fund-Specific Limitations</u>** |
|  | the Fund will not earn interest on securities it has committed to purchase until they are paid for and received. A seller's failure to deliver securities to the Fund could prevent the Fund from realizing a price or yield considered to be advantageous and could cause the Fund to incur expenses associated with unwinding the transaction.<br>When a Fund makes a forward commitment to sell securities it owns, the proceeds to be received upon settlement will be included in the Fund's assets. Fluctuations in the market value of the underlying securities will not be reflected in the Fund's NAV as long as the commitment to sell remains in effect. Settlement of when-issued purchases and forward commitment transactions generally takes place up to 90 days after the date of the transaction, but the Fund may agree to a longer settlement period.<br>The Funds will make commitments to purchase securities on a when- issued basis or to purchase or sell securities on a forward commitment basis only with the intention of completing the transaction and actually purchasing or selling the securities. If deemed advisable as a matter of investment strategy, however, a Fund may dispose of or renegotiate a commitment after it is entered into. A Fund also may sell securities it has committed to purchase before those securities are delivered to the Fund on the settlement date. The Fund may realize a capital gain or loss in connection with these transactions. |  |

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#### INVESTMENT LIMITATIONS

#### Fundamental Investment Limitations
Each Fund is subject to the investment limitations enumerated in this section, which may be changed with respect to a particular Fund only by a vote of the holders of a majority of such Fund's outstanding shares. As used in this SAI and in the Prospectuses, a "majority of the outstanding shares" of a fund means the lesser of (a) 67% of the shares of the particular Fund represented at a meeting at which the holders of more than 50% of the outstanding shares of such Fund are present in person or by proxy, or (b) more than 50% of the outstanding shares of such Fund.

The investment restrictions set forth below are fundamental policies of the Global Allocation Fund and may not be changed without shareholder approval by vote of a majority of the outstanding voting securities of the Fund. Under these restrictions, the Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. may not invest in a security if, as a result of such investment, more than 25% of its total assets (taken at market value at the time of such investment) would be invested in the securities of issuers in any particular industry, except that this restriction does not apply to securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities (or repurchase agreements with respect thereto) or securities issued by any investment company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. may not purchase securities of any issuer unless such purchase is consistent with the maintenance of the Fund's status as a diversified company under the Investment Company Act of 1940, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. may not purchase or sell real estate, although it may purchase securities secured by real estate or interests therein, or securities issued by companies in the real estate industry or that invest in real estate or interests therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. may not purchase or sell commodities, except that the Fund may purchase and sell futures contracts and options, may enter into foreign exchange contracts, and may enter into swap agreements and other financial transactions not requiring delivery of physical commodities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. may borrow money to the maximum extent permitted by law, as interpreted or modified, or otherwise permitted by regulatory authority having jurisdiction from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. may not issue senior securities, except as permitted borrowings or as otherwise permitted under the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. may not make loans, except that this restriction shall not prohibit the purchase of debt obligations or entering into repurchase agreements or the lending of the Fund's portfolio securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. may not act as an underwriter of securities of other issuers, except to the extent that in connection with the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws.

The investment restrictions set forth below are fundamental policies of the Convertible Fund, Global Sustainability Fund, High Yield Fund, International Small-Cap Fund, Emerging Markets Value Fund and Short Duration High Income Fund and may not be changed with respect to

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any such Fund without shareholder approval by vote of a majority of the outstanding voting securities of that Fund. Under these restrictions, each such Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. may not invest in a security if, as a result of such investment, more than 25% of its total assets (taken at market value at the time of such investment) would be invested in the securities of issuers in any particular "industry," as the term is used in the 1940 Act, as interpreted, modified or otherwise permitted from time to time by regulatory authority having jurisdiction. This restriction does not apply to securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities (or repurchase agreements with respect thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. may not purchase or sell real estate, although it may purchase securities secured by real estate or interests therein, or securities issued by companies in the real estate industry or that invest in real estate or interests therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. may not act as an underwriter of securities of other issuers, except to the extent that in connection with the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. may not purchase or sell commodities. This restriction shall not prohibit a Fund, subject to the restrictions described in the Prospectus and elsewhere in this Statement of Additional Information, from purchasing, selling or entering into futures contracts, options, foreign exchange contracts, swap agreements and other financial transactions not requiring delivery of physical commodities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. may borrow money to the maximum extent permitted by law, as interpreted or modified, or otherwise permitted by regulatory authority having jurisdiction from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. may not issue senior securities, except as permitted borrowings or as otherwise permitted under the 1940 Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. may not make loans, except that this restriction shall not prohibit the purchase of debt obligations or entering into repurchase agreements or the lending of the Fund's portfolio securities.

While each of the above mentioned Funds is "diversified" within the meaning of the 1940 Act and may only purchase securities consistent with the maintenance of such Fund's status as a diversified Company, the Short Duration High Income Fund has an explicit fundamental policy that it may not purchase securities of any issuer unless such purchase is consistent with the maintenance of the Fund's status as a diversified company under the Investment Company Act of 1940, as amended.

The investment restrictions set forth below are fundamental policies of the Water Fund, and may not be changed with respect to such Fund without shareholder approval by vote of a majority of the outstanding voting securities of that Fund. Under these restrictions, such Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. may not invest more than 25% of the value of its total assets in the securities of companies primarily engaged in any one industry, except that it will concentrate more than 25% of its total assets in the water-related resources sector;

With respect to the Fund's fundamental investment policy (1) relating to industry concentration, the Fund currently considers the water-related resources sector to include companies that are principally engaged in water-related activities. "Water-related activities" consist of those that relate to the quality or availability of or demand for potable and non-potable water and include the following: water production, storage, transport and distribution; water supply-enhancing or water demand-reducing technologies and materials; water planning, control and research; water conditioning, such as filtering, desalination, disinfection and purification; sewage and liquid waste treatment; and water delivery-related equipment and technology, consulting or engineering services relating to any of the above-mentioned activities. The specific activities that the Fund may from time to time consider to qualify as "water-related activities" will change as markets, technologies and investment practices develop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. may not purchase or sell real estate, although it may purchase securities secured by real estate or interests therein, or securities issued by companies that invest in real estate, or interests therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. may not act as an underwriter of securities of other issuers, except to the extent that in connection with the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. may not purchase or sell commodities or commodities contracts or oil, gas or mineral programs. This restriction shall not prohibit the Fund, subject to restrictions described in the Prospectus and elsewhere in this Statement of Additional Information, from purchasing, selling or entering into futures contracts, options on futures contracts, forward contracts, or any interest rate, securities-related or other hedging instrument, including swap agreements and other derivative instruments, subject to compliance with any applicable provisions of the federal securities or commodities laws;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. may not borrow money or issue any senior security, except to the extent permitted under the 1940 Act, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. may not make loans, except to the extent permitted under the 1940 Act, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

Certain sector definitions are based on the SEC staff's interpretations at the time of their adoption.

Currently, under the 1940 Act, a Fund generally is not permitted to engage in borrowing unless, a Fund borrows from a bank, and immediately after any borrowing, there is asset coverage of at least 300% for all borrowings (i.e., all borrowings in aggregate may not exceed 33 1/3% of the Fund's total assets). In the event a Fund's asset coverage falls below 300%, it must reduce the amount of its borrowings sufficiently to bring its asset coverage to at least 300%. Borrowings not exceeding 5% of a Fund's total assets made for temporary administrative purposes are not subject to these restrictions.

#### MANAGEMENT OF THE TRUST

#### Trustees and Officers
The Board is responsible for the overall supervision of the Trust, including establishing the Funds' policies and general supervision and review of their investment activities, and performs the various duties imposed on Trustees by the 1940 Act and Massachusetts business trust law. The officers, who administer the Funds' daily operations, are appointed by the Board and generally are employees of the Administrator or one of its affiliates. The current Trustees and officers of the Trust performing a policy-making function and their affiliations and principal occupations for the past five years are set forth below. The Trust has no employees.

Unless otherwise noted, each Trustee of the Trust also serves as a Trustee of other Virtus Funds and the address of each individual is c/o Virtus Funds, One Financial Plaza, Hartford, CT 06103. There is no stated term of office for Trustees or officers of the Trust.

#### Independent Trustees\*

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** |
| Burke, Donald C.<br>YOB: 1960 | Since 2021 | 99 | Private investor (since 2009). Formerly, President and Chief Executive Officer, BlackRock U.S. Funds (2007 to 2009); Managing Director, BlackRock, Inc. (2006 to 2009); and Managing Director, Merrill Lynch Investment Managers (1990 to 2006).<br> Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (57 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Alternative Solutions Trust (2 portfolios); Director (since 2014), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director, Avista Corp. (energy company) (since 2011); Trustee, Goldman Sachs Fund Complex (2010 to 2014); and Director,  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | BlackRock Luxembourg and Cayman Funds (2006 to 2010). |
| Cogan, Sarah E. YOB: 1956 | Since 2019 | 103 | Retired Partner, Simpson Thacher & Bartlett LLP ("STB") (law firm) (since 2019); Director, Girl Scouts of Greater New York (since 2016); Trustee, Natural Resources Defense Council, Inc. (since 2013); and formerly, Partner, STB (1989 to 2018). | Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (57 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), PIMCO Access Income Fund and PIMCO California Flexible Municipal Income Fund; Trustee (since 2021), PIMCO Flexible Emerging Markets Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2021), Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2019), PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PIMCO Energy and Tactical Credit  |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** |
|  |  |  | Opportunities Fund, PCM Fund, Inc, PIMCO Corporate & Income Strategy Fund, PIMCO Corporate & Income Opportunity Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS<sup>®</sup> & Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Strategic Income Fund, Inc., PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund; Trustee (since 2019), PIMCO Managed Accounts Trust (5 portfolios); and Trustee (2019 to 2021), PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Income Opportunity Fund. |
| DeCotis, Deborah A. <br>YOB: 1952 | Since 2011 | 103 | Director, Cadre Holdings Inc. (since 2022); Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); and Trustee, Smith College (since 2017). Formerly, Director, Watford Re (2017 to 2021); Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005 to 2015); and Trustee, Stanford University (2010 to 2015).Formerly, Director, Watford Re (2017 to 2021); Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005 to 2015); and Trustee, Stanford University (2010 to 2015).<br> Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (61 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (57 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), PIMCO Access Income Fund and PIMCO California Flexible Municipal Income Fund; Trustee (since 2021), PIMCO Flexible Emerging Markets Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2020), PIMCO Dynamic Income Opportunities Fund; Trustee (since 2019), PIMCO Energy  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | and Tactical Credit Opportunities Fund and Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2018), PIMCO Flexible Municipal Income Fund; Trustee (since 2017), PIMCO Flexible Credit Income Fund and Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Diversified Income & Convertible Fund; Trustee (since 2014), Virtus Investment Trust (13 portfolios); Trustee (2013 to 2021), PIMCO Dynamic Credit and Mortgage Income Fund; Trustee (since 2012), PIMCO Dynamic Income Fund; Trustee (since 2011), Virtus Strategy Trust (8 portfolios); Trustee (since 2011), PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund, Inc., PIMCO Corporate & Income Strategy Fund, PIMCO Corporate & Income Opportunity Fund, PIMCO Global StocksPLUS<sup>®</sup> & Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Strategic Income Fund, Inc., and PIMCO Managed Accounts Trust (5 portfolios); Trustee (since 2011), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; and Trustee (2011 to 2021), PIMCO Income Opportunity Fund. |
| Drummond, F. Ford YOB: 1962 | Since 2014 | 103 | President (since 1998), F.G. Drummond Ranches, Inc.; and Director (since 2015), Texas and Southwestern Cattle Raisers Association. Formerly Chairman, Oklahoma Nature Conservancy (2019 to 2020); Board Member (2006 to 2020) and Chairman (2016 to 2018),  | Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (57 portfolios), and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets  |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** |
|  |  |  | Oklahoma Water Resources Board; Trustee (since 2014), Frank Phillips Foundation; Director (1998 to 2008), The Cleveland Bank; and General Counsel (1998 to 2008), BMIHealth Plans (benefits administration).<br> Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2021), Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2017), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2014), Virtus Strategy Trust (8 portfolios); Director (since 2011), Bancfirst Corporation; and Trustee (since 2006), Virtus Investment Trust (13 portfolios). |
| Harris, Sidney E.<br>YOB: 1949 | Since 2021 | 96 | Private Investor (since 2021); Dean Emeritus (since 2015), Professor (2015 to 2021 and 1997 to 2014), and Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University.<br> Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup><sup>®</sup></sup>, The Merger Fund<sup><sup>®</sup></sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2019), Mutual Fund Directors Forum; Trustee (since 2017), Virtus Mutual Fund Family (57 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (2 portfolios); Trustee (2013 to 2020) and Honorary Trustee (since 2020), KIPP Metro Atlanta; Director (1999 to 2019), Total System Services, Inc.;  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | Trustee (2004 to 2017), RidgeWorth Funds; Chairman (2012 to 2017), International University of the Grand Bassam Foundation; Trustee (since 2012), International University of the Grand Bassam Foundation; and Trustee (2011 to 2015), Genspring Family Offices, LLC. |
| Mallin, John R.<br>YOB: 1950 | Since 2021 | 96 | Partner/Attorney (since 2003), McCarter & English LLP (law firm) Real Property Practice Group; and Member (2014 to 2022), Counselors of Real Estate. | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (61 portfolios) and Virtus Alternative Solutions Trust (2 portfolios); Director (since 2019), 1892 Club, Inc. (non-profit); Director (2013 to 2020), Horizons, Inc. (non-profit); and Trustee (since 1999), Virtus Variable Insurance Trust (8 portfolios). |
| McDaniel, Connie D.<br>YOB: 1958 | Since 2021 | 96 | Retired (since 2013). Vice President, Chief of Internal Audit, Corporate Audit Department (2009 to 2013); Vice President, Global Finance Transformation (2007 to 2009); and Vice President and Controller (1999 to 2007), The Coca-Cola Company. | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Director (since 2021), Global Payments Inc.; Chairperson (since 2021), Governance & Nominating Committee, Global Payments Inc;  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | Trustee (since 2017), Virtus Mutual Fund Family (57 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (2 portfolios); Director (since 2021), North Florida Land Trust; Director (2014 to 2019), Total System Services, Inc.; Member (since 2011) and Chair (2014 to 2016), Georgia State University, Robinson College of Business Board of Advisors; and Trustee (2005 to 2017), RidgeWorth Funds. |
| McLoughlin, Philip Chairman<br>YOB: 1946 | Since 2021 | 106 | Private investor since 2010. | Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios),Virtus Strategy Trust (8 portfolios), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2022) and Advisory Board Member (2021), Virtus Convertible & Income 2024 Target Term Fund and Virtus Convertible & Income Fund; Director and Chairman (since 2016), Virtus Total Return Fund Inc.; Director and Chairman (2016 to 2019), the former Virtus Total Return Fund Inc.; Director and Chairman (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and Chairman (since 2013), Virtus Alternative Solutions Trust (2 portfolios); Trustee and Chairman (since 2011), Virtus Global Multi-Sector Income Fund; Chairman and Trustee (since 2003), Virtus Variable Insurance Trust (8 portfolios); Director (since 1995), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director (1991 to 2019) and Chairman (2010 to 2019), Lazard World Trust Fund  |

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|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (57 portfolios). |
| McNamara, Geraldine M.<br>YOB: 1951 | Since 2021 | 106 | Private investor (since 2006); and Managing Director, U.S. Trust Company of New York (1982 to 2006). | Trustee (since 2023), Virtus Artificial Intelligence & Technology Opportunities Fund and Virtus Equity & Convertible Income Fund; Advisory Board Member (since 2023), Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016) Virtus Alternative Solutions Trust (2 portfolios); Trustee (since 2015), Virtus Variable Insurance Trust (8 portfolios); Director (since 2003), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); and Trustee (since 2001), Virtus Mutual Fund Family (57 portfolios). |
| Walton, R. Keith <br>YOB: 1964 | Since 2021 | 103 | Senior Adviser (since 2022), Brightwood Capital LLC; Venture and Operating Partner (since 2020), Plexo Capital, LLC; Venture Partner (since 2019) and Senior Adviser (2018 to 2019), Plexo, LLC; and Partner (since 2006), Global Infrastructure Partners. Formerly, Managing Director (2020 to 2021), Lafayette  | Trustee (since 2022) and Advisory Board Member (January 2022 to July 2022), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), Virtus  |

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** |
|  |  |  | Square Holding Company LLC; Senior Adviser (2018 to 2019), Vatic Labs, LLC; Executive Vice President, Strategy (2017 to 2019), Zero Mass Water, LLC; and Vice President, Strategy (2013 to 2017), Arizona State University.<br> Diversified Income & Convertible Fund; Advisory Board Member (since 2022), Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund II and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2020) Virtus Alternative Solutions Trust (2 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (57 portfolios); Director (since 2017), certain funds advised by Bessemer Investment Management LLC; Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (2006 to 2019), Systematica Investments Limited Funds; Director (2006 to 2017), BlueCrest Capital Management Funds; Trustee (2014 to 2017), AZ Service; Director (since 2004), Virtus Total Return Fund Inc.; and Director (2004 to 2019), the former Virtus Total Return Fund Inc. |
| Zino, Brian T. <br>YOB: 1952 | Since 2021 | 103 | Retired. Various roles (1982 to 2009), J. & W. Seligman & Co. Incorporated, including President (1994 to 2009).<br> Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2022) and Advisory Board Member (2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | (since 2020) Virtus Alternative Solutions Trust (2 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (57 portfolios); Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (since 2014), Virtus Total Return Fund Inc.; Director (2014 to 2019), the former Virtus Total Return Fund Inc.; Trustee (since 2011), Bentley University; Director (1986 to 2009) and President (1994 to 2009), J&W Seligman Co. Inc.; Director (1998 to 2009), Chairman (2002 to 2004) and Vice Chairman (2000 to 2002), ICI Mutual Insurance Company; Member, Board of Governors of ICI (1998 to 2008). |

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\* Those Trustees listed as "Independent Trustees" are not "interested persons" of the Trust, as that term is defined in the 1940 Act.

#### Interested Trustee

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** |
| Aylward, George R. YOB: 1964 | Since 2021 | 109 | Director, President and Chief Executive Officer (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various senior officer positions with Virtus affiliates (since 2005).<br> Trustee, President and Chief Executive Officer (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Member, Board of Governors of the Investment Company Institute (since 2021); Trustee and President (since 2021), The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Chairman and Trustee (since 2015), Virtus ETF Trust II (6  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Length of Time Served** | **Number of Portfolios in Fund Complex Overseen by Trustee** | **Principal Occupation(s) During Past 5 Years** | **Other Directorships Held by Trustee During Past 5 Years** |
|  |  |  |  | portfolios); Director, President and Chief Executive Officer (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and President (since 2013), Virtus Alternative Solutions Trust (2 portfolios); Director (since 2013), Virtus Global Funds, PLC (5 portfolios); Trustee (since 2012) and President (since 2010), Virtus Variable Insurance Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2011), Virtus Global Multi-Sector Income Fund; Trustee and President (since 2006) and Executive Vice President (2004 to 2006), Virtus Mutual Fund Family (57 portfolios); Director, President and Chief Executive Officer (since 2006), Virtus Total Return Fund Inc.; and Director, President and Chief Executive Officer (2006 to 2019), the former Virtus Total Return Fund Inc. |

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Mr. Aylward is an "interested person" as defined in the 1940 Act, by reason of his position as President and Chief Executive Officer of Virtus, the ultimate parent company of the Adviser, and various positions with its affiliates including the Adviser.

#### Officers of the Trust Who Are Not Trustees

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| | | |
|:---|:---|:---|
| **Name, Address and Year of Birth** | **Position(s) Held with the Trust and Length of Time Served** | **Principal Occupation(s) During Past 5 Years** |
| Batchelar, Peter <br>YOB: 1970 | Senior Vice President (since 2021). | Senior Vice President, Product Development (since 2017), Vice President, Product Development (2008 to 2017), and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
| Bradley, W. Patrick YOB: 1972 | Executive Vice President, Chief Financial Officer and Treasurer (since 2021). | Executive Vice President, Fund Services (since 2016), Senior Vice President, Fund Services (2010 to 2016) and various officer positions (since 2004), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2006) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Member (since 2022), BNY Mellon Asset Servicing Client Advisory Board. |
| Branigan, Timothy<br>YOB: 1976 | Vice President and Fund Chief Compliance Officer (since 2022); Assistant Vice President and Deputy Fund Chief Compliance Officer (March to May 2022); and Assistant Vice President and Assistant Chief  | Various officer positions (since 2019) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |

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| | | |
|:---|:---|:---|
| **Name, Address and Year of Birth** | **Position(s) Held with the Trust and Length of Time Served** | **Principal Occupation(s) During Past 5 Years** |
|  | Compliance Officer (2021 to 2022). |  |
| Fromm, Jennifer <br>YOB: 1973 | Vice President, Chief Legal Officer, Counsel and Secretary (since 2021). | Vice President (since 2016) and Senior Counsel, Legal (since 2007) and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. |
| Short, Julia R. <br>YOB: 1972 | Senior Vice President (since 2021). | Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017). |
| Smirl, Richard W. <br>YOB: 1967 | Exectutive Vice President (since 2021). | Chief Operating Officer (since 2021), Virtus Investment Partners, Inc.; Executive Vice President (since 2021), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Chief Operating Officer (2018 to 2021), Russell Investments; Executive Director (Jan. to July 2018), State of Wisconsin Investment Board; and Partner and Chief Operating Officer (2004 to 2018), William Blair Investment Management. |

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#### Leadership Structure and the Board of Trustees
The Board is currently composed of 12 trustees, including 11 Independent Trustees. In addition to five regularly scheduled meetings per year, the Board holds special meetings either in person or via telephone to discuss specific matters that may require consideration prior to the next regular meeting. As discussed below, the Board has established several standing committees to assist the Board in performing its oversight responsibilities, and each such committee has a chairperson. The Board may also designate working groups or ad hoc committees as it deems appropriate.

The Trustees of the Virtus Funds believe that an effective board should have perspectives informed by a range of viewpoints, skills, expertise, experiences and backgrounds. The Trustees endorse a diverse, inclusive and equitable environment for the Board where all members are respected, valued and engaged. As a result, when identifying and recruiting new Trustees and considering Board composition, committee composition and leadership roles, the Governance and Nominating Committee shall consider, among other attributes, diversity of race, ethnicity, color, religion, national origin, age, gender, disability, sexuality, culture, thought and geography, as well as numerous other dimensions of human diversity.

The Board has appointed Mr. McLoughlin, an Independent Trustee, to serve in the role of Chairman. The Chairman's primary role is to participate in the preparation of the agenda for meetings of the Board and the identification of information to be presented to the Board with respect to matters to be acted upon by the Board. The Chairman also presides at all meetings of the Board and between meetings generally acts as a liaison with the Trust's service providers, officers, legal counsel, and the other Trustees. The Chairman may perform such other functions as may be requested by the Board from time to time. Except for any duties specified herein or pursuant to the Trust's Declaration of Trust or By-laws, or as assigned by the Board, the designation of Chairman does not impose on such Independent Trustee any duties, obligations or liability that is greater than the duties, obligations or liability imposed on such person as a member of the Board, generally.

The Board believes that this leadership structure is appropriate because it allows the Board to exercise informed and independent judgment over matters under its purview, and it allocates areas of responsibility among committees or working groups of Trustees and the full Board in a manner that enhances effective oversight. Mr. McLoughlin previously served as the Chairman and Chief Executive Officer of the company that is now Virtus; however, he is now an Independent Trustee due to (a) the fact that Virtus is no longer affiliated with The Phoenix Companies, Inc. (which was its parent company when Mr. McLoughlin retired) and (b) the passage of time. As a result of this balance, it is believed that Mr. McLoughlin has the

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ability to provide independent oversight of the Trust's operations within the context of his detailed understanding of the perspective of the Adviser and the Trust's other service providers. The Board therefore considers leadership by Mr. McLoughlin as enhancing the Board's ability to provide effective independent oversight of the Trust's operations and meaningful representation of the shareholders' interests.

The Board also believes that having a super-majority of Independent Trustees is appropriate and in the best interest of the Funds' shareholders. Nevertheless, the Board also believes that having an interested person serve on the Board brings corporate and financial viewpoints that are, in the Board's view, crucial elements in its decision-making process. In addition, the Board believes that Mr. Aylward, who is currently the Chairman and President of the Adviser, and the President and Chief Executive Officer of Virtus, and serves in various executive roles with other affiliates of the Adviser who provide services to the Trust, provides the Board with the Adviser's perspective in managing and sponsoring the Virtus Funds as well as the perspective of other service providers to the Trust. The leadership structure of the Board may be changed at any time and in the discretion of the Board, including in response to changes in circumstances or the characteristics of the Trust.

The Board has established several standing committees to oversee particular aspects of the Funds' management. The members of each Committee are set forth below:

#### The Audit Committee
The Audit Committee is responsible for overseeing the Funds' accounting and auditing policies and practices. The Audit Committee reviews the Funds' financial reporting procedures, their system of internal control, the independent audit process, and the Funds' procedures for monitoring compliance with investment restrictions and applicable laws and regulations and with the Code of Ethics. The Audit Committee is composed entirely of Independent Trustees; its members are Connie D. McDaniel, Chairperson, Donald C. Burke, Deborah A. DeCotis, John R. Mallin and Brian T. Zino. The Audit Committee met seven times during the Trust's last fiscal year.

#### The Compliance Committee
The Compliance Committee is responsible for overseeing the Funds' compliance matters. The Compliance Committee oversees and reviews (1) information provided by the Funds' officers, including the Funds' CCO, the Funds' investment adviser and other principal service providers, and others as appropriate; (2) the codes of ethics; (3) whistleblower reports; and (4) distribution programs. The Compliance Committee is composed entirely of Independent Trustees; its members are Geraldine M. McNamara, Chairperson, Sarah E. Cogan, F. Ford Drummond, Sidney E. Harris, and R. Keith Walton. The Compliance Committee met six times during the Trust's last fiscal year.

#### The Executive Committee
The function of the Executive Committee is to serve as a delegate of the full Board, as well as act on behalf of the Board when it is not in session, subject to limitations as set by the Board. The Executive Committee is composed entirely of Independent Trustees; its members are Philip R. McLoughlin, Chairperson, Donald C. Burke, Deborah A. DeCotis, Sidney E. Harris and Brian T. Zino. The Executive Committee met four times during the Trust's last fiscal year.

#### The Governance and Nominating Committee
The Governance and Nominating Committee is responsible for developing and maintaining governance principles applicable to the Funds, for nominating individuals to serve as Trustees, including as Independent Trustees, and annually evaluating the Board and Committees. The Governance and Nominating Committee is composed entirely of Independent Trustees; its members are Brian T. Zino, Chairperson, Sarah E. Cogan, Sidney E. Harris, Philip R. McLoughlin and R. Keith Walton. The Governance and Nominating Committee met six times during the Trust's last fiscal year.

The Governance and Nominating Committee considers candidates for trusteeship and makes recommendations to the Board with respect to such candidates. There are no specific required qualifications for trusteeship. The committee considers all relevant qualifications of candidates for trusteeship, such as industry knowledge and experience, financial expertise, current employment and other board memberships, and whether the candidate would be qualified to be considered an Independent Trustee. The Board believes that having among its members a diversity of viewpoints, skills and experience and a variety of complementary skills enhances the effectiveness of the Board in its oversight role. The committee considers the qualifications of candidates for trusteeship in this context.

The Board has adopted a policy for consideration of Trustee nominees recommended by shareholders. With regards to such policy, an individual shareholder or shareholder group submitting a nomination must hold either individually or in the aggregate for at least one full year as of the date of nomination 5% of the shares of a series of the Trust, among other qualifications and restrictions. Shareholders or shareholder groups submitting nominees must comply with all requirements set forth in the Trust's policy for consideration of Trustee nominees recommended by shareholders and any such submission must be in writing, directed to the attention of the Governance and Nominating Committee in care of the Trust's Secretary, and should include biographical information, including business experience for the past ten years and a description of the qualifications of the proposed nominee, along with a statement from the proposed nominee that he or she is willing to serve and meets the requirements to be an Independent Trustee, if applicable. Shareholder nominees for Trustee will be given the same consideration as any candidate provided the nominee meets certain minimum requirements.

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#### Information about Each Trustee's Qualification, Experience, Attributes or Skills
The following provides further information about each Trustee's specific experience, qualifications, attributes or skills. The information in this section should not be understood to mean that any Trustee is an "expert" within the meaning of the federal securities laws.

#### George R. Aylward
In addition to his positions with the Trust, Mr. Aylward is a Director and the President and Chief Executive Officer of Virtus, the ultimate parent company of the Adviser. He also holds various executive positions with the Adviser, certain Funds' subadvisers, the Distributor and the Administrator to the Trust, and various of their affiliates, and previously held such positions with the former parent company of Virtus. He therefore has experience in all aspects of the development and management of registered investment companies, and the handling of various financial, staffing, regulatory and operational issues. Mr. Aylward is a certified public accountant and holds an MBA, and he also serves as an officer and director/trustee of several open-end and closed-end funds managed by the Adviser and its affiliates.

#### Donald C. Burke
Mr. Burke has extensive financial and business experience in the investment management industry. He was employed by BlackRock, Inc. (2006 to 2009) and Merrill Lynch Investment Managers (1990 to 2006) where he held a number of roles including Managing Director and President and Chief Executive Officer of the BlackRock U.S. mutual funds. In this role, Mr. Burke was responsible for the accounting, tax and regulatory reporting requirements for over 300 open and closed-end funds. He also served as a trustee for numerous global funds that were advised by BlackRock, Inc. Mr. Burke currently serves as a director and Audit Committee Chairman of Avista Corp., a public company involved in the production, transmission and distribution of energy. Mr. Burke started his career at Deloitte & Touche (formerly Deloitte Haskins & Sells) and is a certified public accountant. He has also served on a number of nonprofit boards. He is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Sarah E. Cogan
Ms. Cogan has substantial legal background and experience in the investment management industry. She was a partner at Simpson Thacher & Bartlett LLP, a large international law firm, in the corporate department for over 25 years and former head of the registered funds practice. She has extensive experience in oversight of investment company boards through her prior experience as counsel to the Independent Trustees of the series of the Allianz Funds (now known as Virtus Investment Trust) and Allianz Funds Multi-Strategy Trust (now known as Virtus Strategy Trust) and as counsel to other independent trustees, investment companies and asset management firms. She is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Deborah A. DeCotis
Ms. DeCotis has substantial senior executive experience in the investment banking industry, having served as a Managing Director for Morgan Stanley. She has extensive board experience and/or experience in oversight of investment management functions through her experience as a trustee of Stanford University and Smith College and as a director of Cadre Holdings Inc., Armor Holdings and The Helena Rubinstein Foundation, Stanford Graduate School of Business. Ms. DeCotis is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

F. Ford Drummond

Mr. Drummond has substantial legal background and experience in the oversight and management of regulated companies through his work as General Counsel of BMI Health Plans, a benefits administrator. He has substantial board experience in the banking sector as a director of BancFirst Corporation, Oklahoma's largest state chartered bank, and as a former director of The Cleveland Bank. Mr. Drummond also previously served as a member and chairman of the Oklahoma Water Resources Board, which provides tax exempt financing for water infrastructure projects in the state. He is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Sidney E. Harris
Dr. Sidney Harris has extensive knowledge of best practices in executive management, familiarity with international business practices and expertise in corporate strategy implementation, risk management, technology, asset management compliance and investments. Dr. Harris is Dean Emeritus and, until recently, was a Professor at the J. Mack Robinson College of Business at Georgia State University. He was affiliated with the J. Mack Robinson College of Business from 1997 to 2021, including serving as Professor (2015 to 2021 and 1997 to 2014) and Dean (1997 to 2004). Most recently, Dr. Harris was Professor of Computer Information Systems, Management and International Business. Prior to joining Georgia State University, Dr. Harris was Professor (1987 to 1996) and former Dean (1991 to 1996) of the Peter F. Drucker Graduate School of Management at Claremont Graduate University (currently Peter F. Drucker and Masotoshi Ito Graduate School of Management). He served as Independent Trustee of the RidgeWorth Funds Board of Trustees (2004 to 2017) and as Independent Chairman (2007 to 2017). He served as a member of the RidgeWorth Funds Governance and Nominating Committee (2004 to 2017) and Audit Committee (2006 to 2017). Dr. Harris previously served on the Board of Transamerica Investors (1995 to 2005). Dr. Harris previously served as a Director of Total System Services, Inc. (1999 to 2019). He served on the Board of Directors of KIPP Metro Atlanta, served as Chairman of the International University of the Grand-Bassam ("IUGB") Foundation (2012 to

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2017), and serves on the Board of Directors of the IUGB Foundation (since 2012). Dr. Harris also serves as a Trustee of the Mutual Funds Directors Forum (since 2019). He is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### John R. Mallin
Mr. Mallin is a real estate partner and former practice group leader for the Real Property Practice Group at McCarter & English LLP. During his career, he has been involved in all aspects of real estate development and financial transactions related to real estate. Mr. Mallin also has oversight and corporate governance experience as a director, including as a chair, of non-profit entities. Mr. Mallin is also a trustee of several other open-end funds managed by Virtus affiliates.

#### Connie D. McDaniel
Ms. McDaniel, currently retired, has extensive domestic and international business experience, particularly with respect to finance, strategic planning, risk management and risk assessment functions. She is retired from The Coca-Cola Company, where she served as Vice President and Chief of Internal Audit, Corporate Audit Department (2009 to 2013), Vice President, Global Finance Transformation (2007 to 2009), Vice President and Controller (1999 to 2007), and held various management positions (1989 to 1999). While at The Coca-Cola Company, Ms. McDaniel chaired that company's Ethics and Compliance Committee (2009 to 2013) and developed a knowledge of corporate governance matters. Prior to The Coca-Cola Company, she was associated with Ernst & Young (1980 to 1989). Ms. McDaniel served as Independent Trustee of the RidgeWorth Funds Board of Trustees from 2005 to 2017. She was Chairman of the RidgeWorth Funds Audit Committee (2008 to 2017), designated Audit Committee Financial Expert (2007 to 2017) and a member of the RidgeWorth Funds Governance and Nominating Committee (2015 to 2017). Ms. McDaniel also served as a Director of Total System Services, Inc. (2014 to 2019). She currently serves as a Director and Governance and Nominating Committee Chairperson of Global Payments Inc. (since 2019) and as a Director of North Florida Land Trust (since 2021). Ms. McDaniel served as Chair of the Georgia State University Robinson College of Business Board of Advisors (2014 to 2016) and served as a member of the Georgia State University Robinson College of Business Board of Advisors (2011 to 2021). Ms. McDaniel is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Philip R. McLoughlin
Mr. McLoughlin has an extensive legal, financial and asset management background. In 1971, he joined Phoenix Investment Partners, Ltd. (then, Phoenix Equity Planning Corp.), the predecessor of Virtus Investment Partners, Inc., as Assistant Counsel with responsibility for various compliance and legal functions. During his tenure, Mr. McLoughlin assumed responsibility for most functions in the firm's advisory, broker-dealer and fund management operations, and eventually ascended to the role of President. Mr. McLoughlin then served as General Counsel, and later Chief Investment Officer, of Phoenix Mutual Life Insurance Company, the parent company of Phoenix Investment Partners. Among other functions, he served as the senior management liaison to the boards of directors of the insurance company's mutual funds and closed-end funds, and had direct oversight responsibility for the funds' portfolio managers. In 1994, Mr. McLoughlin was named Chief Executive Officer of Phoenix Investment Partners, and continued in that position, as well as Chief Investment Officer of Phoenix Mutual Life Insurance Company, until his retirement in 2002. He is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates, including serving as the chairman of the board of several such funds.

#### Geraldine M. McNamara
Ms. McNamara was an executive at U.S. Trust Company of New York for 24 years, where she rose to the position of Managing Director. Her responsibilities at U.S. Trust included the oversight of U.S. Trust's personal banking business. In addition to her managerial and banking experience, Ms. McNamara has experience in advising individuals on their personal financial management, which has given her an enhanced understanding of the goals and expectations that individual investors may have. Ms. McNamara is also a trustee of several open-end and closed-end funds managed by Virtus affiliates.

R. Keith Walton

Mr. Walton's business and legal background, and his extensive service with other boards, provide valuable insight to the Board and its committees regarding corporate governance and best practices. He is an honors graduate of Yale University and the Harvard Law School. Mr. Walton was a Director of Systematica Investments Limited Funds (2006 to 2019) and a Director of BlueCrest Capital Management Funds (2006 to 2017). He is also the founding Principal and Chief Administrative Officer at Global Infrastructure Partners (since 2006) and Senior Adviser at Brightwood Capital, LLC (since 2022). He served as the Managing Director at Lafayette Square Holding Company LLC (2020 to 2021). Mr. Walton is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Brian T. Zino
Mr. Zino, currently retired, was employed by J. & W. Seligman and Co. Inc., a privately held New York City investment firm managing Closed End Investment Companies, a family of mutual funds, institutional accounts and operating a trust company (1982 to 2009). For the last 15 of those years, he served as president and CEO of Seligman. His extensive mutual fund, financial and business background and years of service as a director of a large non-affiliated family of both open- and closed-end funds bring valuable skills and business judgment to the Board and its committees. Mr. Zino is also a certified public accountant and has an extensive background in accounting matters relating to investment companies. He also served as a

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Director (1998 to 2009), Chairman (2002 to 2004) and Vice Chairman (2000 to 2002) on the board of the ICI Mutual Insurance Company and as a Member of the Board of Governors of ICI (1998 to 2008). Mr. Zino is also a director/trustee of open-end and closed-end funds managed by Virtus affiliates.

#### Board Oversight of Risk Management
As a registered investment company, the Trust is subject to a variety of risks, including investment risks, financial risks, compliance risks and regulatory risks. As part of its overall activities, the Board oversees the management of the Trust's risk management structure by the Trust's Adviser, Administrator, Distributor, Transfer Agent, officers and others. The responsibility to manage the Funds' risk management structure on a day-to-day basis is subsumed within the other responsibilities of these parties.

The Board considers risk management issues as part of its general oversight responsibilities throughout the year at regular meetings of the Board and its committees, and within the context of any ad hoc communications with the Trust's service providers and officers. The Trust's Adviser, subadvisers, Distributor, Administrator, Transfer Agent, officers and legal counsel prepare regular reports to the Board that address certain investment, valuation, compliance and other matters, and the Board as a whole or its committees may also receive special written reports or presentations on a variety of risk issues at the request of the Board, a committee, the Chairman or a senior officer.

The Board receives regular written reports describing and analyzing the investment performance of the Funds. In addition, the portfolio managers of the Funds and senior management of the Funds' subadvisers meet with the Board periodically to discuss portfolio performance and answer the Board's questions with respect to portfolio strategies and risks. To the extent that a Fund changes a primary investment strategy, the Board generally is consulted in advance with respect to such change.

The Board receives regular written reports from the Trust's Chief Financial Officer that enable the Board to monitor the number of fair valued securities in the Funds' portfolios, the reasons for the fair valuation and the methodology used to arrive at the fair value. Such reports also include information concerning illiquid securities within the Funds' portfolios. The Board and/or the Audit Committee may also review valuation procedures and pricing results with the Trust independent auditors in connection with the review of the results of the audit of the Funds' year-end financial statements.

The Board also receives regular compliance reports prepared by the compliance staff of the Adviser and meets regularly with the Trust's CCO to discuss compliance issues, including compliance risks. As required under applicable rules, the Independent Trustees meet regularly in executive session with the CCO, and the CCO prepares and presents an annual written compliance report to the Board. The CCO, as well as the compliance staff of the Adviser and Virtus, provide the Board with reports on their examinations of functions and processes within the Adviser and the subadvisers that affect the Funds. The Board also adopts compliance policies and procedures for the Trust and approves such procedures for the Trust's service providers. The compliance policies and procedures are specifically designed to detect and prevent violations of the federal securities laws.

In its annual review of the Funds' advisory, subadvisory and distribution agreements, the Board reviews information provided by the Adviser, the subadvisers and the Distributor relating to their operational capabilities, financial conditions and resources. The Board may also discuss particular risks that are not addressed in its regular reports and processes.

The Board recognizes that it is not possible to identify all of the risks that may affect the Funds or to develop processes and controls to eliminate or mitigate their occurrence or effects. The Board periodically reviews the effectiveness of its oversight of the Funds and the other funds in the Virtus Funds family, and the processes and controls in place to limit identified risks. The Board may, at any time and in its discretion, change the manner in which it conducts its risk oversight role.

#### Trustees' Fund Holdings as of December 31, 2022
As of December 31, 2022, the Trustees beneficially owned shares of the Funds as set forth in the table below.

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| | | |
|:---|:---|:---|
| **Independent Trustees** | **Dollar Range of Equity Securities in a Fund of the Trust** | **Aggregate Dollar Range of Trustee Ownership in all Funds Overseen by Trustee in Family of Investment Companies** |
| Donald C. Burke | Convertible Fund – $1-$10,000<br>Emerging Markets Value Fund – $1-$10,000<br>Global Allocation Fund –$1-$10,000<br>Global Sustainability Fund – $1-$10,000<br>High Yield Income Fund – $1-$10,000<br>International Small-Cap Fund – $1-$10,000<br>Short Duration High Income Fund – $1-$10,000<br>Water Fund – $1-$10,000 | Over $100,000 |

---

------

---

| | | |
|:---|:---|:---|
| Sarah E. Cogan | Global Sustainability Fund – $10,001-$50,000<br>Water Fund – $10,001-$50,000 | Over $100,000 |
| Deborah A. DeCotis |  | Over $100,000 |
| F. Ford Drummond | None<sup>(1)</sup> | Over $100,000<sup>(1)</sup> |
| Sidney E. Harris |  | Over $100,000<sup>(2)</sup> |
| John R. Mallin | None<sup>(3)</sup> | Over $100,000<sup>(1)</sup> |
| Connie D. McDaniel |  | Over $100,000<sup>(1)</sup> |
| Philip McLoughlin | None<sup>(1)</sup> | Over $100,000<sup>(1)</sup> |
| Geraldine M. McNamara | Water Fund – $10,001-$50,000 | Over $100,000 |
| R. Keith Walton |  | Over $100,000 |
| Brian T. Zino | Water Fund – $1-$10,000 | Over $100,000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Does not include over $100,000 in exposure through the Independent Trustee's deferred compensation as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Does not include exposure through the Independent Trustee's deferred compensation as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Does not include $1-$10,000 in exposure through the Independent Trustee's deferred compensation as of December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Interested Trustee**  | **Dollar Range of Equity Securities in a Fund of the Trust** | **Aggregate Dollar Range of Trustee Ownership in all Funds Overseen by Trustee in Family of Investment Companies** |
| George R. Aylward | Convertible Fund – $10,001-$50,000 | Over $100,000 |

---

As of January 9, 2023, the Trustees and Officers of the Trust as a whole owned less than 1% of the outstanding shares of any of the Funds or their classes.

#### Trustee Compensation
Trustees who are not employed by the Adviser or its affiliates receive an annual retainer and fees and expenses for attendance at Board and Committee meetings. Officers and employees of the Adviser of the Funds who are interested persons are compensated for their services by the Adviser of the Funds, or an affiliate of the Adviser of the Funds, and receive no compensation from the Funds. The Trust does not have any retirement plan for its Trustees.

In calendar year 2018 and certain prior periods, the Trust maintained a deferred compensation plan pursuant to which each Independent Trustee had the opportunity to elect not to receive all or a portion of his or her fees from the Trust on a current basis, but instead to receive in a subsequent period chosen by the Trustee an amount equal to the value of such compensation if such compensation had been invested in one or more series of Virtus Strategy Trust or Virtus Investment Trust selected by the Trustees from and after the normal payment dates for such compensation. The deferred compensation program was closed to new deferrals effective January 1, 2019, and all Trustee fees earned with respect to service in calendar year 2019 and beyond have been or will be paid in cash, on a current basis. The Trust still has obligations with respect to Trustee fees deferred in 2018 and in prior periods, and will continue to have such obligations until all deferred Trustee fees are paid out pursuant to the terms of the deferred compensation plan.

For the Trust's fiscal period ended September 30, 2022, the current Trustees received the following compensation:

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| | | |
|:---|:---|:---|
| **Independent Trustees** | **Aggregate Compensation from Trust** | **Total Compensation From Trust and Fund Complex Paid to Trustees** |
| Donald C. Burke | $21200 | $340,000 (106 Funds) |
| Sarah E. Cogan | $18267 | $365,000 (113 Funds) |
| Deborah A. DeCotis | $18267 | $355,000 (113 Funds) |
| F. Ford Drummond | $18269 | $360,000 (113 Funds) |
| Sidney E. Harris | $21200 | $340,000 (106 Funds) |
| John R. Mallin | $21200 | $340,000 (106 Funds) |
| Connie D. McDaniel | $24139 | $385,000 (106 Funds) |
| Philip R. McLoughlin | $28693 | $555,625 (113 Funds) |
| Geraldine M. McNamara | $23154 | $370,000 (103 Funds) |
| R. Keith Walton | $18197 | $355,000 (113 Funds) |
| Brian T. Zino | $20222 | $400,000 (113 Funds) |

---

------

---

| | | |
|:---|:---|:---|
| **Interested Trustees** | **Aggregate Compensation from Trust** | **Total Compensation From Trust and Fund Complex Paid to Trustee** |
| George R. Aylward |  |  |

---

#### Sales Loads
The Trust's Trustees are permitted to invest in Institutional Class or Class R6 shares of each Fund without initial or subsequent minimum investment requirements. Institutional Class shares do not carry a sales load.

#### Code of Ethics
The Trust, its Adviser, subadvisers and Distributor have each adopted a Code of Ethics pursuant to Rule 17j-1 under the 1940 Act. Personnel subject to the Codes of Ethics may purchase and sell securities for their personal accounts, including securities that may be purchased, sold or held by the Funds, subject to certain restrictions and conditions. Generally, personal securities transactions are subject to preclearance procedures, reporting requirements and holding period rules. The Codes also restrict personal securities transactions in private placements, initial public offerings and securities in which a Fund has a pending order. The Trust has also adopted a Code of Ethics for Chief Executive and Senior Financial Officers as required by Section 406 of the Sarbanes-Oxley Act of 2002.

#### Proxy Voting Policies
The Trust has adopted a Policy Regarding Proxy Voting (the "Policy") stating the Trust's intention for the Funds to exercise stock ownership rights with respect to portfolio securities in a manner that is reasonably anticipated to further the best economic interests of shareholders of the Funds. The Funds or their voting delegates will endeavor to analyze and vote all proxies that are likely to have financial implications, and where appropriate, to participate in corporate governance, shareholder proposals, management communications and legal proceedings. The Funds or their voting delegates must also identify potential or actual conflicts of interest in voting proxies and must address any such conflict of interest in accordance with the Policy.

In the absence of a specific direction to the contrary from the Board, the Adviser or the subadviser that is managing a Fund is responsible for voting proxies for such Fund, or for delegating such responsibility to a qualified, independent organization engaged by the Adviser or respective subadviser to vote proxies on its behalf. The applicable voting party will vote proxies in accordance with the Policy or its own policies and procedures, which must be reasonably designed to further the best economic interests of the affected Fund's shareholders. Because the Policy and the applicable voting party's policies and procedures used to vote proxies for the Funds both are designed to further the best economic interests of the affected Fund's shareholders, they are not expected to conflict with one another although the types of factors considered by the applicable voting party under its own policies and procedures may be in addition to or different from the ones listed below for the Policy.

The Policy specifies the types of factors to be considered when analyzing and voting proxies on certain issues when voting in accordance with the Policy, including, but not limited to:

 Anti-takeover measures – the overall long-term financial performance of the target company relative to its industry competition.

 Corporate Governance Matters – tax and economic benefits of changes in the state of incorporation; dilution or improved accountability associated with changes in capital structure.

 Contested elections – the qualifications of all nominees; independence and attendance record of board and key committee members; entrenchment devices in place that may reduce accountability.

 Stock Option and Other Management Compensation Issues—executive pay and spending on perquisites, particularly in conjunction with sub-par performance and employee layoffs.

 Shareholder proposals – whether the proposal is likely to enhance or protect shareholder value; whether identified issues are more appropriately or effectively addressed by legal or regulatory changes; whether the issuer has already appropriately addressed the identified issues; whether the proposal is unduly burdensome or prescriptive; whether the issuer's existing approach to the identified issues is comparable to industry best practice.

The Funds and their voting delegates seek to avoid actual or perceived conflicts of interest of Fund shareholders, on the one hand, and those of the Adviser, subadviser, other voting delegate, Distributor, or any affiliated person of the Funds, on the other hand.

Depending on the type and materiality, the Board or its delegates may take the following actions, among others, in addressing any material conflicts of interest that arise with respect to voting (or directing voting delegates to vote): (i) rely on the recommendations of an established, independent third party proxy voting vendor; (ii) vote pursuant to the recommendation of the proposing delegate; (iii) abstain; (iv) where two or more delegates provide conflicting requests, vote shares in proportion to the assets under management of each proposing delegate; (v) vote shares in the same

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proportion as the vote of all other shareholders of such issuer; or (vi) the Adviser may vote proxies where the subadviser has a direct conflict of interest. The Policy requires each Adviser/subadviser that is a voting delegate to notify the Chief Compliance Officer of the Trust (or, in the case of a subadviser, the Chief Compliance Officer of the Adviser) of any actual or potential conflict of interest that is identified, and provide a recommended course of action for protecting the best interests of the affected Fund's shareholders. No Adviser/subadviser or other voting delegate may waive any conflict of interest or vote any conflicted proxies without the prior written approval of the Board (or the Executive Committee thereof) or the Chief Compliance Officer of the Trust.

The Policy further imposes certain record-keeping and reporting requirements on each Adviser/subadviser or other voting delegate.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 will be available, no later than August 31 of each year, free of charge by calling, toll-free, 800.243.1574, or on the SEC's Web site at www.sec.gov.

Following is information about the policies and procedures followed by each subadviser to the Funds in voting proxies for their respective Funds.

#### Duff & Phelps Water Fund
Duff & Phelps has adopted pre-determined proxy voting guidelines (the "Guidelines") in an effort to ensure shares are voted in the best interests of its clients and the value of the investment, and to address any real or perceived conflicts of interest in proxy voting. The Guidelines allow Duff & Phelps to utilize a qualified, non-affiliated third-party vendor to assist in the review of proxy proposals and making of voting recommendations on behalf of clients consistent with the Guidelines and Duff & Phelps' clients' proxy voting guidelines including the Policy, or as determined to be in the best economic interest of Duff & Phelps' clients.

Duff & Phelps has procedures in place to address conflicts of interest or potential conflicts of interest relating to proxy proposals. Generally, where the Guidelines outline a voting position, either as for or against such proxy proposal, voting will be according to either the Guidelines or the third-party vendor's policies. The Proxy Committee will vote the proxy according to either its determination of the client's best interests or by client direction. In performing its analysis of how to vote on a proposal, the Proxy Committee will begin by considering the voting recommendation of the third-party vendor and will then override such vendor's recommendation if the Proxy Committee determines that such recommendation is not in the best interest of Duff & Phelps clients. The firm seeks not to finalize its votes until close to the deadline for being able to vote, so as to be able to consider any additional information that may become available, including from the company in response to a recommendation that has been made by a proxy advisory firm. The Proxy Committee incorporates consideration of ESG issues into its evaluation of recommendations of the proxy advisory firm and the voting of proxies generally. The firm has additionally adopted proxy voting guidelines that serve as a guide to voting with regard to certain recurring proposals. The vote the Proxy Committee selects will depend on the facts and circumstances of each situation as well as requirements of applicable law.

Duff & Phelps may choose not to vote proxies in certain situations or for certain accounts, such as when:

 it deems the cost of voting to exceed any anticipated benefit to client;

 a proxy is received for a security it no longer manages due to the entire position being sold; or

 exercising voting rights could restrict the ability of the portfolio manager to freely trade the security.

Duff & Phelps may also not be able to vote proxies for any client account that participates in securities lending programs.

A complete copy of Duff & Phelps' current Proxy Voting Policies, Procedures and Guidelines may be obtained by sending a written request to Duff & Phelps Investment Management Co., Attn: Compliance, 200 S. Wacker Drive, Suite 500, Chicago, Illinois 60606.

#### NFJ Funds
NFJ has a Proxy Committee ("Proxy Committee") that is responsible for establishing policies and procedures designed to enable NFJ to ethically and effectively discharge its fiduciary obligation to vote all applicable proxies on behalf of all discretionary client accounts and funds. Annually (or more often as needed), the Proxy Committee will review, reaffirm and/or amend guidelines, strategies and proxy policies for all client accounts, funds and product lines.

NFJ votes all shares per the NFJ Proxy Guidelines unless the client chooses custom guidelines. Most votes are based on the independent recommendation of the unaffiliated, third party Proxy Voting Service, which recommendations are in turn based on the Proxy Voting Service's independent review and research of each proxy and its independent application of the Proxy Guidelines. In those cases in which a portfolio manager or research analyst proposes to override a policy recommendation made by the Proxy Voting Service or the Proxy Voting Service has not provided a recommendation, the relevant portfolio managers and/or research analysts will review the proxy to ensure any recommendation appears based on a sound investment rationale and assess whether any business or other relationship, or any other potential conflict of interest, may be influencing the proposed vote on that company's proxy. In the event a material conflict is identified, NFJ will convene the Proxy Committee to review the proxy and

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make a decision how to vote. Proposed votes that raise potential material conflicts of interest are promptly resolved by the Proxy Committee prior to the time NFJ casts its vote. As reflected in the NFJ proxy policy, the Proxy Committee will affirmatively vote proxies for proposals that it deems to be in the best economic interest of its clients, as a whole, as shareholders and beneficiaries of those actions.

NFJ utilizes the services of Institutional Shareholder Services, Inc. as the unaffiliated, third party Proxy Voting Service to provide support services related to the Firm's proxy voting processes/procedures, which include: but are not limited to:

 The collection of proxy material from our clients' custodians.

 The review of proxy proposals and appropriate voting recommendations on behalf of the firm.

 The facilitation of proxy voting, reconciliation, and disclosure, in accordance with the firm's proxy policies and the Committee's direction.

 Recordkeeping and voting record retention.

#### Short Duration High Income Fund
Although the nature of Newfleet's portfolios is such that ballots are rarely required, Newfleet has adopted pre-determined proxy voting guidelines (the "Guidelines") to make every effort to ensure the manner in which shares are voted is in the best interest of its clients and the value of the investment. Under the Guidelines, Newfleet sometimes delegates to a non-affiliated third-party vendor the responsibility to review proxy proposals and make voting recommendations on behalf of Newfleet. Newfleet may also vote a proxy contrary to the Guidelines if it determines that such action in the best interest of its clients including the Fund.

A complete copy of Newfleet's current Proxy Voting Policies & Procedures is available by sending a written request to Newfleet Asset Management, Attn: Compliance Department, One Financial Plaza, Hartford, CT 06103. Email requests may be sent to: James.Sena@virtus.com.

#### High Yield Fund
***Seix has a Proxy Committee ("Proxy Committee") that is responsible for establishing policies and procedures designed to enable Seix to ethically and effectively discharge its fiduciary obligation to vote all applicable proxies on behalf of all discretionary client accounts and funds. Annually (or more often as needed), the Proxy Committee will review, reaffirm and/or amend guidelines, strategies and proxy policies for all client accounts, funds and product lines.***

***Seix votes any proxies per the Seix Proxy Guidelines unless the client chooses custom guidelines. In the case that a ballot item is not covered under the policy or is coded as case-by-case in Seix's guidelines, a research analyst or portfolio manager will review the available information and will utilize such information, along with his knowledge of the company, to make a vote recommendation to the Proxy Committee. The Proxy Committee members consider the information and recommendation, and will then vote on that ballot item. As reflected in the Seix Proxy Policy, the Proxy Committee will affirmatively vote proxies for proposals that it deems to be in the best economic interest of its clients, as a whole, as shareholders and beneficiaries of those actions.***

***Due to Seix's diverse client base, product lines, and affiliations, Seix's Proxy Committee may determine a potential conflict exists in connection with a proxy vote based on applicable SEC guidelines. In such instances, Seix's Proxy Committee will review the potential conflict to determine if it is material. Examples of material conflicts of interest which may arise could include those where the shares to be voted involve:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. An issuer having substantial and numerous banking, investment, or other financial relationships with Seix; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A senior officer of Seix serving on the board of a publicly held company.

***Although Seix utilizes a pre-determined proxy voting policy, occasions may arise in which a conflict of interest could be deemed to be material. In this case, Seix's Proxy Committee will determine the most fair and reasonable procedure to be followed in order to properly address all conflict concerns. The Proxy Committee may retain an independent fiduciary to vote the securities. Although Seix does its best to alleviate or diffuse known conflicts, there is no guarantee that all situations have been or will be mitigated through proxy policy incorporation.***

***Seix utilizes the services of Institutional Shareholder Services, Inc. as its agent in the provision of certain administrative, clerical, functional recordkeeping, and support services related to Seix's proxy voting processes/procedures, which include, but are not limited to:***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1.* The collection of proxy material from its clients' custodians;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.* The facilitation of proxy voting, reconciliation, and disclosure, in accordance with Seix's Proxy Policy and the Proxy Committee's direction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3.* Recordkeeping and voting record retention.

Shareholders may obtain a copy of the complete Proxy Guidelines by contacting Seix's Chief Compliance Officer at One Maynard Drive, Suite 3200, Park Ridge, NJ 07656 or (201) 391-0300.

#### Global Allocation Fund and International Small-Cap Fund
VIA has adopted proxy voting policies, procedures and guidelines ("Guidelines") in an effort to ensure proxies are voted in the best interests of its clients and the value of the investment, and to address any real or perceived conflicts of interest in proxy voting. Proxies of the Funds will be voted subject to the Funds' Policy and, to the extent applicable, in accordance with any resolutions or other instructions approved by authorized persons of the Funds. Any VIA representative identifying a conflict of interest in voting a proxy is required to immediately report the conflict of interest to VIA's CCO who will determine a course of action. VIA's Guidelines allow VIA to utilize a qualified, non-affiliated third-party vendor to review proxies and make voting recommendations on behalf of VIA's clients consistent with the Guidelines. The firm will vote proxies in a manner deemed to be in the best economic interest of its clients, as a whole, as shareholders and beneficiaries of those actions. VIA may choose not to vote proxies in certain situations or for certain accounts, such as but not limited to the following:

 When VIA deems the cost of voting would exceed any anticipated benefit to the respective client(s);

 When a proxy is received for a security VIA no longer manages (i.e., VIA has previously sold the entire position); and/or

 When the exercise of voting rights could restrict the ability of an account's portfolio manager to freely trade the security.

A complete copy of VIA's Proxy Voting Guidelines is available by sending a written request to Virtus Investment Advisers, Inc., Attn: Chief Compliance Officer, One Financial Plaza, Hartford, CT 06103. Email requests may be sent to: david.fusco@virtus.com.

#### Convertible Fund
Voya Investment Management LLC ("Voya IM LLC") has adopted proxy voting policies, procedures and guidelines in an effort to ensure proxies are voted in the best interests of its clients and the value of the investment, and to address any real or perceived conflicts of interest in proxy voting. Proxies of the Funds will be voted subject to Voya IM LLC's policy. Voya IM LLC's Proxy Committee oversees the implementation of Voya IM LLC's proxy voting procedures and guidelines including potential conflicts of interest. An independent proxy voting service has been retained to assist in the voting of Fund proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services. In addition, the Compliance Committee oversees the implementation of each Fund's proxy voting procedures and guidelines.

#### CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
As of January 9, 2023, the persons who owned of record, or were known by the Trust to own beneficially, 5% or more of the outstanding shares of any class, or 25% or more of the outstanding shares of all classes, of the Funds included in this SAI are shown in Appendix B — Control Persons and Principal Shareholders.

#### INVESTMENT ADVISORY AND OTHER SERVICES

#### Investment Adviser
The investment adviser to each of the Funds is Virtus Investment Advisers, Inc., located at One Financial Plaza, Hartford, Connecticut 06103. VIA, an indirect, wholly-owned subsidiary of Virtus, acts as the investment adviser for over 70 mutual funds and as adviser to institutional clients. VIA has acted as an investment adviser for over 80 years. As of September 30, 2022 VIA had approximately $47.5 billion in assets under management.

At a joint special shareholder meeting held on October 28, 2020, and adjournments thereto (the "Meeting"), shareholders of the Funds approved a transition to a new management structure whereby VIA became investment adviser for the Funds, and affiliates of Virtus became distributor and/or administrator for the Funds. In connection with the Meeting, each Fund's shareholders approved a new investment advisory agreement between each such Fund and VIA that replaced the then-existing investment advisory agreement between each such Fund and AllianzGI U.S. Advisory and other fees paid prior to February 1, 2021 were paid to AllianzGI U.S. in its former capacity as investment adviser, pursuant to the previous investment advisory agreement, by the Trust during those and previous periods.

#### Investment Advisory Agreement and Expense Limitation Agreement
The investment advisory agreement, approved by the Board and shareholders of the Funds, provides that the Trust will bear all costs and expenses (other than those specifically referred to as being borne by the Adviser) incurred in the operation of the Trust. Such expenses include, but shall not be

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limited to, all expenses incurred in the operation of the Trust and any public offering of its shares, including, among others, leverage expenses, acquired fund fees and expenses, interest, taxes, brokerage fees and commissions, fees of Trustees who are not employees of the Adviser, Virtus or any of its affiliates, expenses of Trustees, and shareholders' meetings, expenses of printing and mailing proxy soliciting material, expenses of the insurance premiums for fidelity and other coverage, expenses of the repurchase and redemption of shares, expenses of the issue and sale of shares (to the extent not borne by VP Distributors under its agreement with the Trust), association membership dues, charges of custodians, transfer agents, dividend disbursing agents and financial agents, and bookkeeping, auditing and legal expenses. The Trust will also pay the fees and bear the expense of registering and maintaining the registration of the Trust and its shares with the SEC and registering or qualifying its shares under state or other securities laws and the expense of preparing and mailing prospectuses and reports to shareholders. If authorized by the Board, the Trust will also pay for extraordinary expenses and expenses of a non-recurring nature which may include, but shall not be limited to, the reasonable cost of any reorganization or acquisition of assets and the cost of legal proceedings to which the Trust is a party.

Each Fund will pay expenses incurred in its own operation and will also pay a portion of the Trust's general administration expenses allocated on the basis of the asset values of the respective Funds.

For managing, or directing the management of, the investments of each Fund, the Adviser is entitled to a fee, payable monthly, at the following annual rates based on each Fund's average daily net assets:

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| | |
|:---|:---|
| **Fund** | **Investment Advisory Fee** |
| Convertible Fund | 0.57% |
| Emerging Markets Value Fund | 0.85% |
| Global Allocation Fund | 0.70% |
| Global Sustainability Fund | 0.80% |
| High Yield Income Fund | 0.48% |
| International Small-Cap Fund | 1.00% |
| Short Duration High Income Fund | 0.48% |
| Water Fund | 0.95% |

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The Adviser may waive any portion of its investment advisory fees or reimburse Fund expenses from time to time. The Adviser has contractually agreed to limit the annual operating expenses (excluding certain expenses, such as front-end or contingent deferred sales charges, taxes, leverage and borrowing expenses (such as commitment, amendment and renewal expenses on credit or redemption facilities), interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any) through February 1, 2024 of the Funds listed below so that such expenses do not exceed, on an annualized basis, the amounts indicated in the following table (expressed as a percentage of daily net assets):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class C** | **Institutional Class** | **Class P** | **Class R6** | **Administrative Class** |
| Convertible Fund | 0.96% | 1.73% | 0.71% | 0.71% | 0.62% | 0.93% |
| Emerging Markets Value Fund | 1.14% | 1.89% | 0.89% | 0.99% | N/A | N/A |
| Global Allocation Fund | 0.52% | 1.27% | 0.29% | 0.32% | 0.22% | 0.47% |
| Global Sustainability Fund | 0.94% | N/A | 0.69% | 0.79% | N/A | N/A |
| High Yield Income Fund | 1.12% | 1.81% | 0.83% | 0.80% | N/A | 1.00% |
| International Small-Cap Fund | 1.25% | 2.00% | 1.04% | 1.10% | 1.00% | N/A |
| Short Duration High Income Fund | 0.86% | 1.11% | 0.60% | 0.65% | 0.55% | N/A |
| Water Fund | 1.22% | 1.97% | 0.93% | 0.94% | N/A | N/A |

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Following the contractual period, the Adviser may discontinue these expense caps and/or fee waivers at any time. Under certain conditions, the Adviser may recapture operating expenses reimbursed and/or fees waived under these arrangements, for a period of three years following the date such waiver or reimbursement occurred, provided that the recapture does not cause the Fund to exceed its expense limit in effect at the time of the waiver or reimbursement, and any in effect at the time of recapture, after repayment is taken into account.

The Adviser also may, at its discretion, from time to time pay for other Fund expenses from its own assets, or reduce the management fee of a Fund in excess of that required. Any fee reimbursed and/or any Fund expense absorbed by the Adviser pursuant to an agreed upon expense cap shall be

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reimbursed by the Fund to the Adviser, if so requested by the Adviser, provided the aggregate amount of the Fund's current operating expense for such fiscal year does not exceed the applicable limitation on Fund expenses.

The investment advisory agreement also provides that the Adviser shall not be liable to the Trust or to any shareholder of the Trust for any error of judgment or mistake of law or for any loss suffered by the Trust or by any shareholder of the Trust in connection with the matters to which the agreement relates, except a loss resulting from willful misfeasance, bad faith, gross negligence or reckless disregard on the part of such Adviser in the performance of its duties thereunder.

Provided it has been approved by a vote of the majority of the outstanding shares of a Fund of the Trust which is subject to its terms and conditions, the investment advisory agreement continues from year to year with respect to such Fund so long as (1) such continuance is approved at least annually by the Board or by a vote of the majority of the outstanding shares of such Fund and (2) the terms and any renewal of the agreement with respect to such Fund have been approved by the vote of a majority of the Trustees who are not parties to the agreement or interested persons, as that term is defined in the 1940 Act, of the Trust or the relevant Adviser, cast in person (or otherwise, as consistent with applicable laws, regulations and related guidance and relief) at a meeting called for the purpose of voting on such approval. On sixty days' written notice and without penalty the agreement may be terminated as to the Trust or as to a Fund by the Board or by the relevant Adviser and may be terminated as to a Fund by a vote of the majority of the outstanding shares of such Fund. The Agreement automatically terminates upon its assignment (within the meaning of the 1940 Act). The agreement provides that upon its termination, or at the request of the relevant Adviser, the Trust will eliminate all reference to Virtus from its name, and will not thereafter transact business in a name using the word Virtus.

#### Adviser Affiliates
George Aylward, Jennifer Fromm and Richard W. Smirl each serve as an officer of the Trust and as an officer and/or director of the Adviser. The other principal executive officers of the Adviser are: Michael Angerthal, Executive Vice President and Chief Financial Officer; Wendy Hills, Executive Vice President, General Counsel and Assistant Clerk; David Fusco, Vice President and Chief Compliance Officer; and David Hanley, Senior Vice President and Treasurer. The directors of the Adviser are George Aylward, Michael Angerthal and Wendy Hills.

#### Advisory Fees
The following table shows the dollar amount of fees received by the Adviser for services to the Funds, the amount of expenses reimbursed by the Adviser, and the actual fee received by the Adviser, during the fiscal years ended September 30, 2020, 2021 and 2022 under the investment advisory agreement in effect.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Gross Advisory Fee ($)** | **Gross Advisory Fee ($)** | **Gross Advisory Fee ($)** | **Advisory Fee Waived and/or Expenses Reimbursed ($)** | **Advisory Fee Waived and/or Expenses Reimbursed ($)** | **Advisory Fee Waived and/or Expenses Reimbursed ($)** | **Net Advisory Fee ($)** | **Net Advisory Fee ($)** | **Net Advisory Fee ($)** |
| **Fund** | **2020** | **2021<sup>(\*)</sup>** | **2022** | **2020** | **2021<sup>(\*)</sup>** | **2022** | **2020** | **2021<sup>(\*)</sup>** | **2022** |
| Convertible Fund | 6585999 | 15947981 | 13455333  |  | (2397626) | (2834629) | 6585999 | 13550355 | 10620704  |
| Emerging Markets Value Fund | 987772 | 1340765 | 1015986  |  | (599986) | (433891) | 987772 | 740779 | 582095  |
| Global Allocation Fund | 2096474 | 2045374 | 1828628  | (1295409) | (1907218) | (1863704) | 801065 | 138156 | (35076) |
| Global Sustainability Fund | 1202200 | 1218209 | 924481  |  | (599686) | (423759) | 1202200 | 618523 | 500722  |
| High Yield Income Fund | 519227 | 361269 | 257466  |  | (9977) | (86875) | 519227 | 351292 | 170591  |
| International Small-Cap Fund | 845458 | 858586 | 627355  |  | (376599) | (243033) | 845458 | 481987 | 384322  |
| Short Duration High Income Fund | 5512082 | 3771019 | 3485388  |  | (763414) | (695219) | 5512082 | 3007605 | 2790169  |
| Water Fund | 6043882 | 8493551 | 8815021  |  | (2404694) | (2468485) | 6043882 | 6088857 | 6346536  |

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<sup>(\*)</sup> For periods prior to February 1, 2021, AllianzGI U.S served as adviser to the Funds. VIA replaced AllianzGI U.S. and became the Trust's Adviser effective on February 1, 2021. All advisory fees paid prior to February 1, 2021 were paid to AllianzGI U.S. and all advisory fees paid from February 1, 2021 through September 30, 2021 were paid to VIA.

#### Subadvisers and Subadvisory Agreements
The Adviser has entered into subadvisory agreements with respect to the Convertible Fund, Emerging Markets Value Fund, Global Sustainability Fund, High Yield Fund, Short Duration High Income Fund and Water Fund. Each subadvisory agreement provides that the Adviser will delegate to the respective subadviser the performance of certain of its investment management services under the Investment Advisory Agreement with respect to each of the Funds for which that subadviser provides subadvisory services. Each subadviser furnishes at its own expense the office facilities and personnel necessary to perform such services. The Adviser remains responsible for the supervision and oversight of each subadviser's performance. Each subadvisory agreement will continue in effect from year to year if specifically approved by the Trustees, including a majority of the Independent Trustees. The subadvisory fees are paid by the Adviser out of its advisory fees from the Funds. The Adviser has not delegated to subadvisers the investment management services with respect to the Global Allocation Fund and International Small-Cap Fund.

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#### Duff & Phelps Investment Management Co. — Water Fund
Duff & Phelps is located at 200 S. Wacker Drive, Suite 500, Chicago, IL 60606, and is an indirect, wholly-owned subsidiary of Virtus and an affiliate of VIA. Duff & Phelps acts as adviser and subadviser to open- and closed-end funds and as investment adviser to institutions and individuals. As of September 30, 2022 Duff & Phelps managed approximately $11.5 billion, of which $11.5 billion was regulatory assets under management and $700 million was model/emulation assets under contract. Model/emulation assets refer to assets that Duff & Phelps is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

For its services as subadviser, VIA pays Duff & Phelps a fee at the rate of 50% of the net advisory fee paid by the Water Fund.

#### NFJ — Emerging Markets Value Fund and Global Sustainability Fund
NFJ is located at One Financial Plaza, Hartford, CT 06103 with its primary investment offices at 2100 Ross Avenue, Dallas, Texas 75201, and is an indirect, wholly-owned subsidiary of Virtus and an affiliate of VIA. NFJ acts as adviser and subadviser to open-end funds and as investment adviser to institutions and individuals. As of September 30, 2022 NFJ managed approximately $6.6 billion, of which $5.1 billion was regulatory assets under management and $1.5 billion was model/emulation assets under contract. Model/emulation assets refer to assets that NFJ is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

For its services as subadviser, VIA pays NFJ a fee at the rate of 50% of the net advisory fee paid by each Fund for which NFJ acts as subadviser.

#### VFIA
VFIA, an affiliate of VIA, is located at One Financial Plaza, Hartford, CT 06103. VFIA operates through its divisions, Newfleet and Seix, in subadvising their respective Fund(s) described herein. As of September 30, 2022, the three advisers that make up VFIA managed approximately $33.1 billion in aggregate assets under management.

#### Newfleet — Short Duration High Income Fund
The Newfleet division of VFIA acts as subadviser to mutual funds and as adviser to institutions and individuals. As of September 30, 2022, the Newfleet division of VFIA managed approximately $8.42 billion in assets under management. Newfleet, which merged with and into VFIA on July 1, 2022, and the portfolio management team of which now operates as the Newfleet division of VFIA, had been an investment adviser since 1989.

For its services as a subadviser, the Adviser pays Newfleet a fee at the annual rate of 50% of the net advisory fee paid by the Short Duration High Income Fund.

#### Seix — High Yield Fund
The Seix division of VFIA is a fundamental, credit driven fixed income boutique specializing in investment grade and high yield bond and leveraged loan management. Seix has employed its bottom-up, research-oriented approach to fixed income management for over 20 years. The entity that is now VFIA, and the former portfolio management team of which now operates as the Seix division of VFIA, was established in 2008. Its predecessor, Seix Investment Advisors, Inc., was founded in 1992 and was independently owned until 2004 when the firm joined the entity now known as Virtus Fund Advisers, LLC, as the institutional fixed income management division. As of September 30, 2022, the Seix division of VFIA managed approximately $13.3 billion in assets under management.

For its services as subadviser, VIA pays Seix a fee at the rate of 50% of the net advisory fee paid by High Yield Fund.

#### Voya — Convertible Fund
Voya is located at 230 Park Avenue, New York, NY 10169 and is a wholly-owned subsidiary of Voya Investment Management LLC ("Voya IM LLC"), a registered investment adviser, which in turn is a wholly owned subsidiary of VIM Holdings LLC, a Delaware limited liability company. Voya Financial, Inc., a publicly traded company (NYSE: VOYA), holds a 76% economic stake in VIM Holdings LLC through its subsidiary Voya Holdings Inc. As of July 25, 2022, Allianz SE, a stock corporation organized and existing under the laws of the European Union and the Federal Republic of Germany, holds an indirect 24% economic stake in VIM Holdings LLC as a result of a transaction combining Voya IM LLC with the assets and teams comprising specified transferred strategies formerly managed by Allianz Global Investors U.S. LLC. Voya began business as an investment adviser on November 6, 1972, under the name of Aetna Capital Management, Inc. As of September 30, 2022, managed $369.2 billion, of which $317.2 billion is regulatory assets under management and $51.9 billion was model/emulation assets under control. Model/emulation assets refer to assets that Voya is under contract to deliver a model portfolio to and are not considered regulatory assets under management.

For its services as subadviser, the Adviser pays Voya a fee at the rate of 50% of the net advisory fee paid by each Fund for which Voya acts as subadviser.

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#### Subadvisory Fees
The following table shows the dollar amount of fees payable to each subadviser for managing the applicable Fund(s), the amount of expenses reimbursed by the subadviser, and the actual fee received by the subadviser for the period February 1, 2021 through September 30, 2021, and the fiscal year ended September 30, 2022.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **<u>Gross Subadvisory Fee ($)</u>** | **<u>Gross Subadvisory Fee ($)</u>** | **Subadvisory Fee Waiver and/or Expense Reimbursed ($)** | **Subadvisory Fee Waiver and/or Expense Reimbursed ($)** | **Net Subadvisory Fee ($)** | **Net Subadvisory Fee ($)** |
| **Fund** | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** |
| Convertible Fund | 5618573 | 6727666 | 1215575 | 1417313 | 4402998 | 5310353 |
| Emerging Markets Value Fund | 453414 | 507993 | 207611 | 216945 | 245803 | 291048 |
| Global Allocation Fund | 690904 | 761290 | 717021 | 622418 | (26117) | 138872 |
| Global Sustainability Fund | 371781 | 462240 | 197452 | 211879 | 174329 | 250361 |
| High Yield Income Fund | 112626 | 128733 | 4143 | 44258 | 108483 | 84475 |
| International Small-Cap Fund | 290747 | 267375 | 105861 | 87065 | 184886 | 180310 |
| Short Duration High Income Fund | 1239742 | 1742694 | 323138 | 261211 | 916604 | 1481483 |
| Water Fund | 3005483 | 4407510 | 971107 | 1234241 | 2034376 | 3173269 |

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#### Administrator
For periods prior to February 1, 2021, in its capacity as investment adviser to the Funds during those periods, in addition to its investment advisory services, AllianzGI U.S. provided administrative services to the Funds pursuant to the investment advisory agreement then in effect. Such services included shareholder servicing, accounting, bookkeeping, internal audit services and certain other services required by the Funds, and preparation of reports to Funds' shareholders and regulatory filings. Relatedly, AllianzGI U.S. (in some cases, together with its affiliates or third parties) provided certain other services, including compliance related services such as market timing monitoring and review of regulatory filings, management and coordination of activities of third-party service providers to the Funds such as transfer agency and custodian, maintenance and support services to intermediaries such as broker-dealers and retirement plan administrators, and researching and responding to customer complaints and inquiries and regulatory inquiries.

VFS (the "Administrator") replaced the Former Administrator and became the Trust's administrator effective on February 1, 2021 pursuant to an administration agreement between the Trust and VFA (the "Administration Agreement"). VFS is an indirect, wholly-owned subsidiary of Virtus and an affiliate of the Adviser. For its services as administrator, pursuant to the Administration Agreement, VFS receives an administration fee based upon the average net assets across all series of the Virtus Mutual Funds at the following annual rates:

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| | |
|:---|:---|
| First $15 billion | 0.10% |
| $15+ billion to $30 billion | 0.095% |
| $30+ billion to $50 billion | 0.09% |
| Greater than $50 billion | 0.085% |

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For the purposes of applying the fee breakpoints, the Virtus Mutual Funds' average net assets may be aggregated with the average net assets of the series of VVIT. No fees were paid to VFS prior to February 1, 2021.

For the period February 1, 2021 through September 30, 2021, and the fiscal year ended September 30, 2022 the aggregate amount of the administration fees paid by the Funds to the Administrator was as follows:

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| | | |
|:---|:---|:---|
|  | **Administration Fee ($)** | **Administration Fee ($)** |
| **Fund** | **2/1/21-9/30/2021** | **10/1/21-9/30/2022** |
| Convertible Fund | 1803906 | 2174251 |
| Emerging Markets Value Fund | 97641 | 110106 |
| Global Allocation Fund | 180658 | 240919 |
| Global Sustainability Fund | 85066 | 106541 |
| High Yield Income Fund | 42877 | 49399 |
| International Small-Cap Fund | 52976 | 57818 |
| Short Duration High Income Fund | 472766 | 669546 |
| Water Fund | 579072 | 855282 |

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#### Sub-administrative and Accounting Agent
The Trust has entered into an agreement with BNY Mellon, 301 Bellevue Parkway, Wilmington, DE 19809, pursuant to which BNY Mellon serves as sub-administrative and accounting agent of the Trust. For its services in this capacity, BNY Mellon receives a fee based on the Funds' aggregate average net assets across the Virtus Mutual Funds. In addition to the asset-based fee, BNY Mellon is entitled to certain non-material fees, as well as out of pocket expenses.

Prior to June 14th, 2021, State Street, 801 Pennsylvania Avenue, Kansas City, MO 64105, served as sub-administrative and accounting agent of the Trust.

The following table shows the dollar amount of fees paid to, the amount of fees waived by and the net amount of fees received by the Sub- administrative and Accounting Agent for the period June 14, 2021 through September 30, 2021, and the fiscal year ended September 30, 2022, for its services with respect to each Fund.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Total Sub-Administrative Fees ($)<sup>(\*)</sup>** | **Total Sub-Administrative Fees ($)<sup>(\*)</sup>** | **Fees Waived by Sub- Administrator ($)<sup>(\*)</sup>** | **Fees Waived by Sub- Administrator ($)<sup>(\*)</sup>** | **Net Sub-Administrative Fees ($)<sup>(\*)</sup>** | **Net Sub-Administrative Fees ($)<sup>(\*)</sup>** |
| **Fund** | **6/14/21-9/30/2021** | **10/1/21-9/30/2022** | **6/14/21-9/30/2021** | **10/1/21-9/30/2022** | **6/14/21-9/30/2021** | **10/1/21-9/30/2022** |
| Convertible Fund | 82599 | 251240 | (21703) | (86171) | 60896 | 165069 |
| Emerging Markets Value Fund | 6592 | 20354 | (1217) | (4739) | 5375 | 15615 |
| Global Allocation Fund | 10346 | 34526 | (2204) | (9301) | 8142 | 25225 |
| Global Sustainability Fund | 5834 | 19475 | (951) | (4070) | 4883 | 15405 |
| High Yield Income Fund | 4197 | 13280 | (526) | (2021) | 3671 | 11259 |
| International Small-Cap Fund | 4640 | 81624 | (651) | (25357) | 3989 | 56267 |
| Short Duration High Income Fund | 23155 | 14361 | (5834) | (2473) | 17321 | 11888 |
| Water Fund | 29810 | 100801 | (7079) | (31452) | 22731 | 69349 |

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<sup>(\*)</sup> Prior to June 14th, 2021, State Street, 801 Pennsylvania Avenue, Kansas City, MO 64105, served as sub-administrative and accounting agent of the Trust. Prior to June 14, 2021 no fees were paid to State Street. The dollar amount of fees paid to, the amount of fees waived by and the net amount of fees received by the Sub-administrative and Accounting Agent from June 14, 2021 through June 30, 2021, and the fiscal year ended June 30, 2022 were paid to BNY Mellon.

#### Distributor
Prior to February 1, 2021, Allianz Global Investors Distributors LLC, the Former Distributor, served as the principal underwriter of each class of the Trust's shares pursuant to a distribution contract with the Trust (the "Former Distribution Contract"). The Former Distributor is an indirect, wholly-owned subsidiary of AAM LP. The Former Distributor, located at 1633 Broadway, New York, NY 10019, is a broker- dealer registered with the SEC and a member of FINRA. The Former Distribution Contract was terminated with respect to each Fund or class of shares on February 1, 2021, at which point VP Distributors, a broker-dealer registered with FINRA became the principal underwriter of each class of the Trust's shares. VP Distributors (or the "Distributor") is an indirect, wholly-owned subsidiary of Virtus and an affiliate of the Adviser and serves as distributor of the Funds' shares. The principal office of VP Distributors is located at One Financial Plaza, Hartford, Connecticut 06103. Fund shares are offered on a continuous basis. George R. Aylward, Jennifer Fromm and Richard W. Smirl, each serve as an officer of the Trust and as an officer for the Distributor.

The Trust and VP Distributors have entered into an underwriting agreement (the "Distribution Contract") under which VP Distributors has agreed to use its best efforts to find purchasers for Trust shares and the Trust has granted to VP Distributors the exclusive right to purchase from the Funds and resell, as principal, shares needed to fill unconditional orders for Fund shares. VP Distributors may sell Fund shares through its registered representatives or through securities dealers with whom it has sales agreements. VP Distributors may also sell Fund shares pursuant to sales agreements entered into with bank-affiliated securities brokers who, acting as agent for their customers, place orders for Fund shares with VP Distributors. It is not anticipated that termination of sales agreements with banks and bank affiliated securities brokers would result in a loss to their customers or a change in the NAV per share of a Fund of the Trust.

The Distribution Contract is terminable with respect to a Fund or class of shares without penalty, at any time, by the Fund or class by not more than 60 days' nor less than 30 days' written notice to the Distributor, or by the Distributor upon not more than 60 days' nor less than 30 days' written notice to the Trust. The Distributor is not obligated to sell any specific amount of Trust shares.

The Distribution Contract will continue in effect with respect to each Fund, and each class of shares thereof, for successive one-year periods, provided that each such continuance is specifically approved (i) by the vote of a majority of the entire Board of Trustees or by the majority of the outstanding shares of the Fund or class, and (ii) by a majority of the Trustees who are not interested persons (as defined in the 1940 Act) of the Trust and who have no direct or indirect financial interest in the Distribution Contract or the Distribution and/or Servicing Plans described below, by vote cast in person at a meeting called for such purpose. If the Distribution Contract is terminated (or not renewed) with respect to one or more Funds or classes, it may continue in effect with respect to any fund or class as to which it has not been terminated (or has been renewed).

During the fiscal years ended September 30, 2020, 2021 and 2022, purchasers of shares of the Funds paid aggregate sales charges of $3,610,477, $2,348,806 and $1,061,333, respectively, of which the Distributor received net commissions of $437,084, $324,188 and $215,181, respectively, for

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its services, the balance being paid to dealers. For the fiscal year ended September 30, 2022, the Distributor received net commissions of $112,053 for Class A Shares and deferred sales charges of $66,057 for Class A Shares and $37,071 for Class C Shares.

The underwriting agreement may be terminated at any time by 60 days written notice, without payment of a penalty, by the Distributor, by vote of a majority of the appropriate Class of outstanding voting securities of the Funds, or by vote of a majority of the Trust's Trustees who are not parties to the underwriting agreement or "interested persons" of any party and who have no direct or indirect financial interest in the operation of the Distribution Plans or in any related agreements. The underwriting agreement will terminate automatically in the event of its "assignment," as defined in Section 2(a)(4) of the 1940 Act.

For its services under the underwriting agreement, VP Distributors receives sales charges on transactions in Fund shares and retains such charges less the portion thereof allowed to its registered representatives and to securities dealers and securities brokers with whom it has sales agreements. In addition, VP Distributors may receive payments from the Trust pursuant to the Distribution Plans described below.

The Distributor did not receive any compensation or commissions from the Trust or purchasers of shares, as applicable, during the fiscal years ended September 30, 2020, 2021 and 2022. The following table shows the dollar amount of sales charges paid by the Funds to the Distributor for the period February 1, 2021 through September 30, 2021, and the fiscal year ended September 30, 2022, with respect to sales of Class A Shares of each Fund and the amount of sales charges retained by the Distributor and not reallowed to other persons.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Aggregate Underwriting Commissions ($)** | **Aggregate Underwriting Commissions ($)** | **Amount Retained by the Distributor ($)** | **Amount Retained by the Distributor ($)** | **Amount Reallowed ($)** | **Amount Reallowed ($)** |
|  | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** | **2/1/2021-9/30/2021** | **10/1/2021-9/30/2022** |
| Convertible Fund | 1582343 | 425359  | 207719 | 52593 | 1374624 | 372765 |
| Emerging Markets Value Fund | 9393 | 9093  | 1150 | 199 | 8243 | 8893 |
| Global Allocation Fund | 16452 | 8644  | 2425 | 2105 | 14027 | 6539 |
| Global Sustainability Fund | 42565 | 5120 | 5769 | 998 | 36796 | 4122 |
| High Yield Income Fund | 10552 | 9633  | 1692 | 1265 | 8860 | 8367 |
| International Small-Cap Fund | 1568 | 594  | 42 | 45 | 1526 | 548 |
| Short Duration High Income Fund | 153022 | 87577  | 9309 | 6460 | 143713 | 81116 |
| Water Fund | 487347 | 412187  | 70711 | 48387 | 416636 | 363801 |

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There were no sales charges paid to the Distributor with respect to Class A Shares of the Funds not mentioned below. Shareholders of the Funds below paid Class A deferred sales charges as follows:

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| | |
|:---|:---|
| **Fund** | **Class A Shares** <br>**Deferred Sales**<br> **Charges ($)** |
| Convertible Fund | 53459  |
| Emerging Markets Value Fund | 175  |
| Global Sustainability Fund | 2286  |
| High Yield Income Fund | 3  |
| International Small-Cap Fund | 104  |
| Short Duration High Income Fund | 6965  |
| Water Fund | 3064  |

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#### Dealer Concessions

#### Class A Shares, Class C Shares, and Institutional Class Shares Only
Dealers with whom the Distributor has entered into sales agreements receive a discount or commission on purchases of Class A Shares as set forth below.

#### High Yield Fund

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| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount as a Percentage of Offering Price** |
| Under $50,000 | 3.75% | 3.90% | 3.25% |
| $50,000 but under $100,000 | 3.50 | 3.63 | 3.00 |

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| | | | |
|:---|:---|:---|:---|
| $100,000 but under $250,000 | 3.25 | 3.36 | 2.75 |
| $250,000 but under $500,000 | 2.25 | 2.30 | 2.00 |
| $500,000 but under $1,000,000 | 1.75 | 1.78 | 1.50 |
| $1,000,000 or more |  |  |  |

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#### Short Duration High Income Fund

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| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount or Agency Fee as a Percentage of Offering Price** |
| Under $100,000 | 2.25% | 2.30% | 2.00% |
| $100,000 but under $250,000 | 1.25 | 1.27 | 1.00 |
| $250,000 or more |  |  |  |

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#### All Other Funds

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| | | | |
|:---|:---|:---|:---|
| **Amount of Transaction at Offering Price** | **Sales Charge as a percentage of Offering Price** | **Sales Charge as a Percentage of Amount Invested** | **Dealer Discount as a Percentage of Offering Price** |
| Under $50,000 | 5.50% | 5.82% | 4.75% |
| $50,000 but under $100,000 | 4.50 | 4.71 | 4.00 |
| $100,000 but under $250,000 | 3.50 | 3.63 | 3.00 |
| $250,000 but under $500,000 | 2.50 | 2.56 | 2.00 |
| $500,000 but under $1,000,000 | 2.00 | 2.04 | 1.75 |
| $1,000,000 or more |  |  |  |

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With respect to Class C Shares, the Distributor intends to pay investment dealers a sales commission of 1% of the sale price of Class C Shares sold by such dealers, except for Short Duration High Income Fund, for which the Distributor intends to pay investment dealers a sales commission of 0.75% of the sale price of Class C Shares sold by such dealers. Your broker, dealer or financial professional may also charge you additional commissions or fees for their services in selling shares to you provided they notify the Distributor of their intention to do so.

Dealers and other entities that enter into special arrangements with the Distributor may receive compensation for the sale and promotion of shares of the Funds. Such fees are in addition to the sales commissions referenced above and may be based upon the amount of sales of fund shares by a dealer; the provision of assistance in marketing of Fund shares; access to sales personnel and information dissemination services; and other criteria as established by the Distributor. Depending on the nature of the services, these fees may be paid either from the Funds through distribution fees, service fees or in some cases, the Distributor may pay certain fees from its own profits and resources.

Dealers and other entities that enter into special arrangements with the Distributor or the Transfer Agent may receive compensation from or on behalf of the Funds for providing certain recordkeeping and related services to the Funds or

their shareholders. These fees may also be referred to as shareholder accounting fees, administrative services fees, sub-transfer agent fees or networking fees. They are not for the sale, promotion or marketing of Fund shares.

From its own profits and resources, the Distributor may, from time to time, make payments to qualified wholesalers, registered financial institutions and third party marketers for marketing support services and/or retention of assets. These payments are sometimes referred to as "revenue sharing." Among others, the Distributor has agreed to make such payments for marketing support services to Equitable Advisors, LLC. For all other Virtus Mutual Funds in this SAI, the Distributor may pay broker-dealers a finder's fee in an amount equal to 1.00% of eligible Class A Share purchases from $1,000,000 to $3,000,000, 0.50% on amounts of $3,000,001 to $10,000,000, and 0.25% on amounts greater than $10,000,000. Purchases of Class A Shares by an account in the name of a qualified employee benefit plan are eligible for a finder's fee only if such plan has at least 100 eligible employees. A CDSC may be imposed on certain redemptions made (including exchanges into the Ultra-Short Bond Funds) of such Class A investments. For Seix Short-Term Bond Fund, Seix Short-Term Municipal Bond Fund and Seix U.S. Mortgage Fund, the CDSC may be imposed on redemptions made (including exchanges into the Ultra-Short Bond Funds) within 12 months of a finder's fee being paid; for all other funds (except the Ultra-Short Bond Funds), the CDSC may be imposed on redemptions made (including exchanges into the Ultra-Short Bond Funds) within 18 months of a finder's fee being paid. For Virtus fixed income funds, the CDSC is 0.50%; for all other Virtus Mutual Funds in this SAI (except the Ultra-Short Bond Funds), the CDSC is 1.00%. There is no CDSC or finder's fee applicable to the Ultra-Short Bond Funds (except to the extent an exchange into an

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Ultra-Short Bond Fund triggers a CDSC on the shares being exchanged for the Ultra-Short Bond Fund shares). For purposes of determining the applicability of the CDSC, the 12- or 18-month period, as applicable, begins on the last day of the month preceding the month in which the purchase was made. The Distributor will also pay broker-dealers a service fee of 0.25% beginning in the thirteenth month following purchase of Class A Shares on which a finder's fee has been paid. (For the exact rate for your Fund(s) please refer to the chart in the section of the Funds' prospectus entitled "Sales Charges" under "What are the classes and how do they differ?") VP Distributors reserves the right to discontinue or alter such fee payment plans at any time.

From its own resources or pursuant to the distribution and shareholder servicing plans, and subject to the dealers' prior approval, the Distributor may provide additional compensation to registered representatives of dealers in the form of travel expenses, meals, and lodging associated with training and educational meetings sponsored by the Distributor. The Distributor may also provide gifts amounting in value to less than $100, and occasional meals or entertainment, to registered representatives of dealers. Any such travel expenses, meals, lodging, gifts or entertainment paid will not be preconditioned upon the registered representatives' or dealers' achievement of a sales target. The Distributor may, from time to time, reallow the entire portion of the sales charge on Class A Shares which it normally retains to individual selling dealers. However, such additional reallowance generally will be made only when the selling dealer commits to substantial marketing support such as internal wholesaling through dedicated personnel, internal communications and mass mailings.

The Distributor has also agreed to pay fees to certain distributors for preferred marketing opportunities. These arrangements may be viewed as creating a conflict of interest between these distributors and investors. Investors should make due inquiry of their selling agents to ensure that they are receiving the requisite point of sale disclosures and appropriate recommendations free of any influence by reason of these arrangements.

The categories of payments the Distributor and/or the Transfer Agent may make to other parties are not mutually exclusive, and such parties may receive payments under more than one or all categories. These payments could be significant to a party receiving them, creating a conflict of interest for such party in making investment recommendations to investors. Investors should make due inquiry of any party recommending the Funds for purchase to ensure that such investors are receiving the requisite point of sale disclosures and appropriate recommendations free of any influence by reason of these arrangements.

A document containing information about sales charges, including breakpoint (volume) discounts, is available free of charge on the Internet at virtus.com. In the "Our Products" section, go to the Mutual Funds page under "Individual Investors" and click on the link for Breakpoint (Volume) Discounts.

#### Custodian
The Bank of New York Mellon, 240 Greenwich Street, New York, NY 10286, serves as the custodian (the "Custodian") of the Funds' assets. The Custodian designated by the Board holds the securities in the Funds' portfolios and other assets for safe keeping. The Custodian does not and will not participate in making investment decisions for the Funds. The Trust has authorized the Custodian to appoint one or more sub-custodians for the assets of the Funds held outside the United States. The securities and other assets of each Fund are held by its Custodian or any sub-custodian separate from the securities and assets of each other Fund.

#### Securities Lending Agent
The Funds do not currently engage in securities lending. However, the Trust and individual Funds may determine to lend portfolio securities in the future. Subject to certain conditions, each of the funds may make secured loans of its portfolio securities to brokers, dealers and other financial institutions. The risks in lending portfolio securities, as with other extensions of credit, include possible delay in recovery of the securities or possible loss of rights in the collateral should the borrowers (which typically include broker-dealers and other financial services companies) fail financially. However, such loans will be made only to borrowers that are believed by the subadviser to be of satisfactory credit standing. Securities loans are made to borrowers pursuant to agreements requiring that loans be continuously secured by collateral consisting of U.S. Government securities, cash or cash equivalents (negotiable certificates of deposit, bankers' acceptances or letters of credit) maintained on a daily mark-to-market basis in an amount at least equal at all times to the market value of the securities lent. The borrower pays to the lending fund an amount equal to any dividends or interest received on the securities lent.

The Funds may invest the cash collateral received or receive a fee from the borrower. In the case of cash collateral, a fund typically pays a rebate to the borrower (in addition to payments to its securities lending agent, as described below). Cash collateral that a fund receives may be invested in overnight time deposits, repurchase agreements, interest-bearing or discounted commercial paper (including U.S. dollar- denominated commercial paper of non-U.S. issuers) and/or other short-term money market instruments (generally with remaining maturities of 397 days or less), either directly through joint accounts along with securities lending cash collateral of other funds or indirectly through investments in affiliated or unaffiliated money market funds. Any investment of cash collateral through such joint accounts is subject to conditions established by the SEC staff. Under the terms of a securities lending agency agreement, the investment of cash collateral is at the sole risk of the fund in most cases. Any income or gains and losses from investing and reinvesting any cash collateral delivered by a borrower pursuant to a loan are at the fund's risk (except as provided below), and to the extent any such losses reduce the amount of cash below the amount required to be returned to the borrower upon the termination of any loan, the fund may be required by the securities lending agent to pay or cause to be paid to such borrower an amount equal to such shortfall in cash. A portion

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of any income earned through investment of cash collateral and a portion of any fees received from borrowers may be retained by the funds' securities lending agent, which currently is an affiliate of the Manager. Notwithstanding the foregoing, to the extent such shortfall is with respect to amounts owed to a borrower as a cash collateral fee, the securities lending agency agreement provides that the securities lending agent and the fund share the difference between the income generated on the investment of cash collateral with respect to a loan and the amount to be paid to the borrower as a cash collateral fee.

Investments of cash collateral may lose value and/or become illiquid, although each Fund remains obligated to return the collateral amount to the borrower upon termination or maturity of the securities loan and may realize losses on the collateral investments and/or be required to liquidate other portfolio assets in order to satisfy its obligations. Due to continuing adverse conditions in the mortgage and credit markets, liquidity and related problems in the broader markets for commercial paper and other factors, any investments of securities lending collateral by the Funds, including investments in asset-backed commercial paper and notes issued by structured investment vehicles, would present increased credit and liquidity risks. See "Mortgage-Related and Asset-Backed Securities" below for more information. To the extent a Fund invests collateral in instruments that become illiquid, efforts to recall securities and return collateral may force the Fund to liquidate other portfolio holdings in an effort to generate cash.

Any securities lending income would be disclosed as such in the "Statement of Operations" in the Trust's annual report for the applicable fiscal period. The Funds may pay reasonable finders', administration and custodial fees in connection with a loan of securities and may share the interest earned on the collateral with the borrower.

Each Fund may lend portfolio securities up to the maximum percentage set forth in the Prospectus and under "Investment Restrictions— Fundamental Investment Restrictions".

Although control over, and voting rights or rights to consent with respect to, the loaned securities pass to the borrower, the fund, as the lender, retains the right to call the loans and obtain the return of the securities loaned at any time on reasonable notice.

The fund may call such loans in order to sell the securities involved or, if the holders of the securities are asked to vote upon or consent to matters that the Manager believes materially affect the investment, in order to vote the securities. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. These delays and costs could be greater for non-U.S. securities. When engaged in securities lending, each Fund's performance will continue to reflect changes in the value of the securities loaned and will also reflect the receipt of either interest, through investment of cash collateral by the fund in permissible investments, or a fee, if the collateral is U.S. Government securities.

The Funds do not currently have a program in place pursuant to which they may lend portfolio securities and do not expect to lend portfolio securities to a significant degree, but they may establish such a program in the future.

#### Transfer Agent and Sub-Transfer Agent
Through the period ended January 31, 2021, the transfer agent for the Trust was State Street Bank and Trust Company ("State Street"), 2000 Crown Colony Drive, Quincy, Massachusetts 02169. State Street delegated its day-to-day obligations as transfer agent during that time to DST Asset Manager Solutions, Inc., 430 W. 7th Street, Suite 219723, Kansas City, MO 64105-1407 (providing transfer and shareholder servicing services for the Trust's Class A and Class C) and DST Asset Manager Solutions, Inc., 430 W. 7th Street, Suite 219968, Kansas City, MO 64105-1407 (providing transfer agency services for the Trust's Class P, Institutional Class, Class R6 and Administrative Class shares).

As of February 1, 2021, VFS serves as transfer agent for the Trust. Pursuant to a Transfer Agent and Service Agreement, VFS receives a fee, based on the average net assets at an annual rate ranging from 0.045% to 0.0375%. VFS is authorized to engage subagents to perform certain shareholder servicing functions from time to time for which such agents shall be paid a fee by VFS or the Funds. Pursuant to an agreement among the Trust, VFS and DST Asset Manager Solutions Inc, DST served as sub-transfer agent to perform certain shareholder servicing functions for the Funds through June 11, 2021. For performing such services, DST received a monthly fee from the Funds as approved by the Board. Effective June 12, 2021, BNYM serves as sub-transfer agent to perform certain shareholder servicing functions for the Funds and for performing such services, BNYM receives a monthly fee from the Funds as approved by the Board.

#### Legal Counsel to the Trust
Dechert LLP, One Bush Street, Suite 1600, San Francisco, CA, 94104, acts as legal counsel to the Trust and reviews certain legal matters for the Trust in connection with the shares offered by the Prospectus.

#### Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP ("PwC") serves as the independent registered public accounting firm for the Trust. PwC audits the Trust's annual financial statements and expresses an opinion thereon. The independent registered public accounting firm also provides other accounting and tax-related services as requested by the Trust from time to time. PwC's business address is Two Commerce Square, Suite 1800, 2001 Market Street, Philadelphia, PA 19103.

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#### DISTRIBUTION PLANS

#### Multi-Class Plan
The Trust currently offers up to six classes of shares of each of the Funds: Class A, Class C, Class P, Class R6, Institutional Class and Administrative Class shares.

The Trust has adopted a distribution and service plan for Class A Shares and plans and Class C Shares; (collectively, the "Plans") in accordance with Rule 12b-1 under the 1940 Act, to compensate the Distributor for the services it provides and for the expenses it bears under the underwriting agreement. Each class of shares pays a service fee at a rate of 0.25% per annum of the average daily net assets of such class of the Fund and a distribution fee based on average daily net assets at the rate of 0.75% per annum for Class C Shares.

Expenditures under the Plans may consist of: (i) commissions to sales personnel for selling shares of the Fund (including underwriting fees and financing expenses incurred in connection with the payment of commissions); (ii) compensation, sales incentives and payments to sales, marketing and service personnel; (iii) payments to broker-dealers and other financial institutions which have entered into agreements with the Distributor in the form of the Dealer Agreement for Virtus Mutual Funds for services rendered in connection with the sale and distribution of shares of the Fund; (iv) payment of expenses incurred in sales and promotional activities, including advertising expenditures related to the Fund; (v) the costs of preparing and distributing promotional materials; (vi) the cost of printing the Fund's Prospectuses and SAI for distribution to potential investors; (vii) expenses related to the cost of financing or providing such financing from the Distributor's or an affiliate's resources in connection with the Distributor's payment of such distribution expenses; and (viii) such other similar services that the Trustees determine are reasonably calculated to result in the sale of shares of the Fund. From the fees received, the Distributor expects to pay a quarterly fee to qualifying broker-dealer firms, as compensation for providing personal services and/or the maintenance of shareholder accounts, with respect to shares sold by such firms. In the case of shares of the Funds being sold to an affiliated fund of funds, fees payable under the Plans shall be paid to the distributor of the fund of funds. This fee will not exceed on an annual basis 0.25% of the average annual NAV of such shares, and will be in addition to sales charges on Fund shares which are re-allowed to such firms. To the extent that the entire amount of the fees received is not paid to such firms, the balance will serve as compensation for personal and account maintenance services furnished by the Distributor. The Distributor also pays to dealers an additional compensation with respect to Class C Shares at the rate of 0.75% of the average annual NAV of that class.

In order to receive payments under the Plans, participants must meet such qualifications to be established in the sole discretion of the Distributor, such as providing services to the Funds' shareholders; or providing the Funds with more efficient methods of offering shares to coherent groups of clients, members or prospects of a participant; or providing services permitting bulking of purchases or sales, or transmission of such purchases or sales by computerized tape or other electronic equipment; or providing other processing.

On a quarterly basis, the Funds' Board reviews a report on expenditures under the Plans and the purposes for which expenditures were made. The Trustees conduct an additional, more extensive review annually in determining whether the Plans will be continued. By its terms, continuation of the Plans from year to year is contingent on annual approval by a majority of the Funds' Trustees and by a majority of the Trustees who are not "interested persons" (as defined in the 1940 Act) and who have no direct or indirect financial interest in the operation of the Plans or any related agreements (the "Plan Trustees"). The Plans provide that they may not be amended to increase materially the costs which the Funds may bear pursuant to the Plans without approval of the shareholders of that class of the Funds and that other material amendments to the Plans must be approved by a majority of the Plan Trustees by vote cast in person at a meeting called for the purpose of considering such amendments. The Plans further provide that while they are in effect, the selection and nomination of Trustees who are not "interested persons" shall be committed to the discretion of the Trustees who are not "interested persons." The Plans may be terminated at any time by vote of the Plan Trustees or a majority of the outstanding shares of the relevant class of the Funds.

Under the Trust's Multi-Class Plan, adopted pursuant to Rule 18f-3 under the 1940 Act, shares of each class of each Fund represent an equal pro rata interest in the Fund and, generally, have identical voting, dividend, liquidation, and other rights, preferences, powers, restrictions, limitations, qualifications and terms and conditions, except that: (a) each class has a different designation; (b) each class has exclusive voting rights on any matter submitted to shareholders that relates solely to its distribution or service arrangements; and (c) each class has separate voting rights on any matter submitted to shareholders in which the interests of one class differ from the interests of any other class.

Each class of shares bears any class specific expenses allocated to such class, such as expenses related to the distribution and/or shareholder servicing of such class. In addition, each class may, at the Trustees' discretion, also pay a different share of other expenses, not including advisory or custodial fees or other expenses related to the management of the Trust's assets, if these expenses are actually incurred in a different amount by that class, or if the class receives services of a different kind or to a different degree than the other classes. For instance, the various classes pay different fees under the Administration Agreement based on the different levels of administrative services provided to each Class. See "Administrator." All other expenses are allocated to each class on the basis of the net asset value of that class in relation to the net asset value of the particular Fund. Each class may have a differing sales charge structure, and differing exchange and conversion features.

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#### Contingent Deferred Sales Charge and Initial Sales Charge
As described in the Prospectus, a contingent deferred sales charge is imposed upon certain redemptions of Class A and Class C shares. Shareholders purchasing Class A and Class C shares of a Fund through certain intermediaries or in certain types of accounts may be eligible for a sales charge discount. For more information, see Appendix A to the Fund's prospectus. No contingent deferred sales charge is currently imposed upon redemptions of Class P, Class R6, Institutional Class or Administrative Class shares. Because contingent deferred sales charges are calculated on a series-by-series basis, shareholders should consider whether to exchange shares of one Fund for shares of another Fund in the Trust, or shares of a series of Virtus Mutual Funds, prior to redeeming an investment if such an exchange would reduce the contingent deferred sales charge applicable to such redemption.

#### Rule 12b-1 Fees Paid
The following table shows Rule 12b-1 Fees paid by the Funds to the Former Distributor and VP Distributors with respect to Class A Shares and Class C Shares of each Fund for which such fees were paid for the fiscal years ended September 30, 2020, 2021 and 2022. The Rule 12b-1 Fees were primarily used to compensate broker dealers and financial institutions for services that they provided.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **12b-1 Fees Paid ($)** | **12b-1 Fees Paid ($)** | **12b-1 Fees Paid ($)** | **Rule 12b-1 Fees Waived ($)** | **Rule 12b-1 Fees Waived ($)** | **Rule 12b-1 Fees Waived ($)** |
| **Fund** | **2020** | **2021<sup>(\*)</sup>** | **2022** | **2020** | **2021** | **2022** |
| Convertible Fund | 1126205 | 2521104 | 2404454 | N/A | N/A | N/A |
| Water Fund | 1118491 | 1384612 | 1621430 | N/A | N/A | N/A |
| Global Allocation Fund | 164750 | 158614 | 144062 | N/A | N/A | N/A |
| International Small-Cap Fund | 18462 | 20100 | 12964 | N/A | N/A | N/A |
| Short Duration High Income Fund | 853243 | 882584 | 712723 | N/A | N/A | N/A |
| Emerging Markets Value Fund | 45880 | 55578 | 40608 | N/A | N/A | N/A |
| Global Sustainability Fund | 4570 | 15742 | 17757 | N/A | N/A | N/A |
| High Yield Income Fund | 95795 | 84170 | 63900 | N/A | N/A | N/A |

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<sup>(\*)</sup> For periods prior to February 1, 2021, Allianz Global Investors Distributors LLC, served as distributor to the Funds. Effective February 1, 2021, VP Distributors replaced Allianz Global Investors Distributors LLC as distributor to the Funds. All 12b-1 fees paid prior to February 1, 2021 were paid to Allianz Global Investors Distributors LLC, and all 12b-1 fees paid from February 1, 2021 through June 30, 2021 were paid to VP Distributors.

For the fiscal year ended September 30, 2022, the Funds paid Rule 12b-1 fees to the Distributor in the amount of $5,017,898. The Distributor retained $1,136,221 and paid $3,881,677 to unaffiliated broker-dealers. The Rule 12b-1 payments were used for (1) compensation to dealers, $4,282,605; (2) compensation to sales personnel, $2,829,528; (3) advertising costs, $575,135; (4) printing and mailing of prospectuses to other than current shareholders, $7,863; and (5) other, $798,507.

#### Distribution and Administrative Services Plans for Administrative Class Shares
The Trust has adopted an Administrative Services Plan with respect to the Administrative Class shares of each Fund. The Trust also has adopted an Administrative Distribution Plan (together with the Administrative Services Plan, the "Administrative Plans") with respect to the Administrative Class shares of each Fund.

Under the terms of the Administrative Distribution Plan, the Trust is permitted to reimburse, out of the assets attributable to the Administrative Class shares of each applicable Fund, in an amount up to 0.25% on an annual basis of the average daily net assets of that class, financial intermediaries for costs and expenses incurred in connection with the distribution and marketing of Administrative Class shares and/or the provision of certain shareholder services to its customers that invest in Administrative Class shares of the Funds. Such services may include, but are not limited to, the following: providing facilities to answer questions from prospective investors about a Fund; receiving and answering correspondence, including requests for prospectuses and statements of additional information; preparing, printing and delivering the prospectus and shareholder reports to prospective shareholders; complying with federal and state securities laws pertaining to the sale of Administrative Class shares; and assisting investors in completing application forms and selecting dividend and other account options.

Under the terms of the Administrative Services Plan, the Trust is permitted to reimburse, out of the assets attributable to the Administrative Class shares of each Fund, in an amount up to 0.25% on an annual basis of the average daily net assets of that class, financial intermediaries that provide certain administrative services for Administrative Class shareholders. Such services may include, but are not limited to, the following: receiving, aggregating and processing shareholder orders; furnishing shareholder sub-accounting; providing and maintaining elective shareholder services such as check writing and wire transfer services; providing and maintaining pre-authorized investment plans; communicating periodically with shareholders; acting as the sole shareholder of record and nominee for shareholders; maintaining accounting records for shareholders; answering questions and handling correspondence from shareholders about their accounts; and performing similar account administrative services.

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In addition, financial intermediaries that receive fees under the Administrative Distribution Plan or the Administrative Services Plan may in turn pay and/or reimburse all or a portion of those fees to their customers.

The same entity may be the recipient of fees under both the Administrative Distribution Plan and the Administrative Services Plan, but may not receive fees under both plans with respect to the same assets. Fees paid pursuant to either Plan may be paid for shareholder services and the maintenance of shareholder accounts, and therefore may constitute "service fees" for purposes of applicable rules of FINRA. The Administrative Distribution Plan has been adopted in accordance with the requirements of Rule 12b-1 under the 1940 Act and will be administered in accordance with the provisions of that rule.

Each Administrative Plan provides that it may not be amended to increase materially the costs that Administrative Class shareholders may bear under the Plan without the approval of a majority of the outstanding voting securities of the Administrative Class, and by vote of a majority of both (i) the Trustees of the Trust and (ii) those Trustees ("disinterested Administrative Plan Trustees") who are not "interested persons" of the Trust (as defined in the 1940 Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreements related to it, cast in person at a meeting called for the purpose of voting on the Plan and any related amendments.

Each Administrative Plan provides that it shall continue in effect so long as such continuance is specifically approved at least annually by the Trustees and the disinterested Administrative Plan Trustees. Each Administrative Plan provides that any person authorized to direct the disposition of monies paid or payable by a class pursuant to the Plan or any related agreement shall provide to the Trustees, and the Board shall review at least quarterly, a written report of the amounts so expended and the purposes for which such expenditures were made.

Each Administrative Plan is a "reimbursement plan," which means that fees are payable to the relevant financial intermediary only to the extent necessary to reimburse expenses incurred pursuant to such plan. Each Administrative Plan provides that expenses payable under the Plan may be carried forward for reimbursement for up to twelve months beyond the date in which the expense is incurred, subject to the limit that not more than 0.25% of the average daily net assets of Administrative Class shares may be used in any month to pay expenses under the Plan. Each Administrative Plan requires that Administrative Class shares incur no interest or carrying charges.

Rules of FINRA limit the amount of distribution fees that may be paid by mutual funds. "Service fees," defined to mean fees paid for providing shareholder services or the maintenance of accounts (but not transfer agency services) are not subject to the limits. The Trust believes that some, if not all, of the fees paid pursuant to both Administrative Plans will qualify as "service fees" and therefore will not be limited by FINRA rules.

#### Additional Information About Institutional Class and Administrative Class Shares
Institutional and Administrative Class shares of the Trust may also be offered through brokers, other financial intermediaries and other entities, such as benefit or savings plans and their sponsors or service providers ("service agents"), that have established a shareholder servicing relationship with respect to the Trust on behalf of their customers. The Distributor, VIA and their affiliates may pay, out of the fees they receive from the Funds and/or their own assets, amounts to service agents for providing bona fide shareholder services to shareholders holding such shares through such service agents. Such services may include, but are not limited to, the following: processing and mailing trade confirmations, monthly statements, prospectuses, annual reports, semi-annual reports and shareholder notices and other SEC required communications; capturing and processing tax data; issuing and mailing dividend checks to shareholders who have selected cash distributions; preparing record date shareholder lists for proxy solicitations; collecting and posting distributions to shareholder accounts; and establishing and maintaining systematic withdrawals and automated investment plans and shareholder account registrations. Service agents may impose additional or different conditions than the Trust on the purchase, redemption or exchanges of Trust shares by their customers. Service agents may also independently establish and charge their customers transaction fees, account fees and other amounts in connection with purchases, sales and redemption of Trust shares in addition to any fees charged by the Trust. Each service agent is responsible for transmitting to its customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and redemptions. Shareholders who are customers of service agents should consult their service agents for information regarding these fees and conditions.

#### Additional Information About Class P Shares
The Trust has adopted an Administrative Services Plan for Class P shares of the Funds. The Plan allows a Fund to use its Class P assets to pay financial intermediaries that provide services relating to Class P shares. The Administrative Services Plan permits payments for the provision of certain administrative, recordkeeping and other services to Class P shareholders. The Plan permits a Fund to make service fee payments at an annual rate of up to 0.10% of the Fund's average daily net assets attributable to its Class P shares. Because these fees are paid out of a Fund's Class P assets on an ongoing basis, over time they will increase the cost of an investment in Class P shares. Class P shares of each Fund may be offered through certain brokers and financial intermediaries ("service agents") that have established a shareholder servicing relationship with the Trust on behalf of their customers. The Adviser may make arrangements for the Funds to make payments, directly or through the Adviser or its affiliate, with respect to Class P shares of each Fund held through such service agents, including, without limitation, the following services: receiving, aggregating and processing purchase, redemption and exchange orders at the service agent level; furnishing shareholder sub-accounting; providing and maintaining elective services with respect to Class P shares such as check writing and wire transfer services; providing and maintaining

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pre-authorized investment plans; communicating periodically with shareholders; acting as the sole shareholder of record and nominee for holders of Class P shares; maintaining accounting records for shareholders; answering questions and handling correspondence from shareholders about their accounts; issuing confirmations for transactions by shareholders; and performing similar account administrative services. These payments are made to financial intermediaries selected by the Adviser and/or its affiliates. The actual services provided, and the payments made for such services, vary from firm to firm. For these services, each Fund may pay an annual fee of up to 0.10% of the value of the assets in the relevant accounts. The Adviser and/or its affiliates may make payments to service agents for the services described in this paragraph on top of the 0.10% that each Fund may pay to such agents. The aggregate rate of such payments by a Fund and the Adviser and/or its affiliates with regard to Class P shares may vary from service agent to service agent and, in certain circumstances, may exceed 0.10% per annum for any individual service agent. These amounts would be in addition to amounts paid to the Trust's transfer agents or other service providers. Service agents may impose additional or different conditions than the Trust on the purchase, redemption or exchanges of Trust shares by their customers. Service agents may also independently establish and charge their customers transaction fees, account fees and other amounts in connection with purchases, sales and redemption of Trust shares in addition to any fees charged by the Trust. Each service agent is responsible for transmitting to its customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and redemptions. Shareholders who are customers of service agents should consult their service agents for information regarding these fees and conditions. In addition, the Distributor, the Adviser and their affiliates may also make payments out of the fees they receive from the Funds and/or their own resources, to financial intermediaries for services that may be deemed to be primarily intended to result in the sale of Class P shares of the Funds. The payments described in this paragraph may be significant to the payors and the payees.

#### Additional Information About Automatic Conversion of Class C Shares Into Class A Shares
With certain exceptions, all Class C shares of a Fund that were purchased eight years or more prior to the Class C Conversion Date automatically convert to Class A shares of the same Fund (the "Class C to A Conversion"). After the Class C Conversion Date, all Class C shares of a Fund held in accounts directly with the Trust's transfer agent will automatically convert to Class A shares of the same Fund on or about the first business day of the month following the eight-year anniversary of purchase. After the Class C Conversion Date, all Class C shares of a Fund held through a financial intermediary (subject to the exceptions noted below) will automatically convert to Class A shares of the same Fund following the eight-year anniversary of purchase. Although the timing of this conversion may differ from the timing stated above, it is expected to occur during the month following the eight-year anniversary of purchase. Such conversions will be effected on the basis of the relative net asset values of the Class C and Class A shares involved in the conversion. When Class C shares convert, any other Class C shares that were acquired by the shareholder by the reinvestment of dividends or distributions will also convert to Class A shares on a pro rata basis. The Class C to A Conversion is subject to the limitation that if, after the Class C Conversion Date, the Class A shareholders of a Fund approve any material increase in expenses allocated to that class (including 12b-1 Fees) without the approval of the then-existing Class C shareholders, Class C shares will cease automatically converting into Class A shares.

Class C shares held through a financial intermediary in an omnibus account will be converted into Class A shares only if the intermediary can document that the shareholder has met the required holding period. It is the financial intermediary's (and not the applicable Fund's) responsibility to keep records and to ensure that the shareholder is credited with the proper holding period. Not all financial intermediaries track purchases to credit individual shareholders' holding periods. In particular, group retirement plans held through third party intermediaries that hold Class C shares in an omnibus account in certain instances do not track participant level share lot aging. Please consult with your financial intermediary about your eligibility to exercise this conversion privilege.

#### Additional Payments to the Distributor
Pursuant to an inter-company agreement between the Adviser and the Distributor, the Adviser pays the Distributor a monthly fee to provide support for the Distributor's business activities based on a cost plus 5% fee arrangement. Such payments are due and payable out of the past profits and/or other resources available to the Adviser.

#### PORTFOLIO MANAGERS

#### Other Accounts Managed by Portfolio Managers and Potential Conflicts of Interest
As described in each Fund's prospectus, the portfolio manager(s) who are responsible for the Funds are:

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| | |
|:---|:---|
| **Fund** | **Portfolio Manager(s)** |
| Convertible Fund | Justin Kass, CFA<br>David J. Oberto<br>Ethan Turner, CFA<br>Michael E. Yee |

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| | |
|:---|:---|
| **Fund** | **Portfolio Manager(s)** |
| Emerging Markets Value Fund | R. Burns McKinney, CFA<br>John R. Mowrey, CFA<br>Thomas W. Oliver, CFA<br>J. Garth Reilly |
| Global Allocation Fund | Heather Bergman, Ph.D.<br>Kunal Ghosh (Equity Sleeve)<br>Paul Pietranico, CFA<br>Michael Rothstein, CFA, FRM, CAIA<br>David Torchia (Fixed Income Sleeve) |
| Global Sustainability Fund | R. Burns McKinney, CFA<br>John R. Mowrey, CFA<br>Thomas W. Oliver, CFA, CPA<br>Jeff N. Reed, CFA<br>J. Garth Reilly |
| High Yield Fund | James FitzPatrick<br>Michael Kirkpatrick |
| International Small-Cap Fund | Kunal Ghosh<br>Lu Yu, CFA, CIPM |
| Short Duration High Income Fund | David L. Albrycht, CFA<br>William J. Eastwood, CFA<br>Eric Hess, CFA<br>Kyle A. Jennings, CFA<br>Francesco Ossino |
| Water Fund | David D. Grumhaus, Jr.<br>Evan Lang, CFA |

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There may be certain inherent conflicts of interest that arise in connection with the portfolio managers' management of a Fund's investments and the investments of any other accounts they manage. Such conflicts could include the aggregation of orders for all accounts managed by a particular portfolio manager, the allocation of purchases across all such accounts, the allocation of IPOs and any soft dollar arrangements that the relevant subadviser may have in place that could benefit the Funds and/or such other accounts. The Board has adopted on behalf of the Funds policies and procedures designed to address any such conflicts of interest to ensure that all transactions are executed in the best interest of the Funds' shareholders. Each subadviser is required to certify its compliance with these procedures to the Board on a quarterly basis. There have been no material compliance issues with respect to any of these policies and procedures during the Funds' most recent fiscal year. Additionally, any conflicts of interest between the investment strategies of a Fund and the investment strategies of other accounts managed by portfolio managers are not expected to be material since portfolio managers generally manage funds and other accounts having similar investment strategies.

#### Potential Conflicts of Interest
The Trust, its Adviser, subadvisers and Distributor have each adopted a Code of Ethics pursuant to Rule 17j-1 under the 1940 Act. Personnel subject to the Codes of Ethics may purchase and sell securities for their personal accounts, including securities that may be purchased, sold or held by the Funds, subject to certain restrictions and conditions. Generally, personal securities transactions are subject to preclearance procedures, reporting requirements and holding period rules.

The Codes also restrict personal securities transactions in private placements, initial public offerings and securities in which a Fund has a pending order. The Trust has also adopted a Code of Ethics for Chief Executive and Senior Financial Officers as required by Section 406 of the Sarbanes-Oxley Act of 2002.

The following tables provide information as of September 30, 2022, regarding all accounts managed by the portfolio managers and portfolio management team members for each of the Funds as named in the prospectus. In the tables, Registered Investment Companies include all open and closed-end mutual funds. Pooled Investment Vehicles include, but are not limited to, securities of issuers exempt from registration under Section 3(c) of the Investment Company Act, such as private placements and hedge funds. Other accounts would include, but are not limited to, individual managed accounts, separate accounts, institutional accounts, pension funds, collateralized bond obligations and collateralized debt obligations.

The portfolio managers managing the Funds may also manage or be members of management teams for other Virtus Mutual Funds or other similar accounts.

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#### Other Accounts Managed (No Performance-Based Fees)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Registered Investment Companies** | **Registered Investment Companies** | **Other Pooled Investment Vehicles** | **Other Pooled Investment Vehicles** | **Other Accounts** | **Other Accounts** |
| **Portfolio Manager** | **Number of Accounts** | **Total Assets** | **Number of Accounts** | **Total Assets** | **Number of Accounts** | **Total Assets** |
| David L. Albrycht | 16 | $7,95 billion | 2 | $91.5 million | 0 | N/A |
| Heather Bergman | 0 | N/A | 12 | $800 million | 0 | N/A |
| William J. Eastwood | 3 | $608 million | 0 | N/A | 0 | N/A |
| James FitzPatrick | 4 | $679 million | 2 | $186 million | 19 | $2.0 billion |
| Kunal Ghosh | 4 | $500 million | 2 | $200 million | 1 | $10 million |
| David D. Grumhaus, Jr. | 1 | $30.7 billion | 0 | N/A | 0 | N/A |
| Eric Hess | 3 | $608 million | 0 | N/A | 0 | N/A |
| Kyle A. Jennings | 4 | $886 million | 1 | $142 million | 0 | N/A |
| Justin Kass | 8 | $8.25 billion | 11 | $42.2 billion | 7 | $1.40 billion |
| Evan Lang | 0 | N/A | 0 | N/A | 0 | N/A |
| Michael Kirkpatrick | 4 | $679 million | 2 | $186 million | 19 | $2.0 billion |
| R. Burns McKinney | 5 | $1.14 billion | 2 | $928 million | 40 | $2.71 billion |
| John R. Mowrey | 6 | $2.23 billion | 2 | $928 million | 54 | $3.05 billion |
| David J. Oberto | 7 | $7.79 billion | 10 | $40.4 billion | 6 | $1.31 billion |
| Thomas W. Oliver | 4 | $1.06 billion | 2 | $928 million | 53 | $2.91 billion |
| Francesco Ossino | 4 | $739 million | 1 | $142 million | 0 | N/A |
| Paul Pietranico | 0 | N/A | 12 | $800 million | 0 | N/A |
| Jeff N. Reed | 5 | $2.34 billion | 1 | $27 million | 58 | $3.01 billion |
| J. Garth Reilly | 5 | $1.57 billion | 0 | N/A | 29 | $614 million |
| Michael Rothstein | 0 | N/A | 0 | N/A | 0 | N/A |
| David Torchia | 3 | $145 million | 13 | $2.05 billion | 9 | $1.37 billion |
| Ethan Turner | 0 | N/A | 1 | $90 million | 0 | N/A |
| Lu Yu | 3 | $200 million | 2 | $200 million | 1 | $10 million |
| Michael E. Yee | 6 | $7.60 billion | 8 | $40.24 billion | 5 | $1.24 billion |

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#### Other Accounts Managed (With Performance-Based Fees)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Registered Investment Companies** | **Registered Investment Companies** | **Other Pooled Investment Vehicles** | **Other Pooled Investment Vehicles** | **Other Accounts** | **Other Accounts** |
| **Portfolio Manager** | **Number of Accounts** | **Total Assets** | **Number of Accounts** | **Total Assets** | **Number of Accounts** | **Total Assets** |
| David L. Albrycht | 1 | $59.8 million | 0 | N/A | 0 | N/A |
| David Torchia | 1 | $26 million | 0 | N/A | 1 | $1.05 billion |

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#### Portfolio Manager Compensation

#### Compensation Structure for Duff & Phelps, Newfleet and VIA
Virtus and certain of its affiliated investment management firms, including Duff & Phelps, Newfleet and VIA (collectively, "Virtus"), believe that the firm's compensation program is adequate and competitive to attract and retain high-caliber investment professionals. Investment professionals at Virtus receive a competitive base salary, an incentive bonus opportunity and a benefits package. Certain professionals who supervise and manage others also participate in a management incentive program reflecting their personal contribution and team performance. Certain key individuals also have the opportunity to take advantage of a long-term incentive compensation program, including potential awards of Virtus restricted stock units ("Virtus RSUs") with multi-year vesting, subject to Virtus board of directors' approval. Following is a more detailed description of Virtus' compensation structure.

**Base Salary.** Each portfolio manager is paid a fixed base salary, which is designed to be competitive in light of the individual's experience and responsibilities. Base salary is determined using compensation survey results of investment industry compensation conducted by an independent third party in evaluating competitive market compensation for its investment management professionals.

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**Incentive Bonus.** Annual incentive payments are based on targeted compensation levels, adjusted based on profitability, investment performance factors and a subjective assessment of contribution to the team effort. The short-term incentive payment is generally paid in cash, but a portion may be made in Virtus RSUs and mutual fund investments that appreciate or depreciate in value based on the returns of one or more mutual funds managed by the investment professional. Individual payments are assessed using comparisons of actual investment performance with specific peer group or index measures. (Current benchmarks and/or peer groups are indicated in the table below.) Performance of the Funds managed is generally measured over one-, three- and five-year periods and an individual manager's participation is based on the performance of each Fund/account managed.

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| | |
|:---|:---|
| **Fund** | **Benchmark(s) and/or Peer Group** |
| Short Duration High Income Fund | ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index |
| Water Fund | S&P Global Water Index |

---

While portfolio manager compensation contains a performance component, this component is adjusted to reward investment personnel for managing within the stated framework and for not taking unnecessary risk. This approach ensures that investment management personnel remain focused on managing and acquiring securities that correspond to a Fund's mandate and risk profile and are discouraged from taking on more risk and unnecessary exposure to chase performance for personal gain. We believe we have appropriate controls in place to handle any potential conflicts that may result from a substantial portion of portfolio manager compensation being tied to performance.

**Other Benefits.** Portfolio managers are also eligible to participate in broad-based plans offered generally to employees of Virtus and its affiliates, including 401(k), health and other employee benefit plans.

#### Compensation Structure for NFJ
NFJ compensation is designed to support the organization's values and culture. While acknowledging the importance of financial incentives and seeking to pay competitive compensation, NFJ believes that compensation is only one of a number of critically important elements that allow the emergence of a strong, winning culture that attracts, retains and motivates talented investors and teams. NFJ's compensation system supports its belief that investment professionals are a key element of the company's success in meeting clients' objectives.

The primary components of compensation are the base salary and the annual incentive awards. Each portfolio manager is paid a fixed base salary, which is designed to be competitive in light of the individual's experience and responsibilities. Base salary is determined using compensation survey results of investment industry compensation conducted by an independent third party in evaluating competitive market compensation for its investment management professionals.

Annual incentive awards are based on targeted compensation levels, adjusted based on profitability, investment performance factors and a subjective assessment of contribution to the team effort. The annual incentive pool is funded based on a percentage of pre-incentive operating income, as adjusted. This profit-based formula determines the aggregate incentive funding for all participants in the plan for annual incentive awards. The plan incentive funding is determined based on the results of each year. Up to 20% of the incentive pool is awarded in the form of Virtus Restricted Stock Unit awards (RSUs) and investments in specific mutual funds managed or other products managed or sub-advised by NFJ (Mutual Fund Investments or MFIs). An amount equal to 50% of these awards will be in RSUs and 50% will be in MFIs. The remainder of the Incentive Pool will be in the form of cash awards.

At the end of each year, the incentive pool is allocated based on the individual's incentive target adjusted for investment performance results and individual performance. All team members have agreed upon performance objectives to serve as a basis for performance evaluation during the year. These objectives are both quantitative and qualitative in nature. Quantitative objectives typically align to investment performance and client-stated objectives. Performance of the Funds managed is generally measured over one-, three- and five- year periods and an individual manager's participation is based on the performance of each Fund/account managed. Qualitative objectives reflect contributions to broader team goals, such as collaboration, contributions made to client review meetings, product development and product refinement initiatives.

**Other Benefits.** Portfolio managers are also eligible to participate in broad-based plans offered generally to employees of Virtus and its affiliates, including 401(k), health and other employee benefit plans.

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#### Compensation Structure for Seix
Portfolio manager compensation generally consists of base salary, bonus, and various employee benefits and may also include long-term stock awards, deferred cash, retention bonuses, and/or incentive guarantees. These components are tailored in an effort to retain high quality investment professionals and to align compensation with performance.

A portfolio manager's base salary is determined by the individual's experience, responsibilities within the firm, performance in the role, and market rate for the position.

Each portfolio manager's bonus incorporates an evaluation of the Fund's investment performance as well as other factors, including subjective factors. Investment performance may be evaluated directly against a peer group and/or benchmark, or indirectly by measuring overall business unit financial performance over a period of time. Where applicable, investment performance is determined by comparing a Fund's pre-tax total return to the returns of the Fund's peer group and/or benchmark over multi-year periods. Where portfolio managers are responsible for multiple Funds or other managed accounts, each product is weighted based on its size and relative strategic importance to the Adviser and/or Subadviser. Other factors that may be considered in the calculation or payout of incentive bonuses include: adherence to compliance policies, risk management practices, sales/marketing, leadership, communications, corporate citizenship, and overall contribution to the firm. Bonuses are typically paid annually.

Retention bonuses and/or incentive guarantees for a fixed period may also be used when the Adviser and/or Subadviser deem it necessary to recruit or retain the employee.

All full-time employees of the Adviser and Subadvisers, including the Funds' portfolio managers, are provided a benefits package on substantially similar terms. The percentage of each individual's compensation provided by these benefits is dependent upon length of employment, salary level, and several other factors.

#### Compensation Structure for Voya
Voya IM's compensation philosophy is to align compensation closely with performance and to leverage the variable side of the compensation equation. Annually, Voya IM LLC participates in comprehensive industry surveys and compares the relevant data to ensure that its compensation plans remain competitive.

Key investment professionals such as portfolio managers and traders are paid competitive base salaries, are eligible for discretionary bonuses, and generally participate in Voya IM LLC's long-term compensation program.

**Bonus Program.** The overall design of the annual incentive plan for investment professionals was developed to tie pay to both portfolio performance and profitability and is structured to drive performance and promote retention of top talent. Individual bonus target awards are based on external market data and internal comparators.

Investment performance is measured on both relative and absolute performance in all areas, and performance goals are set to appropriately reflect requirements for the investment team. The results for overall Voya IM LLC include a review of firm profitability, team performance and the investment professional's individual performance, all of which influence the outcome of the discretionary bonus award recommendation process. The measures for each team are reviewed annually by Voya IM LLC's executive management, and include the measures of investment performance versus benchmark and peer groups over one-, three- and five-year periods, as well as contributions to Voya IM LLC's revenue growth and profitability.

Discretionary bonuses for non-investment professionals are structured similarly. The annual incentive bonus may be subject to deferral into a long-term compensation plan, as determined by the plan in effect at the time of payment.

**Long-term Compensation.** Voya IM LLC's long-term incentive plan is designed to provide ownership-like incentives to reward continued employment and to link long-term compensation to the financial performance of the business. Based on job function, internal comparators and external market data, employees may be granted long-term awards. All senior investment professionals participate in the long-term compensation plan. Participants are eligible to receive annual awards determined by the Executive Leadership Team based largely on investment performance and their contribution to firm performance. Plan awards are based on the current year's performance as defined by Voya IM LLC's component of the annual incentive plan. Awards may include a combination of performance share units, restricted stock units, and/or a notional investment in a predefined set of Voya mutual funds. Awards are subject to a time-based vesting schedule.

#### Portfolio Manager Fund Ownership
The following table states, as of September 30, 2022, (i) the dollar range of equity securities beneficially owned by each Portfolio Manager in each Fund that he or she managed, and (ii) to the extent such information is applicable and has been made available to the Funds, the dollar range of financial exposure, including through compensation plans, to any other investment vehicles he or she managed that have substantially similar investment objectives, policies and strategies to such Funds. The other investment vehicles may include separately managed accounts or private placement vehicles, and the financial exposure to such other investment vehicles may or may not include ownership from a legal perspective. Typically, exposure through a deferred compensation plan does not include legal ownership, but the plan participant's account value rises and falls with the value of the investments selected within the plan.

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---

| | | | |
|:---|:---|:---|:---|
| **Portfolio Manager** | **Fund** | **Dollar Range of Equity Securities Beneficially Owned in Fund Managed** | **Dollar Value of Financial Exposure Through Similar Strategies** |
| David L. Albrycht<sup>(1)</sup> | Short Duration High Income Fund |  |  |
| Heather Bergman | Global Allocation Fund | $100001 - $500000 | $50001 - $100000 |
| William J. Eastwood<sup>(1)</sup> | Short Duration High Income Fund |  |  |
| James FitzPatrick<sup>(2)</sup> | High Yield Fund |  | $10000 - $50000 |
| Kunal Ghosh<sup>(3)(4)</sup> | Global Allocation Fund<br>International Small-Cap Fund | None<br>None | None<br>None |
| David D. Grumhaus, Jr.<sup>(5)</sup> | Water Fund | $10001 - $50000 |  |
| Eric Hess<sup>(1)</sup> | Short Duration High Income Fund |  |  |
| Kyle A. Jennings<sup>(1)</sup> | Short Duration High Income Fund |  |  |
| Justin Kass | Convertible Fund | Over $1,000,000 |  |
| Evan Lang<sup>(6)</sup> | Water Fund | $10001 - $50000 |  |
| Michael Kirkpatrick<sup>(2)</sup> | High Yield Fund |  | $100000 - $500000 |
| R. Burns McKinney<sup>(7)</sup> | Emerging Markets Value Fund<br>Global Sustainability Fund | $10,001 - $50,000<br>None | None<br>None |
| John R. Mowrey<sup>(7)</sup> | Emerging Markets Value Fund<br>Global Sustainability Fund | $500,001 - $1,000,000<br>None | $50,001 - $100,000<br>None |
| David J. Oberto | Convertible Fund | Over $1,000,000 |  |
| Thomas W. Oliver<sup>(7)</sup> | Emerging Markets Value Fund<br>Global Sustainability Fund | $100,001 - $500,000<br>None | None<br>None |
| Francessco Ossino<sup>(1)</sup> | Short Duration High Income Fund |  |  |
| Paul Pietranico | Global Allocation Fund | $10001 - $50000 |  |
| Jeff N. Reed<sup>(7)</sup> | Global Sustainability Fund |  |  |
| J. Garth Reilly<sup>(7)</sup> | Emerging Markets Value Fund<br>Global Sustainability Fund | $100001 - $500000<br>$10001 - $50000 | $10,001 - $50,000 <br>None |
| Michael Rothstein<sup>(8)</sup> | Global Allocation Fund |  |  |
| David Torchia<sup>(4)</sup> | Global Allocation Fund |  |  |
| Ethan Turner<sup>(9)</sup> | Convertible Fund | $500001 - $1000000 |  |
| Michael E. Yee | Convertible Fund | Over $1,000,000 |  |
| Lu Yu<sup>(3)</sup> | International Small-Cap Fund | $50001 - $100000 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Became Portfolio Manager of the Short Duration High Income Fund effective July 25, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Became Portfolio Manager of the High Yield Fund effective July 25, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Became Portfolio Manager of the International Small-Cap Fund effective July 25, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Became Portfolio Manager of the Global Allocation Fund effective July 25, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Became Portfolio Manager of the Water Fund effective July 25, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Became Portfolio Manager of the Water Fund effective August 22, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Became Portfolio Manager of the Global Sustainability Fund effective July 25, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Became Portfolio Manager of the Global Allocation Fund effective January 27, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Became Portfolio Manager of the Convertible Fund effective January 27, 2023.

#### BROKERAGE ALLOCATION AND OTHER PRACTICES
In effecting transactions for the Funds, the adviser or applicable subadviser (throughout this section, "Subadviser") adheres to the Trust's policy of seeking best execution and price, determined as described below, except to the extent it is permitted to pay higher brokerage commissions for "brokerage and research services" as defined herein. The determination of what may constitute best execution and price in the execution of a securities transaction by a broker involves a number of considerations including, without limitation, the overall direct net economic result to the Funds (involving both price paid or received and any commissions and other costs paid), the efficiency with which the transaction is effected, the ability to effect the transaction at all where a large block is involved, availability of the broker to stand ready to execute possibly difficult transactions in the future, the financial strength and stability of the broker and its ability to provide research services. Such considerations are judgmental and are weighed by the Subadviser in determining the overall reasonableness of brokerage commissions paid by the Funds.

The Subadviser may cause a Fund to pay a broker an amount of commission for effecting a securities transaction in excess of the amount of commission which another broker or dealer would have charged for effecting that transaction if the Subadviser determines in good faith that such

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amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker. As provided in Section 28(e) of the Securities Exchange Act of 1934, "brokerage and research services" include advising as to the value of securities, the advisability of investing in, purchasing or selling securities, the availability of securities or purchasers or sellers of securities; furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy and the performance of accounts, and effecting securities transactions and performing functions incidental thereto (such as clearance and settlement). Brokerage and research services provided by brokers to the Funds are considered to be in addition to and not in lieu of services required to be performed by each Subadviser under its contract with the Trust and may benefit both the Funds and other accounts of the Subadviser. Conversely, brokerage and research services provided by brokers to other accounts of the Subadviser may benefit the Funds.

If the securities in which a particular Fund invests are traded primarily in the over-the-counter market, where possible the Fund will deal directly with the dealers who make a market in the securities involved unless better prices and executions are available elsewhere. Such securities may be purchased directly from the issuer. Bonds and money market instruments are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes.

Some fund transactions are, subject to the Conduct Rules of the FINRA and to obtaining best prices and executions, effected through dealers (excluding VP Distributors) who sell shares of the Funds.

The Trust has Board-approved policies and procedures reasonably designed to prevent (i) the Subadvisers' personnel responsible for the selection of broker-dealers to effect fund portfolio securities transactions from taking into account, in making those decisions, a broker-dealer's promotion or sales efforts, and (ii) the Trust, its Adviser, Subadvisers and Distributor from entering into any agreement or other understanding under which the Funds direct brokerage transactions or revenue generated by those transactions to a broker-dealer to pay for distribution of Fund shares. These policies and procedures are designed to prevent the Trust from entering into informal arrangements to direct portfolio securities transactions to a particular broker.

The Trust has adopted a policy governing the execution of aggregated advisory client orders ("bunching policy") in an attempt to lower commission costs on a per-share and per-dollar basis. According to the bunching policy, no Subadviser shall aggregate transactions unless it believes in its sole discretion that such aggregation is consistent with its duty to seek best execution (which shall include the duty to seek best price) for the Funds. No advisory account of the Subadviser is to be favored over any other account and each account that participates in an aggregated order is expected to participate at the average share price for all transactions of the Subadviser in that security on a given business day, with all transaction costs shared pro rata based on the Fund's participation in the transaction. If the aggregated order is filled in its entirety, it shall be allocated among the Subadviser's accounts in accordance with the allocation order, and if the order is partially filled, it shall be allocated pro rata based on the allocation order. Notwithstanding the foregoing, the order may be allocated on a basis different from that specified in the allocation order if good reason for such different allocation is provided and approved in accordance with the Subadviser's policies and procedures adopted in accordance with the Trust's policy. The Board will review the bunching policy from time to time as they deem appropriate.

The adviser or subadvisers to the underlying mutual funds execute the portfolio transactions for their respective Fund(s). In allocating portfolio transactions, each underlying fund's adviser or subadviser must comply with the brokerage and allocation procedures adopted by the board of trustees of the underlying mutual fund. The above discussion of the portfolio transactions and brokerage procedures of the Funds also applies to those underlying mutual funds that are affiliated with the Fund.

The following table shows aggregate amount of brokerage commissions paid by each Fund for the fiscal years ended September 30, 2020, 2021 and 2022.

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| | | | |
|:---|:---|:---|:---|
|  | **Aggregate Amount of Brokerage Commissions ($)** | **Aggregate Amount of Brokerage Commissions ($)** | **Aggregate Amount of Brokerage Commissions ($)** |
| **Fund** | **2020** | **2021** | **2022** |
| Convertible Fund | 1316 | 213 | 2752 |
| Emerging Markets Value Fund | 265250 | 170756 | 300673 |
| Global Allocation Fund | 14130 | 29420 | 45653 |
| Global Sustainability Fund | 9265 | 18169 | 68367 |
| High Yield Fund | 0 | 0 | 0 |
| International Small-Cap Fund | 103945 | 92113 | 106171 |
| Short Duration High Income Fund | 0 | 0 | 0 |
| Water Fund | 88014 | 91197 | 135509 |

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In fiscal years September 30, 2020, 2021 and 2022, no brokerage commissions were paid by the Funds to any affiliate of the Funds, the Adviser, the Distributor or Former Distributor, or to any affiliate of any affiliate of the Funds, the Adviser, the Distributor or Former Distributor. Brokerage commissions of $170,745 paid during the fiscal year ended September 30, 2022, were paid on portfolio transactions aggregating $484,284,906 executed by brokers who provided research and other statistical information.

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Investment decisions for the Trust are made independently from those of the other investment companies or accounts advised by the Subadvisers. It may frequently happen that the same security is held in the portfolio of more than one fund or account. Simultaneous transactions are inevitable when several funds or accounts are managed by the same investment adviser, particularly when the same security is suited for the investment objectives of more than one fund or account. When two or more funds or accounts advised by a Subadviser are simultaneously engaged in the purchase or sale of the same security, the transactions are allocated among the funds or accounts in a manner equitable to each fund or account. It is recognized that in some cases this system could have a detrimental effect on the price or volume of the security as far as the Funds are concerned. In other cases, however, it is believed that the ability of the funds to participate in volume transactions will produce better executions for the Funds. It is the opinion of the Board of the Trust that the desirability of utilizing each Subadviser as an investment adviser to the Funds outweighs the disadvantages that may be said to exist from simultaneous transactions.

#### Securities of Regular Broker-Dealers
The Funds are required to identify the securities of their regular brokers or dealers (as defined in Rule 10b-1 under the 1940 Act) or their parent companies held by the Funds as of the close of their most recent fiscal year. During the fiscal year ended September 30, 2022, the Funds acquired securities of certain of the Funds' regular broker dealers or the parents of such firms. The aggregate holdings of the Funds of those brokers or dealers as of September 30, 2022 (amounts in thousands) were as follows:

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| | | |
|:---|:---|:---|
| **Fund** | **Broker/Dealer** | **($ in thousands)** |
| Convertible Fund | BARCLAYS CAPITAL, INC. | 12099 |
|  | BOFA SECURITIES, INC | 16711 |
|  | J.P. Morgan Securities LLC | 16152 |
|  | WELLS FARGO SECURITIES, LLC | 38191 |
| Global Allocation Fund | BOFA SECURITIES, INC | 884 |
|  | CitiGroup Global Markets Inc. | 2005 |
|  | GOLDMAN SACHS & CO. LLC | 294 |
|  | J.P. Morgan Securities LLC | 526 |
|  | MORGAN STANLEY & CO. LLC | 742 |
|  | WELLS FARGO SECURITIES, LLC | 292 |
| Global Sustainability Fund | CitiGroup Global Markets Inc. | 1199 |

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#### PURCHASE, REDEMPTION AND PRICING OF SHARES
Purchases, exchanges and redemptions of the Trust's shares are discussed in the Prospectus and that information is incorporated herein by reference. Certain purchases of the Trust's shares are subject to a reduction or elimination of sales charges, as summarized in the Prospectus and as described in greater detail below. Variations in sales charges reflect the varying efforts required to sell shares to separate categories of investors.

#### How to Buy Shares
For Class A Shares and Class C Shares, the minimum initial investment is $2,500 and the minimum subsequent investment is $100. However, both the initial and subsequent minimum investment amounts are $100 for investments pursuant to the "Systematic Purchase" plan, a bank draft investing program administered by the Transfer Agent, or pursuant to the Systematic Exchange privilege or for an IRA. In addition, there are no subsequent minimum investment amounts in connection with the reinvestment of dividend or capital gain distributions.

The minimum initial investment for shares of Institutional Class Shares, Class P and Administrative Class is $1 million, except that the minimum investment may be modified for certain financial intermediaries that submit trades on behalf of underlying investors. There is no minimum additional investment requirement applicable to Institutional Class, Class P and Administrative Class Shares. Institutional Class shares are offered to pension and profit sharing plans, employee benefit trusts, endowments, foundations, corporations and other high net worth individuals. For purchases of Institutional Class Shares by Trustees of the Virtus Mutual Funds and directors, officers and employees of Virtus and its affiliates, the minimum initial investment is waived. Completed applications for the purchase of shares should be mailed to c/o Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. Administrative Class shares are offered primarily through employee benefit plan alliances, broker-dealers and other intermediaries. Class P shares are offered primarily through certain asset allocation, wrap fee and other fee-based programs sponsored by broker-dealers and other financial intermediaries. For omnibus accounts, all minimums apply at the omnibus level and not at the underlying investor level. In addition, the Fund or the Distributor may lower or waive the minimum initial investment for certain categories of investors at their discretion,

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including for Trustees, officers and current and former employees of the Funds, the Adviser, and the Distributor and their immediate family members, and trusts or plans primarily for the benefit of such persons. To obtain more information about exceptions to the minimum initial investment for Class P and Administrative Class shares, please call Virtus Funds at 800-243-1574. Investors who wish to invest in Administrative Class shares by mail may send a completed application form along with a check payable to Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074.

Class R6 Shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only: certain employer sponsored retirement plans, including profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans, plans described in Section 401(k), 403(b) and 457 of the Internal Revenue Code, banks and trust companies, insurance companies, registered investment companies and financial intermediaries utilizing fund shares in fee-based advisory programs. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. In addition, without a minimum initial investment requirement, Class R6 Shares are available to any trustee of the Virtus Funds and trustees/directors of affiliated open- and closed-end funds, directors, officers and employees of Virtus and its affiliates, and a spouse or domestic partner, child or minor grandchild of any such qualifying individual (in each case either individually or jointly with other investors), provided in each case that those shares are held directly with the Transfer Agent or in an eligible account. If you are participating in an employer sponsored retirement plan, such as a 401(k) plan, profit-sharing plan, defined benefit plan or other employer-directed plan, your company will provide you with the information you need to open an account and buy Class R6 Shares. If you are a qualified institutional investor or qualified individual investor as described above, completed applications for the purchase of shares should be mailed to: c/o Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074.

The Trust has authorized one or more brokers to accept on its behalf purchase and redemption orders. Such brokers are authorized to designate other intermediaries to accept purchase and redemption orders on the Trust's behalf.

The Trust will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker's authorized designee, accepts the order. Customer orders will be priced at the Funds' NAVs next computed after they are received in good order by an authorized broker or the broker's authorized designee.

#### Alternative Purchase Arrangements
Shares may be purchased from investment dealers at a price equal to their NAV per share, plus a sales charge which, at the election of the purchaser, may be imposed either (i) at the time of the purchase (the "initial sales charge alternative") or (ii) on a contingent deferred basis (the "deferred sales charge alternative"). Certain Funds also offer Institutional Class Shares that may be purchased by certain institutional investors at a price equal to their NAV per share. Orders received by dealers prior to the close of trading on the NYSE are confirmed at the offering price effective at that time, provided the order is received by an authorized broker or broker's authorized designee prior to its close of business.

The alternative purchase arrangements permit an investor to choose the method of purchasing shares that is more beneficial given the amount of the purchase, the length of time the investor expects to hold the shares, whether the investor wishes to receive distributions in cash or to reinvest them in additional shares of the Funds, and other circumstances. Investors should consider whether, during the anticipated life of their investment in the Fund, the accumulated continuing distribution and services fees and CDSC on Class C Shares would be less than the initial sales charge and accumulated distribution and services fees on Class A Shares purchased at the same time.

Investors should understand that the purpose and function of the CDSC and ongoing distribution and services fees with respect to the Class C Shares are the same as those of the initial sales charge and ongoing distribution and services fees with respect to the Class A Shares.

The distribution expenses incurred by the Distributor in connection with the sale of the shares will be paid, in the case of Class A Shares, from the proceeds of the initial sales charge and the ongoing distribution and services fees. For Class C Shares, the ongoing distribution and services fees will be used to pay for the distribution expenses incurred by the Distributor. Sales personnel of broker-dealers distributing the Funds' shares may receive differing compensation for selling Class A Sharesand Class C Shares.

Dividends paid by a Fund, if any, with respect to each class of shares will be calculated in the same manner at the same time on the same day, except that fees such as higher distribution and services fees and any incremental transfer agency costs relating to each class of shares will be borne exclusively by that class. (See "Dividends, Distributions and Taxes" in this SAI.)

#### Class A Shares
Class A Shares incur a sales charge when they are purchased and enjoy the benefit of not being subject to any sales charge when they are redeemed, except that a CDSC may apply on certain redemptions on which a finder's fee has been paid. For all funds other than Short Duration High Income Fund, the CDSC may be imposed on redemptions within 18 months of a finder's fee being paid. With respect to Short Duration High Income Fund, you may pay a 0.50% CDSC if you purchase $250,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 12 months after your initial purchase. With respect to High Yield Fund, you may pay a 0.50% CDSC if you purchase $1,000,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 18 months after your initial purchase.

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For all other Virtus Mutual Funds in this SAI, the CDSC is 1.00%. The CDSC period begins on the last day of the month preceding the month in which the purchase was made. Such deferred sales charges may be waived under certain conditions as determined by the Distributor. Class A Shares are subject to ongoing distribution and services fees at an annual rate of 0.25% of the Fund's aggregate average daily net assets attributable to the Class A Shares. In addition, certain purchases of Class A Shares qualify for reduced initial sales charges.

#### Class C Shares
Class C Shares are purchased without an initial sales charge but are subject to a deferred sales charge if redeemed within one year of purchase. The deferred sales charge may be waived in connection with certain qualifying redemptions.

If an investor intends to purchase greater than $999,999 of Class C shares, (except of the Short Duration High Income Fund), and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, thus reducing expenses. If an investor intends to purchase greater than $249,999 of Class C shares of the Short Duration High Income Fund, and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, thus reducing expenses. The Funds may refuse any order to purchase shares.

Shares issued in conjunction with the automatic reinvestment of income distributions and capital gain distributions are not subject to any sales charges. For all Funds in this SAI (except the High Yield Fund), Class C Shares are subject to ongoing distribution and service fees of up to 1.00% of each Fund's aggregate average daily net assets attributable to Class C Shares. For High Yield Fund, Class C Shares are subject to ongoing distribution and service fees of up to 0.90% of its aggregate average daily net assets attributable to Class C Shares. Class C Shares enjoy the benefit of permitting all of the investor's dollars to work from the time the investment is made. The higher ongoing distribution and services fee paid by Class C Shares will cause such shares to have a higher expense ratio and to pay lower dividends, to the extent any dividends are paid, than those related to Class A Shares.

With certain exceptions, Class C Shares, and any reinvested dividends and other distributions paid on such shares (on a prorated basis), automatically convert to Class A Shares after eight years. However, for investors invested in Class C Shares through a financial intermediary or recordkeeper, it is the responsibility of the financial intermediary or recordkeeper to ensure that the investor is credited with the proper holding period for the shares redeemed. The automatic conversion of Class C Shares to Class A Shares shall not apply to shares held through intermediaries or recordkeepers that do not track the length of time that a participant has held such shares or that are not otherwise able to operationally support the automatic conversion feature.

In addition, certain Class C Shares may be exchangeable in advance of the automatic conversion. If you hold your shares through a financial intermediary or recordkeeper, please contact your financial intermediary or recordkeeper for additional information. Class C Shares that have been held directly with the Fund, and not through a financial intermediary, for fewer than the required number of years may be exchanged at the Fund's or Transfer Agent's discretion for Class A Shares if (i) the Class C Shares are not subject to a CDSC, and (ii) a commission was not paid on the sale of such Class C Shares.

All conversions and exchanges from Class C Shares to Class A Shares will be on the basis of the relative NAVs per share, without the imposition of any sales load, fee or other charge. Automatic conversions of Class C shares to Class A shares will generally be processed monthly on or about the 10th day of the month, although for investors invested in Class C Shares through a financial intermediary or recordkeeper, it is the responsibility of the financial intermediary or recordkeeper to determine the timing of the conversions. As of the date of this SAI, conversions and exchanges from Class C Shares to Class A Shares of the same Fund are not expected to be considered taxable events for Federal income tax purposes. Shareholders should consult their tax professionals regarding their own tax considerations.

#### Institutional Class Shares
Institutional Class shares are offered primarily for direct investment by investors such as pension and profit sharing plans, employee benefit trusts, endowments, foundations, corporations, and high net worth individuals (Institutional Class shares may also be offered through certain financial intermediaries that charge their customers transaction or other fees with respect to the customers' investments in the Funds).

#### Class R6 Shares (all Funds other than Emerging Markets Value Fund, Global Sustainability Fund, High Yield Fund and Water Fund)
Class R6 Shares are available only to certain employer-sponsored retirement plans, including profit-sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans, plans described in Section 401(k), 403(b) and 457 of the Internal Revenue Code, banks and trust companies, insurance companies, registered investment companies and financial intermediaries utilizing fund shares in fee-based advisory programs, where plan level or omnibus accounts are held on the books of the fund. Other institutional investors may be permitted to purchase Class R6 Shares subject to the fund's determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. In addition, without a minimum initial investment requirement, Class R6 Shares are available to any trustee of the Virtus Funds and trustees/directors of affiliated open- and closed-end funds, directors, officers and employees of Virtus and its affiliates, and a spouse or domestic partner, child or minor grandchild of any such qualifying individual (in each case either individually or jointly with other investors), provided in each case that those shares are held directly with the Transfer Agent or in an eligible account. Class R6 Shares are not available to traditional or Roth

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IRAs, Coverdell Savings Accounts, Keoghs, SEPs, SARSEPs, or Simple IRAs. Individual shareholders who purchase Class R6 Shares through retirement platforms or other intermediaries are not eligible to hold Class R6 Shares outside of their respective plan or intermediary platform. If you are eligible to purchase and do purchase Class R6 Shares, you will pay no sales charge at any time. There are no distribution and service fees applicable to Class R6 Shares.

In determining which class of shares to purchase, an investor should always consider whether any waiver or reduction of a sales charge or a CDSC is available.

#### Class A Shares — Reduced Initial Sales Charges
Investors choosing Class A Shares may be entitled to reduced initial sales charges. The ways in which initial sales charges may be avoided or reduced are described below. Investors buying Class A Shares on which a finder's fee has been paid may incur a CDSC if they redeem their shares within specified periods. For the Funds in this SAI other than Short Duration High Income Fund, the CDSC may be imposed on redemptions within 18 months of a finder's fee being paid. With respect to Short Duration High Income Fund, you may pay a 0.50% CDSC if you purchase $250,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 12 months after your initial purchase. With respect to High Yield Fund, you may pay a 0.50% CDSC if you purchase $1,000,000 or more of Class A shares (and therefore pay no initial sales charge) and then redeem the shares during the first 18 months after your initial purchase. For all Virtus fixed income funds, the CDSC is 0.50%; for all other Virtus Mutual Funds in this SAI, the CDSC is 1.00%.. The CDSC period begins on the last day of the month preceding the month in which the purchase was made. Such deferred sales charge may be waived under certain conditions as determined by the Distributor or Transfer Agent.

#### Qualified Purchasers
If you fall within any one of the following categories, you will not have to pay a sales charge on your purchase of Class A Shares, provided that such purchase is made upon the written assurance of the purchaser that the purchase is made for investment purposes and that the shares so acquired will not be resold except to the Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Trustee, director or officer of any Virtus Mutual Fund, or any other mutual fund advised, subadvised or distributed by the Adviser, Distributor or any of their corporate affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any director or officer, or any full-time employee or sales representative (for at least 90 days), of the applicable Fund's Adviser, subadviser or Distributor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any private client of an Adviser or subadviser to any Virtus Mutual Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Registered representatives and employees of securities dealers with whom the Distributor has sales agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any qualified retirement plan exclusively for persons described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any officer, director or employee of a corporate affiliate of the Adviser, a subadviser or the Distributor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any spouse or domestic partner, child, parent, grandparent, brother or sister of any person named in (1), (2), (4) or (6) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Employee benefit plans for employees of the Adviser, Distributor and/or their corporate affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Any employee or agent who retires from the Distributor and/or their corporate affiliates or from PNX, as long as, with respect to PNX employees or agents, such individual was employed by PNX prior to December 31, 2008;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Any Virtus direct account held in the name of a qualified employee benefit plan, endowment fund or foundation if, on the date of the initial investment, the plan, fund or foundation has assets of $10,000,000 or more or at least 100 eligible employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Any person with a direct rollover transfer of shares from an established Virtus Mutual Fund or Virtus qualified plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Any state, county, city, department, authority or similar agency prohibited by law from paying a sales charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Any unallocated account held by a third party administrator, registered investment adviser, trust company, or bank trust department which exercises discretionary authority and holds the account in a fiduciary, agency, custodial or similar capacity, if in the aggregate such accounts held by such entity equal or exceed $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Any deferred compensation plan established for the benefit of any trustee or director of Virtus, any Virtus Mutual Fund, or any open-or closed-end fund advised, subadvised or distributed by the Adviser, the Distributor or any of their corporate affiliates.

If you fall within any one of the following categories, you also will not have to pay a sales charge on your purchase of Class A Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Individuals purchasing through an account with an unaffiliated brokerage firm having an agreement with the Distributor to waive sales charges for its clients (See Appendix A to the prospectus for a description of broker-dealers offering various sales load waivers);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Purchasers of Class A Shares bought through investment advisers and financial planners who charge an advisory, consulting or other fee for their services and buy shares for their own accounts or the accounts of their clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Retirement plans and deferred compensation plans and trusts used to fund those plans (including, for example, certain plans qualified or created under Sections 401(a), 403(b) or 457 of the Code), and "rabbi trusts" that buy shares for their own accounts, in each case if those purchases are made through a broker or agent or other financial intermediary that has made special arrangements with the Distributor for such purchases; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Clients of investment professionals or financial planners who buy shares for their own accounts but only if their accounts are linked to a master account of their investment professional or financial planner on the books and records of the broker, agent or financial intermediary with which the Distributor has made such special arrangements. (See Appendix A in the Funds' prospectus for a description of broker-dealers offering various sales load waivers.) Each of the investors described in (15) through (18) may be charged a fee by the broker, agent or financial intermediary for purchasing shares.

#### Combination Purchase Privilege
Your purchase of any class of shares of these Funds or any other Virtus Mutual Fund, (other than Virtus Seix U.S. Government Securities Ultra-Short Bond Fund and Virtus Seix Ultra-Short Bond Fund (the "Ultra-Short Bond Funds")) if made at the same time by the same person, will be added together with any existing Virtus Mutual Fund account values to determine whether the combined sum entitles you to an immediate reduction in sales charges. A "person" is defined in this and the following sections as either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any individual, his or her spouse or domestic partner, children and minor grandchildren purchasing shares for his, her or their own account (including an IRA account) including his, her or their own sole proprietorship or trust where any of the above is the named beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A trustee or other fiduciary purchasing for a single trust, estate or single fiduciary account (even though more than one beneficiary may exist);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Multiple accounts (up to 200) under a qualified employee benefit plan or administered by a third party administrator; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Trust companies, bank trust departments, registered investment advisers, and similar entities placing orders or providing administrative services with respect to accounts over which they exercise discretionary investment authority and which are held in a fiduciary, agency, custodial or similar capacity, provided all shares are held of record in the name, or nominee name, of the entity placing the order.

#### Right of Accumulation
The value of your account(s) in any class of shares of these Funds or any other Virtus Mutual Fund (other than Class A Shares of the Ultra-Short Bond Funds) may be added together at the time of each purchase to determine whether the combined sum entitles you to a prospective reduction in sales charges. You must provide certain account information to the Funds and their agents at the time of purchase to exercise this right.

#### Gifting of Shares
If you make a gift of shares of a Virtus Mutual Fund, upon your request you may combine purchases, if made at the same time, of any class of shares of these Funds or any other Virtus Mutual Fund at the sales charge discount allowed for the combined purchase. The receiver of the gift may also be entitled to a prospective reduction in sales charges in accordance with the Virtus Mutual Funds' right of accumulation or other provisions. You or the receiver of the gift must provide certain account information to Virtus Mutual Funds or their agents at the time of purchase to exercise this right.

#### Associations
Certain groups or associations may be treated as a "person" and qualify for reduced Class A Share sales charges. The group or association must: (1) have been in existence for at least six months; (2) have a legitimate purpose other than to purchase mutual fund shares at a reduced sales charge; (3) work through an investment dealer; and (4) not be a group whose sole reason for existing is to consist of members who are credit card holders of a particular company, policyholders of an insurance company, customers of a bank or a broker-dealer or clients of an investment adviser.

#### Letter of Intent
If you sign a Letter of Intent, your purchase of any class of shares of these Funds or any other Virtus Mutual Fund, (other than Class A Shares of the Ultra-Short Bond Funds) if made by the same person within a 13-month period, will be added together to determine whether you are entitled to an immediate reduction in sales charges. Sales charges are reduced based on the overall amount you indicate that you will buy under the Letter of Intent. The Letter of Intent is a mutually non-binding commitment. Since the Funds and their agents do not know whether you will ultimately fulfill the Letter of Intent, shares worth 5% of the Letter of Intent amount will be set aside until you fulfill the Letter of Intent. When you buy enough shares to fulfill the Letter of Intent, these shares will no longer be restricted. If, on the other hand, you do not satisfy the Letter of Intent, or otherwise wish to sell any restricted shares, you will be given the choice of either buying enough shares to fulfill the Letter of Intent or paying the difference between any sales charge you previously paid and the otherwise applicable sales charge. You will be given 20 days to make this decision. If you do not exercise either election, the Transfer Agent will automatically redeem the number of your restricted shares needed to make up the deficiency in sales charges

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received. The Transfer Agent will redeem restricted Class A shares before Class C shares. Oldest shares will be redeemed before selling newer shares. Any remaining shares will then be deposited to your account.

#### Class A and Class C Shares — Waiver of Deferred Sales Charges
The CDSC is waived on the redemption (sale) of Class A Shares and Class C Shares if the redemption is made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within one year of death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of the sole shareholder on an individual account,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) of a joint tenant where the surviving joint tenant is the deceased's spouse or domestic partner,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) of the beneficiary of a Uniform Gifts to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA) or other custodial account, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) of the "grantor" on a trust account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) within one year of disability, as defined in Code Section 72(m)(7);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the Funds' Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by 401(k) plans using an approved participant tracking system for participant hardships, death, disability or normal retirement, and loans which are subsequently repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) based on the exercise of exchange privileges among Class A Shares and Class C Shares of these Funds or any of the Virtus Mutual Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) based on any direct rollover transfer of shares from an established Virtus Mutual Fund qualified plan into a Virtus Mutual Fund IRA by participants terminating from the qualified plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) based on the systematic withdrawal program, provided such withdrawals do not exceed more than 1% monthly or 3% quarterly of the aggregate net investments. (See "Systematic Withdrawal Program" in this SAI for additional information about these restrictions.)

If, as described in condition (a) above, an account is transferred to an account registered in the name of a deceased's estate, the CDSC will be waived on any redemption from the estate account occurring within one year of the death.

#### Class A Shares and Class C Shares — Variations and Waivers of Sales Charges
Class A Shares and Class C Shares purchased through specific intermediaries may be eligible for additional scheduled variations in, and eliminations of, Class A Shares and Class C Shares sales charges. Information about these variations and waivers is available from your financial intermediary and in Appendix A to the Funds' Prospectuses, entitled "Intermediary Sales Charge Discounts and Waivers."

#### How to Redeem Shares
Customer orders will be priced at the Funds' NAVs next computed after they are received in good order by the Funds' Transfer Agent, an authorized broker or the broker's authorized designee. Even after all required documents have been received, a redemption request may not be considered in good order by the Funds, their Transfer Agent or other authorized agents if any of them suspects that the request is fraudulent or otherwise not valid.

Under the 1940 Act, payment for shares redeemed must ordinarily be made within seven days after tender. The right to redeem shares may be suspended and payment postponed during periods when the NYSE is closed, other than customary weekend and holiday closings, or if permitted by rules of the SEC, during periods when trading on the NYSE is restricted or during any emergency which makes it impracticable for a Fund to dispose of its securities or to determine fairly the value of its net assets or during any other period permitted by order of the SEC for the protection of investors. Furthermore, the shareholder will not be entitled to and the Transfer Agent will not mail redemption proceeds until checks received for shares purchased have cleared, which may take up to 15 days.

#### Class A Shares, Class C Shares, Institutional Class Shares , Class P Shares and Administrative Class Shares Only
The Trust has authorized one or more brokers to receive on its behalf purchase and redemption orders. Such brokers are authorized to designate other intermediaries to accept purchase and redemption orders on the Trust's behalf. The Trust will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker's authorized designee, accepts the order.

Redemptions by Class A and Class C shareholders will be subject to the applicable deferred sales charge, if any. A shareholder should contact his/her broker-dealer if he/she wishes to transfer shares from an existing broker-dealer street name account to a street name account with another broker-dealer. The Funds have no specific procedures governing such account transfers.

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#### Class R6 Shares Only
If you are investing through a qualified retirement plan, bank or trust company, insurance company, registered investment company or non-qualified deferred compensation plan, your financial institution or financial intermediary will provide you with the information you need to redeem Class R6. If you are a qualified institutional investor or qualified individual investor holding Class R6 Shares, please refer to the instructions in the Funds' prospectus section entitled "How to Sell Shares."

#### Redemptions by Mail
Shareholders may redeem shares by making written request, executed in the full name of the account, directly to Virtus Mutual Funds, P.O. Box 9874, Providence, RI 02940-8074. (See the Funds' current Prospectuses for more information.)

#### Redemptions by Telephone
Generally, shareholders may redeem by telephone up to $50,000 worth of their shares held in book-entry form. (See the Funds' current Prospectuses for more information.) Corporations that have completed a Corporate Authorized Trader form may redeem more than $50,000 worth of shares in most instances. The Funds, their Transfer Agent and their other authorized agents will not be liable for any loss, liability, cost or expense resulting from acting upon telephone instructions that are reasonably believed to be genuine.

#### Redemption of Small Accounts
Each shareholder account in the Funds which has been in existence for at least one year and which has a value of less than $200, due to redemption activity may be redeemed upon the giving of not less than 60 days written notice to the shareholder mailed to the account address of record. During the 60-day period following such notice, the shareholder has the right to add to the account to bring its value to $200 or more. (See the Funds' current Prospectuses for more information.)

#### Redemptions in Kind
To the extent consistent with state and federal law, each Virtus Mutual Fund may make payment of the redemption price either in cash or in kind. However, the Funds have elected to pay in cash all requests for redemption by any shareholder of record, limited in respect to each shareholder during any 90-day period to the lesser of $250,000 or 1% of the NAV of the Fund at the beginning of such period. This election has been made pursuant to Rule 18f-1 under the 1940 Act and is irrevocable while the Rule is in effect unless the SEC, by order, permits the withdrawal thereof. In case of a redemption in kind, securities delivered in payment for shares would generally represent the shareholder's proportionate share of the Fund's current net assets and be valued at the same value assigned to them in computing the NAV per share of the Fund. A shareholder receiving such securities would incur brokerage costs when selling the securities.

#### Account Reinstatement Privilege
Shareholders who may have overlooked features of their investment at the time they redeemed have a privilege of reinvestment of their investment at NAV. (See the Funds' current Prospectuses for more information.)

#### Returned/Uncashed Checks Policy
For the protection of Fund shareholders, if you have elected to receive dividends and other distributions in cash, and the check is returned to the Fund as undeliverable or you do not respond to mailings with regard to uncashed distribution checks, we may take any of the following actions:

 The distribution option on your account(s) will be changed to reinvest and all subsequent payments will be reinvested in additional shares of the Fund.

 Any systematic withdrawal plan will be stopped immediately.

 If a check is not presented for payment within six months, the Fund reserves the right to reinvest the check proceeds.

 If reinvested, distributions will be reinvested in the Fund at the earliest date practicable after the waiting period at the then-current NAV of such Fund.

 No interest will accrue on amounts represented by uncashed dividend, distribution or redemption checks.

This policy may not apply to certain retirement or qualified accounts, closed accounts or accounts under the applicable Fund's required minimum threshold.

Reinvestment of future distributions will continue until you notify us of your election to reinstate cash payment of the dividends and other distributions. You will also be required to confirm your current address and daytime telephone number.

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#### Pricing of Shares
The NAV per share of each class of each Fund generally is determined as of the close of regular trading (normally 4:00 PM Eastern time) on days when the NYSE is open for trading. A Fund will not calculate its NAV per share class on days when the NYSE is closed for trading.

The NYSE will be closed on the following observed national holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Since the Funds do not price securities on weekends or United States national holidays, the NAV of a Fund's foreign assets may be significantly affected on days when the investor may not be able to purchase or sell shares of the Funds. The NAV per share of a Fund is determined by adding the values of all securities and other assets of the Fund, subtracting liabilities, and dividing by the total number of outstanding shares of the Fund. Assets and liabilities are determined in accordance with generally accepted accounting principles and applicable rules and regulations of the SEC. The total liability allocated to a class, plus that class's distribution fee and any other expenses allocated solely to that class, are deducted from the proportionate interest of such class in the assets of the Fund, and the resulting amount of each is divided by the number of shares of that class outstanding to produce the NAV per share.

A security that is listed or traded on more than one exchange generally is valued at the official closing price on the exchange representing the principal exchange for such security. Because of the need to obtain prices as of the close of trading on various exchanges throughout the world, the calculation of NAV may not take place for a Fund's foreign securities investments contemporaneously with the determination of the prices of the majority of the portfolio securities of such Fund. The foreign currency exchange rate used to price the currency in which foreign securities are denominated is generally the 4 p.m. Eastern Time spot rate. If at any time a Fund has investments where market quotations are not readily available or are determined not to be reliable indicators of the value of the securities priced, such investments are valued at the fair value thereof as determined by the Adviser pursuant to policies and procedures approved by the Board.

Security valuation procedures for each Fund, which include nightly price variance as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis. All internally fair valued securities are approved by a valuation committee (the "Valuation Committee") appointed by the Adviser. The Valuation Committee is comprised of certain Trust officers and/or representatives of the Adviser and/or Administrator. All internally fair valued securities, referred to below, are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of any model inputs and any changes to the model when applicable.

Each Fund utilizes 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 valuation committee's own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A description of the valuation techniques applied to a Fund's major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

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 and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid or are internally fair valued by the valuation committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities 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 non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its NAV that may impact the value of securities traded in these non-U.S. markets. In such cases the Funds will fair value non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, exchange traded funds, and certain indexes as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments such as mortgage-backed and

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asset-backed securities may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued by the valuation committee are generally categorized as Level 3 in the hierarchy.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy.

Over-the-counter (OTC) derivative contracts, which include forward currency contracts and equity linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.

Short-term notes having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market, and are generally categorized as Level 2 in the hierarchy.

#### INVESTOR ACCOUNT SERVICES AND POLICIES
The Funds offer accumulation plans, withdrawal plans and reinvestment and exchange privileges. Certain privileges may not be available in connection with all classes. In most cases, changes to account services may be accomplished over the phone. Inquiries regarding policies and procedures relating to shareholder account services should be directed to the Transfer Agent at 800.243.1574. Broker-dealers may impose their own restrictions and limits on accounts held through the broker-dealer. Please consult with your broker-dealer for account restrictions and limit information. The Funds and their agents reserve the right to modify or terminate these services upon reasonable notice.

#### Exchanges
Under certain circumstances, shares of any Virtus Mutual Fund may be exchanged for shares of the same class of another Virtus Mutual Fund on the basis of the relative NAVs per share at the time of the exchange. Class C Shares are also exchangeable for Class C1 Shares of those Virtus Mutual Funds offering them. Class A Shares of the Ultra-Short Bond Funds are exchangeable at net asset value plus the applicable sales charge of the Class A Shares into which you are exchanging. Please note, however, that exchanges into the Ultra-Short Bond Funds may be subject to a CDSC in the event that a finder's fee was paid on the shares you are exchanging. In the event that you are charged such a CDSC and later exchange your shares of an Ultra-Short Bond Fund for shares of another Virtus Mutual Fund, your shares of that Virtus Mutual Fund will not be subject to a sales charge or finder's fee. Exchanges are subject to the minimum initial investment requirement of the designated Fund, except if made in connection with the Systematic Exchange privilege described below. Shareholders may exchange shares held in book-entry form for an equivalent number (value) of the same class of shares of any other Virtus Mutual Fund, if currently offered. Exchanges will be based upon each Fund's NAV per share next computed following receipt of a properly executed exchange request without sales charge. For all Virtus fixed income funds, the CDSC is 0.50%; for all other Virtus Mutual Funds, the CDSC is 1.00%. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply. The exchange of shares is treated as a sale and purchase for federal income tax purposes. (See also "Dividends, Distributions and Taxes" in this SAI.) Exchange privileges may not be available for all Virtus Mutual Funds, and may be rejected or suspended.

Financial intermediaries are permitted to initiate exchanges from one class of shares of a Fund into another class of shares of the same Fund if, among other things, the financial intermediary agrees to follow procedures established by the Fund, the Distributor or the Transfer Agent, which generally will require that (i) the exchanges be carried out within accounts that are maintained and controlled by the intermediary and meet investor eligibility requirements, if applicable, for the share class or account type, and (ii) no contingent deferred sales charges are outstanding, or the applicable intermediary agrees to cause any outstanding contingent deferred sales charges to be paid in a manner agreed to by the Fund, the Distributor or the Transfer Agent. The Fund's ability to make this type of exchange may be limited by operational or other limitations, requiring the Fund or its agent to process the transaction as a liquidation and purchase, at the same closing NAV. The financial intermediary will be ultimately responsible for reporting the transaction in accordance with their instruction.

Shareholders owning shares of a Fund through accounts established directly with the Transfer Agent (i.e., not established with a financial intermediary who deals with the Transfer Agent exclusively on the investor's behalf) may be permitted to exchange shares of one class of shares of the Fund into another class of shares of the same Fund, if they meet the investor eligibility requirements associated with the class into which they wish to exchange, at the discretion of the Fund or the Transfer Agent. A shareholder's ability to make this type of exchange may be limited by operational or other limitations of his or her financial intermediary or the Fund. Under the Code, generally if a shareholder exchanges shares from one class of a Fund into another class of the same Fund, the transaction should not be subject to U.S. federal income taxes; however, each shareholder should consult both the relevant financial intermediary and the shareholder's tax professional regarding the treatment of any specific exchange carried out under the terms of this paragraph.

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#### Systematic Exchanges
If the conditions above have been met, you or your broker may, by telephone or written notice, elect to have shares exchanged for the same class of shares of another Virtus Mutual Fund automatically on a monthly, quarterly, semiannual or annual basis or may cancel this privilege at any time. If you maintain an account balance of at least $5,000, or $2,000 for tax qualified retirement benefit plans (calculated on the basis of the NAV of the shares held in a single account), you may direct that shares be automatically exchanged at predetermined intervals for shares of the same class of another Virtus Mutual Fund. Systematic exchanges will be executed upon the close of business on the 10th day of each month or the next succeeding business day. Exchanges will be based upon each Fund's NAV per share next computed after the close of business on the 10th day of each month (or next succeeding business day), without sales charge. Systematic exchange forms are available from the Transfer Agent.

#### Dividend Reinvestment Across Accounts
If you maintain an account balance of at least $5,000, or $2,000 for tax qualified retirement benefit plans (calculated on the basis of the NAV of the shares held in a single account), you may direct that any dividends and distributions paid with respect to shares in that account be automatically reinvested in a single account of one of the other Virtus Mutual Funds at NAV. You should obtain a current prospectus and consider the objectives and policies of each Virtus Mutual Fund carefully before directing dividends and distributions to another Virtus Mutual Fund. Reinvestment election forms and prospectuses are available from the Transfer Agent. Distributions may also be mailed to a second payee and/or address. Requests for directing distributions to an alternate payee must be made in writing with a signature guarantee of the registered owner(s). To be effective with respect to a particular dividend or distribution, notification of the new distribution option must be received by the Transfer Agent at least three days prior to the record date of such dividend or distribution. If all shares in your account are repurchased or redeemed or transferred between the record date and the payment date of a dividend or distribution, you will receive cash for the dividend or distribution regardless of the distribution option selected.

#### Invest-by-Phone
This expedited investment service allows a shareholder to make an investment in an account by requesting a transfer of funds from the balance of the shareholder's bank account. Once a request is phoned in, the Transfer Agent or its subagent will initiate the transaction by wiring a request for monies to the shareholder's commercial bank, savings bank or credit union via ACH. The shareholder's bank, which must be an ACH member, will in turn forward the monies to the Transfer Agent or its subagent for credit to the shareholder's account. ACH is a computer based clearing and settlement operation established for the exchange of electronic transactions among participating depository institutions.

To establish this service, please complete a Bank Option Application and attach a voided check if applicable. Upon acceptance of the authorization form (usually within two weeks) shareholders may call toll free 800.243.1574 prior to 3:00 p.m. (Eastern Time) to place their purchase request. Instructions as to the account number and amount to be invested must be communicated to the Transfer Agent. The Transfer Agent or its subagent will then contact the shareholder's bank via ACH with appropriate instructions. The purchase is normally credited to the shareholder's account the day following receipt of the verbal instructions. The Fund may delay the mailing of a check for redemption proceeds of Fund shares purchased with a check or via Invest-by-Phone service until the Fund has assured itself that good payment has been collected for the purchase of the shares, which may take up to 15 days. The Trust and the Transfer Agent reserve the right to modify or terminate the Invest-by-Phone service for any reason or to institute charges for maintaining an Invest-by-Phone account.

#### Systematic Withdrawal Program
The Systematic Withdrawal Program allows you to periodically redeem a portion of your account on a predetermined monthly, quarterly, semiannual or annual basis. A sufficient number of full and fractional shares will be redeemed so that the designated payment is made on or about the 20th day of the month. Shares are tendered for redemption by the Transfer Agent, as agent for the shareowner, on or about the 15th of the month at the closing NAV on the date of redemption. The Program also provides for redemptions with proceeds to be directed through ACH to your bank account. For ACH payments, you may select the day of the month for the payments to be made; if no date is specified, the payments will occur on the 15th of the month. In addition to the limitations stated below, withdrawals may not be less than $25 and minimum account balance requirements shall continue to apply.

Shareholders participating in the Program must own shares of a Fund worth $5,000 or more, as determined by the then current NAV per share, and elect to have all dividends reinvested. The purchase of shares while participating in the Program will ordinarily be disadvantageous to the Class A Shares investor since a sales charge will be paid by the investor on the purchase of Class A Shares at the same time as other shares are being redeemed. For this reason, investors in Class A Shares may not participate in an automatic investment program while participating in the Program.

Through the Program, Class C shareholders may withdraw up to 1% of their aggregate net investments (purchases, at initial value, to date net of non-Program redemptions) each month or up to 3% of their aggregate net investments each quarter without incurring otherwise applicable CDSCs. Class C shareholders redeeming more shares than the percentage permitted by the Program will be subject to any applicable CDSC on all shares redeemed. Accordingly, the purchase of share classes on which a CDSC may be payable will generally not be appropriate for an investor who anticipates withdrawing sums in excess of the above limits shortly after purchase.

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#### Notice to Non-U.S. Individual Shareholders
The Trust and its Shares are only registered in the United States of America. Regulations outside of the United States may restrict the sale of Shares to certain non-U.S. investors or subject certain shareholder accounts to additional regulatory requirements. The Trust reserves the right, however, to sell Shares to certain non-U.S. investors in compliance with applicable law. If a current shareholder in the Trust provides a non-U.S. address, this will be deemed a representation and warranty from such investor that he/she is not a U.S. resident and will continue to be a non-U.S. resident unless and until the Trust is notified of a change in the investor's resident status. Any current shareholder that has a resident address outside of the Unites States may be restricted from purchasing additional Shares.

In the course of its business, the Trust, its service providers and/or its selling agents may collect, record, store, adapt, transfer and otherwise process information by which prospective and current natural person investors may be directly or indirectly identified. The Trust, its service providers and/or its selling agents shall comply with all applicable data protection regulation in processing personal data within their respective possession, including the EU General Data Protection Regulation (EU/2016/679) ("GDPR"). For shareholders who are residents or citizens of the European Union, personal data will be generally processed to open an account, manage and administer holding(s), including further subscriptions, redemptions, transfers or conversions, or otherwise as necessary to comply with legal obligations under GDPR.

#### DIVIDENDS, DISTRIBUTIONS AND TAXES

#### Qualification as a Regulated Investment Company
Each Fund within the Trust is treated as a separate corporation for investment and accounting purposes and is treated as a separate corporation for United States federal income tax purposes. Each Fund has elected to qualify and intends to qualify as a RIC under Subchapter M of the Code. In each taxable year that a Fund qualifies as a RIC and distributes to its shareholders as dividends (not including "capital gains dividends," discussed below) at least 90% of its ordinary investment income and short-term capital gains, with certain modifications, it (but not its shareholders) will be relieved of United States federal income tax on that portion of its net investment income and net capital gains that are currently distributed (or deemed distributed) to its shareholders. To the extent that a Fund fails to distribute all of its taxable income, it will be subject to corporate income tax (currently at a rate of 21%) on any retained ordinary investment income or short-term capital gains and undistributed long-term capital gains.

Each Fund intends to make timely distributions, if necessary, sufficient in amount to avoid the non-deductible 4% excise tax that is imposed on a RIC to the extent that it fails to distribute, with respect to each calendar year, at least 98% of its ordinary income (not including tax-exempt interest) for such calendar year and 98.2% of its capital gain net income as determined for a one-year period ending on October 31 of such calendar year (or a later date, if the Fund so elects). In addition, each RIC must distribute an amount equal to any undistributed investment company taxable income or capital gain net income from the previous calendar year to avoid the excise tax. The excise tax is imposed on the amount by which the RIC does not meet the foregoing distribution requirements. If a Fund has taxable income that would be subject to the excise tax, the Fund intends to distribute such income so as to avoid payment of the excise tax. Notwithstanding the foregoing, there may be certain circumstances under which it would be appropriate for a Fund to pay the excise tax.

Each Fund must satisfy the following tests each year in order to qualify as a RIC: (a) derive in each taxable year at least 90% of its gross income from dividends, interest and gains from the sale or other disposition of securities and certain other investment income; and (b) meet specified diversification requirements at the end of each quarter of each taxable year. Each Fund intends to satisfy these requirements. With respect to the diversification requirement, each Fund must also diversify its holdings so that, at the close of each quarter of its taxable year, at least 50% of the value of its total assets consists of cash, cash items, United States government securities and securities of other RICs, and other securities limited generally with respect to any one issuer to not more than 5% of the total assets of that Fund and not more than 10% of the outstanding voting securities of such issuer, and not more than 25% of the value of its assets is invested in the securities of any one issuer (other than United States government securities or the securities of other RICs). In addition, the Fund may not hold more than 25% of the securities (other than of other RICs) of two or more issuers which the Fund controls and which are engaged in the same or similar trades or businesses or 25% of the securities of one or more qualified publicly traded partnerships. Each Fund intends to comply with all of the foregoing criteria for qualification as a RIC; however, there can be no assurance that each Fund will so qualify and continue to maintain its status as a RIC. If in any taxable year a Fund does not qualify as a RIC or fails to distribute at least 90% of the Fund's investment company taxable income, all of its taxable income will be taxed at corporate rates, the Fund would not be entitled to deduct distributions to shareholders, and any capital gain dividend would not retain its character in the hands of the shareholder for tax purposes. The Code provides relief for certain de minimis failures to meet the asset or income tests or for certain failures due to reasonable cause. These relief provisions may prevent a Fund from being disqualified as a RIC and/or reduce the amount of tax on the Fund's income as a result of the failure to meet certain tests.

#### Taxation of Debt Securities
Certain debt securities can be originally issued or acquired at a discount. Special rules apply under the Code to the recognition of income with respect to such debt securities. Under the special rules, a Fund may recognize income for tax purposes without a corresponding current receipt of cash. In addition, gain on a disposition of a debt security subject to the special rules may be treated wholly or partially as ordinary income, not capital gain.

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A Fund may invest in certain investments that may cause it to realize income prior to the receipt of cash distributions, including securities bearing original issue discount. In addition, payment-in-kind securities will, and commodity-linked notes may, give rise to income that is required to be distributed and is taxable even though the Fund holding the security receives no interest payment in cash on the security during the year. The level of such investments is not expected to affect a Fund's ability to distribute adequate income to qualify as a RIC.

Very generally, where a Fund purchases a bond at a price that exceeds the redemption price at maturity (i.e., a premium), the premium is amortizable over the remaining term of the bond. In the case of a taxable bond, if a Fund makes an election applicable to all such bonds it purchases, which election is irrevocable without consent of the IRS, the Fund reduces the current taxable income from the bond by the amortized premium and reduces its tax basis in the bond by the amount of such offset; upon the disposition or maturity of such bonds, the Fund is permitted to deduct any remaining premium allocable to a prior period. In the case of a tax-exempt bond, tax rules require such a Fund to reduce its tax basis by the amount of amortized premium.

To the extent such investments are permissible for a Fund, the Fund may invest in debt obligations that are in the lowest rating categories or are unrated, including debt obligations of issuers not currently paying interest or who are in default. Investments in debt obligations that are at risk of or in default present special tax issues for a Fund. Tax rules are not entirely clear about issues such as whether, when or to what extent a Fund should recognize market discount on a debt obligation; when a Fund may cease to accrue interest, OID or market discount; when and to what extent deductions may be taken for bad debts or worthless securities; and how payments received on obligations in default should be allocated between principal and income. These and other related issues will be addressed by a Fund when, as and if it invests in such securities, in order to seek to ensure that it distributes sufficient income to preserve its eligibility for treatment as a regulated investment company and does not become subject to U.S. federal income or excise tax.

#### Taxation of Convertible Securities
Convertible debt is ordinarily treated as a "single property" consisting of a pure debt interest until conversion, after which the investment becomes an equity interest. As noted above, if the security is issued at a premium (i.e., for cash in excess of the face amount payable on retirement), the Fund may amortize the premium over the life of the bond. If the security is issued for cash at a price below its face amount, the Fund may recognize income for tax purposes without a corresponding receipt of cash over the life of the debt. The Fund's exercise of the conversion privilege is generally treated as a nontaxable event. Mandatorily convertible debt (e.g., an exchange-traded note issued in the form of an unsecured obligation that pays a return based on the performance of a specified market index, exchange currency, or commodity) is often, but not always, treated as a contract to buy or sell the reference property rather than debt.

Similarly, convertible preferred stock with a mandatory conversion feature is ordinarily, but not always, treated as equity rather than debt. In general, conversion of preferred stock for common stock of the same corporation is tax-free. Conversion of preferred stock for cash is a taxable redemption. Any redemption premium for preferred stock that is redeemable by the issuing company may be required to be amortized under original issue discount principles. A change in the conversion ratio or conversion price of a convertible security on account of a dividend paid to the issuer's other shareholders may result in a deemed distribution of stock to the holders of the convertible security equal to the value of their increased interest in the equity of the issuer. Thus, an increase in the conversion ratio of a convertible security can be treated as a taxable distribution of stock to a holder of the convertible security (without a corresponding receipt of cash by the holder) before the holder has converted the security.

#### Taxation of Derivatives and Foreign Currency Transactions
Many futures contracts and foreign currency contracts entered into by a Fund and all listed non-equity options written or purchased by a Fund (including options on debt securities, options on futures contracts, options on securities indices and options on broad-based stock indices) are governed by Section 1256 of the Code. Absent a tax election to the contrary, gain or loss attributable to the lapse, exercise or closing out of any such position is treated as 60% long-term and 40% short-term capital gain or loss, and on the last trading day of a Fund's taxable year (and, generally on October 31 for purposes of the 4% excise tax), all outstanding Section 1256 positions are marked-to-market (i.e., treated as if such positions were closed out at their closing price on such day), and any resulting gain or loss is treated as 60% long-term and 40% short-term capital gain or loss. Under certain circumstances, entry into a futures contract to sell a security may constitute a short sale for United States federal income tax purposes, causing an adjustment in the holding period of the underlying security or a substantially identical security in a Fund's portfolio.

Equity options written by a Fund (covered call options on portfolio stock) will be subject to the provisions under Section 1234 of the Code. If a Fund writes a call option, no gain is recognized upon its receipt of a premium. If such an option lapses or is closed out, any gain or loss is treated as a short-term capital gain or loss. If such an option is exercised, any resulting gain or loss is a short-term or long-term capital gain or loss depending on the holding period of the underlying stock.

Positions of a Fund which consist of at least one stock and at least one stock option or other position with respect to a related security which substantially diminishes the Fund's risk of loss with respect to such stock could be treated as a "straddle" that is governed by Section 1092 of the Code, the operation of which may cause deferral of losses, adjustments in the holding periods of stock or securities and conversion of short-term capital losses into long-term capital losses. An exception to these straddle rules exists for any "qualified covered call options" on stock options written by a Fund.

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Positions of a Fund which consist of at least one debt security not governed by Section 1256 of the Code and at least one futures or currency contract or listed non-equity option governed by Section 1256 of the Code which substantially diminishes the Fund's risk of loss with respect to such debt security are treated as a "mixed straddle." Although mixed straddles are subject to the straddle rules of Section 1092 of the Code, certain tax elections exist for them that reduce or eliminate the operation of these rules. Each Fund will monitor these transactions and may make certain tax elections in order to mitigate the operation of these rules and prevent disqualification of the Fund as a RIC for United States federal income tax purposes.

Under the Code, gains or losses attributable to fluctuations in exchange rates which occur between the time a Fund accrues interest or other receivables or accrues expenses or other liabilities denominated in a foreign currency and the time it actually collects such receivables or pays such liabilities generally are treated as ordinary income or loss. Similarly, on disposition of debt securities denominated in a foreign currency and on disposition of certain futures contracts, forward contracts and options, gains or losses attributable to fluctuations in the value of the foreign currency between the date of acquisition of the security or contract and the date of disposition also are treated as ordinary income or loss. Generally, these gains and losses, referred to under the Code as Section 988 gains or losses, may increase or decrease the amount of each Fund's investment company taxable income to be distributed to its shareholders as ordinary income.

In addition to the special rules described above in respect of futures and options transactions, a Fund's transactions in other derivative instruments (e.g., forward contracts and swap agreements) as well as any of its other hedging, short sale, securities loan transactions and certain other transactions, may be subject to one or more special tax rules (e.g., mark-to-market, notional principal contract, straddle, constructive sale, wash sale and short sale rules). These rules may affect whether gains and losses recognized by a Fund are treated as ordinary or capital or as short-term or long-term, accelerate the recognition of income or gains to a Fund, defer losses to a Fund, and cause adjustments in the holding periods of a Fund's securities. These rules could therefore affect the amount, timing or character of distributions to, and thus taxes payable by, shareholders. Because these and other tax rules applicable to these types of transactions are in some cases uncertain under current law, an adverse determination or future guidance by the IRS with respect to these rules (which determination or guidance may be retroactive) could affect whether a Fund has made sufficient distributions, and otherwise satisfied the relevant requirements, to maintain its qualification as a regulated investment company and avoid a Fund-level tax. Each Fund will monitor its transactions, will make appropriate tax elections and will make appropriate entries in its books and records in order to mitigate the effect of these rules. While the Funds will endeavor to treat the tax items arising from these transactions in a manner believed to be appropriate, guarantees cannot be given that the IRS or a court will concur with the Funds' treatment and that adverse tax consequences will not ensue.

#### Taxation of Certain Commodities Transactions
A Fund's direct investment in commodities and use of commodity-linked derivatives can be limited by the Fund's intention to qualify as a regulated investment company, and can bear on the Fund's ability to so qualify. Income and gains from commodities and certain commodity-linked derivatives does not constitute qualifying income to a regulated investment company for purposes of the 90% gross income test described above. The tax treatment of certain other commodity-linked instruments in which a Fund might invest, including exchange-traded notes and certain structured notes, is not certain, in particular with respect to whether income or gains from such instruments constitute qualifying income to a regulated investment company. If a Fund were to treat income or gain from a particular instrument as qualifying income and the income or gain were later determined not to constitute qualifying income and, together with any other non-qualifying income, caused the Fund's non-qualifying income to exceed 10% of its gross income in any taxable year, the Fund would fail to qualify as a regulated investment company unless it is eligible to and does pay a tax at the Fund level.

To the extent that, in order to achieve exposure to commodities, a Fund invests in entities that are treated as pass-through vehicles for U.S. federal income tax purposes, including, for instance, certain ETFs (e.g., ETFs investing in gold bullion) and partnerships other than qualified publicly traded partnerships (as defined earlier), all or a portion of any income and gains from such entities could constitute non- qualifying income to the Fund for purposes of the 90% gross income requirement described above. In such a case, the Fund's investments in such entities could be limited by its intention to qualify as a regulated investment company and could bear on its ability to so qualify. Certain commodities-related ETFs may qualify as qualified publicly traded partnerships. In such cases, the net income derived from such investments will constitute qualifying income for purposes of the 90% gross income requirement. If, however, such a vehicle were to fail to qualify as a qualified publicly traded partnership in a particular year, a portion of the gross income derived from it in such year could constitute non-qualifying income to the Fund for purposes of the 90% gross income requirement and thus could adversely affect the Fund's ability to qualify as a regulated investment company for a particular year. In addition, the diversification requirement described above for regulated investment company qualification will limit the Fund's investments in one or more vehicles that are qualified publicly traded partnerships to 25% of the Fund's total assets as of the close of each quarter of the Fund's taxable year.

#### Taxation of Foreign Investments
If a Fund invests in stock of certain passive foreign investment companies, the Fund may be subject to special United States federal income taxation rules applicable to any "excess distribution" with respect to such stock or gain from the disposition of such stock treated as an "excess distribution." The tax would be determined by allocating such distribution or gain ratably to each day of the Fund's holding period for the stock. The distributions or gain so allocated to any taxable year of the Fund, other than the taxable year of the excess distribution or disposition, would be taxed to the Fund at

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the highest ordinary income rate in effect for such year, and the tax would be further increased by an interest charge to reflect the value of the tax deferral deemed to have resulted from the ownership of the foreign company's stock. Any amount of distribution or gain allocated to the taxable year of the distribution or disposition would be included in the Fund's investment company taxable income and, accordingly, would not be taxable to the Fund to the extent distributed by the Fund as a dividend to its shareholders. The Fund may elect to mark-to-market (i.e., treat as if sold at their closing market price on the same day) its investments in certain passive foreign investment companies and avoid any tax and/or interest charge on excess distributions.

Under limited circumstances, a Fund may be required to include in income certain amounts allocated to it as a shareholder of a controlled foreign corporation without receiving a distribution. Those amounts are treated as a dividend to the extent actually distributed by the controlled foreign corporation in the same year and would be included in the Fund's investment company taxable income and not taxable to the Fund to the extent distributed by the Fund as a dividend to its shareholders. Any amount required to be included in the Fund's income, but not distributed by the controlled foreign corporation, is not treated as a dividend.

The Funds may be subject to tax on dividend or interest income received from securities of non-United States issuers withheld by a foreign country at the source. The United States has entered into tax treaties with many foreign countries that entitle a Fund to a reduced rate of tax or exemption from tax on income. It is impossible to determine the effective rate of foreign tax in advance since the amount of a Fund's assets to be invested within various countries is not known. Each Fund intends to operate so as to qualify for tax treaty benefits where applicable. If more than 50% of the value of a Fund's total assets at the close of its taxable year is comprised of stock or securities issued by foreign corporations, the Fund may elect to "pass through" to the Fund's shareholders the amount of foreign income taxes paid by the Fund. If a Fund does elect to "pass through," each shareholder will receive a written statement from the Fund identifying the amount of such shareholder's pro rata share of (i) the foreign taxes paid and (ii) the Fund's gross income from foreign sources. In addition, if at least 50% of the value of a Fund's assets at the close of each quarter of the tax year is represented by interests in other RICs, then such Fund may "pass through" foreign income taxes paid without regard to whether more than 50% of the Fund's total assets at the close of the tax year consisted of stock and securities issued by foreign corporations. If a Fund passes through foreign taxes, each shareholder will be required to include the amount of such shareholder's pro rata share of such taxes in gross income (in addition to dividends actually received), and the shareholder will be entitled to deduct such foreign taxes (if the shareholder itemizes deductions) in computing taxable income or claim a credit against U.S. federal income tax liability, subject to limitations.

#### Investments in Master Limited Partnerships
A Fund's ability to make investments in MLPs is limited by the Fund's intention to qualify as a regulated investment company, and if the Fund does not appropriately limit such investments or if such investments are recharacterized for U.S. federal income tax purposes, the Fund's status as a regulated investment company may be jeopardized. Among other limitations, a Fund is permitted to have no more than 25% of the value of its total assets invested in qualified publicly traded partnerships, including MLPs. Such investments might generate taxable income in excess of cash, either (i) in respect of an MLP debt restructuring, or (ii) on the sale of an interest therein, such sale could also potentially involve "recapture" of ordinary income.

#### Short Sales
To the extent a fund participates in short sales by contracting for the sale of stock it does not own and later purchasing stock necessary to close the sale, the character of the gain or loss realized on such a short sale is determined by reference to the property used to close the short sale and is thus generally short-term. Because net short-term capital gain (after reduction by any long-term capital loss) is generally taxed at ordinary income rates, a Fund's short sale transactions will likely increase the percentage of the Fund's gains that are taxable to shareholders as ordinary income.

#### Taxation of Distributions to Shareholders
Certain qualified dividend income and long-term capital gains are taxed at a lower federal income tax rate (maximum 20%) for individual shareholders. The reduced rate for qualified dividend income applies to dividends from domestic corporations and certain qualified foreign corporations subject to various requirements and a minimum holding period applicable to both a Fund and its shareholders. Ordinary distributions made by a Fund to its shareholders are eligible for the reduced rate to the extent the underlying income in the Fund is qualified dividend income. U.S. individuals and certain estates and trusts are subject to an additional 3.8% Medicare contribution tax that will generally apply to the lesser of (i) an individual's net investment income or (ii) the excess of modified adjusted gross income over $200,000 (in the case of single filers) or $250,000 (in the case of a joint return).

Distributions made by a Fund from ordinary investment income and net short-term capital gains will be taxed to such Fund's shareholders as ordinary dividend income to the extent of the earnings and profits of the Fund. Ordinary income dividends received by corporate shareholders of a Fund will qualify for the 50% dividends-received deduction to the extent the Fund designates such amounts as qualifying dividend distributions; however, the portion that may be so designated is subject to certain limitations. Distributions by a Fund that are reported by the Fund as capital gain dividends in written statements furnished to its shareholders (e.g., Form 1099) will be taxed to the shareholders as long-term capital gain, and will not be eligible for the corporate dividends-received deduction. Distributions in excess of the current and accumulated earnings and profits of a Fund will be treated as a tax-free return of capital to the extent of each shareholder's adjusted basis in shares of a Fund, and as a capital gain thereafter (if the

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shareholder holds shares of a Fund as a capital asset). A shareholder's basis is determined separately with respect to each share of the Fund and may vary if the Shareholder acquired different shares at different times. ***Shareholders should consult their own tax professionals regarding the tax consequences with specific reference to their own tax situation.***

Dividends declared by a Fund to shareholders of record in October, November or December will be taxable to such shareholders in the year that the dividend is declared, even if it is not paid until the following year (so long as it is actually paid by the Fund in January of such following year). Also, shareholders will be taxed on amounts reported by a Fund in written statements to shareholders as capital gain dividends, even if such amounts are not actually distributed to them. Shareholders will be entitled to claim a credit against their own United States federal income tax liability for taxes paid by each Fund on such undistributed capital gains, if any.

If a Fund invests in real estate investment trusts ("REITs") and receives qualified REIT dividends, the Fund may pay Code Section 199A dividends limited to the excess of the Fund's qualified REIT dividends for the taxable year over allocable expenses. Under final Treasury Regulations, non-corporate shareholders who meet holding period and certain other requirements are eligible for a 20% deduction against such Code Section 199A dividends dividends for tax years beginning after December 3, 2017 and before January 1, 2026. The final Treasury Regulations do not extend similar treatment to qualified publicly traded partnership income as defined under Section 199A of the Code, earned by a RIC. Therefore, non-corporate shareholders may not include any qualified publicly traded partnership income earned through a Fund in their qualified business income deduction. This could cause a non-corporate shareholder to be subject to a higher effective tax rate on distributions received from a Fund compared to the effective tax rate applicable to qualified publicly traded partnership (including an MLP) income the shareholder would have derived if investing directly in the qualified publicly traded partnership (including an MLP).

Dividends and capital gain distributions will be taxable to shareholders as described above whether received in cash or in shares under a Fund's distribution reinvestment plan. With respect to distributions received in cash or reinvested in shares purchased on the open market, the amount of the distribution for tax purposes will be the amount of cash distributed or allocated to the shareholder.

Shareholders should be aware that the price of shares of a Fund that are purchased prior to a dividend or distribution by the Fund may reflect the amount of the forthcoming dividend or distribution. Such dividend or distribution, when made, would be taxable to shareholders under the principles discussed above even though the dividend or distribution may reduce the NAV of shares below a shareholder's cost and thus represent a return of a shareholder's investment in an economic sense.

A high portfolio turnover rate may result in the realization of larger amounts of short-term gains, which are taxable to shareholders as ordinary income.

Each Fund intends to accrue dividend income for United States federal income tax purposes in accordance with the rules applicable to RICs. In some cases, these rules may have the effect of accelerating (in comparison to other recipients of the dividend) the time at which the dividend is taken into account by the Fund as taxable income.

Shareholders should consult their own tax professionals about their tax situations.

Income and capital gain distributions are determined in accordance with rules set forth in the Code and the Regulations that may differ from United States Generally Accepted Accounting Principles.

#### Sale or Exchange of Fund Shares
Gain or loss will be recognized by a shareholder upon the sale of his or her shares in a Fund or upon an exchange of his or her shares in a Fund for shares in another Virtus Mutual Fund. Provided that the shareholder is not a dealer in such shares, such gain or loss will generally be treated as capital gain or loss, measured by the difference between the adjusted basis of the shares and the amount realized from the sale. Under current law, capital gains (whether long-term or short-term) of individuals and corporations are fully includable in taxable income. Capital losses (whether long-term or short-term) may offset capital gains plus (for non-corporate taxpayers only) up to $3,000 per year of ordinary income. Net capital losses for non-corporate taxpayers in excess of $3,000 may be carried forward. Corporate taxpayers may carry back net capital losses for three years or carry forward net capital losses for five years, but generally may not deduct net capital losses in the year such losses arise.

Redemptions, including exchanges, of shares may give rise to recognized gains or losses. All or a portion of a loss realized upon the redemption, including exchanges, of shares may be disallowed under "wash sale" rules to the extent shares are purchased (including shares acquired by means of reinvested dividends) within a 61-day period beginning 30 days before and ending 30 days after such redemption. Any loss realized upon a shareholder's sale, redemption or other disposition of shares with a tax holding period of six months or less will be treated as a long-term capital loss to the extent of any capital gain dividend distributed with respect to such shares. The "wash sale" restrictions also apply to an investor who holds a security both within a tax-deferred account and in a taxable account; sales and repurchases between two accounts will be considered as wash sales.

Under certain circumstances, the sales charge incurred in acquiring shares of a Fund may not be taken into account in determining the gain or loss on the disposition of those shares. This rule applies where shares of a Fund are disposed of within 90 days after the date on which they were acquired

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and new shares of a RIC are acquired without a sales charge or at a reduced sales charge prior to January 31 of the calendar year following the calendar year of the disposition. In that case, the gain or loss realized on the disposition will be determined by excluding from the tax basis of the shares disposed of all or a portion of the sales charge incurred in acquiring those shares. This exclusion applies to the extent that the otherwise applicable sales charge with respect to the newly acquired shares is reduced as a result of the shareholder having incurred a sales charge initially. The portion of the sales charge affected by this rule will be treated as a sales charge paid for the new shares.

Each shareholder's Form 1099 will report the cost basis of any such shares that were redeemed, sold, or exchanged during the year, and the form will report whether the gain or loss is treated as short-term or long-term. This information will be reported to the IRS. Each shareholder should inform the Fund of such shareholder's cost selection for tax reporting purposes at the time of the sale or exchange of Fund shares or provide in advance a standing cost basis method for the shareholder's account. If a shareholder does not provide cost basis instructions, the Fund's default method will be used.

#### Tax Information Notices
Written notices will be sent to shareholders (by United States mail and/or electronic delivery, as applicable) regarding the tax status of all distributions made (or deemed to have been made) during each taxable year, including the amount of qualified dividend income for individuals, the amount qualifying for the corporate dividends-received deduction (if applicable) and the amount of capital gain dividends, undistributed capital gains (if any), tax credits (if applicable), and cumulative return of capital (if any).

#### Important Notice Regarding Taxpayer IRS Certification and Backup Withholding
Pursuant to the Code and Regulations, the Funds may be required to withhold a percentage of all reportable payments, including any taxable dividends, capital gains distributions or share redemption proceeds, at the specified rate in effect when such payments are made, for an account which does not have a taxpayer identification number and certain required certifications. The Funds reserve the right to refuse to open an account for any person failing to provide a taxpayer identification number along with the required certifications. The Funds will furnish shareholders, within 31 days after the end of the calendar year, with the information that is required by the IRS for preparing income tax returns. The Funds will also provide this same information to the IRS in the manner required by the IRS. Depending on your state of residence, the information may also be filed with your state taxing authority.

Some shareholders may be subject to withholding of United States federal income tax on dividends and redemption payments from the Funds ("backup withholding") at the specified rate in effect when such payments are made. Corporate shareholders and certain other shareholders specified in the Code generally are exempt from such backup withholding. Generally, shareholders subject to backup withholding will be (i) those for whom a certified taxpayer identification number is not on file with the Fund, (ii) those about whom notification has been received (either by the shareholder or the Fund) from the IRS that they are subject to backup withholding or (iii) those who, to the Fund's knowledge, have furnished an incorrect taxpayer identification number. Generally, to avoid backup withholding, a shareholder must, at the time an account is opened, certify under penalties of perjury that the social security number or taxpayer identification number furnished is correct and that he or she is not subject to backup withholding. From time to time, the shareholder may also be requested to provide certification of the validity of their taxpayer identification number.

#### Tax Shelter Reporting Regulations
Under Treasury Regulations, if a domestic shareholder recognizes a loss with respect to a Fund in excess of $2 million or more for a non-corporate domestic shareholder or $10 million or more for a corporate domestic shareholder in any single taxable year, such shareholder must file with the IRS a disclosure statement on Form 8886. Although direct investors of certain "portfolio securities" may be excepted from such a reporting requirement, under current Treasury and IRS guidance equity owners of a RIC, such as each Fund, are not excepted. The legal determination of whether a taxpayer's treatment of a loss is proper is independent of whether such a loss is reportable under these regulations. Significant penalties may apply if the reporting requirements are not complied with. **Shareholders should consult their own tax professionals regarding any tax shelter reporting obligations**.

#### Foreign Shareholders
Dividends paid by any of the Funds from net investment income and net realized short-term capital gains to a shareholder who is a nonresident alien individual, a foreign trust or estate, a foreign corporation or a foreign partnership (a "foreign shareholder") will be subject to United States withholding tax at a rate of 30% unless a reduced rate of withholding or a withholding exemption is provided under an applicable tax treaty provided such income is not effectively connected with a U.S. trade or business carried on by the foreign shareholder. Dividends paid by any of the Funds to foreign shareholders that are derived from short-term capital gains and certain qualifying U.S. source net interest income, and that are reported by a Fund as "interest-related dividends" or "short-term capital gain dividends," will generally not be subject to U.S. withholding tax, provided that the income would not be subject to U.S. federal income tax if earned directly by the foreign shareholder. Depending on the circumstances, the Funds may report all, some or none of the potentially eligible dividends as "interest-related dividends" or "short-term capital gain dividends." . Foreign shareholders are urged to consult their own tax professionals concerning the applicability of the United States withholding tax and any foreign taxes.

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Under the Foreign Account Tax Compliance Act (FATCA), a 30% withholding tax may apply to certain U.S.-source dividends, interest, and other withholdable payments made to certain foreign financial institutions or other foreign entities, unless such financial institution or entity enters into an agreement to collect and report certain information regarding their direct and indirect U.S. account holders and owners to tax authorities, comply with due diligence procedures, and satisfy certain other requirements or are otherwise exempt from FATCA. The obligation to withhold under FATCA applies even if the payment would otherwise be exempt from withholding under an applicable tax treaty or under the rules applicable to foreign shareholders. Under proposed Treasury Regulations on which taxpayers, including the Funds, may rely, the FATCA withholding obligation does not apply to a Fund's distributions of net capital gain and to the gross proceeds from a sale or redemption of Fund shares. Foreign shareholders are urged to consult their own tax professionals concerning the applicability of FATCA.

#### Other Tax Consequences
In addition to the United States federal income tax consequences described above, there may be other foreign, United States federal, state or local tax considerations and estate tax considerations applicable to the circumstances of a particular investor. The foregoing discussion is based upon the Code, judicial decisions and administrative regulations, rulings and practices in effect as of December 2022, all of which are subject to change and which, if changed, may be applied retroactively to a Fund, its shareholders and/or its assets. No rulings have been sought from the IRS or any other tax authority with respect to any of the tax matters discussed above.

From time to time, proposals are introduced before the United States Congress that if enacted would affect the foregoing discussion with respect to taxes and could also affect the availability of certain investments to a Fund. The discussion above reflects changes made by the Tax Cuts and Jobs Act of 2017.

The information included in the Prospectus with respect to taxes, including this section entitled Dividends, Distributions and Taxes, is a general and abbreviated summary of applicable provisions of the Code and Regulations as interpreted by the courts and the IRS as of December 2022 and is not intended as tax advice to any person. The Code and Regulations, as well as the current interpretations thereof, may be changed at any time by legislative, judicial, or administrative action. In addition, recent changes to the Code have given rise to a number of new provisions, and further guidance is expected over the coming months and years. ***Accordingly, prospective purchasers are urged to consult their own tax professionals with specific reference to their own tax situations, including the potential application of United States federal, state, local and foreign tax laws.***

Except as expressly set forth above, the foregoing discussion of United States federal income tax law relates solely to the application of that law to United States persons, i.e., United States citizens and residents and United States corporations, partnerships, trusts and estates. Each shareholder who is not a United States person should consider the United States and foreign tax consequences of ownership of shares of a Fund, including the possibility that such a shareholder may be subject to a United States withholding tax at a rate of 30% (or at a lower rate under an applicable tax treaty) on amounts constituting ordinary income received by him or her, where such amounts are treated as income from United States sources under the Code. The foregoing discussion does not address the special tax rules applicable to certain classes of investors, such as dealers in securities or currencies, traders in securities, banks, tax-exempt entities, life insurance companies, persons holding an interest in a Fund as a hedge or as part of a straddle or conversion transaction, or holders whose functional currency is not the United States dollar.

#### Tax Sheltered Retirement Plans
Shares of the Funds are offered in connection with the following retirement plans: IRA, Rollover IRA, SEP-IRA, SIMPLE IRA, Roth IRA, 401(k), Profit-Sharing, Money Purchase Pension Plans and certain 403(b) Retirement Plans. Write or call the Distributor at 800.243.4361 for further information about the plans.

#### PERFORMANCE INFORMATION
Performance information for the Funds (and any class of the Funds) may be included in advertisements, sales literature or reports to shareholders or prospective investors. Performance information in advertisements and sales literature may be expressed as a yield of a class of shares and as a total return of a class of shares.

The Funds may from time to time include in advertisements containing total return the ranking of those performance figures relative to such figures for groups of mutual funds having similar investment objectives as categorized by ranking services such as Lipper Analytical Services, Inc., CDA Investment Technologies, Inc., Weisenberger Financial Services, Inc. and Morningstar, Inc. Additionally, each Fund may compare its performance results to other investment or savings vehicles (such as certificates of deposit) and may refer to results published in various publications such as *Changing Times, Forbes, Fortune, Money, Barrons, Business Week and Investor's Business Daily, Stanger's Mutual Fund Monitor, The Stanger Register, Stanger's Investment Adviser, The Wall Street Journal, The New York Times, Consumer Reports, Registered Representative, Financial Planning, Financial Services Weekly, Financial World, U.S. News and World Report, Standard & Poor's The Outlook and Personal Investor*. The Funds may from time to time illustrate the benefits of tax deferral by comparing taxable investments to investments made through tax-deferred retirement plans. The total return may also be used to compare the performance of each Fund against certain widely acknowledged outside standards or indices for stock and bond market performance, such as the S&P 500<sup>®</sup> Index, Dow Jones Industrial Average, Bloomberg U.S. Aggregate Bond Index, Russell 2000<sup>®</sup> Index, Russell Midcap<sup>®</sup> Growth Index and MSCI EAFE<sup>®</sup> (Europe Australasia Far East) Index.

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Advertisements, sales literature and other communications may contain information about the Funds' and their subadvisers' current investment strategies and management style. Current strategies and style may change to allow the Funds to respond quickly to changing market and economic conditions. From time to time the Funds may include specific portfolio holdings or industries in such communications. To illustrate components of overall performance, each Fund may separate its cumulative and average annual returns into income and capital gains components.

Performance information reflects only the performance of a hypothetical investment in each class during the particular time period on which the calculations are based. Performance information should be considered in light of a Fund's investment objectives and policies, characteristics and quality of the portfolio, and the market condition during the given time period, and should not be considered as a representation of what may be achieved in the future.

#### Total Return
Standardized quotations of average annual total return for each class of shares will be expressed in terms of the average annual compounded rate of return for a hypothetical investment in such class of shares over periods of 1, 5 and 10 years or up to the life of the class of shares, calculated for each class separately pursuant to the following formula: P((1+T)(n)) = ERV (where P=a hypothetical initial payment of $1,000, T = the average annual total return, n = the number of years, and ERV = the ending redeemable value of a hypothetical $1,000 payment made at the beginning of the period). All total return figures reflect the deduction of a proportional share of each class's expenses (on an annual basis), deduction of the maximum initial sales load in the case of Class A Shares and the maximum CDSC applicable to a complete redemption of the investment in the case of Class C Shares, and assume that all dividends and distributions on each class of shares are reinvested when paid.

For average "after-tax" total return, the SEC rules mandate several assumptions, including that the calculations use the historical highest individual federal marginal income tax rates at the time of reinvestment, and that the calculations do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. These returns, for instance, assume that an investor has sufficient capital gains of the same character from other investments to offset any capital losses from the redemption. As a result, returns after taxes on distributions and sale of Fund shares may exceed returns after taxes on distributions (but before sale of Fund shares). These returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements.

The Funds may also compute cumulative total return for specified periods based on a hypothetical account with an assumed initial investment of $10,000. The cumulative total return is determined by dividing the NAV of this account at the end of the specified period by the value of the initial investment and is expressed as a percentage. Calculation of cumulative total return reflects payment of the Class A Share's maximum sales charge of 5.50% for the Funds and assumes reinvestment of all income dividends and capital gain distributions during the period.

The Funds also may quote annual, average annual and annualized total return and cumulative total return performance data, for any class of shares of the Funds, both as a percentage and as a dollar amount based on a hypothetical $10,000 investment for various periods other than those noted above. Such data will be computed as described above, except that (1) the rates of return calculated will not be average annual rates, but rather, actual annual, annualized or cumulative rates of return and (2) the maximum applicable sales charge will not be included with respect to annual, annualized or cumulative rate of return calculations.

#### Yield
The 30-day yield quotation as to a class of shares may be computed by dividing the net investment income for the period as to shares of that class by the maximum offering price of each share of that class on the last day of the period, according to the following formula:

![](img_d536e23309464f3.jpg)

Where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) = dividends and interest earned during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) = net expenses accrued for the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) = the average daily number of shares of the class outstanding during the period that were entitled to receive dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) = the maximum offering price per share of the class on the last day of the period.

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#### FINANCIAL STATEMENTS
The fiscal year of the Trust ends on September 30. The Trust will send financial statements to its shareholders at least semiannually. An annual report containing financial statements audited by the Trust's independent registered public accounting firm, PricewaterhouseCoopers LLP, will be sent to shareholders each year and is available without charge upon request.

The Funds' audited financial statements for the fiscal year ended September 30, 2022, appearing in the Funds' 2022 [Annual Report](http://www.sec.gov/Archives/edgar/data/1423227/000119312522297488/d414465dncsr.htm) to Shareholders, are incorporated herein by reference.

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#### APPENDIX A — DESCRIPTION OF RATINGS

#### A-1 and P-1 Commercial Paper Ratings
The Trust will only invest in commercial paper which at the date of investment is rated A-1 by S&P or P-1 by Moody's Investors Services, Inc. (Moody's), or, if not rated, is issued or guaranteed by companies which at the date of investment have an outstanding debt issue rated AA or higher by S&P or Aa or higher by Moody's.

Commercial paper rated A-1 by S&P has the following characteristics: Liquidity ratios are adequate to meet cash requirements. Long-term senior debt is rated "A" or better. The issuer has access to at least two additional channels of borrowing. Basic earnings and cash flow have an upward trend with allowance made for unusual circumstances. Typically, the issuer's industry is well established and the issuer has a strong position within the industry. The reliability and quality of management are unquestioned.

The rating P-1 is the highest commercial paper rating assigned by Moody's. Among the factors considered by Moody's in assigning ratings are the following: (1) evaluation of the management of the issuer; (2) economic evaluation of the issuer's industry or industries and an appraisal of speculative-type risks which may be inherent in certain areas; (3) evaluation of the issuer's products in relation to competition and customer acceptance; (4) liquidity; (5) amount and quality of long-term debt; (6) trend of earnings over a period of ten years; (7) financial strength of a parent company and the relationship which exists with the issuer; and (8) recognition by the management of obligations which may be present or may arise as a result of public interest questions and preparations to meet such obligations.

#### Moody's Investors Service, Inc.
**Aaa —** Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt-edge." Interest payments are protected by a large or exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.

**Aa —** Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group, they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuations of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities.

**A —** Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future.

**Baa —** Bonds which are rated Baa are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Moody's also provides credit ratings for preferred stocks. Preferred stock occupies a junior position to bonds within a particular capital structure.

**aaa —** An issue which is rated "aaa" is considered to be a top-quality preferred stock. This rating indicates good asset protection and the least risk of dividend impairment within the universe of preferred stocks.

**aa —** An issue which is rated "aa" is considered a high-grade preferred stock. This rating indicates that there is a reasonable assurance that earnings and asset protection will remain relatively well maintained in the foreseeable future.

**a —** An issue which is rated "a" is considered to be an upper-medium grade preferred stock. While risks are judged to be somewhat greater than in the "aaa" and "aa" classifications, earnings and asset protections are, nevertheless, expected to be maintained at adequate levels.

**baa —** An issue which is rated "baa" is considered to be a medium grade preferred stock, neither highly protected nor poorly secured. Earnings and asset protection appear adequate at present but may be questionable over any great length of time.

Moody's ratings for municipal notes and other short-term loans are designated Moody's Investment Grade (MIG). This distinction is in recognition of the differences between short-term and long-term credit risk. Loans bearing the designation MIG 1 are of the best quality, enjoying strong protection by establishing cash flows of funds for their servicing or by established and broad-based access to the market for refinancing, or both. Loans bearing the designation MIG 2 are of high quality, with margins of protection ample although not so large as in the preceding group. A short term issue having a demand feature (i.e., payment relying on external liquidity and usually payable on demand rather than fixed maturity dates) is differentiated by Moody's with the use of the Symbol VMIG, instead of MIG.

The Moody's Prime-2 rating and above indicates a strong capacity for repayment of short-term promissory obligations.

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#### S&P's Corporate Bond Ratings
**AAA —** Bonds rated AAA have the highest rating assigned by S&P. Capacity to pay interest and repay principal is extremely strong.

**AA —** Bonds rated AA have a very strong capacity to pay interest and repay principal and differ from AAA issues only in small degree.

**A —** Bonds rated A have a very strong capacity to pay interest and repay principal, although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than bonds in higher rated categories.

**BBB —** Bonds rated BBB are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.

S&P's top ratings for municipal notes issued after July 29, 1984 are SP-1 and SP-2. The designation SP-1 indicates a very strong capacity to pay principal and interest. A "+" is added for those issues determined to possess overwhelming safety characteristics. An "SP-2" designation indicates a satisfactory capacity to pay principal and interest.

Commercial paper rated A-2 or better by S&P is described as having a very strong degree of safety regarding timeliness and capacity to repay. Additionally, as a precondition for receiving an S&P commercial paper rating, a bank credit line and/or liquid assets must be present to cover the amount of commercial paper outstanding at all times.

#### Fitch
Rated entities in a number of sectors, including financial and non-financial corporations, sovereigns and insurance companies, are generally assigned Issuer Default Ratings (IDRs). IDRs opine on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the IDR is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, IDRs also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

In aggregate, IDRs provide an ordinal ranking of issuers based on the agency's view of their relative vulnerability to default, rather than a prediction of a specific percentage likelihood of default. For historical information on the default experience of Fitch-rated issuers, please consult the transition and default performance studies available from the Fitch Ratings website.

#### AAA: Highest credit quality.
'AAA' ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

#### AA: Very High credit quality.
'AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

#### A: High credit quality.
'A' ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

#### BBB: Good credit quality.
'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

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|:---|:---|:---|
| **APPENDIX B — CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS**<br>The following table sets forth information as of January 9, 2023, with respect to each person who owns of record or is known by the Trust to own of record or beneficially own 5% or more of any class of any Fund's outstanding securities (Principal Shareholders) and the name of each person who has beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a Fund (Control Person), as noted below.<br>\*These entities are omnibus accounts for many individual shareholder accounts. The Funds are not aware of the size or identity of the underlying individual accounts. | **APPENDIX B — CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS**<br>The following table sets forth information as of January 9, 2023, with respect to each person who owns of record or is known by the Trust to own of record or beneficially own 5% or more of any class of any Fund's outstanding securities (Principal Shareholders) and the name of each person who has beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a Fund (Control Person), as noted below.<br>\*These entities are omnibus accounts for many individual shareholder accounts. The Funds are not aware of the size or identity of the underlying individual accounts. | **APPENDIX B — CONTROL PERSONS AND PRINCIPAL SHAREHOLDERS**<br>The following table sets forth information as of January 9, 2023, with respect to each person who owns of record or is known by the Trust to own of record or beneficially own 5% or more of any class of any Fund's outstanding securities (Principal Shareholders) and the name of each person who has beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a Fund (Control Person), as noted below.<br>\*These entities are omnibus accounts for many individual shareholder accounts. The Funds are not aware of the size or identity of the underlying individual accounts. |
| **CONTROL PERSON<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF FUND OUTSTANDING** |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS GLOBAL ALLOCATION FUND  | 29.00% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS INTERNATIONAL SMALL-CAP FUND  | 72.01% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS NFJ EMERGING MARKETS VALUE FUND  | 65.82% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS<br>ATTN MUTUAL FUNDS DEPT 4TH FLOOR<br>499 WASHINGTON BLVD JERSEY CITY NJ 07310 | VIRTUS SEIX HIGH YIELD INCOME FUND | 32.97% |
| VIRTUS STRATEGY TRUST<br>ON BEHALF OF VIRTUS GLOBAL ALLOCATION FUND<br>ATTN VSS EQUITY OPERATIONS<br>3333 PIEDMONT RD NE STE 1500 <br>ATLANTA GA 30305  | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND  | 83.54% |

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| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS CONVERTIBLE FUND-CLASS P  | 15.98% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 5.95% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS DUFF & PHELPS WATER FUND-CLASS P  | 13.85% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P | 11.08% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 13.5% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS SHORT DURATION HIGH INCOME FUND-CLASS A  | 6.6% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS SHORT DURATION HIGH INCOME FUND-CLASS C  | 6.88% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS SHORT DURATION HIGH INCOME FUND-CLASS P | 7.96% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C  | 6.23% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS P  | 16.73% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS P  | 30.98% |
| AMERICAN ENTERPRISE INVESTMENT SVC \*<br>FBO #XXXXXXXX<br>707 2ND AVENUE SOUTH<br>MINNEAPOLIS MN 55402-2405 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS C  | 10.54% |

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| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
| ASCENSUS TRUST COMPANY \*<br>[TRUSTACCTDESC] [TRUSTACCTNO] <br>P.O. BOX 10758 <br>FARGO ND 58106-0758  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 5.11% |
| BNY MELLON CUSTODIAN FOR <br>SOUTH DAKOTA COLLEGEACCESS 529 PLAN<br>AGE-BASED 1 (AGES 0-8<br>4400 COMPUTER DR<br>WESTBOROUGH MA 01581-1755  | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 7% |
| BNY MELLON CUSTODIAN FOR <br>SOUTH DAKOTA COLLEGEACCESS 529 PLAN <br>AGE-BASED 2 (AGES 9-10) <br>4400 COMPUTER DR <br>WESTBOROUGH MA 01581-1755  | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 5.79% |
| BNY MELLON CUSTODIAN FOR <br>SOUTH DAKOTA COLLEGEACCESS 529 PLAN <br>AGE-BASED 6 (AGE 14) <br>4400 COMPUTER DR <br>WESTBOROUGH MA 01581-1755  | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 5.76% |
| BNY MELLON CUSTODIAN FOR <br>SOUTH DAKOTA COLLEGEACCESS 529 PLAN <br>AGE-BASED 7 (AGE 15) <br>4400 COMPUTER DR <br>WESTBOROUGH MA 01581-1755  | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 6.44% |
| BNY MELLON CUSTODIAN FOR SOUTH DAKOTA COLLEGEACCESS 529 PLAN AGE-BASED 9 (AGES 17 AND OVER)<br>4400 COMPUTER DR<br>WESTBOROUGH MA 01581-1755  | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 15.69% |
| BNYM I S TRUST CO <br>CUST FOR THE NON-DFI SIMPLE IRA OF <br>JOHNSON HARKNESS & PARK<br>FBO VIJAYA SUBRAHMANYAM<br>AURORA IL 60504-3237  | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C  | 5.72% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS CONVERTIBLE FUND-CLASS A  | 21.11% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS CONVERTIBLE FUND-CLASS C  | 6.4% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 11.11% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 11.89% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 5.84% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 28.56% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 33.16% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS GLOBAL ALLOCATION FUND-CLASS R6  | 36.55% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS INSTL  | 95.15% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS R6  | 81.32% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 6.19% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 17.11% |
| CHARLES SCHWAB & CO INC \*<br>SPECIAL CUSTODY ACCT FBO CUSTOMERS<br>ATTN MUTUAL FUNDS<br>211 MAIN ST<br>SAN FRANCISCO CA 94105-1905 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS - R6  | 75.57% |

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| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
|  | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS A  | 56.80% |
|  | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C  | 13.45% |
|  | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS INSTL  | 80.96% |
|  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS A  | 7.88% |
|  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS INSTL  | 8.92% |
| DCGT\* <br>AS TTEE AND/OR CUSTODIAN FBO<br>PLIC VARIOUS RETIREMENT PLANS OMNIBUS ATTN NPIO TRADE DESK <br>711 HIGH ST<br>DES MOINES IA 50392-0001  | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS A  | 5.24% |
| DONALD CHARLES BURKE LINDA JEANNE BURKE JTWROS<br>SUBJECT TO VIR TOD RULES<br>LANGHORNE PA 19047-1931  | VIRTUS GLOBAL ALLOCATION FUND-CLASS ADMIN  | 8.74% |
| EDWARD D. JONES AND CO \*<br>FOR THE BENEFIT OF CUSTOMERS<br>12555 MANCHESTER ROAD<br>ST LOUIS MO 63131-3710 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 5.74% |
| JP MORGAN SECURITIES LLC \*<br>OMNIBUS ACCOUNT FOR THE EXCLUSIVE <br>BENEFIT OF CUSTOMERS<br>4 CHASE METROTECH CENTER 3RD FLOOR <br>MUTUAL FUND DEPARTMENT <br>BROOKLYN NY 11245  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 5.64% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS CONVERTIBLE FUND-CLASS P  | 18.77% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 7.01% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS DUFF & PHELPS WATER FUND-CLASS P  | 13.15% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P  | 8.92% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 7.8% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 9.36% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS P  | 14.46% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C  | 11.06% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS P  | 38.6% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS P  | 5.7% |
| LPL FINANCIAL \*<br>4707 EXECUTIVE DR<br>SAN DIEGO CA 92121-3091 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS P  | 12.25% |
| MATRIX TRUST COMPANY \*<br>BAILARD INC. 401(K) PLAN <br>BOX 52129<br>PHOENIX AZ 85072-2129  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS P  | 7.85% |
| MATRIX TRUST COMPANY TRUSTEE FBO VOYA IM NOTIONAL INVESTMENT COMP 717 17TH STREET SUITE 1300DENVER CO 80202  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS R6  | 12.69% |
| MERRILL LYNCH PIERCE FENNER & SMITH \*<br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS <br>4800 DEER LAKE DRIVE  | VIRTUS CONVERTIBLE FUND-CLASS P  | 15.9% |

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| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
| <br>EAST JACKSONVILLE FL 32246-6484 |  |  |
| <br>EAST JACKSONVILLE FL 32246-6484 | VIRTUS DUFF & PHELPS WATER FUND-CLASS P  | 32.71% |
| <br>EAST JACKSONVILLE FL 32246-6484 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 5.86% |
| <br>EAST JACKSONVILLE FL 32246-6484 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P  | 38.96% |
| <br>EAST JACKSONVILLE FL 32246-6484 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS P  | 29.22% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS CONVERTIBLE FUND-CLASS A  | 5.44% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS CONVERTIBLE FUND-CLASS C  | 10.72% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 17.28% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS DUFF & PHELPS WATER FUND-CLASS C | 6.93% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS GLOBAL ALLOCATION FUND-CLASS A | 13.49% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS GLOBAL ALLOCATION FUND-CLASS C  | 14.33% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A | 14.74% |
| MLPF & S <br>FOR THE SOLE BENEFIT OF ITS CUSTOMERS ATTN FUND ADMN<br>4800 DEER LAKE DR E FL 3<br>JACKSONVILLE FL 32246-6484  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C | 7.07% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS CONVERTIBLE FUND-CLASS A  | 6.67% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS CONVERTIBLE FUND-CLASS C  | 15.81% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS CONVERTIBLE FUND-CLASS P  | 34.68% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 11.34% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 15.88% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS DUFF & PHELPS WATER FUND-CLASS P  | 21.23% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS GLOBAL ALLOCATION FUND-CLASS A  | 5.83% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS GLOBAL ALLOCATION FUND-CLASS P  | 13.69% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 8.28% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS P  | 5.48% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 9.74% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 12.31% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS P  | 36.17% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS A  | 9.68% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS INSTL | 6.17% |
| MORGAN STANLEY SMITH BARNEY LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF ITSL 3CUSTOMERS 1 NEW YORK PLAZA FL 12<br>NEW YORK NY 10004-1901  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS P  | 25.82% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS CONVERTIBLE FUND-CLASS A  | 18.45% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 29.86% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 16.91% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 5.81% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 23.78% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS GLOBAL ALLOCATION FUND-CLASS A  | 8.73% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 18.23% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 10.26% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 17.54% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS P  | 18.1% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS R6  | 7.46% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 8.72% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 30.07% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS A  | 13.07% |
| NATIONAL FINANCIAL SERVICES LLC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS <br>ATTN MUTUAL FUNDS DEPT <br>499 WASHINGTON BLVD FL 4<br>JERSEY CITY NJ 07310-2010 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS A  | 31.59% |

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| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
|  | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS P  | 16.25% |
|  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS A  | 38.18% |
|  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS INSTL  | 66.77% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS CONVERTIBLE FUND-CLASS A  | 6.96% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS CONVERTIBLE FUND-CLASS C  | 10.82% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 10.02% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS CONVERTIBLE FUND-CLASS R6  | 9.25% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 6.94% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 13.68% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 8.51% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS GLOBAL ALLOCATION FUND-CLASS A  | 11.25% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS GLOBAL ALLOCATION FUND-CLASS C  | 17.94% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 7.63% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 10.6% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 10.16% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 8.2% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS A  | 9.24% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C  | 22.37% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS P  | 20.22% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS A  | 27.54% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS A  | 8.93% |
| PERSHING LLC \*1 PERSHING PLZJERSEY CITY NJ 07399-0002 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS C  | 24.66% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 9.25% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 8.89% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 8.71% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS GLOBAL ALLOCATION FUND-CLASS A  | 5.73% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS GLOBAL ALLOCATION FUND-CLASS C  | 6.31% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 16.67% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P | 5.88% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 16.88% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS P  | 29.73% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 5.43% |
| RAYMOND JAMES \*<br>OMNIBUS FOR MUTUAL FUNDS<br>HOUSE ACCT FIRM XXXXXX15<br>ATTN COURTNEY WALLER<br>880 CARILLON PKWY<br>ST PETERSBURG FL 33716-1100 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 13.76% |
| RBC CAPITAL MARKETS LLC \*<br>MUTUAL FUND OMNIBUS PROCESSING ATTN MUTUAL FUND OPS MANAGER <br>60 S 6TH ST<br>MINNEAPOLIS MN 55402-4400  | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 5.38% |
| RBC CAPITAL MARKETS LLC \*<br>MUTUAL FUND OMNIBUS PROCESSING ATTN MUTUAL FUND OPS MANAGER <br>60 S 6TH ST<br>MINNEAPOLIS MN 55402-4400  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS C  | 7.2% |
| STATE STREET BANK CUSTODIAN \*  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 9.81% |

---

------

---

| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
| <br>(FBO) CUSTODIAN ADP ACCESS<br>1 LINCOLN ST<br>BOSTON MA 02111-2901 |  |  |
| <br>(FBO) CUSTODIAN ADP ACCESS<br>1 LINCOLN ST<br>BOSTON MA 02111-2901 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS A  | 5.38% |
| SUZANNE C M MCKENNA TRSTE <br>SUZANNE C M MCKENNA REVOCABLE TRUST U/A <br>GLENCOE IL 60022-1914  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS P  | 14.81% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 8.61% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS CONVERTIBLE FUND-CLASS ADMIN  | 86.76% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 6.44% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS GLOBAL ALLOCATION FUND-CLASS INSTL  | 5.32% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P | 8.08% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 6.95% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 5.04% |
| TD AMERITRADE INC \*<br>FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS<br>PO BOX 2226<br>OMAHA NE 68103-2226 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS P  | 7.71% |
| U.S. BANK FBO<br>FOLEY & LARDNER CASH BALANCE PLAN<br>1555 N RIVERCENTER DRIVE SUITE 302 MILWAUKEE WI 53212  | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS R6 | 10.91% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS CONVERTIBLE FUND-CLASS P  | 7.81% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS DUFF & PHELPS WATER FUND-CLASS P  | 12.45% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS GLOBAL ALLOCATION FUND-CLASS P  | 11.39% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS A  | 6.21% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS INTERNATIONAL SMALL-CAP FUND-CLASS C  | 40.53% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 5.14% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS P | 7.42% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS P | 14.81% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS A  | 13.17% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS P  | 43.46% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS C  | 30.55% |
| UBS WM USA \*OMNI ACCOUNT M/F SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI1000 HARBOR BLVDWEEHAWKEN NJ 07086-6761 | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS P | 45.19% |
| VANGUARD MARKETING CORPORATION \*<br>100 VANGUARD BLVD<br>MALVERN PA 19355-2331  | VIRTUS CONVERTIBLE FUND-CLASS ADMIN  | 8.92% |
| VANGUARD MARKETING CORPORATION \*<br>100 VANGUARD BLVD<br>MALVERN PA 19355-2331  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS ADMIN  | 16.72% |
| VFS AS P/ADM TO LEGACY ALLIANZGI <br>FUND TRUSTEE DC PLAN<br>ONE FINANCIAL PLAZA<br>HARTFORD CT 06103  | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS R6 | 8.79% |
| VIRTUS PARTNERS INC <br>ONE FINANCIAL PLAZA 26TH FL<br>HARTFORD CT 06103  | VIRTUS CONVERTIBLE FUND-CLASS R6 | 87.36% |
| VIRTUS PARTNERS INC <br>ONE FINANCIAL PLAZA 26TH FL<br>HARTFORD CT 06103  | VIRTUS GLOBAL ALLOCATION FUND-CLASS ADMIN | 88.5% |
| VIRTUS PARTNERS INC <br>ONE FINANCIAL PLAZA 26TH FL<br>HARTFORD CT 06103  | VIRTUS SEIX HIGH YIELD INCOME FUND-CLASS ADMIN  | 78.44% |

---

------

---

| | | |
|:---|:---|:---|
| **PRINCIPAL SHAREHOLDERS<br>NAME AND ADDRESS** | **FUND** | **PERCENTAGE (%) OF CLASS OUTSTANDING** |
| VIRTUS STRATEGY TRUST<br>ON BEHALF OF VIRTUS GLOBAL ALLOCATION FUND ATTN VSS EQUITY OPERATIONS<br>3333 PIEDMONT RD NE STE 1500<br>ATLANTA GA 30305  | VIRTUS NFJ GLOBAL SUSTAINABILITY FUND-CLASS INSTL | 93.19% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS CONVERTIBLE FUND-CLASS A  | 9.42% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS CONVERTIBLE FUND-CLASS C  | 33.94% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS CONVERTIBLE FUND-CLASS INSTL  | 13.03% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS DUFF & PHELPS WATER FUND-CLASS A  | 6.86% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS DUFF & PHELPS WATER FUND-CLASS C  | 16.08% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS DUFF & PHELPS WATER FUND-CLASS INSTL  | 8.49% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS GLOBAL ALLOCATION FUND-CLASS A  | 11.12% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS GLOBAL ALLOCATION FUND-CLASS C  | 27.13% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS A  | 16.99% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS C  | 9.4% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS NEWFLEET SHORT DURATION HIGH INCOME FUND-CLASS INST  | 23.32% |
| WELLS FARGO CLEARING SERVICES LLC \*<br>SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br>2801 MARKET ST<br>SAINT LOUIS MO 63103-2523 | VIRTUS NFJ EMERGING MARKETS VALUE FUND-CLASS C | 28.87% |

---

------

**VIRTUS STRATEGY TRUST** 

**PART C — OTHER INFORMATION** 

<u>Item 28.</u> <u>Exhibits</u>

(a)&nbsp;&nbsp;&nbsp;&nbsp; Agreement and Declaration of Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Amended and Restated Agreement and Declaration of Trust of Virtus Strategy Trust (formerly, Allianz Funds Multi-Strategy Trust) ("Registrant" or "VST"), dated March 28, 2008, filed via EDGAR (as Exhibit a.1) with Post-Effective Amendment No. 129 (File No. 333-148624) on March 31, 2008, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508069706/dex99a1.htm)

2. [Amendment to the Amended and Restated Declaration of Trust of the Registrant, dated January 28, 2021, filed via EDGAR (as Exhibit a.2) with Post-Effective Amendment No. 142 (File No. 333-148624) on January 29, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312521023122/d31339dex99a2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Second Amended and Restated By-Laws of the Registrant dated October 7, 2015, filed via EDGAR (as Exhibit b.1) with Post-Effective Amendment No. 185 (File No. 333-148624) on December 14, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312515385443/d77696dex99b1.htm)

2. [Amendment No. 1 to the Second Amended and Restated By-Laws of the Registrant, dated February 1, 2021, filed via EDGAR (as Exhibit b.2) with Post-Effective Amendment No. 142 (File No. 333-148624) on January 29, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312521023122/d31339dex99b2.htm)

3. \*Amendment
 No. 2 to the Second Amended and Restated By-Laws of the Registrant, dated November 16,
 2022, filed via EDGAR (as Exhibit b.3) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Instruments Defining Rights of Securities Holdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Articles III and V of Registrant's Amended and Restated Agreement and Declaration of Trust and Articles IX and XI of Registrant's By-Laws, each as amended.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508069706/dex99a1.htm)

2. [Article 9 (Issuance of Shares Certificates) and Article 11 (Shareholders' Voting Powers and Meetings) of Amended and Restated Bylaws.](https://www.sec.gov/Archives/edgar/data/1423227/000119312515385443/d77696dex99b1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investment Advisory Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Investment Advisory Agreement between Registrant and Virtus Investment Advisors, Inc. ("VIA") effective February 1, 2021, filed via EDGAR (as Exhibit d.1) with Post-Effective Amendment No. 145 (File No. 333-148624) on January 28, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312522020356/d265306dex99d1.htm)

2. Subadvisory
 Agreement among Registrant, VIA and Duff & Phelps Investment Management Co.
 ("Duff & Phelps") with respect to Virtus Duff & Phelps
 Water Fund ("Water Fund") dated July 25, 2022, filed via EDGAR (as Exhibit
 d.2) herewith.

3. [Subadvisory Agreement among Registrant, VIA and NFJ Investment Group, LLC ("NFJ") on behalf of Virtus NFJ Emerging Markets Value Fund ("Emerging Markets Value Fund") dated February 1, 2021, filed via EDGAR (as Exhibit d.3) with Post-Effective Amendment No. 145 (File No. 333-148624) on January 28, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312522020356/d265306dex99d3.htm)

4. \*Subadvisory
 Agreement among Registrant, VIA and NFJ on behalf of Virtus NFJ Global Sustainability
 Fund ("Global Sustainability Fund") dated July 25, 2022, filed via EDGAR
 (as Exhibit d.4) herewith.

5. \*Subadvisory
 Agreement among Registrant, VIA and Virtus Fixed Income Advisers, LLC ("VFIA")
 acting by and through its division, Newfleet Asset Management ("Newfleet"),
 on behalf of Virtus Newfleet Short Duration High Income Fund ("Short Duration High
 Income Fund") dated July 25, 2022, filed via EDGAR (as Exhibit d.5) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. \*Subadvisory
 Agreement among Registrant, VIA and VFIA, acting by and through its division, Seix Investment
 Advisors ("Seix"), on behalf of Virtus Seix High Yield Income Fund ("High
 Yield Income Fund") dated July 25, 2022, filed via EDGAR (as Exhibit d.6) herewith.

7. \*Subadvisory
 Agreement among Registrant, VIA and Voya Investment Management Co. LLC ("Voya")
 on behalf of Virtus Convertible Fund ("Convertible Fund") dated July 25,
 2022, filed via EDGAR (as Exhibit d.7) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Underwriting Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Underwriting Agreement between Registrant, Virtus Investment Trust ("Investment Trust") and VP Distributors, LLC ("VP Distributors"), made as of February 1, 2021, filed via EDGAR (as Exhibit e.1) with Post-Effective Amendment No. 222 to Investment Trust's Registration Statement (File No. 033-36528) on October 27, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/867297/000119312521309472/d205362dex99e1.htm)

2. [Form of Sales Agreement between VP Distributors and dealers, effective September 2019, filed via EDGAR (as Exhibit e.2) with Post-Effective Amendment No. 41 to Virtus Alternative Solutions Trust's ("VAST") Registration Statement (File No. 333-191940) on October 30, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000110465919057577/tv531182_ex-e2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [Amended Annex A to Form of Sales Agreement between VP Distributors and dealers effective December 2022, filed via EDGAR (as Exhibit e.2.a) with Post-Effective Amendment No. 141 to Virtus Equity Trust's ("VET") Registration Statement (File No. 002-16590) on January 24, 2023, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000093041322002079/c105028_ex99e2a.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [Deferred Compensation Plan effective April 8, 2022, filed via EDGAR (as Exhibit f) with Post-Effective Amendment No. 141 to Virtus Equity Trust's ("VET") Registration Statement (File No. 002-16590) on January 24, 2023, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000093041323000115/c105278_ex99f.htm)

(g) Custodian Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Custody Agreement between VAST and The Bank of New York Mellon dated March 21, 2014, filed via EDGAR (as Exhibit g.1) with Pre-Effective Amendment No. 3 to VAST's Registration Statement (File No. 333-191940) on March 28, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914000977/t1400537_ex99g1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [Amendment to Custody Agreement between VAST and The Bank of New York Mellon effective May 19, 2015, filed via EDGAR (as Exhibit g.1.b) with Post-Effective Amendment No. 16 to VAST's Registration Statement (File No. 333-191940) on May 29, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104915004728/ex99-g1b.htm)

b) [Amendment to Custody Agreement between VAST and The Bank of New York Mellon dated as of September 1, 2015, filed via EDGAR (as Exhibit g.1.c) with Post-Effective Amendment No. 24 to VAST's Registration Statement (File No. 333-191940) on February 26, 2016, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104916012159/t1600324_ex99-g1c.htm)

c) [Joinder Agreement and Amendment to Custody Agreement between VAST, Virtus Equity Trust ("VET") and Virtus Opportunities Trust ("VOT") (VET and VOT collectively, "Virtus Mutual Funds"), Virtus Asset Trust ("VAT"), Virtus Retirement Trust ("VRT"; formerly known as Virtus Institutional Trust), Virtus Variable Insurance Trust ("VVIT") and The Bank of New York Mellon dated September 11, 2017, filed via EDGAR (as Exhibit g.1.d) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-g1d.htm)

d) [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VAT, VRT and VVIT and The Bank of New York Mellon dated as of December 1, 2018, filed via EDGAR (as Exhibit 9(e)) to Form N-14 (File No. 333-228766) on December 12, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420418064319/tv508990_ex99-9e.htm)

e) [Form of Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VVIT and VAT and The Bank of New York Mellon dated as of March 8, 2019, filed via EDGAR (as Exhibit g.1.e) with Post-Effective Amendment No. 82 to VVIT's Registration Statement (File No. 033-05033) on April 22, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/792359/000114420419020594/tv519100_ex99-g1e.htm)

f) [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VVIT and VAT and The Bank of New York Mellon dated as of May 22, 2019, filed via EDGAR (as Exhibit g.1.f) with Post-Effective Amendment No. 123 to VET's Registration Statement (File No. 002-16590) on June 12, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420419030712/tv523291_ex99-g1f.htm)

g) [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT and The Bank of New York Mellon dated as of September 1, 2019, filed via EDGAR (as Exhibit g.1.g) with Post-Effective](https://www.sec.gov/Archives/edgar/data/1005020/000114420419046538/tv530053_ex99-g1g.htm)

---

| | |
|:---|:---|
|  | [Amendment No. 105 to VOT's Registration Statement (File No. 033-65137) on September 30, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000114420419046538/tv530053_ex99-g1g.htm) |
| h) | [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT and the Bank of New York Mellon dated as of November 18, 2019, filed via EDGAR (as Exhibit g.1.h) with Post-Effective Amendment No. 109 to VOT's Registration Statement (File No. 033-65137) on January 22, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465920005966/tv536301_ex99g1h.htm) |
| i) | [Amendment and Joinder to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT, VATS Offshore Fund, Ltd. ("VATS") and the Bank of New York Mellon dated as of August 27, 2020, filed via EDGAR (as Exhibit g.1.i) with Post-Effective Amendment No. 133 to VET's Registration Statement (File No. 002-16590) on September 23, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920107672/tm2031285d3_ex99-g1i.htm) |
| j) | [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT, VATS and the Bank of New York Mellon dated as of November 16, 2020, filed via EDGAR (as Exhibit g.1.j) with Post-Effective Amendment No. 136 to VET's Registration Statement (File No. 002-16590) on December 7, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920132902/tm2031285-6_exg1j.htm) |
| k) | [Amendment to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT, VATS and the Bank of New York Mellon dated as of December 1, 2020, filed via EDGAR (as Exhibit g.1.k) with Post-Effective Amendment No. 116 to VOT's Registration Statement (File No. 033-65137) on January 25, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921007301/tm213358d1_ex-g1k.htm) |
| l) | [Amendment and Joinder to Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT, VATS, Investment Trust, VST and the Bank of New York Mellon dated as of May 7, 2021, filed via EDGAR (as Exhibit g.1.l) with Post-Effective Amendment No. 119 to VOT's Registration Statement (File No. 033-65137) on June 21, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921083482/tm2118897d1_ex-g1l.htm) |
| m) | [Amendment and Custody Agreement between VAST, Virtus Mutual Funds, VRT, VAT, VVIT, VATS, Investment Trust, VST and the Bank of New York Mellon dated as of July 26, 2021, filed via EDGAR (as Exhibit 9(n)) to VOT's Form N-14 (File No. 333-261341) on November 24, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921143538/tm2133731d1_ex9n.htm) |
| n) | [Amendment and Joinder to Custody Agreement between The Merger Fund<sup>®</sup> ("TMF"), The Merger Fund<sup>®</sup> VL ("TMFVL"), VAST, Virtus Event Opportunities Trust ("VEOT"), Virtus Mutual Funds, VRT, VAT, VVIT, VATS, Investment Trust, VST and the Bank of New York Mellon dated as of February 12, 2022, filed via EDGAR (as Exhibit g.1.n) with Post-Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-g1n.htm) |
| o) | [Amendment and Joinder to Custody Agreement between TMF, TMFVL, VAST, VEOT, Virtus Mutual Funds, VRT, VAT, VVIT, VATS, Investment Trust, VST, and the Bank of New York Mellon dated as of April 4, 2022, filed via EDGAR (as Exhibit g.1.o) with Post-Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-g1o.htm) |
| p) | [Amendment and Joinder to Custody Agreement between TMF, TMFVL, VAST, VEOT, Virtus Mutual Funds, VRT, VAT, VVIT, VATS, Investment Trust, VST, Stone Harbor Leveraged Load Fund LLC ("Leveraged Loan Fund") and the Bank of New York Mellon dated as of September 30, 2022, filed via EDGAR (as Exhibit g.1.p) with Post-Effective Amendment No. 52 to VAST's Registration Statement (File No. 333-191940) on December 12, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000093041322002079/c105028_ex99g1p.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [Foreign Custody Manager Agreement between VAST and The Bank of New York Mellon dated as of March 21, 2014, filed via EDGAR (as Exhibit g.2) with Pre-Effective Amendment No. 4 to VAST's Registration Statement (File No. 333-191940) on April 4, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914001055/t1400597_exg-2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [Amendment to Foreign Custody Manager Agreement between VAST and The Bank of New York Mellon dated as of August 19, 2014, filed via EDGAR (as Exhibit g.2.a) with Post-Effective Amendment No. 4 to VAST's Registration Statement (File No. 333-191940) on September 8, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914004463/t1401656_exg-2a.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) [Amendment to Foreign Custody Manager Agreement between VAST and The Bank of New York Mellon dated as of May 19, 2015, filed via EDGAR (as Exhibit g.2.b) with Post-Effective Amendment No. 16 to VAST's Registration Statement (File No. 333-191940) on May 29, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104915004728/ex99-g2b.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) [Amendment to Foreign Custody Manager Agreement between VAST and The Bank of New York Mellon dated as of September 1, 2015, filed via EDGAR (as Exhibit g.2.c) with Post-Effective Amendment No. 24 to VAST's Registration Statement (File No. 333-191940) on February 26, 2016, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104916012159/t1600324_ex99-g2c.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) [Joinder Agreement and Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, Duff & Phelps Select MLP and Midstream Energy Fund Inc. ("DSE"), Virtus Global Multi-Sector Income Fund ("VGI"), Virtus Total Return Fund Inc. ("ZTR") and The Bank of New York Mellon dated as of December 1, 2018, filed via EDGAR (as Exhibit 9(j)) to Form N-14 (File No. 333-228766) on December 12, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420418064319/tv508990_ex99-9j.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) [Form of Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, VGI, ZTR and The Bank of New York Mellon dated as of March 8, 2019, filed via EDGAR (as Exhibit g.2.e) with Post-Effective Amendment No. 82 to VVIT's Registration Statement (File No. 033-05033) on April 22, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/792359/000114420419020594/tv519100_ex99-g2e.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, VGI, ZTR and The Bank of New York Mellon dated as of May 22, 2019, filed via EDGAR (as Exhibit g.2.f) with Post-Effective Amendment No. 123 to VET's Registration Statement (File No. 002-16590) on June 12, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420419030712/tv523291_ex99-g2f.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, VGI, ZTR and The Bank of New York Mellon dated as of September 1, 2019, filed via EDGAR (as Exhibit g.2.g) with Post-Effective Amendment No. 105 to VOT's Registration Statement (File No. 033-65137) on September 30, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000114420419046538/tv530053_ex99-g2g.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, VGI, ZTR and The Bank of New York Mellon dated as of November 18, 2019, filed via EDGAR (as Exhibit g.2.h) with Post-Effective Amendment No. 109 to VOT's Registration Statement (File No. 033-65137) on January 22, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465920005966/tv536301_ex99g2h.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, Closed-End Funds and The Bank of New York Mellon dated as of August 27, 2020, filed via EDGAR (as Exhibit g.2.i) with Post-Effective Amendment No. 135 to VET's Registration Statement (File No. 002-16590) on October 19, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920116134/tm2033121d1_ex99-g2i.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, DSE, Closed-End Funds and The Bank of New York Mellon dated as of November 12, 2020, filed via EDGAR (as Exhibit g.2.l) with Post-Effective Amendment No. 136 to VET's Registration Statement (File No. 002-16590) on December 7, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920132902/tm2031285-6_exg2l.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, Investment Trust, VRT, VST, VVIT, DSE, VGI, ZTR, VATS, Investment Trust, VST, DSE, Virtus Artificial Intelligence & Technology Opportunities Fund (f/k/a Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund) ("AIO"), Virtus Convertible & Income 2024 Target Term Fund (f/k/a Virtus AllianzGI Convertible & Income 2024 Target Term Fund) ("CBH"), Virtus Convertible & Income Fund (f/k/a Virtus AllianzGI Convertible & Income Fund) ("NCV"), Virtus Convertible & Income Fund II (f/k/a Virtus AllianzGI Convertible & Income Fund II) ("NCZ II"), Virtus Diversified Income & Convertible Fund (f/k/a Virtus AllianzGI Diversified Income & Convertible Fund) ("ACV"), Virtus Equity & Convertible Income Fund (f/k/a Virtus AllianzGI Equity & Convertible Income Fund) ("NIE") and Virtus Dividend, Interest & Premium Strategy Fund ("NFJ" and together with AIO, CBH, NCV, NCZ II, ACV, and NIE, the "VCEFII") and The Bank of New York Mellon dated as of May 7, 2021, filed via EDGAR (as Exhibit g.2.k) with Post-Effective Amendment No. 121 to VOT's Registration Statement (File No. 033-65137) on September 27, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921119400/tm2127644d3_ex99-g2k.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) [Amendment to Foreign Custody Manager Agreement between VAST, Virtus Mutual Funds, VAT, VRT, VVIT, VATS, Investment Trust, VST, DSE, VGI, ZTR, VCEFII and The Bank of New York Mellon dated as of July 26, 2021, filed via EDGAR (as Exhibit 9(bb)) to VOT's Form N-14 (File No. 333-261341) on November 24, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921143538/tm2133731d1_ex9bb.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) [Amendment and Joinder to Foreign Custody Manager Agreement between VAST, TMF, TMFVL, VEOT, Virtus Mutual Funds, VAT, VRT, VVIT, VATS, Investment Trust, VST, DSE, VGI, ZTR, VCEFII and The Bank of New York Mellon dated as of February 12, 2022, filed via EDGAR (as Exhibit g.2.m) with Post-](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-g2m.htm)

---

| | |
|:---|:---|
|  | [Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-g2m.htm) |
| n) | [Amendment and Joinder to Foreign Custody Manager Agreement between TMF, TMFVL, VEOT, VAST, Virtus Mutual Funds, VAT, VRT, VVIT, VATS, Investment Trust, VST, Virtus Stone Harbor Emerging Markets Income Fund ("EDF"), Virtus Stone Harbor Emerging Markets Total Income Fund ("EDI") (VGI, ZTR, EDF and EDI, the "Closed-End Funds"), VCEFII and The Bank of New York Mellon dated as of April 4, 2022, filed via EDGAR (as Exhibit g.2.n) with Post-Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-g2n.htm) |
| o) | [Amendment and Joinder to Foreign Custody Manager Agreement between VAST, TMF, TMFVL, VEOT, Virtus Mutual Funds, VAT, VRT, VVIT, VATS, Investment Trust, VST, Virtus Stone Harbor Emerging Markets Income Fund ("EDF"), Virtus Stone Harbor Emerging Markets Total Income Fund ("EDI") (VGI, ZTR, EDF and EDI, the "Closed-End Funds"), VCEFII and The Bank of New York Mellon dated as of September 30, 2022, filed via EDGAR (as Exhibit g.2.o) with Post-Effective Amendment No. 52 to VAST's Registration Statement (File No. 333-191940) on December 12, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000093041322002079/c105028_ex99g2o.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Other Material Contracts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Transfer Agency and Service Agreement between VIT, VST and Virtus Fund Services, LLC ("Virtus Fund Services") effective February 1, 2021, filed via EDGAR (as Exhibit h.1) with Post-Effective Amendment No. 222 to Investment Trust's Registration Statement (File No. 033-36528) on October 27, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/867297/000119312521309472/d205362dex99h1.htm)

2. [Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon Investment Servicing (US) Inc. ("BNY Mellon"), dated April 15, 2011, filed via EDGAR (as Exhibit h.6) with Post-Effective Amendment No. 54 to Virtus Insight Trust's ("VIT") Registration Statement (File No. 033-64915) on April 27, 2012, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312512191644/d296954dex99h6.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [Adoption and Amendment Agreement among Virtus Mutual Funds, VAST, Virtus Fund Services and BNY Mellon, dated as of March 21, 2014, filed via EDGAR (as Exhibit h.2.b) with Pre-Effective Amendment No. 4 to VAST's Registration Statement (File No. 333-191940) on April 4, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914001055/t1400597_exh-2xb.htm)

b) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, Virtus Fund Services and BNY Mellon, dated as of August 19, 2014, filed via EDGAR (as Exhibit h.2.a) with Post-Effective Amendment No. 4 to VAST's Registration Statement (File No. 333-191940) on September 8, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914004463/t1401656_exh-2a.htm)

c) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among VAST, Virtus Mutual Funds, Virtus Fund Services and BNY Mellon dated as of June 1, 2014, filed via EDGAR (as Exhibit h.2.c) with Post-Effective Amendment No. 92 to VOT's Registration Statement (File No. 033-65137) on January 20, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000157104917000550/t1603088_ex99-h2c.htm)

d) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, Virtus Fund Services and BNY Mellon, dated as of November 12, 2014, filed via EDGAR (as Exhibit h.2.c) with Post-Effective Amendment No. 80 to VOT's Registration Statement (File No. 033-65137) on January 27, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000157104915000413/t1500036_ex99-h2c.htm)

e) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, Virtus Fund Services and BNY Mellon, dated as of May 28, 2015, filed via EDGAR (as Exhibit h.2.d) with Post-Effective Amendment No. 18 to VAST's Registration Statement (File No. 333-191940) on June 5, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104915004898/ex99-h2d.htm)

f) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of December 10, 2015, filed via EDGAR (as Exhibit h.2.e) with Post-Effective Amendment No. 35 to VRT's Registration Statement (File No. 033-80057) on January 8, 2016, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1004658/000157104916010608/ex99-h2e.htm)

g) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of February 1, 2017, filed via EDGAR (as Exhibit](https://www.sec.gov/Archives/edgar/data/34273/000157104917006960/t1702103_ex-h2g.htm)

---

| | |
|:---|:---|
|  | [h.2.g) with Post-Effective Amendment No. 112 to VET's Registration Statement (File No. 002-16590) on July 26, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000157104917006960/t1702103_ex-h2g.htm) |
| h) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of February 1, 2017, filed via EDGAR (as Exhibit h.2.h) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-h2h.htm) |
| i) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of September 18, 2017, filed via EDGAR (as Exhibit h.2.i) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-h2i.htm) |
| j) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of January 1, 2018, filed via EDGAR (as Exhibit h.2.j) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-h2j.htm) |
| k) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of September 20, 2018, filed via EDGAR (as Exhibit h.2.k) with Post-Effective Amendment No. 119 to VET's Registration Statement (File No. 002-16590) on November 16, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420418060472/tv504918_ex99-h2k.htm) |
| l) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of December 21, 2018, filed via EDGAR (as Exhibit h.2.l) with Post-Effective Amendment No. 120 to VET's Registration Statement (File No. 002-16590) on January 25, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420419002901/tv510669_ex99-h2l.htm) |
| m) | [Form of Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of March 22, 2019, filed via EDGAR (as Exhibit h.2.m) with Post-Effective Amendment No. 35 to VAT's Registration Statement (File No. 333-08045) on April 25, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1018593/000114420419021242/tv519254_ex-99h2m.htm) |
| n) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of May 22, 2019, filed via EDGAR (as Exhibit h.2.n) with Post-Effective Amendment No. 123 to VET's Registration Statement (File No. 002-16590) on June 12, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420419030712/tv523291_ex99-h2n.htm) |
| o) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of September 1, 2019, filed via EDGAR (as Exhibit h.2.o) with Post-Effective Amendment No. 105 to VOT's Registration Statement (File No. 033-65137) on September 30, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000114420419046538/tv530053_ex99-h2o.htm) |
| p) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of November 18, 2019, filed via EDGAR (as Exhibit h.2.p) with Post-Effective Amendment No. 109 to VOT's Registration Statement (File No. 033-65137) on January 22, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465920005966/tv536301_ex99h2p.htm) |
| q) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of August 27, 2020, filed via EDGAR (as Exhibit h.2.q) with Post-Effective Amendment No. 133 to VET's Registration Statement (File No. 002-16590) on September 23, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920107672/tm2031285d3_ex99-h2q.htm) |
| r) | [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Virtus Fund Services and BNY Mellon, dated as of November 13, 2020, filed via EDGAR (as Exhibit h.2.r) with Post-Effective Amendment No. 136 to VET's Registration Statement (File No. 002-16590) on December 7, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920132902/tm2031285-6_exh2r.htm) |
| s) | [Adoption Agreement and Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of June 9, 2021, filed via EDGAR (as Exhibit h.2.s) with Post-Effective Amendment No. 139 to VET's Registration Statement (File No. 002-16590) on August 2, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465921098893/tm2116274d2_exh2r.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t) [Amendment to Sub-Transfer and Shareholder Services Agreement among VAST, Virtus Mutual Funds, VAT, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of August 2, 2021, filed via EDGAR (as Exhibit 13(v)) to VOT's Form N-14 (File No. 333-261341) on November 24, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921143538/tm2133731d1_ex13v.htm)

u) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among Virtus Mutual Funds, VAT, VAST, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of December 1, 2021, filed via EDGAR (as Exhibit h.2.u) with Post-Effective Amendment No. 122 (File No. 033-65137) on December 6, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921146835/tm2134495d1_ex99-h2u.htm)

v) [Adoption Agreement and Amendment to Sub-Transfer Agency and Shareholder Services Agreement among TMF, VEOT, Virtus Mutual Funds, VAT, VAST, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of January 12, 2022, filed via EDGAR (as Exhibit h.2.v) with Post-Effective Amendment No. 45 to VAST's Registration Statement (File No. 333-191940) on February 24, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000110465922026510/tm227176-1_h2v.htm)

w) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among TMF, VEOT, Virtus Mutual Funds, VAT, VAST, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of February 24, 2022, filed via EDGAR (as Exhibit h.2.w) with Post-Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-h2w.htm)

x) [Amendment to Sub-Transfer Agency and Shareholder Services Agreement among TMF, VEOT, Virtus Mutual Funds, VAT, VAST, VRT, Investment Trust, VST, Virtus Fund Services and BNY Mellon, dated as of September 1, 2022, filed via EDGAR (as Exhibit h.2.x) with Post-Effective Amendment No. 128 to VOT's Registration Statement (File No. 033-65137) on September 27, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000093041322001697/c104558_ex-h2x.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [Administration Agreement between the Investment Trust, VST and Virtus Fund Services, effective as of February 1, 2021, filed via EDGAR (as Exhibit h.3) with Post-Effective Amendment No. 222 to Investment Trust's Registration Statement (File No. 033-36528) on October 27, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/867297/000119312521309472/d205362dex99h3.htm)

4. [Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of January 1, 2010, filed via EDGAR (as Exhibit h.5) with Post-Effective Amendment No. 50 to VIT's Registration Statement (File No. 033-64915) on February 25, 2010, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312510040866/dex99h5.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [First Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of June 30, 2010, filed via EDGAR (as Exhibit h.13) with Post-Effective Amendment No. 52 to VIT's Registration Statement (File No. 033-64915) on April 28, 2011, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312511114732/dex99h13.htm)

b) [Second Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of September 14, 2010, filed via EDGAR (as Exhibit h.14) with Post-Effective Amendment No. 52 to VIT's Registration Statement (File No. 033-64915) on April 28, 2011, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312511114732/dex99h14.htm)

c) [Third Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of March 15, 2011, filed via EDGAR (as Exhibit h.15) with Post-Effective Amendment No. 52 to VIT's Registration Statement (File No. 033-64915) on April 28, 2011, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312511114732/dex99h15.htm)

d) [Fourth Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of August 28, 2012, filed via EDGAR (as Exhibit h.4.d) with Post-Effective Amendment No. 56 to VIT's Registration Statement (File No. 033-64915) on April 29, 2013, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312513182356/d501199dex99h4d.htm)

e) [Fifth Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VP Distributors (since assigned to Virtus Fund Services) and BNY Mellon, effective as of December 18, 2012, filed via EDGAR (as Exhibit h.4.e) with Post-Effective Amendment No. 56 to VIT's Registration Statement (File No. 033-64915) on April 29, 2013, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1003859/000119312513182356/d501199dex99h4e.htm)

f) [Sixth Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, Virtus Fund Services and BNY Mellon, effective as of June 10, 2013, filed via EDGAR (as Exhibit h.4.f) with](https://www.sec.gov/Archives/edgar/data/1005020/000119312513253363/d510452dex99h4f.htm)

---

| | |
|:---|:---|
|  | [Post-Effective Amendment No. 64 to VOT's Registration Statement (File No. 033-65137) on June 10, 2013, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000119312513253363/d510452dex99h4f.htm) |
| g) | [Seventh Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, Virtus Fund Services and BNY Mellon, effective as of December 18, 2013, filed via EDGAR (as Exhibit h.4.g) with Post-Effective Amendment No. 70 to VOT's Registration Statement (File No. 033-65137) on January 27, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000157104914000181/t1300666_h4g.htm) |
| h) | [Joinder Agreement and Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VAST, VVIT, VATS, Virtus Fund Services and BNY Mellon, dated February 24, 2014, filed via EDGAR (as Exhibit h.4.h) with Pre-Effective Amendment No. 3 to VAST's Registration Statement (File No. 333-191940) on March 28, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104914000977/t1400537_ex99h4xh.htm) |
| i) | [Joinder Agreement to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VRT, VVIT, VAST, VATS, Virtus Fund Services and BNY Mellon, dated December 10, 2015, filed via EDGAR (as Exhibit h.4.i) with Post-Effective Amendment No. 35 to VRT's Registration Statement (File No. 033-80057) on January 8, 2016, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1004658/000157104916010608/ex99-h4i.htm) |
| j) | [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, Virtus Fund Services and BNY Mellon dated July 27, 2016, filed via EDGAR (as Exhibit h.4.j) with Post-Effective Amendment No. 31 to VAST's Registration Statement (File No. 333-191940) on April 10, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000157104917003313/t1701023_ex99-h4j.htm) |
| k) | [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, Virtus Fund Services and BNY Mellon dated April, 2017, filed via EDGAR (as Exhibit h.4.k) with Post-Effective Amendment No. 112 to VET's Registration Statement (File No. 002-16590) on July 26, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000157104917006960/t1702103_ex-h4k.htm) |
| l) | [Joinder Agreement and Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated September 21, 2017, filed via EDGAR (as Exhibit h.4.l) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-h4l.htm) |
| m) | [Form of Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated December 1, 2018, filed via EDGAR (as Exhibit 13(rr)) to Form N-14 (File No. 333-228766) on December 12, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420418064319/tv508990_ex99-13rr.htm) |
| n) | [Form of Amendment to Sub-Administration Agreement and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated March 8, 2019, filed via EDGAR (as Exhibit h.3.n) with Post-Effective Amendment No. 82 to VVIT's Registration Statement (File No. 033-05033) on April 22, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/792359/000114420419020594/tv519100_ex99-h3n.htm) |
| o) | [Amendment to Sub-Administration Agreement and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated May 22, 2019, filed via EDGAR (as Exhibit h.4.o) with Post-Effective Amendment No. 123 to VET's Registration Statement (File No. 002-16590) on June 12, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420419030712/tv523291_ex99-h4o.htm) |
| p) | [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated September 1, 2019, filed via EDGAR (as Exhibit h.4.p) with Post-Effective Amendment No. 105 to VOT's Registration Statement (File No. 033-65137) on September 30, 2019, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000114420419046538/tv530053_ex99-h4p.htm) |
| q) | [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, Virtus Fund Services and BNY Mellon dated November 18, 2019, filed via EDGAR (as Exhibit h.4.q) with Post-Effective Amendment No. 109 to VOT's Registration Statement (File No. 033-65137) on January 22, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465920005966/tv536301_ex99h4q.htm) |
| r) | [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Virtus Fund Services and BNY Mellon dated August 27, 2020, filed via EDGAR (as Exhibit h.4.r) with Post-Effective Amendment No. 133 to VET's Registration Statement (File No. 002-16590) on September 23, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920107672/tm2031285d3_ex99-h4r.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Virtus Fund Services and BNY Mellon dated November 16, 2020, filed via EDGAR (as Exhibit h.4.s) with Post-Effective Amendment No. 136 to VET's Registration Statement (File No. 002-16590) on December 7, 2020, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000110465920132902/tm2031285-6_exh4s.htm)

t) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Virtus Fund Services and BNY Mellon dated December 1, 2020, filed via EDGAR (as Exhibit h.4.t) with Post-Effective Amendment No. 116 to VOT's Registration Statement (File No. 033-65137) on January 25, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921007301/tm213358d1_ex-h4t.htm)

u) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Investment Trust, VST, Virtus Fund Services and BNY Mellon dated May 19, 2021, filed via EDGAR (as Exhibit h.4.u) with Post-Effective Amendment No. 121 to VOT's Registration Statement (File No. 033-65137) on September 24, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921119400/tm2127644d3_ex99-h4u.htm)

v) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Investment Trust, VST, Virtus Fund Services and BNY Mellon dated July 30, 2021, filed via EDGAR (as Exhibit h.4.v) with Post-Effective Amendment No. 121 to VOT's Registration Statement (File No. 033-65137) on September 24, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465921119400/tm2127644d3_ex99-h4v.htm)

w) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VVIT, VRT, VAST, VAT, VATS, Investment Trust, VST, TMF, TMFVL, VEOT, Virtus Fund Services and BNY Mellon dated February 12, 2022, filed via EDGAR (as Exhibit h.4.w) with Post-Effective Amendment No. 45 to VAST's Registration Statement (File No. 333-191940) on February 24, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1589756/000110465922026510/tm227176-1_h4w.htm)

x) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VAST, VVIT, VRT, VAT, VATS, Investment Trust, VST, TMF, TMFVL, VEOT, Virtus Fund Services and BNY Mellon dated as of April 8, 2022, filed via EDGAR (as Exhibit h.3.x) with Post-Effective No. 90 to VVIT's Registration Statement (File No. 033-05033) on April 21, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/792359/000110465922048228/tm2212606d1_exh3x.htm)

y) [Amendment to Sub-Administration and Accounting Services Agreement among Virtus Mutual Funds, VAST, VVIT, VRT, VAT, VATS, Investment Trust, VST, TMF, TMFVL, VEOT, Virtus Fund Services and BNY Mellon dated as of September 15, 2022, filed via EDGAR (as Exhibit h.3.y) with Post-Effective Amendment No. 219 to VIT's Registration Statement (File No. 033-36528) on October 26, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/867297/000093041322001802/c104698_ex99-h3y.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. \*First
 Amended and Restated Expense Limitation Agreement among Registrant, VIA and AllianzGI
 effective January 28, 2022, filed via EDGAR (as Exhibit h.6) herewith.

6. [Form of Indemnification Agreement with each Trustee of Registrant, effective as of February 1, 2021, filed via EDGAR (as Exhibit h.12) with Post-Effective Amendment No. 142 (File No. 333-148624) on January 29, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312521023122/d31339dex99h11.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Legal Opinion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Opinion and Consent of Counsel dated March 31, 2008, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 2 (File No. 333-148624) on March 28, 2008, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508069706/dex99i.htm)

2. [Opinion and Consent of Counsel dated July 15, 2008, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 2 (File No. 333-148624) on July 15, 2008, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508151359/dex99i.htm)

3. [Opinion and Consent of Counsel dated December 17, 2008, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 4 (File No. 333-148624) on December 17, 2008, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508255170/dex99i.htm)

4. [Opinion and Consent of Counsel dated April 20, 2009, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 8 (File No. 333-148624) on April 20, 2009, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312509082686/dex99i.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. [Opinion and Consent of Counsel dated May 27, 2009, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 9 (File No. 333-148624) on May 27, 2009, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312509119455/dex99i.htm)

6. [Opinion and Consent of Counsel dated June 4, 2010, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 14 (File No. 333-148624) on June 4, 2010, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312510133136/dex99i.htm)

7. [Opinion and Consent of Counsel dated March 31, 2011, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 20 (File No. 333-148624) on March 31, 2011, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012311031721/y89006bexv99wi.htm)

8. [Opinion and Consent of Counsel dated December 14, 2011, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 34 (File No. 333-148624) on December 14, 2011, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012311103059/y92860bexv99wi.htm)

9. [Opinion and Consent of Counsel dated May 24, 2012, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 40 (File No. 333-148624) on May 23, 2012, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012312008398/j94046exv99wi.htm)

10. [Opinion and Consent of Counsel dated October 3, 2012, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 44 (File No. 333-148624) on October 3, 2012, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012312012350/y94326bexv99wi.htm)

11. [Opinion and Consent of Counsel dated December 14, 2012, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 46 (File No. 333-148624) on December 14, 2012, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012312013780/b30204a1exv99wxiy.htm)

12. [Opinion and Consent of Counsel dated June 28, 2013, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 51 (File No. 333-148624) on June 28, 2013, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012313004363/y30341b1exv99wxiy.htm)

13. [Opinion and Consent of Counsel dated November 25, 2013, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 54 (File No. 333-148624) on November 27, 2013, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012313010029/y30403a2exv99wxiy.htm)

14. [Opinion and Consent of Counsel dated August 21, 2014, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 65 (File No. 333-148624) on August 22, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012314009343/y30626b1exv99wxiy.htm)

15. [Opinion and Consent of Counsel dated November 13, 2014, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 75 (File No. 333-148624) on November 14, 2014, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312514411430/d815431dex99i.htm)

16. [Opinion and Consent of Counsel dated January 23, 2015, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 77 (File No. 333-148624) on January 26, 2015, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312515019135/d854817dex99i.htm)

17. [Opinion and Consent of Counsel dated December 22, 2017, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 122 (File No. 333-148624) on December 22, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312517377633/d379249dex99i.htm)

18. [Opinion and Consent of Counsel dated March 6, 2018, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 128 (File No. 333-148624) on May 6, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312518072439/d523647dex99i.htm)

19. [Opinion and Consent of Counsel dated October 31, 2018, filed via EDGAR (as Exhibit i) with Post-Effective Amendment No. 134 (File No. 333-148624) on October 31, 2018, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312518313945/d625559dex99i.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. \*Consent
 of Dechert LLP filed via EDGAR (as Exhibit i.20) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Other Opinions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. \*Consent
 of Independent Registered Public Accounting Firm filed via EDGAR (as Exhibit j.1) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Rule 12b-1 Plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Distribution Plan for Administrative Class Shares effective December 17, 2008, filed via EDGAR (as Exhibit m.6) with Post-Effective Amendment No. 4 (File No. 333-148624) on December 17, 2008, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000119312508255170/dex99m6.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [Amended and Restated Distribution and Servicing Plan for Class C Shares effective September 12, 2012, filed via EDGAR (as Exhibit i.11) with Post-Effective Amendment No. 48 (File No. 333-148624) on December 14, 2012, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1423227/000095012312013780/b30204a1exv99wx1yx11y.htm)

3. \*Distribution
 and Servicing Plan for Class A Shares effective February 1, 2021, filed via EDGAR (as
 Exhibit m.3) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Rule 18f-3 Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Amended and Restated Plan Pursuant to Rule 18f-3 under the 1940 Act effective as of April 4, 2022, filed via EDGAR (as Exhibit n.1) with Post-Effective Amendment No. 127 to VOT's Registration Statement (File No. 033-65137) on April 5, 2022, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/1005020/000110465922042847/tm2134495d5_ex99-n1.htm)

(o) Reserved

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Codes of Ethics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Amended and Restated Code of Ethics of the Virtus Funds effective October 2017, filed via EDGAR (as Exhibit p.1) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-p1.htm)

2. [Amended and Restated Code of Ethics of VIA, VP Distributors and other Virtus Affiliates (including Duff & Phelps, NFJ and VFIA) dated October 1, 2017, filed via EDGAR (as Exhibit p.2) with Post-Effective Amendment No. 114 to VET's Registration Statement (File No. 002-16590) on December 21, 2017, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/34273/000114420417064693/tv480802_ex99-p2.htm)

3. \*Code
 of Ethics of Voya effective August 2022, filed via EDGAR (as Exhibit p.3) herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Powers of Attorney

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. [Power of Attorney for Trustees Donald C. Burke, Sarah E. Cogan, Deborah A. DeCotis, F. Ford Drummond, Sidney E. Harris, John R. Mallin, Connie D. McDaniel, Philip R. McLoughlin, Geraldine M. McNamara, James M. Oates (since retired), and R. Keith Walton, dated February 22, 2021, filed via EDGAR (as Exhibit q) with Post-Effective Amendment No. 215 (File No. 333-148624) on February 22, 2021, and incorporated herein by reference.](https://www.sec.gov/Archives/edgar/data/867297/000119312521050817/d15409dex99poa.htm)

**Item 29.** **Persons Controlled by or Under Common Control with the Fund** 

None.

**Item 30.** **Indemnification** 

The indemnification of Registrant's principal underwriter against certain losses is provided for in Section 18 of the Underwriting Agreement incorporated herein by reference to Exhibit e.1. Indemnification of Registrant's Custodian is provided for in Section 9.9, among others, of the Custody Agreement incorporated herein by reference to Exhibit g.1. The indemnification of Registrant's Transfer Agent is provided for in Article 6 of the Amended and Restated Transfer Agency and Service Agreement incorporated herein by reference to Exhibit h.1. The Trust has entered into Indemnification Agreements with each trustee, the form of which is incorporated herein by reference to Exhibit h.12 whereby the Registrant shall indemnify the trustee for expenses incurred in any proceeding in connection with the trustee's service to the Registrant subject to certain limited exceptions.

In addition, Article VIII Sections 1, 2 and 4 of the Registrant's Amended and Restated Agreement and Declaration of Trust incorporated herein by reference to Exhibit a.1, provides in relevant part as follows:

"The Trust shall indemnify each of its Trustees and officers (including persons who serve at the Trust's request as directors, officers or trustees of another organization in which the Trust has any interest as a shareholder, creditor or otherwise) (hereinafter referred to as a "Covered Person") against all liabilities and expenses, including but not limited to

amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by any Covered Person in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise or with which such person may be or may have been threatened, while in office or thereafter, by reason of being or having been such a Covered Person, except with respect to any matter as to which such Covered Person shall have been finally adjudicated in a decision on the merits in any such action, suit or other proceeding not to have acted in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Trust and except that no Covered Person shall be indemnified against any liability to the Trust or its Shareholders to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office. Expenses, including counsel fees so incurred by any such Covered Person (but excluding amounts paid in satisfaction of judgments, in compromise or as fines or penalties), may be paid from time to time by the Trust in advance of the final disposition of any such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Covered Person to repay amounts so paid to the Trust if it is ultimately determined that indemnification of such expenses is not authorized under this Article VIII, provided, that (a) such Covered Person shall provide security for his or her undertaking, (b) the Trust shall be insured against losses arising by reason of such Covered Person's failure to fulfill his or her undertaking, or (c) a majority of the Trustees who are disinterested persons and who are not Interested Persons of the Trust (provided that a majority of such Trustees then in office act on the matter), or independent legal counsel in a written opinion shall determine, based on a review of readily available facts (but not a full trial-type inquiry), that there is reason to believe such Covered Person ultimately will be entitled to indemnification.

As to any matter disposed of (whether by a compromise payment, pursuant to a consent decree or otherwise) without an adjudication in a decision on the merits by a court, or by any other body before which the proceeding was brought, that such Covered Person either (a) did not act in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Trust or (b) is liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office, indemnification shall be provided if (x) approved as in the best interest of the Trust, after notice that it involves such indemnification, by at least a majority of the Trustees who are disinterested persons and are not Interested Persons of the Trust (provided that a majority of such Trustees then in office act on the matter), upon a determination, based upon a review of readily available facts (but not a full trial-type inquiry) that such Covered Person acted in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Trust and is not liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office, or (y) there has been obtained an opinion in writing of independent legal counsel, based upon a review of readily available facts (but not a full trial-type inquiry), to the effect that such Covered Person appears to have acted in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Trust and that such indemnification would not protect such Covered Person against any liability to the Trust or its Shareholders to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office. Any approval pursuant to this Section 2 shall not prevent the recovery from any Covered Person of any amount paid to such Covered Person in accordance with this Section 2 as indemnification if such Covered Person is subsequently adjudicated by a court of competent jurisdiction not to have acted in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Trust or to have been liable to the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office.

The right of indemnification hereby provided shall not be exclusive of or affect any other rights to which any such Covered Person may be entitled. As used in this Article VIII, the term "Covered Person" shall include such person's heirs, executors and administrators, and a "disinterested person" is a person against whom none of the actions, suits or other proceedings in question or another action, suit or other proceeding on the same or similar grounds is then or has been pending. Nothing contained in this Article VIII shall affect any rights to indemnification to which personnel of the Trust, other than Trustees and officers, and other persons may be entitled by contract or otherwise under law, nor the power of the Trust to purchase and maintain liability insurance on behalf of such person; provided, however, that the Trust shall not purchase or maintain any such liability insurance in contravention of the 1940 Act or other applicable law."

In addition, Article VIII Section 5 of such Agreement and Declaration of Trust provides for the indemnification of shareholders of the Registrant as follows: "In case any Shareholder or former Shareholder shall be held to be personally liable solely by reason of his or her being or having been a Shareholder of the Trust and not because of his or her acts or

omissions or for some other reason, the Shareholder or former Shareholder (or his or her heirs, executors, administrators or other legal representatives or, in the case of a corporation or other entity, its corporate or other general successor) shall be entitled out of the assets of the series of Shares (or attributable to the class of Shares) of which he or she is a Shareholder or former Shareholder to be held harmless from and indemnified against all loss and expense arising from such liability."

In addition, Article IX Section 1 of such Agreement and Declaration of Trust provides as follows:

"All persons extending credit to, contracting with or having any claim against the Trust or a particular series or class of Shares shall look only to the assets of the Trust or the assets of that particular series or class of Shares for payment under such credit, contract or claim; and neither the Shareholders nor the Trustees, nor any of the Trust's officers, employees or agents, whether past, present or future, shall be personally liable therefor. Nothing in this Declaration shall protect any Trustee against any liability to which such Trustee would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of the office of Trustee.

Every note, bond, contract, instrument, certificate or undertaking made or issued by the Trustees or by any officer or officers shall give notice that this Declaration is on file with the Secretary of The Commonwealth of Massachusetts and shall recite that the same was executed or made by or on behalf of the Trust or by them as Trustee or Trustees or as officer or officers and not individually and that the obligations of such instrument are not binding upon any of them or the Shareholders individually but are binding only upon the assets and property of the Trust, and may contain such further recital as he or she or they may deem appropriate, but the omission thereof shall not operate to bind any Trustee or Trustees or officer or officers or Shareholder or Shareholders individually.'

In addition, Article IX Section 2 of such Agreement and Declaration of Trust provides for the indemnification of Trustees and Officers of the Registrant as follows:

"The exercise by the Trustees of their powers and discretions hereunder shall be binding upon everyone interested. A Trustee or officer shall be liable for his or her own willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of the office of Trustee or officer, and for nothing else, and shall not be liable for errors of judgment or mistakes of fact or law. The Trustees or officers may take advice of counsel or other experts with respect to the meaning and operation of this Declaration, and shall be under no liability for any act or omission in accordance with such advice or for failing to follow such advice. The Trustees and officers shall not be required to give any bond as such, nor any surety if a bond is required."

The Investment Advisory Agreement, Subadvisory Agreements, Custody Agreement, Foreign Custody Manager Agreement, Sub-Administration and Accounting Services Agreement and Sub-Transfer Agency and Shareholder Services Agreement, each as amended, respectively provide that the Registrant will indemnify the other party (or parties, as the case may be) to the agreement for certain losses. Similar indemnities to those listed above may appear in other agreements to which the Registrant is a party.

The Registrant, in conjunction with VIA, the Registrant's Trustees, and other registered investment management companies managed by VIA or its affiliates, maintains insurance on behalf of any person who is or was a Trustee, officer, employee, or agent of the Registrant, or who is or was serving at the request of the Registrant as a trustee, director, officer, employee or agent of another trust or corporation, against any liability asserted against such person and incurred by him or arising out of his position. However, in no event will Registrant maintain insurance to indemnify any such person for any act for which the Registrant itself is not permitted to indemnify him.

Insofar as indemnification for liability arising under the Securities Act of 1933, as amended (the "Act"), may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

**Item 31.** **Business and Other Connections of Investment Adviser and Subadvisers** 

See "Management of the Funds" in the Prospectus and "Investment Advisory and Other Services" and "Management of the Trust" in the Statement of Additional Information which is included in this Post-Effective Amendment. For information as to the business, profession, vocation or employment of a substantial nature of directors and officers of the Adviser and Subadvisers, reference is made to the Adviser's and each Subadviser's current Form ADV filed under the Investment Advisers Act of 1940, and incorporated herein by reference.

---

| | |
|:---|:---|
| **Adviser** | **SEC File No.:** |
| &nbsp;&nbsp;VIA | &nbsp;&nbsp;801-5995 |
| &nbsp;&nbsp;NFJ | &nbsp;&nbsp;801-119686 |
| &nbsp;&nbsp;VFIA | &nbsp;&nbsp;801-68743 |
| &nbsp;&nbsp;Voya | &nbsp;&nbsp;801-9046 |

---

**Item 32.** **Principal Underwriter** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) VP Distributors, LLC serves as the principal underwriter
for the following registrants: The Merger Fund<sup>®</sup>, The Merger Fund<sup>®</sup> VL, Virtus Alternative Solutions
Trust, Virtus Asset Trust, Virtus Equity Trust, Virtus Event Opportunities Trust, Virtus Investment Trust, Virtus Opportunities
Trust, Virtus Retirement Trust, Virtus Strategy Trust and Virtus Variable Insurance Trust.

(b) Directors and executive officers of VP Distributors,
One Financial Plaza, Hartford, CT 06103 are as follows:

---

| | | |
|:---|:---|:---|
| **Name and Principal** <br> **Business Address** | **Positions and Offices with Distributor** | **Positions and Offices**<br> **with Registrant** |
| Michael A. Angerthal | Senior Vice President | None |
| George R. Aylward | Executive Vice President | President and Trustee |
| Timothy Branigan | None | Vice President and Fund Chief Compliance Officer |
| Jennifer Fromm | Securities Counsel and Assistant Secretary | Vice President, Chief Legal Officer, Counsel and Secretary |
| David Hanley | Senior Vice President and Treasurer | None |
| Wendy J. Hills | Senior Vice President, General Counsel and Secretary | None |
| Barry Mandinach | President | None |
| David C. Martin | Vice President and Chief Compliance Officer | Anti-Money Laundering Officer |
| Richard W. Smirl | Executive Vice President | Executive Vice President |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) To the best of the Registrant's knowledge, no commissions or other compensation was received by any principal underwriter who is not an affiliated person of the Registrant or an affiliated person of such affiliated person, directly or indirectly, from the Registrant during the Registrant's last fiscal year.

**Item 33.** **Location of Accounts and Records** 

Persons maintaining physical possession of accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act and the Rules promulgated thereunder include:

---

| | |
|:---|:---|
| **Secretary of the Trust:** | **Principal Underwriter:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jennifer Fromm, Esq.<br> One Financial Plaza<br> Hartford, CT 06103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VP Distributors, LLC<br> One Financial Plaza<br> Hartford, CT 06103 |
| **Investment Adviser:** | **Custodian:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Virtus Investment Advisers, Inc.<br> One Financial Plaza<br> Hartford, CT 06103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon <br> 240 Greenwich Street <br> New York, NY 10286 |
| **Fund Accountant, Sub-Administrator, Sub-Transfer** <br> **Agent and Dividend Dispersing Agent:** | **Administrator and Transfer Agent:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of New York Mellon<br> BNY Mellon Investment Servicing (US) Inc.<br> 301 Bellevue Parkway <br> Wilmington, DE 19809 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Virtus Fund Services, LLC<br> One Financial Plaza<br> Hartford, CT 06103 |
| **Subadviser to: Virtus Duff & Phelps Water Fund** | **Subadviser to: Virtus Newfleet Short Duration High Income Fund** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duff & Phelps Investment Management Co. <br> 200 South Wacker Drive, Suite 500 <br> Chicago, IL 60606 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newfleet Asset Management, a division of Virtus Fixed <br> Income Advisers, LLC<br> One Financial Plaza <br> Hartford, CT 06103 |
| **Subadviser to: Virtus Convertible Fund,** | **Subadviser to: Virtus NFJ Emerging Markets Value Fund and Virtus NFJ Global Sustainability Fund** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NFJ Investment Group, LLC<br> 2100 Ross Avenue, Suite 700<br> Dallas, TX 75101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voya Investment Management Co., LLC<br> 230 Park Avenue<br> New York, NY 10169 |  |
| **Subadviser to: Virtus Seix High Yield Income Fund** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seix Investment Advisors, a division of Virtus Fixed<br> Income Advisers, LLC<br> One Maynard Drive, Suite 3200<br> Park Ridge, New Jersey 07656 |  |

---

**Item 34.** **Management Services** 

Not applicable.

**Item 35.** **Undertakings** 

Not applicable.

PART C — OTHER INFORMATION

**Exhibit List**

---

| | |
|:---|:---|
| &nbsp;&nbsp;b.3 | &nbsp;&nbsp;[Amendment No. 2 to the Second Amended and Restated By-Laws of the Registrant](c105280_ex-b3.htm) |
| &nbsp;&nbsp;d.2 | &nbsp;&nbsp;[Subadvisory Agreement](c105280_ex-d2.htm) |
| &nbsp;&nbsp;d.4 | &nbsp;&nbsp;[Subadvisory Agreement](c105280_ex-d4.htm) |
| &nbsp;&nbsp;d.5 | &nbsp;&nbsp;[Subadvisory Agreement](c105280_ex-d5.htm) |
| &nbsp;&nbsp;d.6 | &nbsp;&nbsp;[Subadvisory Agreement](c105280_ex-d6.htm) |
| &nbsp;&nbsp;d.7 | &nbsp;&nbsp;[Subadvisory Agreement](c105280_ex-d7.htm) |
| &nbsp;&nbsp;i.20 | &nbsp;&nbsp;[Consent of Dechert LLP](c105280_ex99-i20.htm) |
| &nbsp;&nbsp;j.1 | &nbsp;&nbsp;[Consent of Independent Registered Public Accounting Firm](c105280_ex99-j1.htm) |
| &nbsp;&nbsp;m.3 | &nbsp;&nbsp;[Distribution and Servicing Plan for Class A Shares](c105280_ex-m3.htm) |
| &nbsp;&nbsp;p.3 | &nbsp;&nbsp;[Code of Ethics](c105280_ex-p3.htm) |

---

<u>SIGNATURES</u>

Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness for this registration statement under Rule 485(b) of the Securities Act and has duly caused this amendment to the registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Hartford and the State of Connecticut on the 26<sup>th</sup> day of January, 2023.

VIRTUS STRATEGY TRUST

---

| | |
|:---|:---|
| By: | <u>/s/ GEORGE R. AYLWARD</u> |
| Name: | George R. Aylward |
| Title: | President and Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this amendment to the registration statement has been signed below by the following persons in the capacities indicated on the 26<sup>th</sup> day of January, 2023.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| <br> /s/ George R. Aylward | Trustee, President and Chief Executive Officer |
| **George R. Aylward**<br>/s/ W. Patrick Bradley | Chief Financial Officer and Treasurer |
| **W. Patrick Bradley**<br>\* | Trustee |
| **Donald C. Burke**<br>\* | Trustee |
| **Sarah E. Cogan**<br>\* | Trustee |
| **Deborah A. DeCotis**<br>\* | Trustee |
| **F. Ford Drummond** <br> \* | <br> Trustee |
| **Sydney E. Harris**<br>\* | Trustee |
| **John R. Mallin**<br>\* | Trustee |
| **Connie D. McDaniel**<br>\* | Trustee |
| **Philip McLoughlin** |  |

---

---

| | |
|:---|:---|
| \* | Trustee |
| **Geraldine M. McNamara**<br>\* | Trustee |
| **R. Keith Walton**<br>| Trustee |
| **Brian T. Zino** |  |

---

---

| |
|:---|
| \*By:<br>/s/ George R. Aylward  |
| George R. Aylward, Attorney-In-Fact, pursuant to a power of attorney |

---

## Ex-99.(B)(3)

**Exhibit b.3**

AMENDMENT NO. 2

to

SECOND AMENDED & RESTATED

BY-LAWS

of

VIRTUS STRATEGY TRUST

A Massachusetts Business Trust

The following amendments to the Second Amended and Restated By-Laws (the "By-Laws") of Virtus Strategy Trust (the "Trust") was duly adopted by resolution of a majority of the Trustees of the Trust at a meeting of the Trustees held on November 16, 2022.

1. All references to the Chairman shall hereafter refer to the Chair.

2. Section 11.3 (Quorum and Required Vote) of Article 11 (Shareholders' Voting Powers and Meetings) of the By-Laws is hereby amended to read in its entirety as follows:

Except when a larger quorum is required by any provision of law, or the Declaration of Trust or these Bylaws, 30% of the Shares entitled to vote shall constitute a quorum for the transaction of business at a Shareholders' meeting, except that where any provision of law or the Declaration of Trust or these Bylaws permits or requires that holders of any series or class of Shares shall vote as a series or class, then 30% (unless a larger quorum is required as specified above) of Shares of that series or class entitled to vote shall be necessary to constitute a quorum for the transaction of business by that series or class, as the case may be. Any lesser number shall be sufficient for adjournments, which may be at the discretion of the chairman. Any adjourned meeting or meetings may be held, within a reasonable time after the date set for the original meeting, without further notice. Except when a larger vote is required by any provision of law or the Declaration of Trust or these Bylaws, a plurality of the quorum of Shares necessary for the transaction of business at a Shareholders' meeting shall decide any question and a plurality of Shares voted shall elect a Trustee, provided that where any provision of law or of the Declaration of Trust or these Bylaws permits or requires that the holders of any series or class of Shares shall vote as a series or class, then a plurality of the quorum of Shares of that series or class necessary for the transaction of business by that series or class at a Shareholders' meeting shall decide that matter insofar as that series or class is concerned.

Approved: November 16, 2022

## Ex-99.(D)(2)

**Exhibit d.2**

**VIRTUS STATEGY TRUST**

**Virtus Duff & Phelps Water Fund**

**<u>SUBADVISORY AGREEMENT</u>**

July 25, 2022

Duff & Phelps Investment Management Co.

200 South Wacker Drive, Suite 500

Chicago, IL 60606

---

| | |
|:---|:---|
| **RE:** | **Subadvisory Agreement** |

---

Ladies and Gentlemen:

Virtus Strategy Trust (the "Trust") is an open-end investment company of the series type registered under the Investment Company Act of 1940, as amended (the "Act"), and is subject to the rules and regulations promulgated thereunder. The shares of the Trust are offered or may be offered in several series (sometimes hereafter referred to as the "Series"), including Virtus Duff & Phelps Water Fund.

Virtus Investment Advisers, Inc. (the "Adviser") evaluates and recommends series advisers for the Series and is responsible for the day-to-day management of the Series.

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment as a Subadviser</u>. The Adviser, being duly authorized, hereby appoints Duff &
Phelps Investment Management Co. (the "Subadviser") as a discretionary series adviser to invest and reinvest the assets
of the Series designated by the Adviser as set forth on Schedule F attached hereto (the "Designated Series") on the
terms and conditions set forth herein. The services of the Subadviser hereunder are not to be deemed exclusive; the Subadviser
may render services to others and engage in other activities that do not conflict in any material manner with the Subadviser's
performance hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Acceptance of Appointment; Standard of Performance</u>. The Subadviser accepts its appointment
as a discretionary series adviser of the Designated Series and agrees, subject to the oversight of the Board of Trustees of the
Trust (the "Board") and the Adviser, to use its best professional judgment to make investment decisions for the Designated
Series in accordance with the provisions of this Agreement and as set forth in Schedule D attached hereto and made a part hereof.
The Subadviser shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided
or authorized (whether herein or otherwise), have no authority or obligation to act for or represent the Adviser, the Trust or
the Series in any way.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services of Subadviser</u>. In providing management services to the Designated Series, the Subadviser
shall be subject to the investment objectives, policies and restrictions of the Trust as they apply to the Designated Series and
as set forth in the Trust's then current prospectus ("Prospectus") and statement of additional information ("Statement
of Additional Information") filed with the Securities and Exchange Commission (the "SEC") as part of the Trust's
registration statement (the "Registration Statement"), as may be periodically amended and provided to the Subadviser
by the Adviser, and to the investment restrictions set forth in the Act and the Rules thereunder, to the supervision and control
of the Board, and to instructions from the Adviser. The Subadviser shall not, without the Trust's prior written approval,
effect any transactions that would cause the Designated Series at the time of the transaction to be out of compliance with any
of such restrictions or policies.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transaction Procedures</u>. All series transactions for the Designated Series shall be consummated
by payment to, or delivery by, the custodian(s) from time to time designated by the Trust (the "Custodian"), or such
depositories or agents as may be designated by the Custodian in writing, of all cash and/or securities due to or from the Designated
Series. The Subadviser shall not have possession or custody of such cash and/or

---

| | |
|:---|:---|
|  | securities or any responsibility or liability with respect to such custody. The Subadviser shall advise the Custodian and confirm in writing to the Trust all investment orders for the Designated Series placed by it with brokers and dealers at the time and in the manner set forth in Schedule A hereto (as amended from time to time). The Trust shall issue to the Custodian such instructions as may be appropriate in connection with the settlement of any transaction initiated by the Subadviser. The Trust shall be responsible for all custodial arrangements and the payment of all custodial charges and fees, and, upon giving proper instructions to the Custodian, the Subadviser shall have no responsibility or liability with respect to custodial arrangements or the acts, omissions or other conduct of the Custodian. |
| 5. | <u>Allocation of Brokerage</u>. The Subadviser shall have authority and discretion to select brokers and dealers to execute Designated Series transactions initiated by the Subadviser, and to select the markets on or in which the transactions will be executed. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In placing orders for the sale and purchase of Designated Series securities for the Trust, the
Subadviser's primary responsibility shall be to seek the best execution of orders at the most favorable prices. However,
this responsibility shall not obligate the Subadviser to solicit competitive bids for each transaction or to seek the lowest available
commission cost to the Trust, as long as the Subadviser reasonably believes that the broker or dealer selected by it can be expected
to obtain a "best execution" market price on the particular transaction and determines in good faith that the commission
cost is reasonable in relation to the value of the brokerage and research services (as defined in Section 28(e)(3) of the Securities
Exchange Act of 1934, as amended) provided by such broker or dealer to the Subadviser, viewed in terms of either that particular
transaction or of the Subadviser's overall responsibilities with respect to its clients, including the Trust, as to which
the Subadviser exercises investment discretion, notwithstanding that the Trust may not be the direct or exclusive beneficiary of
any such services or that another broker may be willing to charge the Trust a lower commission on the particular transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser may manage other portfolios and expects that the Trust and other portfolios the
Subadviser manages will, from time to time, purchase or sell the same securities. The Subadviser may aggregate orders for the purchase
or sale of securities on behalf of the Designated Series with orders on behalf of other portfolios the Subadviser manages. Securities
purchased or proceeds of securities sold through aggregated orders, as well as expenses incurred in the transaction, shall be allocated
to the account of each portfolio managed by the Subadviser that bought or sold such securities in a manner considered by the Subadviser
to be equitable and consistent with the Subadviser's fiduciary obligations in respect of the Designated Series and to such
other accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall not execute any transactions for the Designated Series with a broker or dealer
that is an "affiliated person" (as defined in the Act) of (i) the Designated Series; (ii) another Series; (iii) the
Adviser; (iv) the Subadviser or any other subadviser to the Designated Series; (v) a principal underwriter of the Trust's
shares; or (vi) any other affiliated person of the Designated Series, in each case, unless such transactions are permitted by applicable
law or regulation and carried out in compliance with any applicable policies and procedures of the Trust. The Trust shall provide
the Subadviser with a list of brokers and dealers that are "affiliated persons" of the Trust, the Adviser or the principal
underwriter, and applicable policies and procedures. Upon the request of the Adviser, the Subadviser shall promptly, and in any
event within three business days of a request, indicate whether any entity identified by the Adviser in such request is an "affiliated
person," as such term is defined in the Act, of (i) the Subadviser or (ii) any affiliated person of the Subadviser, subject
in each case to any confidentiality requirements applicable to the Subadviser and/or its affiliates. Further, the Subadviser shall
provide the Adviser with a list of (x) each broker-dealer entity that is an "affiliated person," as such term is defined
in the Act, of the Subadviser and (y) each affiliated person of the Subadviser that has outstanding publicly-issued debt or equity.
Each of the Adviser and the Subadviser agrees promptly to update such list(s) whenever the Adviser or the Subadviser becomes aware
of any changes that should be added to or deleted from such list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Consistent with its fiduciary obligations to the Trust in respect of the Designated Series and
the requirements of best price and execution, the Subadviser may, under certain circumstances, arrange to

have purchase and sale transactions effected directly between the Designated Series and another account managed by the Subadviser ("cross transactions"), provided that such transactions are carried out in accordance with applicable law or regulation and any applicable policies and procedures of the Trust. The Trust shall provide the Subadviser with applicable policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Proxies and Other Shareholder Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Unless the Adviser or the Trust gives the Subadviser written instructions to the contrary, the
Subadviser, or a third party designee acting under the authority and supervision of the Subadviser, shall review all proxy solicitation
materials and be responsible for voting and handling all proxies in relation to the assets of the Designated Series. Unless the
Adviser or the Trust gives the Subadviser written instructions to the contrary, provided that the Adviser has reviewed the Subadviser's
proxy voting procedures then in effect and determined them to comply with the requirements of the Trust's proxy voting policy,
the Subadviser will, in compliance with the Subadviser's proxy voting procedures then in effect, vote or abstain from voting,
all proxies solicited by or with respect to the issuers of securities in which assets of the Designated Series may be invested.
The Adviser shall cause the Custodian, the Administrator or another party, to forward promptly to the Subadviser all proxies upon
receipt, so as to afford the Subadviser a reasonable amount of time in which to determine how to vote such proxies. The Subadviser
agrees to provide the Adviser in a timely manner with any changes to the Subadviser's proxy voting procedures. The Subadviser
further agrees to provide the Adviser in a timely manner with a record of votes cast containing all of the voting information required
by Form N-PX in an electronic format to enable the Trust to file Form N-PX as required by Rule 30b1-4 under the Act. The Subadviser
shall provide disclosure regarding its proxy voting policies and procedures in accordance with the requirements of Form N-1A for
inclusion in the Registration Statement of the Trust. During any annual period in which the Subadviser has voted proxies for the
Trust, the Subadviser shall, as may reasonably be requested by the Adviser, certify as to its compliance with its proxy voting
policies and procedures and applicable federal statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser is authorized to deal with reorganizations, exchange
offers and other voluntary corporate actions with respect to securities held in the Designated Series in such manner as the Subadviser
deems advisable, unless the Trust or the Adviser otherwise specifically directs in writing. It is acknowledged and agreed that
the Subadviser shall not be responsible for the filing of claims (or otherwise causing the Trust to participate) in class action
settlements or similar proceedings in which shareholders may participate related to securities currently or previously associated
with the Designated Series. With the Adviser's
approval, on a case-by-case basis the Subadviser may obtain the authority and take on the responsibility to: (i) identify, evaluate
and pursue legal claims, including commencing or defending suits, affecting the securities held at any time in the Designated Series,
including claims in bankruptcy, class action securities litigation and other litigation; (ii) participate in such litigation or
related proceedings with respect to such securities as the Subadviser deems appropriate to preserve or enhance the value of the
Designated Series, including filing proofs of claim and related documents and serving as "lead plaintiff" in class
action lawsuits; (iii) exercise generally any of the powers of an owner with respect to the supervision and management of such
rights or claims, including the settlement, compromise or submission to arbitration of any claims, the exercise of which the Subadviser
deems to be in the best interest of the Designated Series or required by applicable law, including ERISA, and (iv) employ suitable
agents, including legal counsel, and to pay their reasonable fees, expenses and related costs from the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Prohibited Conduct</u>. In accordance with Rule 12d3-1 and Rule 17a-10 under the 1940 Act and
any other applicable law or regulation, the Subadviser's responsibility regarding investment advice hereunder is limited
to the Designated Series, and the Subadviser will not consult with any other investment advisory firm that provides investment
advisory services to the Trust or any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates
regarding transactions in securities or other assets for the Trust. The Trust shall provide the Subadviser with a list of investment
companies sponsored by Virtus Investment Partners, Inc. and its affiliates, and the Subadviser shall be in breach of the foregoing
provision only if the investment company is included in such a list provided to the Subadviser prior to such prohibited action.
The Subadviser, and its affiliates and agents, shall refrain from making any written or oral statements concerning

the Designated Series, the Trust, any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates, and any substantially similar products, that are reasonably likely to mislead investors regarding either (i) the services rendered by the Subadviser to the Designated Series or the Trust, or (ii) the Designated Series, including without limitation with respect to the investment strategies and/or risks, and/or the performance thereof. In addition, the Subadviser shall not, without the prior written consent of the Trust and the Adviser, delegate any obligation assumed pursuant to this Agreement to any affiliated or unaffiliated third party. The parties acknowledge and agree that the Subadviser may, in its discretion, utilize personnel employed by affiliates of the Subadviser to perform services pursuant to this Agreement by way of a "participating affiliate" agreement in accordance with, and to the extent permitted by, the Act and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including the published interpretations thereof by the SEC or its staff. Such participating affiliate agreement shall subject the personnel providing such services to the Subadviser's compliance and other programs with respect to their activities on behalf of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Subadviser assumes full responsibility for all actions, and any failure to act, by each person utilized by the Subadviser to perform services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Information and Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall keep the Trust and the Adviser informed of developments relating to its duties
as Subadviser of which the Subadviser has, or should have, knowledge that would materially affect the Designated Series. In this
regard, the Subadviser shall provide the Trust, the Adviser and their respective officers with such periodic reports concerning
the obligations the Subadviser has assumed under this Agreement as the Trust and the Adviser may from time to time reasonably request.
In addition, prior to each meeting of the Board, the Subadviser shall provide the Adviser and the Board with reports regarding
the Subadviser's management of the Designated Series during the most recently completed quarter, which reports: (i) shall
include Subadviser's representation that its performance of its investment management duties hereunder is in compliance with
the Designated Series' investment objectives and practices, the Act and applicable rules and regulations under the Act, and
the diversification and minimum "good income" requirements of Subchapter M under the Internal Revenue Code of 1986,
as amended, and (ii) otherwise shall be in such form as may be reasonably required by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of the Adviser and the Subadviser shall provide the other party with a list, to the best of
the Adviser's or the Subadviser's respective knowledge, of each affiliated person (and any affiliated person of such
an affiliated person) of the Adviser or the Subadviser, as the case may be, and each of the Adviser and Subadviser agrees promptly
to update such list whenever the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted from
the list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall also provide the Adviser with any information reasonably requested by the
Adviser regarding its management of the Designated Series required for any shareholder report, amended Registration Statement,
or Prospectus supplement to be filed by the Trust with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Subadviser shall promptly notify the Adviser and the Trust in the event that any of the Subadviser's
employees or contractors raise any issues concerning any actual or potential material violation of any law, regulation or internal
policy of the Subadviser, in each case actually or potentially affecting the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Fees for Services</u>. The compensation of the Subadviser for its services under this Agreement
shall be calculated and paid by the Adviser in accordance with the attached Schedule C. Pursuant to the Investment Advisory Agreement
between the Trust and the Adviser, the Adviser is solely responsible for the payment of fees to the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. Absent the
Subadviser's breach of this Agreement or the willful misconduct, bad faith, gross negligence, or reckless disregard of the
obligations or duties hereunder on the part of the Subadviser, or its officers, directors, partners, agents, employees and controlling
persons, the Subadviser shall not be liable for any act or omission in the course of, or connected with, rendering services hereunder
or for any

losses that may be sustained in the purchase, holding or sale of any position; *provided, however,* that the Subadviser shall be responsible for, and shall indemnify and hold the Trust and the Adviser and each of their respective directors or trustees, members, officers, employees and shareholders, and each person, if any, who controls the Trust or the Adviser within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act"), harmless against, any and all Losses (as defined below) arising out of or resulting from a "Trade Error" (as defined in the compliance policies and procedures of the Trust), as the same may be amended from time to time) caused by the negligent action or negligent omission of the Subadviser or its agent. The Adviser agrees to provide prior written notice to the Subadviser of any material changes to the definition of Trade Error becoming effective with respect to the Designated Series unless, in the reasonable discretion of the Adviser, such change must become effective earlier due to any applicable law, rule, regulation or court order. It is acknowledged and agreed that any Trade Error that results in a gain to the Designated Series shall inure to the benefit of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Designated Series is a third party beneficiary of the indemnity granted in this Section 10, and the indemnity is intended to cover claims by the Designated Series, the Trust (on behalf of the Designated Series), or the Adviser against the Subadviser for recovery pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Confidentiality</u>. Subject to the duty of the Subadviser and the Trust to comply with applicable
law, including any demand of any regulatory or taxing authority having jurisdiction, the parties hereto shall treat as confidential
all information pertaining to the Designated Series and the actions of the Subadviser and the Trust in respect thereof. Notwithstanding
the foregoing, the Trust and the Adviser agree that the Subadviser may (i) disclose in marketing materials and similar communications
that the Subadviser has been engaged to manage assets of the Designated Series pursuant to this Agreement, and (ii) include performance
statistics regarding the Designated Series in composite performance statistics regarding one or more groups of Subadviser's clients
published or included in any of the foregoing communications, provided that the Subadviser does not identify any performance statistics
as relating specifically to the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>. This Agreement shall terminate automatically in the event of its assignment,
as that term is defined in Section 2(a)(4) of the Act. The Subadviser shall notify the Trust and the Adviser in writing sufficiently
in advance of any proposed change of control, as defined in Section 2(a)(9) of the Act, as will enable the Trust to consider whether
an assignment as defined in Section 2(a)(4) of the Act will occur, and to take the steps necessary to enter into a new contract
with the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Representations, Warranties and Agreements of the Subadviser</u>. The Subadviser represents,
warrants and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It is duly organized, validly existing, and in good standing under the laws of the jurisdiction
of its organization, and is qualified to do business in each jurisdiction in which failure to be so qualified would reasonably
be expected to have a material adverse effect upon it. It (i) is registered as an "investment adviser" under the Investment
Advisers Act of 1940, as amended ("Advisers Act") and will continue to be so registered for so long as this Agreement
remains in effect; (ii) is not prohibited by the Act or the Advisers Act from performing the services contemplated by this Agreement;
provided, however, that the Subadviser makes no representation or warranty with regard to the approval of this Agreement by the
Board under Section 15 of the Act; (iii) has appointed a Chief Compliance Officer under Rule 206(4)-7 under the Advisers Act; (iv)
has adopted written policies and procedures that are reasonably designed to prevent violations of the Advisers Act from occurring,
and correct promptly any violations that have occurred, and will provide notice promptly to the Adviser of any material violations
relating to the Trust; (v) has materially met and will seek to continue to meet for so long as this Agreement remains in effect,
any other applicable federal or state requirements, or the applicable requirements of any regulatory or industry self-regulatory
agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. It is either registered as a commodity trading advisor or duly exempt from such registration with
the U.S. Commodity Futures Trading Commission ("CFTC"), and it will maintain such registration or exemption continuously
during the term of this Agreement or, alternatively, will become a commodity

trading advisor duly registered with the CFTC and will be a member in good standing with the National Futures Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It will maintain, keep current and preserve on behalf of the Trust, records in the manner required
or permitted by the Act and the Rules thereunder including the records identified in Schedule B (as Schedule B may be amended from
time to time). The Subadviser agrees that such records are the property of the Trust, and shall be surrendered to the Trust or
to the Adviser as agent of the Trust promptly upon request of either. The Trust acknowledges that the Subadviser may retain copies
of all records required to meet the record retention requirements imposed by law and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It shall maintain a written code of ethics (the "Code of Ethics") complying with the
requirements of Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Act and shall provide the Trust and the Adviser with
a copy of the Code of Ethics and evidence of its adoption. It shall institute procedures reasonably necessary to prevent Access
Persons (as defined in Rule 17j-1) from violating its Code of Ethics. The Subadviser acknowledges receipt of the written code of
ethics adopted by and on behalf of the Trust. Each calendar quarter while this Agreement is in effect, a duly authorized compliance
officer of the Subadviser shall certify to the Trust and to the Adviser that the Subadviser has complied with the requirements
of Rules 204A-1 and 17j-1 during the previous calendar quarter and that there has been no material violation of its Code of Ethics,
or of Rule 17j-1(b), or that any persons covered under its Code of Ethics has divulged or acted upon any material, non-public information,
as such term is defined under relevant securities laws, and if such a violation of the code of ethics of the Trust has occurred,
or if such a violation of its Code of Ethics has occurred, that appropriate action was taken in response to such violation. The
Subadviser shall notify the Adviser promptly of any material violation of the Code of Ethics involving the Trust. The Subadviser
will provide such additional information regarding violations of the Code of Ethics directly affecting the Trust as the Trust or
its Chief Compliance Officer on behalf of the Trust or the Adviser may reasonably request in order to assess the functioning of
the Code of Ethics or any harm caused to the Trust from a violation of the Code of Ethics. Further, the Subadviser represents that
it has policies and procedures regarding the detection and prevention of the misuse of material, nonpublic information by the Subadviser
and its employees. The Subadviser will explain what it has done to seek to ensure such compliance in the future. Annually, the
Subadviser shall furnish to the Trust and the Adviser a written report which complies with the requirements of Rule 17j-1 concerning
the Subadviser's Code of Ethics. The Subadviser shall permit the Trust and the Adviser to examine the reports required to
be made by the Subadviser under Rules 204A-1(b) and 17j-1(d)(1) and this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It has adopted and implemented, and throughout the term of this Agreement shall maintain in effect
and implement, policies and procedures reasonably designed to prevent, detect and correct violations by the Subadviser and its
supervised persons, and, to the extent the activities of the Subadviser in respect of the Trust could affect the Trust, by the
Trust, of "federal securities laws" (as defined in Rule 38a-1 under the Act), and that the Subadviser has provided
the Trust with true and complete copies of its policies and procedures (or summaries thereof) and related information reasonably
requested by the Trust and/or the Adviser. The Subadviser agrees to cooperate with periodic reviews by the Trust's and/or
the Adviser's compliance personnel of the Subadviser's policies and procedures, their operation and implementation
and other compliance matters and to provide to the Trust and/or the Adviser from time to time such additional information and certifications
in respect of the Subadviser's policies and procedures, compliance by the Subadviser with federal securities laws and related
matters as the Trust's and/or the Adviser's compliance personnel may reasonably request. The Subadviser agrees to promptly
notify the Adviser of any compliance violations which affect the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Subadviser will immediately notify the Trust and the Adviser of the occurrence of any event
which would disqualify the Subadviser from serving as an investment adviser of an investment company pursuant to Section 9 of the
Act or otherwise. The Subadviser will also immediately notify the Trust and

the Adviser if it is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, including but not limited to the SEC and the CFTC, involving the affairs of the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. To the best of its knowledge, there are no material pending, threatened, or contemplated actions,
suits, proceedings, or investigations before or by any court, governmental, administrative or self-regulatory body, board of trade,
exchange, or arbitration panel to which it or any of its directors, officers, employees, partners, shareholders, members or principals,
or any of its affiliates is a party or to which it or its affiliates or any of its or its affiliates' assets are subject,
nor has it or any of its affiliates received any notice of an investigation, inquiry, or dispute by any court, governmental, administrative,
or self-regulatory body, board of trade, exchange, or arbitration panel regarding any of its or their activities, which might reasonably
be expected to result in (i) a material adverse effect on the Trust or (ii) a material adverse change in the Subadviser's
condition (financial or otherwise) or business, or which might reasonably be expected to materially impair the Subadviser's
ability to discharge its obligations under this Agreement. The Subadviser will also immediately notify the Trust and the Adviser
if the representation in this Section 13.G is no longer accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The Subadviser shall promptly notify the Adviser of any changes in its executive officers, partners
or in its key personnel, including, without limitation, any change in the portfolio manager(s) responsible for the Designated Series
or if there is an actual or expected change in control or management of the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Personal Liability</u>. Reference is hereby made to the Declaration of Trust establishing
the Trust, a copy of which has been filed with the SEC, and to any and all amendments thereto so filed or hereafter filed. The
name "Virtus Strategy Trust" refers to the Board under said Declaration of Trust, as trustees and not personally, and
no trustee, shareholder, officer, agent or employee of the Trust shall be held to any personal liability in connection with the
affairs of the Trust; only the trust estate under said Declaration of Trust is liable. Without limiting the generality of the foregoing,
neither the Subadviser nor any of its officers, directors, partners, shareholders or employees shall, under any circumstances,
have recourse or cause or willingly permit recourse to be had directly or indirectly to any personal, statutory, or other liability
of any shareholder, Trustee, officer, agent or employee of the Trust or of any successor of the Trust, whether such liability now
exists or is hereafter incurred for claims against the trust estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendment</u>. This Agreement, together with the Schedules attached hereto,
constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes any prior written or oral
agreements pertaining to the subject matter of this Agreement. This Agreement may be amended at any time, but only by written agreement
among the Subadviser, the Adviser and the Trust, which amendment, other than amendments to Schedules A, B, D, E and F, is subject
to the approval of the Board (including those trustees who are not "interested persons" of the Trust) and, if required
by the Act or applicable SEC rules and regulations, a vote of a majority of the Designated Series' outstanding voting securities;
provided, however, that, notwithstanding the foregoing, this Agreement may be amended or terminated in accordance with any exemptive
order issued to the Adviser, the Trust or its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Effective Date; Term</u>. This Agreement shall become effective on the date set forth on the
first page of this Agreement, and shall continue in effect until December 31, 2023. The Agreement shall continue from year to year
thereafter only so long as its continuance has been specifically approved at least annually (i) by a vote of the Board of the Trust
or by vote of a majority of outstanding voting securities of the Designated Series and (ii) by vote of a majority of the trustees
who are not interested persons of the Trust (as defined in the Act) or of any person party to this Agreement, cast in person (or
otherwise, as consistent with applicable laws, regulations and related guidance and relief) at a meeting called for the purpose
of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Termination</u>. This Agreement may be terminated at any time without payment of any penalty
(i) by the Board, or by a vote of a majority of the outstanding voting securities of the Designated Series, upon 60 days'
prior written notice to the Adviser and the Subadviser, (ii) by the Subadviser upon 60

days' prior written notice to the Adviser and the Trust, or (iii) by the Adviser upon 60 days' prior written notice to the Subadviser. This Agreement may also be terminated, without the payment of any penalty, by the Adviser or the Board immediately (i) upon the material breach by the Subadviser of this Agreement or (ii) at the terminating party's discretion, if the Subadviser or any officer, director or key portfolio manager of the Subadviser is accused in any regulatory, self-regulatory or judicial investigation or proceeding as having violated the federal securities laws or engaged in criminal conduct. This Agreement shall terminate automatically and immediately upon termination of the Advisory Agreement. This Agreement shall terminate automatically and immediately in the event of its assignment, as such term is defined in and interpreted under the terms of the 1940 Act and the rules promulgated thereunder. Termination of this Agreement will not affect any outstanding orders or transactions or any legal rights or obligations which may already have arisen. Transactions in progress at the date of termination will be completed by the Subadviser as soon as reasonably practicable. Provisions of this Agreement relating to indemnification and the preservation of records, as well as any responsibilities or obligations of the parties hereto arising from matters initiated prior to termination, shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>. To the extent that state law is not preempted by the provisions of any law
of the United States heretofore or hereafter enacted, as the same may be amended from time to time, this Agreement shall be administered,
construed and enforced according to the laws of the Commonwealth of Massachusetts applicable to contracts entered into and fully
performed within the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. If any term or condition of this Agreement shall be invalid or unenforceable
to any extent or in any application, then the remainder of this Agreement shall not be affected thereby, and each and every term
and condition of this Agreement shall be valid and enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices.</u> Any notice or other communication required to be given pursuant to this Agreement
shall be deemed duly given if delivered personally or by overnight delivery service or mailed by certified or registered mail,
return receipt requested and postage prepaid, or sent by facsimile or e-mail transmission addressed to the parties at their respective
addresses set forth below, or at such other address as shall be designated by any party in a written notice to the other party.

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| | |
|:---|:---|
| (a) | To the Adviser or the Trust at: |
|  | Virtus Investment Advisers, Inc.<br> One Financial Plaza<br> Hartford, Connecticut 06103<br> Attn: Legal Counsel<br> Telephone: (860) 263-4790<br> Facsimile: (860) 241-1028 |
| (b) | To the Subadviser at: |
|  | Duff & Phelps Investment Management Co.<br> 200 S. Wacker Drive, Suite 500<br> Chicago, IL 60606<br> Attn: Chief Compliance Officer<br> Telephone: (312) 263-2610<br> Facsimile: (312) 876-1028<br> Email: joyce.riegel@dpimc.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Certifications.</u> The Subadviser shall timely provide to the Adviser and the Trust, all
 information and documentation they may reasonably request as necessary or appropriate in order for the Adviser and the Board
 to oversee the activities of the Subadviser and in connection with the compliance by any of them with the requirements of
 this Agreement, the Registration Statement, the policies and procedures referenced herein, and any applicable law, including,
 without limitation, (i) information and commentary relating to the Subadviser or the Designated Series for the Trust's
 annual and semi-annual reports, in a format reasonably approved by the Adviser, together with (A) a certification that such
 information and commentary discuss all of the factors that materially affected the performance of the Designated Series, including
 the relevant market conditions and the investment techniques and strategies used and (B) additional certifications related
 to the Subadviser's management of the Trust in order to support the Trust's filings on Form N-CSR and other applicable
 forms, and the Trust's Principal Executive Officer's and Principal Financial Officer's certifications under
 Rule 30a-2 under the Act, thereon; (ii) within 5 business days of a quarter-end, a quarterly certification with respect to
 compliance and operational matters related to the Subadviser and the Subadviser's management of the Designated Series
 (including, without limitation, compliance with the applicable procedures), in a format reasonably requested by the Adviser,
 as it may be amended from time to time; and (iii) an annual certification from the Subadviser's Chief Compliance Officer,
 appointed under Rule 206(4)-7 under the Advisers Act with respect to the design and operation of the Subadviser's compliance
 program, in a format reasonably requested by the Adviser or the Trust. Without limiting the foregoing, the Subadviser shall
 provide a quarterly certification in a form substantially similar to that attached as Schedule E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall indemnify and hold harmless the Adviser from and against any and all claims,
losses, liabilities, or damages (including reasonable attorney's fees and other related expenses) (collectively, "Losses")
arising from the Subadviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under
this Agreement in the performance of its obligations under this Agreement; provided, however, that the Subadviser's obligation
under this Section 22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the
Adviser, is caused by or is otherwise directly related to (i) any breach by the Adviser of its representations or warranties made
herein, (ii) any willful misconduct, bad faith, reckless disregard or negligence of the Adviser in the performance of any of its
duties or obligations hereunder, or (iii) any untrue statement of a material fact contained in the Registration Statement, proxy
materials, reports, advertisements, sales literature, or other materials pertaining to the Trust or the omission to state therein
a material fact known to the Adviser that was required to be stated therein or necessary to make the statements therein not misleading,
if such statement or omission was made in reliance upon information furnished to the Subadviser or the Trust, or the omission of
such information, by the Adviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Adviser shall indemnify and hold harmless the Subadviser from and against any and all Losses
arising from the Adviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this
Agreement in the performance of its obligations under this Agreement; provided, however, that the Adviser's obligation under
this Section 22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Subadviser,
is caused by or is otherwise directly related to (i) any breach by the Subadviser of its representations or warranties made herein,
(ii) any willful misconduct, bad faith, reckless disregard or negligence of the Subadviser in the performance of any of its duties
or obligations hereunder, or (iii) any untrue statement of a material fact contained in the Registration Statement, proxy materials,
reports, advertisements, sales literature, or other materials pertaining to the Trust or the omission to state therein a material
fact known to the Subadviser that was required to be stated therein or necessary to make the statements therein not misleading,
if such statement or omission was made in reliance upon information furnished to the Adviser or the Trust, or the omission of such
information, by the Subadviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A party seeking indemnification hereunder (the "Indemnified Party") will (i) provide
prompt written notice to the other of any claim ("Claim") for which it intends to seek indemnification, (ii) grant
control of the defense and /or settlement of the Claim to the other party, and (iii) cooperate with the other party in the defense
thereof. The Indemnified Party will have the right at its own expense to participate in the defense of any Claim, but will not
have the right to control the defense, consent to judgment or agree to the settlement of any Claim without the written consent
of the other party. The party providing the indemnification will not consent to the entry of any judgment or enter any settlement
which (i) does not include, as an unconditional term, the release by the claimant of all liabilities for Claims against the Indemnified
Party or (ii) which otherwise adversely affects the rights of the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. No party will be liable to another party for consequential damages under any provision of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Receipt of Disclosure Documents</u>. The Trust and the Adviser acknowledge receipt, at least
48 hours prior to entering into this Agreement, of a copy of Part 2 of the Subadviser's Form ADV containing certain information
concerning the Subadviser and the nature of its business. The Subadviser will, promptly after making any amendment to its Form
ADV, furnish a copy of such amendment to the Adviser. On an annual basis and upon request, the Subadviser will provide a copy of
its audited financial statements, including balance sheets, for the two most recent fiscal years and, if available, each subsequent
fiscal quarter. At the time of providing such information, the Subadviser shall describe any material adverse change in its financial
condition since the date of its latest financial statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts; Fax Signatures</u>. This Agreement may be executed in any number of counterparts
(including executed counterparts delivered and exchanged by facsimile transmission) with the same effect as if all signing parties
had originally signed the same document, and all counterparts shall be construed together and shall constitute the same instrument.
For all purposes, signatures delivered and exchanged by facsimile transmission shall be binding and effective to the same extent
as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Bankruptcy and Related Events</u>. Each of the Adviser and the Subadviser agrees that it will
provide prompt notice to the other in the event that: (i) it makes an assignment for the benefit of creditors, files a voluntary
petition in bankruptcy, or is otherwise adjudged bankrupt or insolvent by a court of competent jurisdiction; or (ii) a material
event occurs that could reasonably be expected to adversely impair its ability to perform this Agreement. The Adviser further agrees
that it will provide prompt notice to the Subadviser in the event that the Trust ceases to be registered as an investment company
under the Act.

**[signature page follows]**

---

| | | |
|:---|:---|:---|
| **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley |
|  | Name: | W. Patrick Bradley |
|  | Title: | Executive Vice President, Chief Financial Officer & Treasurer |
| **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

**ACCEPTED:**

**DUFF & PHELPS INVESTMENT MANAGEMENT CO.**

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ David Grumhaus | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ David Grumhaus |
|  | Name: | David Grumhaus |
|  | Title: | President & Chief Investment Officer |

---

---

| | | |
|:---|:---|:---|
| SCHEDULES: | A. | Operational Procedures |
|  | B. | Record Keeping Requirements |
|  | C. | Fee Schedule |
|  | D. | Subadviser Functions |
|  | E. | Form of Sub-Certification |
|  | F. | Designated Series |

---

**<u>SCHEDULE A</u>**

**OPERATIONAL PROCEDURES**

In order to minimize operational problems, it will be necessary for a flow of information to be supplied in a secure manner by Subadviser to the Trust's service providers, including: The Bank of New York Mellon (the "Custodian"), Virtus Fund Services, LLC (the "Fund Administrator"), BNY Mellon Investment Servicing (US) Inc., (the "Accounting Agent"), any Prime Broker to the Series, and all other Counterparties/Brokers as required.

The Subadviser must furnish the Trust's service providers with required daily information as to executed trades in a format and time-frame agreed to by the Subadviser, Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties and designated persons of the Trust. Trade information sent to the Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties must include all necessary data within the required timeframes to allow such parties to perform their obligations to the Designated Series.

The Accounting Agent specifically requires a daily trade blotter with a summary of all trades, in addition to trade feeds, including, if no trades are executed, a report to that effect. Daily information as to executed trades for same-day settlement and future trades must be sent to the Accounting Agent no later than 5:00 p.m. (Eastern Time) on the day of the trade each day the Trust is open for business. All other executed trades must be delivered to the Accounting Agent on trade date +1 by 11:00 a.m. (Eastern Time) to ensure that they are part of the Designated Series' NAV calculation. (Subadviser will be responsible for reimbursement to the Trust for any loss caused by the Subadviser's failure to comply with the requirements of this Schedule A.) On fiscal quarter ends and calendar quarter ends, all trades must be delivered to the Accounting Agent by 4:30 p.m. (Eastern Time) for inclusion in the financial statements of the Designated Series. The data to be sent to the Accounting Agent and/or Fund Administrator will be as agreed by the Subadviser, Fund Administrator, Accounting Agent and designated persons of the Trust and shall include (without limitation) the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Transaction type (e.g., purchase, sale, open, close, put call);

2. Security type (e.g., equity, fixed income, swap, future, option, short, long);

3. Security name;

4. Exchange identifier (e.g., CUSIP, ISIN, Sedol, OCC Symbol) (as applicable);

5. Number of shares and par, original face, contract amount, notional amount;

6. Transaction price per share (clean if possible);

7. Strike price;

8. Aggregate principal amount;

9. Executing broker;

10. Settlement agent;

11. Trade date;

12. Settlement date;

13. Aggregate commission or if a net trade;

14. Interest purchased or sold from interest bearing security;

15. Net proceeds of the transaction;

16. Trade commission reason: best execution, soft dollar or research (to be provided quarterly);

17. Derivative terms;

18. Non-deliverable forward classification (to be provided quarterly);

19. Maturity/expiration date; and

20. Details of margin and collateral movement.

When opening accounts with brokers for, and in the name of, the Trust, the account must be a cash account. No margin accounts are to be opened by the Subadviser in the name of the Trust or any Series except as specifically approved by the Trust and the Fund Administrator. Delivery instructions are as specified by the Custodian. The Custodian will supply the Subadviser daily with a cash availability report via access to the Custodian website, or by email or by facsimile and the Accounting Agent will provide a five-day cash projection. This will normally be done by email or, if email is unavailable, by another form of immediate written communication, so that the Subadviser will know the amount available for investment purposes.

**<u>SCHEDULE B</u>**

**RECORDS TO BE MAINTAINED BY THE SUBADVISER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (Rule 31a-1(b)(5) and (6)) A record of each brokerage order, and all other series purchases and
sales, given by the Subadviser on behalf of the Trust for, or in connection with, the purchase or sale of securities, whether executed
or unexecuted. Such records shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The name of the broker;

B. The terms and conditions of the order and of any modifications or cancellations thereof;

C. The time of entry or cancellation;

D. The price at which executed;

E. The time of receipt of a report of execution; and

F. The name of the person who placed the order on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within ten (10) days after the end
of the quarter, showing specifically the basis or bases upon which the allocation of orders for the purchase and sale of series
securities to named brokers or dealers was effected, and the division of brokerage commissions or other compensation on such purchase
and sale orders. Such record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shall include the consideration given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The sale of shares of the Trust by brokers or dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The supplying of services or benefits by brokers or dealers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust,

(b) The Adviser,

(c) The Subadviser, and

(d) Any person other than the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any other consideration other than the technical qualifications of the brokers and dealers as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shall show the nature of the services or benefits made available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Shall describe in detail the application of any general or specific formula or other determinant
used in arriving at such allocation of purchase and sale orders and such division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Shall show the name of the person responsible for making the determination of such allocation and
such division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (Rule 31a-1(b)(10)) A record in the form of an appropriate memorandum identifying the person or
persons, committees or groups authorizing the purchase or sale of series securities. Where a committee or group makes an authorization,
a record shall be kept of the names of its members who participate in the authorization. There shall be retained as part of this
record: any memorandum, recommendation or instruction supporting or authorizing the purchase or sale of series securities and such
other information as is appropriate to support the authorization.\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Rule 31a-1(f)) Such accounts, books and other documents as are required to be maintained by registered
investment advisers by rule adopted under Section 204 of the Advisers Act, to the extent such records are necessary or appropriate
to record the Subadviser's transactions for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Records as necessary under Board-approved policies and procedures of the Trust, including without
limitation those related to valuation determinations.

\* Such information might include: current financial information, annual and quarterly reports, press releases, reports by analysts and from brokerage firms (including their recommendations, i.e., buy, sell, hold) or any internal reports or subadviser review.

**<u>SCHEDULE C</u>**

**SUBADVISORY FEE**

For services provided to the Trust, the Adviser will pay to the Subadviser a fee, payable monthly in arrears, equal to 50% of the net advisory fee applicable to the Designated Series, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The total expenses of the Designated Series will be calculated in accordance with the terms of
its prospectus, including application of the gross advisory fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such total expenses will be reduced by the application of any applicable fee waiver and/or expense
limitation agreement, in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The net advisory fee applicable to the Designated Series will then be calculated by subtracting
from the gross advisory fee any amount required to be waived under the applicable fee waiver(s) and/or reimbursed under such applicable
expense limitation agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that the Adviser waives its entire fee and also assumes expenses of the Designated
Series pursuant to an applicable expense limitation agreement, the Subadviser will similarly waive its entire fee and will share
in the expense assumption by contributing 50% of the assumed amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If during the term of this Agreement the Adviser later recaptures some or all of the fees waived
or expenses assumed by the Adviser and the Subadviser together, the Adviser shall pay to the Subadviser a pro rata amount of the
fee(s)/expense(s) recaptured that is attributable to the Subadviser's portion of the original waiver/assumed expense.

**<u>SCHEDULE D</u>**

**SUBADVISER FUNCTIONS**

With respect to managing the investment and reinvestment of the Designated Series' assets, the Subadviser shall provide, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An investment program for the Designated Series consistent with its investment objectives based
upon the development, review and adjustment of buy/sell strategies approved from time to time by the Board and the Adviser in paragraph
3 of this Subadvisory Agreement and implementation of that program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Periodic reports, on at least a quarterly basis, in form and substance acceptable to the Adviser,
with respect to: i) compliance with the Code of Ethics and the Trust's code of ethics; ii) compliance with procedures adopted
from time to time by the Board relative to securities eligible for resale under Rule 144A under the Securities Act of 1933, as
amended; iii) diversification of Designated Series assets in accordance with the then prevailing Prospectus and Statement of Additional
Information pertaining to the Designated Series and governing laws, regulations, rules and orders; iv) compliance with governing
restrictions relating to the fair valuation of securities for which market quotations are not readily available or considered "illiquid"
for the purposes of complying with the Designated Series' limitation on acquisition of illiquid securities; v) any and all
other reports reasonably requested in accordance with or described in this Agreement; vi) the implementation of the Designated
Series' investment program, including, without limitation, analysis of Designated Series performance; vii) compliance with
the Investment Guidelines; viii) description of material changes in policies or procedures; and ix) description of any significant
firm related developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after filing with the SEC an amendment to its Form ADV, a copy of such amendment to the
Adviser and the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Attendance by appropriate representatives of the Subadviser at meetings requested by the Adviser
or Board at such time(s) and location(s) as reasonably requested by the Adviser or Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice to the Board and the Adviser of the occurrence of any event which would disqualify the Subadviser
from serving as an investment adviser of an investment company pursuant to Section 9(a) of the Act or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable assistance in the valuation of securities including the participation of appropriate
representatives at fair valuation committee meetings.

**<u>SCHEDULE E</u>**

**FORM OF SUB-CERTIFICATION**

---

| | |
|:---|:---|
| To: |  |
| Re: | Subadviser's Form N-CSR Certification for the [Name of Designated Series]. |
| From: | [Name of Subadviser] |
|  | Representations in support of Investment Company Act Rule 30a-2 certifications of Form N-CSR. |
|  | [Name of Designated Series]. |
|  | In connection with your certification responsibility under Rule 30a-2 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, I have reviewed the following information presented in the schedule of investments for the period ended [Date of Reporting Period] (the "Report") which forms part of the N-CSR, as applicable, for the Trust. |

---

Schedule of Investments

Our organization has designed, implemented and maintained internal controls and procedures, designed for the purpose of ensuring the accuracy and completeness of relevant portfolio trade data transmitted to those responsible for the preparation of the Schedule of Investments. As of the date of this certification there have been no material modifications to these internal controls and procedures.

In addition, our organization has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such internal controls and procedures to ensure that material information is made known
to the appropriate groups responsible for servicing the above-mentioned mutual fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed and implemented controls which ensure that all transactions provided to the fund's
custodians/prime broker and accounting agent ("vendors") have been delivered in a secure manner by authorized persons, and
that access to the fund's records maintained by the fund's vendors is restricted to authorized persons of our
firm or, if applicable, any third party administrator utilized by our firm. Such controls include review of the authorized
persons at least annually and prompt communication of any changes to authorized persons to the fund's vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of our internal controls and procedures, as of a date within 90 days
prior to the date of this certification and we have concluded that such controls and procedures are effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In addition, to the best of my knowledge, there has been no fraud, whether or not material, that
involves our organization's management or other employees who have a significant role in our organization's control
and procedures as they relate to our duties as subadviser to the Designated Series.

I have read the draft of the Report which I understand to be current as of [Date of Reporting Period] and based on my knowledge, such draft of the Report, including the Fund Summary and Asset Allocations (as applicable), does not, with respect to the Designated Series, contain any untrue statement of a material fact or omit to state a material fact necessary to make the information contained therein, in light of the circumstances under which such information is presented, not misleading with respect to the period covered by such draft Report.

I have disclosed, based on my most recent evaluation, to the Designated Series' Chief Accounting Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant changes, deficiencies and material weakness, if any, in the design or operation
of the Subadviser's internal controls and procedures which could adversely affect the Registrant's ability to

record, process, summarize and report financial data with respect to the Designated Series in a timely fashion; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves the Subadviser's management or other employees
who have a significant role in the Subadviser's internal controls and procedures for financial reporting.

I certify that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Subadviser's Portfolio Manager(s) has/have complied with the restrictions and reporting
requirements of the Code of Ethics (the "Code"). The term Portfolio Manager is as defined in the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subadviser has complied with the Prospectus and Statement of Additional Information of the
Designated Series and the Policies and Procedures of the Designated Series as adopted by the Designated Series Board of Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I have no knowledge of any compliance violations except as disclosed in writing to the Virtus Compliance
Department by me or by the Subadviser's compliance administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Subadviser has complied with the rules and regulations of the 33 Act and 40 Act, and such other
regulations as may apply to the extent those rules and regulations pertain to the responsibilities of the Subadviser with respect
to the Designated Series as outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Since the submission of our most recent certification there have not been any divestments of securities
of issuers that conduct or have direct investments in business operations in Iran or Sudan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The subadviser has disclosed to the Adviser or the Designated Series any holdings required to be
disclosed under the Iran Threat Reduction and Syria Human Rights Act of 2012, the Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010, the Iran Sanctions Act of 1996, as Amended and Executive Orders 13224, and 13382.

This certification relates solely to the Designated Series named above and may not be relied upon by any other fund or entity.

The Subadviser does not maintain the official books and records of the above Designated Series. The Subadviser's records are based on its own portfolio management system, a record-keeping system that is not intended to serve as the Designated Series official accounting system. The Subadviser is not responsible for the preparation of the Report.

---

| | |
|:---|:---|
| [Name of Subadviser] | Date |
| [Name of Authorized Signer] |  |
| [Title of Authorized Signer] |  |

---

**<u>SCHEDULE F</u>**

**DESIGNATED SERIES**

Virtus Duff & Phelps Water Fund

## Ex-99.(D)(4)

**Exhibit d.4**

**VIRTUS STATEGY TRUST**

**Virtus NFJ Global Sustainability Fund**

**<u>SUBADVISORY AGREEMENT</u>**

July 25, 2022

NFJ Investment Group, LLC<br> One Financial Plaza<br> Hartford, Connecticut 06103

---

| | |
|:---|:---|
| **RE:** | **Subadvisory Agreement** |

---

Ladies and Gentlemen:

Virtus Strategy Trust (the "Trust") is an open-end investment company of the series type registered under the Investment Company Act of 1940, as amended (the "Act"), and is subject to the rules and regulations promulgated thereunder. The shares of the Trust are offered or may be offered in several series (sometimes hereafter referred to as the "Series"), including Virtus NFJ Global Sustainability Fund.

Virtus Investment Advisers, Inc. (the "Adviser") evaluates and recommends series advisers for the Series and is responsible for the day-to-day management of the Series.

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment as a Subadviser</u>. The Adviser, being duly authorized, hereby appoints NFJ Investment
Group, LLC (the "Subadviser") as a discretionary series adviser to invest and reinvest the assets of the Series designated
by the Adviser as set forth on Schedule F attached hereto (the "Designated Series") on the terms and conditions set forth
herein. The services of the Subadviser hereunder are not to be deemed exclusive; the Subadviser may render services to others and engage
in other activities that do not conflict in any material manner with the Subadviser's performance hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Acceptance of Appointment; Standard of Performance</u>. The Subadviser accepts its appointment as a
discretionary series adviser of the Designated Series and agrees, subject to the oversight of the Board of Trustees of the Trust (the
"Board") and the Adviser, to use its best professional judgment to make investment decisions for the Designated Series in
accordance with the provisions of this Agreement and as set forth in Schedule D attached hereto and made a part hereof. The Subadviser
shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized (whether
herein or otherwise), have no authority or obligation to act for or represent the Adviser, the Trust or the Series in any way.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services of Subadviser</u>. In providing management services to the Designated Series, the Subadviser
shall be subject to the investment objectives, policies and restrictions of the Trust as they apply to the Designated Series and as set
forth in the Trust's then current prospectus ("Prospectus") and statement of additional information ("Statement
of Additional Information") filed with the Securities and Exchange Commission (the "SEC") as part of the Trust's
registration statement (the "Registration Statement"), as may be periodically amended and provided to the Subadviser by the
Adviser, and to the investment restrictions set forth in the Act and the Rules thereunder, to the supervision and control of the Board,
and to instructions from the Adviser. The Subadviser shall not, without the Trust's prior written approval, effect any transactions
that would cause the Designated Series at the time of the transaction to be out of compliance with any of such restrictions or policies.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transaction Procedures</u>. All series transactions for the Designated Series shall be consummated
by payment to, or delivery by, the custodian(s) from time to time designated by the Trust (the "Custodian"), or such depositories
or agents as may be designated by the Custodian in writing, of all cash and/or securities due to or from the Designated Series. The Subadviser
shall not have possession or custody of such cash and/or

securities or any responsibility or liability with respect to such custody. The Subadviser shall advise the Custodian and confirm in writing to the Trust all investment orders for the Designated Series placed by it with brokers and dealers at the time and in the manner set forth in Schedule A hereto (as amended from time to time). The Trust shall issue to the Custodian such instructions as may be appropriate in connection with the settlement of any transaction initiated by the Subadviser. The Trust shall be responsible for all custodial arrangements and the payment of all custodial charges and fees, and, upon giving proper instructions to the Custodian, the Subadviser shall have no responsibility or liability with respect to custodial arrangements or the acts, omissions or other conduct of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Allocation of Brokerage</u>. The Subadviser shall have authority and discretion to select brokers and
dealers to execute Designated Series transactions initiated by the Subadviser, and to select the markets on or in which the transactions
will be executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In placing orders for the sale and purchase of Designated Series securities for the Trust, the Subadviser's
primary responsibility shall be to seek the best execution of orders at the most favorable prices. However, this responsibility shall
not obligate the Subadviser to solicit competitive bids for each transaction or to seek the lowest available commission cost to the Trust,
as long as the Subadviser reasonably believes that the broker or dealer selected by it can be expected to obtain a "best execution"
market price on the particular transaction and determines in good faith that the commission cost is reasonable in relation to the value
of the brokerage and research services (as defined in Section 28(e)(3) of the Securities Exchange Act of 1934, as amended) provided by
such broker or dealer to the Subadviser, viewed in terms of either that particular transaction or of the Subadviser's overall responsibilities
with respect to its clients, including the Trust, as to which the Subadviser exercises investment discretion, notwithstanding that the
Trust may not be the direct or exclusive beneficiary of any such services or that another broker may be willing to charge the Trust a
lower commission on the particular transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser may manage other portfolios and expects that the Trust and other portfolios the Subadviser
manages will, from time to time, purchase or sell the same securities. The Subadviser may aggregate orders for the purchase or sale of
securities on behalf of the Designated Series with orders on behalf of other portfolios the Subadviser manages. Securities purchased or
proceeds of securities sold through aggregated orders, as well as expenses incurred in the transaction, shall be allocated to the account
of each portfolio managed by the Subadviser that bought or sold such securities in a manner considered by the Subadviser to be equitable
and consistent with the Subadviser's fiduciary obligations in respect of the Designated Series and to such other accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall not execute any transactions for the Designated Series with a broker or dealer that
is an "affiliated person" (as defined in the Act) of (i) the Designated Series; (ii) another Series; (iii) the Adviser; (iv)
the Subadviser or any other subadviser to the Designated Series; (v) a principal underwriter of the Trust's shares; or (vi) any
other affiliated person of the Designated Series, in each case, unless such transactions are permitted by applicable law or regulation
and carried out in compliance with any applicable policies and procedures of the Trust. The Trust shall provide the Subadviser with a
list of brokers and dealers that are "affiliated persons" of the Trust, the Adviser or the principal underwriter, and applicable
policies and procedures. Upon the request of the Adviser, the Subadviser shall promptly, and in any event within three business days of
a request, indicate whether any entity identified by the Adviser in such request is an "affiliated person," as such term is
defined in the Act, of (i) the Subadviser or (ii) any affiliated person of the Subadviser, subject in each case to any confidentiality
requirements applicable to the Subadviser and/or its affiliates. Further, the Subadviser shall provide the Adviser with a list of (x)
each broker-dealer entity that is an "affiliated person," as such term is defined in the Act, of the Subadviser and (y) each
affiliated person of the Subadviser that has outstanding publicly-issued debt or equity. Each of the Adviser and the Subadviser agrees
promptly to update such list(s) whenever the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted
from such list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Consistent with its fiduciary obligations to the Trust in respect of the Designated Series and the requirements
of best price and execution, the Subadviser may, under certain circumstances, arrange to

have purchase and sale transactions effected directly between the Designated Series and another account managed by the Subadviser ("cross transactions"), provided that such transactions are carried out in accordance with applicable law or regulation and any applicable policies and procedures of the Trust. The Trust shall provide the Subadviser with applicable policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Proxies and Other Shareholder Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Unless the Adviser or the Trust gives the Subadviser written instructions to the contrary, the Subadviser,
or a third party designee acting under the authority and supervision of the Subadviser, shall review all proxy solicitation materials
and be responsible for voting and handling all proxies in relation to the assets of the Designated Series. Unless the Adviser or the Trust
gives the Subadviser written instructions to the contrary, provided that the Adviser has reviewed the Subadviser's proxy voting
procedures then in effect and determined them to comply with the requirements of the Trust's proxy voting policy, the Subadviser
will, in compliance with the Subadviser's proxy voting procedures then in effect, vote or abstain from voting, all proxies solicited
by or with respect to the issuers of securities in which assets of the Designated Series may be invested. The Adviser shall cause the
Custodian, the Administrator or another party, to forward promptly to the Subadviser all proxies upon receipt, so as to afford the Subadviser
a reasonable amount of time in which to determine how to vote such proxies. The Subadviser agrees to provide the Adviser in a timely manner
with any changes to the Subadviser's proxy voting procedures. The Subadviser further agrees to provide the Adviser in a timely manner
with a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Trust
to file Form N-PX as required by Rule 30b1-4 under the Act. The Subadviser shall provide disclosure regarding its proxy voting policies
and procedures in accordance with the requirements of Form N-1A for inclusion in the Registration Statement of the Trust. During any annual
period in which the Subadviser has voted proxies for the Trust, the Subadviser shall, as may reasonably be requested by the Adviser, certify
as to its compliance with its proxy voting policies and procedures and applicable federal statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser is authorized to deal with reorganizations, exchange offers and other voluntary corporate
actions with respect to securities held in the Designated Series in such manner as the Subadviser deems advisable, unless the Trust or
the Adviser otherwise specifically directs in writing. It is acknowledged and agreed that the Subadviser shall not be responsible for
the filing of claims (or otherwise causing the Trust to participate) in class action settlements or similar proceedings in which shareholders
may participate related to securities currently or previously associated with the Designated Series. With the Adviser's approval,
on a case-by-case basis the Subadviser may obtain the authority and take on the responsibility to: (i) identify, evaluate and pursue legal
claims, including commencing or defending suits, affecting the securities held at any time in the Designated Series, including claims
in bankruptcy, class action securities litigation and other litigation; (ii) participate in such litigation or related proceedings with
respect to such securities as the Subadviser deems appropriate to preserve or enhance the value of the Designated Series, including filing
proofs of claim and related documents and serving as "lead plaintiff" in class action lawsuits; (iii) exercise generally any
of the powers of an owner with respect to the supervision and management of such rights or claims, including the settlement, compromise
or submission to arbitration of any claims, the exercise of which the Subadviser deems to be in the best interest of the Designated Series
or required by applicable law, including ERISA, and (iv) employ suitable agents, including legal counsel, and to pay their reasonable
fees, expenses and related costs from the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Prohibited Conduct</u>. In accordance with Rule 12d3-1 and Rule 17a-10 under the 1940 Act and any other
applicable law or regulation, the Subadviser's responsibility regarding investment advice hereunder is limited to the Designated
Series, and the Subadviser will not consult with any other investment advisory firm that provides investment advisory services to the
Trust or any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates regarding transactions in securities
or other assets for the Trust. The Trust shall provide the Subadviser with a list of investment companies sponsored by Virtus Investment
Partners, Inc. and its affiliates, and the Subadviser shall be in breach of the foregoing provision only if the investment company is
included in such a list provided to the Subadviser prior to such prohibited
action. The Subadviser, and its affiliates and agents, shall refrain from making any written or oral statements concerning

the Designated Series, the Trust, any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates, and any substantially similar products, that are reasonably likely to mislead investors regarding either (i) the services rendered by the Subadviser to the Designated Series or the Trust, or (ii) the Designated Series, including without limitation with respect to the investment strategies and/or risks, and/or the performance thereof. In addition, the Subadviser shall not, without the prior written consent of the Trust and the Adviser, delegate any obligation assumed pursuant to this Agreement to any affiliated or unaffiliated third party. The parties acknowledge and agree that the Subadviser may, in its discretion, utilize personnel employed by affiliates of the Subadviser to perform services pursuant to this Agreement by way of a "participating affiliate" agreement in accordance with, and to the extent permitted by, the Act and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including the published interpretations thereof by the SEC or its staff. Such participating affiliate agreement shall subject the personnel providing such services to the Subadviser's compliance and other programs with respect to their activities on behalf of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Subadviser assumes full responsibility for all actions, and any failure to act, by each person utilized by the Subadviser to perform services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Information and Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall keep the Trust and the Adviser informed of developments relating to its duties as
Subadviser of which the Subadviser has, or should have, knowledge that would materially affect the Designated Series. In this regard,
the Subadviser shall provide the Trust, the Adviser and their respective officers with such periodic reports concerning the obligations
the Subadviser has assumed under this Agreement as the Trust and the Adviser may from time to time reasonably request. In addition, prior
to each meeting of the Board, the Subadviser shall provide the Adviser and the Board with reports regarding the Subadviser's management
of the Designated Series during the most recently completed quarter, which reports: (i) shall include Subadviser's representation
that its performance of its investment management duties hereunder is in compliance with the Designated Series' investment objectives
and practices, the Act and applicable rules and regulations under the Act, and the diversification and minimum "good income"
requirements of Subchapter M under the Internal Revenue Code of 1986, as amended, and (ii) otherwise shall be in such form as may be reasonably
required by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of the Adviser and the Subadviser shall provide the other party with a list, to the best of the Adviser's
or the Subadviser's respective knowledge, of each affiliated person (and any affiliated person of such an affiliated person) of
the Adviser or the Subadviser, as the case may be, and each of the Adviser and Subadviser agrees promptly to update such list whenever
the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted from the list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall also provide the Adviser with any information reasonably requested by the Adviser
regarding its management of the Designated Series required for any shareholder report, amended Registration Statement, or Prospectus supplement
to be filed by the Trust with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Subadviser shall promptly notify the Adviser and the Trust in the event that any of the Subadviser's
employees or contractors raise any issues concerning any actual or potential material violation of any law, regulation or internal policy
of the Subadviser, in each case actually or potentially affecting the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Fees for Services</u>. The compensation of the Subadviser for its services under this Agreement shall
be calculated and paid by the Adviser in accordance with the attached Schedule C. Pursuant to the Investment Advisory Agreement between
the Trust and the Adviser, the Adviser is solely responsible for the payment of fees to the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. Absent the Subadviser's
 breach of this Agreement or the willful misconduct, bad faith, gross negligence, or reckless disregard of the obligations or duties
 hereunder on the part of the Subadviser, or its officers, directors, partners, agents, employees and controlling persons, the Subadviser shall not be liable for any
act or omission in the course of, or connected with, rendering services hereunder or for any

losses that may be sustained in the purchase, holding or sale of any position; *provided, however,* that the Subadviser shall be responsible for, and shall indemnify and hold the Trust and the Adviser and each of their respective directors or trustees, members, officers, employees and shareholders, and each person, if any, who controls the Trust or the Adviser within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act"), harmless against, any and all Losses (as defined below) arising out of or resulting from a "Trade Error" (as defined in the compliance policies and procedures of the Trust), as the same may be amended from time to time) caused by the negligent action or negligent omission of the Subadviser or its agent. The Adviser agrees to provide prior written notice to the Subadviser of any material changes to the definition of Trade Error becoming effective with respect to the Designated Series unless, in the reasonable discretion of the Adviser, such change must become effective earlier due to any applicable law, rule, regulation or court order. It is acknowledged and agreed that any Trade Error that results in a gain to the Designated Series shall inure to the benefit of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Designated Series is a third party beneficiary of the indemnity granted in this Section 10, and the indemnity is intended to cover claims by the Designated Series, the Trust (on behalf of the Designated Series), or the Adviser against the Subadviser for recovery pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Confidentiality</u>. Subject to the duty of the Subadviser and the Trust to comply with applicable
law, including any demand of any regulatory or taxing authority having jurisdiction, the parties hereto shall treat as confidential all
information pertaining to the Designated Series and the actions of the Subadviser and the Trust in respect thereof. Notwithstanding the
foregoing, the Trust and the Adviser agree that the Subadviser may (i) disclose in marketing materials and similar communications that
the Subadviser has been engaged to manage assets of the Designated Series pursuant to this Agreement, and (ii) include performance statistics
regarding the Designated Series in composite performance statistics regarding one or more groups of Subadviser's clients published
or included in any of the foregoing communications, provided that the Subadviser does not identify any performance statistics as relating
specifically to the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>. This Agreement shall terminate automatically in the event of its assignment, as that
term is defined in Section 2(a)(4) of the Act. The Subadviser shall notify the Trust and the Adviser in writing sufficiently in advance
of any proposed change of control, as defined in Section 2(a)(9) of the Act, as will enable the Trust to consider whether an assignment
as defined in Section 2(a)(4) of the Act will occur, and to take the steps necessary to enter into a new contract with the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Representations, Warranties and Agreements of the Subadviser</u>. The Subadviser represents, warrants
and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its
organization, and is qualified to do business in each jurisdiction in which failure to be so qualified would reasonably be expected to
have a material adverse effect upon it. It (i) is registered as an "investment adviser" under the Investment Advisers Act
of 1940, as amended ("Advisers Act") and will continue to be so registered for so long as this Agreement remains in effect;
(ii) is not prohibited by the Act or the Advisers Act from performing the services contemplated by this Agreement; provided, however,
that the Subadviser makes no representation or warranty with regard to the approval of this Agreement by the Board under Section 15 of
the Act; (iii) has appointed a Chief Compliance Officer under Rule 206(4)-7 under the Advisers Act; (iv) has adopted written policies
and procedures that are reasonably designed to prevent violations of the Advisers Act from occurring, and correct promptly any violations
that have occurred, and will provide notice promptly to the Adviser of any material violations relating to the Trust; (v) has materially
met and will seek to continue to meet for so long as this Agreement remains in effect, any other applicable federal or state requirements,
or the applicable requirements of any regulatory or industry self-regulatory agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. It is either registered as a commodity trading advisor or duly exempt from such registration with the
U.S. Commodity Futures Trading Commission ("CFTC"), and it will maintain such registration or exemption continuously during
the term of this Agreement or, alternatively, will become a commodity

trading advisor duly registered with the CFTC and will be a member in good standing with the National Futures Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It will maintain, keep current and preserve on behalf of the Trust, records in the manner required or
permitted by the Act and the Rules thereunder including the records identified in Schedule B (as Schedule B may be amended from time to
time). The Subadviser agrees that such records are the property of the Trust, and shall be surrendered to the Trust or to the Adviser
as agent of the Trust promptly upon request of either. The Trust acknowledges that the Subadviser may retain copies of all records required
to meet the record retention requirements imposed by law and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It shall maintain a written code of ethics (the "Code of Ethics") complying with the requirements
of Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Act and shall provide the Trust and the Adviser with a copy of the Code
of Ethics and evidence of its adoption. It shall institute procedures reasonably necessary to prevent Access Persons (as defined in Rule
17j-1) from violating its Code of Ethics. The Subadviser acknowledges receipt of the written code of ethics adopted by and on behalf of
the Trust. Each calendar quarter while this Agreement is in effect, a duly authorized compliance officer of the Subadviser shall certify
to the Trust and to the Adviser that the Subadviser has complied with the requirements of Rules 204A-1 and 17j-1 during the previous calendar
quarter and that there has been no material violation of its Code of Ethics, or of Rule 17j-1(b), or that any persons covered under its
Code of Ethics has divulged or acted upon any material, non-public information, as such term is defined under relevant securities laws,
and if such a violation of the code of ethics of the Trust has occurred, or if such a violation of its Code of Ethics has occurred, that
appropriate action was taken in response to such violation. The Subadviser shall notify the Adviser promptly of any material violation
of the Code of Ethics involving the Trust. The Subadviser will provide such additional information regarding violations of the Code of
Ethics directly affecting the Trust as the Trust or its Chief Compliance Officer on behalf of the Trust or the Adviser may reasonably
request in order to assess the functioning of the Code of Ethics or any harm caused to the Trust from a violation of the Code of Ethics.
Further, the Subadviser represents that it has policies and procedures regarding the detection and prevention of the misuse of material,
nonpublic information by the Subadviser and its employees. The Subadviser will explain what it has done to seek to ensure such compliance
in the future. Annually, the Subadviser shall furnish to the Trust and the Adviser a written report which complies with the requirements
of Rule 17j-1 concerning the Subadviser's Code of Ethics. The Subadviser shall permit the Trust and the Adviser to examine the reports
required to be made by the Subadviser under Rules 204A-1(b) and 17j-1(d)(1) and this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It has adopted and implemented, and throughout the term of this Agreement shall maintain in effect and
implement, policies and procedures reasonably designed to prevent, detect and correct violations by the Subadviser and its supervised
persons, and, to the extent the activities of the Subadviser in respect of the Trust could affect the Trust, by the Trust, of "federal
securities laws" (as defined in Rule 38a-1 under the Act), and that the Subadviser has provided the Trust with true and complete
copies of its policies and procedures (or summaries thereof) and related information reasonably requested by the Trust and/or the Adviser.
The Subadviser agrees to cooperate with periodic reviews by the Trust's and/or the Adviser's compliance personnel of the Subadviser's
policies and procedures, their operation and implementation and other compliance matters and to provide to the Trust and/or the Adviser
from time to time such additional information and certifications in respect of the Subadviser's policies and procedures, compliance
by the Subadviser with federal securities laws and related matters as the Trust's and/or the Adviser's compliance personnel
may reasonably request. The Subadviser agrees to promptly notify the Adviser of any compliance violations which affect the Designated
Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Subadviser will immediately notify the Trust and the Adviser of the occurrence of any event which
would disqualify the Subadviser from serving as an investment adviser of an investment company pursuant to Section 9 of the Act or otherwise.
The Subadviser will also immediately notify the Trust and

the Adviser if it is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, including but not limited to the SEC and the CFTC, involving the affairs of the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. To the best of its knowledge, there are no material pending, threatened, or contemplated actions, suits,
proceedings, or investigations before or by any court, governmental, administrative or self-regulatory body, board of trade, exchange,
or arbitration panel to which it or any of its directors, officers, employees, partners, shareholders, members or principals, or any of
its affiliates is a party or to which it or its affiliates or any of its or its affiliates' assets are subject, nor has it or any
of its affiliates received any notice of an investigation, inquiry, or dispute by any court, governmental, administrative, or self-regulatory
body, board of trade, exchange, or arbitration panel regarding any of its or their activities, which might reasonably be expected to result
in (i) a material adverse effect on the Trust or (ii) a material adverse change in the Subadviser's condition (financial or otherwise)
or business, or which might reasonably be expected to materially impair the Subadviser's ability to discharge its obligations under
this Agreement. The Subadviser will also immediately notify the Trust and the Adviser if the representation in this Section 13.G is no
longer accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The Subadviser shall promptly notify the Adviser of any changes in its executive officers, partners or
in its key personnel, including, without limitation, any change in the portfolio manager(s) responsible for the Designated Series or if
there is an actual or expected change in control or management of the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Personal Liability</u>. Reference is hereby made to the Declaration of Trust establishing the Trust,
a copy of which has been filed with the SEC, and to any and all amendments thereto so filed or hereafter filed. The name "Virtus
Strategy Trust" refers to the Board under said Declaration of Trust, as trustees and not personally, and no trustee, shareholder,
officer, agent or employee of the Trust shall be held to any personal liability in connection with the affairs of the Trust; only the
trust estate under said Declaration of Trust is liable. Without limiting the generality of the foregoing, neither the Subadviser nor any
of its officers, directors, partners, shareholders or employees shall, under any circumstances, have recourse or cause or willingly permit
recourse to be had directly or indirectly to any personal, statutory, or other liability of any shareholder, Trustee, officer, agent or
employee of the Trust or of any successor of the Trust, whether such liability now exists or is hereafter incurred for claims against
the trust estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendment</u>. This Agreement, together with the Schedules attached hereto, constitutes
the entire agreement of the parties with respect to the subject matter hereof and supersedes any prior written or oral agreements pertaining
to the subject matter of this Agreement. This Agreement may be amended at any time, but only by written agreement among the Subadviser,
the Adviser and the Trust, which amendment, other than amendments to Schedules A, B, D, E and F, is subject to the approval of the Board
(including those trustees who are not "interested persons" of the Trust) and, if required by the Act or applicable SEC rules
and regulations, a vote of a majority of the Designated Series' outstanding voting securities; provided, however, that, notwithstanding
the foregoing, this Agreement may be amended or terminated in accordance with any exemptive order issued to the Adviser, the Trust or
its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Effective Date; Term</u>. This Agreement shall become effective on the date set forth on the first
page of this Agreement, and shall continue in effect until December 31, 2023. The Agreement shall continue from year to year thereafter
only so long as its continuance has been specifically approved at least annually (i) by a vote of the Board of the Trust or by vote of
a majority of outstanding voting securities of the Designated Series and (ii) by vote of a majority of the trustees who are not interested
persons of the Trust (as defined in the Act) or of any person party to this Agreement, cast in person (or otherwise, as consistent with
applicable laws, regulations and related guidance and relief) at a meeting called for the purpose of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Termination</u>. This Agreement may be terminated at any time without payment of any penalty (i) by
the Board, or by a vote of a majority of the outstanding voting securities of the Designated Series, upon 60

days' prior written notice to the Adviser and the Subadviser, (ii) by the Subadviser upon 60 days' prior written notice to the Adviser and the Trust, or (iii) by the Adviser upon 60 days' prior written notice to the Subadviser. This Agreement may also be terminated, without the payment of any penalty, by the Adviser or the Board immediately (i) upon the material breach by the Subadviser of this Agreement or (ii) at the terminating party's discretion, if the Subadviser or any officer, director or key portfolio manager of the Subadviser is accused in any regulatory, self-regulatory or judicial investigation or proceeding as having violated the federal securities laws or engaged in criminal conduct. This Agreement shall terminate automatically and immediately upon termination of the Advisory Agreement. This Agreement shall terminate automatically and immediately in the event of its assignment, as such term is defined in and interpreted under the terms of the 1940 Act and the rules promulgated thereunder. Termination of this Agreement will not affect any outstanding orders or transactions or any legal rights or obligations which may already have arisen. Transactions in progress at the date of termination will be completed by the Subadviser as soon as reasonably practicable. Provisions of this Agreement relating to indemnification and the preservation of records, as well as any responsibilities or obligations of the parties hereto arising from matters initiated prior to termination, shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>. To the extent that state law is not preempted by the provisions of any law of the
United States heretofore or hereafter enacted, as the same may be amended from time to time, this Agreement shall be administered, construed
and enforced according to the laws of the Commonwealth of Massachusetts applicable to contracts entered into and fully performed within
the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. If any term or condition of this Agreement shall be invalid or unenforceable to any
extent or in any application, then the remainder of this Agreement shall not be affected thereby, and each and every term and condition
of this Agreement shall be valid and enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices.</u> Any notice or other communication required to be given pursuant to this Agreement shall
be deemed duly given if delivered personally or by overnight delivery service or mailed by certified or registered mail, return receipt
requested and postage prepaid, or sent by facsimile or e-mail transmission addressed to the parties at their respective addresses set
forth below, or at such other address as shall be designated by any party in a written notice to the other party.

(a) To the Adviser or the Trust at: <br>Virtus Investment Advisers, Inc. One Financial Plaza Hartford, Connecticut 06103 Attn: Legal Counsel Telephone: (860) 263-4790 Facsimile: (860) 241-1028

(b) To the Subadviser at: <br>NFJ Investment Group, LLC 2100 Ross Avenue, Suite 700 Dallas, TX 75101 Attn: Chief Compliance Officer With a copy to: Virtus Investment Advisers, Inc. One Financial Plaza Hartford, Connecticut 06103 Attn: Legal Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Certifications.</u> The Subadviser shall timely provide to the Adviser and the Trust, all information
and documentation they may reasonably request as necessary or appropriate in order for the Adviser and the Board to oversee the activities
of the Subadviser and in connection with the compliance by any of them with the requirements of this Agreement, the Registration Statement,
the policies and procedures referenced herein, and any applicable law, including, without limitation, (i) information and commentary relating
to the Subadviser or the Designated Series for the Trust's annual and semi-annual reports, in a format reasonably approved by the
Adviser, together with (A) a certification that such information and commentary discuss all of the factors that materially affected the
performance of the Designated Series, including the relevant market conditions and the investment techniques and strategies used and (B)
additional certifications related to the Subadviser's management of the Trust in order to support the Trust's filings on Form
N-CSR and other applicable forms, and the Trust's Principal Executive Officer's and Principal Financial Officer's certifications
under Rule 30a-2 under the Act, thereon; (ii) within 5 business days of a quarter-end, a quarterly certification with respect to compliance
and operational matters related to the Subadviser and the Subadviser's management of the Designated Series (including, without limitation,
compliance with the applicable procedures), in a format reasonably requested by the Adviser, as it may be amended from time to time; and
(iii) an annual certification from the Subadviser's Chief Compliance Officer, appointed under Rule 206(4)-7 under the Advisers Act
with respect to the design and operation of the Subadviser's compliance program, in a format reasonably requested by the Adviser
or the Trust. Without limiting the foregoing, the Subadviser shall provide a quarterly certification in a form substantially similar to
that attached as Schedule E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall indemnify and hold harmless the Adviser from and against any and all claims, losses,
liabilities, or damages (including reasonable attorney's fees and other related expenses) (collectively, "Losses") arising
from the Subadviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this Agreement
in the performance of its obligations under this Agreement; provided, however, that the Subadviser's obligation under this Section
22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Adviser, is caused by or
is otherwise directly related to (i) any breach by the Adviser of its representations or warranties made herein, (ii) any willful misconduct,
bad faith, reckless disregard or negligence of the Adviser in the performance of any of its duties or obligations hereunder, or (iii)
any untrue statement of a material fact contained in the Registration Statement, proxy materials, reports, advertisements, sales literature,
or other materials pertaining to the Trust or the omission to state therein a material fact known to the Adviser that was required to
be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon
information furnished to the Subadviser or the Trust, or the omission of such information, by the Adviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Adviser shall indemnify and hold harmless the Subadviser from and against any and all Losses arising
from the Adviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this Agreement in
the performance of its obligations under this Agreement; provided, however, that the Adviser's obligation under this Section 22
shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Subadviser, is caused by or
is otherwise directly related to (i) any breach by the Subadviser of its representations or warranties made herein, (ii) any willful misconduct,
bad faith, reckless disregard or negligence of the Subadviser in the performance of any of its duties or obligations hereunder, or (iii)
any untrue statement of a material fact contained in the Registration Statement, proxy materials, reports, advertisements, sales literature,
or other materials pertaining to the Trust or the omission to state therein a material fact known to the Subadviser that was required
to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon
information

furnished to the Adviser or the Trust, or the omission of such information, by the Subadviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A party seeking indemnification hereunder (the "Indemnified Party") will (i) provide prompt
written notice to the other of any claim ("Claim") for which it intends to seek indemnification, (ii) grant control of the
defense and /or settlement of the Claim to the other party, and (iii) cooperate with the other party in the defense thereof. The Indemnified
Party will have the right at its own expense to participate in the defense of any Claim, but will not have the right to control the defense,
consent to judgment or agree to the settlement of any Claim without the written consent of the other party. The party providing the indemnification
will not consent to the entry of any judgment or enter any settlement which (i) does not include, as an unconditional term, the release
by the claimant of all liabilities for Claims against the Indemnified Party or (ii) which otherwise adversely affects the rights of the
Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. No party will be liable to another party for consequential damages under any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Receipt of Disclosure Documents</u>. The Trust and the Adviser acknowledge receipt, at least 48 hours
prior to entering into this Agreement, of a copy of Part 2 of the Subadviser's Form ADV containing certain information concerning
the Subadviser and the nature of its business. The Subadviser will, promptly after making any amendment to its Form ADV, furnish a copy
of such amendment to the Adviser. On an annual basis and upon request, the Subadviser will provide a copy of its audited financial statements,
including balance sheets, for the two most recent fiscal years and, if available, each subsequent fiscal quarter. At the time of providing
such information, the Subadviser shall describe any material adverse change in its financial condition since the date of its latest financial
statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts; Fax Signatures</u>. This Agreement may be executed in any number of counterparts (including
executed counterparts delivered and exchanged by facsimile transmission) with the same effect as if all signing parties had originally
signed the same document, and all counterparts shall be construed together and shall constitute the same instrument. For all purposes,
signatures delivered and exchanged by facsimile transmission shall be binding and effective to the same extent as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Bankruptcy and Related Events</u>. Each of the Adviser and the Subadviser agrees that it will provide
prompt notice to the other in the event that: (i) it makes an assignment for the benefit of creditors, files a voluntary petition in bankruptcy,
or is otherwise adjudged bankrupt or insolvent by a court of competent jurisdiction; or (ii) a material event occurs that could reasonably
be expected to adversely impair its ability to perform this Agreement. The Adviser further agrees that it will provide prompt notice to
the Subadviser in the event that the Trust ceases to be registered as an investment company under the Act.

**[signature page follows]**

---

| | | |
|:---|:---|:---|
| **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley |
|  | Name: | W. Patrick Bradley |
|  | Title: | Executive Vice President, Chief Financial Officer & Treasurer |
| **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

**ACCEPTED:**

**NFJ INVESTMENT GROUP, LLC**

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

---

| | | |
|:---|:---|:---|
| SCHEDULES: | A. | Operational Procedures |
|  | B. | Record Keeping Requirements |
|  | C. | Fee Schedule |
|  | D. | Subadviser Functions |
|  | E. | Form of Sub-Certification |
|  | F. | Designated Series |

---

**<u>SCHEDULE A</u>**

**OPERATIONAL PROCEDURES**

In order to minimize operational problems, it will be necessary for a flow of information to be supplied in a secure manner by Subadviser to the Trust's service providers, including: The Bank of New York Mellon (the "Custodian"), Virtus Fund Services, LLC (the "Fund Administrator"), BNY Mellon Investment Servicing (US) Inc., (the "Accounting Agent"), any Prime Broker to the Series, and all other Counterparties/Brokers as required.

The Subadviser must furnish the Trust's service providers with required daily information as to executed trades in a format and time-frame agreed to by the Subadviser, Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties and designated persons of the Trust. Trade information sent to the Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties must include all necessary data within the required timeframes to allow such parties to perform their obligations to the Designated Series.

The Accounting Agent specifically requires a daily trade blotter with a summary of all trades, in addition to trade feeds, including, if no trades are executed, a report to that effect. Daily information as to executed trades for same-day settlement and future trades must be sent to the Accounting Agent no later than 5:00 p.m. (Eastern Time) on the day of the trade each day the Trust is open for business. All other executed trades must be delivered to the Accounting Agent on trade date +1 by 11:00 a.m. (Eastern Time) to ensure that they are part of the Designated Series' NAV calculation. (Subadviser will be responsible for reimbursement to the Trust for any loss caused by the Subadviser's failure to comply with the requirements of this Schedule A.) On fiscal quarter ends and calendar quarter ends, all trades must be delivered to the Accounting Agent by 4:30 p.m. (Eastern Time) for inclusion in the financial statements of the Designated Series. The data to be sent to the Accounting Agent and/or Fund Administrator will be as agreed by the Subadviser, Fund Administrator, Accounting Agent and designated persons of the Trust and shall include (without limitation) the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Transaction type (e.g., purchase, sale, open, close, put call);

2. Security type (e.g., equity, fixed income, swap, future, option, short, long);

3. Security name;

4. Exchange identifier (e.g., CUSIP, ISIN, Sedol, OCC Symbol) (as applicable);

5. Number of shares and par, original face, contract amount, notional amount;

6. Transaction price per share (clean if possible);

7. Strike price;

8. Aggregate principal amount;

9. Executing broker;

10. Settlement agent;

11. Trade date;

12. Settlement date;

13. Aggregate commission or if a net trade;

14. Interest purchased or sold from interest bearing security;

15. Net proceeds of the transaction;

16. Trade commission reason: best execution, soft dollar or research (to be provided quarterly);

17. Derivative terms;

18. Non-deliverable forward classification (to be provided quarterly);

19. Maturity/expiration date; and

20. Details of margin and collateral movement.

When opening accounts with brokers for, and in the name of, the Trust, the account must be a cash account. No margin accounts are to be opened by the Subadviser in the name of the Trust or any Series except as specifically approved by the Trust and the Fund Administrator. Delivery instructions are as specified by the Custodian. The Custodian will supply the Subadviser daily with a cash availability report via access to the Custodian website, or by email or by facsimile and the Accounting Agent will provide a five-day cash projection. This will normally be done by email or, if email is unavailable, by another form of immediate written communication, so that the Subadviser will know the amount available for investment purposes.

**<u>SCHEDULE B</u>**

**RECORDS TO BE MAINTAINED BY THE SUBADVISER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (Rule 31a-1(b)(5) and (6)) A record of each brokerage order, and all other series purchases and sales,
given by the Subadviser on behalf of the Trust for, or in connection with, the purchase or sale of securities, whether executed or unexecuted.
Such records shall include:

A. The
name of the broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The terms and conditions of the order and of any modifications or cancellations thereof;

C. The
time of entry or cancellation;

D. The
price at which executed;

E. The
time of receipt of a report of execution; and

F. The
name of the person who placed the order on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within ten (10) days after the end of the
quarter, showing specifically the basis or bases upon which the allocation of orders for the purchase and sale of series securities to
named brokers or dealers was effected, and the division of brokerage commissions or other compensation on such purchase and sale orders.
Such record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shall
include the consideration given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The sale of shares of the Trust by brokers or dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The supplying of services or benefits by brokers or dealers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
Trust,

(b) The
Adviser,

(c) The
Subadviser, and

(d) Any
person other than the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any other consideration other than the technical qualifications of the brokers and dealers as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shall show the nature of the services or benefits made available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Shall describe in detail the application of any general or specific formula or other determinant used
in arriving at such allocation of purchase and sale orders and such division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Shall show the name of the person responsible for making the determination of such allocation and such
division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (Rule 31a-1(b)(10)) A record in the form of an appropriate memorandum identifying the person or persons,
committees or groups authorizing the purchase or sale of series securities. Where a committee or group makes an authorization, a record
shall be kept of the names of its members who participate in the authorization. There shall be retained as part of this record: any memorandum,
recommendation or instruction supporting or authorizing the purchase or sale of series securities and such other information as is appropriate
to support the authorization.<sup>\*</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Rule 31a-1(f)) Such accounts, books and other documents as are required to be maintained by registered
investment advisers by rule adopted under Section 204 of the Advisers Act, to the extent such records are necessary or appropriate to
record the Subadviser's transactions for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Records as necessary under Board-approved policies and procedures of the Trust, including without limitation
those related to valuation determinations.

\* Such information might include: current financial information, annual and quarterly reports, press releases, reports by analysts and from brokerage firms (including their recommendations, i.e., buy, sell, hold) or any internal reports or subadviser review.

**<u>SCHEDULE C</u>**

**SUBADVISORY FEE**

For services provided to the Trust, the Adviser will pay to the Subadviser a fee, payable monthly in arrears, equal to 50% of the net advisory fee applicable to the Designated Series, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The total expenses of the Designated Series will be calculated in accordance with the terms of its prospectus,
including application of the gross advisory fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such total expenses will be reduced by the application of any applicable fee waiver and/or expense limitation
agreement, in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The net advisory fee applicable to the Designated Series will then be calculated by subtracting from the
gross advisory fee any amount required to be waived under the applicable fee waiver(s) and/or reimbursed under such applicable expense
limitation agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that the Adviser waives its entire fee and also assumes expenses of the Designated Series
pursuant to an applicable expense limitation agreement, the Subadviser will similarly waive its entire fee and will share in the expense
assumption by contributing 50% of the assumed amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If during the term of this Agreement the Adviser later recaptures some or all of the fees waived or expenses
assumed by the Adviser and the Subadviser together, the Adviser shall pay to the Subadviser a pro rata amount of the fee(s)/expense(s)
recaptured that is attributable to the Subadviser's portion of the original waiver/assumed expense.

**<u>SCHEDULE D</u>**

**SUBADVISER FUNCTIONS**

With respect to managing the investment and reinvestment of the Designated Series' assets, the Subadviser shall provide, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An investment program for the Designated Series consistent with its investment objectives based upon the
development, review and adjustment of buy/sell strategies approved from time to time by the Board and the Adviser in paragraph 3 of this
Subadvisory Agreement and implementation of that program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Periodic reports, on at least a quarterly basis, in form and substance acceptable to the Adviser, with
respect to: i) compliance with the Code of Ethics and the Trust's code of ethics; ii) compliance with procedures adopted from time
to time by the Board relative to securities eligible for resale under Rule 144A under the Securities Act of 1933, as amended; iii) diversification
of Designated Series assets in accordance with the then prevailing Prospectus and Statement of Additional Information pertaining to the
Designated Series and governing laws, regulations, rules and orders; iv) compliance with governing restrictions relating to the fair valuation
of securities for which market quotations are not readily available or considered "illiquid" for the purposes of complying
with the Designated Series' limitation on acquisition of illiquid securities; v) any and all other reports reasonably requested
in accordance with or described in this Agreement; vi) the implementation of the Designated Series' investment program, including,
without limitation, analysis of Designated Series performance; vii) compliance with the Investment Guidelines; viii) description of material
changes in policies or procedures; and ix) description of any significant firm related developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after filing with the SEC an amendment to its Form ADV, a copy of such amendment to the Adviser
and the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Attendance by appropriate representatives of the Subadviser at meetings requested by the Adviser or Board
at such time(s) and location(s) as reasonably requested by the Adviser or Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice to the Board and the Adviser of the occurrence of any event which would disqualify the Subadviser
from serving as an investment adviser of an investment company pursuant to Section 9(a) of the Act or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable assistance in the valuation of securities including the participation of appropriate representatives
at fair valuation committee meetings.

**<u>SCHEDULE E</u>**

**FORM OF SUB-CERTIFICATION**

To:

Re: Subadviser's Form N-CSR Certification for the [Name of Designated Series]. <br>

From: [Name of Subadviser]

Representations in support of Investment Company Act Rule 30a-2 certifications of Form N-CSR.

[Name of Designated Series].

In connection with your certification responsibility under Rule 30a-2 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, I have reviewed the following information presented in the schedule of investments for the period ended [Date of Reporting Period] (the "Report") which forms part of the N-CSR, as applicable, for the Trust.

Schedule of Investments

Our organization has designed, implemented and maintained internal controls and procedures, designed for the purpose of ensuring the accuracy and completeness of relevant portfolio trade data transmitted to those responsible for the preparation of the Schedule of Investments. As of the date of this certification there have been no material modifications to these internal controls and procedures.

In addition, our organization has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such internal controls and procedures to ensure that material information is made known to the
appropriate groups responsible for servicing the above-mentioned mutual fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed and implemented controls which ensure that all transactions provided to the fund's custodians/prime
broker and accounting agent ("vendors") have been delivered in a secure manner by authorized persons, and that access to the
fund's records maintained by the fund's vendors is restricted to authorized persons of our firm or, if applicable, any third
party administrator utilized by our firm. Such controls include review of the authorized persons at least annually and prompt communication
of any changes to authorized persons to the fund's vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of our internal controls and procedures, as of a date within 90 days prior
to the date of this certification and we have concluded that such controls and procedures are effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In addition, to the best of my knowledge, there has been no fraud, whether or not material, that involves
our organization's management or other employees who have a significant role in our organization's control and procedures
as they relate to our duties as subadviser to the Designated Series.

I have read the draft of the Report which I understand to be current as of [Date of Reporting Period] and based on my knowledge, such draft of the Report, including the Fund Summary and Asset Allocations (as applicable), does not, with respect to the Designated Series, contain any untrue statement of a material fact or omit to state a material fact necessary to make the information contained therein, in light of the circumstances under which such information is presented, not misleading with respect to the period covered by such draft Report.

I have disclosed, based on my most recent evaluation, to the Designated Series' Chief Accounting Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant changes, deficiencies and material weakness, if any, in the design or operation of the
Subadviser's internal controls and procedures which could adversely affect the Registrant's ability to

record, process, summarize and report financial data with respect to the Designated Series in a timely fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves the Subadviser's management or other employees
who have a significant role in the Subadviser's internal controls and procedures for financial reporting.

I certify that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Subadviser's Portfolio Manager(s) has/have complied with the restrictions and reporting requirements
of the Code of Ethics (the "Code"). The term Portfolio Manager is as defined in the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subadviser has complied with the Prospectus and Statement of Additional Information of the Designated
Series and the Policies and Procedures of the Designated Series as adopted by the Designated Series Board of Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I have no knowledge of any compliance violations except as disclosed in writing to the Virtus Compliance
Department by me or by the Subadviser's compliance administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Subadviser has complied with the rules and regulations of the 33 Act and 40 Act, and such other regulations
as may apply to the extent those rules and regulations pertain to the responsibilities of the Subadviser with respect to the Designated
Series as outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Since the submission of our most recent certification there have not been any divestments of securities
of issuers that conduct or have direct investments in business operations in Iran or Sudan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The subadviser has disclosed to the Adviser or the Designated Series any holdings required to be disclosed
under the Iran Threat Reduction and Syria Human Rights Act of 2012, the Comprehensive Iran Sanctions, Accountability, and Divestment Act
of 2010, the Iran Sanctions Act of 1996, as Amended and Executive Orders 13224, and 13382.

This certification relates solely to the Designated Series named above and may not be relied upon by any other fund or entity.

The Subadviser does not maintain the official books and records of the above Designated Series. The Subadviser's records are based on its own portfolio management system, a record-keeping system that is not intended to serve as the Designated Series official accounting system. The Subadviser is not responsible for the preparation of the Report.

---

| | |
|:---|:---|
| [Name of Subadviser] | Date |
| [Name of Authorized Signer] |  |
| [Title of Authorized Signer] |  |

---

**<u>SCHEDULE F</u>**

**DESIGNATED SERIES**

Virtus NFJ Global Sustainability Fund

## Ex-99.(D)(5)

**Exhibit d.5**

**VIRTUS STATEGY TRUST**

**Virtus Newfleet Short Duration High Income Fund**

**<u>SUBADVISORY AGREEMENT</u>**

July 25, 2022

Virtus Fixed Income Advisers, LLC

One Financial Plaza

Hartford, CT 06103

---

| | |
|:---|:---|
| **RE:** | **Subadvisory Agreement** |

---

Ladies and Gentlemen:

Virtus Strategy Trust (the "Trust") is an open-end investment company of the series type registered under the Investment Company Act of 1940, as amended (the "Act"), and is subject to the rules and regulations promulgated thereunder. The shares of the Trust are offered or may be offered in several series (sometimes hereafter referred to as the "Series"), including Virtus Newfleet Short Duration High Income Fund.

Virtus Investment Advisers, Inc. (the "Adviser") evaluates and recommends series advisers for the Series and is responsible for the day-to-day management of the Series.

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment as a Subadviser</u>.
 The
 Adviser,
 being
 duly
 authorized,
 hereby
 appoints
 Virtus
 Fixed
 Income
 Advisers,
 LLC
 (the
 "Subadviser")
 as
 a
 discretionary
 series
 adviser
 to
 invest
 and
 reinvest
 the
 assets
 of
 the
 Series
 designated
 by
 the
 Adviser
 as
 set
 forth
 on
 Schedule
 F
 attached
 hereto
 (the
 "Designated
 Series")
 on
 the
 terms
 and
 conditions
 set
 forth
 herein.
 The
 services
 of
 the
 Subadviser
 hereunder
 are
 not
 to
 be
 deemed
 exclusive;
 the
 Subadviser
 may
 render
 services
 to
 others
 and
 engage
 in
 other
 activities
 that
 do
 not
 conflict
 in
 any
 material
 manner
 with
 the
 Subadviser's
 performance
 hereunder.
 The
 Adviser
 and
 the
 Trust
 understand
 and
 agree
 that
 the
 Subadviser
 may
 do
 business
 as
 Newfleet
 Asset
 Management
 for
 any
 or
 all
 of
 the
 term
 of
 this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Acceptance of Appointment; Standard of Performance</u>.
 The
 Subadviser
 accepts
 its
 appointment
 as
 a
 discretionary
 series
 adviser
 of
 the
 Designated
 Series
 and
 agrees,
 subject
 to
 the
 oversight
 of
 the
 Board
 of
 Trustees
 of
 the
 Trust
 (the
 "Board")
 and
 the
 Adviser,
 to
 use
 its
 best
 professional
 judgment
 to
 make
 investment
 decisions
 for
 the
 Designated
 Series
 in
 accordance
 with
 the
 provisions
 of
 this
 Agreement
 and
 as
 set
 forth
 in
 Schedule
 D
 attached
 hereto
 and
 made
 a
 part
 hereof.
 The
 Subadviser
 shall
 for
 all
 purposes
 herein
 be
 deemed
 to
 be
 an
 independent
 contractor
 and
 shall,
 except
 as
 expressly
 provided
 or
 authorized
 (whether
 herein
 or
 otherwise),
 have
 no
 authority
 or
 obligation
 to
 act
 for
 or
 represent
 the
 Adviser,
 the
 Trust
 or
 the
 Series
 in
 any
 way.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services of Subadviser</u>.
 In
 providing
 management
 services
 to
 the
 Designated
 Series,
 the
 Subadviser
 shall
 be
 subject
 to
 the
 investment
 objectives,
 policies
 and
 restrictions
 of
 the
 Trust
 as
 they
 apply
 to
 the
 Designated
 Series
 and
 as
 set
 forth
 in
 the
 Trust's
 then
 current
 prospectus
 ("Prospectus")
 and
 statement
 of
 additional
 information
 ("Statement
 of
 Additional
 Information")
 filed
 with
 the
 Securities
 and
 Exchange
 Commission
 (the
 "SEC")
 as
 part
 of
 the
 Trust's
 registration
 statement
 (the
 "Registration
 Statement"),
 as
 may
 be
 periodically
 amended
 and
 provided
 to
 the
 Subadviser
 by
 the
 Adviser,
 and
 to
 the
 investment
 restrictions
 set
 forth
 in
 the
 Act
 and
 the
 Rules
 thereunder,
 to
 the
 supervision
 and
 control
 of
 the
 Board,
 and
 to
 instructions
 from
 the
 Adviser.
 The
 Subadviser
 shall
 not,
 without
 the
 Trust's
 prior
 written
 approval,
 effect
 any
 transactions
 that
 would
 cause
 the
 Designated
 Series
 at
 the
 time
 of
 the
 transaction
 to
 be
 out
 of
 compliance
 with
 any
 of
 such
 restrictions
 or
 policies.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transaction Procedures</u>.
 All
 series
 transactions
 for
 the
 Designated
 Series
 shall
 be
 consummated
 by
 payment
 to,
 or
 delivery
 by,
 the
 custodian(s)
 from
 time
 to
 time
 designated
 by
 the
 Trust
 (the
 "Custodian"),
 or
 such
 depositories
 or
 agents
 as
 may
 be
 designated
 by
 the
 Custodian
 in
 writing,
 of
 all
 cash
 and/or
 securities
 due
 to

or from the Designated Series. The Subadviser shall not have possession or custody of such cash and/or securities or any responsibility or liability with respect to such custody. The Subadviser shall advise the Custodian and confirm in writing to the Trust all investment orders for the Designated Series placed by it with brokers and dealers at the time and in the manner set forth in Schedule A hereto (as amended from time to time). The Trust shall issue to the Custodian such instructions as may be appropriate in connection with the settlement of any transaction initiated by the Subadviser. The Trust shall be responsible for all custodial arrangements and the payment of all custodial charges and fees, and, upon giving proper instructions to the Custodian, the Subadviser shall have no responsibility or liability with respect to custodial arrangements or the acts, omissions or other conduct of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Allocation of Brokerage</u>.
 The
 Subadviser
 shall
 have
 authority
 and
 discretion
 to
 select
 brokers
 and
 dealers
 to
 execute
 Designated
 Series
 transactions
 initiated
 by
 the
 Subadviser,
 and
 to
 select
 the
 markets
 on
 or
 in
 which
 the
 transactions
 will
 be
 executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In
 placing
 orders
 for
 the
 sale
 and
 purchase
 of
 Designated
 Series
 securities
 for
 the
 Trust,
 the
 Subadviser's
 primary
 responsibility
 shall
 be
 to
 seek
 the
 best
 execution
 of
 orders
 at
 the
 most
 favorable
 prices.
 However,
 this
 responsibility
 shall
 not
 obligate
 the
 Subadviser
 to
 solicit
 competitive
 bids
 for
 each
 transaction
 or
 to
 seek
 the
 lowest
 available
 commission
 cost
 to
 the
 Trust,
 as
 long
 as
 the
 Subadviser
 reasonably
 believes
 that
 the
 broker
 or
 dealer
 selected
 by
 it
 can
 be
 expected
 to
 obtain
 a
 "best
 execution"
 market
 price
 on
 the
 particular
 transaction
 and
 determines
 in
 good
 faith
 that
 the
 commission
 cost
 is
 reasonable
 in
 relation
 to
 the
 value
 of
 the
 brokerage
 and
 research
 services
 (as
 defined
 in
 Section
 28(e)(3)
 of
 the
 Securities
 Exchange
 Act
 of
 1934,
 as
 amended)
 provided
 by
 such
 broker
 or
 dealer
 to
 the
 Subadviser,
 viewed
 in
 terms
 of
 either
 that
 particular
 transaction
 or
 of
 the
 Subadviser's
 overall
 responsibilities
 with
 respect
 to
 its
 clients,
 including
 the
 Trust,
 as
 to
 which
 the
 Subadviser
 exercises
 investment
 discretion,
 notwithstanding
 that
 the
 Trust
 may
 not
 be
 the
 direct
 or
 exclusive
 beneficiary
 of
 any
 such
 services
 or
 that
 another
 broker
 may
 be
 willing
 to
 charge
 the
 Trust
 a
 lower
 commission
 on
 the
 particular
 transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Subadviser
 may
 manage
 other
 portfolios
 and
 expects
 that
 the
 Trust
 and
 other
 portfolios
 the
 Subadviser
 manages
 will,
 from
 time
 to
 time,
 purchase
 or
 sell
 the
 same
 securities.
 The
 Subadviser
 may
 aggregate
 orders
 for
 the
 purchase
 or
 sale
 of
 securities
 on
 behalf
 of
 the
 Designated
 Series
 with
 orders
 on
 behalf
 of
 other
 portfolios
 the
 Subadviser
 manages.
 Securities
 purchased
 or
 proceeds
 of
 securities
 sold
 through
 aggregated
 orders,
 as
 well
 as
 expenses
 incurred
 in
 the
 transaction,
 shall
 be
 allocated
 to
 the
 account
 of
 each
 portfolio
 managed
 by
 the
 Subadviser
 that
 bought
 or
 sold
 such
 securities
 in
 a
 manner
 considered
 by
 the
 Subadviser
 to
 be
 equitable
 and
 consistent
 with
 the
 Subadviser's
 fiduciary
 obligations
 in
 respect
 of
 the
 Designated
 Series
 and
 to
 such
 other
 accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The
 Subadviser
 shall
 not
 execute
 any
 transactions
 for
 the
 Designated
 Series
 with
 a
 broker
 or
 dealer
 that
 is
 an
 "affiliated
 person"
 (as
 defined
 in
 the
 Act)
 of
 (i)
 the
 Designated
 Series;
 (ii)
 another
 Series;
 (iii)
 the
 Adviser;
 (iv)
 the
 Subadviser
 or
 any
 other
 subadviser
 to
 the
 Designated
 Series;
 (v)
 a
 principal
 underwriter
 of
 the
 Trust's
 shares;
 or
 (vi)
 any
 other
 affiliated
 person
 of
 the
 Designated
 Series,
 in
 each
 case,
 unless
 such
 transactions
 are
 permitted
 by
 applicable
 law
 or
 regulation
 and
 carried
 out
 in
 compliance
 with
 any
 applicable
 policies
 and
 procedures
 of
 the
 Trust.
 The
 Trust
 shall
 provide
 the
 Subadviser
 with
 a
 list
 of
 brokers
 and
 dealers
 that
 are
 "affiliated
 persons"
 of
 the
 Trust,
 the
 Adviser
 or
 the
 principal
 underwriter,
 and
 applicable
 policies
 and
 procedures.
 Upon
 the
 request
 of
 the
 Adviser,
 the
 Subadviser
 shall
 promptly,
 and
 in
 any
 event
 within
 three
 business
 days
 of
 a
 request,
 indicate
 whether
 any
 entity
 identified
 by
 the
 Adviser
 in
 such
 request
 is
 an
 "affiliated
 person,"
 as
 such
 term
 is
 defined
 in
 the
 Act,
 of
 (i)
 the
 Subadviser
 or
 (ii)
 any
 affiliated
 person
 of
 the
 Subadviser,
 subject
 in
 each
 case
 to
 any
 confidentiality
 requirements
 applicable
 to
 the
 Subadviser
 and/or
 its
 affiliates.
 Further,
 the
 Subadviser
 shall
 provide
 the
 Adviser
 with
 a
 list
 of
 (x)
 each
 broker-dealer
 entity
 that
 is
 an
 "affiliated
 person,"
 as
 such
 term
 is
 defined
 in
 the
 Act,
 of
 the
 Subadviser
 and
 (y)
 each
 affiliated
 person
 of
 the
 Subadviser
 that
 has
 outstanding
 publicly-issued
 debt
 or
 equity.
 Each
 of
 the
 Adviser
 and
 the
 Subadviser
 agrees
 promptly
 to
 update
 such
 list(s)
 whenever
 the
 Adviser
 or
 the
 Subadviser
 becomes
 aware
 of
 any
 changes
 that
 should
 be
 added
 to
 or
 deleted
 from
 such
 list
 of
 affiliated
 persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Consistent
 with
 its
 fiduciary
 obligations
 to
 the
 Trust
 in
 respect
 of
 the
 Designated
 Series
 and
 the
 requirements
 of
 best
 price
 and
 execution,
 the
 Subadviser
 may,
 under
 certain
 circumstances,
 arrange
 to
 have
 purchase
 and
 sale
 transactions
 effected
 directly
 between
 the
 Designated
 Series
 and
 another
 account
 managed
 by
 the
 Subadviser
 ("cross
 transactions"),
 provided
 that
 such
 transactions
 are
 carried
 out
 in
 accordance
 with
 applicable
 law
 or
 regulation
 and
 any
 applicable
 policies
 and
 procedures
 of
 the
 Trust.
 The
 Trust
 shall
 provide
 the
 Subadviser
 with
 applicable
 policies
 and
 procedures.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Proxies and Other Shareholder Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Unless
 the
 Adviser
 or
 the
 Trust
 gives
 the
 Subadviser
 written
 instructions
 to
 the
 contrary,
 the
 Subadviser,
 or
 a
 third
 party
 designee
 acting
 under
 the
 authority
 and
 supervision
 of
 the
 Subadviser,
 shall
 review
 all
 proxy
 solicitation
 materials
 and
 be
 responsible
 for
 voting
 and
 handling
 all
 proxies
 in
 relation
 to
 the
 assets
 of
 the
 Designated
 Series.
 Unless
 the
 Adviser
 or
 the
 Trust
 gives
 the
 Subadviser
 written
 instructions
 to
 the
 contrary,
 provided
 that
 the
 Adviser
 has
 reviewed
 the
 Subadviser's
 proxy
 voting
 procedures
 then
 in
 effect
 and
 determined
 them
 to
 comply
 with
 the
 requirements
 of
 the
 Trust's
 proxy
 voting
 policy,
 the
 Subadviser
 will,
 in
 compliance
 with
 the
 Subadviser's
 proxy
 voting
 procedures
 then
 in
 effect,
 vote
 or
 abstain
 from
 voting,
 all
 proxies
 solicited
 by
 or
 with
 respect
 to
 the
 issuers
 of
 securities
 in
 which
 assets
 of
 the
 Designated
 Series
 may
 be
 invested.
 The
 Adviser
 shall
 cause
 the
 Custodian,
 the
 Administrator
 or
 another
 party,
 to
 forward
 promptly
 to
 the
 Subadviser
 all
 proxies
 upon
 receipt,
 so
 as
 to
 afford
 the
 Subadviser
 a
 reasonable
 amount
 of
 time
 in
 which
 to
 determine
 how
 to
 vote
 such
 proxies.
 The
 Subadviser
 agrees
 to
 provide
 the
 Adviser
 in
 a
 timely
 manner
 with
 any
 changes
 to
 the
 Subadviser's
 proxy
 voting
 procedures.
 The
 Subadviser
 further
 agrees
 to
 provide
 the
 Adviser
 in
 a
 timely
 manner
 with
 a
 record
 of
 votes
 cast
 containing
 all
 of
 the
 voting
 information
 required
 by
 Form
 N-PX
 in
 an
 electronic
 format
 to
 enable
 the
 Trust
 to
 file
 Form
 N-PX
 as
 required
 by
 Rule
 30b1-4
 under
 the
 Act.
 The
 Subadviser
 shall
 provide
 disclosure
 regarding
 its
 proxy
 voting
 policies
 and
 procedures
 in
 accordance
 with
 the
 requirements
 of
 Form
 N-1A
 for
 inclusion
 in
 the
 Registration
 Statement
 of
 the
 Trust.
 During
 any
 annual
 period
 in
 which
 the
 Subadviser
 has
 voted
 proxies
 for
 the
 Trust,
 the
 Subadviser
 shall,
 as
 may
 reasonably
 be
 requested
 by
 the
 Adviser,
 certify
 as
 to
 its
 compliance
 with
 its
 proxy
 voting
 policies
 and
 procedures
 and
 applicable
 federal
 statutes
 and
 regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Subadviser
 is
 authorized
 to
 deal
 with
 reorganizations,
 exchange
 offers
 and
 other
 voluntary
 corporate
 actions
 with
 respect
 to
 securities
 held
 in
 the
 Designated
 Series
 in
 such
 manner
 as
 the
 Subadviser
 deems
 advisable,
 unless
 the
 Trust
 or
 the
 Adviser
 otherwise
 specifically
 directs
 in
 writing. It
 is
 acknowledged
 and
 agreed
 that
 the
 Subadviser
 shall
 not
 be
 responsible
 for
 the
 filing
 of
 claims
 (or
 otherwise
 causing
 the
 Trust
 to
 participate)
 in
 class
 action
 settlements
 or
 similar
 proceedings
 in
 which
 shareholders
 may
 participate
 related
 to
 securities
 currently
 or
 previously
 associated
 with
 the
 Designated
 Series. With
 the
 Adviser's
 approval,
 on
 a
 case-by-case
 basis
 the
 Subadviser
 may
 obtain
 the
 authority
 and
 take
 on
 the
 responsibility
 to:
 (i)
 identify,
 evaluate
 and
 pursue
 legal
 claims,
 including
 commencing
 or
 defending
 suits,
 affecting
 the
 securities
 held
 at
 any
 time
 in
 the
 Designated
 Series,
 including
 claims
 in
 bankruptcy,
 class
 action
 securities
 litigation
 and
 other
 litigation;
 (ii)
 participate
 in
 such
 litigation
 or
 related
 proceedings
 with
 respect
 to
 such
 securities
 as
 the
 Subadviser
 deems
 appropriate
 to
 preserve
 or
 enhance
 the
 value
 of
 the Designated Series,
 including
 filing
 proofs
 of
 claim
 and
 related
 documents
 and
 serving
 as
 "lead
 plaintiff"
 in
 class
 action
 lawsuits;
 (iii)
 exercise
 generally
 any
 of
 the
 powers
 of
 an
 owner
 with
 respect
 to
 the
 supervision
 and
 management
 of
 such
 rights
 or
 claims,
 including
 the
 settlement,
 compromise
 or
 submission
 to
 arbitration
 of
 any
 claims,
 the
 exercise
 of
 which
 the
 Subadviser
 deems
 to
 be
 in
 the
 best
 interest
 of
 the Designated Series
 or
 required
 by
 applicable
 law,
 including
 ERISA,
 and
 (iv)
 employ
 suitable
 agents,
 including
 legal
 counsel,
 and
 to
 pay
 their
 reasonable
 fees,
 expenses
 and
 related
 costs
 from
 the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Prohibited Conduct</u>.
 In
 accordance
 with
 Rule
 12d3-1
 and
 Rule
 17a-10
 under
 the
 1940
 Act
 and
 any
 other
 applicable
 law
 or
 regulation,
 the
 Subadviser's
 responsibility
 regarding
 investment
 advice
 hereunder
 is
 limited
 to
 the
 Designated
 Series,
 and
 the
 Subadviser
 will
 not
 consult
 with
 any
 other
 investment
 advisory
 firm
 that
 provides
 investment
 advisory
 services
 to
 the
 Trust
 or
 any
 other
 investment
 company
 sponsored
 by
 Virtus
 Investment
 Partners,
 Inc.
 or
 its
 affiliates
 regarding transactions in securities or
other assets for the Trust. The Trust shall provide the Subadviser with a list of investment companies sponsored by Virtus Investment
Partners, Inc. and its affiliates, and the Subadviser shall be in breach of the foregoing provision only if the

investment company is included in such a list provided to the Subadviser prior to such prohibited action. The Subadviser, and its affiliates and agents, shall refrain from making any written or oral statements concerning the Designated Series, the Trust, any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates, and any substantially similar products, that are reasonably likely to mislead investors regarding either (i) the services rendered by the Subadviser to the Designated Series or the Trust, or (ii) the Designated Series, including without limitation with respect to the investment strategies and/or risks, and/or the performance thereof. In addition, the Subadviser shall not, without the prior written consent of the Trust and the Adviser, delegate any obligation assumed pursuant to this Agreement to any affiliated or unaffiliated third party. The parties acknowledge and agree that the Subadviser may, in its discretion, utilize personnel employed by affiliates of the Subadviser to perform services pursuant to this Agreement by way of a "participating affiliate" agreement in accordance with, and to the extent permitted by, the Act and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including the published interpretations thereof by the SEC or its staff. Such participating affiliate agreement shall subject the personnel providing such services to the Subadviser's compliance and other programs with respect to their activities on behalf of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Subadviser assumes full responsibility for all actions, and any failure to act, by each person utilized by the Subadviser to perform services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Information and Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Subadviser
 shall
 keep
 the
 Trust
 and
 the
 Adviser
 informed
 of
 developments
 relating
 to
 its
 duties
 as
 Subadviser
 of
 which
 the
 Subadviser
 has,
 or
 should
 have,
 knowledge
 that
 would
 materially
 affect
 the
 Designated
 Series.
 In
 this
 regard,
 the
 Subadviser
 shall
 provide
 the
 Trust,
 the
 Adviser
 and
 their
 respective
 officers
 with
 such
 periodic
 reports
 concerning
 the
 obligations
 the
 Subadviser
 has
 assumed
 under
 this
 Agreement
 as
 the
 Trust
 and
 the
 Adviser
 may
 from
 time
 to
 time
 reasonably
 request.
 In
 addition,
 prior
 to
 each
 meeting
 of
 the
 Board,
 the
 Subadviser
 shall
 provide
 the
 Adviser
 and
 the
 Board
 with
 reports
 regarding
 the
 Subadviser's
 management
 of
 the
 Designated
 Series
 during
 the
 most
 recently
 completed
 quarter,
 which
 reports:
 (i)
 shall
 include
 Subadviser's
 representation
 that
 its
 performance
 of
 its
 investment
 management
 duties
 hereunder
 is
 in
 compliance
 with
 the
 Designated
 Series'
 investment
 objectives
 and
 practices,
 the
 Act
 and
 applicable
 rules
 and
 regulations
 under
 the
 Act,
 and
 the
 diversification
 and
 minimum
 "good
 income"
 requirements
 of
 Subchapter
 M
 under
 the
 Internal
 Revenue
 Code
 of
 1986,
 as
 amended,
 and
 (ii)
 otherwise
 shall
 be
 in
 such
 form
 as
 may
 be
 reasonably
 required
 by
 the
 Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each
 of
 the
 Adviser
 and
 the
 Subadviser
 shall
 provide
 the
 other
 party
 with
 a
 list,
 to
 the
 best
 of
 the
 Adviser's
 or
 the
 Subadviser's
 respective
 knowledge,
 of
 each
 affiliated
 person
 (and
 any
 affiliated
 person
 of
 such
 an
 affiliated
 person)
 of
 the
 Adviser
 or
 the
 Subadviser,
 as
 the
 case
 may
 be,
 and
 each
 of
 the
 Adviser
 and
 Subadviser
 agrees
 promptly
 to
 update
 such
 list
 whenever
 the
 Adviser
 or
 the
 Subadviser
 becomes
 aware
 of
 any
 changes
 that
 should
 be
 added
 to
 or
 deleted
 from
 the
 list
 of
 affiliated
 persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The
 Subadviser
 shall
 also
 provide
 the
 Adviser
 with
 any
 information
 reasonably
 requested
 by
 the
 Adviser
 regarding
 its
 management
 of
 the
 Designated
 Series
 required
 for
 any
 shareholder
 report,
 amended
 Registration
 Statement,
 or
 Prospectus
 supplement
 to
 be
 filed
 by
 the
 Trust
 with
 the
 SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The
 Subadviser
 shall
 promptly
 notify
 the
 Adviser
 and
 the
 Trust
 in
 the
 event
 that
 any
 of
 the
 Subadviser's
 employees
 or
 contractors
 raise
 any
 issues
 concerning
 any
 actual
 or
 potential
 material
 violation
 of
 any
 law,
 regulation
 or
 internal
 policy
 of
 the
 Subadviser,
 in
 each
 case
 actually
 or
 potentially
 affecting
 the
 Designated
 Series.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Fees for Services</u>.
 The
 compensation
 of
 the
 Subadviser
 for
 its
 services
 under
 this
 Agreement
 shall
 be
 calculated
 and
 paid
 by
 the
 Adviser
 in
 accordance
 with
 the
 attached
 Schedule
 C.
 Pursuant
 to
 the
 Investment
 Advisory
 Agreement
 between
 the
 Trust
 and
 the
 Adviser,
 the
 Adviser
 is
 solely
 responsible
 for
 the
 payment
 of
 fees
 to
 the
 Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. Absent
 the
 Subadviser's
 breach
 of
 this
 Agreement
 or
 the
 willful
 misconduct,
 bad
 faith,
 gross
 negligence,
 or
 reckless
 disregard
 of
 the
 obligations
 or
 duties
 hereunder
 on
 the
 part
 of
 the
 Subadviser,

or its officers, directors, partners, agents, employees and controlling persons, the Subadviser shall not be liable for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any position; *provided, however,* that the Subadviser shall be responsible for, and shall indemnify and hold the Trust and the Adviser and each of their respective directors or trustees, members, officers, employees and shareholders, and each person, if any, who controls the Trust or the Adviser within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act"), harmless against, any and all Losses (as defined below) arising out of or resulting from a "Trade Error" (as defined in the compliance policies and procedures of the Trust), as the same may be amended from time to time) caused by the negligent action or negligent omission of the Subadviser or its agent. The Adviser agrees to provide prior written notice to the Subadviser of any material changes to the definition of Trade Error becoming effective with respect to the Designated Series unless, in the reasonable discretion of the Adviser, such change must become effective earlier due to any applicable law, rule, regulation or court order. It is acknowledged and agreed that any Trade Error that results in a gain to the Designated Series shall inure to the benefit of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Designated Series is a third party beneficiary of the indemnity granted in this Section 10, and the indemnity is intended to cover claims by the Designated Series, the Trust (on behalf of the Designated Series), or the Adviser against the Subadviser for recovery pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Confidentiality</u>.
 Subject
 to
 the
 duty
 of
 the
 Subadviser
 and
 the
 Trust
 to
 comply
 with
 applicable
 law,
 including
 any
 demand
 of
 any
 regulatory
 or
 taxing
 authority
 having
 jurisdiction,
 the
 parties
 hereto
 shall
 treat
 as
 confidential
 all
 information
 pertaining
 to
 the
 Designated
 Series
 and
 the
 actions
 of
 the
 Subadviser
 and
 the
 Trust
 in
 respect
 thereof. Notwithstanding
 the
 foregoing,
 the
 Trust
 and
 the
 Adviser
 agree
 that
 the
 Subadviser
 may
 (i)
 disclose
 in
 marketing
 materials
 and
 similar
 communications
 that
 the
 Subadviser
 has
 been
 engaged
 to
 manage
 assets
 of
 the
 Designated
 Series
 pursuant
 to
 this
 Agreement,
 and
 (ii)
 include
 performance
 statistics
 regarding the
 Designated Series
 in
 composite
 performance
 statistics
 regarding
 one
 or
 more
 groups
 of
 Subadviser's
 clients
 published
 or
 included
 in
 any
 of
 the
 foregoing
 communications,
 provided
 that
 the
 Subadviser
 does
 not
 identify
 any
 performance
 statistics
 as
 relating
 specifically
 to
 the
 Designated
 Series.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>.
 This
 Agreement
 shall
 terminate
 automatically
 in
 the
 event
 of
 its
 assignment,
 as
 that
 term
 is
 defined
 in
 Section
 2(a)(4)
 of
 the
 Act.
 The
 Subadviser
 shall
 notify
 the
 Trust
 and
 the
 Adviser
 in
 writing
 sufficiently
 in
 advance
 of
 any
 proposed
 change
 of
 control,
 as
 defined
 in
 Section
 2(a)(9)
 of
 the
 Act,
 as
 will
 enable
 the
 Trust
 to
 consider
 whether
 an
 assignment
 as
 defined
 in
 Section
 2(a)(4)
 of
 the
 Act
 will
 occur,
 and
 to
 take
 the
 steps
 necessary
 to
 enter
 into
 a
 new
 contract
 with
 the
 Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Representations, Warranties and Agreements of the Subadviser</u>.
 The
 Subadviser
 represents,
 warrants
 and
 agrees
 that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It
 is
 duly
 organized,
 validly
 existing,
 and
 in
 good
 standing
 under
 the
 laws
 of
 the
 jurisdiction
 of
 its
 organization,
 and
 is
 qualified
 to
 do
 business
 in
 each
 jurisdiction
 in
 which
 failure
 to
 be
 so
 qualified
 would
 reasonably
 be
 expected
 to
 have
 a
 material
 adverse
 effect
 upon
 it.
 It
 (i)
 is
 registered
 as
 an
 "investment
 adviser"
 under
 the
 Investment
 Advisers
 Act
 of
 1940,
 as
 amended
 ("Advisers
 Act")
 and
 will
 continue
 to
 be
 so
 registered
 for
 so
 long
 as
 this
 Agreement
 remains
 in
 effect;
 (ii)
 is
 not
 prohibited
 by
 the
 Act
 or
 the
 Advisers
 Act
 from
 performing
 the
 services
 contemplated
 by
 this
 Agreement;
 provided,
 however,
 that
 the
 Subadviser
 makes
 no
 representation
 or
 warranty
 with
 regard
 to
 the
 approval
 of
 this
 Agreement
 by
 the
 Board
 under
 Section

 of
 the
 Act;
 (iii)
 has
 appointed
 a
 Chief
 Compliance
 Officer
 under
 Rule
 206(4)-7
 under
 the
 Advisers
 Act;
 (iv)
 has
 adopted
 written
 policies
 and
 procedures
 that
 are
 reasonably
 designed
 to
 prevent
 violations
 of
 the
 Advisers
 Act
 from
 occurring,
 and
 correct
 promptly
 any
 violations
 that
 have
 occurred,
 and
 will
 provide
 notice
 promptly
 to
 the
 Adviser
 of
 any
 material
 violations
 relating
 to
 the
 Trust;
 (v)
 has
 materially
 met
 and
 will
 seek
 to
 continue
 to
 meet
 for
 so
 long
 as
 this
 Agreement
 remains
 in
 effect,
 any
 other
 applicable
 federal
 or
 state
 requirements,
 or
 the
 applicable
 requirements
 of
 any
 regulatory
 or
 industry
 self-regulatory
 agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. It
 is
 either
 registered
 as
 a
 commodity
 trading
 advisor
 or
 duly
 exempt
 from
 such
 registration
 with
 the
 U.S.
 Commodity
 Futures
 Trading
 Commission
 ("CFTC"),
 and
 it
 will
 maintain
 such
 registration
 or
 exemption
 continuously
 during
 the
 term
 of
 this
 Agreement
 or,
 alternatively,
 will
 become
 a
 commodity
 trading
 advisor
 duly
 registered
 with
 the
 CFTC
 and
 will
 be
 a
 member
 in
 good
 standing
 with
 the
 National
 Futures
 Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It
 will
 maintain,
 keep
 current
 and
 preserve
 on
 behalf
 of
 the
 Trust,
 records
 in
 the
 manner
 required
 or
 permitted
 by
 the
 Act
 and
 the
 Rules
 thereunder
 including
 the
 records
 identified
 in
 Schedule
 B
 (as
 Schedule
 B
 may
 be
 amended
 from
 time
 to
 time).
 The
 Subadviser
 agrees
 that
 such
 records
 are
 the
 property
 of
 the
 Trust,
 and
 shall
 be
 surrendered
 to
 the
 Trust
 or
 to
 the
 Adviser
 as
 agent
 of
 the
 Trust
 promptly
 upon
 request
 of
 either.
 The
 Trust
 acknowledges
 that
 the
 Subadviser
 may
 retain
 copies
 of
 all
 records
 required
 to
 meet
 the
 record
 retention
 requirements
 imposed
 by
 law
 and
 regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It
 shall
 maintain
 a
 written
 code
 of
 ethics
 (the
 "Code
 of
 Ethics")
 complying
 with
 the
 requirements
 of
 Rule
 204A-1
 under
 the
 Advisers
 Act
 and
 Rule
 17j-1
 under
 the
 Act
 and
 shall
 provide
 the
 Trust
 and
 the
 Adviser
 with
 a
 copy
 of
 the
 Code
 of
 Ethics
 and
 evidence
 of
 its
 adoption.
 It
 shall
 institute
 procedures
 reasonably
 necessary
 to
 prevent
 Access
 Persons
 (as
 defined
 in
 Rule
 17j-1)
 from
 violating
 its
 Code
 of
 Ethics.
 The
 Subadviser
 acknowledges
 receipt
 of
 the
 written
 code
 of
 ethics
 adopted
 by
 and
 on
 behalf
 of
 the
 Trust.
 Each
 calendar
 quarter
 while
 this
 Agreement
 is
 in
 effect,
 a
 duly
 authorized
 compliance
 officer
 of
 the
 Subadviser
 shall
 certify
 to
 the
 Trust
 and
 to
 the
 Adviser
 that
 the
 Subadviser
 has
 complied
 with
 the
 requirements
 of
 Rules
 204A-1
 and
 17j-1
 during
 the
 previous
 calendar
 quarter
 and
 that
 there
 has
 been
 no
 material
 violation
 of
 its
 Code
 of
 Ethics,
 or
 of
 Rule
 17j-1(b),
 or
 that
 any
 persons
 covered
 under
 its
 Code
 of
 Ethics
 has
 divulged
 or
 acted
 upon
 any
 material,
 non-public
 information,
 as
 such
 term
 is
 defined
 under
 relevant
 securities
 laws,
 and
 if
 such
 a
 violation
 of
 the
 code
 of
 ethics
 of
 the
 Trust
 has
 occurred,
 or
 if
 such
 a
 violation
 of
 its
 Code
 of
 Ethics
 has
 occurred,
 that
 appropriate
 action
 was
 taken
 in
 response
 to
 such
 violation.
 The
 Subadviser
 shall
 notify
 the
 Adviser
 promptly
 of
 any
 material
 violation
 of
 the
 Code
 of
 Ethics
 involving
 the
 Trust.
 The
 Subadviser
 will
 provide
 such
 additional
 information
 regarding
 violations
 of
 the
 Code
 of
 Ethics
 directly
 affecting
 the
 Trust
 as
 the
 Trust
 or
 its
 Chief
 Compliance
 Officer
 on
 behalf
 of
 the
 Trust
 or
 the
 Adviser
 may
 reasonably
 request
 in
 order
 to
 assess
 the
 functioning
 of
 the
 Code
 of
 Ethics
 or
 any
 harm
 caused
 to
 the
 Trust
 from
 a
 violation
 of
 the
 Code
 of
 Ethics.
 Further,
 the
 Subadviser
 represents
 that
 it
 has
 policies
 and
 procedures
 regarding
 the
 detection
 and
 prevention
 of
 the
 misuse
 of
 material,
 nonpublic
 information
 by
 the
 Subadviser
 and
 its
 employees.
 The
 Subadviser
 will
 explain
 what
 it
 has
 done
 to
 seek
 to
 ensure
 such
 compliance
 in
 the
 future.
 Annually,
 the
 Subadviser
 shall
 furnish
 to
 the
 Trust
 and
 the
 Adviser
 a
 written
 report
 which
 complies
 with
 the
 requirements
 of
 Rule
 17j-1
 concerning
 the
 Subadviser's
 Code
 of
 Ethics.
 The
 Subadviser
 shall
 permit
 the
 Trust
 and
 the
 Adviser
 to
 examine
 the
 reports
 required
 to
 be
 made
 by
 the
 Subadviser
 under
 Rules
 204A-1(b)
 and
 17j-1(d)(1)
 and
 this
 subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It
 has
 adopted
 and
 implemented,
 and
 throughout
 the
 term
 of
 this
 Agreement
 shall
 maintain
 in
 effect
 and
 implement,
 policies
 and
 procedures
 reasonably
 designed
 to
 prevent,
 detect
 and
 correct
 violations
 by
 the
 Subadviser
 and
 its
 supervised
 persons,
 and,
 to
 the
 extent
 the
 activities
 of
 the
 Subadviser
 in
 respect
 of
 the
 Trust
 could
 affect
 the
 Trust,
 by
 the
 Trust,
 of
 "federal
 securities
 laws"
 (as
 defined
 in
 Rule
 38a-1
 under
 the
 Act),
 and
 that
 the
 Subadviser
 has
 provided
 the
 Trust
 with
 true
 and
 complete
 copies
 of
 its
 policies
 and
 procedures
 (or
 summaries
 thereof)
 and
 related
 information
 reasonably
 requested
 by
 the
 Trust
 and/or
 the
 Adviser.
 The
 Subadviser
 agrees
 to
 cooperate
 with
 periodic
 reviews
 by
 the
 Trust's
 and/or
 the
 Adviser's
 compliance
 personnel
 of
 the
 Subadviser's
 policies
 and
 procedures,
 their
 operation
 and
 implementation
 and
 other
 compliance
 matters
 and
 to
 provide
 to
 the
 Trust
 and/or
 the
 Adviser
 from
 time
 to
 time
 such
 additional
 information
 and
 certifications
 in
 respect
 of
 the
 Subadviser's
 policies
 and
 procedures,
 compliance
 by
 the
 Subadviser
 with
 federal
 securities
 laws
 and
 related
 matters
 as
 the
 Trust's
 and/or
 the
 Adviser's
 compliance
 personnel
 may
 reasonably
 request.
 The
 Subadviser
 agrees
 to
 promptly
 notify
 the
 Adviser
 of
 any
 compliance
 violations
 which
 affect
 the
 Designated
 Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The
 Subadviser
 will
 immediately
 notify
 the
 Trust
 and
 the
 Adviser
 of
 the
 occurrence
 of
 any
 event
 which
 would
 disqualify
 the
 Subadviser
 from
 serving
 as
 an
 investment
 adviser
 of
 an
 investment
 company
 pursuant
 to
 Section

 of
 the
 Act
 or
 otherwise.
 The
 Subadviser
 will
 also
 immediately
 notify
 the
 Trust
 and
 the
 Adviser
 if
 it
 is
 served
 or
 otherwise
 receives
 notice
 of
 any
 action,
 suit,
 proceeding,
 inquiry
 or
 investigation,
 at
 law
 or
 in
 equity,
 before
 or
 by
 any
 court,
 public
 board
 or
 body,
 including
 but
 not
 limited
 to
 the
 SEC
 and
 the
 CFTC,
 involving
 the
 affairs
 of
 the
 Designated
 Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. To
 the
 best
 of
 its
 knowledge,
 there
 are
 no
 material
 pending,
 threatened,
 or
 contemplated
 actions,
 suits,
 proceedings,
 or
 investigations
 before
 or
 by
 any
 court,
 governmental,
 administrative
 or
 self-regulatory
 body,
 board
 of
 trade,
 exchange,
 or
 arbitration
 panel
 to
 which
 it
 or
 any
 of
 its
 directors,
 officers,
 employees,
 partners,
 shareholders,
 members
 or
 principals,
 or
 any
 of
 its
 affiliates
 is
 a
 party
 or
 to
 which
 it
 or
 its
 affiliates
 or
 any
 of
 its
 or
 its
 affiliates'
 assets
 are
 subject,
 nor
 has
 it
 or
 any
 of
 its
 affiliates
 received
 any
 notice
 of
 an
 investigation,
 inquiry,
 or
 dispute
 by
 any
 court,
 governmental,
 administrative,
 or
 self-regulatory
 body,
 board
 of
 trade,
 exchange,
 or
 arbitration
 panel
 regarding
 any
 of
 its
 or
 their
 activities,
 which
 might
 reasonably
 be
 expected
 to
 result
 in
 (i)
 a
 material
 adverse
 effect
 on
 the
 Trust
 or
 (ii)
 a
 material
 adverse
 change
 in
 the
 Subadviser's
 condition
 (financial
 or
 otherwise)
 or
 business,
 or
 which
 might
 reasonably
 be
 expected
 to
 materially
 impair
 the
 Subadviser's
 ability
 to
 discharge
 its
 obligations
 under
 this
 Agreement.
 The
 Subadviser
 will
 also
 immediately
 notify
 the
 Trust
 and
 the
 Adviser
 if
 the
 representation
 in
 this
 Section
 13. G
 is
 no
 longer
 accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The
 Subadviser
 shall
 promptly
 notify
 the
 Adviser
 of
 any
 changes
 in
 its
 executive
 officers,
 partners
 or
 in
 its
 key
 personnel,
 including,
 without
 limitation,
 any
 change
 in
 the
 portfolio
 manager(s)
 responsible
 for
 the
 Designated
 Series
 or
 if
 there
 is
 an
 actual
 or
 expected
 change
 in
 control
 or
 management
 of
 the
 Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Personal Liability</u>.
 Reference
 is
 hereby
 made
 to
 the
 Declaration
 of
 Trust
 establishing
 the
 Trust,
 a
 copy
 of
 which
 has
 been
 filed
 with
 the
 SEC,
 and
 to
 any
 and
 all
 amendments
 thereto
 so
 filed
 or
 hereafter
 filed.
 The
 name
 "Virtus
 Strategy
 Trust"
 refers
 to
 the
 Board
 under
 said
 Declaration
 of
 Trust,
 as
 trustees
 and
 not
 personally,
 and
 no
 trustee,
 shareholder,
 officer,
 agent
 or
 employee
 of
 the
 Trust
 shall
 be
 held
 to
 any
 personal
 liability
 in
 connection
 with
 the
 affairs
 of
 the
 Trust;
 only
 the
 trust
 estate
 under
 said
 Declaration
 of
 Trust
 is
 liable.
 Without
 limiting
 the
 generality
 of
 the
 foregoing,
 neither
 the
 Subadviser
 nor
 any
 of
 its
 officers,
 directors,
 partners,
 shareholders
 or
 employees
 shall,
 under
 any
 circumstances,
 have
 recourse
 or
 cause
 or
 willingly
 permit
 recourse
 to
 be
 had
 directly
 or
 indirectly
 to
 any
 personal,
 statutory,
 or
 other
 liability
 of
 any
 shareholder,
 Trustee,
 officer,
 agent
 or
 employee
 of
 the
 Trust
 or
 of
 any
 successor
 of
 the
 Trust,
 whether
 such
 liability
 now
 exists
 or
 is
 hereafter
 incurred
 for
 claims
 against
 the
 trust
 estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendment</u>.
 This
 Agreement,
 together
 with
 the
 Schedules
 attached
 hereto,
 constitutes
 the
 entire
 agreement
 of
 the
 parties
 with
 respect
 to
 the
 subject
 matter
 hereof
 and
 supersedes
 any
 prior
 written
 or
 oral
 agreements
 pertaining
 to
 the
 subject
 matter
 of
 this
 Agreement.
 This
 Agreement
 may
 be
 amended
 at
 any
 time,
 but
 only
 by
 written
 agreement
 among
 the
 Subadviser,
 the
 Adviser
 and
 the
 Trust,
 which
 amendment,
 other
 than
 amendments
 to
 Schedules
 A,
 B,
 D,
 E
 and
 F,
 is
 subject
 to
 the
 approval
 of
 the
 Board
 (including
 those
 trustees
 who
 are
 not
 "interested
 persons"
 of
 the
 Trust)
 and,
 if
 required
 by
 the
 Act
 or
 applicable
 SEC
 rules
 and
 regulations,
 a
 vote
 of
 a
 majority
 of
 the
 Designated
 Series'
 outstanding
 voting
 securities;
 provided,
 however,
 that,
 notwithstanding
 the
 foregoing,
 this
 Agreement
 may
 be
 amended
 or
 terminated
 in
 accordance
 with
 any
 exemptive
 order
 issued
 to
 the
 Adviser,
 the
 Trust
 or
 its
 affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Effective Date; Term</u>.
 This
 Agreement
 shall
 become
 effective
 on
 the
 date
 set
 forth
 on
 the
 first
 page
 of
 this
 Agreement,
 and
 shall
 continue
 in
 effect
 until
 December
 31,
 2023.
 The
 Agreement
 shall
 continue
 from
 year
 to
 year
 thereafter
 only
 so
 long
 as
 its
 continuance
 has
 been
 specifically
 approved
 at
 least
 annually
 (i)
 by
 a
 vote
 of
 the
 Board
 of
 the
 Trust
 or
 by
 vote
 of
 a
 majority
 of
 outstanding
 voting
 securities
 of
 the
 Designated
 Series
 and
 (ii)
 by
 vote
 of
 a
 majority
 of
 the
 trustees
 who
 are
 not
 interested
 persons
 of
 the
 Trust
 (as
 defined
 in
 the
 Act)
 or
 of
 any
 person
 party
 to
 this Agreement, cast in person (or
otherwise, as consistent with applicable laws, regulations and related guidance and relief) at a meeting called for the purpose
of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Termination</u>.
 This
 Agreement
 may
 be
 terminated
 at
 any
 time
 without
 payment
 of
 any
 penalty
 (i)
 by
 the
 Board,
 or
 by
 a
 vote
 of
 a
 majority
 of
 the
 outstanding
 voting
 securities
 of
 the
 Designated
 Series,
 upon

 days'
 prior
 written
 notice
 to
 the
 Adviser
 and
 the
 Subadviser,
 (ii)
 by
 the
 Subadviser
 upon

 days'
 prior
 written
 notice
 to
 the
 Adviser
 and
 the
 Trust,
 or
 (iii)
 by
 the
 Adviser
 upon

 days'
 prior
 written
 notice
 to
 the
 Subadviser.
 This
 Agreement
 may
 also
 be
 terminated,
 without
 the
 payment
 of
 any
 penalty,
 by
 the
 Adviser
 or
 the
 Board
 immediately
 (i)
 upon
 the
 material
 breach
 by
 the
 Subadviser
 of
 this
 Agreement
 or
 (ii)
 at
 the
 terminating
 party's
 discretion,
 if
 the
 Subadviser
 or
 any
 officer,
 director
 or
 key
 portfolio
 manager
 of
 the
 Subadviser
 is
 accused
 in
 any
 regulatory,
 self-regulatory
 or
 judicial
 investigation
 or
 proceeding
 as
 having
 violated
 the
 federal
 securities
 laws
 or
 engaged
 in
 criminal
 conduct.
 This
 Agreement
 shall
 terminate
 automatically
 and
 immediately
 upon
 termination
 of
 the
 Advisory
 Agreement.
 This
 Agreement
 shall
 terminate
 automatically
 and
 immediately
 in
 the
 event
 of
 its
 assignment,
 as
 such
 term
 is
 defined
 in
 and
 interpreted
 under
 the
 terms
 of
 the
 1940
 Act
 and
 the
 rules
 promulgated
 thereunder.
 Termination
 of
 this
 Agreement
 will
 not
 affect
 any
 outstanding
 orders
 or
 transactions
 or
 any
 legal
 rights
 or
 obligations
 which
 may
 already
 have
 arisen.
 Transactions
 in
 progress
 at
 the
 date
 of
 termination
 will
 be
 completed
 by
 the
 Subadviser
 as
 soon
 as
 reasonably
 practicable.
 Provisions
 of
 this
 Agreement
 relating
 to
 indemnification
 and
 the
 preservation
 of
 records,
 as
 well
 as
 any
 responsibilities
 or
 obligations
 of
 the
 parties
 hereto
 arising
 from
 matters
 initiated
 prior
 to
 termination,
 shall
 survive
 any
 termination
 of
 this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>.
 To
 the
 extent
 that
 state
 law
 is
 not
 preempted
 by
 the
 provisions
 of
 any
 law
 of
 the
 United
 States
 heretofore
 or
 hereafter
 enacted,
 as
 the
 same
 may
 be
 amended
 from
 time
 to
 time,
 this
 Agreement
 shall
 be
 administered,
 construed
 and
 enforced
 according
 to
 the
 laws
 of
 the
 Commonwealth
 of
 Massachusetts
 applicable
 to
 contracts
 entered
 into
 and
 fully
 performed
 within
 the
 Commonwealth
 of
 Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>.
 If
 any
 term
 or
 condition
 of
 this
 Agreement
 shall
 be
 invalid
 or
 unenforceable
 to
 any
 extent
 or
 in
 any
 application,
 then
 the
 remainder
 of
 this
 Agreement
 shall
 not
 be
 affected
 thereby,
 and
 each
 and
 every
 term
 and
 condition
 of
 this
 Agreement
 shall
 be
 valid
 and
 enforced
 to
 the
 fullest
 extent
 permitted
 by
 law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices.</u> Any
 notice
 or
 other
 communication
 required
 to
 be
 given
 pursuant
 to
 this
 Agreement
 shall
 be
 deemed
 duly
 given
 if
 delivered
 personally
 or
 by
 overnight
 delivery
 service
 or
 mailed
 by
 certified
 or
 registered
 mail,
 return
 receipt
 requested
 and
 postage
 prepaid,
 or
 sent
 by
 facsimile
 or
 e-mail
 transmission
 addressed
 to
 the
 parties
 at
 their
 respective
 addresses
 set
 forth
 below,
 or
 at
 such
 other
 address
 as
 shall
 be
 designated
 by
 any
 party
 in
 a
 written
 notice
 to
 the
 other
 party.

---

| | |
|:---|:---|
| (a) | To the Adviser or the Trust at: |
|  | Virtus Investment Advisers, Inc.<br> One Financial Plaza<br> Hartford, Connecticut 06103<br> Attn: Legal Counsel<br> Telephone: (860) 263-4790<br> Facsimile: (860) 241-1028 |

---

---

| | |
|:---|:---|
| (b) | To the Subadviser at: |
|  | Newfleet Asset Management, a division of Virtus Fixed Income Advisers, LLC<br> One Financial Plaza<br> Hartford, CT 06103<br> Attn: James Sena<br> Telephone: (860) 503-1130<br> Facsimile: (860) 278-7033<br> Email: james.sena@virtus.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Certifications.</u> The
 Subadviser
 shall
 timely
 provide
 to
 the
 Adviser
 and
 the
 Trust,
 all
 information
 and
 documentation
 they
 may
 reasonably
 request
 as
 necessary
 or
 appropriate
 in
 order
 for
 the
 Adviser
 and
 the
 Board
 to
 oversee
 the
 activities
 of
 the
 Subadviser
 and
 in
 connection
 with
 the
 compliance
 by
 any
 of
 them
 with
 the
 requirements
 of
 this
 Agreement,
 the
 Registration
 Statement,
 the
 policies
 and
 procedures
 referenced
 herein,
 and
 any
 applicable
 law,
 including,
 without
 limitation,
 (i)
 information
 and
 commentary
 relating
 to
 the
 Subadviser
 or
 the
 Designated
 Series
 for
 the
 Trust's
 annual
 and
 semi-annual
 reports,
 in
 a
 format
 reasonably
 approved
 by
 the
 Adviser,
 together
 with
 (A)
 a
 certification
 that
 such
 information
 and
 commentary
 discuss
 all
 of
 the
 factors
 that
 materially
 affected
 the
 performance
 of
 the
 Designated
 Series,
 including
 the
 relevant
 market
 conditions
 and
 the
 investment
 techniques
 and
 strategies
 used
 and
 (B)
 additional
 certifications
 related
 to
 the
 Subadviser's
 management
 of
 the
 Trust
 in
 order
 to
 support
 the
 Trust's
 filings
 on
 Form
 N-CSR
 and
 other
 applicable
 forms,
 and
 the
 Trust's
 Principal
 Executive
 Officer's
 and
 Principal
 Financial
 Officer's
 certifications
 under
 Rule
 30a-2
 under
 the
 Act,
 thereon;
 (ii)
 within

 business
 days
 of
 a
 quarter-end,
 a
 quarterly
 certification
 with
 respect
 to
 compliance
 and
 operational
 matters
 related
 to
 the
 Subadviser
 and
 the
 Subadviser's
 management
 of
 the
 Designated
 Series
 (including,
 without
 limitation,
 compliance
 with
 the
 applicable
 procedures),
 in
 a
 format
 reasonably
 requested
 by
 the
 Adviser,
 as
 it
 may
 be
 amended
 from
 time
 to
 time;
 and
 (iii)
 an
 annual
 certification
 from
 the
 Subadviser's
 Chief
 Compliance
 Officer,
 appointed
 under
 Rule
 206(4)-7
 under
 the
 Advisers
 Act
 with
 respect
 to
 the
 design
 and
 operation
 of
 the
 Subadviser's
 compliance
 program,
 in
 a
 format
 reasonably
 requested
 by
 the
 Adviser
 or
 the
 Trust.
 Without
 limiting
 the
 foregoing,
 the
 Subadviser
 shall
 provide
 a
 quarterly
 certification
 in
 a
 form
 substantially
 similar
 to
 that
 attached
 as
 Schedule
 E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Subadviser
 shall
 indemnify
 and
 hold
 harmless
 the
 Adviser
 from
 and
 against
 any
 and
 all
 claims,
 losses,
 liabilities,
 or
 damages
 (including
 reasonable
 attorney's
 fees
 and
 other
 related
 expenses)
 (collectively,
 "Losses")
 arising
 from
 the
 Subadviser's
 willful
 misfeasance,
 bad
 faith,
 gross
 negligence,
 or
 reckless
 disregard
 of
 its
 duties
 under
 this
 Agreement
 in
 the
 performance
 of
 its
 obligations
 under
 this
 Agreement;
 provided,
 however,
 that
 the
 Subadviser's
 obligation
 under
 this
 Section

 shall
 be
 reduced
 to
 the
 extent
 that
 the
 claim
 against,
 or
 the
 loss,
 liability,
 or
 damage
 experienced
 by
 the
 Adviser,
 is
 caused
 by
 or
 is
 otherwise
 directly
 related
 to
 (i)
 any
 breach
 by
 the
 Adviser
 of
 its
 representations
 or
 warranties
 made
 herein,
 (ii)
 any
 willful
 misconduct,
 bad
 faith,
 reckless
 disregard
 or
 negligence
 of
 the
 Adviser
 in
 the
 performance
 of
 any
 of
 its
 duties
 or
 obligations
 hereunder,
 or
 (iii)
 any
 untrue
 statement
 of
 a
 material
 fact
 contained
 in
 the
 Registration
 Statement,
 proxy
 materials,
 reports,
 advertisements,
 sales
 literature,
 or
 other
 materials
 pertaining
 to
 the
 Trust
 or
 the
 omission
 to
 state
 therein
 a
 material
 fact
 known
 to
 the
 Adviser
 that
 was
 required
 to
 be
 stated
 therein
 or
 necessary
 to
 make
 the
 statements
 therein
 not
 misleading,
 if
 such
 statement
 or
 omission
 was
 made
 in
 reliance
 upon
 information
 furnished
 to
 the
 Subadviser
 or
 the
 Trust,
 or
 the
 omission
 of
 such
 information,
 by
 the
 Adviser
 for
 use
 therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Adviser
 shall
 indemnify
 and
 hold
 harmless
 the
 Subadviser
 from
 and
 against
 any
 and
 all
 Losses
 arising
 from
 the
 Adviser's
 willful
 misfeasance,
 bad
 faith,
 gross
 negligence,
 or
 reckless
 disregard
 of
 its
 duties
 under
 this
 Agreement
 in
 the
 performance
 of
 its
 obligations
 under
 this
 Agreement;
 provided,
 however,
 that
 the
 Adviser's
 obligation
 under
 this
 Section

 shall
 be
 reduced
 to
 the
 extent
 that
 the
 claim
 against,
 or
 the
 loss,
 liability,
 or
 damage
 experienced
 by
 the
 Subadviser,
 is
 caused
 by
 or
 is
 otherwise
 directly
 related
 to
 (i)
 any
 breach
 by
 the
 Subadviser
 of
 its
 representations
 or
 warranties
 made
 herein,
 (ii)
 any
 willful
 misconduct,
 bad
 faith,
 reckless
 disregard
 or
 negligence
 of
 the
 Subadviser
 in
 the
 performance
 of
 any
 of
 its
 duties
 or
 obligations
 hereunder,
 or
 (iii)
 any
 untrue
 statement
 of
 a
 material
 fact
 contained
 in
 the
 Registration
 Statement,
 proxy
 materials,
 reports,
 advertisements,
 sales
 literature,
 or
 other
 materials
 pertaining
 to
 the
 Trust
 or
 the
 omission
 to
 state
 therein
 a
 material
 fact
 known
 to
 the Subadviser that was required to
be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance
upon information

furnished to the Adviser or the Trust, or the omission of such information, by the Subadviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A
 party
 seeking
 indemnification
 hereunder
 (the
 "Indemnified
 Party")
 will
 (i)
 provide
 prompt
 written
 notice
 to
 the
 other
 of
 any
 claim
 ("Claim")
 for
 which
 it
 intends
 to
 seek
 indemnification,
 (ii)
 grant
 control
 of
 the
 defense
 and
 /or
 settlement
 of
 the
 Claim
 to
 the
 other
 party,
 and
 (iii)
 cooperate
 with
 the
 other
 party
 in
 the
 defense
 thereof.
 The
 Indemnified
 Party
 will
 have
 the
 right
 at
 its
 own
 expense
 to
 participate
 in
 the
 defense
 of
 any
 Claim,
 but
 will
 not
 have
 the
 right
 to
 control
 the
 defense,
 consent
 to
 judgment
 or
 agree
 to
 the
 settlement
 of
 any
 Claim
 without
 the
 written
 consent
 of
 the
 other
 party.
 The
 party
 providing
 the
 indemnification
 will
 not
 consent
 to
 the
 entry
 of
 any
 judgment
 or
 enter
 any
 settlement
 which
 (i)
 does
 not
 include,
 as
 an
 unconditional
 term,
 the
 release
 by
 the
 claimant
 of
 all
 liabilities
 for
 Claims
 against
 the
 Indemnified
 Party
 or
 (ii)
 which
 otherwise
 adversely
 affects
 the
 rights
 of
 the
 Indemnified
 Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. No
 party
 will
 be
 liable
 to
 another
 party
 for
 consequential
 damages
 under
 any
 provision
 of
 this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Receipt of Disclosure Documents</u>.
 The
 Trust
 and
 the
 Adviser
 acknowledge
 receipt,
 at
 least

 hours
 prior
 to
 entering
 into
 this
 Agreement,
 of
 a
 copy
 of
 Part

 of
 the
 Subadviser's
 Form
 ADV
 containing
 certain
 information
 concerning
 the
 Subadviser
 and
 the
 nature
 of
 its
 business.
 The
 Subadviser
 will,
 promptly
 after
 making
 any
 amendment
 to
 its
 Form
 ADV,
 furnish
 a
 copy
 of
 such
 amendment
 to
 the
 Adviser.
 On
 an
 annual
 basis
 and
 upon
 request,
 the
 Subadviser
 will
 provide
 a
 copy
 of
 its
 audited
 financial
 statements,
 including
 balance
 sheets,
 for
 the
 two
 most
 recent
 fiscal
 years
 and,
 if
 available,
 each
 subsequent
 fiscal
 quarter.
 At
 the
 time
 of
 providing
 such
 information,
 the
 Subadviser
 shall
 describe
 any
 material
 adverse
 change
 in
 its
 financial
 condition
 since
 the
 date
 of
 its
 latest
 financial
 statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts; Fax Signatures</u>.
 This
 Agreement
 may
 be
 executed
 in
 any
 number
 of
 counterparts
 (including
 executed
 counterparts
 delivered
 and
 exchanged
 by
 facsimile
 transmission)
 with
 the
 same
 effect
 as
 if
 all
 signing
 parties
 had
 originally
 signed
 the
 same
 document,
 and
 all
 counterparts
 shall
 be
 construed
 together
 and
 shall
 constitute
 the
 same
 instrument.
 For
 all
 purposes,
 signatures
 delivered
 and
 exchanged
 by
 facsimile
 transmission
 shall
 be
 binding
 and
 effective
 to
 the
 same
 extent
 as
 original
 signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Bankruptcy and Related Events</u>.
 Each
 of
 the
 Adviser
 and
 the
 Subadviser
 agrees
 that
 it
 will
 provide
 prompt
 notice
 to
 the
 other
 in
 the
 event
 that:
 (i)
 it
 makes
 an
 assignment
 for
 the
 benefit
 of
 creditors,
 files
 a
 voluntary
 petition
 in
 bankruptcy,
 or
 is
 otherwise
 adjudged
 bankrupt
 or
 insolvent
 by
 a
 court
 of
 competent
 jurisdiction;
 or
 (ii)
 a
 material
 event
 occurs
 that
 could
 reasonably
 be
 expected
 to
 adversely
 impair
 its
 ability
 to
 perform
 this
 Agreement.
 The
 Adviser
 further
 agrees
 that
 it
 will
 provide
 prompt
 notice
 to
 the
 Subadviser
 in
 the
 event
 that
 the
 Trust
 ceases
 to
 be
 registered
 as
 an
 investment
 company
 under
 the
 Act.

**[signature page follows]**

---

| | | |
|:---|:---|:---|
| **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley |
|  | Name: | W. Patrick Bradley |
|  | Title: | Executive Vice President, Chief Financial Officer & Treasurer |
| **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

**ACCEPTED:**

**VIRTUS FIXED INCOME ADVISERS, LLC**

---

| | | |
|:---|:---|:---|
| By: | /s/ Michael Sollicito | /s/ Michael Sollicito |
|  | Name: | Michael Sollicito |
|  | Title: | Chief Operating Officer, Newfleet Division |

---

---

| | | |
|:---|:---|:---|
| SCHEDULES: | A. | Operational Procedures |
|  | B. | Record Keeping Requirements |
|  | C. | Fee Schedule |
|  | D. | Subadviser Functions |
|  | E. | Form of Sub-Certification |
|  | F. | Designated Series |

---

**<u>SCHEDULE A</u>**

**OPERATIONAL PROCEDURES**

In order to minimize operational problems, it will be necessary for a flow of information to be supplied in a secure manner by Subadviser to the Trust's service providers, including: The Bank of New York Mellon (the "Custodian"), Virtus Fund Services, LLC (the "Fund Administrator"), BNY Mellon Investment Servicing (US) Inc., (the "Accounting Agent"), any Prime Broker to the Series, and all other Counterparties/Brokers as required.

The Subadviser must furnish the Trust's service providers with required daily information as to executed trades in a format and time-frame agreed to by the Subadviser, Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties and designated persons of the Trust. Trade information sent to the Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties must include all necessary data within the required timeframes to allow such parties to perform their obligations to the Designated Series.

The Accounting Agent specifically requires a daily trade blotter with a summary of all trades, in addition to trade feeds, including, if no trades are executed, a report to that effect. Daily information as to executed trades for same-day settlement and future trades must be sent to the Accounting Agent no later than 5:00 p.m. (Eastern Time) on the day of the trade each day the Trust is open for business. All other executed trades must be delivered to the Accounting Agent on trade date +1 by 11:00 a.m. (Eastern Time) to ensure that they are part of the Designated Series' NAV calculation. (Subadviser will be responsible for reimbursement to the Trust for any loss caused by the Subadviser's failure to comply with the requirements of this Schedule A.) On fiscal quarter ends and calendar quarter ends, all trades must be delivered to the Accounting Agent by 4:30 p.m. (Eastern Time) for inclusion in the financial statements of the Designated Series. The data to be sent to the Accounting Agent and/or Fund Administrator will be as agreed by the Subadviser, Fund Administrator, Accounting Agent and designated persons of the Trust and shall include (without limitation) the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Transaction type (e.g., purchase, sale, open, close, put
call);

2. Security type (e.g., equity, fixed income, swap, future,
option, short, long);

3. Security name;

4. Exchange identifier (e.g., CUSIP, ISIN, Sedol, OCC Symbol)
(as applicable);

5. Number of shares and par, original face, contract amount,
notional amount;

6. Transaction price per share (clean if possible);

7. Strike price;

8. Aggregate principal amount;

9. Executing broker;

10. Settlement agent;

11. Trade date;

12. Settlement date;

13. Aggregate commission or if a net trade;

14. Interest purchased or sold from interest bearing security;

15. Net proceeds of the transaction;

16. Trade commission reason: best execution, soft dollar or
research (to be provided quarterly);

17. Derivative terms;

18. Non-deliverable forward classification (to be provided
quarterly);

19. Maturity/expiration date; and

20. Details of margin and collateral movement.

When opening accounts with brokers for, and in the name of, the Trust, the account must be a cash account. No margin accounts are to be opened by the Subadviser in the name of the Trust or any Series except as specifically approved by the Trust and the Fund Administrator. Delivery instructions are as specified by the Custodian. The Custodian will supply the Subadviser daily with a cash availability report via access to the Custodian website, or by email or by facsimile and the Accounting Agent will provide a five-day cash projection. This will normally be done by email or, if email is unavailable, by another form of immediate written communication, so that the Subadviser will know the amount available for investment purposes.

**<u>SCHEDULE B</u>**

**RECORDS TO BE MAINTAINED BY THE SUBADVISER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (Rule
 31a-1(b)(5)
 and
 (6))
 A
 record
 of
 each
 brokerage
 order,
 and
 all
 other
 series
 purchases
 and
 sales,
 given
 by
 the
 Subadviser
 on
 behalf
 of
 the
 Trust
 for,
 or
 in
 connection
 with,
 the
 purchase
 or
 sale
 of
 securities,
 whether
 executed
 or
 unexecuted.
 Such
 records
 shall
 include:

A. The name of the
broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 terms
 and
 conditions
 of
 the
 order
 and
 of
 any
 modifications
 or
 cancellations
 thereof;

C. The time of entry
or cancellation;

D. The price at which
executed;

E. The time of receipt
of a report of execution; and

F. The name of the
person who placed the order on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Rule
 31a-1(b)(9))
 A
 record
 for
 each
 fiscal
 quarter,
 completed
 within
 ten
 (10)
 days
 after
 the
 end
 of
 the
 quarter,
 showing
 specifically
 the
 basis
 or
 bases
 upon
 which
 the
 allocation
 of
 orders
 for
 the
 purchase
 and
 sale
 of
 series
 securities
 to
 named
 brokers
 or
 dealers
 was
 effected,
 and
 the
 division
 of
 brokerage
 commissions
 or
 other
 compensation
 on
 such
 purchase
 and
 sale
 orders.
 Such
 record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shall include the consideration given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 sale
 of
 shares
 of
 the
 Trust
 by
 brokers
 or
 dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 supplying
 of
 services
 or
 benefits
 by
 brokers
 or
 dealers
 to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust,

(b) The Adviser,

(c) The Subadviser, and

(d) Any person other than the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any
 other
 consideration
 other
 than
 the
 technical
 qualifications
 of
 the
 brokers
 and
 dealers
 as
 such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shall
 show
 the
 nature
 of
 the
 services
 or
 benefits
 made
 available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Shall
 describe
 in
 detail
 the
 application
 of
 any
 general
 or
 specific
 formula
 or
 other
 determinant
 used
 in
 arriving
 at
 such
 allocation
 of
 purchase
 and
 sale
 orders
 and
 such
 division
 of
 brokerage
 commissions
 or
 other
 compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Shall
 show
 the
 name
 of
 the
 person
 responsible
 for
 making
 the
 determination
 of
 such
 allocation
 and
 such
 division
 of
 brokerage
 commissions
 or
 other
 compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (Rule
 31a-1(b)(10))
 A
 record
 in
 the
 form
 of
 an
 appropriate
 memorandum
 identifying
 the
 person
 or
 persons,
 committees
 or
 groups
 authorizing
 the
 purchase
 or
 sale
 of
 series
 securities.
 Where
 a
 committee
 or
 group
 makes
 an
 authorization,
 a
 record
 shall
 be
 kept
 of
 the
 names
 of
 its
 members
 who
 participate
 in
 the
 authorization.
 There
 shall
 be
 retained
 as
 part
 of
 this
 record:
 any
 memorandum,
 recommendation
 or
 instruction
 supporting
 or
 authorizing
 the
 purchase
 or
 sale
 of
 series
 securities
 and
 such
 other
 information
 as
 is
 appropriate
 to
 support
 the
 authorization.<sup>\*</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Rule
 31a-1(f))
 Such
 accounts,
 books
 and
 other
 documents
 as
 are
 required
 to
 be
 maintained
 by
 registered
 investment
 advisers
 by
 rule
 adopted
 under
 Section

 of
 the
 Advisers
 Act,
 to
 the
 extent
 such
 records
 are
 necessary
 or
 appropriate
 to
 record
 the
 Subadviser's
 transactions
 for
 the
 Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Records
 as
 necessary
 under
 Board-approved
 policies
 and
 procedures
 of
 the
 Trust,
 including
 without
 limitation
 those
 related
 to
 valuation
 determinations.

\* Such information might include: current financial information, annual and quarterly reports, press releases, reports by analysts and from brokerage firms (including their recommendations, i.e., buy, sell, hold) or any internal reports or subadviser review.

**<u>SCHEDULE C</u>**

**SUBADVISORY FEE**

For services provided to the Trust, the Adviser will pay to the Subadviser a fee, payable monthly in arrears, equal to 50% of the net advisory fee applicable to the Designated Series, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 total
 expenses
 of
 the
 Designated
 Series
 will
 be
 calculated
 in
 accordance
 with
 the
 terms
 of
 its
 prospectus,
 including
 application
 of
 the
 gross
 advisory
 fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such
 total
 expenses
 will
 be
 reduced
 by
 the
 application
 of
 any
 applicable
 fee
 waiver
 and/or
 expense
 limitation
 agreement,
 in
 accordance
 with
 the
 terms
 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 net
 advisory
 fee
 applicable
 to
 the
 Designated
 Series
 will
 then
 be
 calculated
 by
 subtracting
 from
 the
 gross
 advisory
 fee
 any
 amount
 required
 to
 be
 waived
 under
 the
 applicable
 fee
 waiver(s)
 and/or
 reimbursed
 under
 such
 applicable
 expense
 limitation
 agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In
 the
 event
 that
 the
 Adviser
 waives
 its
 entire
 fee
 and
 also
 assumes
 expenses
 of
 the
 Designated
 Series
 pursuant
 to
 an
 applicable
 expense
 limitation
 agreement,
 the
 Subadviser
 will
 similarly
 waive
 its
 entire
 fee
 and
 will
 share
 in
 the
 expense
 assumption
 by
 contributing
 50%
 of
 the
 assumed
 amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If
 during
 the
 term
 of
 this
 Agreement
 the
 Adviser
 later
 recaptures
 some
 or
 all
 of
 the
 fees
 waived
 or
 expenses
 assumed
 by
 the
 Adviser
 and
 the
 Subadviser
 together,
 the
 Adviser
 shall
 pay
 to
 the
 Subadviser
 a
 pro
 rata
 amount
 of
 the
 fee(s)/expense(s)
 recaptured
 that
 is
 attributable
 to
 the
 Subadviser's
 portion
 of
 the
 original
 waiver/assumed
 expense.

**<u>SCHEDULE D</u>**

**SUBADVISER FUNCTIONS**

With respect to managing the investment and reinvestment of the Designated Series' assets, the Subadviser shall provide, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An
 investment
 program
 for
 the
 Designated
 Series
 consistent
 with
 its
 investment
 objectives
 based
 upon
 the
 development,
 review
 and
 adjustment
 of
 buy/sell
 strategies
 approved
 from
 time
 to
 time
 by
 the
 Board
 and
 the
 Adviser
 in
 paragraph

 of
 this
 Subadvisory
 Agreement
 and
 implementation
 of
 that
 program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Periodic
 reports,
 on
 at
 least
 a
 quarterly
 basis,
 in
 form
 and
 substance
 acceptable
 to
 the
 Adviser,
 with
 respect
 to:
 i)
 compliance
 with
 the
 Code
 of
 Ethics
 and
 the
 Trust's
 code
 of
 ethics;
 ii)
 compliance
 with
 procedures
 adopted
 from
 time
 to
 time
 by
 the
 Board
 relative
 to
 securities
 eligible
 for
 resale
 under
 Rule
 144A
 under
 the
 Securities
 Act
 of
 1933,
 as
 amended;
 iii)
 diversification
 of
 Designated
 Series
 assets
 in
 accordance
 with
 the
 then
 prevailing
 Prospectus
 and
 Statement
 of
 Additional
 Information
 pertaining
 to
 the
 Designated
 Series
 and
 governing
 laws,
 regulations,
 rules
 and
 orders;
 iv)
 compliance
 with
 governing
 restrictions
 relating
 to
 the
 fair
 valuation
 of
 securities
 for
 which
 market
 quotations
 are
 not
 readily
 available
 or
 considered
 "illiquid"
 for
 the
 purposes
 of
 complying
 with
 the
 Designated
 Series'
 limitation
 on
 acquisition
 of
 illiquid
 securities;
 v)
 any
 and
 all
 other
 reports
 reasonably
 requested
 in
 accordance
 with
 or
 described
 in
 this
 Agreement;
 vi)
 the
 implementation
 of
 the
 Designated
 Series'
 investment
 program,
 including,
 without
 limitation,
 analysis
 of
 Designated
 Series
 performance;
 vii)
 compliance
 with
 the
 Investment
 Guidelines;
 viii)
 description
 of
 material
 changes
 in
 policies
 or
 procedures;
 and
 ix)
 description
 of
 any
 significant
 firm
 related
 developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly
 after
 filing
 with
 the
 SEC
 an
 amendment
 to
 its
 Form
 ADV,
 a
 copy
 of
 such
 amendment
 to
 the
 Adviser
 and
 the
 Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Attendance
 by
 appropriate
 representatives
 of
 the
 Subadviser
 at
 meetings
 requested
 by
 the
 Adviser
 or
 Board
 at
 such
 time(s)
 and
 location(s)
 as
 reasonably
 requested
 by
 the
 Adviser
 or
 Board;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice
 to
 the
 Board
 and
 the
 Adviser
 of
 the
 occurrence
 of
 any
 event
 which
 would
 disqualify
 the
 Subadviser
 from
 serving
 as
 an
 investment
 adviser
 of
 an
 investment
 company
 pursuant
 to
 Section
 9(a)
 of
 the
 Act
 or
 otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable
 assistance
 in
 the
 valuation
 of
 securities
 including
 the
 participation
 of
 appropriate
 representatives
 at
 fair
 valuation
 committee
 meetings.

**<u>SCHEDULE E</u>**

**FORM OF SUB-CERTIFICATION**

To:

---

| | |
|:---|:---|
| Re: | Subadviser's Form N-CSR Certification for the [Name of Designated Series]. |

---

---

| | |
|:---|:---|
| From: | [Name of Subadviser] |

---

Representations in support of Investment Company Act Rule 30a-2 certification of Form N-CSR.

[Name of Designated Series].

In connection with your certification responsibility under Rule 30a-2 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, I have reviewed the following information presented in the schedule of investments for the period ended [Date of Reporting Period] (the "Report") which forms part of the N-CSR, as applicable, for the Trust.

Schedule of Investments

Our organization has designed, implemented and maintained internal controls and procedures, designed for the purpose of ensuring the accuracy and completeness of relevant portfolio trade data transmitted to those responsible for the preparation of the Schedule of Investments. As of the date of this certification there have been no material modifications to these internal controls and procedures.

In addition, our organization has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed
 such
 internal
 controls
 and
 procedures
 to
 ensure
 that
 material
 information
 is
 made
 known
 to
 the
 appropriate
 groups
 responsible
 for
 servicing
 the
 above-mentioned
 mutual
 fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed
 and
 implemented
 controls
 which
 ensure
 that
 all
 transactions
 provided
 to
 the
 fund's
 custodians/prime
 broker
 and
 accounting
 agent
 ("vendors")
 have
 been
 delivered
 in
 a
 secure
 manner
 by
 authorized
 persons,
 and
 that
 access
 to
 the
 fund's
 records
 maintained
 by
 the
 fund's
 vendors
 is
 restricted
 to
 authorized
 persons
 of
 our
 firm
 or,
 if
 applicable,
 any
 third
 party
 administrator
 utilized
 by
 our
 firm.
 Such
 controls
 include
 review
 of
 the
 authorized
 persons
 at
 least
 annually
 and
 prompt
 communication
 of
 any
 changes
 to
 authorized
 persons
 to
 the
 fund's
 vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated
 the
 effectiveness
 of
 our
 internal
 controls
 and
 procedures,
 as
 of
 a
 date
 within

 days
 prior
 to
 the
 date
 of
 this
 certification
 and
 we
 have
 concluded
 that
 such
 controls
 and
 procedures
 are
 effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In
 addition,
 to
 the
 best
 of
 my
 knowledge,
 there
 has
 been
 no
 fraud,
 whether
 or
 not
 material,
 that
 involves
 our
 organization's
 management
 or
 other
 employees
 who
 have
 a
 significant
 role
 in
 our
 organization's
 control
 and
 procedures
 as
 they
 relate
 to
 our
 duties
 as
 subadviser
 to
 the
 Designated
 Series.

I have read the draft of the Report which I understand to be current as of [Date of Reporting Period] and based on my knowledge, such draft of the Report, including the Fund Summary and Asset Allocations (as applicable), does not, with respect to the Designated Series, contain any untrue statement of a material fact or omit to state a material fact necessary to make the information contained therein, in light of the circumstances under which such information is presented, not misleading with respect to the period covered by such draft Report.

I have disclosed, based on my most recent evaluation, to the Designated Series' Chief Accounting Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All
 significant
 changes,
 deficiencies
 and
 material
 weakness,
 if
 any,
 in
 the
 design
 or
 operation
 of
 the
 Subadviser's
 internal
 controls
 and
 procedures
 which
 could
 adversely
 affect
 the
 Registrant's
 ability
 to

record, process, summarize and report financial data with respect to the Designated Series in a timely fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any
 fraud,
 whether
 or
 not
 material,
 that
 involves
 the
 Subadviser's
 management
 or
 other
 employees
 who
 have
 a
 significant
 role
 in
 the
 Subadviser's
 internal
 controls
 and
 procedures
 for
 financial
 reporting.

I certify that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 Subadviser's
 Portfolio
 Manager(s)
 has/have
 complied
 with
 the
 restrictions
 and
 reporting
 requirements
 of
 the
 Code
 of
 Ethics
 (the
 "Code").
 The
 term
 Portfolio
 Manager
 is
 as
 defined
 in
 the
 Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
 Subadviser
 has
 complied
 with
 the
 Prospectus
 and
 Statement
 of
 Additional
 Information
 of
 the
 Designated
 Series
 and
 the
 Policies
 and
 Procedures
 of
 the
 Designated
 Series
 as
 adopted
 by
 the
 Designated
 Series
 Board
 of
 Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I
 have
 no
 knowledge
 of
 any
 compliance
 violations
 except
 as
 disclosed
 in
 writing
 to
 the
 Virtus
 Compliance
 Department
 by
 me
 or
 by
 the
 Subadviser's
 compliance
 administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The
 Subadviser
 has
 complied
 with
 the
 rules
 and
 regulations
 of
 the

 Act
 and

 Act,
 and
 such
 other
 regulations
 as
 may
 apply
 to
 the
 extent
 those
 rules
 and
 regulations
 pertain
 to
 the
 responsibilities
 of
 the
 Subadviser
 with
 respect
 to
 the
 Designated
 Series
 as
 outlined
 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Since
 the
 submission
 of
 our
 most
 recent
 certification
 there
 have
 not
 been
 any
 divestments
 of
 securities
 of
 issuers
 that
 conduct
 or
 have
 direct
 investments
 in
 business
 operations
 in
 Iran
 or
 Sudan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The
 subadviser
 has
 disclosed
 to
 the
 Adviser
 or
 the
 Designated
 Series
 any
 holdings
 required
 to
 be
 disclosed
 under
 the
 Iran
 Threat
 Reduction
 and
 Syria
 Human
 Rights
 Act
 of
 2012,
 the
 Comprehensive
 Iran
 Sanctions,
 Accountability,
 and
 Divestment
 Act
 of
 2010,
 the
 Iran
 Sanctions
 Act
 of
 1996,
 as
 Amended
 and
 Executive
 Orders
 13224,
 and
 13382.

This certification relates solely to the Designated Series named above and may not be relied upon by any other fund or entity.

The Subadviser does not maintain the official books and records of the above Designated Series. The Subadviser's records are based on its own portfolio management system, a record-keeping system that is not intended to serve as the Designated Series official accounting system. The Subadviser is not responsible for the preparation of the Report.

---

| | |
|:---|:---|
| [Name of Subadviser] | Date |
| [Name of Authorized Signer] |  |
| [Title of Authorized Signer] |  |

---

**<u>SCHEDULE F</u>**

**DESIGNATED SERIES**

Virtus Newfleet Short Duration High Income Fund

## Ex-99.(D)(6)

**Exhibit d.6**

**VIRTUS STATEGY TRUST**

**Virtus Seix High Yield Income Fund**

**<u>SUBADVISORY AGREEMENT</u>**

July 25, 2022

Virtus Fixed Income Advisers, LLC

One Financial Plaza

Hartford, CT 06103

---

| | |
|:---|:---|
| **RE:** | **Subadvisory Agreement** |

---

Ladies and Gentlemen:

Virtus Strategy Trust (the "Trust") is an open-end investment company of the series type registered under the Investment Company Act of 1940, as amended (the "Act"), and is subject to the rules and regulations promulgated thereunder. The shares of the Trust are offered or may be offered in several series (sometimes hereafter referred to as the "Series"), including Virtus Seix High Yield Income Fund.

Virtus Investment Advisers, Inc. (the "Adviser") evaluates and recommends series advisers for the Series and is responsible for the day-to-day management of the Series.

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment as a Subadviser</u>. The Adviser, being duly authorized, hereby appoints Virtus
Fixed Income Advisers, LLC (the "Subadviser") as a discretionary series adviser to invest and reinvest the assets of
the Series designated by the Adviser as set forth on Schedule F attached hereto (the "Designated Series") on the terms
and conditions set forth herein. The services of the Subadviser hereunder are not to be deemed exclusive; the Subadviser may render
services to others and engage in other activities that do not conflict in any material manner with the Subadviser's performance
hereunder. The Adviser and the Trust understand and agree that the Subadviser may do business as Seix Investment Advisors for any
or all of the term of this Agreement.

2. <u>Acceptance of Appointment; Standard of Performance</u>. The Subadviser accepts its appointment
as a discretionary series adviser of the Designated Series and agrees, subject to the oversight of the Board of Trustees of the
Trust (the "Board") and the Adviser, to use its best professional judgment to make investment decisions for the Designated
Series in accordance with the provisions of this Agreement and as set forth in Schedule D attached hereto and made a part hereof.
The Subadviser shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided
or authorized (whether herein or otherwise), have no authority or obligation to act for or represent the Adviser, the Trust or
the Series in any way.

3. <u>Services of Subadviser</u>. In providing management services to the Designated Series, the Subadviser
shall be subject to the investment objectives, policies and restrictions of the Trust as they apply to the Designated Series and
as set forth in the Trust's then current prospectus ("Prospectus") and statement of additional information ("Statement
of Additional Information") filed with the Securities and Exchange Commission (the "SEC") as part of the Trust's
registration statement (the "Registration Statement"), as may be periodically amended and provided to the Subadviser
by the Adviser, and to the investment restrictions set forth in the Act and the Rules thereunder, to the supervision and control
of the Board, and to instructions from the Adviser. The Subadviser shall not, without the Trust's prior written approval,
effect any transactions that would cause the Designated Series at the time of the transaction to be out of compliance with any
of such restrictions or policies.

4. <u>Transaction Procedures</u>. All series transactions for the Designated Series shall be consummated
by payment to, or delivery by, the custodian(s) from time to time designated by the Trust (the "Custodian"), or such
depositories or agents as may be designated by the Custodian in writing, of all cash and/or securities due to

or from the Designated Series. The Subadviser shall not have possession or custody of such cash and/or securities or any responsibility or liability with respect to such custody. The Subadviser shall advise the Custodian and confirm in writing to the Trust all investment orders for the Designated Series placed by it with brokers and dealers at the time and in the manner set forth in Schedule A hereto (as amended from time to time). The Trust shall issue to the Custodian such instructions as may be appropriate in connection with the settlement of any transaction initiated by the Subadviser. The Trust shall be responsible for all custodial arrangements and the payment of all custodial charges and fees, and, upon giving proper instructions to the Custodian, the Subadviser shall have no responsibility or liability with respect to custodial arrangements or the acts, omissions or other conduct of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Allocation of Brokerage</u>. The Subadviser shall have authority and discretion to select brokers
and dealers to execute Designated Series transactions initiated by the Subadviser, and to select the markets on or in which the
transactions will be executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In placing orders for the sale and purchase of Designated Series securities for the Trust, the
Subadviser's primary responsibility shall be to seek the best execution of orders at the most favorable prices. However,
this responsibility shall not obligate the Subadviser to solicit competitive bids for each transaction or to seek the lowest available
commission cost to the Trust, as long as the Subadviser reasonably believes that the broker or dealer selected by it can be expected
to obtain a "best execution" market price on the particular transaction and determines in good faith that the commission
cost is reasonable in relation to the value of the brokerage and research services (as defined in Section 28(e)(3) of the Securities
Exchange Act of 1934, as amended) provided by such broker or dealer to the Subadviser, viewed in terms of either that particular
transaction or of the Subadviser's overall responsibilities with respect to its clients, including the Trust, as to which
the Subadviser exercises investment discretion, notwithstanding that the Trust may not be the direct or exclusive beneficiary of
any such services or that another broker may be willing to charge the Trust a lower commission on the particular transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser may manage other portfolios and expects that the Trust and other portfolios the
Subadviser manages will, from time to time, purchase or sell the same securities. The Subadviser may aggregate orders for the purchase
or sale of securities on behalf of the Designated Series with orders on behalf of other portfolios the Subadviser manages. Securities
purchased or proceeds of securities sold through aggregated orders, as well as expenses incurred in the transaction, shall be allocated
to the account of each portfolio managed by the Subadviser that bought or sold such securities in a manner considered by the Subadviser
to be equitable and consistent with the Subadviser's fiduciary obligations in respect of the Designated Series and to such
other accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall not execute any transactions for the Designated Series with a broker or dealer
that is an "affiliated person" (as defined in the Act) of (i) the Designated Series; (ii) another Series; (iii) the
Adviser; (iv) the Subadviser or any other subadviser to the Designated Series; (v) a principal underwriter of the Trust's
shares; or (vi) any other affiliated person of the Designated Series, in each case, unless such transactions are permitted by applicable
law or regulation and carried out in compliance with any applicable policies and procedures of the Trust. The Trust shall provide
the Subadviser with a list of brokers and dealers that are "affiliated persons" of the Trust, the Adviser or the principal
underwriter, and applicable policies and procedures. Upon the request of the Adviser, the Subadviser shall promptly, and in any
event within three business days of a request, indicate whether any entity identified by the Adviser in such request is an "affiliated
person," as such term is defined in the Act, of (i) the Subadviser or (ii) any affiliated person of the Subadviser, subject
in each case to any confidentiality requirements applicable to the Subadviser and/or its affiliates. Further, the Subadviser shall
provide the Adviser with a list of (x) each broker-dealer entity that is an "affiliated person," as such term is defined
in the Act, of the Subadviser and (y) each affiliated person of the Subadviser that has outstanding publicly-issued debt or equity.
Each of the Adviser and the Subadviser agrees promptly to update such list(s) whenever the Adviser or the Subadviser becomes aware
of any changes that should be added to or deleted from such list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Consistent with its fiduciary obligations to the Trust in respect of the Designated Series and
the requirements of best price and execution, the Subadviser may, under certain circumstances, arrange to have purchase and sale
transactions effected directly between the Designated Series and another account managed by the Subadviser ("cross transactions"),
provided that such transactions are carried out in accordance with applicable law or regulation and any applicable policies and
procedures of the Trust. The Trust shall provide the Subadviser with applicable policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Proxies and Other Shareholder Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Unless the Adviser or the Trust gives the Subadviser written instructions to the contrary, the
Subadviser, or a third party designee acting under the authority and supervision of the Subadviser, shall review all proxy solicitation
materials and be responsible for voting and handling all proxies in relation to the assets of the Designated Series. Unless the
Adviser or the Trust gives the Subadviser written instructions to the contrary, provided that the Adviser has reviewed the Subadviser's
proxy voting procedures then in effect and determined them to comply with the requirements of the Trust's proxy voting policy,
the Subadviser will, in compliance with the Subadviser's proxy voting procedures then in effect, vote or abstain from voting,
all proxies solicited by or with respect to the issuers of securities in which assets of the Designated Series may be invested.
The Adviser shall cause the Custodian, the Administrator or another party, to forward promptly to the Subadviser all proxies upon
receipt, so as to afford the Subadviser a reasonable amount of time in which to determine how to vote such proxies. The Subadviser
agrees to provide the Adviser in a timely manner with any changes to the Subadviser's proxy voting procedures. The Subadviser
further agrees to provide the Adviser in a timely manner with a record of votes cast containing all of the voting information required
by Form N-PX in an electronic format to enable the Trust to file Form N-PX as required by Rule 30b1-4 under the Act. The Subadviser
shall provide disclosure regarding its proxy voting policies and procedures in accordance with the requirements of Form N-1A for
inclusion in the Registration Statement of the Trust. During any annual period in which the Subadviser has voted proxies for the
Trust, the Subadviser shall, as may reasonably be requested by the Adviser, certify as to its compliance with its proxy voting
policies and procedures and applicable federal statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Subadviser is authorized to deal with reorganizations, exchange
 offers and other voluntary corporate actions with respect to securities
 held in the Designated Series in such manner as the Subadviser
 deems advisable, unless the Trust or the Adviser otherwise specifically
 directs in writing. It is acknowledged and agreed that
 the Subadviser shall not be responsible for the filing of claims
 (or otherwise causing the Trust to participate) in class action
 settlements or similar proceedings in which shareholders may participate
 related to securities currently or previously associated with
 the Designated Series. With
 the Adviser's approval, on a case-by-case basis the Subadviser
 may obtain the authority and take on the responsibility to: (i)
 identify, evaluate and pursue legal claims, including commencing
 or defending suits, affecting the securities held at any time
 in the Designated Series, including claims in bankruptcy, class
 action securities litigation and other litigation; (ii) participate
 in such litigation or related proceedings with respect to such
 securities as the Subadviser deems appropriate to preserve or
 enhance the value of the Designated Series,
 including filing proofs of claim and related documents and serving
 as "lead plaintiff" in class action lawsuits; (iii)
 exercise generally any of the powers of an owner with respect
 to the supervision and management of such rights or claims, including
 the settlement, compromise or submission to arbitration of any
 claims, the exercise of which the Subadviser deems to be in the
 best interest of the Designated Series
 or required by applicable law, including ERISA, and (iv) employ
 suitable agents, including legal counsel, and to pay their reasonable
 fees, expenses and related costs from the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Prohibited Conduct</u>. In accordance with Rule 12d3-1 and Rule 17a-10 under the 1940 Act
 and any other applicable law or regulation, the Subadviser's responsibility regarding investment advice hereunder is
 limited to the Designated Series, and the Subadviser will not consult with any other investment advisory firm that provides
 investment advisory services to the Trust or any other investment company sponsored by Virtus Investment Partners, Inc. or
 its affiliates regarding transactions in securities or other assets for the Trust. The Trust shall provide the Subadviser
 with a list of investment companies sponsored by Virtus Investment Partners, Inc. and its
affiliates, and the Subadviser shall be in breach of the foregoing provision only if the

investment company is included in such a list provided to the Subadviser prior to such prohibited action. The Subadviser, and its affiliates and agents, shall refrain from making any written or oral statements concerning the Designated Series, the Trust, any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates, and any substantially similar products, that are reasonably likely to mislead investors regarding either (i) the services rendered by the Subadviser to the Designated Series or the Trust, or (ii) the Designated Series, including without limitation with respect to the investment strategies and/or risks, and/or the performance thereof. In addition, the Subadviser shall not, without the prior written consent of the Trust and the Adviser, delegate any obligation assumed pursuant to this Agreement to any affiliated or unaffiliated third party. The parties acknowledge and agree that the Subadviser may, in its discretion, utilize personnel employed by affiliates of the Subadviser to perform services pursuant to this Agreement by way of a "participating affiliate" agreement in accordance with, and to the extent permitted by, the Act and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including the published interpretations thereof by the SEC or its staff. Such participating affiliate agreement shall subject the personnel providing such services to the Subadviser's compliance and other programs with respect to their activities on behalf of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Subadviser assumes full responsibility for all actions, and any failure to act, by each person utilized by the Subadviser to perform services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Information and Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall keep the Trust and the Adviser informed of developments relating to its duties
as Subadviser of which the Subadviser has, or should have, knowledge that would materially affect the Designated Series. In this
regard, the Subadviser shall provide the Trust, the Adviser and their respective officers with such periodic reports concerning
the obligations the Subadviser has assumed under this Agreement as the Trust and the Adviser may from time to time reasonably request.
In addition, prior to each meeting of the Board, the Subadviser shall provide the Adviser and the Board with reports regarding
the Subadviser's management of the Designated Series during the most recently completed quarter, which reports: (i) shall
include Subadviser's representation that its performance of its investment management duties hereunder is in compliance with
the Designated Series' investment objectives and practices, the Act and applicable rules and regulations under the Act, and
the diversification and minimum "good income" requirements of Subchapter M under the Internal Revenue Code of 1986,
as amended, and (ii) otherwise shall be in such form as may be reasonably required by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of the Adviser and the Subadviser shall provide the other party with a list, to the best of
the Adviser's or the Subadviser's respective knowledge, of each affiliated person (and any affiliated person of such
an affiliated person) of the Adviser or the Subadviser, as the case may be, and each of the Adviser and Subadviser agrees promptly
to update such list whenever the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted from
the list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall also provide the Adviser with any information reasonably requested by the
Adviser regarding its management of the Designated Series required for any shareholder report, amended Registration Statement,
or Prospectus supplement to be filed by the Trust with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Subadviser shall promptly notify the Adviser and the Trust in the event that any of the Subadviser's
employees or contractors raise any issues concerning any actual or potential material violation of any law, regulation or internal
policy of the Subadviser, in each case actually or potentially affecting the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Fees for Services</u>. The compensation of the Subadviser for its services under this Agreement
shall be calculated and paid by the Adviser in accordance with the attached Schedule C. Pursuant to the Investment Advisory Agreement
between the Trust and the Adviser, the Adviser is solely responsible for the payment of fees to the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. Absent the
Subadviser's breach of this Agreement or the willful misconduct, bad faith, gross negligence, or reckless disregard of the
obligations or duties hereunder on the part of the Subadviser,

or its officers, directors, partners, agents, employees and controlling persons, the Subadviser shall not be liable for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any position; *provided, however,* that the Subadviser shall be responsible for, and shall indemnify and hold the Trust and the Adviser and each of their respective directors or trustees, members, officers, employees and shareholders, and each person, if any, who controls the Trust or the Adviser within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act"), harmless against, any and all Losses (as defined below) arising out of or resulting from a "Trade Error" (as defined in the compliance policies and procedures of the Trust), as the same may be amended from time to time) caused by the negligent action or negligent omission of the Subadviser or its agent. The Adviser agrees to provide prior written notice to the Subadviser of any material changes to the definition of Trade Error becoming effective with respect to the Designated Series unless, in the reasonable discretion of the Adviser, such change must become effective earlier due to any applicable law, rule, regulation or court order. It is acknowledged and agreed that any Trade Error that results in a gain to the Designated Series shall inure to the benefit of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Designated Series is a third party beneficiary of the indemnity granted in this Section 10, and the indemnity is intended to cover claims by the Designated Series, the Trust (on behalf of the Designated Series), or the Adviser against the Subadviser for recovery pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Confidentiality</u>. Subject to the duty of the Subadviser and the Trust to comply with applicable
law, including any demand of any regulatory or taxing authority having jurisdiction, the parties hereto shall treat as confidential
all information pertaining to the Designated Series and the actions of the Subadviser and the Trust in respect thereof. Notwithstanding
the foregoing, the Trust and the Adviser agree that the Subadviser may (i) disclose in marketing materials and similar communications
that the Subadviser has been engaged to manage assets of the Designated Series
pursuant to this Agreement, and (ii) include performance statistics regarding the Designated Series
in composite performance statistics regarding one or more groups of Subadviser's clients published or included in any of the foregoing
communications, provided that the Subadviser does not identify any performance statistics as relating specifically to the Designated
Series.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>. This Agreement shall terminate automatically in the event of its assignment,
as that term is defined in Section 2(a)(4) of the Act. The Subadviser shall notify the Trust and the Adviser in writing sufficiently
in advance of any proposed change of control, as defined in Section 2(a)(9) of the Act, as will enable the Trust to consider whether
an assignment as defined in Section 2(a)(4) of the Act will occur, and to take the steps necessary to enter into a new contract
with the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Representations, Warranties and Agreements of the Subadviser</u>. The Subadviser represents,
warrants and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It is duly organized, validly
 existing, and in good standing under the laws of the jurisdiction
 of its organization, and is qualified to do business in each jurisdiction
 in which failure to be so qualified would reasonably be expected
 to have a material adverse effect upon it. It (i) is registered
 as an "investment adviser" under the Investment Advisers
 Act of 1940, as amended ("Advisers Act") and will
 continue to be so registered for so long as this Agreement remains
 in effect; (ii) is not prohibited by the Act or the Advisers Act
 from performing the services contemplated by this Agreement; provided,
 however, that the Subadviser makes no representation or warranty
 with regard to the approval of this Agreement by the Board under
 Section 15 of the Act; (iii) has appointed a Chief Compliance
 Officer under Rule 206(4)-7 under the Advisers Act; (iv) has adopted
 written policies and procedures that are reasonably designed to
 prevent violations of the Advisers Act from occurring, and correct
 promptly any violations that have occurred, and will provide notice
 promptly to the Adviser of any material violations relating to
 the Trust; (v) has materially met and will seek to continue to
 meet for so long as this Agreement remains in effect, any other
 applicable federal or state requirements, or the applicable requirements
 of any regulatory or industry self-regulatory agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. It is either registered as a commodity
 trading advisor or duly exempt from such registration with the
 U.S. Commodity Futures Trading Commission ("CFTC"),
 and it will maintain such registration or exemption continuously
 during the term of this Agreement or, alternatively, will become
 a commodity trading advisor duly registered with the CFTC and
 will be a member in good standing with the National Futures Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It will maintain, keep current and preserve on behalf of the Trust, records in the manner required
or permitted by the Act and the Rules thereunder including the records identified in Schedule B (as Schedule B may be amended from
time to time). The Subadviser agrees that such records are the property of the Trust, and shall be surrendered to the Trust or
to the Adviser as agent of the Trust promptly upon request of either. The Trust acknowledges that the Subadviser may retain copies
of all records required to meet the record retention requirements imposed by law and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It shall maintain a written code
 of ethics (the "Code of Ethics") complying with the
 requirements of Rule 204A-1 under the Advisers Act and Rule 17j-1
 under the Act and shall provide the Trust and the Adviser with
 a copy of the Code of Ethics and evidence of its adoption. It
 shall institute procedures reasonably necessary to prevent Access
 Persons (as defined in Rule 17j-1) from violating its Code of
 Ethics. The Subadviser acknowledges receipt of the written code
 of ethics adopted by and on behalf of the Trust. Each calendar
 quarter while this Agreement is in effect, a duly authorized compliance
 officer of the Subadviser shall certify to the Trust and to the
 Adviser that the Subadviser has complied with the requirements
 of Rules 204A-1 and 17j-1 during the previous calendar quarter
 and that there has been no material violation of its Code of Ethics,
 or of Rule 17j-1(b), or that any persons covered under its Code
 of Ethics has divulged or acted upon any material, non-public
 information, as such term is defined under relevant securities
 laws, and if such a violation of the code of ethics of the Trust
 has occurred, or if such a violation of its Code of Ethics has
 occurred, that appropriate action was taken in response to such
 violation. The Subadviser shall notify the Adviser promptly of
 any material violation of the Code of Ethics involving the Trust.
 The Subadviser will provide such additional information regarding
 violations of the Code of Ethics directly affecting the Trust
 as the Trust or its Chief Compliance Officer on behalf of the
 Trust or the Adviser may reasonably request in order to assess
 the functioning of the Code of Ethics or any harm caused to the
 Trust from a violation of the Code of Ethics. Further, the Subadviser
 represents that it has policies and procedures regarding the detection
 and prevention of the misuse of material, nonpublic information
 by the Subadviser and its employees. The Subadviser will explain
 what it has done to seek to ensure such compliance in the future.
 Annually, the Subadviser shall furnish to the Trust and the Adviser
 a written report which complies with the requirements of Rule
 17j-1 concerning the Subadviser's Code of Ethics. The Subadviser
 shall permit the Trust and the Adviser to examine the reports
 required to be made by the Subadviser under Rules 204A-1(b) and
 17j-1(d)(1) and this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It has adopted and implemented, and throughout the term of this Agreement shall maintain in effect
and implement, policies and procedures reasonably designed to prevent, detect and correct violations by the Subadviser and its
supervised persons, and, to the extent the activities of the Subadviser in respect of the Trust could affect the Trust, by the
Trust, of "federal securities laws" (as defined in Rule 38a-1 under the Act), and that the Subadviser has provided
the Trust with true and complete copies of its policies and procedures (or summaries thereof) and related information reasonably
requested by the Trust and/or the Adviser. The Subadviser agrees to cooperate with periodic reviews by the Trust's and/or
the Adviser's compliance personnel of the Subadviser's policies and procedures, their operation and implementation
and other compliance matters and to provide to the Trust and/or the Adviser from time to time such additional information and certifications
in respect of the Subadviser's policies and procedures, compliance by the Subadviser with federal securities laws and related
matters as the Trust's and/or the Adviser's compliance personnel may reasonably request. The Subadviser agrees to promptly
notify the Adviser of any compliance violations which affect the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Subadviser will immediately notify the Trust and the Adviser of the occurrence of any event
which would disqualify the Subadviser from serving as an investment adviser of an investment company pursuant to Section 9 of the
Act or otherwise. The Subadviser will also immediately notify the Trust and the Adviser if it is served or otherwise receives notice
of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, including
but not limited to the SEC and the CFTC, involving the affairs of the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. To the best of its knowledge,
 there are no material pending, threatened, or contemplated actions,
 suits, proceedings, or investigations before or by any court,
 governmental, administrative or self-regulatory body, board of
 trade, exchange, or arbitration panel to which it or any of its
 directors, officers, employees, partners, shareholders, members
 or principals, or any of its affiliates is a party or to which
 it or its affiliates or any of its or its affiliates' assets
 are subject, nor has it or any of its affiliates received any
 notice of an investigation, inquiry, or dispute by any court,
 governmental, administrative, or self-regulatory body, board of
 trade, exchange, or arbitration panel regarding any of its or
 their activities, which might reasonably be expected to result
 in (i) a material adverse effect on the Trust or (ii) a material
 adverse change in the Subadviser's condition (financial
 or otherwise) or business, or which might reasonably be expected
 to materially impair the Subadviser's ability to discharge
 its obligations under this Agreement. The Subadviser will also
 immediately notify the Trust and the Adviser if the representation
 in this Section 13.G is no longer accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The Subadviser shall promptly
 notify the Adviser of any changes in its executive officers, partners
 or in its key personnel, including, without limitation, any change
 in the portfolio manager(s) responsible for the Designated Series
 or if there is an actual or expected change in control or management
 of the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Personal Liability</u>. Reference is hereby made to the Declaration of Trust establishing
the Trust, a copy of which has been filed with the SEC, and to any and all amendments thereto so filed or hereafter filed. The
name "Virtus Strategy Trust" refers to the Board under said Declaration of Trust, as trustees and not personally, and
no trustee, shareholder, officer, agent or employee of the Trust shall be held to any personal liability in connection with the
affairs of the Trust; only the trust estate under said Declaration of Trust is liable. Without limiting the generality of the foregoing,
neither the Subadviser nor any of its officers, directors, partners, shareholders or employees shall, under any circumstances,
have recourse or cause or willingly permit recourse to be had directly or indirectly to any personal, statutory, or other liability
of any shareholder, Trustee, officer, agent or employee of the Trust or of any successor of the Trust, whether such liability now
exists or is hereafter incurred for claims against the trust estate.

&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendment</u>. This Agreement, together with
 the Schedules attached hereto, constitutes the entire agreement of the parties with respect to
 the subject matter hereof and supersedes any prior written or oral agreements pertaining to the
 subject matter of this Agreement. This Agreement may be amended at any time, but only by written
 agreement among the Subadviser, the Adviser and the Trust, which amendment, other than amendments
 to Schedules A, B, D, E and F, is subject to the approval of the Board (including those trustees
 who are not "interested persons" of the Trust) and, if required by the Act or applicable
 SEC rules and regulations, a vote of a majority of the Designated Series' outstanding voting
 securities; provided, however, that, notwithstanding the foregoing, this Agreement may be amended
 or terminated in accordance with any exemptive order issued to the Adviser, the Trust or its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Effective Date; Term</u>. This Agreement shall become effective
 on the date set forth on the first page of this Agreement, and shall continue in effect until
 December 31, 2023. The Agreement shall continue from year to year thereafter only so long as its
 continuance has been specifically approved at least annually (i) by a vote of the Board of the
 Trust or by vote of a majority of outstanding voting securities of the Designated Series and (ii)
 by vote of a majority of the trustees who are not interested persons of the Trust (as defined
 in the Act) or of any person party to this Agreement, cast in person (or otherwise, as
consistent with applicable laws, regulations and related guidance and relief) at a meeting called for the purpose of such
approval.

&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Termination</u>. This Agreement may be terminated at any time without payment of any penalty
(i) by the Board, or by a vote of a majority of the outstanding voting securities of the Designated Series, upon 60 days'
prior written notice to the Adviser and the Subadviser, (ii) by the Subadviser upon 60 days' prior written notice to the
Adviser and the Trust, or (iii) by the Adviser upon 60 days' prior written notice to the Subadviser. This Agreement may also
be terminated, without the payment of any penalty, by the Adviser or the Board immediately (i) upon the material breach by the
Subadviser of this Agreement or (ii) at the terminating party's discretion, if the Subadviser or any officer, director or
key portfolio manager of the Subadviser is accused in any regulatory, self-regulatory or judicial investigation or proceeding as
having violated the federal securities laws or engaged in criminal conduct. This Agreement shall terminate automatically and immediately
upon termination of the Advisory Agreement. This Agreement shall terminate automatically and immediately in the event of its assignment,
as such term is defined in and interpreted under the terms of the 1940 Act and the rules promulgated thereunder. Termination of
this Agreement will not affect any outstanding orders or transactions or any legal rights or obligations which may already have
arisen. Transactions in progress at the date of termination will be completed by the Subadviser as soon as reasonably practicable.
Provisions of this Agreement relating to indemnification and the preservation of records, as well as any responsibilities or obligations
of the parties hereto arising from matters initiated prior to termination, shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>. To the extent that state law is not preempted by the provisions of any law
of the United States heretofore or hereafter enacted, as the same may be amended from time to time, this Agreement shall be administered,
construed and enforced according to the laws of the Commonwealth of Massachusetts applicable to contracts entered into and fully
performed within the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. If any term or condition of this Agreement shall be invalid or unenforceable
to any extent or in any application, then the remainder of this Agreement shall not be affected thereby, and each and every term
and condition of this Agreement shall be valid and enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices.</u> Any notice or other communication required to be given pursuant to this Agreement
shall be deemed duly given if delivered personally or by overnight delivery service or mailed by certified or registered mail,
return receipt requested and postage prepaid, or sent by facsimile or e-mail transmission addressed to the parties at their respective
addresses set forth below, or at such other address as shall be designated by any party in a written notice to the other party.

---

| | |
|:---|:---|
| (a) | To the Adviser or the Trust at: |
|  | Virtus Investment Advisers, Inc. |
|  | One Financial Plaza |
|  | Hartford, Connecticut 06103 |
|  | Attn: Legal Counsel |
|  | Telephone: (860) 263-4790 |
|  | Facsimile: (860) 241-1028 |
| (b) | To the Subadviser at: |
|  | Virtus Fixed Income Advisers, LLC |
|  | One Maynard Drive, Suite 3200 |
|  | Park Ridge, NJ 07646 |
|  | Attn: Chief Compliance Officer |
|  | Telephone: (201) 391-0300 |
|  | Facsimile: (201) 391-5023 |
|  | Email: ddillon@seixadvisors.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Certifications.</u> The Subadviser shall timely provide to the Adviser and the Trust, all information
and documentation they may reasonably request as necessary or appropriate in order for the Adviser and the Board to oversee the
activities of the Subadviser and in connection with the compliance by any of them with the requirements of this Agreement, the
Registration Statement, the policies and procedures referenced herein, and any applicable law, including, without limitation, (i)
information and commentary relating to the Subadviser or the Designated Series for the Trust's annual and semi-annual reports,
in a format reasonably approved by the Adviser, together with (A) a certification that such information and commentary discuss
all of the factors that materially affected the performance of the Designated Series, including the relevant market conditions
and the investment techniques and strategies used and (B) additional certifications related to the Subadviser's management
of the Trust in order to support the Trust's filings on Form N-CSR and other applicable forms, and the Trust's Principal
Executive Officer's and Principal Financial Officer's certifications under Rule 30a-2 under the Act, thereon; (ii)
within 5 business days of a quarter-end, a quarterly certification with respect to compliance and operational matters related to
the Subadviser and the Subadviser's management of the Designated Series (including, without limitation, compliance with the
applicable procedures), in a format reasonably requested by the Adviser, as it may be amended from time to time; and (iii) an annual
certification from the Subadviser's Chief Compliance Officer, appointed under Rule 206(4)-7 under the Advisers Act with respect
to the design and operation of the Subadviser's compliance program, in a format reasonably requested by the Adviser or the
Trust. Without limiting the foregoing, the Subadviser shall provide a quarterly certification in a form substantially similar to
that attached as Schedule E.

&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall indemnify and hold harmless the Adviser from and against any and all claims,
losses, liabilities, or damages (including reasonable attorney's fees and other related expenses) (collectively, "Losses")
arising from the Subadviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under
this Agreement in the performance of its obligations under this Agreement; provided, however, that the Subadviser's obligation
under this Section 22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the
Adviser, is caused by or is otherwise directly related to (i) any breach by the Adviser of its representations or warranties made
herein, (ii) any willful misconduct, bad faith, reckless disregard or negligence of the Adviser in the performance of any of its
duties or obligations hereunder, or (iii) any untrue statement of a material fact contained in the Registration Statement, proxy
materials, reports, advertisements, sales literature, or other materials pertaining to the Trust or the omission to state therein
a material fact known to the Adviser that was required to be stated therein or necessary to make the statements therein not misleading,
if such statement or omission was made in reliance upon information furnished to the Subadviser or the Trust, or the omission of
such information, by the Adviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Adviser shall indemnify and hold harmless the Subadviser from and against any and all Losses
arising from the Adviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this
Agreement in the performance of its obligations under this Agreement; provided, however, that the Adviser's obligation under
this Section 22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Subadviser,
is caused by or is otherwise directly related to (i) any breach by the Subadviser of its representations or warranties made herein,
(ii) any willful misconduct, bad faith, reckless disregard or negligence of the Subadviser in the performance of any of its duties
or obligations hereunder, or (iii) any untrue statement of a material fact contained in the Registration Statement, proxy materials,
reports, advertisements, sales literature, or other materials pertaining to the Trust or the omission to state therein a material
fact known to the Subadviser that was required to be stated therein or necessary to make the statements therein not misleading,
if such statement or omission was made in reliance upon information furnished to the Adviser or the Trust, or the omission of such
information, by the Subadviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A party seeking indemnification hereunder (the "Indemnified Party") will (i) provide
prompt written notice to the other of any claim ("Claim") for which it intends to seek indemnification, (ii) grant
control of the defense and /or settlement of the Claim to the other party, and (iii) cooperate with the other party in the defense
thereof. The Indemnified Party will have the right at its own expense to participate in the defense of any Claim, but will not
have the right to control the defense, consent to judgment or agree to the settlement of any Claim without the written consent
of the other party. The party providing the indemnification will not consent to the entry of any judgment or enter any settlement
which (i) does not include, as an unconditional term, the release by the claimant of all liabilities for Claims against the Indemnified
Party or (ii) which otherwise adversely affects the rights of the Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. No party will be liable to another party for consequential damages under any provision of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Receipt of Disclosure Documents</u>. The Trust and the Adviser acknowledge receipt, at least
48 hours prior to entering into this Agreement, of a copy of Part 2 of the Subadviser's Form ADV containing certain information
concerning the Subadviser and the nature of its business. The Subadviser will, promptly after making any amendment to its Form
ADV, furnish a copy of such amendment to the Adviser. On an annual basis and upon request, the Subadviser will provide a copy of
its audited financial statements, including balance sheets, for the two most recent fiscal years and, if available, each subsequent
fiscal quarter. At the time of providing such information, the Subadviser shall describe any material adverse change in its financial
condition since the date of its latest financial statement.

&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts; Fax Signatures</u>. This Agreement may
be executed in any number of counterparts (including executed counterparts delivered and exchanged by facsimile transmission) with
the same effect as if all signing parties had originally signed the same document, and all counterparts shall be construed together
and shall constitute the same instrument. For all purposes, signatures delivered and exchanged by facsimile transmission shall
be binding and effective to the same extent as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Bankruptcy and Related Events</u>. Each
 of the Adviser and the Subadviser
 agrees that it will provide
 prompt notice to the other
 in the event that: (i) it makes
 an assignment for the benefit
 of creditors, files a voluntary
 petition in bankruptcy, or
 is otherwise adjudged bankrupt
 or insolvent by a court of
 competent jurisdiction; or
 (ii) a material event occurs
 that could reasonably be expected
 to adversely impair its ability
 to perform this Agreement.
 The Adviser further agrees
 that it will provide prompt
 notice to the Subadviser in
 the event that the Trust ceases
 to be registered as an investment
 company under the Act.

**[signature page follows]**

---

| | | |
|:---|:---|:---|
| **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley | &nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley |
|  | Name: | W. Patrick Bradley |
|  | Title: | Executive Vice President, Chief Financial Officer & Treasurer |
| **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

**ACCEPTED:**

**VIRTUS FIXED INCOME ADVISERS, LLC** 

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Deirdre A. Dillon | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Deirdre A. Dillon |
|  | Name: | Deirdre A. Dillon |
|  | Title: | Vice President and Chief Compliance Officer |

---

---

| | | |
|:---|:---|:---|
| SCHEDULES: | A. | Operational Procedures |
|  | B. | Record Keeping Requirements |
|  | C. | Fee Schedule |
|  | D. | Subadviser Functions |
|  | E. | Form of Sub-Certification |
|  | F. | Designated Series |

---

**<u>SCHEDULE A</u>**

 **OPERATIONAL PROCEDURES**

In order to minimize operational problems, it will be necessary for a flow of information to be supplied in a secure manner by Subadviser to the Trust's service providers, including: The Bank of New York Mellon (the "Custodian"), Virtus Fund Services, LLC (the "Fund Administrator"), BNY Mellon Investment Servicing (US) Inc., (the "Accounting Agent"), any Prime Broker to the Series, and all other Counterparties/Brokers as required.

The Subadviser must furnish the Trust's service providers with required daily information as to executed trades in a format and time-frame agreed to by the Subadviser, Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties and designated persons of the Trust. Trade information sent to the Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties must include all necessary data within the required timeframes to allow such parties to perform their obligations to the Designated Series.

The Accounting Agent specifically requires a daily trade blotter with a summary of all trades, in addition to trade feeds, including, if no trades are executed, a report to that effect. Daily information as to executed trades for same-day settlement and future trades must be sent to the Accounting Agent no later than 5:00 p.m. (Eastern Time) on the day of the trade each day the Trust is open for business. All other executed trades must be delivered to the Accounting Agent on trade date +1 by 11:00 a.m. (Eastern Time) to ensure that they are part of the Designated Series' NAV calculation. (Subadviser will be responsible for reimbursement to the Trust for any loss caused by the Subadviser's failure to comply with the requirements of this Schedule A.) On fiscal quarter ends and calendar quarter ends, all trades must be delivered to the Accounting Agent by 4:30 p.m. (Eastern Time) for inclusion in the financial statements of the Designated Series. The data to be sent to the Accounting Agent and/or Fund Administrator will be as agreed by the Subadviser, Fund Administrator, Accounting Agent and designated persons of the Trust and shall include (without limitation) the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Transaction type (e.g., purchase, sale, open, close, put call);

2. Security type (e.g., equity, fixed income, swap, future, option, short, long);

3. Security name;

4. Exchange identifier (e.g., CUSIP, ISIN, Sedol, OCC Symbol) (as applicable);

5. Number of shares and par, original face, contract amount, notional amount;

6. Transaction price per share (clean if possible);

7. Strike price;

8. Aggregate principal amount;

9. Executing broker;

10. Settlement agent;

11. Trade date;

12. Settlement date;

13. Aggregate commission or if a net trade;

14. Interest purchased or sold from interest bearing security;

15. Net proceeds of the transaction;

16. Trade commission reason: best execution, soft dollar or research (to be provided quarterly);

17. Derivative terms;

18. Non-deliverable forward classification (to be provided quarterly);

19. Maturity/expiration date; and

20. Details of margin and collateral movement.

When opening accounts with brokers for, and in the name of, the Trust, the account must be a cash account. No margin accounts are to be opened by the Subadviser in the name of the Trust or any Series except as specifically approved by the Trust and the Fund Administrator. Delivery instructions are as specified by the Custodian. The Custodian will supply the Subadviser daily with a cash availability report via access to the Custodian website, or by email or by facsimile and the Accounting Agent will provide a five-day cash projection. This will normally be done by email or, if email is unavailable, by another form of immediate written communication, so that the Subadviser will know the amount available for investment purposes.

**<u>SCHEDULE B</u>**

 **RECORDS TO BE MAINTAINED BY THE SUBADVISER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (Rule 31a-1(b)(5) and (6)) A record of each brokerage order, and all other series purchases and
sales, given by the Subadviser on behalf of the Trust for, or in connection with, the purchase or sale of securities, whether executed
or unexecuted. Such records shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The name of the broker;

B. The terms and conditions of the order and of any modifications or cancellations thereof;

C. The time of entry or cancellation;

D. The price at which executed;

E. The time of receipt of a report of execution; and

F. The name of the person who placed the order on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within ten (10) days after the end
of the quarter, showing specifically the basis or bases upon which the allocation of orders for the purchase and sale of series
securities to named brokers or dealers was effected, and the division of brokerage commissions or other compensation on such purchase
and sale orders. Such record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shall include the consideration given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The sale of shares of the Trust by brokers or dealers.

(ii) The supplying of services or benefits by brokers or dealers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust,

(b) The Adviser,

(c) The Subadviser, and

(d) Any person other than the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any other consideration other than the technical qualifications of the brokers and dealers as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shall show the nature of the services or benefits made available.

C. Shall describe in detail the application of any general or specific formula or other determinant
used in arriving at such allocation of purchase and sale orders and such division of brokerage commissions or other compensation.

D. Shall show the name of the person responsible for making the determination of such allocation and
such division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (Rule 31a-1(b)(10)) A record in the form of an appropriate memorandum identifying the person or
persons, committees or groups authorizing the purchase or sale of series securities. Where a committee or group makes an authorization,
a record shall be kept of the names of its members who participate in the authorization. There shall be retained as part of this
record: any memorandum, recommendation or instruction supporting or authorizing the purchase or sale of series securities and such
other information as is appropriate to support the authorization.\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Rule 31a-1(f)) Such accounts, books and other documents as are required to be maintained by registered
investment advisers by rule adopted under Section 204 of the Advisers Act, to the extent such records are necessary or appropriate
to record the Subadviser's transactions for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Records as necessary under Board-approved policies and procedures of the Trust, including without
limitation those related to valuation determinations.

\* Such information might include: current financial information, annual and quarterly reports, press releases, reports by analysts and from brokerage firms (including their recommendations, i.e., buy, sell, hold) or any internal reports or subadviser review.

**<u>SCHEDULE C</u>**

 **SUBADVISORY FEE**

For services provided to the Trust, the Adviser will pay to the Subadviser a fee, payable monthly in arrears, equal to 50% of the net advisory fee applicable to the Designated Series, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The total expenses of the Designated Series will be calculated in accordance with the terms of
its prospectus, including application of the gross advisory fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such total expenses will be reduced by the application of any applicable fee waiver and/or expense
limitation agreement, in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The net advisory fee applicable to the Designated Series will then be calculated by subtracting
from the gross advisory fee any amount required to be waived under the applicable fee waiver(s) and/or reimbursed under such applicable
expense limitation agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that the Adviser waives its entire fee and also assumes expenses of the Designated
Series pursuant to an applicable expense limitation agreement, the Subadviser will similarly waive its entire fee and will share
in the expense assumption by contributing 50% of the assumed amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If during the term of this Agreement the Adviser later recaptures some or all of the fees waived
or expenses assumed by the Adviser and the Subadviser together, the Adviser shall pay to the Subadviser a pro rata amount of the
fee(s)/expense(s) recaptured that is attributable to the Subadviser's portion of the original waiver/assumed expense.

**<u>SCHEDULE D</u>**

 **SUBADVISER FUNCTIONS**

With respect to managing the investment and reinvestment of the Designated Series' assets, the Subadviser shall provide, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An investment program for the Designated Series consistent with its investment objectives based
upon the development, review and adjustment of buy/sell strategies approved from time to time by the Board and the Adviser in paragraph
3 of this Subadvisory Agreement and implementation of that program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Periodic reports, on at least a quarterly basis, in form and substance acceptable to the Adviser,
with respect to: i) compliance with the Code of Ethics and the Trust's code of ethics; ii) compliance with procedures adopted
from time to time by the Board relative to securities eligible for resale under Rule 144A under the Securities Act of 1933, as
amended; iii) diversification of Designated Series assets in accordance with the then prevailing Prospectus and Statement of Additional
Information pertaining to the Designated Series and governing laws, regulations, rules and orders; iv) compliance with governing
restrictions relating to the fair valuation of securities for which market quotations are not readily available or considered "illiquid"
for the purposes of complying with the Designated Series' limitation on acquisition of illiquid securities; v) any and all
other reports reasonably requested in accordance with or described in this Agreement; vi) the implementation of the Designated
Series' investment program, including, without limitation, analysis of Designated Series performance; vii) compliance with
the Investment Guidelines; viii) description of material changes in policies or procedures; and ix) description of any significant
firm related developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after filing with the SEC an amendment to its Form ADV, a copy of such amendment to the
Adviser and the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Attendance by appropriate representatives of the Subadviser at meetings requested by the Adviser
or Board at such time(s) and location(s) as reasonably requested by the Adviser or Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice to the Board and the Adviser of the occurrence of any event which would disqualify the Subadviser
from serving as an investment adviser of an investment company pursuant to Section 9(a) of the Act or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable assistance in the valuation of securities including the participation of appropriate
representatives at fair valuation committee meetings.

**<u>SCHEDULE E</u>**

**FORM OF SUB-CERTIFICATION**

To:

Re: Subadviser's Form N-CSR Certification for the [Name of Designated Series].

From: [Name of Subadviser]

Representations in support of Investment Company Act Rule 30a-2 certifications of Form N-CSR.

[Name of Designated Series].

In connection with your certification responsibility under Rule 30a-2 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, I have reviewed the following information presented in the schedule of investments for the period ended [Date of Reporting Period] (the "Report") which forms part of the N-CSR, as applicable, for the Trust.

Schedule of Investments

Our organization has designed, implemented and maintained internal controls and procedures, designed for the purpose of ensuring the accuracy and completeness of relevant portfolio trade data transmitted to those responsible for the preparation of the Schedule of Investments. As of the date of this certification there have been no material modifications to these internal controls and procedures.

In addition, our organization has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such internal controls and procedures to ensure that material information is made known
to the appropriate groups responsible for servicing the above-mentioned mutual fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed and implemented controls which ensure that all transactions provided to the fund's
custodians/prime broker and accounting agent ("vendors") have been delivered in a secure manner by authorized persons, and
that access to the fund's records maintained by the fund's vendors is restricted to authorized persons of our
firm or, if applicable, any third party administrator utilized by our firm. Such controls include review of the authorized
persons at least annually and prompt communication of any changes to authorized persons to the fund's vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of our internal controls and procedures, as of a date within 90 days
prior to the date of this certification and we have concluded that such controls and procedures are effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In addition, to the best of my knowledge, there has been no fraud, whether or not material, that
involves our organization's management or other employees who have a significant role in our organization's control
and procedures as they relate to our duties as subadviser to the Designated Series.

I have read the draft of the Report which I understand to be current as of [Date of Reporting Period] and based on my knowledge, such draft of the Report, including the Fund Summary and Asset Allocations (as applicable), does not, with respect to the Designated Series, contain any untrue statement of a material fact or omit to state a material fact necessary to make the information contained therein, in light of the circumstances under which such information is presented, not misleading with respect to the period covered by such draft Report.

I have disclosed, based on my most recent evaluation, to the Designated Series' Chief Accounting Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant changes, deficiencies
and material weakness, if any, in the design or operation of the Subadviser's internal controls and procedures which could
adversely affect the Registrant's ability to

record, process, summarize and report financial data with respect to the Designated Series in a timely fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves the Subadviser's management or other employees
who have a significant role in the Subadviser's internal controls and procedures for financial reporting.

I certify that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Subadviser's Portfolio Manager(s) has/have complied with the restrictions and reporting
requirements of the Code of Ethics (the "Code"). The term Portfolio Manager is as defined in the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subadviser has complied with the Prospectus and Statement of Additional Information of the
Designated Series and the Policies and Procedures of the Designated Series as adopted by the Designated Series Board of Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I have no knowledge of any compliance violations except as disclosed in writing to the Virtus Compliance
Department by me or by the Subadviser's compliance administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Subadviser has complied with the rules and regulations of the 33 Act and 40 Act, and such other
regulations as may apply to the extent those rules and regulations pertain to the responsibilities of the Subadviser with respect
to the Designated Series as outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Since the submission of our most recent certification there have not been any divestments of securities
of issuers that conduct or have direct investments in business operations in Iran or Sudan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The subadviser has disclosed to the Adviser or the Designated Series any holdings required to be
disclosed under the Iran Threat Reduction and Syria Human Rights Act of 2012, the Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010, the Iran Sanctions Act of 1996, as Amended and Executive Orders 13224, and 13382.

This certification relates solely to the Designated Series named above and may not be relied upon by any other fund or entity.

The Subadviser does not maintain the official books and records of the above Designated Series. The Subadviser's records are based on its own portfolio management system, a record-keeping system that is not intended to serve as the Designated Series official accounting system. The Subadviser is not responsible for the preparation of the Report.

---

| | |
|:---|:---|
| [Name of Subadviser] | Date |
| [Name of Authorized Signer] |  |
| [Title of Authorized Signer] |  |

---

**<u>SCHEDULE F</u>**

**DESIGNATED SERIES**

Virtus Seix High Yield Income Fund

## Ex-99.(D)(7)

**Exhibit d.7**

**VIRTUS STRATEGY TRUST**

**Virtus Convertible Fund**

**<u>SUBADVISORY AGREEMENT</u>**

July 25, 2022

Voya Investment Management Co. LLC

230 Park Avenue

New York, NY 10169

---

| | |
|:---|:---|
| **RE:** | **Subadvisory Agreement** |

---

Ladies and Gentlemen:

Virtus Strategy Trust (the "Trust") is an open-end investment company of the series type registered under the Investment Company Act of 1940, as amended (the "Act"), and is subject to the rules and regulations promulgated thereunder. The shares of the Trust are offered or may be offered in several series (sometimes hereafter referred to as the "Series"), including Virtus Convertible Fund.

Virtus Investment Advisers, Inc. (the "Adviser") evaluates and recommends series advisers for the Series and is responsible for the day-to-day management of the Series.

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Appointment as a Subadviser</u>. The Adviser, being duly authorized, hereby appoints Voya Investment
Management Co. LLC (the "Subadviser") as a discretionary series adviser to invest and reinvest the assets of the Series designated
by the Adviser as set forth on Schedule F attached hereto (the "Designated Series") on the terms and conditions set forth
herein. The investment management services of the Subadviser are not to be deemed exclusive; the Subadviser may render services to others
and engage in other activities that do not conflict in any material manner with the Subadviser's performance hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Acceptance of Appointment; Standard of Performance</u>. The Subadviser accepts its appointment as a
discretionary series adviser of the Designated Series and agrees, subject to the oversight of the Board of Trustees of the Trust (the
"Board") and the Adviser, to use its best professional judgment to make investment decisions for the Designated Series in
accordance with the provisions of this Agreement and as set forth in Schedule D attached hereto and made a part hereof. The Subadviser
shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized (whether
herein or otherwise), have no authority or obligation to act for or represent the Adviser, the Trust or the Series in any way.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Services of Subadviser</u>. In providing management services to the Designated Series, the Subadviser
shall be subject to the investment objectives, policies and restrictions of the Trust as they apply to the Designated Series and as set
forth in the Trust's then current prospectus ("Prospectus") and statement of additional information ("Statement
of Additional Information") filed with the Securities and Exchange Commission (the "SEC") as part of the Trust's
registration statement (the "Registration Statement"), as may be periodically amended and provided to the Subadviser by the
Adviser, and to the investment restrictions set forth in the Act and the Rules thereunder, to the supervision and control of the Board,
and to instructions from the Adviser. The Subadviser shall not, without the Trust's prior written approval, effect any transactions
that would cause the Designated Series at the time of the transaction to be out of compliance with any of such restrictions or policies.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Transaction Procedures</u>. All series transactions for the Designated Series shall be consummated
by payment to, or delivery by, the custodian(s) from time to time designated by the Trust (the "Custodian"), or such depositories
or agents as may be designated by the Custodian in writing, of all cash and/or securities due to or from the Designated Series. The Subadviser
shall not have possession or custody of such cash and/or

securities or any responsibility or liability with respect to such custody. The Subadviser shall advise the Custodian and confirm in writing to the Trust all investment orders for the Designated Series placed by it with brokers and dealers at the time and in the manner set forth in Schedule A hereto (as amended from time to time). The Trust shall issue to the Custodian such instructions as may be appropriate in connection with the settlement of any transaction initiated by the Subadviser. The Trust shall be responsible for all custodial arrangements and the payment of all custodial charges and fees, and, upon giving proper instructions to the Custodian, the Subadviser shall have no responsibility or liability with respect to custodial arrangements or the acts, omissions or other conduct of the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Allocation of Brokerage</u>. The Subadviser shall have authority and discretion to select brokers and
dealers to execute Designated Series transactions initiated by the Subadviser, and to select the markets on or in which the transactions
will be executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In placing orders for the sale and purchase of Designated Series securities for the Trust, the Subadviser's
primary responsibility shall be to seek the best execution of orders at the most favorable prices. However, this responsibility shall
not obligate the Subadviser to solicit competitive bids for each transaction or to seek the lowest available commission cost to the Trust,
as long as the Subadviser reasonably believes that the broker or dealer selected by it can be expected to obtain a "best execution"
market price on the particular transaction and determines in good faith that the commission cost is reasonable in relation to the value
of the brokerage and research services (as defined in Section 28(e)(3) of the Securities Exchange Act of 1934, as amended) provided by
such broker or dealer to the Subadviser, viewed in terms of either that particular transaction or of the Subadviser's overall responsibilities
with respect to its clients, including the Trust, as to which the Subadviser exercises investment discretion, notwithstanding that the
Trust may not be the direct or exclusive beneficiary of any such services or that another broker may be willing to charge the Trust a
lower commission on the particular transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser may manage other portfolios and expects that the Trust and other portfolios the Subadviser
manages will, from time to time, purchase or sell the same securities. The Subadviser may aggregate orders for the purchase or sale of
securities on behalf of the Designated Series with orders on behalf of other portfolios the Subadviser manages. Securities purchased or
proceeds of securities sold through aggregated orders, as well as expenses incurred in the transaction, shall be allocated to the account
of each portfolio managed by the Subadviser that bought or sold such securities in a manner considered by the Subadviser to be equitable
and consistent with the Subadviser's fiduciary obligations in respect of the Designated Series and to such other accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall not execute any transactions for the Designated Series with a broker or dealer that
is an "affiliated person" (as defined in the Act) of (i) the Designated Series; (ii) another Series; (iii) the Adviser; (iv)
the Subadviser or any other subadviser to the Designated Series; (v) a principal underwriter of the Trust's shares; or (vi) any
other affiliated person of the Designated Series, in each case, unless such transactions are permitted by applicable law or regulation
and carried out in compliance with any applicable policies and procedures of the Trust. The Trust shall provide the Subadviser with a
list of brokers and dealers that are "affiliated persons" of the Trust, the Adviser or the principal underwriter, and applicable
policies and procedures. Upon the request of the Adviser, the Subadviser shall promptly, and in any event within three business days of
a request, indicate whether any entity identified by the Adviser in such request is an "affiliated person," as such term is
defined in the Act, of (i) the Subadviser or (ii) any affiliated person of the Subadviser, subject in each case to any confidentiality
requirements applicable to the Subadviser and/or its affiliates. Further, the Subadviser shall provide the Adviser with a list of (x)
each broker-dealer entity that is an "affiliated person," as such term is defined in the Act, of the Subadviser and (y) each
affiliated person of the Subadviser that has outstanding publicly-issued debt or equity. Each of the Adviser and the Subadviser agrees
promptly to update such list(s) whenever the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted
from such list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Consistent with its fiduciary obligations to the Trust in respect of the Designated Series and the requirements
of best price and execution, the Subadviser may, under certain circumstances, arrange to

have purchase and sale transactions effected directly between the Designated Series and another account managed by the Subadviser ("cross transactions"), provided that such transactions are carried out in accordance with applicable law or regulation and any applicable policies and procedures of the Trust. The Trust shall provide the Subadviser with applicable policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Proxies and Other Shareholder Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Unless the Adviser or the Trust gives the Subadviser written instructions to the contrary, the Subadviser,
or a third party designee acting under the authority and supervision of the Subadviser, shall review all proxy solicitation materials
and be responsible for voting and handling all proxies in relation to the assets of the Designated Series. Unless the Adviser or the Trust
gives the Subadviser written instructions to the contrary, provided that the Adviser has reviewed the Subadviser's proxy voting
procedures then in effect and determined them to comply with the requirements of the Trust's proxy voting policy, the Subadviser
will, in compliance with the Subadviser's proxy voting procedures then in effect, vote or abstain from voting, all proxies solicited
by or with respect to the issuers of securities in which assets of the Designated Series may be invested. The Adviser shall cause the
Custodian, the Administrator or another party, to forward promptly to the Subadviser all proxies upon receipt, so as to afford the Subadviser
a reasonable amount of time in which to determine how to vote such proxies. The Subadviser agrees to provide the Adviser in a timely manner
with any changes to the Subadviser's proxy voting procedures. The Subadviser further agrees to provide the Adviser in a timely manner
with a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Trust
to file Form N-PX as required by Rule 30b1-4 under the Act. The Subadviser shall provide disclosure regarding its proxy voting policies
and procedures in accordance with the requirements of Form N-1A for inclusion in the Registration Statement of the Trust. During any annual
period in which the Subadviser has voted proxies for the Trust, the Subadviser shall, as may reasonably be requested by the Adviser, certify
as to its compliance with its proxy voting policies and procedures and applicable federal statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subadviser is authorized to deal with reorganizations, exchange offers and other voluntary corporate
actions with respect to securities held in the Designated Series in such manner as the Subadviser deems advisable, unless the Trust or
the Adviser otherwise specifically directs in writing. It is acknowledged and agreed that the Subadviser shall not be responsible for
the filing of claims (or otherwise causing the Trust to participate) in class action settlements or similar proceedings in which shareholders
may participate related to securities currently or previously associated with the Designated Series. With the Adviser's approval,
on a case-by-case basis the Subadviser may obtain the authority and take on the responsibility to: (i) identify, evaluate and pursue legal
claims, including commencing or defending suits, affecting the securities held at any time in the Designated Series, including claims
in bankruptcy, class action securities litigation and other litigation; (ii) participate in such litigation or related proceedings with
respect to such securities as the Subadviser deems appropriate to preserve or enhance the value of the Designated Series, including filing
proofs of claim and related documents and serving as "lead plaintiff" in class action lawsuits; (iii) exercise generally any
of the powers of an owner with respect to the supervision and management of such rights or claims, including the settlement, compromise
or submission to arbitration of any claims, the exercise of which the Subadviser deems to be in the best interest of the Designated Series
or required by applicable law, including ERISA, and (iv) employ suitable agents, including legal counsel, and to pay their reasonable
fees, expenses and related costs from the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Prohibited Conduct</u>. In accordance with Rule 12d3-1 and Rule 17a-10 under the 1940 Act and any other
applicable law or regulation, the Subadviser's responsibility regarding investment advice hereunder is limited to the Designated
Series, and the Subadviser will not consult with any other investment advisory firm that provides investment advisory services to the
Trust or any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates regarding transactions in securities
or other assets for the Trust. The Trust shall provide the Subadviser with a list of investment companies sponsored by Virtus Investment
Partners, Inc. and its affiliates, and the Subadviser shall be in breach of the foregoing provision only if the investment company is
included in such a list provided to the Subadviser prior to such prohibited action. The Subadviser, and its affiliates and agents, shall
refrain from making any written or oral statements concerning

the Designated Series, the Trust, any other investment company sponsored by Virtus Investment Partners, Inc. or its affiliates, and any substantially similar products, that are reasonably likely to mislead investors regarding either (i) the services rendered by the Subadviser to the Designated Series or the Trust, or (ii) the Designated Series, including without limitation with respect to the investment strategies and/or risks, and/or the performance thereof. In addition, the Subadviser shall not, without the prior written consent of the Trust and the Adviser, delegate any obligation assumed pursuant to this Agreement to any affiliated or unaffiliated third party. The parties acknowledge and agree that the Subadviser may, in its discretion, utilize personnel employed by affiliates of the Subadviser to perform services pursuant to this Agreement by way of a "participating affiliate" agreement in accordance with, and to the extent permitted by, the Act and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), including the published interpretations thereof by the SEC or its staff. Such participating affiliate agreement shall subject the personnel providing such services to the Subadviser's compliance and other programs with respect to their activities on behalf of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Subadviser assumes full responsibility for all actions, and any failure to act, by each person utilized by the Subadviser to perform services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Information and Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall keep the Trust and the Adviser informed of developments relating to its duties as
Subadviser of which the Subadviser has, or should have, knowledge that would materially affect the Designated Series. In this regard,
the Subadviser shall provide the Trust, the Adviser and their respective officers with such periodic reports concerning the obligations
the Subadviser has assumed under this Agreement as the Trust and the Adviser may from time to time reasonably request. In addition, prior
to each meeting of the Board, the Subadviser shall provide the Adviser and the Board with reports regarding the Subadviser's management
of the Designated Series during the most recently completed quarter, which reports: (i) shall include Subadviser's representation
that its performance of its investment management duties hereunder is in compliance with the Designated Series' investment objectives
and practices, the Act and applicable rules and regulations under the Act, and the diversification and minimum "good income"
requirements of Subchapter M under the Internal Revenue Code of 1986, as amended, and (ii) otherwise shall be in such form as may be reasonably
required by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each of the Adviser and the Subadviser shall provide the other party with a list, to the best of the Adviser's
or the Subadviser's respective knowledge, of each affiliated person (and any affiliated person of such an affiliated person) of
the Adviser or the Subadviser, as the case may be, and each of the Adviser and Subadviser agrees promptly to update such list whenever
the Adviser or the Subadviser becomes aware of any changes that should be added to or deleted from the list of affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Subadviser shall also provide the Adviser with any information reasonably requested by the Adviser
regarding its management of the Designated Series required for any shareholder report, amended Registration Statement, or Prospectus supplement
to be filed by the Trust with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Subadviser shall promptly notify the Adviser and the Trust in the event that any of the Subadviser's
employees or contractors raise any issues concerning any actual or potential material violation of any law, regulation or internal policy
of the Subadviser, in each case actually or potentially affecting the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Fees for Services</u>. The compensation of the Subadviser for its services under this Agreement shall
be calculated and paid by the Adviser in accordance with the attached Schedule C. Pursuant to the Investment Advisory Agreement between
the Trust and the Adviser, the Adviser is solely responsible for the payment of fees to the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Limitation of Liability</u>. Absent the Subadviser's breach
of this Agreement or the willful misconduct, bad faith, gross negligence, or reckless disregard of the obligations or duties hereunder
on the part of the Subadviser, or its officers, directors, partners, agents, employees and controlling persons, the Subadviser shall not
be liable for any act or omission in the course of, or connected with, rendering services hereunder or for any

losses that may be sustained in the purchase, holding or sale of any position; *provided, however,* that the Subadviser shall be responsible for, and shall indemnify and hold the Trust and the Adviser and each of their respective directors or trustees, members, officers, employees and shareholders, and each person, if any, who controls the Trust or the Adviser within the meaning of Section 15 of the Securities Act of 1933, as amended (the "Securities Act"), harmless against, any and all Losses (as defined below) arising out of or resulting from a "Trade Error" (as defined in the compliance policies and procedures of the Trust), as the same may be amended from time to time) caused by the negligent action or negligent omission of the Subadviser or its agent. The Adviser agrees to provide prior written notice to the Subadviser of any material changes to the definition of Trade Error becoming effective with respect to the Designated Series unless, in the reasonable discretion of the Adviser, such change must become effective earlier due to any applicable law, rule, regulation or court order. It is acknowledged and agreed that any Trade Error that results in a gain to the Designated Series shall inure to the benefit of the Designated Series. For the avoidance of doubt, it is acknowledged and agreed that the Designated Series is a third party beneficiary of the indemnity granted in this Section 10, and the indemnity is intended to cover claims by the Designated Series, the Trust (on behalf of the Designated Series), or the Adviser against the Subadviser for recovery pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Confidentiality</u>. Subject to the duty of the Subadviser and the Trust to comply with applicable
law, including any demand of any regulatory or taxing authority having jurisdiction, the parties hereto shall treat as confidential all
information pertaining to the Designated Series and the actions of the Subadviser and the Trust in respect thereof. Notwithstanding the
foregoing, the Trust and the Adviser agree that the Subadviser may (i) disclose in marketing materials and similar communications that
the Subadviser has been engaged to manage assets of the Designated Series pursuant to this Agreement, and (ii) include performance statistics
regarding the Designated Series in composite performance statistics regarding one or more groups of Subadviser's clients published
or included in any of the foregoing communications, provided that the Subadviser does not identify any performance statistics as relating
specifically to the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>. This Agreement shall terminate automatically in the event of its assignment, as that
term is defined in Section 2(a)(4) of the Act. The Subadviser shall notify the Trust and the Adviser in writing sufficiently in advance
of any proposed change of control, as defined in Section 2(a)(9) of the Act, as will enable the Trust to consider whether an assignment
as defined in Section 2(a)(4) of the Act will occur, and to take the steps necessary to enter into a new contract with the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Representations, Warranties and Agreements of the Subadviser</u>. The Subadviser represents, warrants
and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. It is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its
organization, and is qualified to do business in each jurisdiction in which failure to be so qualified would reasonably be expected to
have a material adverse effect upon it. It (i) is registered as an "investment adviser" under the Investment Advisers Act
of 1940, as amended ("Advisers Act") and will continue to be so registered for so long as this Agreement remains in effect;
(ii) is not prohibited by the Act or the Advisers Act from performing the services contemplated by this Agreement; provided, however,
that the Subadviser makes no representation or warranty with regard to the approval of this Agreement by the Board under Section 15 of
the Act; (iii) has appointed a Chief Compliance Officer under Rule 206(4)-7 under the Advisers Act; (iv) has adopted written policies
and procedures that are reasonably designed to prevent violations of the Advisers Act from occurring, and correct promptly any violations
that have occurred, and will provide notice promptly to the Adviser of any material violations relating to the Trust; (v) has materially
met and will seek to continue to meet for so long as this Agreement remains in effect, any other applicable federal or state requirements,
or the applicable requirements of any regulatory or industry self-regulatory agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. It is either registered as a commodity trading advisor or duly exempt from such registration with the
U.S. Commodity Futures Trading Commission ("CFTC"), and it will maintain such registration or exemption continuously during
the term of this Agreement or, alternatively, will become a commodity

trading advisor duly registered with the CFTC and will be a member in good standing with the National Futures Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. It will maintain, keep current and preserve on behalf of the Trust, records in the manner required or
permitted by the Act and the Rules thereunder including the records identified in Schedule B (as Schedule B may be amended from time to
time). The Subadviser agrees that such records are the property of the Trust, and shall be surrendered to the Trust or to the Adviser
as agent of the Trust promptly upon request of either. The Trust acknowledges that the Subadviser may retain copies of all records required
to meet the record retention requirements imposed by law and regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It shall maintain a written code of ethics (the "Code of Ethics") complying with the requirements
of Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Act and shall provide the Trust and the Adviser with a copy of the Code
of Ethics and evidence of its adoption. It shall institute procedures reasonably necessary to prevent Access Persons (as defined in Rule
17j-1) from violating its Code of Ethics. The Subadviser acknowledges receipt of the written code of ethics adopted by and on behalf of
the Trust. Each calendar quarter while this Agreement is in effect, a duly authorized compliance officer of the Subadviser shall certify
to the Trust and to the Adviser that the Subadviser has complied with the requirements of Rules 204A-1 and 17j-1 during the previous calendar
quarter and that there has been no material violation of its Code of Ethics, or of Rule 17j-1(b), or that any persons covered under its
Code of Ethics has divulged or acted upon any material, non-public information, as such term is defined under relevant securities laws,
and if such a violation of the code of ethics of the Trust has occurred, or if such a violation of its Code of Ethics has occurred, that
appropriate action was taken in response to such violation. The Subadviser shall notify the Adviser promptly of any material violation
of the Code of Ethics involving the Trust. The Subadviser will provide such additional information regarding violations of the Code of
Ethics directly affecting the Trust as the Trust or its Chief Compliance Officer on behalf of the Trust or the Adviser may reasonably
request in order to assess the functioning of the Code of Ethics or any harm caused to the Trust from a violation of the Code of Ethics.
Further, the Subadviser represents that it has policies and procedures regarding the detection and prevention of the misuse of material,
nonpublic information by the Subadviser and its employees. The Subadviser will explain what it has done to seek to ensure such compliance
in the future. Annually, the Subadviser shall furnish to the Trust and the Adviser a written report which complies with the requirements
of Rule 17j-1 concerning the Subadviser's Code of Ethics. The Subadviser shall permit the Trust and the Adviser to examine the reports
required to be made by the Subadviser under Rules 204A-1(b) and 17j-1(d)(1) and this subparagraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It has adopted and implemented, and throughout the term of this Agreement shall maintain in effect and
implement, policies and procedures reasonably designed to prevent, detect and correct violations by the Subadviser and its supervised
persons, and, to the extent the activities of the Subadviser in respect of the Trust could affect the Trust, by the Trust, of "federal
securities laws" (as defined in Rule 38a-1 under the Act), and that the Subadviser has provided the Trust with true and complete
copies of its policies and procedures (or summaries thereof) and related information reasonably requested by the Trust and/or the Adviser.
The Subadviser agrees to cooperate with periodic reviews by the Trust's and/or the Adviser's compliance personnel of the Subadviser's
policies and procedures, their operation and implementation and other compliance matters and to provide to the Trust and/or the Adviser
from time to time such additional information and certifications in respect of the Subadviser's policies and procedures, compliance
by the Subadviser with federal securities laws and related matters as the Trust's and/or the Adviser's compliance personnel
may reasonably request. The Subadviser agrees to promptly notify the Adviser of any compliance violations which affect the Designated
Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Subadviser will immediately notify the Trust and the Adviser of the occurrence of any event which
would disqualify the Subadviser from serving as an investment adviser of an investment company pursuant to Section 9 of the Act or otherwise.
The Subadviser will also immediately notify the Trust and

the Adviser if it is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, including but not limited to the SEC and the CFTC, involving the affairs of the Designated Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. To the best of its knowledge, there are no material pending, threatened, or contemplated actions, suits,
proceedings, or investigations before or by any court, governmental, administrative or self-regulatory body, board of trade, exchange,
or arbitration panel to which it or any of its directors, officers, employees, partners, shareholders, members or principals, or any of
its affiliates is a party or to which it or its affiliates or any of its or its affiliates' assets are subject, nor has it or any
of its affiliates received any notice of an investigation, inquiry, or dispute by any court, governmental, administrative, or self-regulatory
body, board of trade, exchange, or arbitration panel regarding any of its or their activities, which might reasonably be expected to result
in (i) a material adverse effect on the Trust or (ii) a material adverse change in the Subadviser's condition (financial or otherwise)
or business, or which might reasonably be expected to materially impair the Subadviser's ability to discharge its obligations under
this Agreement. The Subadviser will also immediately notify the Trust and the Adviser if the representation in this Section 13.G is no
longer accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The Subadviser shall promptly notify the Adviser of any changes in its executive officers, partners or
in its key personnel, including, without limitation, any change in the portfolio manager(s) responsible for the Designated Series or if
there is an actual or expected change in control or management of the Subadviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Personal Liability</u>. A copy of the Trust's Agreement and Declaration of Trust is on file
with the Secretary of the Commonwealth of Massachusetts, and notice is hereby given that this instrument is executed on behalf of the
Trustees of the Trust as Trustees and not individually and that the obligations of the Trust pursuant to this instrument (if any) are
not binding upon any of the Trustees or shareholders individually but are binding only upon the assets and property of the Trust. Without
limiting the generality of the foregoing, neither the Subadviser nor any of its officers, directors, partners, shareholders or employees
shall, under any circumstances, have recourse or cause or willingly permit recourse to be had directly or indirectly to any personal,
statutory, or other liability of any shareholder, Trustee, officer, agent or employee of the Trust or of any successor of the Trust, whether
such liability now exists or is hereafter incurred for claims against the trust estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendment</u>. This Agreement, together with the Schedules attached hereto, constitutes
the entire agreement of the parties with respect to the subject matter hereof and supersedes any prior written or oral agreements pertaining
to the subject matter of this Agreement. This Agreement may be amended at any time, but only by written agreement among the Subadviser,
the Adviser and the Trust, which amendment, other than amendments to Schedules A, B, D, E and F, is subject to the approval of the Board
(including those trustees who are not "interested persons" of the Trust) and, if required by the Act or applicable SEC rules
and regulations, a vote of a majority of the Designated Series' outstanding voting securities; provided, however, that, notwithstanding
the foregoing, this Agreement may be amended or terminated in accordance with any exemptive order issued to the Adviser, the Trust or
its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Effective Date; Term</u>. This Agreement shall become effective on the date set forth on the first
page of this Agreement, and shall continue in effect until December 31, 2023. The Agreement shall continue from year to year thereafter
only so long as its continuance has been specifically approved at least annually (i) by a vote of the Board of the Trust or by vote of
a majority of outstanding voting securities of the Designated Series and (ii) by vote of a majority of the trustees who are not interested
persons of the Trust (as defined in the Act) or of any person party to this Agreement, cast in person (or otherwise, as consistent with
applicable laws, regulations and related guidance and relief) at a meeting called for the purpose of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Termination</u>. This Agreement may be terminated at any time without payment of any penalty (i) by
the Board, or by a vote of a majority of the outstanding voting securities of the Designated Series, upon 60

days' prior written notice to the Adviser and the Subadviser, (ii) by the Subadviser upon 60 days' prior written notice to the Adviser and the Trust, or (iii) by the Adviser upon 60 days' prior written notice to the Subadviser. This Agreement may also be terminated, without the payment of any penalty, by the Adviser or the Board immediately (i) upon the material breach by the Subadviser of this Agreement or (ii) at the terminating party's discretion, if the Subadviser or any officer, director or key portfolio manager of the Subadviser is accused in any regulatory, self-regulatory or judicial investigation or proceeding as having violated the federal securities laws or engaged in criminal conduct. This Agreement shall terminate automatically and immediately upon termination of the Advisory Agreement. This Agreement shall terminate automatically and immediately in the event of its assignment, as such term is defined in and interpreted under the terms of the 1940 Act and the rules promulgated thereunder. Termination of this Agreement will not affect any outstanding orders or transactions or any legal rights or obligations which may already have arisen. Transactions in progress at the date of termination will be completed by the Subadviser as soon as reasonably practicable. Provisions of this Agreement relating to indemnification and the preservation of records, as well as any responsibilities or obligations of the parties hereto arising from matters initiated prior to termination, shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>. To the extent that state law is not preempted by the provisions of any law of the
United States heretofore or hereafter enacted, as the same may be amended from time to time, this Agreement shall be administered, construed
and enforced according to the laws of the Commonwealth of Massachusetts applicable to contracts entered into and fully performed within
the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. If any term or condition of this Agreement shall be invalid or unenforceable to any
extent or in any application, then the remainder of this Agreement shall not be affected thereby, and each and every term and condition
of this Agreement shall be valid and enforced to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices.</u> Any notice or other communication required to be given pursuant to this Agreement shall
be deemed duly given if delivered personally or by overnight delivery service or mailed by certified or registered mail, return receipt
requested and postage prepaid, or sent by facsimile or e-mail transmission addressed to the parties at their respective addresses set
forth below, or at such other address as shall be designated by any party in a written notice to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the Adviser or the Trust at:

Virtus Investment Advisers, Inc.

One Financial Plaza

Hartford, Connecticut 06103

Attn: Legal Counsel

Telephone: (860) 263-4790

Facsimile: (860) 241-1028

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the Subadviser at:

Voya Investment Management Co. LLC

230 Park Avenue

New York, NY 10169

Attn: Huey Falgout, Jr.

Telephone: (480) 477-_2666

Email: huey.falgout@voya.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Certifications.</u> The Subadviser shall timely provide to the Adviser and the Trust, all information
and documentation they may reasonably request as necessary or appropriate in order for the Adviser and the Board to oversee the activities
of the Subadviser and in connection with the compliance by any of them with the requirements of this Agreement, the Registration Statement,
the policies and procedures referenced herein, and any applicable law, including, without limitation, (i) information and commentary relating
to the Subadviser or the Designated Series for the Trust's annual and semi-annual reports, in a format reasonably approved by the
Adviser, together with (A) a certification that such information and commentary discuss all of the factors that materially affected the
performance of the Designated Series, including the relevant market conditions and the investment techniques and strategies used and (B)
additional certifications related to the Subadviser's management of the Trust in order to support the Trust's filings on Form
N-CSR and other applicable forms, and the Trust's Principal Executive Officer's and Principal Financial Officer's certifications
under Rule 30a-2 under the Act, thereon; (ii) within 5 business days of a quarter-end, a quarterly certification with respect to compliance
and operational matters related to the Subadviser and the Subadviser's management of the Designated Series (including, without limitation,
compliance with the applicable procedures), in a format reasonably requested by the Adviser, as it may be amended from time to time; and
(iii) an annual certification from the Subadviser's Chief Compliance Officer, appointed under Rule 206(4)-7 under the Advisers Act
with respect to the design and operation of the Subadviser's compliance program, in a format reasonably requested by the Adviser
or the Trust. Without limiting the foregoing, the Subadviser shall provide a quarterly certification in a form substantially similar to
that attached as Schedule E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Subadviser shall indemnify and hold harmless the Adviser from and against any and all claims, losses,
liabilities, or damages (including reasonable attorney's fees and other related expenses) (collectively, "Losses") arising
from the Subadviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this Agreement
in the performance of its obligations under this Agreement; provided, however, that the Subadviser's obligation under this Section
22 shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Adviser, is caused by or
is otherwise directly related to (i) any breach by the Adviser of its representations or warranties made herein, (ii) any willful misconduct,
bad faith, reckless disregard or negligence of the Adviser in the performance of any of its duties or obligations hereunder, or (iii)
any untrue statement of a material fact contained in the Registration Statement, proxy materials, reports, advertisements, sales literature,
or other materials pertaining to the Trust or the omission to state therein a material fact known to the Adviser that was required to
be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon
information furnished to the Subadviser or the Trust, or the omission of such information, by the Adviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Adviser shall indemnify and hold harmless the Subadviser from and against any and all Losses arising
from the Adviser's willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties under this Agreement in
the performance of its obligations under this Agreement; provided, however, that the Adviser's obligation under this Section 22
shall be reduced to the extent that the claim against, or the loss, liability, or damage experienced by the Subadviser, is caused by or
is otherwise directly related to (i) any breach by the Subadviser of its representations or warranties made herein, (ii) any willful misconduct,
bad faith, reckless disregard or negligence of the Subadviser in the performance of any of its duties or obligations hereunder, or (iii)
any untrue statement of a material fact contained in the Registration Statement, proxy materials, reports, advertisements, sales literature,
or other materials pertaining to the Trust or the omission to state therein a material fact known to the Subadviser that was required
to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made in reliance upon
information furnished to the Adviser or the Trust, or the omission of such information, by the Subadviser for use therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. A party seeking indemnification hereunder (the "Indemnified Party") will (i) provide prompt
written notice to the other of any claim ("Claim") for which it intends to seek indemnification, (ii) grant control of the
defense and /or settlement of the Claim to the other party, and (iii) cooperate with the other party in the defense thereof. The Indemnified
Party will have the right at its own expense to participate in the defense of any Claim, but will not have the right to control the defense,
consent to judgment or agree to the settlement of any Claim without the written consent of the other party. The party providing the indemnification
will not consent to the entry of any judgment or enter any settlement which (i) does not include, as an unconditional term, the release
by the claimant of all liabilities for Claims against the Indemnified Party or (ii) which otherwise adversely affects the rights of the
Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. No party will be liable to another party for consequential damages under any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Receipt of Disclosure Documents</u>. The Trust and the Adviser acknowledge receipt, at least 48 hours
prior to entering into this Agreement, of a copy of Part 2 of the Subadviser's Form ADV containing certain information concerning
the Subadviser and the nature of its business. The Subadviser will, promptly after making any amendment to its Form ADV, furnish a copy
of such amendment to the Adviser. On an annual basis and upon request, the Subadviser will provide a copy of its audited financial statements,
including balance sheets, for the two most recent fiscal years and, if available, each subsequent fiscal quarter. At the time of providing
such information, the Subadviser shall describe any material adverse change in its financial condition since the date of its latest financial
statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Counterparts; Fax Signatures</u>. This Agreement may be executed in any number of counterparts (including
executed counterparts delivered and exchanged by facsimile transmission) with the same effect as if all signing parties had originally
signed the same document, and all counterparts shall be construed together and shall constitute the same instrument. For all purposes,
signatures delivered and exchanged by facsimile transmission shall be binding and effective to the same extent as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Bankruptcy and Related Events</u>. Each of the Adviser and the Subadviser agrees that it will provide
prompt notice to the other in the event that: (i) it makes an assignment for the benefit of creditors, files a voluntary petition in bankruptcy,
or is otherwise adjudged bankrupt or insolvent by a court of competent jurisdiction; or (ii) a material event occurs that could reasonably
be expected to adversely impair its ability to perform this Agreement. The Adviser further agrees that it will provide prompt notice to
the Subadviser in the event that the Trust ceases to be registered as an investment company under the Act.

**[signature page follows]**

---

| | | |
|:---|:---|:---|
| **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** | **VIRTUS STRATEGY TRUST** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley | &nbsp;&nbsp;&nbsp;&nbsp;/s/ W. Patrick Bradley |
|  | Name: | W. Patrick Bradley |
|  | Title: | Executive Vice President, Chief Financial Officer & Treasurer |
| **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** | **VIRTUS INVESTMENT ADVISERS, INC.** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Richard W. Smirl |
|  | Name: | Richard W. Smirl |
|  | Title: | Executive Vice President |

---

---

| | | |
|:---|:---|:---|
| **ACCEPTED:** | **ACCEPTED:** | **ACCEPTED:** |
| **VOYA INVESTMENT MANAGEMENT CO. LLC** | **VOYA INVESTMENT MANAGEMENT CO. LLC** | **VOYA INVESTMENT MANAGEMENT CO. LLC** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Eileen Madden | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Eileen Madden |
|  | Name: | Eileen Madden |
|  | Title: | Managing Director, Head of Client Service and Relationship Management |

---

---

| | | |
|:---|:---|:---|
| SCHEDULES: | A. | Operational Procedures |
|  | B. | Record Keeping Requirements |
|  | C. | Fee Schedule |
|  | D. | Subadviser Functions |
|  | E. | Form of Sub-Certification |
|  | F. | Designated Series |

---

**<u>SCHEDULE A</u>**

**OPERATIONAL PROCEDURES**

In order to minimize operational problems, it will be necessary for a flow of information to be supplied in a secure manner by Subadviser to the Trust's service providers, including: The Bank of New York Mellon (the "Custodian"), Virtus Fund Services, LLC (the "Fund Administrator"), BNY Mellon Investment Servicing (US) Inc., (the "Accounting Agent"), any Prime Broker to the Series, and all other Counterparties/Brokers as required.

The Subadviser must furnish the Trust's service providers with required daily information as to executed trades in a format and time-frame agreed to by the Subadviser, Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties and designated persons of the Trust. Trade information sent to the Custodian, Fund Administrator, Accounting Agent and Prime Broker/Counterparties must include all necessary data within the required timeframes to allow such parties to perform their obligations to the Designated Series.

The Accounting Agent specifically requires a daily trade blotter with a summary of all trades, in addition to trade feeds, including, if no trades are executed, a report to that effect. Daily information as to executed trades for same-day settlement and future trades must be sent to the Accounting Agent no later than 5:00 p.m. (Eastern Time) on the day of the trade each day the Trust is open for business. All other executed trades must be delivered to the Accounting Agent on trade date +1 by 11:00 a.m. (Eastern Time) to ensure that they are part of the Designated Series' NAV calculation. (Subadviser will be responsible for reimbursement to the Trust for any loss caused by the Subadviser's failure to comply with the requirements of this Schedule A.) On fiscal quarter ends and calendar quarter ends, all trades must be delivered to the Accounting Agent by 4:30 p.m. (Eastern Time) for inclusion in the financial statements of the Designated Series. The data to be sent to the Accounting Agent and/or Fund Administrator will be as agreed by the Subadviser, Fund Administrator, Accounting Agent and designated persons of the Trust and shall include (without limitation) the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Transaction type (e.g., purchase, sale, open, close, put call);

2. Security type (e.g., equity, fixed income, swap, future, option, short, long);

3. Security name;

4. Exchange identifier (e.g., CUSIP, ISIN, Sedol, OCC Symbol) (as applicable);

5. Number of shares and par, original face, contract amount, notional amount;

6. Transaction price per share (clean if possible);

7. Strike price;

8. Aggregate principal amount;

9. Executing broker;

10. Settlement agent;

11. Trade date;

12. Settlement date;

13. Aggregate commission or if a net trade;

14. Interest purchased or sold from interest bearing security;

15. Net proceeds of the transaction;

16. Trade commission reason: best execution, soft dollar or research (to be provided quarterly);

17. Derivative terms;

18. Non-deliverable forward classification (to be provided quarterly);

19. Maturity/expiration date; and

20. Details of margin and collateral movement.

When opening accounts with brokers for, and in the name of, the Trust, the account must be a cash account. No margin accounts are to be opened by the Subadviser in the name of the Trust or any Series except as specifically approved by the Trust and the Fund Administrator. Delivery instructions are as specified by the Custodian. The Custodian will supply the Subadviser daily with a cash availability report via access to the Custodian website, or by email or by facsimile and the Accounting Agent will provide a five-day cash projection. This will normally be done by email or, if email is unavailable, by another form of immediate written communication, so that the Subadviser will know the amount available for investment purposes.

**<u>SCHEDULE B</u>**

**RECORDS TO BE MAINTAINED BY THE SUBADVISER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (Rule 31a-1(b)(5) and (6)) A record of each brokerage order, and all other series purchases and sales,
given by the Subadviser on behalf of the Trust for, or in connection with, the purchase or sale of securities, whether executed or unexecuted.
Such records shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The name of the broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The terms and conditions of the order and of any modifications or cancellations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The time of entry or cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The price at which executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The time of receipt of a report of execution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The name of the person who placed the order on behalf of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within ten (10) days after the end of the
quarter, showing specifically the basis or bases upon which the allocation of orders for the purchase and sale of series securities to
named brokers or dealers was effected, and the division of brokerage commissions or other compensation on such purchase and sale orders.
Such record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Shall include the consideration given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The sale of shares of the Trust by brokers or dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The supplying of services or benefits by brokers or dealers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust,

(b) The Adviser,

(c) The Subadviser, and

(d) Any person other than the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any other consideration other than the technical qualifications of the brokers and dealers as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Shall show the nature of the services or benefits made available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Shall describe in detail the application of any general or specific formula or other determinant used
in arriving at such allocation of purchase and sale orders and such division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Shall show the name of the person responsible for making the determination of such allocation and such
division of brokerage commissions or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (Rule 31a-1(b)(10)) A record
in the form of an appropriate memorandum identifying the person or persons, committees or groups authorizing the purchase or sale of series
securities. Where a committee or group makes an authorization, a record shall be kept of the names of its members who participate in the
authorization. There shall be retained as part of this record: any memorandum, recommendation or instruction supporting or authorizing
the purchase or sale of series securities and such other information as is appropriate to support the authorization. <sup>\*</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Rule 31a-1(f)) Such accounts, books and other documents as are required to be maintained by registered
investment advisers by rule adopted under Section 204 of the Advisers Act, to the extent such records are necessary or appropriate to
record the Subadviser's transactions for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Records as necessary under Board-approved policies and procedures of the Trust, including without limitation
those related to valuation determinations.

\* Such information might include: current financial information, annual and quarterly reports, press releases, reports by analysts and from brokerage firms (including their recommendations, i.e., buy, sell, hold) or any internal reports or subadviser review.

**<u>SCHEDULE C</u>**

**SUBADVISORY FEE**

For services provided to the Trust, the Adviser will pay to the Subadviser a fee, payable monthly in arrears, equal to 50% of the net advisory fee applicable to the Designated Series, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The total expenses of the Designated Series will be calculated in accordance with the terms of its prospectus,
including application of the gross advisory fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such total expenses will be reduced by the application of any applicable fee waiver and/or expense limitation
agreement, in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The net advisory fee applicable to the Designated Series will then be calculated by subtracting from the
gross advisory fee any amount required to be waived under the applicable fee waiver(s) and/or reimbursed under such applicable expense
limitation agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event that the Adviser waives its entire fee and also assumes expenses of the Designated Series
pursuant to an applicable expense limitation agreement, the Subadviser will similarly waive its entire fee and will share in the expense
assumption by contributing 50% of the assumed amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If during the term of this Agreement the Adviser later recaptures some or all of the fees waived or expenses
assumed by the Adviser and the Subadviser together, the Adviser shall pay to the Subadviser a pro rata amount of the fee(s)/expense(s)
recaptured that is attributable to the Subadviser's portion of the original waiver/assumed expense.

**<u>SCHEDULE D</u>**

**SUBADVISER FUNCTIONS**

With respect to managing the investment and reinvestment of the Designated Series' assets, the Subadviser shall provide, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An investment program for the Designated Series consistent with its investment objectives based upon the
development, review and adjustment of buy/sell strategies approved from time to time by the Board and the Adviser in paragraph 3 of this
Subadvisory Agreement and implementation of that program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Periodic reports, on at least a quarterly basis, in form and substance acceptable to the Adviser, with
respect to: i) compliance with the Code of Ethics and the Trust's code of ethics; ii) compliance with procedures adopted from time
to time by the Board relative to securities eligible for resale under Rule 144A under the Securities Act of 1933, as amended; iii) diversification
of Designated Series assets in accordance with the then prevailing Prospectus and Statement of Additional Information pertaining to the
Designated Series and governing laws, regulations, rules and orders; iv) compliance with governing restrictions relating to the fair valuation
of securities for which market quotations are not readily available or considered "illiquid" for the purposes of complying
with the Designated Series' limitation on acquisition of illiquid securities; v) any and all other reports reasonably requested
in accordance with or described in this Agreement; vi) the implementation of the Designated Series' investment program, including,
without limitation, analysis of Designated Series performance; vii) compliance with the Investment Guidelines; viii) description of material
changes in policies or procedures; and ix) description of any significant firm related developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after filing with the SEC an amendment to its Form ADV, a copy of such amendment to the Adviser
and the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Attendance by appropriate representatives of the Subadviser at meetings requested by the Adviser or Board
at such time(s) and location(s) as reasonably requested by the Adviser or Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice to the Board and the Adviser of the occurrence of any event which would disqualify the Subadviser
from serving as an investment adviser of an investment company pursuant to Section 9(a) of the Act or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable assistance in the valuation of securities including the participation of appropriate representatives
at fair valuation committee meetings.

**<u>SCHEDULE E</u>**

**FORM OF SUB-CERTIFICATION**

To:

Re: Subadviser's Form N-CSR Certification for the [Name of Designated Series]. <br>

From: [Name of Subadviser] <br>

Representations in support of Investment Company Act Rule 30a-2 certifications of Form N-CSR.

[Name of Designated Series].

In connection with your certification responsibility under Rule 30a-2 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, I have reviewed the following information presented in the schedule of investments for the period ended [Date of Reporting Period] (the "Report") which forms part of the N-CSR, as applicable, for the Trust.

Schedule of Investments

Our organization has designed, implemented and maintained internal controls and procedures, designed for the purpose of ensuring the accuracy and completeness of relevant portfolio trade data transmitted to those responsible for the preparation of the Schedule of Investments. As of the date of this certification there have been no material modifications to these internal controls and procedures.

In addition, our organization has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such internal controls and procedures to ensure that material information is made known to the
appropriate groups responsible for servicing the above-mentioned mutual fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed and implemented controls which ensure that all transactions provided to the fund's custodians/prime
broker and accounting agent ("vendors") have been delivered in a secure manner by authorized persons, and that access to the
fund's records maintained by the fund's vendors is restricted to authorized persons of our firm or, if applicable, any third
party administrator utilized by our firm. Such controls include review of the authorized persons at least annually and prompt communication
of any changes to authorized persons to the fund's vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of our internal controls and procedures, as of a date within 90 days prior
to the date of this certification and we have concluded that such controls and procedures are effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In addition, to the best of my knowledge, there has been no fraud, whether or not material, that involves
our organization's management or other employees who have a significant role in our organization's control and procedures
as they relate to our duties as subadviser to the Designated Series.

I have read the draft of the Report which I understand to be current as of [Date of Reporting Period] and based on my knowledge, such draft of the Report, including the Fund Summary and Asset Allocations (as applicable), does not, with respect to the Designated Series, contain any untrue statement of a material fact or omit to state a material fact necessary to make the information contained therein, in light of the circumstances under which such information is presented, not misleading with respect to the period covered by such draft Report.

I have disclosed, based on my most recent evaluation, to the Designated Series' Chief Accounting Officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant changes, deficiencies and material weakness, if any, in the design or operation of the
Subadviser's internal controls and procedures which could adversely affect the Registrant's ability to

record, process, summarize and report financial data with respect to the Designated Series in a timely fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves the Subadviser's management or other employees
who have a significant role in the Subadviser's internal controls and procedures for financial reporting.

I certify that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Subadviser's Portfolio Manager(s) has/have complied with the restrictions and reporting requirements
of the Code of Ethics (the "Code"). The term Portfolio Manager is as defined in the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subadviser has complied with the Prospectus and Statement of Additional Information of the Designated
Series and the Policies and Procedures of the Designated Series as adopted by the Designated Series Board of Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I have no knowledge of any compliance violations except as disclosed in writing to the Virtus Compliance
Department by me or by the Subadviser's compliance administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Subadviser has complied with the rules and regulations of the 33 Act and 40 Act, and such other regulations
as may apply to the extent those rules and regulations pertain to the responsibilities of the Subadviser with respect to the Designated
Series as outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Since the submission of our most recent certification there have not been any divestments of securities
of issuers that conduct or have direct investments in business operations in Iran or Sudan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The subadviser has disclosed to the Adviser or the Designated Series any holdings required to be disclosed
under the Iran Threat Reduction and Syria Human Rights Act of 2012, the Comprehensive Iran Sanctions, Accountability, and Divestment Act
of 2010, the Iran Sanctions Act of 1996, as Amended and Executive Orders 13224, and 13382.

This certification relates solely to the Designated Series named above and may not be relied upon by any other fund or entity.

The Subadviser does not maintain the official books and records of the above Designated Series. The Subadviser's records are based on its own portfolio management system, a record-keeping system that is not intended to serve as the Designated Series official accounting system. The Subadviser is not responsible for the preparation of the Report.

---

| | |
|:---|:---|
| [Name of Subadviser] | Date |
| [Name of Authorized Signer] |  |
| [Title of Authorized Signer] |  |

---

**<u>SCHEDULE F</u>**

**DESIGNATED SERIES**

Virtus Convertible Fund

## Ex-99.(I)(20)

**Exhibit 99.(i)(20)**

**CONSENT OF DECHERT LLP**

We hereby consent to the reference to our firm under the caption "Legal Counsel to the Trust" in the Statement of Additional Information comprising a part of Post-Effective Amendment No. 144 to the Form N-1A Registration Statement of Virtus Strategy Trust, File No. 333-148624. We do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act of 1933 or the rules and regulations of the Securities and Exchange Commission thereunder.

---

| |
|:---|
| /s/ Dechert LLP |
| San Francisco, California |
| January 26, 2023 |

---

## Ex-99.(J)(1)

**Exhibit 99.(j)(1)**

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in this Registration Statement on Form N-1A of Virtus Strategy Trust of our report dated November 23, 2022, relating to the financial statements and financial highlights, which appears in the Virtus Convertible Fund, Virtus Duff & Phelps Water Fund, Virtus Global Allocation Fund, Virtus International Small-Cap Fund, Virtus Newfleet Short Duration High Income Fund, Virtus NFJ Emerging Markets Value Fund, Virtus NFJ Global Sustainability Fund, Virtus Seix High Yield Income Fund Annual Report on Form N-CSR for the year ended September 30, 2022. We also consent to the references to us under the headings "Glossary", "Independent Registered Public Accounting Firm", "Financial Statements", "Non-Public Portfolio Holdings Information" and "Financial Highlights" in such Registration Statement.

/s/PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

January 26, 2023

## Ex-99.(M)(3)

**Exhibit m.3**

**<u>VIRTUS STRATEGY TRUST</u>**

Distribution and Servicing Plan (Class A)

This Plan (the "Plan") dated as of February 1, 2021, and amended thereafter, constitutes the Distribution and Servicing Plan with respect to the Class A shares of the series of Virtus Strategy Trust, a Massachusetts business trust (the "Trust").

Section 1. The Trust will pay to the principal distributor of the Trust's shares (the "Distributor") a fee (the "Distribution and Servicing Fee") for services rendered and expenses borne by the Distributor in connection with the distribution of Class A shares of the Trust and in connection with personal services rendered to Class A shareholders of the Trust and/or maintenance of Class A shareholder accounts. The Distribution and Servicing Fee shall be paid at an annual rate with respect to each Fund (series) of the Trust (a "Fund") not to exceed 0.25% of the Fund's average daily net assets attributable to its Class A shares. Subject to such limits and subject to the provisions of Section 9 hereof, the Distribution and Servicing Fee shall be as approved from time to time by (a) the Trustees of the Trust and (b) the Independent Trustees of the Trust and may be paid in respect of services rendered and expenses borne in the past as to which no Distribution and Servicing Fee was paid on account of such limitation. If at any time this Plan shall not be in effect with respect to all Funds of the Trust, the Distribution and Servicing Fee shall be computed on the basis of sales of Class A shares or net assets attributable to Class A shares (as applicable) of those Funds for which the Plan is in effect. The Distribution and Servicing Fee shall be accrued daily and paid monthly or at such other intervals as the Trustees shall determine.

Section 2. The Distribution and Servicing Fee may be spent by the Distributor on any activities or expenses primarily intended to result in the sale of Class A shares of the Trust, including, but not limited to compensation to, and expenses (including overhead and telephone expenses) of, financial consultants or other employees of the Distributor or of participating or introducing brokers who engage in distribution of Class A shares, preparing, printing and delivering prospectuses and reports for other than existing Class A shareholders, providing facilities to answer questions from other than existing Class A shareholders, advertising and preparation, printing and distribution of sales literature, receiving and answering correspondence, including requests for prospectuses and statements of additional information, complying with federal and state securities laws pertaining to the sale of Class A shares and assisting investors in completing application forms and selecting dividend and other account options for Class A shares. The Distribution and Servicing Fee may also be spent by the Distributor on personal services rendered to Class A shareholders of the Trust and/or maintenance of Class A shareholder accounts (but will generally not be spent on record keeping charges, accounting expenses, transfer costs, or custodian fees). The Distributor's expenditures may include, but shall not be limited to, compensation to, and expenses (including telephone and overhead expenses) of, financial consultants or other employees of the Distributor or of participating or introducing brokers, certain banks and other financial intermediaries who aid in the processing of purchase or redemption requests for Class A shares or the processing of dividend payments with respect to Class A shares, who provide information periodically to Class A shareholders showing their positions in a Fund's Class A shares, who issue confirmations for transactions by Class A shareholders, who forward communications from the Trust to Class A shareholders, who render

ongoing advice concerning the suitability of particular investment opportunities offered by the Trust in light of Class A shareholders' needs, who provide and maintain elective Class A shareholder services such as check writing and wire transfer services, who provide and maintain pre-authorized investment plans for Class A shareholders, who act as sole shareholder of record and nominee for Class A shareholders, who respond to inquiries from Class A shareholders relating to such services, who train personnel in the provision of such services or who provide such similar services as permitted under applicable statutes, rules or regulations.

Section 3. Unless otherwise permitted under applicable law, this Plan shall not take effect with respect to any Fund of the Trust until it has been approved by a vote of at least a majority of the outstanding Class A voting securities of that Fund. This Plan shall be deemed to have been effectively approved with respect to any Fund if a majority of the outstanding Class A voting securities of that Fund votes for the approval of this Plan, notwithstanding that this Plan has not been approved by a majority of the outstanding Class A voting securities of any other Fund or that this Plan has not been approved by a majority of the outstanding Class A voting securities of the Trust.

Section 4. This Plan shall not take effect until it has been approved, together with any related agreements, by votes of the majority (or whatever greater percentage may, from time to time, be required by Section 12(b) of the Investment Company Act of 1940 (the "Act") or the rules and regulations thereunder) of both (a) the Trustees of the Trust, and (b) the Independent Trustees of the Trust cast in person at a meeting called for the purpose of voting on this Plan or such agreement.

Section 5. This Plan shall continue in effect for a period of more than one year after it takes effect only so long as such continuance is specifically approved at least annually in the manner provided for approval of this Plan in Section 4. It is acknowledged that the Distributor may expend or impute interest expense in respect of its activities or expenses under this Plan and the Trustees and the Independent Trustees may give such weight to such interest expense as they determine in their discretion.

Section 6. Any person authorized to direct the disposition of monies paid or payable by the Trust pursuant to this Plan or any related agreement shall provide to the Trustees of the Trust, and the Trustees shall review, at least quarterly, a written report of the amounts so expended and the purposes for which such expenditures were made.

Section 7. This Plan may be terminated at any time with respect to the Class A shares of any Fund by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding Class A voting securities of that Fund.

Section 8. All agreements with any person relating to implementation of this Plan with respect to any Fund shall be in writing, and any agreement related to this Plan with respect to any Fund shall provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. That such agreement may be terminated at any time, without payment of any penalty, by vote of a majority of the Independent
Trustees or by vote of majority

of the outstanding Class A voting securities of such Fund, on not more than 60 days' written notice to any other party to the agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. That such agreement shall terminate automatically in the event of its assignment.

Section 9. This Plan may not be amended to increase materially the amount of the Distribution and Servicing Fee permitted pursuant to Section 1 hereof without approval in the manner provided in Section 3 hereof, and all material amendments to this Plan shall be approved in the manner provided for approval of this Plan in Section 4 hereof.

Section 10. As used in this Plan, (a) the term "Independent Trustees" shall mean those Trustees of the Trust who are not interested persons of the Trust, and have no direct or indirect financial interest in the operation of this Plan or any agreements related to it, (b) the terms "assignment", "interested person" and "majority of the outstanding voting securities" shall have the respective meanings specified in the Act and the rules and regulations thereunder, subject to such exemptions as may be granted by the Securities and Exchange Commission, (c) the term "introducing broker" shall mean any broker or dealer who is a member of the National Association of Securities Dealers, Inc. and who is acting as an introducing broker pursuant to clearing agreements with the Distributor; and (d) the term "participating broker" shall mean any broker or dealer which is a member of the National Association of Securities Dealers, Inc. and who has entered into a selling or dealer agreement with the Distributor.

Section 11. This Plan has been adopted pursuant to Rule 12b-1 under the Act and is designed to comply with all applicable requirements imposed under such Rule. All Distribution and Servicing Fees, to the extent primarily intended to result in the sale of Trust shares, shall be deemed to have been made under this Plan and pursuant to clause (b) of such Rule.

Dated: February 1, 2021

## Ex-99.(P)(3)

**Exhibit p.3**

![](x1_c105280a001.jpg)

**Code of Ethics**

**Voya Financial, Inc.**

**Voya Investment Management LLC**

**Voya Investments, LLC**

**Voya Investment Management Co. LLC**

**Voya Investment Management (UK) Limited**

**Voya Alternative Asset Management LLC**

**Pomona Management LLC**

**Voya Investments Distributor, LLC**

**Voya Realty Group, LLC**

**Voya Investment Trust Co.**

**Voya funds**

**AUGUST 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Adoption of Code of Ethics

This Code of Ethics *(*the *"Code")* has been adopted by each of the registered investment companies advised by Voya Investments, LLC (or an affiliate) and operating under the Voya funds umbrella (the "Voya funds") and by each of the following Voya Entities (collectively, referred to as "Voya Entities"):

Voya Investment Management LLC<br> Voya Investments, LLC<br> Voya Investment Management Co. LLC<br> Voya Alternative Asset Management LLC<br> Pomona Management LLC<br> Voya Investments Distributor, LLC ("VID")<br> Voya Realty Group, LLC<br> Voya Investment Trust Co.<br> Voya Investment Management (UK) Limited

The provisions of the Code are applicable to all directors, trustees, officers and persons employed or appointed by one or more of the Voya Entities as well as their immediate family members living in such designated person's household (collectively, referred to as "Employees") unless otherwise noted. Employees on short-term disability, whose access rights have not been revoked will still be subject to the Code. Employees on long-term disability, whose access rights have been revoked will not be subject to the Code during the leave period.

In addition, the Code is applicable to the trustees/directors of each of the Voya funds (the "Voya funds Directors").

All Employees and the Directors of the Voya funds (collectively, referred to as "Covered Persons") will be provided with a copy of this Code upon employment with the Voya Entities or appointment and notified when any material amendments are made to the Code.

The Code is not intended to supersede or otherwise replace the Voya Code of Business Conduct and Ethics. All of the policies and guidelines contained in the Voya Code of Business Conduct and Ethics shall remain in full force and effect as to Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Covered Persons

**Certification of Compliance.** All Covered Persons are required to certify to the Voya IM Compliance Department annually, or whenever this Code is materially amended, that they have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• read and understand the provisions contained in the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complied with all the requirements of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reported all transactional information required by the Code.

Generally, as an employee of the Company, you may be held personally liable for any improper or illegal acts committed during the course of your employment; non-compliance with this policy may be deemed to encompass one of these acts. Accordingly, you must read this policy and comply with the spirit and the strict letter of its provisions. Failure to comply may result in the imposition of serious sanctions, which may include, but are not limited to, letter of written reprimand, the disgorgement of profits,

cancellation of trades, selling of positions, and suspension of personal trading privileges, dismissal, and referral to law enforcement or regulatory agencies.

Covered Persons are required to certify their receipt and understanding of and compliance with the Code within ten days of becoming a Covered Person. On an annual basis, all Covered Persons are required to re-certify their understanding of and compliance with the Code. You will be provided with timely notification of these certification requirements and directions on how to complete them by the Code of Ethics Office. Other reporting and certification requirements are set forth in the Gifts and Business Entertainment, Political Contributions, and Personal Securities Transactions Sections of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Violations of the Code

Employees are required to report any known or suspected violations of the Code to the Voya IM Compliance Department immediately. An Employee who violates this Code or fails to report a violation of the Code may be subject to sanctions. For example, if the same security is purchased or sold on the same day by an Employee, the Employee following a violation, may be required to disgorge profits to charity. In addition, any Employee that violates the Code's pre-clearance or transaction reporting provisions may also be suspended from further trading for a period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Exceptions to the Code

Exceptions to the Code will only be made under extraordinary circumstances. No exception may be granted for those sections of the Code that are mandated by regulation.

Exceptions may be made only upon prior request, and no exception will be granted subsequent to a violation of the Code. To be granted an exception to the Code, a written request regarding the nature of the exception must be made and submitted to Voya IM's Chief Compliance Officer and approved by her or him and a member of Voya IM's Management Committee ("MC"). Exceptions to the Code shall be reported as applicable to the Chief Compliance Officer of the Voya funds and the Voya funds Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Statement of Fiduciary Standards

A fiduciary is a person or organization that manages money or property for another, usually a client, and, as a result, has a legal duty to act in the best interests of that client. This Code is based on the overriding principle that the Employees have a fiduciary duty to clients, including the Voya funds, while the Voya funds' Directors of the have a fiduciary duty only to the Voya funds. Our investment advisers owe a fiduciary duty to the Clients for which they serve as an adviser or sub-adviser. Covered Persons of our investment advisers must avoid activities, interests, and relationships that could interfere or appear to interfere with our advisers' fiduciary duties. Accordingly, Covered Persons shall conduct their activities in accordance with the following standards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.** **Clients' Interests Come First.** In the course of fulfilling
their duties and responsibilities, Covered Persons must at all times place the interests of the clients (or, in the case of the
Voya funds Directors, the Voya funds) first. In particular, Covered Persons shall avoid putting their own personal interests ahead
of the interests of a client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.** **Conflicts of Interest Shall Be Avoided.** Covered Persons must avoid
any situations involving an actual or potential conflict of interest or possible impropriety with respect to their duties and responsibilities
to, in the case of an Employee, a Voya Entity or a client of a Voya Entity or in the case of a Voya funds Director, the Voya funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3.** **Compromising Situations Shall Be Avoided**. Covered Persons shall never
take advantage of their position of trust and responsibility. Covered Persons must avoid any situation that might compromise or
call into question their exercise of full independent judgment in the best interests of clients.

All activities of Covered Persons shall be guided by, and adhere to, these fiduciary standards. The remainder of this Code sets forth specific rules and procedures that are consistent with these fiduciary standards. However, all activities by Employees are required to conform to these standards regardless of whether the activity is specifically covered in this Code. Any violation of the Code by an Employee may include but not be limited to reprimand, suspension, disgorgement of trading profits and termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Duty of Confidentiality

Covered Persons must keep confidential any non-public information regarding Voya, a Voya Entity, a Voya fund, and any client or any entity whose securities they know or should know are under investment review by a portfolio management team acting on behalf of a Voya Entity. Covered Persons have the highest fiduciary obligation not to reveal confidential information of any nature to any party that does not have an explicitly clear and compelling need to know such information.

All information submitted by a Covered Person to the Voya IM Compliance Department pursuant to this Code will be treated as confidential information. It may, however, be made available to senior management, governmental and governmental agencies with regulatory authority over the Voya Entities, as well as to the Voya funds Directors, and each of their auditors and legal advisors, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Covered Persons' Duty to Comply with Federal Securities Laws

Voya Entities' activities are governed by the federal securities laws, including the Investment Advisers Act of 1940, as amended (the "Advisers Act") and the Investment Company Act of 1940, as amended. Covered Persons are expected to adhere to the federal securities laws, whether or not the activity is specifically covered in this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Personal Trading Restrictions

The restrictions of this section apply to all Employees, covered under the personal trading policies and procedures of Voya Investment Management ("Voya IM"), and to accounts over which they have the authority to make investment decisions, for all transactions involving securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1.** **Pre-Clearance of Securities Transactions.** Except for the transactions
listed below, approval must be obtained from the Voya IM Compliance Department before entering an order to buy or sell or transfer
securities by gift, engaging in derivative transactions, or selling of shares in connection with margin calls. **An approval to trade is only valid on the business day it is received (note: such approvals terminate at close of business day on the date such approval is granted)**. If you receive an approval and do not complete the trade that same day, you must seek pre-clearance to
complete the trade the next (or any subsequent) business day. Except as noted below, an approval must be received for every transaction.
Pre-clearance

approvals for securities ***traded on a U.S. exchange or in a U.S. market*** are effective until the close of business on the day that your pre-clearance request has been approved. Pre-clearance approvals for securities ***traded on a foreign exchange or in a foreign market*** are effective until the close of business on the business day following approval of your pre-clearance request. If you want to modify your trade request previously submitted in any way (*e.g.*, date of execution or share quantity), you must submit a new pre-clearance request.

The Voya Entities utilize a vendor system to process personal trading. All preclearance requests shall be made via the system, which can be accessed at: <u>Protegent PTA</u>.

Employees assigned portfolio management or trading responsibility are prohibited from knowingly buying or selling the same security traded in an associated client account for a period of 15 days (7 days prior to the client trade and 7 days after the client trade).

Private Placement investment personnel must obtain pre-clearance to purchase or sell private placements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. Pre-Clearance and Holding Period Requirements for Voya Financial securities.

**Employees must obtain pre-clearance for transactions involving Voya Financial securities, including:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Open market purchases and sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gifting or making a charitable contribution of your holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in Voya Company Stock Fund in the 401(k) (other than automatic purchases

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• made pursuant to an established payroll-deduction program, or transactions involving automatic
and/or pro-rata rebalances); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of Restricted Stock (other than the immediate sales upon vesting of securities).

**Employees who wish to transact in Voya securities should consider the following before seeking pre-clearance and transacting:**

**Voya Securities *must be held for a minimum of 60 calendar days from the acquisition date,* including the *Voya Company Stock Fund in Voya 401(k) accounts.***

Employees are ***prohibited from shorting*** any securities issued by Voya.

Employees are ***prohibited from trading securities*** issued by Voya during the ***"Closed Period for Voya Financial Instruments,"*** including trades in Voya 401(k) accounts.

***Warning: Failure to Pre-Clear will result in sanctions including suspension of personal trading privileges.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. Exceptions to Pre-Clearance of Securities Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct obligations of the Government of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High quality short-term debt instruments, including bankers' acceptances,
bank certificates of deposit, commercial paper, money market securities and repurchase agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares of open-end funds, including shares held in Voya's 401(k) plan (as defined in *Transactions in Voya Fund Shares*, below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in accounts over which an Employee has no direct or indirect
control or influence (managed or discretionary accounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions under any incentive compensation plan sponsored by the Voya Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made through an automatic dividend reinvestment plan, automatic
payroll deduction or similar program (excluding Self Directed Brokerage Accounts) where the timing of purchases and sales is controlled
by someone other than the Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions involving Bitcoins or other cryptocurrencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made through a fully discretionary Robo-Advisor program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An exercise of pro-rata rights issued by a company to all the holders of
a class of its securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On any given day, transactions involving 100 shares or less (per account)
of common stock issued by companies included in the S&P 500 Index; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On any given day, transactions involving 100 shares or less (per account)
of Exchange- Traded Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions involving penny stocks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions involving options on an index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions involving interval closed-end funds.

While the securities transactions noted above may not need to be pre-cleared, they may need to be held and reported in accordance with the reporting requirements set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4.** **Prohibition on Initial Public Offerings and Initial Coin Offerings.** Employees
are prohibited from acquiring securities in initial public offerings, or initial coin offerings; except for transactions made pursuant
to an employee incentive compensation, retention or other program put in place by a Voya Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5.** **Restrictions on Private Placements.** Employees are prohibited from
acquiring non-public securities (a private placement) without the prior approval of the Voya IM Compliance Department. If an Employee
is granted approval to make such a personal investment, that Employee will not participate in any consideration of whether clients
should invest in the same issuer's public or non-public securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6.** **Prohibition on Short-Term Trading Profits.** Employees are prohibited from profiting from

the purchase and sale, or sale and purchase, of the same (or related) securities or exchange– traded funds as well as shares of Voya open-end funds. Profits made in connection with short- term trades may be subject to disgorgement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7.** **Borrowing Money from Suppliers or Clients.** Employees may not borrow
money from any of Voya IM's suppliers, consultants, or clients. However, the receipt of credit on customary terms in connection
with the purchase of goods or services is not considered to be borrowing within the foregoing prohibition. In addition, acceptance
of loans from other banks or financial institutions on customary terms to finance proper and usual activities, such as home mortgage
loans, is permitted except where prohibited by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Holding period requirements are as follows:

Shares of securities (including, Voya Company Stock Fund, individual stocks, bonds, closed-end funds, derivatives, etc.) must be held for 60 calendar days from the purchase date.

Shares of exchange-traded funds must be held for 30 calendar days from the purchase date.

Shares of Voya open-end funds (including 401(k) transactions other than those involving the Voya Company Stock Fund) must be held for 30 calendar days from the purchase date. **Note:** The 30-calendar day holding period for shares of Voya open-end mutual funds is measured from the time of the most recent purchase of the shares of the relevant Voya fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1.** **Prohibition of Short Selling and Derivatives of Voya Securities.** Because
of the heightened legal risk, the potential misalignment of your interests and those of Voya Financial and its shareholders, and
the inappropriateness of engaging in speculative transactions involving Voya Financial securities, you may not engage in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Short sales of Voya Financial common stock. For example, you cannot sell
Voya Financial common stock that you do not own, or if you own the stock, you cannot deliver it against such sale, and borrowing
shares to complete the sale; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hedging or other transactions involving options (including exchange-traded
options), puts, calls, forward contracts or other derivatives involving Voya Financial securities (excluding stock awards granted
under any Voya Financial incentive plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2.** **Prohibition of Trading in Voya Securities during the "Closed Period".** Employees are prohibited from trading Voya Securities, including the Voya Company Stock Fund in Voya's 401(k) plan, during
the "Closed Period for Voya's Financial Instruments" as set forth by Voya Financial. The Voya Closed Periods
are set forth on the vendor system utilized to process personal trading requests, which can be accessed at:  **<u>Protegent PTA</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Reporting Obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1.** **Disinterested Directors/Trustees** 

Voya funds Directors who are not deemed to be "interested persons" (as that term is defined under the Investment Company Act of 1940, as amended ("IC Act") of a Voya fund, its investment adviser or the adviser's affiliate (the "Disinterested Directors") must submit a quarterly report containing the information set forth in 10.2 - 10.5 below, only with respect to those transactions for which such person knew or, in the ordinary course of fulfilling his or

her official duties as a Disinterested Director, should have known, that during the 15-day period immediately before or after the Disinterested Director's transaction in securities that are otherwise subject to the reporting requirements described herein, an applicable Voya und had purchased or sold the security at issue or that an investment adviser or sub-adviser for an applicable Voya fund had considered purchasing or selling such security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.** **Initial Disclosure of Personal Holdings.** Employees are required to
disclose all their personal securities holdings to the Voya IM Compliance Department within 10 days of commencing employment with
a Voya Entity. The holdings report must be current as of a date not more than 45 days prior to the commencement of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.** **Securities Transaction Records.** Employees should be aware that the
Voya Entities maintain a list of designated broker-dealers with whom Employees may maintain a brokerage account. Employees shall
notify the Voya IM Compliance Department if they intend to open, or have opened, a brokerage account. If requested, Employees shall
direct their brokers to supply Compliance with duplicate confirmation statements of their securities transactions and copies of
all periodic statements for their accounts. Employees must report new authorized brokerage accounts to the Compliance Department
within thirty (30) days of funding the account. Note: Employees may not trade in the new account prior to reporting the account.
Any brokerage account opened to facilitate cryptocurrency trading is a reportable account under the Code and must be held with
an approved designated broker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4.** **Quarterly Account and Transaction Reports.** Employees are required
to submit a report listing their securities transactions made during the previous quarter within 30 days of the end of each calendar
quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5.** **Annual Holdings Report.** Employees are required to submit a report
listing all securities held as of December 31 of the year reported within 30 days of the end of the calendar year. The holdings
reports must be current as of a date not more than 45 days prior to the date the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.6.** **Information to be Reported.** Employees are required to provide the
following information when submitting reports as required by 10.2. through 10.5., above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Initial and Annual Holdings Reports must include the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• title or description and type of security, the exchange ticker symbol or
CUSIP number, the number of shares or principal amount of each security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealer or bank where accounts are held; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• date the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.8.** **Quarterly Transaction Reports** must include the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• title or description and type of security, the exchange ticker symbol or
CUSIP number, the number of shares and principal amount of each security (as well as the interest rate and maturity date, if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trade date and type of transaction (*i.e.*, buy, sell, open, close, etc.):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price of the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealer or bank account through which the transaction was affected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• date the report is submitted.

All reports, other than the Initial Disclosure of Personal Holdings, shall be made via the vendor system, which can be accessed at: <u>Protegent PTA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Transactions in Voya Fund Shares

The following restrictions and requirements apply to all purchases and sales of shares of open-end funds issued by the Voya funds other than money market and short-term bond funds ("Voya fund Shares") and all holdings of Voya fund Shares by Covered Persons, including those in which they have a beneficial ownership interest, except as provided below.

These restrictions and requirements do not apply to purchases of Voya fund Shares through (1) an automatic dividend reinvestment plan; or (2) through any other automatic investment plan, automatic payroll deduction plan, or other automatic plan approved by the Voya IM Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Compliance with Prospectus

All transactions in Voya fund Shares must be in accordance with the policies and procedures set forth in the Prospectus and Statement of Additional Information for the relevant fund, including but not limited to the fund's policies and procedures relating to short term trading and forward pricing of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. Additional Restrictions

Certain Covered Persons may be considered insiders to a closed-end Voya fund. In such cases, these persons will be notified of their status as well as advised of additional restrictions imposed on them and their ability to transact in such Voya closed-end fund.

Solely to facilitate compliance with timely Form 4 and 5 filing requirements with the Securities and Exchange Commission, all such insiders must submit a written report of any transaction involving a closed-end Voya fund on the trade date of such transaction to the Voya IM Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Voya IM Gift & Entertainment Policy

As a general rule, an Employee should not give or accept an inappropriate or significant Gift or Entertainment to/from a third party that has any business dealings with Voya Financial. The following provides guidelines related to the giving or acceptance of gifts, entertainment or non-cash compensation by Voya IM employees. All Voya IM employees who are also FINRA registered representatives are, to the extent they are conducting business on behalf of a Voya IM broker-dealer, also subject to the requirements of the FINRA. (Note: those requirements are described more fully in the appropriate broker-dealer Compliance Manual).

This Policy should be read in conjunction with the Voya Financial Conflicts of Interest Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Nominal Business Gifts and Business Entertainment

Giving or receiving gifts and gratuities in a business setting may give rise to an appearance of impropriety or raise a potential conflict of interest. As a general rule, while an employee may accept a nominal gift or occasional, normal and customary meals and/or business entertainment, an employee should not accept an inappropriate or significant gift from or participate in inappropriate or excessive entertainment with a third-party having business dealings with Voya IM, such as a customer, broker, or vendor.

While "inappropriate" or "significant" may be difficult to define, an employee should not give or accept gifts and should refrain from participating in entertainment that is so excessive, frequent or extensive as to raise any question of impropriety. Ultimately, except for personal gifts explained more fully below, gifts or entertainment must have a clear connection with Voya IM's business, and are not acceptable if an independent third party might think that the employee would be influenced in conducting business.

Family members (including domestic partners) of employees are not permitted to accept fees, gifts, entertainment, invitations to seminars/conferences, payments or other favors in connection with any business of Voya IM. Any questions should be directed to your supervisor or Compliance Officer, and in the case of FINRA registered representatives conducting business on behalf of a Voya IM broker-dealer, your broker-dealer supervisor.

Employees who plan to gift or entertain anyone affiliated with a public entity, including but not limited to state and municipal pension plans, have a special responsibility to both know <u>and</u> adhere to the policy stated above, and to comply fully with additional policies, procedures, and restrictions placed on such employees by statue statutes, municipal regulations or internal policies. Public employees may be under an **<u>even more stringent restrictions or outright prohibitions</u>** with regard to receipt of meals and entertainment. Any Voya employee seeking to entertain a public entity employee should first check with Compliance/Legal to see what, if any, additional restrictions may apply. Compliance and Legal can assist in determining what such restrictions are **prior to** the gifting or entertaining of such individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gifts

The following are some guidelines or examples of acceptable, nominal gifts.

An acceptable gift should be of nominal value, but may not exceed a face value of **$100 per year,** per third party, per year.

Purely personal gifts are permissible. Personal gifts are gifts that serve a personal (not business) purpose, are paid by the giver (not the giver's employer) and are between close friends or family members (*e.g.*, gifts that are related to commonly recognized personal events, such as births, promotion, wedding, or retirement).

Discounts or rebates on merchandise or services that do not exceed those available to arm's length clients. The final total cost or value of goods or services is subject to a $100 limit per third party, per year.

Advertising or promotional items with a value of not more than $100 per third party, per year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business Meals and Entertainment

– The following are some guidelines regarding acceptable business meals and entertainment:

Normal, customary, and occasional business meals or entertainment where the meal or entertainment takes place in one event and the person providing the entertainment is present. A good test is whether Voya IM would consider such an expense reasonable, if not paid for by a third party. Also, a good rule of thumb is whether an employee can eat, drink, or enjoy the entertainment in one sitting.

Business meals and entertainment should be consistent with FINRA guidance and advice. As such, the **total value of the event may not exceed $300 per employee, <u>per event</u>, subject to an annual maximum amount of $1,000 per third party**. Exceptions to these limits may be granted but must be pre-approved by Compliance and the employee's MC representative.

– Entertainment, such as tickets to sporting events, golf fees, or ski lift tickets, will be evaluated based on the published ticket price. Again, in all cases both the giver and the recipient must be present.

The cost of local transportation does not count towards the $300 per event/$1000 annual limit, provided <u>that the mode of transportation must be reasonable</u>. Any travel and lodging related to the event should be paid for by Voya IM subject to the Voya IM Travel and Expenses policies and procedures

Any exceptions to the above guidelines must be approved by the employee's manager and MC representative prior to acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Outside Business Activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1.** **Outside Business Interests and Private Investments** 

All employees are required to devote their full time and efforts to the business of Voya IM. You are not to maintain outside employment activities that compromise job performance or interfere with your regular duties. In addition, no person may make use of either his or her position as an employee or information acquired during employment or make personal investments in a manner that may create a conflict, or the appearance of a conflict, between the employee's personal interests and the interests of Voya IM.

To assist in ensuring that such conflicts are avoided, an employee **must** obtain the written approval of the employee's supervisor **and** the Compliance Department prior to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Serving as a director, officer, general partner or trustee of, or as a consultant
to, any business, corporation or partnership, including family-owned businesses and charitable, non-profit and political organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Serving as a registered representative of any broker-dealer other than VID.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making any monetary investment in any non-publicly traded business, corporation
or partnership, including passive investments in private companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accepting employment of any kind or engaging in any other business outside of Voya IM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acting or representing that the employee is acting as agent for Voya IM,
an Adviser or any other firm in any investment banking matter or as a consultant or finder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Forming or participating in any stockholders' or creditors' committee
that purports to represent security holders or claimants in connection with a bankruptcy or distressed situation or in becoming
actively involved in a proxy contest (see also, 8 *Personal Trading Restrictions*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Receiving compensation of any nature, directly or indirectly, from any person,
firm, corporation, estate, trust or association other than Voya IM, whether as a fee, commission, bonus or other consideration
such as stock, options or warrants other than compensation earned prior to commencement of employment with Voya IM.

Every employee is required to complete a disclosure form on the PTA Compliance site, which can be accessed a<u>t Protegent PTA</u> and have such form approved by the employee's supervisor and the Compliance Department prior to serving in any of the capacities or making any of the investments described heretofore. ***Similarly, each employee is required to maintain the data initially disclosed on such form and notify the Compliance Department (and the employee's supervisor*) *in the event of any change to the information provided after initial approval. From time to time, employees may be asked to renew their outside business activity information.***

In addition, an employee must advise the Legal Department and his or her supervisor if the employee is or believes that he or she may become a participant, either as a plaintiff, defendant or witness, in any litigation or arbitration that could reasonably relate to the business of Voya IM. Written confirmation of such advice should be obtained from the employee's supervisor and the Legal Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. "Control" Persons of Public Companies

Every employee must disclose to Voya IM if their spouse or any of their parents, siblings or children ("Immediate Family Members") hold a position as a director or executive officer of any public company. Voya IM may, in its sole discretion, place limitations on an employee's investment activities in the event an employee's Immediate Family Member holds a position as a director or executive officer of any public company. ***Similarly, each employee is required to maintain the data initially disclosed on such form and notify the Compliance Department (and the employee's supervisor) in the event of any change after initial approval.***

From time to time, an employee of Voya IM may be offered a position as an executive officer or director of a publicly traded company, which, if accepted, would subject the employee to requirements arising under Section 16 of the 1934 Act ("Section 16"). Prior to accepting the position, the employee must receive clearance from the Chief Compliance Officer and a member of the Voya IM senior management team. If the employee is permitted to accept the position, the employee will also be subject to the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trades for client accounts or funds over which the employee has sole or
shared investment discretion must also comply with the publicly traded company's policies and procedures. It is the responsibility
of the employee to understand and adhere to such company's reporting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Appropriate disclosure must be provided to affected clients. The disclosure
can be provided via offering documents or other communications sent to affected investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In accordance with Voya IM's policies on confidential information and insider trading,
the employee may not, under any circumstances, trade in the company's securities—whether for personal or client accounts—if
the employee is in possession of material, non-public information regarding the company. Likewise, material, non-public information
regarding the company may not be shared with other Voya IM personnel, other than the Voya IM Legal or Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.** **Political Activity** 

While Voya maintains a political action committee, political contributions from Advisers or their respective employees may raise various legal and regulatory issues. Most notably, Rule 206(4)- 5 under the Advisers Act prohibits an Adviser from receiving compensation from a government entity for two years if the Adviser or certain employees contributed money to a government official who is in a position to influence the selection of the Adviser to manage a public fund or provide investment advice to a government entity. Also, some states and municipalities may have laws disqualifying an Adviser from managing assets for various governmental entities if the Adviser or certain of its representatives have made contributions or provided gifts to certain candidates for office. To ensure compliance with these laws and to avoid actual and potential conflicts of interest, Voya IM has adopted the procedures described below, which requires pre-approval by Compliance and the Voya Political Activity Review Committee ("PARC") of certain political activities. The activities requiring pre-approval and the procedures for obtaining pre-approval are set out below.

<u>Prior</u> to making any personal contribution (whether it be monetary, or event driven, such as hosting a fundraiser) in an individual capacity to an incumbent or candidate, political party committee or political action committee at the state or local level (including a current state or local government employee running for federal office), all employees of Voya IM must submit a request for approval from Compliance and PARC through the PTA Compliance site, which can be accessed at <u>Protegent</u> <u>PTA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All political contributions to a state or local governmental official in
an amount equal to or exceeding $150 will also require pre-approval from the employee's manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Personal political activities of employees must be kept separate from employment
and any expenses related to these activities may not be charged to an Adviser; personal political contributions will not be reimbursed.
Also, employees are not to use Voya IM's facilities (such as telephones and photocopiers) and may not use working hours for
political campaign purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When acting in a volunteer capacity to a candidate running for office at
the state or local level, you must obtain pre-approval from Compliance. All requests must be submitted through the PTA Compliance
site. For volunteer activity, it is important that your activities cannot be viewed as connected with your position with Voya IM.
To the extent that your volunteer activity involves soliciting or fundraising for political contributions, you will also be required
to obtain pre-approval from Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees should take extra care when soliciting fellow employees to ensure
that the solicitation never gives the appearance of being coercive or otherwise related to their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees who seek or are appointed to any government position, federal,
state or local, paid or unpaid, must obtain pre-approval from Compliance of such activity to ensure

compliance with applicable conflict of interest laws. All requests must be submitted through the PTA Compliance site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees may not engage in any lobbying activities on behalf of Voya IM
or any affiliated entity without prior approval from Compliance. Please contact the Compliance Department if you are not sure whether
your activities would be considered lobbying.

The use of an Adviser's funds in connection with an election is generally prohibited by law. In order to avoid any allegations of impropriety, it is Voya IM's policy that its funds may not be contributed to federal, state or local election campaigns. Any exception to this item, such as requests for company support of political events, political candidates and their campaigns, political parties or political action committees, must be pre-approved by Compliance. All requests must be submitted through the PTA Compliance site, which can be accessed at <u>Protegent PTA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employee participation in the Voya political action committee is strictly voluntary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gifts to government officials, including entertainment and meals, are generally prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State and local laws dealing with campaign fund raising vary from jurisdiction to jurisdiction.
Some laws expressly prohibit government officials from contracting, on behalf of their political organizations, with any firm(s)
whose employees have made a donation to that official's political campaign.

Voya IM employees are required to complete a Political Contribution/Activity Certification on a quarterly basis. Please note that Compliance will keep necessary records based on the information gathered, in compliance with SEC Rule 204-2.

Note: all references to employees in this Section also apply to an employee's Immediate Family Members.

**Code of Ethics Guide – Securities Transactions Matrix**

---

| | | | |
|:---|:---|:---|:---|
| **Type of Security** | **Pre-Clearance<br> Required** | **Reporting<br> Required** | **Holding Period** |
| **<u>Covered Securities Transactions for Pre-Clearance</u>** | **<u>Covered Securities Transactions for Pre-Clearance</u>** | **<u>Covered Securities Transactions for Pre-Clearance</u>** | **<u>Covered Securities Transactions for Pre-Clearance</u>** |
| Individual Stocks | Yes | Yes | 60 calendar days from purchase |
| Bonds | Yes | Yes | 60 calendar days from purchase |
| Closed-end Funds, including Voya Closed end Funds | Yes | Yes | 60 calendar days from purchase |
| Preferred Stock | Yes | Yes | 60 calendar days from purchase |
| Exchange Traded Funds (ETFs) | Yes | Yes | 30 calendar days from purchase |
| Exchange Traded Notes (ETNs) | Yes | Yes | 60 calendar days from purchase |
| Structured Notes | Yes | Yes | 60 calendar days from purchase |
| Derivatives on an individual stock | Yes | Yes | 60 calendar days from purchase |
| Derivatives on an Exchange Traded Fund | Yes | Yes | 30 calendar days from purchase |
| Transactions involving Voya securities, including the Voya Company Stock Fund in Voya's 401(k) plan accounts | Yes | Yes | 60 calendar days from purchase |
| Sales of Voya performance shares acquired from a vesting (other than the immediate sale upon vesting) | Yes | Yes | N/A |
| Sales of Restricted Stock | Yes | Yes | N/A |
| Sales of stock acquired via Stock Purchase Plans including sales of Voya stock acquired through Voya's Stock Purchase Plan | Yes | Yes | N/A |
| **<u>Private Investments and Outside Activities</u>** | **<u>Private Investments and Outside Activities</u>** | **<u>Private Investments and Outside Activities</u>** | **<u>Private Investments and Outside Activities</u>** |
| Private Placements | Yes | Yes | N/A |
| Outside Activities | Yes | Yes | N/A |

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|:---|:---|:---|:---|
| **Type of Security**<br>| **Pre-Clearance<br> Required** | **Reporting<br> Required** | **Holding Period**<br>|
| **<u>Transactions Exempt from Pre-Clearance</u>** | **<u>Transactions Exempt from Pre-Clearance</u>** | **<u>Transactions Exempt from Pre-Clearance</u>** | **<u>Transactions Exempt from Pre-Clearance</u>** |
| Direct obligations of the Government of the United States | No | No | N/A |
| High quality short-term debt instruments<br><u>Including</u>: Bankers' acceptances, bank certificates of deposit, commercial paper, money market securities and repurchase agreements | No | No | N/A |
| Shares of Voya open-end funds<br><u>Including</u>: funds held within the Voya 401(k) | No | Yes | 30 calendar days from the most recent purchase date of the relevant fund |
| Shares of open-end funds that are not managed by the Voya Entities | No | No | N/A |
| Managed or discretionary accounts | No | Yes | N/A |
| Incentive compensation plan sponsored by the Voya Entities | No | Yes | N/A |
| Automatic dividend reinvestment plan, automatic payroll deduction, etc.<br><u>Excluding</u>: Self Directed Brokerage | No | Yes | N/A |
| Bitcoin or other cryptocurrencies | No | No | N/A |
| Exercise of pro-rata rights issued by a company to all the holders of a class of its securities | No | Yes | N/A |
| On any given day, transactions involving 100 shares or less (per account) of common stock issued by companies included in the S&P 500 Index | No | Yes | 60 calendar days from purchase |
| On any given day, transactions involving 100 shares or less (per account) of Exchange-Traded Funds. | No | Yes | 30 calendar days from purchase |

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| | | | |
|:---|:---|:---|:---|
| **Type of Security** | **Pre-Clearance <br> Required** | **Reporting <br> Required** | **Holding Period** |
| Penny stocks | No | Yes | 60 calendar days from purchase |
| Options on an index | No | Yes | N/A |
| Interval closed-end funds | No | Yes | 60 calendar days from purchase |
| **<u>Prohibited Investments</u>** | **<u>Prohibited Investments</u>** | **<u>Prohibited Investments</u>** | **<u>Prohibited Investments</u>** |
| Short sales of Voya Financial common stock | Short sales of Voya Financial common stock | Short sales of Voya Financial common stock | Short sales of Voya Financial common stock |
| Hedging or other transactions involving options<br><u>Including</u>: exchange-traded options, puts, calls, forward contracts or other derivatives involving Voya Financial securities<br><u>Excluding</u>: stock awards granted under any Voya Financial incentive plan | Hedging or other transactions involving options<br><u>Including</u>: exchange-traded options, puts, calls, forward contracts or other derivatives involving Voya Financial securities<br><u>Excluding</u>: stock awards granted under any Voya Financial incentive plan | Hedging or other transactions involving options<br><u>Including</u>: exchange-traded options, puts, calls, forward contracts or other derivatives involving Voya Financial securities<br><u>Excluding</u>: stock awards granted under any Voya Financial incentive plan | Hedging or other transactions involving options<br><u>Including</u>: exchange-traded options, puts, calls, forward contracts or other derivatives involving Voya Financial securities<br><u>Excluding</u>: stock awards granted under any Voya Financial incentive plan |
| Trading in securities issued by Voya during the "Closed Period for Voya Financial Instruments" | Trading in securities issued by Voya during the "Closed Period for Voya Financial Instruments" | Trading in securities issued by Voya during the "Closed Period for Voya Financial Instruments" | Trading in securities issued by Voya during the "Closed Period for Voya Financial Instruments" |
| Initial Public Offerings | Initial Public Offerings | Initial Public Offerings | Initial Public Offerings |
| Initial Coin Offerings | Initial Coin Offerings | Initial Coin Offerings | Initial Coin Offerings |
| Borrowing Money from Clients/Suppliers | Borrowing Money from Clients/Suppliers | Borrowing Money from Clients/Suppliers | Borrowing Money from Clients/Suppliers |

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| **<u>Other Key Reminders</u>** |
| Employees assigned portfolio management or trading responsibility are prohibited from knowingly buying or selling the same security traded in an associated client account for a period of 15 days (7 days prior to the client trade and 7 days after the client trade) |
| Approvals for **U.S. Securities** are effective until the close of business on the day that pre-clearance request is approved.<br>Approvals for **foreign securities** are effective until the close of business on the business day following pre-clearance approval. |

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