History

Virtus Investment Partners, formerly known as Phoenix Investment Partners, Ltd., was formed on November 1, 1995 through a reverse merger with Duff & Phelps Investment Management Co., at the time the investment management affiliate of Duff & Phelps Corporation.

From 1995 to 2001, Virtus was a majority-owned indirect subsidiary of Phoenix Life Insurance Co. During this period, the company purchased a majority interest in several boutique investment management companies to establish its multi-manager business model. In addition to Duff & Phelps Investment Management, Virtus’ affiliated managers include Kayne Anderson Rudnick Investment Management, LLC, Newfleet Asset Management (formerly SCM Advisors, LLC, and previously Seneca Capital Management), and Zweig Advisers LLC, which was founded by legendary Wall Street investor Martin Zweig

Martin Zweig

Martin E. Zweig is an American stock investor, investment advisor, and financial analyst. He is, according to Forbes Magazine renowned for his "eccentric and lavish lifestyle" as well having the most expensive residence in the United States. It was listed on the New York City real estate market a...

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On January 11, 2001, a subsidiary of Phoenix acquired the outstanding shares of Phoenix Investment Partners not already owned, and the company became an indirect wholly owned subsidiary of Phoenix.

In May 2005, Virtus acquired the remaining minority interest in SCM Advisors and in September of that year acquired the remaining minority interest in Kayne Anderson Rudnick, thereby increasing ownership of both companies to 100%. In May 2006, Virtus acquired the rights to advise, distribute and administer the Insight Funds from Harris Investment Management, Inc.

In February 2008, Phoenix announced it would spin-off Virtus Investment Partners as an independent asset management company through a pro-rata dividend of Virtus common stock to Phoenix's shareholders. On October 30, 2008, Harris Bankcorp Inc., a US subsidiary of Bank of Montreal announced it would acquire $45 million in convertible preferred stock, representing a 23 percent equity position in Virtus.

Virtus became an independent publicly traded company on December 31, 2008 upon completion of its spin-off from Phoenix. The first day of trading of VRTS was January 2, 2009, and company officials rang the opening bell at NASDAQ Market Site on January 5, 2009.

Business Overview

Virtus provides its investment products in a number of forms and through multiple distribution channels. The company has products in multiple styles and multiple disciplines, with offerings in different asset categories (equity, fixed income, alternatives and money market), market caps (large, mid and small), investment styles (growth, blend and value), and investment approaches (fundamental, quantitative, thematic). By offering a broad range of investment strategies and styles, the company can address clients’ varied investment goals and risk tolerance across different market cycles.

Retail products (available to individual investors) include open-end mutual funds, closed-end funds and separately managed accounts. The Virtus Mutual Funds family consists of approximately 45 open-end mutual funds that are distributed primarily through intermediaries, including national and regional broker-dealers, independent broker-dealers and independent financial advisory firms. Virtus' five closed-end funds, which are provided by two affiliated managers, encompass utility and tactical asset allocation strategies. The closed-end funds trade on the New York Stock Exchange.

Retail separately managed accounts comprise intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high-net-worth clients of the affiliated managers.

Virtus also manages institutional accounts for corporations, multi-employer retirement funds, foundations, endowments, and special purpose funds.

Principal Subsidiaries

Virtus operates a multi-manager asset management business, comprising a number of individual affiliated managers, each having its own distinct investment style, autonomous investment process and brand, and the services of unaffiliated subadvisers. Affiliated managers include:

• Duff & Phelps Investment Management Co., headquartered in Chicago, manages open- and closed-end funds and institutional separate accounts investing in global utilities, infrastructure and REITs. Institutional services are offered to corporations, municipalities, retirement and benefit plans, endowments, foundations and others.
• Kayne Anderson Rudnick Investment Management, LLC of Los Angeles offers a variety of actively managed equity and fixed-income strategies to individuals through open end mutual funds and separately managed accounts primarily to high-net-worth individuals. Institutional clients include endowments, foundations, corporations, public funds, and pension plans.
• Newfleet Asset Management is a full-service, multi-capability fixed income firm that manages open-end funds, institutional accounts, structured products, and high net worth/private client assets. It manages assets in three distinctive strategies: Multi-Sector Fixed Income; Core Plus Fixed Income; and Specialty Fixed Income.
• Zweig Advisers LLC is a registered investment advisor headquartered in New York that manages open- and closed-end funds in fundamental, small cap value, and tactical asset allocation investment styles. Its tactical asset allocation investment style, which seeks to participate in rising markets and limit losses during major declines, was modeled after the approach of Dr. Martin Zweig, author of Winning on Wall Street and a regular panelist on Louis Rukeyser's Wall Street.

Unaffiliated Subadvisers

Virtus supplements the investment capabilities of its affiliated managers through select unaffiliated subadvisers whose strategies are not available to retail mutual fund customers. These subadvisers include:

• The Boston Company Asset Management LLC of Boston, which manages assets across various investment strategies including US equity, non-US equity, global equity and alternatives;
• F-Squared Investments, Inc., a quantitatively based boutique investment firm located in Wellesley, MA that strives to deliver long-term outperformance by providing risk controls in down markets and enhanced alpha in up markets;
• Harris Investment Management, Inc. of Chicago, which focuses on active portfolio management that incorporates quantitative modeling and fundamental research;
• HIM Monegy Inc. of Toronto, an active fixed income investment manger that specializes exclusively in credit including high yield bonds, bank loans, and crossover strategies;
• Pyrford International, Ltd., of London, a wholly owned subsidiary of the Bank of Montreal that provides international asset management services;
• Sasco Capital, Inc., of Fairfield, CT, which specializes in contrarian/value equity investing using a disciplined approach that includes extensive fundamental analysis
  Fundamental analysis
  Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and...
  
  of business segments;
• Vontobel Asset Management, Inc. of New York, which is a wholly owned subsidiary of Vontobel Holding AG of Switzerland that specializes in managing long-only global equity portfolios.