UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-00945

 

 

Virtus Equity Trust

(Exact name of registrant as specified in charter)

 

 

101 Munson Street

Greenfield, MA 01301-9668

(Address of principal executive offices) (Zip code)

 

 

Kevin J. Carr, Esq.

Senior Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

One Financial Plaza

Hartford, CT 06103-2608

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 243-1574

Date of fiscal year end: September 30

Date of reporting period: September 30, 2021

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Reports to Stockholders.

 

  (a)

The Report to Shareholders is attached herewith.

 

  (b)

Not applicable.

 

ANNUAL REPORT
VIRTUS EQUITY TRUST
September 30, 2021
Virtus KAR Capital Growth Fund
Virtus KAR Equity Income Fund
Virtus KAR Global Quality Dividend Fund
Virtus KAR Mid-Cap Core Fund
Virtus KAR Mid-Cap Growth Fund
Virtus KAR Small-Cap Core Fund
Virtus KAR Small-Cap Growth Fund
Virtus KAR Small-Cap Value Fund
Virtus KAR Small-Mid Cap Core Fund
Virtus KAR Small-Mid Cap Growth Fund
Virtus KAR Small-Mid Cap Value Fund
Virtus SGA Emerging Markets Growth Fund
Virtus SGA Global Growth Fund
Virtus SGA New Leaders Growth Fund
Virtus Tactical Allocation Fund
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports like this one will no longer be sent by mail, unless specifically requested from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect at any time to receive not only shareholder reports but also certain other communications from the Fund electronically, or you may elect to receive paper copies of all future shareholder reports free of charge to you. If you own your shares directly with the Fund, you may make such elections by calling the Fund at 1-800-243-1574 or, with respect to requesting electronic delivery, by visiting www.virtus.com. An election made directly with the Fund will apply to all Virtus Mutual Funds in which you own shares directly. If you own your shares through a financial intermediary, please contact your financial intermediary to make your request and to determine whether your election will apply to all funds in which you own shares through that intermediary.
Not FDIC Insured • No Bank Guarantee • May Lose Value

Table of Contents
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Fund Fund
Summary 		Schedule
of
Investments
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11 44
13 46
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17 48
19 50
21 51
23 52
25 53
27 54
29 55
31 56
34 57
37 58
39 59
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Proxy Voting Procedures and Voting Record (Form N-PX)
The subadvisers vote proxies, if any, relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees”, or the “Board”). You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at https://www.sec.gov.
PORTFOLIO  HOLDINGS INFORMATION
The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT-P. Form N-PORT-P is available on the SEC’s website at https://www.sec.gov.
This report is not authorized for distribution to prospective investors in the Funds presented in this book unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.

Table of Contents
MESSAGE TO SHAREHOLDERS
To Virtus Equity Trust Shareholders:
I am pleased to present this annual report, which reviews the performance of your Fund for the 12 months ended September 30, 2021.
During this fiscal year, markets expressed optimism about the economic reopening that was driven by the release of COVID-19 vaccines, monetary support, and fiscal stimulus. Doubts crept in during the period, however, as the Delta variant impacted productivity and cascading supply chain issues led to higher prices. Strong corporate profitability drove equity markets higher for much of the period, although concerns about inflation and interest rates hindered fixed income markets.
Domestic and international equity indexes delivered strong returns for the 12 months ended September 30, 2021. U.S. large-capitalization stocks returned 30.00%, as measured by the S&P 500® Index, but were outpaced by small-cap stocks, which gained 47.68%, as measured by the Russell 2000® Index. Within international equities, developed markets, as measured by the MSCI EAFE® Index (net), returned 25.73%, while emerging markets, as measured by the MSCI Emerging Markets Index (net), gained 18.20%.
In fixed income markets, the yield on the 10-year Treasury rose sharply to 1.52% on September 30, 2021, from 0.69% on September 30, 2020, based on fears of rising inflation. The broader U.S. fixed income market, as represented by the Bloomberg U.S. Aggregate Bond Index, was down 0.90% for the 12-month period, but non-investment grade bonds, as measured by the Bloomberg U.S. Corporate High Yield Bond Index, were up 11.28%.
On behalf of our investment managers, I thank you for entrusting the Virtus Funds with your assets. Please call our customer service team at 800-243-1574 if you have questions about your account or require assistance. We appreciate your business and remain committed to your long-term financial success.
Sincerely,
George R. Aylward
President, Virtus Funds
November 2021
Refer to the Manager’s Discussion section for your Fund’s performance. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investing involves risk, including the risk of loss of principal invested.
1

Table of Contents
VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Equity Trust Fund (each, a “Fund”), you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. Class I shares and Class R6 shares are sold without sales charges and do not incur distribution and service fees. Class R6 shares also do not incur shareholder servicing fees. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The Annualized Expense Ratios may be different from the expense ratios in the Financial Highlights which are for the fiscal year ended September 30, 2021.
Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
    Beginning
Account Value
April 1, 2021 		  Ending
Account Value
September 30, 2021 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Capital Growth Fund
                
  Class A $ 1,000.00   $ 1,102.80   1.20 %   $ 6.33
  Class C 1,000.00   1,098.10   2.06   10.83
  Class I 1,000.00   1,103.90   1.00   5.27
  Class R6 1,000.00   1,105.30   0.73   3.85
KAR Equity Income Fund
                
  Class A 1,000.00   1,016.90   1.26   6.37
  Class C 1,000.00   1,012.80   2.00   10.09
  Class I 1,000.00   1,018.00   1.01   5.11
  Class R6 1,000.00   1,018.50   0.96   4.86
KAR Global Quality Dividend Fund
                
  Class A 1,000.00   1,020.80   1.35   6.84
  Class C 1,000.00   1,016.50   2.10   10.62
  Class I 1,000.00   1,022.20   1.10   5.58
  Class R6 1,000.00   1,023.40   0.78   3.96
KAR Mid-Cap Core Fund
                
  Class A 1,000.00   1,095.90   1.20   6.30
  Class C 1,000.00   1,091.90   1.95   10.23
  Class I 1,000.00   1,097.10   0.95   4.99
  Class R6 1,000.00   1,097.70   0.87   4.57
KAR Mid-Cap Growth Fund
                
  Class A 1,000.00   1,099.50   1.27   6.68
  Class C 1,000.00   1,095.20   2.00   10.50
  Class I 1,000.00   1,100.80   1.01   5.32
  Class R6 1,000.00   1,101.80   0.83   4.37
KAR Small-Cap Core Fund
                
  Class A 1,000.00   1,035.60   1.26   6.43
  Class C 1,000.00   1,032.00   1.98   10.09
  Class I 1,000.00   1,037.10   0.99   5.06
  Class R6 1,000.00   1,037.50   0.91   4.65
KAR Small-Cap Growth Fund
                
  Class A 1,000.00   1,055.70   1.34   6.91
  Class C 1,000.00   1,052.00   2.05   10.55
  Class I 1,000.00   1,057.00   1.07   5.52
  Class R6 1,000.00   1,057.50   0.97   5.00
2

Table of Contents
VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
    Beginning
Account Value
April 1, 2021 		  Ending
Account Value
September 30, 2021 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Small-Cap Value Fund
                
  Class A $1,000.00   $ 985.20   1.21%   $ 6.02
  Class C 1,000.00   981.50   1.97   9.79
  Class I 1,000.00   986.30   0.96   4.78
  Class R6 1,000.00   986.60   0.91   4.53
KAR Small-Mid Cap Core Fund
                
  Class A 1,000.00   1,043.00   1.30   6.66
  Class C 1,000.00   1,039.50   2.05   10.48
  Class I 1,000.00   1,045.00   1.00   5.13
  Class R6 1,000.00   1,045.40   0.97   4.97
KAR Small-Mid Cap Growth Fund
                
  Class A 1,000.00   1,093.00   1.30   6.82
  Class C 1,000.00   1,088.00   2.05   10.73
  Class I 1,000.00   1,093.90   1.05   5.51
  Class R6 1,000.00   1,094.90   0.99   5.20
KAR Small-Mid Cap Value Fund**
                
  Class A 1,000.00   964.00   1.17   1.83
  Class C 1,000.00   963.00   1.92   2.99
  Class I 1,000.00   964.00   0.92   1.44
  Class R6 1,000.00   965.00   0.82   1.28
SGA Emerging Markets Growth Fund
                
  Class A 1,000.00   928.30   1.48   7.15
  Class C 1,000.00   925.10   2.23   10.76
  Class I 1,000.00   930.10   1.23   5.95
  Class R6 1,000.00   930.30   1.05   5.08
SGA Global Growth Fund
                
  Class A 1,000.00   1,057.20   1.38   7.12
  Class C 1,000.00   1,053.20   2.15   11.07
  Class I 1,000.00   1,058.60   1.13   5.83
  Class R6 1,000.00   1,059.90   0.90   4.65
SGA New Leaders Growth Fund
                
  Class A 1,000.00   1,025.00   1.39   7.06
  Class C 1,000.00   1,021.20   2.14   10.84
  Class I 1,000.00   1,026.00   1.14   5.79
  Class R6 1,000.00   1,026.90   0.91   4.62
Tactical Allocation Fund
                
  Class A 1,000.00   1,072.50   1.02   5.30
  Class C 1,000.00   1,068.50   1.78   9.23
  Class I 1,000.00   1,072.90   0.79   4.11
  Class R6 1,000.00   1,074.20   0.63   3.28
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
** August 4, 2021, is the date the Fund started accruing expenses. Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (58) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
3

Table of Contents
VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
    Beginning
Account Value
April 1, 2021 		  Ending
Account Value
September 30, 2021 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Capital Growth Fund
                
  Class A $ 1,000.00   $ 1,019.05   1.20 %   $ 6.07
  Class C 1,000.00   1,014.74   2.06   10.40
  Class I 1,000.00   1,020.05   1.00   5.06
  Class R6 1,000.00   1,021.41   0.73   3.70
KAR Equity Income Fund
                
  Class A 1,000.00   1,018.75   1.26   6.38
  Class C 1,000.00   1,015.04   2.00   10.10
  Class I 1,000.00   1,020.00   1.01   5.11
  Class R6 1,000.00   1,020.26   0.96   4.86
KAR Global Quality Dividend Fund
                
  Class A 1,000.00   1,018.30   1.35   6.83
  Class C 1,000.00   1,014.54   2.10   10.61
  Class I 1,000.00   1,019.55   1.10   5.57
  Class R6 1,000.00   1,021.16   0.78   3.95
KAR Mid-Cap Core Fund
                
  Class A 1,000.00   1,019.05   1.20   6.07
  Class C 1,000.00   1,015.29   1.95   9.85
  Class I 1,000.00   1,020.31   0.95   4.81
  Class R6 1,000.00   1,020.71   0.87   4.41
KAR Mid-Cap Growth Fund
                
  Class A 1,000.00   1,018.70   1.27   6.43
  Class C 1,000.00   1,015.04   2.00   10.10
  Class I 1,000.00   1,020.00   1.01   5.11
  Class R6 1,000.00   1,020.91   0.83   4.20
KAR Small-Cap Core Fund
                
  Class A 1,000.00   1,018.75   1.26   6.38
  Class C 1,000.00   1,015.14   1.98   10.00
  Class I 1,000.00   1,020.10   0.99   5.01
  Class R6 1,000.00   1,020.51   0.91   4.61
KAR Small-Cap Growth Fund
                
  Class A 1,000.00   1,018.35   1.34   6.78
  Class C 1,000.00   1,014.79   2.05   10.35
  Class I 1,000.00   1,019.70   1.07   5.42
  Class R6 1,000.00   1,020.21   0.97   4.91
KAR Small-Cap Value Fund
                
  Class A 1,000.00   1,019.00   1.21   6.12
  Class C 1,000.00   1,015.19   1.97   9.95
  Class I 1,000.00   1,020.26   0.96   4.86
  Class R6 1,000.00   1,020.51   0.91   4.61
KAR Small-Mid Cap Core Fund
                
  Class A 1,000.00   1,018.55   1.30   6.58
  Class C 1,000.00   1,014.79   2.05   10.35
  Class I 1,000.00   1,020.05   1.00   5.06
  Class R6 1,000.00   1,020.21   0.97   4.91
KAR Small-Mid Cap Growth Fund
                
  Class A 1,000.00   1,018.55   1.30   6.58
  Class C 1,000.00   1,014.79   2.05   10.35
  Class I 1,000.00   1,019.80   1.05   5.32
  Class R6 1,000.00   1,020.10   0.99   5.01
4

Table of Contents
VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2021 TO September 30, 2021
    Beginning
Account Value
April 1, 2021 		  Ending
Account Value
September 30, 2021 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Small-Mid Cap Value Fund**
                
  Class A $1,000.00   $1,006.09   1.17%   $ 1.86
  Class C 1,000.00   1,004.89   1.92   3.06
  Class I 1,000.00   1,006.48   0.92   1.47
  Class R6 1,000.00   1,006.64   0.82   1.31
SGA Emerging Markets Growth Fund
                
  Class A 1,000.00   1,017.65   1.48   7.49
  Class C 1,000.00   1,013.89   2.23   11.26
  Class I 1,000.00   1,018.90   1.23   6.23
  Class R6 1,000.00   1,019.80   1.05   5.32
SGA Global Growth Fund
                
  Class A 1,000.00   1,018.15   1.38   6.98
  Class C 1,000.00   1,014.29   2.15   10.86
  Class I 1,000.00   1,019.40   1.13   5.72
  Class R6 1,000.00   1,020.56   0.90   4.56
SGA New Leaders Growth Fund
                
  Class A 1,000.00   1,018.10   1.39   7.03
  Class C 1,000.00   1,014.34   2.14   10.81
  Class I 1,000.00   1,019.35   1.14   5.77
  Class R6 1,000.00   1,020.51   0.91   4.61
Tactical Allocation Fund
                
  Class A 1,000.00   1,019.95   1.02   5.16
  Class C 1,000.00   1,016.14   1.78   9.00
  Class I 1,000.00   1,021.11   0.79   4.00
  Class R6 1,000.00   1,021.91   0.63   3.19
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
** August 4, 2021, is the date the Fund started accruing expenses. Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (58) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
5

Table of Contents
VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited)
September 30, 2021
American Depositary Receipt (“ADR”)
Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a U.S. bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.
Bloomberg U.S. Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment-grade fixed-rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Bloomberg U.S. Corporate High Yield Bond Index
The Bloomberg U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Exchange-Traded Fund (“ETF”)
An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.
Federal Reserve (the “Fed”)
The Central Bank of the U.S., the Fed is responsible for controlling money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.
Global Quality Dividend Linked Benchmark
Performance of the Global Quality Dividend Linked benchmark is that of the MSCI World High Dividend Yield Index. Performance of the Global Quality Dividend Linked benchmark prior to February 1, 2017 is that of the Russell 1000® Value Index and from February 1, 2017 to December 31, 2018, it is that of the Russell Developed Large Cap Index (net). The indexes are unmanaged and not available for direct investment.
London Interbank Offered Rate (“LIBOR”)
A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.
MSCI AC World Growth Index (net)
The MSCI AC World Growth Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of large and mid-cap securities exhibiting overall growth style characteristics across developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI AC World Index (ACWI) (net)
The MSCI AC World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI ACWI ex USA SMID Cap Index (net)
The MSCI ACWI ex USA SMID 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, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI AC World Mid-Cap Index (net)
The MSCI AC World Mid Cap Index (net) is a free float-adjusted market capitalization-weighted index that measures mid cap equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested.
MSCI EAFE® Index (net)
The MSCI EAFE® (Europe, Australasia, Far East) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI Emerging Markets Index (net)
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, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
6

Table of Contents
VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2021
MSCI USA High Dividend Yield Index (net)
The MSCI USA High Dividend Yield Index is based on the MSCI USA Index, its parent index, and includes large and mid-cap stocks. The index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The index is calculated on a total return basis with net dividends reinvested; it is unmanaged; its returns do not reflect any fees, expenses or sales charges; and it is not available for direct investment.
MSCI USA Index (net)
The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market. With 625 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in the US.
MSCI World High Dividend Yield Index (net)
The MSCI World High Dividend Yield Index (net) is based on the MSCI World Index, its parent index, and includes large- and mid-cap stocks across 23 developed markets countries. The index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI World Index (net)
The MSCI World Index (net) is a free float-adjusted market capitalization-weighted index that measures developed global market equity performance. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Real Estate Investment Trust (“REIT”)
A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties.
Russell 1000® Growth Index
The Russell 1000® Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 1000® Value Index
The Russell 1000® Value Index is a market capitalization-weighted index of value-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Growth Index
The Russell 2000® Growth Index is a market capitalization-weighted index of growth-oriented stocks of the smallest 2,000 companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Index
The Russell 2000® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Value Index
The Russell 2000® Value Index is a market capitalization-weighted index of value-oriented stocks of the smallest 2,000 companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2500TM Index
The Russell 2500TM Index is a market capitalization-weighted index of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
7

Table of Contents
VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2021
Russell 2500TM Growth Index
The Russell 2500TM Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
Russell 2500TM Value Index
The Russell 2500TM Value Index is a market capitalization-weighted index of value-oriented stocks of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
Russell Developed Large Cap Index (net)
The Russell Developed Large Cap Index (net) is a free-float market capitalization-weighted index constructed to provide a comprehensive and unbiased barometer for the large-cap segment in the developed world. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell Midcap® Growth Index
The Russell Midcap® Growth Index is a market capitalization-weighted index of medium-capitalization, growth-oriented stocks of U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell Midcap® Index
The Russell Midcap® Index is a market capitalization-weighted index of medium-capitalization stocks of U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
S&P 500® Index
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Secured Overnight Financing Rate (“SOFR”)
SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
Sponsored ADR (“American Depositary Receipt”)
An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. Sponsored ADRs generally carry the same rights normally given to stockholders, such as voting rights. ADRs must be sponsored to be able to trade on a major U.S. exchange such as the New York Stock Exchange.
Tactical Allocation Fund Linked Benchmark
The Tactical Allocation Fund Linked Benchmark consists of 45% Russell 1000® Growth Index (a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies, calculated on a total return basis with dividends reinvested), 15% MSCI ACWI ex USA SMID Cap Index (a free float-adjusted market capitalization-weighted index that measures mid- and small-cap foreign market equity performance, calculated on a total return basis with net dividends reinvested), and 40% Bloomberg U.S. Aggregate Bond Index (an index that measures the U.S. investment grade fixed rate bond market, calculated on a total return basis). The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment. Performance of the Virtus Tactical Allocation Fund Linked Benchmark between 9/7/2016 and 6/3/2019 represents an allocation consisting of 45% Russell 1000® Growth Index, 15% MSCI EAFE® Index, and 40% Bloomberg U.S. Aggregate Bond Index. Prior to 9/7/2016, the allocation consisted of 50% S&P 500® Index and 50% Bloomberg U.S. Aggregate Bond Index.
Yield Curve
A yield curve is a line on a graph plotting the interest rates, at a set point in time, of bonds having equal credit quality but different maturity dates.
8

Table of Contents
  Ticker Symbols:
  Class A: PSTAX
  Class C: SSTFX
  Class I: PLXGX
  Class R6: VCGRX
KAR Capital Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital growth. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 21.98%, Class C shares at NAV returned 21.00%, Class I shares at NAV returned 22.23%, and Class R6 shares at NAV returned 22.55%. For the same period, the Russell 1000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 27.32%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell 1000® Growth Index for the fiscal year ended September 30, 2021. Poor stock selection in consumer discretionary and communication services detracted from performance. Strong stock selection in information technology, as well as strong stock selection and an underweight in health care, contributed positively to performance.
The biggest contributors to performance during the period were Bill.com, NVIDIA, Paycom Software, Facebook, and MercadoLibre.
The biggest detractors from performance during the period were Alibaba, Tencent, Duck Creek Technologies, McCormick & Company, and Las Vegas Sands.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 42%
Consumer Discretionary 21
Communication Services 13
Industrials 7
Health Care 6
Financials 5
Consumer Staples 4
Other (includes short-term investment) 2
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
9

Table of Contents
KAR Capital Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   21.98 % 21.93 % 18.76 % — % —
Class A shares at POP3,4   15.28 20.56 18.09 — —
Class C shares at NAV2 and with CDSC4   21.00  20.98  17.86  —  —
Class I shares at NAV2   22.23  22.07  18.99  —  —
Class R6 shares at NAV2   22.55  —  —  19.45  1/30/18
Russell 1000® Growth Index   27.32 22.84 19.68 20.63 5 —
Fund Expense Ratios6: Class A shares: 1.23%; Class C shares: 2.00%; Class I shares: 1.01%; Class R6 shares: Gross 0.94%, Net 0.73%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
10

Table of Contents
  Ticker Symbols:
  Class A: PDIAX
  Class C: PGICX
  Class I: PXIIX
  Class R6: VECRX
KAR Equity Income Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has investment objectives of capital appreciation and current income. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 20.23%, Class C shares at NAV returned 19.31%, Class I shares at NAV returned 20.49%, and Class R6 shares at NAV returned 20.55%. For the same period, the MSCI USA High Dividend Yield Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 20.32%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed
large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund performed in line with the MSCI USA High Dividend Yield Index (net) for the fiscal year ended September 30, 2021. Strong stock selection and an overweight in materials, as well as strong stock selection in information technology, contributed positively to performance. Poor stock selection and an underweight in consumer discretionary, as well as an underweight in energy, detracted from performance.
The biggest contributors to performance during the period were PNC Financial Services Group, Bank of Hawaii, Eastman Chemical, Cisco Systems, and Omnicom Group.
The biggest detractors from performance during the period were Kimberly-Clark, Verizon Communications, Clorox, GlaxoSmithKline, and Merck.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Financials 16%
Consumer Staples 13
Industrials 13
Information Technology 11
Health Care 11
Utilities 9
Materials 8
Other (includes short-term investment and securities lending collateral) 19
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
11

Table of Contents
KAR Equity Income Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   20.23 % 12.95 % 13.85 % — % —
Class A shares at POP3,4   13.62 11.68 13.20 — —
Class C shares at NAV2 and with CDSC4   19.31  12.09  12.98  —  —
Class I shares at NAV2   20.49  13.22  14.12  —  —
Class R6 shares at NAV2   20.55  —  —  9.11  1/30/18
MSCI USA High Dividend Yield Index (net)   20.32 9.54 12.20 6.21 5 —
Fund Expense Ratios6: Class A shares: Gross 1.35%, Net 1.20%; Class C shares: Gross 2.11%, Net 1.95%; Class I shares: Gross 1.10%, Net 0.95%; Class R6 shares: Gross 1.03%; Net 0.91%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
12

Table of Contents
  Ticker Symbols:
  Class A: PPTAX
  Class C: PPTCX
  Class I: PIPTX
  Class R6: VGQRX
KAR Global Quality Dividend Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of total return, consisting of both capital appreciation and current income. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 18.42%, Class C shares at NAV returned 17.52%, Class I shares at NAV returned 18.78%, and Class R6 shares at NAV returned 19.15%. The MSCI World High Dividend Yield Index (net), which serves as the Fund’s broad-based index, returned 20.84% and the Global Quality Dividend Linked Benchmark, the Fund’s style-specific Index, returned 20.84%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the MSCI World High Dividend Yield Index (net) for the fiscal year ended September 30, 2021. Poor stock selection and an underweight in consumer discretionary, as well as poor stock selection in industrials, detracted from performance. Strong stock selection and an underweight in health care, as well as an underweight in consumer staples, contributed positively to performance.
The biggest contributors to performance during the period were Royal Bank of Canada, PNC Financial Services Group, BCE, Patterson Companies, and Cisco Systems.
The biggest detractors from performance during the period were Verizon Communications, Unilever, Terna, GlaxoSmithKline, and Kimberly-Clark.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Foreign Investing: Investing in foreign securities subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Financials 21%
Communication Services 19
Industrials 12
Utilities 10
Consumer Staples 10
Health Care 9
Information Technology 7
Other (includes short-term investment) 12
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
13

Table of Contents
KAR Global Quality Dividend Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   18.42 % 6.11 % 9.57 % — % —
Class A shares at POP3,4   11.91 4.91 8.95 — —
Class C shares at NAV2 and with CDSC4   17.52  5.31  8.75  —  —
Class I shares at NAV2   18.78  6.37  9.85  —  —
Class R6 shares at NAV2   19.15  —  —  4.53  8/1/19
MSCI World High Dividend Yield Index (net)   20.84 7.73 8.83 8.17 5 —
Global Quality Dividend Linked Benchmark   20.84 9.30 12.67 8.17 5 —
Fund Expense Ratios6: Class A shares: Gross 1.61%, Net 1.35%; Class C shares: Gross 2.35%, Net 2.10%; Class I shares: Gross 1.40%, Net 1.10%; Class R6 shares: Gross 1.27%, Net 0.78%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
14

Table of Contents
  Ticker Symbols:
  Class A: VMACX
  Class C: VMCCX
  Class I: VIMCX
  Class R6: VRMCX
KAR Mid-Cap Core Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 36.25%, Class C shares at NAV returned 35.23%, Class I shares at NAV returned 36.59%, and Class R6 shares at NAV returned 36.67%. For the same period, the Russell Midcap® Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 38.11%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell Midcap Index for the fiscal year ended September 30, 2021. Poor stock selection in financials and communication services detracted from performance. Strong stock selection in information technology and an underweight in utilities contributed positively to performance.
The biggest contributors to performance during the period were Brooks Automation, Zebra Technologies, West Pharmaceutical Services, Globus Medical, and SiteOne Landscape Supply.
The biggest detractors from performance during the period were Latham Group, Autohome, W. R. Berkley, Aspen Technology, and Lamb Weston.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Industrials 33%
Health Care 18
Information Technology 18
Financials 13
Consumer Discretionary 10
Consumer Staples 3
Real Estate 2
Short-Term Investment 3
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
15

Table of Contents
KAR Mid-Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   36.25 % 18.29 % 17.07 % — % —
Class A shares at POP3,4   28.76 16.96 16.41 — —
Class C shares at NAV2 and with CDSC4   35.23  17.40  16.20  —  —
Class I shares at NAV2   36.59  18.58  17.37  —  —
Class R6 shares at NAV2   36.67  —  —  16.02  1/30/18
Russell Midcap® Index   38.11 14.39 15.52 12.55 5 —
Fund Expense Ratios6: Class A shares: Gross 1.35%, Net 1.21%; Class C shares: Gross 2.10%, Net 1.96%; Class I shares: Gross 1.10%, Net 0.96%; Class R6 shares: Gross 1.01%, Net 0.88%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
16

Table of Contents
  Ticker Symbols:
  Class A: PHSKX
  Class C: PSKCX
  Class I: PICMX
  Class R6: VRMGX
KAR Mid-Cap Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 23.07%, Class C shares at NAV returned 22.13%, Class I shares at NAV returned 23.35%, and Class R6 shares at NAV returned 23.57%. For the same period, the Russell Midcap® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 30.45%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell Midcap® Growth Index for the fiscal year ended September 30, 2021. Poor stock selection in health care, as well as poor stock selection and an overweight in consumer discretionary, detracted from performance. Strong stock selection, as well as overweights in information technology and financials, contributed positively to performance.
The biggest contributors to performance during the period were Bill.com, MercardoLibre, Gartner, SiteOne Landscape Supply, and Paycom Software.
The biggest detractors from performance during the period were Teladoc Health, New Oriental Education & Technology Group, Vital Farms, Autohome, and Gaotu Techedu.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 39%
Consumer Discretionary 19
Health Care 11
Industrials 9
Consumer Staples 9
Financials 8
Communication Services 2
Short-Term Investment 3
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
17

Table of Contents
KAR Mid-Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   23.07 % 27.61 % 20.12 % — % —
Class A shares at POP3,4   16.30 26.17 19.44 — —
Class C shares at NAV2 and with CDSC4   22.13  26.65  19.22  —  —
Class I shares at NAV2   23.35  27.90  20.41  —  —
Class R6 shares at NAV2   23.57  —  —  27.23  1/30/18
Russell Midcap® Growth Index   30.45 19.27 17.54 17.60 5 —
Fund Expense Ratios6: Class A shares: 1.28%; Class C shares: 2.04%; Class I shares: 1.05%; Class R6 shares: Gross 0.95%, Net 0.85%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
18

Table of Contents
  Ticker Symbols:
  Class A: PKSAX
  Class C: PKSCX
  Class I: PKSFX
  Class R6: VSCRX
KAR Small-Cap Core Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation, with dividend income a secondary consideration. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 28.68%, Class C shares at NAV returned 27.74%, Class I shares at NAV returned 29.03%, and Class R6 shares at NAV returned 29.14%. For the same period, the Russell 2000® Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 47.68%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell 2000® Index for the fiscal year ended September 30, 2021. Poor stock selection in communication services and information technology detracted from performance. Strong stock selection, an underweight in health care, and an underweight in utilities contributed positively to performance.
The biggest contributors to performance during the period were First Hawaiian, Teledyne Technologies, EMCOR Group, Moelis, and Manhattan Associates.
The biggest detractors from performance during the period were Autohome, Aspen Technology, Jack
Henry & Associates, Clearwater Analytics, and Dril-Quip.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Industrials 37%
Financials 20
Information Technology 16
Communication Services 8
Health Care 6
Consumer Discretionary 5
Consumer Staples 2
Other (includes short-term investment) 6
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
19

Table of Contents
KAR Small-Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   28.68 % 21.27 % 17.10 % — % —
Class A shares at POP3,4   21.60 19.91 16.44 — —
Class C shares at NAV2 and with CDSC4   27.74  20.38  16.24  —  —
Class I shares at NAV2   29.03  21.60  17.40  —  —
Class R6 shares at NAV2   29.14  21.70  —  17.49  11/12/14
Russell 2000® Index   47.68 13.45 14.63 10.89 5 —
Fund Expense Ratios6: Class A shares: 1.28%; Class C shares: 2.01%; Class I shares: 1.00%; Class R6 shares: 0.93%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
20

Table of Contents
  Ticker Symbols:
  Class A: PSGAX
  Class C: PSGCX
  Class I: PXSGX
  Class R6: VRSGX
KAR Small-Cap Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 20.46%, Class C shares at NAV returned 19.60%, Class I shares at NAV returned 20.77%, and Class R6 shares at NAV returned 20.88%. For the same period, the Russell 2000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 33.27%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time
in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell 2000® Growth Index for the fiscal year ended September 30, 2021. Poor stock selection in communication services, as well as poor stock selection and an underweight in industrials, detracted from performance. An underweight in health care and an overweight in information technology contributed positively to performance.
The biggest contributors to performance during the period were Bill.com, Fox Factory, Morningstar, Blackline, and Avalara.
The biggest detractors from performance during the period were Autohome, Ollie’s Bargain Outlet, MediaAlpha, Grocery Outlet, and Duck Creek Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to
change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Foreign Investing: Investing in foreign securities subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 32%
Financials 22
Communication Services 15
Consumer Discretionary 13
Industrials 7
Health Care 4
Consumer Staples 3
Short-Term Investment 4
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
21

Table of Contents
KAR Small-Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   20.46 % 26.21 % 21.37 % — % —
Class A shares at POP3,4   13.83 24.79 20.68 — —
Class C shares at NAV2 and with CDSC4   19.60  25.28  20.47  —  —
Class I shares at NAV2   20.77  26.54  21.68  —  —
Class R6 shares at NAV2   20.88  —  —  22.75  1/30/18
Russell 2000® Growth Index   33.27 15.34 15.74 12.58 5 —
Fund Expense Ratios6: Class A shares: 1.36%; Class C shares: 2.08%; Class I shares:1.10%; Class R6 shares: 1.00%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
22

Table of Contents
  Ticker Symbols:
  Class A: PQSAX
  Class C: PQSCX
  Class I: PXQSX
  Class R6: VQSRX
KAR Small-Cap Value Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 37.45%, Class C shares at NAV returned 36.44%, Class I shares at NAV returned 37.83%, and Class R6 shares at NAV returned 37.85%. For the same period, the Russell 2000® Value Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 63.92%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell 2000® Value Index for the fiscal year ended September 30, 2021. Poor stock selection in consumer discretionary and industrials detracted from performance. An underweight in utilities and strong stock selection in consumer staples contributed positively to performance.
The biggest contributors to performance during the period were Brooks Automation, National Beverage, SiteOne Landscape Supply, RBC Bearings, and The Cheesecake Factory.
The biggest detractors from performance were Latham Group, Leslie’s, Jack Henry & Associates, Anika Therapeutics, and UniFirst.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Industrials 27%
Consumer Discretionary 22
Financials 17
Information Technology 14
Consumer Staples 6
Materials 5
Real Estate 4
Other (includes short-term investment) 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
23

Table of Contents
KAR Small-Cap Value Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   37.45 % 14.41 % 13.94 % — % —
Class A shares at POP3,4   29.89 13.12 13.29 — —
Class C shares at NAV2 and with CDSC4   36.44  13.58  13.09  —  —
Class I shares at NAV2   37.83  14.70  14.23  —  —
Class R6 shares at NAV2   37.85  —  —  16.12  11/3/16
Russell 2000® Value Index   63.92 11.03 13.22 12.59 5 —
Fund Expense Ratios6: Class A shares: 1.23%; Class C shares: 1.98%; Class I shares: 0.99%; Class R6 shares: 0.89%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares, Class C shares, and Class I shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
24

Table of Contents
  Ticker Symbols:
  Class A: VKSAX
  Class C: VKSCX
  Class I: VKSIX
  Class R6: VKSRX
KAR Small-Mid Cap Core Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation, with dividend income a secondary consideration. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 29.38%, Class C shares at NAV returned 28.39%, Class I shares at NAV returned 29.72%, and Class R6 shares at NAV returned 29.82%. For the same period, the Russell 2500™ Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 45.03%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance during its fiscal year?
The Fund delivered positive performance but underperformed the Russell 2500TM Index for the fiscal year ended September 30, 2021. Poor stock selection in consumer discretionary and materials detracted from performance. Strong stock selection, an underweight in health care, and an underweight in utilities contributed positively to performance.
The biggest contributors to performance during the period were Zebra Technologies, Charles River Laboratories, MSCI, SiteOne Landscape Supply, and Teradyne.
The biggest detractors from performance during the period were Duck Creek Technologies, Bright
Horizons Family Solutions, Chemed, Jack Henry & Associates, and Rollins.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 26%
Industrials 20
Consumer Discretionary 17
Health Care 14
Financials 14
Materials 4
Short-Term Investment 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
25

Table of Contents
KAR Small-Mid Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   29.38 % 19.56 % 3/7/18
Class A shares at POP3,4   22.27 17.68 3/7/18
Class C shares at NAV2 and with CDSC4   28.39  18.68  3/7/18
Class I shares at NAV2   29.72  19.87  3/7/18
Class R6 shares at NAV2   29.82  19.97  3/7/18
Russell 2500™ Index   45.03 12.83 5 —
Fund Expense Ratios6: Class A shares: Gross 1.40%, Net 1.31%; Class C shares: Gross 2.08%, Net 2.06%; Class I shares: Gross 1.10%, Net 1.06%; Class R6 shares: Gross 1.00%, Net 0.98%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on March 7, 2018 (inception date of the Fund), for Class A shares, Class C shares, Class I shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
26

Table of Contents
  Ticker Symbols:
  Class A: VAKSX
  Class C: VCKSX
  Class I: VIKSX
  Class R6: VRKSX
KAR Small-Mid Cap Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal period December 8, 2020 (inception date) through September 30, 2021, the Fund’s Class A shares at NAV returned 7.00%*, Class C shares at NAV returned 6.30%*, Class I shares at NAV returned 7.20%*, and Class R6 shares at NAV returned 7.30%*. For the same period, the Russell 2500™ Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 9.46%*.
   * Returns less 1 year are not annualized.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance from its inception on December 8, 2020 through September 30, 2021?
The Fund delivered positive performance but underperformed the Russell 2500TM Growth Index for the period from the Fund’s inception on December 8, 2020, through September 30, 2021. Poor stock selection in information technology and financials detracted from performance. Strong stock selection and an underweight in health care, as well as an underweight in materials, contributed positively to performance.
The biggest contributors to performance during the period were Bentley Systems, West Pharmaceutical Services, SiteOne Landscape Supply, Old Dominion Freight Line, and Copart.
The biggest detractors from performance during the period were MediaAlpha, MarketAxess, Ollie’s Bargain Outlet, nCino, and Fair Isaac.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 31%
Industrials 22
Health Care 22
Financials 10
Consumer Discretionary 9
Communication Services 4
Consumer Staples 2
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
27

Table of Contents
KAR Small-Mid Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    Since
inception 		Inception
date
Class A shares at NAV2   7.00 % 12/8/20
Class A shares at POP3,4   1.12 12/8/20
Class C shares at NAV2   6.30  12/8/20
Class C shares with CDSC4   5.30 12/8/20
Class I shares at NAV2   7.20  12/8/20
Class R6 shares at NAV2   7.30  12/8/20
Russell 2500™ Growth Index   9.46  5 —
Fund Expense Ratios6: Class A shares: Gross 1.40%, Net 1.30%; Class C shares: Gross 2.09%, Net 2.05%; Class I shares: Gross 1.14%, Net 1.05%; Class R6 shares: Gross 1.05%, Net 0.99%.      
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on December 8, 2020 (inception date of the Fund), for Class A shares, Class C shares, Class I shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
28

Table of Contents
  Ticker Symbols:
  Class A: VKSDX
  Class C: VKSEX
  Class I: VKSFX
  Class R6: VKSGX
KAR Small-Mid Cap Value Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal period August 3, 2021 (inception date) through September 30, 2021, the Fund’s Class A shares at NAV returned -3.60%*, Class C shares at NAV returned -3.70%*, Class I shares at NAV returned -3.60%*, and Class R6 shares at NAV returned -3.50%*. For the same period, the Russell 2500™ Value Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -0.75%*.
   * Returns less 1 year are not annualized.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
What factors affected the Fund’s performance from its inception on August 3, 2021 through September 30, 2021?
The Fund underperformed the Russell 2500TM Value Index from its inception on August 3, 2021, through September 30, 2021. Poor stock selection and overweight positions in industrials and information technology detracted from performance. Strong stock selection in health care, as well as strong stock selection and an underweight in real estate, contributed positively to performance.
The biggest contributors to performance during the period were CorVel, National Beverage, Lamar Advertising, American Software, and Thor Industries.
The biggest detractors from performance during the period were Scotts Miracle-Gro, Teradyne, Terminix
Global Holdings, Toro Company, and Zebra Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Industrials 25%
Information Technology 23
Consumer Discretionary 15
Financials 14
Real Estate 7
Materials 6
Consumer Staples 5
Other (includes short-term investment) 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
29

Table of Contents
KAR Small-Mid Cap Value Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    Since
inception 		Inception
date
Class A shares at NAV2   -3.60 % 8/3/21
Class A shares at POP3,4   -8.90 8/3/21
Class C shares at NAV2   -3.70  8/3/21
Class C shares with CDSC4   -4.66 8/3/21
Class I shares at NAV2   -3.60  8/3/21
Class R6 shares at NAV2   -3.50  8/3/21
Russell 2500™ Value Index   -0.75 5 —
Fund Expense Ratios6: Class A shares: Gross 1.28%, Net 1.17%; Class C shares: Gross 2.03%, Net 1.92%; Class I shares: Gross 1.05%, Net 0.92%; Class R6 shares: Gross 0.95%; Net 0.82%.      
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on August 3, 2021 (inception date of the Fund), for Class A shares, Class C shares, Class I shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of the Fund.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective August 2, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2023. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
30

Table of Contents
  Ticker Symbols:
  Class A: VAEGX
  Class C: VCEGX
  Class I: VIEGX
  Class R6: VESRX
SGA Emerging Markets Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is non-diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 9.84%†, Class C shares at NAV returned 9.08%, Class I shares at NAV returned 10.24%, and Class R6 shares at NAV returned 10.38%. For the same period, the MSCI Emerging Markets Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 18.20%.
   † See footnote 3 on page 33.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Emerging market performance varied significantly over the period. At the outset of the period, markets rebounded strongly on the back of positive COVID-19 vaccine developments and rising optimism around global economic growth. The initial rally was interrupted by rising concerns over developments in China, where the government’s growing emphasis on ”Common Prosperity” and a more aggressive and ideological regulatory approach weighed heavily on companies across a variety of sectors. Continued COVID-19-related challenges resulted in disruptions to economic activity as well as more persistent inflationary pressures, which added to the weakness.
Emerging markets in Europe performed best over the fiscal year, driven by strength in Russia, which returned 59.4%. Emerging markets in Asia performed worst, driven by weakness in China, which declined -7.3%. The materials (46.1%), energy (44.5%), and information technology (IT) (37.2%)
sectors performed best over the 12-month period, driven by a strong rebound in energy and commodity prices, as well as strength in semiconductors and IT services. The consumer discretionary sector was the worst performer, with a decline of 16.9%, followed by real estate, down 9.4%, and communication services, up 1.9%. Weakness in Chinese internet, media, e-commerce, education, and property development stocks weighed heavily on these sectors.
What factors affected the Fund’s performance during its fiscal year?
The Fund trailed the MSCI Emerging Markets Index (net) for the 12 months ended September 30, 2021. Sector allocations, which are a by-product of our bottom-up stock-picking process, detracted significantly from relative returns. These detractions included the Fund’s larger exposure to the underperforming consumer discretionary sector, lower weights in the information technology and materials sectors, and a lack of exposure to the strongly performing energy sector. Stock selection contributed positively, with selection in health care strongest, followed by selection in industrials and communication services. However, stock selection in the financials, consumer discretionary, and real estate sectors detracted from performance.
From a country perspective, both selection and allocation detracted from relative returns. A lack of exposure to companies in Taiwan and Russia, as well as less exposure to Korean companies, detracted most given the strong performance of companies in these markets. Stock selection in China detracted as well, driven primarily by the Fund’s exposure to private education and tutoring companies that were affected by Chinese regulatory actions. These holdings offset strong stock selection in Argentina.
The top five contributors to Fund performance for the period were Latin American e-commerce leader MercadoLibre, Indian financial services company HDFC Bank, Indian IT services company Infosys, Chinese biologics technology platform WuXi Biologics, and U.S. railroad Kansas City Southern. The five largest detractors from Fund performance were Chinese private education and tutoring companies TAL Education and New Oriental Education, Chinese e-commerce leader Alibaba, Chinese insurance company Ping An Insurance, and
Chinese property management company Country Garden Services.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Geographic Concentration: A fund that focuses its investments in a particular geographic location will be sensitive to financial, economic, political, and other events negatively affecting of that location.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
31

Table of Contents
SGA Emerging Markets Growth Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Consumer Staples 29%
Financials 24
Consumer Discretionary 23
Health Care 6
Information Technology 6
Communication Services 5
Real Estate 3
Other (includes short-term investment) 4
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
32

Table of Contents
SGA Emerging Markets Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   9.84 % 3 12.39 % 6/13/19
Class A shares at POP4,5   3.80 9.66 6/13/19
Class C shares at NAV2 and with CDSC5   9.08 11.56 6/13/19
Class I shares at NAV2   10.24 12.69 6/13/19
Class R6 shares at NAV2   10.38 12.87  6/13/19
MSCI Emerging Markets Index (net)   18.20 11.90 6 —
Fund Expense Ratios7: Class A shares: Gross 3.99%, Net 1.49%; Class C shares: Gross 4.71%, Net 2.24%; Class I shares: Gross 3.58%, Net 1.24%; Class R6 shares: Gross 3.73%, Net 1.06%.        
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on June 13, 2019 (inception date of the Fund), for Class A shares, Class C shares, Class I shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
4 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
5 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
6 The since inception index return is from the Fund’s inception date.
7 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
33

Table of Contents
  Ticker Symbols:
  Class A: SGAAX
  Class C: SGACX
  Class I: SGAPX
  Class R6: SGARX
SGA Global Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 19.49%, Class C shares at NAV returned 18.62%, Class I shares at NAV returned 19.78%, and Class R6 shares at NAV returned 20.07%. For the same period, the MSCI AC World Index (net), returned 27.44%, and the MSCI AC World Growth Index (net), returned 23.83%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Global equity markets rebounded strongly following the sell-off caused by the COVID-19 pandemic, generating strong returns for the 12-month period. Amid massive monetary accommodation and fiscal stimulus across the globe, the emergence of new vaccines set the stage for a reopening of businesses and economies. More economically sensitive companies, which previously had been penalized the most, bounced back strongly. U.S. and non-U.S. developed markets outperformed emerging markets for the fiscal year.
Investors anticipated a pickup in economic activity given the quick ramp-up in vaccinations across developed markets, but many emerging markets countries continued to face severe difficulties with the emergence of the highly transmissible Delta variant. The energy and financials sectors performed best in this environment. Information technology and communication services stocks continued to benefit from a rise in cloud computing demand and online
shopping, as consumers became accustomed to the ease and safety of shopping from home.
More defensive sectors such as consumer staples and utilities, which had held up better in the pandemic-induced downturn, lagged the most during the rebound. High business quality was not rewarded during the period, while small-cap, value, low return on equity, high beta, and no-earnings stocks performed the best.
What factors affected the Fund’s performance during its fiscal year?
The Fund generated a strong absolute return for the period, but underperformed the MSCI AC World Index given the market’s strong preference for lesser quality, more economically sensitive companies. Many of these stocks had been penalized severely at the beginning of the pandemic, but rebounded strongly once investors sensed an improving economic backdrop.
Stock selection and sector allocations detracted from results, with selection in the consumer discretionary sector having the largest impact and accounting for much of the Fund’s underperformance. Positions in Chinese stocks Alibaba and New Oriental Education accounted for most of the weakness. Both companies faced severe regulatory scrutiny after the Chinese government took steps that significantly reduced the profit potential of companies in the private education market where New Oriental operated. Stock selection in the information technology and financials sectors also detracted meaningfully. In contrast, stock selection in the industrials and health care sectors contributed positively to relative returns.
A lack of exposure to the energy sector, an underweight in the financials sector, and an overweight in the health care sector detracted from relative returns for the period. In contrast, the Fund’s lack of exposure to the utilities sector and an overweight in the information technology sector benefited relative returns. From a regional perspective, results were negatively impacted by emerging markets stock selection, largely due to Chinese holdings. Selection in the U.S. also detracted, due primarily to positions in FleetCor, Abbott, and Visa, while selection in the non-U.S. developed markets contributed positively due to positions in IHS Markit, Recruit, and Fast Retailing.
The top five contributors to Fund performance for the period were Indian bank HDFC Bank, internet search leader Alphabet, U.S. railroad Kansas City Southern, information provider IHS Markit, and Indian consulting firm Infosys. The Fund’s largest detractors from performance were Chinese private education company New Oriental Education, Chinese e-commerce leader Alibaba, Chinese gaming company Tencent, U.S. media and entertainment company Walt Disney, and Brazilian financial company XP.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Geographic Concentration: A fund that focuses its investments in a particular geographic location will be sensitive to financial, economic, political, and other events negatively affecting of that location.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
34

Table of Contents
SGA Global Growth Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 32%
Health Care 18
Consumer Discretionary 13
Communication Services 9
Financials 8
Consumer Staples 8
Industrials 5
Other (includes short-term investment) 7
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
35

Table of Contents
SGA Global Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   19.49 % 17.27 % — % 14.08 % 10/4/13
Class A shares at POP3,4   12.92 15.95 — 13.27 10/4/13
Class C shares at NAV2 and with CDSC4   18.62  16.39  —  13.22  10/4/13
Class I shares at NAV2   19.78  17.41  —  14.18  10/4/13
Class R6 shares at NAV2   20.07  17.77  15.49  —  —
MSCI AC World Index (net)   27.44 13.20 11.90 10.06 5 —
MSCI AC World Growth Index (net)   23.83 17.76 14.73 13.46 5 —
Fund Expense Ratios6: Class A shares: 1.37%; Class C shares: Gross 2.15%, Net 2.14%; Class I shares: Gross 1.21%, Net 1.14%; Class R6 shares: Gross 1.09%, Net 0.91%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class R6 shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class A shares, Class C shares and Class I shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
36

Table of Contents
  Ticker Symbols:
  Class A: VNLAX
  Class C: VNLCX
  Class I: VNLIX
  Class R6: VNLRX
SGA New Leaders Growth Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is non-diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal period November 17, 2020 (inception date) through September 30, 2021, the Fund’s Class A shares at NAV returned 6.50%*, Class C shares at NAV returned 5.80%*, Class I shares at NAV returned 6.70%*, and Class R6 shares at NAV returned 6.90%*. For the same period, the MSCI AC World Mid Cap Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 19.21%*.
   * Returns less 1 year are not annualized.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Global equity markets rebounded strongly following the sell-off caused by the COVID-19 pandemic, generating strong returns for the fiscal period. Amid massive monetary accommodation and fiscal stimulus across the globe, the emergence of new vaccines set the stage for a reopening of businesses and economies. More economically sensitive companies, which previously had been penalized the most by the pandemic, bounced back strongly.
U.S. markets and non-U.S. developed markets outperformed emerging markets. Investors anticipated a pickup in economic activity given the quick ramp-up in vaccinations across developed markets, while many emerging markets countries continued to face severe difficulties with the emergence of the highly transmissible Delta variant. Energy (55.5%) and financials (27.4%) stocks performed best in this environment. More defensive
sectors such as consumer staples (0.9%) and utilities (3.1%), which had held up better in the pandemic, lagged the most during the rebound.
What factors affected the Fund’s performance from its inception on November 17, 2020 through September 30, 2021?
The Fund trailed the MSCI AC World Mid Cap Index (net) for the period from its inception on November 17, 2020, through September 30, 2021. The Fund’s relative shortfall was driven primarily by stock selection, particularly in the consumer discretionary, information technology, and real estate sectors, which offset positive stock selection in the health care, industrials, and communication services sectors.
Sector allocations, which are a by-product of our bottom-up stock-picking process, also detracted from relative returns, driven primarily by an overweight to the underperforming consumer staples sector and a lack of exposure to the top-performing energy sector. A lack of exposure to the utilities sector, an overweight in the information technology (IT) sector, and an underweight in the industrials sector contributed most positively from a sector allocation perspective.
From a country perspective, the Fund’s overweight to Chinese stocks and stock selection within China detracted most significantly from relative returns. The Fund’s exposure to two private education companies that were affected by Chinese regulatory actions negatively impacted returns. In contrast, stock selection in Argentina, the Netherlands, and South Korea contributed the most to relative performance.
The five largest contributors to Fund performance were IT services company EPAM, U.S. railroad Kansas City Southern, analytics and index provider MSCI, Latin American e-commerce leader MercadoLibre, and U.S.-based First Republic Bank. The five largest detractors from Fund performance were Chinese private education and tutoring companies TAL Education and New Oriental Education, unified communication services provider RingCentral, Chinese property management company Country Garden Services, and Chinese medical device maker Shandong Weigao.
The preceding information is the opinion of portfolio management only through the end of the period
stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Geographic Concentration: A fund that focuses its investments in a particular geographic location will be sensitive to financial, economic, political, and other events negatively affecting of that location.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Information Technology 26%
Health Care 25
Consumer Staples 13
Consumer Discretionary 11
Communication Services 10
Financials 9
Real Estate 3
Other (includes short-term investment) 3
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
37

Table of Contents
SGA New Leaders Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    Since
inception 		Inception
date
Class A shares at NAV2   6.50 % 11/17/20
Class A shares at POP3,4   0.64 11/17/20
Class C shares at NAV2   5.80  11/17/20
Class C shares with CDSC4   4.80 11/17/20
Class I shares at NAV2   6.70  11/17/20
Class R6 shares at NAV2   6.90  11/17/20
MSCI AC World Mid Cap Index (net)   19.21 5 —
Fund Expense Ratios6: Class A shares: Gross 1.45%, Net 1.39%; Class C shares: Gross 2.16%, Net 2.14%; Class I shares: Gross 1.24%, Net 1.14%; Class R6 shares: Gross 1.13%, Net 0.91%.      
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on November 17, 2020 (inception date of the Fund), for Class A shares, Class C shares, Class I shares, and Class R6 shares including any applicable sales charges or fees. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
38

Table of Contents
  Ticker Symbols:
  Class A: NAINX
  Class C: POICX
  Class I: VTAIX
  Class R6: VTARX
Tactical Allocation Fund Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick
Investment Management, LLC
(Domestic and International Equity
Portfolio) and Newfleet Asset
Management, LLC
(Fixed Income Portfolio)
■ The Fund is diversified and has investment objectives of capital appreciation and income. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2021, the Fund’s Class A shares at NAV returned 16.69%, Class C shares at NAV returned 15.82%, and Class I shares at NAV returned 16.88%, and Class R6 shares at NAV from October 20, 2020 (inception date) through September 30, 2021, returned 13.23%*. For the fiscal year ended September 30, 2021, the Bloomberg U.S.
Aggregate Bond Index; a broad-based fixed income index, returned -0.90%, the MSCI ACWI ex USA SMID Cap Index (net); a broad-based International Index, returned 28.94%; and the Russell 1000® Growth Index; a broad-based US equity index, returned 27.32%. The Tactical Allocation Fund Linked Benchmark, the Fund’s style-specific benchmark, returned 15.76%.
   * Returns less than 1 year are not annualized.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2021?
Domestic & International Equities
For the 12-month period, markets delivered positive performance across the board, slowing only at the end of September 2021 over mounting worries concerning the debt ceiling, infrastructure investments, increased taxes, supply-chain bottlenecks, and the reappointment of the Federal
Reserve (the Fed) chairman. The S&P 500® Index notched gains and new highs throughout the period, primarily driven by strong earnings fueled by the economic reopening and boosted by federal stimulus, accommodative monetary policy, and COVID-19 vaccines. In fact, improving corporate profitability was the key catalyst behind significant equity returns since the recession that was triggered by COVID-19.
Small-company stocks, as measured by the Russell 2000® Index, significantly outperformed large-company stocks. Value stocks, for the first time in many years, outpaced growth stocks, as measured by the Russell 1000® Value and Russell 1000® Growth indexes. In an environment of rapidly accelerating economic growth, low-quality stocks tend to outperform high-quality businesses as investors seek out companies with more operating and financial leverage. Low-quality stocks also tend to outperform at the bottom of a recession, when economic activity is about to rapidly accelerate as the economy begins to recover. International and emerging markets notched positive performance but lagged the returns of U.S. stocks, and were hit particularly hard in the third quarter of 2021 as China imposed additional regulatory actions on many successful Chinese public companies.
For the fiscal year ended September 30, 2021, the S&P 500® Index returned 30.00%, while small-capitalization stocks, as represented by the Russell 2000® Index, soared to 47.68%. International developed markets, as measured by the MSCI EAFE Index (net), returned 25.73%, while the MSCI Emerging Markets Index (net) was up 18.20% in the period. Value stocks outperformed growth stocks over the fiscal year, with the Russell 1000® Value Index up 35.01% and the Russell 1000® Growth Index delivering a gain of 27.32%.
Fixed Income
The 12-month period included a variety of market conditions, but most front and center was the continued impact of COVID-19 on the globe. Monetary and fiscal policy response continued to evolve in order to support economic activity and allow market disruptions to heal. In addition, the final quarter of 2020 was marked by vaccine development and distribution, the U.S. presidential election, and a trade deal between the U.K. and the EU.
The first three quarters of 2021 brought a new U.S. administration, more fiscal stimulus, and bursts of optimism as the world continued its recovery from the COVID-19-related economic lockdowns that dominated early 2020. The virus continued to pose a global challenge to health care systems and policymakers, however, as they sought the correct mix of protective measures to contain it. Though variants of the virus emerged during the period, vaccines proved effective against them. Global vaccine distribution and the resulting growth in protected populations continued to seem to bring the world closer to containing the virus.
Since the economic recovery remained on track, the Fed began removing some of its monetary support, announcing the completion of the wind-down of its secondary market corporate credit facility during the third quarter of 2021. The Fed remained committed to its communication strategy during the fiscal year, and indicated no desire to tighten financial conditions.
During the 12-month period, the fixed income markets experienced a significant rebound from their March 2020 lows, with spread sectors (non-governmental fixed income investments) outperforming U.S. Treasuries. Those sectors that experienced the greatest degree of underperformance during the first quarter of 2020 led the way during the fiscal year recovery.
During the fiscal year, the Fed left its target interest rate unchanged at a range of 0-0.25%, the rate that was set in late March of 2020 in response to the pandemic.
Additionally, over the past twelve months, the U.S Treasury yield curve steepened, shifting broadly higher, especially for maturities of 7-10 years.
What factors affected the Fund’s performance during its fiscal year?
Domestic Equities
The Fund’s U.S. equity portfolio delivered positive performance but underperformed its benchmark, the Russell 1000® Growth Index, for the fiscal year ended September 30, 2021. Poor stock selection and an overweight in consumer discretionary, and poor stock selection in communication services, detracted from performance. Strong stock selection in information technology, as well as strong stock
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
39

Table of Contents
Tactical Allocation Fund (Continued)
selection and an underweight in health care, contributed positively to performance.
The biggest contributors to performance during the period were Bill.com, NVIDIA, Paycom Software, Facebook, and MercadoLibre.
The biggest detractors from performance during the period were Alibaba, Tencent, Duck Creek Technologies, McCormick & Company, and Las Vegas Sands.
International Equities
The Fund’s international equity portfolio outperformed its benchmark, the MSCI AC World Ex USA Small Mid Cap Index (net) for the fiscal year ended September 30, 2021. Strong stock selection and an overweight in industrials, as well as strong stock selection in financials, contributed positively to performance. Poor stock selection in consumer discretionary, as well as poor stock selection and an overweight in communication services, detracted from performance. From a country perspective, strong stock selection and an overweight in Sweden, and strong stock selection and an underweight in Japan, contributed positively to performance. Poor stock selection in Brazil and Norway detracted from performance.
The biggest contributors to performance during the period were HeadHunter Group, Gruppo MutuiOnline, CAE, Voltronic Power Technology, and BTS Group.
The biggest detractors from performance during the period were Vasta Platform, Union Auction Public, Autohome, Tegma Gestao Logistica, and Kanzhun.
Fixed Income
The fixed income portfolio’s underweight to U.S. Treasuries relative to spread sectors was the key driver of its outperformance for the fiscal year ended
September 30, 2021. Among fixed income sectors, the portfolio’s allocations to corporate high yield and bank loans, as well as issue selection within corporate high quality, contributed to performance. Allocation and issue selection within asset-backed securities and non-agency residential mortgage-backed securities were also positive contributors to performance, as was issue selection within the emerging markets high yield sector.
The portfolio’s positioning in and higher quality bias to corporate high yield and bank loans detracted from performance, as did the underweight to the emerging markets high yield sector.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Allocation: The Fund’s exposure to different asset classes may not be optimal for market conditions at a given time. Asset allocation does not guarantee a profit or protect against a loss in declining markets.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the portfolio manager(s) to invest the Fund’s assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2021.
Common Stocks   68%
Information Technology 23%  
Consumer Discretionary 13  
Communication Services 10  
All Other Common Stocks 22  
Corporate Bonds and Notes   11
Financials 4  
Energy 1  
Information Technology 1  
All Other Corporate Bonds and Notes 5  
Mortgage-Backed Securities   8
U.S. Government Securities   4
Asset-Backed Securities   3
Leveraged Loans   3
Foreign Government Securities   1
Other (includes short-term investment and securities lending collateral)   2
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
40

Table of Contents
Tactical Allocation Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/21
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   16.69 % 13.95 % 11.05 % — % —
Class A shares at POP3,4   10.27 12.67 10.43 — —
Class C shares at NAV2 and with CDSC4   15.82  13.09  10.21  —  —
Class I shares at NAV2   16.88  —  —  21.50  1/29/19
Class R6 shares at NAV2   —  —  —  13.23  10/20/20
Bloomberg U.S. Aggregate Bond Index   -0.90  2.94  3.01  —  5 —
MSCI ACWI ex USA SMID Cap Index (net)   28.94  9.40  8.69  —  6 —
Russell 1000® Growth Index   27.32  22.84  19.68  —  7  
Tactical Allocation Fund Linked Benchmark   15.76  13.02  11.35  —  8 —
Fund Expense Ratios9: Class A shares: Gross 1.06%, Net 0.99%; Class C shares: Gross 1.84%, Net 1.75%; Class I shares: Gross 0.85%, Net 0.76%; Class R6 shares: Gross 0.76%, Net 0.60%.            
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2011, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index returned 5.18% for the inception date of Class I shares and -0.63% for the inception date of Class R6 shares.
6 The since inception index returned 13.58% for the inception date of Class I shares and 25.50% for the inception date of Class R6 shares.
7 The since inception index returned 30.78% for the inception date of Class I shares and 24.26% for the inception date of Class R6 shares.
8 The since inception index returned 18.10% for the inception date of Class I shares and 14.14% for the inception date of Class R6 shares.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
41

Table of Contents
Tactical Allocation Fund (Continued)
9 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective February 1, 2021, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through February 1, 2022. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, their performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
42

Table of Contents
KAR Capital Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.7%
Communication Services—12.8%    
Facebook, Inc. Class A(1)    142,100   $ 48,227
Netflix, Inc.(1)     46,780    28,552
Tencent Holdings Ltd. Unsponsored ADR    303,650    18,149
ZoomInfo Technologies, Inc. Class A(1)    139,520     8,537
      103,465
       
 
Consumer Discretionary—21.0%    
Airbnb, Inc. Class A(1)     66,165    11,099
Alibaba Group Holding Ltd. Sponsored ADR(1)    137,180    20,310
Amazon.com, Inc.(1)     19,662    64,590
Home Depot, Inc. (The)     33,685    11,057
Marriott International, Inc. Class A(1)     63,920     9,466
MercadoLibre, Inc.(1)     12,780    21,463
NIKE, Inc. Class B    145,370    21,112
Ross Stores, Inc.     94,226    10,257
      169,354
       
 
Consumer Staples—4.5%    
Estee Lauder Cos., Inc. (The) Class A     29,944     8,981
McCormick & Co., Inc.     75,570     6,123
Monster Beverage Corp.(1)    115,013    10,217
Procter & Gamble Co. (The)     77,580    10,846
       36,167
       
 
Financials—4.7%    
Bank of America Corp.    382,715    16,246
CME Group, Inc. Class A     33,410     6,461
MarketAxess Holdings, Inc.     25,580    10,761
Progressive Corp. (The)     49,850     4,506
       37,974
       
 
  Shares   Value
       
Health Care—5.7%    
Danaher Corp.     63,322   $  19,278
HealthEquity, Inc.(1)     72,380     4,687
Zoetis, Inc. Class A    114,257    22,182
       46,147
       
 
Industrials—7.3%    
CoStar Group, Inc.(1)    180,590    15,541
Equifax, Inc.     33,600     8,515
Fair Isaac Corp.(1)     18,980     7,553
Roper Technologies, Inc.     29,489    13,156
Uber Technologies, Inc.(1)    308,021    13,799
       58,564
       
 
Information Technology—41.6%    
Accenture plc Class A     42,388    13,561
Amphenol Corp. Class A    265,626    19,452
Avalara, Inc.(1)    152,410    26,637
Bill.com Holdings, Inc.(1)    274,976    73,405
DocuSign, Inc.(1)     30,160     7,764
Duck Creek Technologies, Inc.(1)    367,685    16,266
MongoDB, Inc. Class A(1)     16,880     7,959
NVIDIA Corp.    250,852    51,966
Paycom Software, Inc.(1)     73,522    36,449
Snowflake, Inc. Class A(1)     38,166    11,543
Trade Desk, Inc. (The) Class A(1)    243,720    17,133
Visa, Inc. Class A    152,834    34,044
Workday, Inc. Class A(1)     75,691    18,914
      335,093
Materials—1.1%    
Ecolab, Inc.     43,336     9,041
Total Common Stocks
(Identified Cost $233,344) 		  795,805
       
Total Long-Term Investments—98.7%
(Identified Cost $233,344) 		  795,805
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—1.4%
Money Market Mutual Fund—1.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 11,388,998   $  11,389
Total Short-Term Investment
(Identified Cost $11,389) 		   11,389
 
TOTAL INVESTMENTS—100.1%
(Identified Cost $244,733) 		  $807,194
Other assets and liabilities, net—(0.1)%      (854)
NET ASSETS—100.0%   $806,340
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 92%
China 5
Brazil 3
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $795,805   $795,805
Money Market Mutual Fund 11,389   11,389
Total Investments $807,194   $807,194
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
43

Table of Contents
KAR Equity Income Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.4%
Communication Services—8.3%    
Omnicom Group, Inc.    74,250   $  5,380
Verizon Communications, Inc.   114,753     6,198
       11,578
       
 
Consumer Discretionary—5.7%    
Home Depot, Inc. (The)     4,618     1,516
Leggett & Platt, Inc.   108,350     4,858
McDonald’s Corp.     6,420     1,548
        7,922
       
 
Consumer Staples—13.2%    
Clorox Co. (The)     5,560       921
Coca-Cola Co. (The)    69,740     3,659
Kellogg Co.    66,950     4,279
Kimberly-Clark Corp.    33,313     4,412
PepsiCo, Inc.    24,680     3,712
Procter & Gamble Co. (The)    10,690     1,495
       18,478
       
 
Financials—16.6%    
Bank of Hawaii Corp.    69,419     5,704
PNC Financial Services Group, Inc. (The)    41,142     8,049
U.S. Bancorp    63,625     3,782
Zurich Insurance Group AG ADR(1)   140,065     5,751
       23,286
       
 
Health Care—11.2%    
Johnson & Johnson     8,503     1,373
Merck & Co., Inc.    41,630     3,127
Patterson Cos., Inc.   185,350     5,586
Pfizer, Inc.   130,780     5,625
       15,711
       
 
Industrials—12.9%    
BAE Systems plc Sponsored ADR(1)   168,578     5,154
MSC Industrial Direct Co., Inc. Class A    71,008     5,694
Snap-on, Inc.     6,453     1,348
Watsco, Inc.    22,133     5,857
       18,053
       
 
  Shares   Value
       
Information Technology—11.6%    
Analog Devices, Inc.     9,196   $   1,540
Cisco Systems, Inc.   101,770     5,540
International Business Machines Corp.    45,100     6,266
Paychex, Inc.    25,506     2,868
       16,214
       
 
Materials—8.3%    
Amcor plc   438,674     5,084
Eastman Chemical Co.    39,719     4,001
Sonoco Products Co.    42,606     2,539
       11,624
       
 
Real Estate—1.6%    
Crown Castle International Corp.    12,820     2,222
Utilities—9.0%    
Fortis, Inc.    81,700     3,622
NextEra Energy, Inc.    34,310     2,694
Southern Co. (The)    69,040     4,278
WEC Energy Group, Inc.    22,030     1,943
       12,537
Total Common Stocks
(Identified Cost $120,110) 		  137,625
 
Total Long-Term Investments—98.4%
(Identified Cost $120,110) 		  137,625
 
Short-Term Investment—1.4%
Money Market Mutual Fund—1.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 2,005,646     2,006
Total Short-Term Investment
(Identified Cost $2,006) 		    2,006
       
 
       
 
  Shares   Value
       
       
Securities Lending Collateral—1.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2)(3) 1,905,030   $   1,905
Total Securities Lending Collateral
(Identified Cost $1,905) 		    1,905
 
TOTAL INVESTMENTS—101.2%
(Identified Cost $124,021) 		  $141,536
Other assets and liabilities, net—(1.2)%    (1,734)
NET ASSETS—100.0%   $139,802
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) All or a portion of security is on loan.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(3) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 86%
Switzerland 4
United Kingdom 4
Jersey 4
Canada 2
Total 100%
† % of total investments as of September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
44

Table of Contents
KAR Equity Income Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $137,625   $137,625
Securities Lending Collateral 1,905   1,905
Money Market Mutual Fund 2,006   2,006
Total Investments $141,536   $141,536
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
See Notes to Financial Statements
45

Table of Contents
KAR Global Quality Dividend Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.1%
Communication Services—18.6%    
BCE, Inc.  38,938   $ 1,949
Omnicom Group, Inc.  16,214    1,175
Spark New Zealand Ltd. 483,335    1,590
Telenor ASA  57,580      969
Verizon Communications, Inc.  27,116    1,465
       7,148
       
 
Consumer Discretionary—2.6%    
Leggett & Platt, Inc.  22,502    1,009
Consumer Staples—9.7%    
Coca-Cola Co. (The)  18,391      965
PepsiCo, Inc.   4,522      680
Tate & Lyle plc 146,172    1,360
Unilever plc  13,115      710
       3,715
       
 
Financials—20.7%    
Bank of Hawaii Corp.   8,847      727
IGM Financial, Inc.  20,938      748
PNC Financial Services Group, Inc. (The)   5,611    1,098
Royal Bank of Canada  13,392    1,332
Singapore Exchange Ltd.  46,617      341
Tokio Marine Holdings, Inc.  21,020    1,127
U.S. Bancorp  16,899    1,005
Zurich Insurance Group AG   1,380      564
Zurich Insurance Group AG ADR  23,997      985
       7,927
       
 
Health Care—8.9%    
Johnson & Johnson   1,149      185
Merck & Co., Inc.   9,057      680
Patterson Cos., Inc.  34,832    1,050
Pfizer, Inc.  25,320    1,089
Sonic Healthcare Ltd.  13,730      397
       3,401
       
 
  Shares   Value
       
Industrials—11.7%    
Adecco Group AG  21,848   $  1,095
BAE Systems plc 235,195    1,781
MSC Industrial Direct Co., Inc. Class A  10,302      826
Watsco, Inc.   2,961      784
       4,486
       
 
Information Technology—7.4%    
Cisco Systems, Inc.  13,403      730
International Business Machines Corp.  11,993    1,666
Paychex, Inc.   3,823      430
       2,826
       
 
Materials—6.8%    
Amcor plc 111,274    1,289
Eastman Chemical Co.   9,547      962
Kemira OYJ  24,170      371
       2,622
       
 
Real Estate—1.2%    
Crown Castle International Corp.   2,649      459
Utilities—10.5%    
Fortis, Inc.  32,239    1,429
Southern Co. (The)  21,811    1,352
Terna - Rete Elettrica Nazionale 128,720      913
WEC Energy Group, Inc.   3,987      352
       4,046
Total Common Stocks
(Identified Cost $32,421) 		  37,639
 
Total Long-Term Investments—98.1%
(Identified Cost $32,421) 		  37,639
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—1.4%
Money Market Mutual Fund—1.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(1) 525,385   $    525
Total Short-Term Investment
(Identified Cost $525) 		     525
 
TOTAL INVESTMENTS—99.5%
(Identified Cost $32,946) 		  $38,164
Other assets and liabilities, net—0.5%      202
NET ASSETS—100.0%   $38,366
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 50%
Canada 14
Switzerland 10
United Kingdom 10
New Zealand 4
Japan 3
Norway 3
Other 6
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $37,639   $26,421   $11,218
Money Market Mutual Fund 525   525   —
Total Investments $38,164   $26,946   $11,218
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
46

Table of Contents
KAR Mid-Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—97.0%
Consumer Discretionary—10.2%    
Latham Group, Inc.(1)  1,754,462   $   28,773
Ross Stores, Inc.    438,371      47,717
SiteOne Landscape Supply, Inc.(1)    178,779      35,661
Tractor Supply Co.    147,358      29,856
        142,007
       
 
Consumer Staples—3.1%    
Lamb Weston Holdings, Inc.    703,198      43,155
Financials—13.4%    
Berkley (W.R.) Corp.    499,772      36,573
Broadridge Financial Solutions, Inc.    290,706      48,443
First Financial Bankshares, Inc.    632,120      29,046
Houlihan Lokey, Inc. Class A    478,951      44,112
LPL Financial Holdings, Inc.    186,017      29,160
        187,334
       
 
Health Care—17.8%    
Cooper Cos., Inc. (The)    107,454      44,412
Elanco Animal Health, Inc.(1)  1,420,682      45,305
Globus Medical, Inc. Class A(1)    850,522      65,167
West Pharmaceutical Services, Inc.    221,910      94,210
        249,094
       
 
Industrials—33.2%    
Allegion plc    309,063      40,852
AMETEK, Inc.    534,384      66,269
  Shares   Value
       
Industrials—continued    
Equifax, Inc.    210,054   $    53,232
Exponent, Inc.    511,586      57,886
HEICO Corp. Class A    351,018      41,571
Lennox International, Inc.     76,087      22,382
Nordson Corp.    207,354      49,381
Old Dominion Freight Line, Inc.    163,964      46,890
Pentair plc    553,883      40,229
Verisk Analytics, Inc. Class A    226,888      45,439
        464,131
       
 
Information Technology—17.7%    
Amphenol Corp. Class A    386,656      28,315
Aspen Technology, Inc.(1)    319,471      39,231
Bentley Systems, Inc. Class B    589,056      35,720
Brooks Automation, Inc.    728,195      74,531
Dolby Laboratories, Inc. Class A    365,556      32,169
Zebra Technologies Corp. Class A(1)     73,726      38,000
        247,966
       
 
Real Estate—1.6%    
Equity LifeStyle Properties, Inc.    286,065      22,342
Total Common Stocks
(Identified Cost $918,838) 		  1,356,029
Total Long-Term Investments—97.0%
(Identified Cost $918,838) 		  1,356,029
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—2.8%
Money Market Mutual Fund—2.8%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 38,401,527   $    38,402
Total Short-Term Investment
(Identified Cost $38,402) 		     38,402
 
TOTAL INVESTMENTS—99.8%
(Identified Cost $957,240) 		  $1,394,431
Other assets and liabilities, net—0.2%       3,279
NET ASSETS—100.0%   $1,397,710
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,356,029   $1,356,029
Money Market Mutual Fund 38,402   38,402
Total Investments $1,394,431   $1,394,431
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
See Notes to Financial Statements
47

Table of Contents
KAR Mid-Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Preferred Stock—1.2%
Information Technology—1.2%    
Security Scorecard, Inc. Series E, 0.000%(1)(2)(3)  2,639,750   $    42,579
Total Preferred Stock
(Identified Cost $40,000) 		     42,579
 
Common Stocks—96.0%
Communication Services—1.5%    
ZoomInfo Technologies, Inc. Class A(2)    838,144      51,286
Consumer Discretionary—18.8%    
Domino’s Pizza, Inc.    108,304      51,657
DraftKings, Inc. Class A(2)    697,725      33,602
Global-e Online Ltd.(2)    579,370      41,599
MercadoLibre, Inc.(2)    117,619     197,529
Olo, Inc. Class A(2)  1,064,387      31,963
Pool Corp.    159,159      69,140
Rollins, Inc.  1,127,475      39,834
Ross Stores, Inc.    444,301      48,362
SiteOne Landscape Supply, Inc.(2)    649,900     129,636
        643,322
       
 
Consumer Staples—8.6%    
Brown-Forman Corp. Class B    788,717      52,852
Celsius Holdings, Inc.(2)    505,536      45,544
Freshpet, Inc.(2)    474,380      67,689
McCormick & Co., Inc.    338,322      27,414
Monster Beverage Corp.(2)    483,651      42,963
National Beverage Corp.  1,028,890      54,007
Olaplex Holdings, Inc.(2)    188,013       4,606
        295,075
       
 
Financials—8.4%    
Goosehead Insurance, Inc. Class A    652,468      99,364
MarketAxess Holdings, Inc.    145,736      61,310
Signature Bank    287,250      78,212
T. Rowe Price Group, Inc.    256,124      50,380
        289,266
       
 
Health Care—11.0%    
Definitive Healthcare Corp. Class A(2)    188,093       8,056
  Shares   Value
       
Health Care—continued    
Elanco Animal Health, Inc.(2)  1,531,339   $    48,834
HealthEquity, Inc.(2)    921,842      59,698
IDEXX Laboratories, Inc.(2)     89,260      55,511
Mettler-Toledo International, Inc.(2)     38,431      52,933
Silk Road Medical, Inc.(2)    792,890      43,633
STAAR Surgical Co.(2)    188,956      24,287
Treace Medical Concepts, Inc.(2)    718,025      19,315
Zoetis, Inc. Class A    326,017      63,293
        375,560
       
 
Industrials—9.2%    
Acuity Brands, Inc.    181,369      31,444
CoStar Group, Inc.(2)    616,930      53,093
Equifax, Inc.    280,040      70,968
Fair Isaac Corp.(2)    184,987      73,612
Lyft, Inc. Class A(2)    939,226      50,333
Roper Technologies, Inc.     83,187      37,112
        316,562
       
 
Information Technology—38.5%    
Amphenol Corp. Class A    803,900      58,870
Avalara, Inc.(2)    685,464     119,799
Bill.com Holdings, Inc.(2)    809,049     215,976
Coupa Software, Inc.(2)    102,339      22,431
Datadog, Inc. Class A(2)    543,609      76,839
DocuSign, Inc.(2)    464,458     119,565
Dynatrace, Inc.(2)    781,857      55,488
FleetCor Technologies, Inc.(2)    202,572      52,926
Gartner, Inc.(2)    337,417     102,534
nCino, Inc.(2)    867,259      61,601
Okta, Inc. Class A(2)    355,610      84,401
Paycom Software, Inc.(2)    224,256     111,175
Square, Inc. Class A(2)    213,905      51,303
Teradyne, Inc.    473,018      51,639
Trade Desk, Inc. (The) Class A(2)  1,308,630      91,997
Workday, Inc. Class A(2)    173,430      43,338
      1,319,882
Total Common Stocks
(Identified Cost $2,009,056) 		  3,290,953
       
Total Long-Term Investments—97.2%
(Identified Cost $2,049,056) 		  3,333,532
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—2.9%
Money Market Mutual Fund—2.9%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(4) 99,286,906   $    99,287
Total Short-Term Investment
(Identified Cost $99,287) 		     99,287
 
TOTAL INVESTMENTS—100.1%
(Identified Cost $2,148,343) 		  $3,432,819
Other assets and liabilities, net—(0.1)%      (3,001)
NET ASSETS—100.0%   $3,429,818
    
Footnote Legend:
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Non-income producing.
(3) All or a portion of the security is restricted.
(4) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 93%
Brazil 6
Israel 1
Total 100%
† % of total investments as of September 30, 2021.
See Notes to Financial Statements
48

Table of Contents
KAR Mid-Cap Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 3
Significant
Unobservable
Inputs
Assets:          
Equity Securities:          
Common Stocks $3,290,953   $3,290,953   $ —
Preferred Stock 42,579   —   42,579
Money Market Mutual Fund 99,287   99,287   —
Total Investments $3,432,819   $3,390,240   $42,579
There were no securities valued using significant observable inputs (Level 2) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Preferred
Stock
Balance as of September 30, 2020: $ —   $ —
Change in unrealized appreciation (depreciation)(a) 2,579   2,579
Purchases 40,000   40,000
Balance as of September 30, 2021 $42,579   $42,579
(a) The change in unrealized appreciation (depreciation) on investments still held at September 30, 2021, was $2,579.
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at September 30, 2021:
Investments in Securities – Assets Ending
Balance
at September 30, 2021 		  Valuation Technique Used   Unobservable
Inputs 		  Input
Values
Preferred Stock:              
Security Scorecard, Inc. Series E $42,579   Market and Company Comparables   EV Multiples   20.97x(8.88x - 65.23x)
              15.10x (6.23x - 54.76x)
               
See Notes to Financial Statements
49

Table of Contents
KAR Small-Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—96.0%
Communication Services—7.6%    
Autohome, Inc. ADR  1,040,195   $   48,816
Rightmove plc 10,659,000      97,927
        146,743
       
 
Consumer Discretionary—4.7%    
Acushnet Holdings Corp.  1,863,041      87,004
LCI Industries     27,878       3,753
         90,757
       
 
Consumer Staples—1.7%    
PriceSmart, Inc.    417,189      32,353
Energy—1.1%    
Dril-Quip, Inc.(1)    799,140      20,122
Financials—20.4%    
Artisan Partners Asset Management, Inc. Class A    795,600      38,921
FactSet Research Systems, Inc.    167,440      66,102
First Hawaiian, Inc.  3,053,755      89,628
Moelis & Co. Class A  1,107,440      68,517
Primerica, Inc.    576,512      88,570
RLI Corp.    407,903      40,900
        392,638
       
 
Health Care—6.4%    
Atrion Corp.     48,880      34,094
CorVel Corp.(1)    481,080      89,587
        123,681
       
 
Industrials—36.7%    
Donaldson Co., Inc.    450,200      25,846
EMCOR Group, Inc.    813,970      93,916
  Shares   Value
       
Industrials—continued    
FTI Consulting, Inc.(1)    821,194   $   110,615
Graco, Inc.  1,141,110      79,843
Landstar System, Inc.    522,209      82,415
RBC Bearings, Inc.(1)    318,987      67,689
Simpson Manufacturing Co., Inc.    802,717      85,867
Toro Co. (The)    751,701      73,223
Watts Water Technologies, Inc. Class A    523,774      88,041
        707,455
       
 
Information Technology—16.3%    
Aspen Technology, Inc.(1)    559,600      68,719
Clearwater Analytics Holdings, Inc.
Class A (1) 		 1,093,878      28,014
Jack Henry & Associates, Inc.    207,800      34,092
Manhattan Associates, Inc.(1)    611,720      93,611
Teledyne Technologies, Inc.(1)    208,552      89,590
        314,026
       
 
Materials—1.1%    
AptarGroup, Inc.    182,012      21,723
Total Common Stocks
(Identified Cost $1,113,792) 		  1,849,498
Total Long-Term Investments—96.0%
(Identified Cost $1,113,792) 		  1,849,498
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—4.4%
Money Market Mutual Fund—4.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 84,215,614   $    84,216
Total Short-Term Investment
(Identified Cost $84,216) 		     84,216
 
TOTAL INVESTMENTS—100.4%
(Identified Cost $1,198,008) 		  $1,933,714
Other assets and liabilities, net—(0.4)%      (7,551)
NET ASSETS—100.0%   $1,926,163
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 92%
United Kingdom 5
China 3
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $1,849,498   $1,751,571   $97,927
Money Market Mutual Fund 84,216   84,216   —
Total Investments $1,933,714   $1,835,787   $97,927
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
50

Table of Contents
KAR Small-Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—95.8%
Communication Services—14.9%    
Auto Trader Group plc  42,947,329   $  338,691
Autohome, Inc. ADR   4,885,180     229,262
MediaAlpha, Inc. Class A(1)(2)   4,646,036      86,788
Rightmove plc  36,615,150     336,392
        991,133
       
 
Consumer Discretionary—13.0%    
Fox Factory Holding Corp.(1)(2)   3,632,978     525,111
Ollie’s Bargain Outlet Holdings, Inc.(1)(2)   4,713,672     284,140
Olo, Inc. Class A(1)(2)   1,921,045      57,689
        866,940
       
 
Consumer Staples—3.2%    
Chefs’ Warehouse, Inc. (The)(1)(2)   2,454,523      79,944
Grocery Outlet Holding Corp.(2)   3,961,022      85,439
PriceSmart, Inc.     640,298      49,655
        215,038
       
 
Financials—21.6%    
FactSet Research Systems, Inc.     380,708     150,296
Goosehead Insurance, Inc. Class A(1)   1,120,700     170,672
Interactive Brokers Group, Inc. Class A   3,187,856     198,731
MarketAxess Holdings, Inc.     330,985     139,242
Morningstar, Inc.     943,942     244,509
Oportun Financial Corp.(1)(2)   2,635,930      65,977
Ryan Specialty Group Holdings, Inc. Class A(1)(2)  10,175,150     344,632
  Shares   Value
       
Financials—continued    
ServisFirst Bancshares, Inc.   1,648,516   $   128,255
      1,442,314
       
 
Health Care—3.9%    
Mesa Laboratories, Inc.      85,353      25,807
National Research Corp.(1)   2,409,518     101,610
U.S. Physical Therapy, Inc.(1)   1,185,000     131,061
        258,478
       
 
Industrials—7.4%    
AAON, Inc.(1)   3,359,400     219,503
HEICO Corp. Class A   1,307,383     154,833
Omega Flex, Inc.(1)     841,642     120,094
        494,430
       
 
Information Technology—31.8%    
Aspen Technology, Inc.(2)   1,578,926     193,892
Avalara, Inc.(2)   1,420,000     248,173
Bill.com Holdings, Inc.(2)   2,257,005     602,508
Blackline, Inc.(2)   2,472,403     291,892
Duck Creek Technologies, Inc.(1)(2)   8,694,221     384,632
nCino, Inc.(2)   2,821,202     200,390
NVE Corp.(1)     412,690      26,400
SPS Commerce, Inc.(2)   1,045,164     168,595
      2,116,482
Total Common Stocks
(Identified Cost $3,435,370) 		  6,384,815
       
 
       
 
Total Long-Term Investments—95.8%
(Identified Cost $3,435,370) 		  6,384,815
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—4.3%
Money Market Mutual Fund—4.3%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(3) 284,304,587   $   284,305
Total Short-Term Investment
(Identified Cost $284,305) 		    284,305
 
TOTAL INVESTMENTS—100.1%
(Identified Cost $3,719,675) 		  $6,669,120
Other assets and liabilities, net—(0.1)%      (4,108)
NET ASSETS—100.0%   $6,665,012
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Affiliated investment. See Note 3H in Notes to Financial Statements.
(2) Non-income producing.
(3) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 87%
United Kingdom 10
China 3
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $6,384,815   $5,709,732   $675,083
Money Market Mutual Fund 284,305   284,305   —
Total Investments $6,669,120   $5,994,037   $675,083
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
51

Table of Contents
KAR Small-Cap Value Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—96.1%
Consumer Discretionary—21.9%    
Cheesecake Factory, Inc. (The)(1)  1,200,215   $   56,410
Latham Group, Inc.(1)  1,813,745      29,745
Leslie’s, Inc.(1)  1,872,923      38,470
SiteOne Landscape Supply, Inc.(1)    382,893      76,376
Terminix Global Holdings, Inc.(1)  1,075,711      44,825
Thor Industries, Inc.    538,406      66,095
        311,921
       
 
Consumer Staples—5.6%    
National Beverage Corp.    867,770      45,549
WD-40 Co.    148,451      34,364
         79,913
       
 
Financials—17.5%    
Bank of Hawaii Corp.    569,215      46,772
First Financial Bankshares, Inc.    478,223      21,974
Houlihan Lokey, Inc. Class A    753,490      69,397
Primerica, Inc.    243,735      37,445
RLI Corp.    365,989      36,698
Stock Yards Bancorp, Inc.    627,556      36,806
        249,092
       
 
Health Care—1.4%    
Anika Therapeutics, Inc.(1)    465,689      19,820
Industrials—26.8%    
Albany International Corp. Class A    536,678      41,254
Armstrong World Industries, Inc.    477,520      45,589
  Shares   Value
       
Industrials—continued    
Construction Partners, Inc. Class A(1)    800,935   $    26,727
Graco, Inc.    657,704      46,020
John Bean Technologies Corp.    254,148      35,721
Landstar System, Inc.    273,288      43,130
RBC Bearings, Inc.(1)    265,552      56,350
UniFirst Corp.    132,387      28,148
Watsco, Inc.    223,780      59,217
        382,156
       
 
Information Technology—14.1%    
American Software, Inc. Class A  1,006,834      23,912
Badger Meter, Inc.    204,069      20,640
Brooks Automation, Inc.    845,607      86,548
EVERTEC, Inc.    999,895      45,715
Jack Henry & Associates, Inc.    144,745      23,747
        200,562
       
 
Materials—4.7%    
Scotts Miracle-Gro Co. (The)    457,813      67,005
Real Estate—4.1%    
MGM Growth Properties LLC Class A  1,534,190      58,759
Total Common Stocks
(Identified Cost $876,237) 		  1,369,228
Total Long-Term Investments—96.1%
(Identified Cost $876,237) 		  1,369,228
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—3.7%
Money Market Mutual Fund—3.7%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 53,515,358   $    53,515
Total Short-Term Investment
(Identified Cost $53,515) 		     53,515
 
TOTAL INVESTMENTS—99.8%
(Identified Cost $929,752) 		  $1,422,743
Other assets and liabilities, net—0.2%       2,267
NET ASSETS—100.0%   $1,425,010
    
Abbreviation:
LLC Limited Liability Company
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,369,228   $1,369,228
Money Market Mutual Fund 53,515   53,515
Total Investments $1,422,743   $1,422,743
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
52

Table of Contents
KAR Small-Mid Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—94.5%
Consumer Discretionary—17.0%    
Bright Horizons Family Solutions, Inc.(1)    223,547   $   31,167
Pool Corp.    126,366      54,895
Rollins, Inc.    630,608      22,279
SiteOne Landscape Supply, Inc.(1)    286,664      57,181
Thor Industries, Inc.    399,046      48,987
        214,509
       
 
Financials—13.3%    
Berkley (W.R.) Corp.    535,490      39,187
Interactive Brokers Group, Inc. Class A    492,037      30,674
LPL Financial Holdings, Inc.    254,499      39,895
MSCI, Inc. Class A     95,662      58,195
        167,951
       
 
Health Care—14.1%    
Charles River Laboratories International, Inc.(1)    183,196      75,599
Chemed Corp.     56,566      26,310
Cooper Cos., Inc. (The)    114,239      47,216
Elanco Animal Health, Inc.(1)    919,270      29,316
        178,441
       
 
Industrials—19.7%    
Allegion plc    279,148      36,898
Copart, Inc.(1)    304,551      42,247
Equifax, Inc.    177,360      44,946
Exponent, Inc.    233,353      26,404
  Shares   Value
       
Industrials—continued    
Fair Isaac Corp.(1)     44,955   $    17,889
Lennox International, Inc.    118,969      34,997
Nordson Corp.    192,058      45,739
        249,120
       
 
Information Technology—26.1%    
ANSYS, Inc.(1)     74,860      25,486
Aspen Technology, Inc.(1)    216,280      26,559
Bentley Systems, Inc. Class B    826,354      50,110
CDW Corp.    268,004      48,782
Duck Creek Technologies, Inc.(1)    529,879      23,442
Jack Henry & Associates, Inc.    147,060      24,127
Teledyne Technologies, Inc.(1)     43,221      18,567
Teradyne, Inc.    393,348      42,942
Zebra Technologies Corp. Class A(1)    135,314      69,743
        329,758
       
 
Materials—4.3%    
Scotts Miracle-Gro Co. (The)    366,503      53,642
Total Common Stocks
(Identified Cost $967,089) 		  1,193,421
Total Long-Term Investments—94.5%
(Identified Cost $967,089) 		  1,193,421
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—5.1%
Money Market Mutual Fund—5.1%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 65,012,105   $    65,012
Total Short-Term Investment
(Identified Cost $65,012) 		     65,012
 
TOTAL INVESTMENTS—99.6%
(Identified Cost $1,032,101) 		  $1,258,433
Other assets and liabilities, net—0.4%       5,108
NET ASSETS—100.0%   $1,263,541
    
Abbreviation:
MSCI Morgan Stanley Capital International
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,193,421   $1,193,421
Money Market Mutual Fund 65,012   65,012
Total Investments $1,258,433   $1,258,433
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
53

Table of Contents
KAR Small-Mid Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—99.0%
Communication Services—4.3%    
MediaAlpha, Inc. Class A(1)  4,307   $   81
Rightmove plc ADR  9,998     182
        263
       
 
Consumer Discretionary—9.2%    
Ollie’s Bargain Outlet Holdings, Inc.(1)  2,249     136
Olo, Inc. Class A(1)  4,742     142
SiteOne Landscape Supply, Inc.(1)  1,414     282
        560
       
 
Consumer Staples—2.0%    
Lamb Weston Holdings, Inc.  1,934     119
Financials—10.0%    
FactSet Research Systems, Inc.    455     179
MarketAxess Holdings, Inc.    468     197
Ryan Specialty Group Holdings, Inc. Class A(1)  6,880     233
        609
       
 
Health Care—21.4%    
Cooper Cos., Inc. (The)    350     145
Elanco Animal Health, Inc.(1)  4,512     144
Globus Medical, Inc. Class A(1)  2,410     184
HealthEquity, Inc.(1)  2,960     192
Silk Road Medical, Inc.(1)  5,346     294
  Shares   Value
       
Health Care—continued    
West Pharmaceutical Services, Inc.    801   $   340
      1,299
       
 
Industrials—21.8%    
Copart, Inc.(1)  1,809     251
Fair Isaac Corp.(1)    328     130
HEICO Corp. Class A  1,847     219
Old Dominion Freight Line, Inc.  1,261     361
TransUnion  1,789     201
Verisk Analytics, Inc. Class A    825     165
      1,327
       
 
Information Technology—30.3%    
Avalara, Inc.(1)  1,388     243
Bentley Systems, Inc. Class B  5,087     309
Clearwater Analytics Holdings, Inc. Class A (1)  8,174     209
Duck Creek Technologies, Inc.(1)  3,418     151
Five9, Inc.(1)  1,117     178
Jack Henry & Associates, Inc.  1,093     179
nCino, Inc.(1)  1,869     133
Teledyne Technologies, Inc.(1)    483     208
Tyler Technologies, Inc.(1)    509     233
      1,843
Total Common Stocks
(Identified Cost $5,633) 		  6,020
 
Total Long-Term Investments—99.0%
(Identified Cost $5,633) 		  6,020
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—0.2%
Money Market Mutual Fund—0.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 13,591   $    14
Total Short-Term Investment
(Identified Cost $14) 		     14
 
TOTAL INVESTMENTS—99.2%
(Identified Cost $5,647) 		  $6,034
Other assets and liabilities, net—0.8%      49
NET ASSETS—100.0%   $6,083
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $6,020   $6,020
Money Market Mutual Fund 14   14
Total Investments $6,034   $6,034
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
54

Table of Contents
KAR Small-Mid Cap Value Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.5%
Consumer Discretionary—14.6%    
Cheesecake Factory, Inc. (The)(1)  1,966   $   92
Gentex Corp.  2,238      74
Leslie’s, Inc.(1)  2,639      54
Terminix Global Holdings, Inc.(1)  1,666      70
Thor Industries, Inc.  1,127     138
        428
       
 
Consumer Staples—5.0%    
National Beverage Corp.  1,801      95
WD-40 Co.    222      51
        146
       
 
Financials—13.8%    
Bank of Hawaii Corp.  1,164      96
Berkley (W.R.) Corp.  1,509     110
Broadridge Financial Solutions, Inc.    637     106
MSCI, Inc. Class A    151      92
        404
       
 
Health Care—5.0%    
Anika Therapeutics, Inc.(1)  1,074      46
CorVel Corp.(1)    539     100
        146
       
 
Industrials—24.6%    
Armstrong World Industries, Inc.    752      72
Graco, Inc.  1,339      94
John Bean Technologies Corp.    551      77
Landstar System, Inc.    594      94
Lennox International, Inc.    172      51
RBC Bearings, Inc.(1)    556     118
  Shares   Value
       
Industrials—continued    
Toro Co. (The)    949   $    92
TransUnion  1,103     124
        722
       
 
Information Technology—22.2%    
American Software, Inc. Class A  2,946      70
CDK Global, Inc.  1,140      48
CDW Corp.    529      96
Dolby Laboratories, Inc. Class A    761      67
Jack Henry & Associates, Inc.    674     111
Teradyne, Inc.    988     108
Zebra Technologies Corp. Class A(1)    289     149
        649
       
 
Materials—6.3%    
Axalta Coating Systems Ltd. (1)  2,404      70
Scotts Miracle-Gro Co. (The)    780     114
        184
       
 
Real Estate—7.0%    
Lamar Advertising Co. Class A    965     109
MGM Growth Properties LLC Class A  2,494      96
        205
Total Common Stocks
(Identified Cost $2,993) 		  2,884
 
Total Long-Term Investments—98.5%
(Identified Cost $2,993) 		  2,884
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—0.5%
Money Market Mutual Fund—0.5%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 14,054   $    14
Total Short-Term Investment
(Identified Cost $14) 		     14
       
 
       
 
TOTAL INVESTMENTS—99.0%
(Identified Cost $3,007) 		  $2,898
Other assets and liabilities, net—1.0%      29
NET ASSETS—100.0%   $2,927
    
Abbreviations:
LLC Limited Liability Company
MSCI Morgan Stanley Capital International
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $2,884   $2,884
Money Market Mutual Fund 14   14
Total Investments $2,898   $2,898
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
55

Table of Contents
SGA Emerging Markets Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.4%
Communication Services—5.0%    
Kakao Corp.   1,855   $  182
Tencent Holdings Ltd.   2,152     129
        311
       
 
Consumer Discretionary—22.5%    
Alibaba Group Holding Ltd.(1)   5,228      97
Fast Retailing Co. Ltd.     275     203
Huazhu Group Ltd. ADR(1)   4,742     218
JD.com, Inc. ADR(1)   1,803     130
MercadoLibre, Inc.(1)     166     279
Trip.com Group Ltd. ADR(1)   4,397     135
Yum China Holdings, Inc.   5,704     331
      1,393
       
 
Consumer Staples—29.2%    
Budweiser Brewing Co. APAC Ltd. 100,952     257
China Mengniu Dairy Co., Ltd.(1)  45,030     290
CP ALL PCL 183,032     342
Fomento Economico Mexicano SAB de C.V. Sponsored ADR   3,036     263
Raia Drogasil S.A.  36,870     157
Unilever plc Sponsored ADR   3,266     177
Wal-Mart de Mexico SAB de C.V.  95,484     324
      1,810
       
 
Financials—23.8%    
AIA Group Ltd.  21,721     250
Bank Central Asia Tbk PT 119,234     290
HDFC Bank Ltd. ADR   4,865     356
Sanlam Ltd.  60,214     255
XP, Inc. Class A(1)   8,016     322
      1,473
       
 
  Shares   Value
       
Health Care—6.0%    
Shandong Weigao Group Medical Polymer Co., Ltd. Class H 140,426   $   249
Wuxi Biologics Cayman, Inc.(1)   7,632     124
        373
       
 
Information Technology—5.8%    
Infosys Ltd. Sponsored ADR  16,159     359
Materials—2.9%    
Asian Paints Ltd.   4,156     181
Real Estate—3.2%    
Country Garden Services Holdings Co., Ltd.  24,827     196
Total Common Stocks
(Identified Cost $5,143) 		  6,096
Total Long-Term Investments—98.4%
(Identified Cost $5,143) 		  6,096
 
Short-Term Investment—1.1%
Money Market Mutual Fund—1.1%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2)  67,774      68
Total Short-Term Investment
(Identified Cost $68) 		     68
 
TOTAL INVESTMENTS—99.5%
(Identified Cost $5,211) 		  $6,164
Other assets and liabilities, net—0.5%      31
NET ASSETS—100.0%   $6,195
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
China 26%
India 15
Hong Kong 13
Brazil 12
Mexico 9
Thailand 6
Indonesia 5
Other 14
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $6,096   $3,051   $3,045
Money Market Mutual Fund 68   68   —
Total Investments $6,164   $3,119   $3,045
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
56

Table of Contents
SGA Global Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—98.4%
Communication Services—9.5%    
Alphabet, Inc. Class C(1)     2,016   $  5,373
Facebook, Inc. Class A(1)    17,500     5,940
Walt Disney Co. (The)(1)    31,213     5,280
       16,593
       
 
Consumer Discretionary—12.5%    
Amazon.com, Inc.(1)     2,524     8,291
MercadoLibre, Inc.(1)     2,549     4,281
NIKE, Inc. Class B    23,463     3,407
Yum! Brands, Inc.    48,204     5,896
       21,875
       
 
Consumer Staples—8.1%    
China Mengniu Dairy Co., Ltd.(1)   603,810     3,889
CP ALL PCL 2,900,227     5,421
Heineken NV    47,357     4,943
       14,253
       
 
Financials—8.4%    
AIA Group Ltd.   528,562     6,081
HDFC Bank Ltd. ADR    97,862     7,153
XP, Inc. Class A(1)    39,783     1,598
       14,832
       
 
Health Care—17.7%    
Abbott Laboratories    44,800     5,292
Alcon, Inc.    44,537     3,584
Illumina, Inc.(1)     8,004     3,246
Intuitive Surgical, Inc.(1)     3,519     3,498
Medtronic plc    42,222     5,293
Novo Nordisk A/S Class B    54,483     5,252
  Shares   Value
       
Health Care—continued    
Regeneron Pharmaceuticals, Inc.(1)     8,230   $   4,981
       31,146
       
 
Industrials—5.0%    
IHS Markit Ltd.    29,933     3,491
Recruit Holdings Co., Ltd.    86,806     5,306
        8,797
       
 
Information Technology—32.3%    
Autodesk, Inc.(1)    19,353     5,519
Dassault Systemes SE    92,985     4,893
FleetCor Technologies, Inc.(1)    21,526     5,624
Infosys Ltd. Sponsored ADR   230,113     5,120
Microsoft Corp.    25,082     7,071
PayPal Holdings, Inc.(1)    23,549     6,128
salesforce.com, Inc.(1)    26,071     7,071
SAP SE Sponsored ADR    24,932     3,367
Visa, Inc. Class A    31,068     6,920
Workday, Inc. Class A(1)    20,337     5,082
       56,795
       
 
Materials—1.9%    
Linde plc    11,538     3,385
Real Estate—3.0%    
Equinix, Inc.     6,552     5,177
Total Common Stocks
(Identified Cost $120,284) 		  172,853
Total Long-Term Investments—98.4%
(Identified Cost $120,284) 		  172,853
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—1.6%
Money Market Mutual Fund—1.6%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2) 2,776,871   $   2,777
Total Short-Term Investment
(Identified Cost $2,777) 		    2,777
 
TOTAL INVESTMENTS—100.0%
(Identified Cost $123,061) 		  $175,630
Other assets and liabilities, net—0.0%        54
NET ASSETS—100.0%   $175,684
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 61%
India 7
Hong Kong 6
United Kingdom 4
Thailand 3
Japan 3
Denmark 3
Other 13
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $172,853   $137,068   $35,785
Money Market Mutual Fund 2,777   2,777   —
Total Investments $175,630   $139,845   $35,785
There were no securities valued using significant observable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
57

Table of Contents
SGA New Leaders Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Shares   Value
Common Stocks—99.1%
Communication Services—9.4%    
Kakao Corp.   1,114   $  109
Match Group, Inc.(1)   1,940     305
Spotify Technology S.A.(1)     941     212
        626
       
 
Consumer Discretionary—10.3%    
Huazhu Group Ltd. ADR(1)   3,361     154
MercadoLibre, Inc.(1)      99     167
Trip.com Group Ltd. ADR(1)   5,037     155
Yum! Brands, Inc.   1,676     205
        681
       
 
Consumer Staples—13.1%    
China Mengniu Dairy Co., Ltd.(1)  23,141     149
CP ALL PCL 138,924     260
Fomento Economico Mexicano SAB de C.V. Sponsored ADR   2,401     208
Raia Drogasil S.A.  24,435     104
Unicharm Corp.   3,403     151
        872
       
 
Financials—9.0%    
First Republic Bank   1,042     201
MSCI, Inc. Class A     325     198
XP, Inc. Class A(1)   4,932     198
        597
       
 
Health Care—24.9%    
Alcon, Inc.   2,491     200
ICON plc ADR(1)     780     204
IDEXX Laboratories, Inc.(1)     242     151
IQVIA Holdings, Inc.(1)   1,120     268
M3, Inc.   2,040     145
ResMed, Inc.     654     172
Shandong Weigao Group Medical Polymer Co., Ltd. Class H  92,776     165
STERIS plc   1,056     216
  Shares   Value
       
Health Care—continued    
Wuxi Biologics Cayman, Inc.(1)   8,417   $   137
      1,658
       
 
Industrials—3.1%    
CoStar Group, Inc.(1)   2,360     203
Information Technology—26.1%    
Adyen N.V.(1)      53     148
Autodesk, Inc.(1)     949     271
EPAM Systems, Inc.(1)     556     317
FleetCor Technologies, Inc.(1)   1,082     283
Okta, Inc. Class A(1)   1,093     259
RingCentral, Inc. Class A(1)   1,208     263
Workday, Inc. Class A(1)     784     196
      1,737
       
 
Real Estate—3.2%    
Equinix, Inc.     268     212
Total Common Stocks
(Identified Cost $6,028) 		  6,586
Total Long-Term Investments—99.1%
(Identified Cost $6,028) 		  6,586
       
 
       
 
Short-Term Investment—0.4%
Money Market Mutual Fund—0.4%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(2)  27,426      27
Total Short-Term Investment
(Identified Cost $27) 		     27
       
 
       
 
TOTAL INVESTMENTS—99.5%
(Identified Cost $6,055) 		  $6,613
Other assets and liabilities, net—0.5%      35
NET ASSETS—100.0%   $6,648
Abbreviations:
ADR American Depositary Receipt
MSCI Morgan Stanley Capital International
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 57%
China 9
Brazil 5
Japan 4
Thailand 4
Sweden 3
Mexico 3
Other 15
Total 100%
† % of total investments as of September 30, 2021.
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Equity Securities:          
Common Stocks $6,586   $5,322   $1,264
Money Market Mutual Fund 27   27   —
Total Investments $6,613   $5,349   $1,264
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2021.
There were no transfers into or out of Level 3 related to securities held at September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
58

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS September 30, 2021
($ reported in thousands)
  Par Value   Value
U.S. Government Securities—3.9%
U.S. Treasury Bonds      
3.000%, 8/15/48 $     8,965   $  10,682
2.000%, 2/15/50      2,045     2,009
1.375%, 8/15/50     12,745    10,755
1.875%, 2/15/51      5,890     5,617
2.000%, 8/15/51        440       432
U.S. Treasury Notes      
0.250%, 11/15/23      1,260     1,258
0.250%, 5/31/25      1,610     1,583
1.125%, 2/15/31      2,565     2,484
1.625%, 5/15/31        900       910
1.250%, 8/15/31      1,170     1,142
Total U.S. Government Securities
(Identified Cost $36,279) 		   36,872
 
Municipal Bonds—0.4%
California—0.1%    
Santa Clara Valley Water District Series B, Taxable
2.967%, 6/1/50 		       510       501
University of California, Series B-A, Taxable
4.428%, 5/15/48 		       380       418
          919
       
 
Idaho—0.1%    
Idaho Health Facilities Authority St. Luke’s Health System Revenue Taxable
5.020%, 3/1/48 		       450       572
Illinois—0.0%    
Sales Tax Securitization Corp. Series B, Second Lien, Taxable (BAM Insured)
3.411%, 1/1/43 		        70        76
Texas—0.1%    
City of San Antonio, General Obligation Taxable
1.963%, 2/1/33 		       530       523
State of Texas, General Obligation Taxable
3.211%, 4/1/44 		       180       189
Texas Public Finance Authority Revenue Taxable
2.140%, 2/1/35 		       585       565
Texas Transportation Commission State Highway Fund Revenue Taxable
4.000%, 10/1/33 		       160       191
        1,468
       
 
  Par Value   Value
       
Virginia—0.1%    
City of Bristol, General Obligation Taxable (State AID Withholding Insured)
4.210%, 1/1/42 		$         640   $     703
Total Municipal Bonds
(Identified Cost $3,540) 		    3,738
 
Foreign Government Securities—0.4%
Bolivarian Republic of Venezuela      
9.375%, 1/13/34(1)        130        14
RegS
7.650%, 4/21/25(1)(2) 		       320        34
Emirate of Dubai Government International Bonds RegS
5.250%, 1/30/43(2) 		       540       614
Oman Government International Bond 144A
7.375%, 10/28/32(3) 		       580       660
Republic of Turkey
5.875%, 6/26/31 		     1,125     1,056
Republic of Venezuela RegS
8.250%, 10/13/24(1)(2) 		        40         4
Saudi Arabia Government International Bond 144A
3.250%, 10/22/30(3) 		       485       519
State of Qatar 144A
4.400%, 4/16/50(3) 		       615       750
United Mexican States
2.659%, 5/24/31 		       645       622
Total Foreign Government Securities
(Identified Cost $4,746) 		    4,273
 
Mortgage-Backed Securities—7.7%
Agency—0.3%    
Federal Home Loan Mortgage Corporation      
Pool #A46224
5.000%, 7/1/35 		        62        71
Pool #A62213
6.000%, 6/1/37 		       111       131
Federal National Mortgage Association      
Pool #254549
6.000%, 12/1/32 		        18        21
Pool #735061
6.000%, 11/1/34 		       136       160
Pool #880117
5.500%, 4/1/36 		         3         4
Pool #938574
5.500%, 9/1/36 		        80        92
  Par Value   Value
       
Agency—continued    
Pool #310041
6.500%, 5/1/37 		$       108   $    129
Pool #909092
6.000%, 9/1/37 		         7         8
Pool #972569
5.000%, 3/1/38 		        86        96
Pool #909175
5.500%, 4/1/38 		        58        66
Pool #929625
5.500%, 6/1/38 		        82        96
Pool #909220
6.000%, 8/1/38 		        62        72
Pool #MA3905
3.000%, 1/1/50 		     1,635     1,713
        2,659
       
 
Non-Agency—7.4%    
ACRES Commercial Realty Corp. 2020-RSO8, A (SOFR30A + 1.264%, Cap N/A, Floor 1.150%) 144A
1.314%, 3/15/35(3)(4)(5) 		        66        66
Ajax Mortgage Loan Trust      
2021-A, A1 144A
1.065%, 9/25/65(3)(5) 		       636       634
2019-D, A1 144A
2.956%, 9/25/65(3)(5) 		       561       565
American Homes 4 Rent Trust      
2014-SFR2, C 144A
4.705%, 10/17/36(3) 		     1,050     1,119
2015-SFR1, A 144A
3.467%, 4/17/52(3) 		       947     1,000
2015-SFR2, C 144A
4.691%, 10/17/52(3) 		       335       363
AMSR Trust      
2020-SFR1, B 144A
2.120%, 4/17/37(3) 		       530       535
2020-SFR2, C 144A
2.533%, 7/17/37(3) 		       750       763
2020-SFR2, D 144A
3.282%, 7/17/37(3) 		       770       790
Angel Oak Mortgage Trust LLC 2020-4, A1 144A
1.469%, 6/25/65(3)(5) 		       940       947
Angel Oak SB Commercial Mortgage Trust 2020-SBC1, A1 144A
2.068%, 5/25/50(3)(5) 		       853       854
Arroyo Mortgage Trust      
2021-1R, A1 144A
1.175%, 10/25/48(3)(5) 		     1,142     1,143
2019-1, A1 144A
3.805%, 1/25/49(3)(5) 		       107       109
2019-2, A1 144A
3.347%, 4/25/49(3)(5) 		     1,635     1,656
See Notes to Financial Statements
59

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Non-Agency—continued    
Banc of America Funding Trust      
2004-B, 2A1
2.648%, 11/20/34(5) 		$        33   $     36
2005-1, 1A1
5.500%, 2/25/35 		        98       103
Bayview Opportunity Master Fund IVa Trust      
2016-SPL1, B1 144A
4.250%, 4/28/55(3) 		       510       526
2017-SPL5, B1 144A
4.000%, 6/28/57(3)(5) 		       100       103
Bayview Opportunity Master Fund IVb Trust 2016-SPL2, B1 144A
4.250%, 6/28/53(3)(5) 		       245       254
BBCMS Mortgage Trust 2018-TALL, A (1 month LIBOR + 0.722%, Cap N/A, Floor 0.722%) 144A
0.806%, 3/15/37(3)(5) 		       800       798
BPR Trust 2021-KEN, A (1 month LIBOR + 1.250%, Cap N/A, Floor 1.250%) 144A
1.334%, 2/15/29(3)(5) 		       920       920
BRAVO Residential Funding Trust 2021-A, A1 144A
1.991%, 1/25/24(3)(5) 		       421       421
BX Commercial Mortgage Trust 2020-BXLP, D (1 month LIBOR + 1.250%, Cap N/A, Floor 1.250%) 144A
1.334%, 12/15/36(3)(5) 		       419       419
BX Trust 2019-OC11, D 144A
4.075%, 12/9/41(3)(5) 		     1,379     1,457
Cascade MH Asset Trust 2021-MH1, A1 144A
1.753%, 2/25/46(3) 		     1,257     1,256
CF Hippolyta LLC 2020-1, A1 144A
1.690%, 7/15/60(3) 		       403       409
CHL Mortgage Pass-Through Trust 2004-6, 1A2
2.076%, 5/25/34(5) 		       128       129
Citigroup Mortgage Loan Trust, Inc.      
2015-A, A1 144A
3.500%, 6/25/58(3)(5) 		         4         4
2018-RP1, A1 144A
3.000%, 9/25/64(3)(5) 		       589       604
  Par Value   Value
       
Non-Agency—continued    
COLT Mortgage Loan Trust Funding LLC 2020-1, A1 144A
2.488%, 2/25/50(3)(5) 		$         156   $    156
COLT Trust 2020-RPL1, A1 144A
1.390%, 1/25/65(3)(5) 		       180       180
COMM Mortgage Trust 2020-CBM, B 144A
3.099%, 2/10/37(3) 		       490       503
CoreVest American Finance Issuer LLC 2021-RTL1, A1 144A
2.239%, 3/26/29(3)(5) 		       290       291
Corevest American Finance Trust 2020-1, A1 144A
1.832%, 3/15/50(3) 		       490       497
CoreVest American Finance Trust      
2019-3, C 144A
3.265%, 10/15/52(3) 		       295       306
2018-2, A 144A
4.026%, 11/15/52(3) 		       413       432
2020-4, A 144A
1.174%, 12/15/52(3) 		       590       584
2020-3, A 144A
1.358%, 8/15/53(3) 		       695       689
Credit Suisse Mortgage Capital Certificates 2019-ICE4, A (1 month LIBOR + 0.980%, Cap N/A, Floor 0.980%) 144A
1.064%, 5/15/36(3)(5) 		       530       532
Credit Suisse Mortgage Capital Trust      
2014-IVR2, A2 144A
3.819%, 4/25/44(3)(5) 		        13        13
2017-RPL1, A1 144A
2.750%, 7/25/57(3)(5) 		       580       599
2020-RPL4, A1 144A
2.000%, 1/25/60(3)(5) 		       395       403
2021-NQM1, A1 144A
0.809%, 5/25/65(3)(5) 		       245       245
2020-NQM1, A1 144A
1.208%, 5/25/65(3)(5) 		       162       163
2021-NQM2, A1 144A
1.179%, 2/25/66(3)(5) 		       614       615
Dominion Mortgage Trust 2021-RTL1, A1 144A
2.487%, 7/25/27(3)(5) 		       875       878
Ellington Financial Mortgage Trust      
2019-2, A3 144A
3.046%, 11/25/59(3)(5) 		        78        79
2021-2, A3 144A
1.291%, 6/25/66(3)(5) 		       779       780
  Par Value   Value
       
Non-Agency—continued    
FirstKey Homes Trust      
2020-SFR2, B 144A
1.567%, 10/19/37(3) 		$         645   $    645
2021-SFR1, D 144A
2.189%, 8/17/38(3) 		       880       876
Flagstar Mortgage Trust 2017-1, 1A3 144A
3.500%, 3/25/47(3)(5) 		       154       156
Galton Funding Mortgage Trust      
2017-1, A21 144A
3.500%, 7/25/56(3)(5) 		        44        44
2018-1, A23 144A
3.500%, 11/25/57(3)(5) 		        49        50
2019-H1, A1 144A
2.657%, 10/25/59(3)(5) 		        35        36
2020-H1, A1 144A
2.310%, 1/25/60(3)(5) 		       172       174
GCAT LLC 2019-NQM1, A1 144A
2.985%, 2/25/59(3)(5) 		       125       125
GCAT Trust 2020-NQM1, A1 144A
2.247%, 1/25/60(3)(5) 		        84        85
GCT Commercial Mortgage Trust 2021-GCT, A (1 month LIBOR + 0.800%, Cap N/A, Floor 0.800%) 144A
0.884%, 2/15/38(3)(5) 		     1,080     1,081
GS Mortgage Securities Trust      
2012-ALOH, A 144A
3.551%, 4/10/34(3) 		       187       188
2020-GC45, AS
3.173%, 2/13/53(5) 		       565       599
GS Mortgage-Backed Securities Trust 2020-NQM1, A3 144A
2.352%, 9/27/60(3)(5) 		       411       416
Hilton USA Trust 2016-SFP, B 144A
3.323%, 11/5/35(3) 		       500       501
Home Partners of America Trust 2020-2, A 144A
1.532%, 1/17/41(3) 		       558       550
Homeward Opportunities Fund I Trust 2018-2, A1 144A
3.985%, 11/25/58(3)(5) 		     1,443     1,462
JPMorgan Chase (WaMu) Mortgage Pass-Through Certificates 2003-S11, 3A5
5.950%, 11/25/33 		        99       102
See Notes to Financial Statements
60

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Non-Agency—continued    
JPMorgan Chase Mortgage Trust      
2014-2, 2A2 144A
3.500%, 6/25/29(3)(5) 		$        32   $     33
2014-1, 2A12 144A
3.500%, 1/25/44(3)(5) 		        27        27
2016-SH1, M2 144A
3.750%, 4/25/45(3)(5) 		       223       226
2016-SH2, M2 144A
3.750%, 12/25/45(3)(5) 		       411       419
2017-1, A2 144A
3.480%, 1/25/47(3)(5) 		       165       167
2017-3, 2A2 144A
2.500%, 8/25/47(3)(5) 		        75        76
2017-5, A1 144A
3.090%, 10/26/48(3)(5) 		       247       253
2017-4, A3 144A
3.500%, 11/25/48(3)(5) 		       370       374
KKR Industrial Portfolio Trust 2021-KDIP, C (1 month LIBOR + 1.000%, Cap N/A, Floor 1.000%) 144A
1.084%, 12/15/37(3)(5) 		       870       870
KNDL Mortgage Trust 2019-KNSQ, A (1 month LIBOR + 0.800%, Cap N/A, Floor 0.800%) 144A
0.884%, 5/15/36(3)(5) 		       565       566
LHOME Mortgage Trust      
2021-RTL2, A1 144A
2.090%, 6/25/26(3)(5) 		       295       295
2021-RTL1, A1 144A
2.090%, 9/25/26(3)(5) 		       480       479
Mello Warehouse Securitization Trust      
2021-1, C (1 month LIBOR + 1.100%, Cap N/A, Floor 1.100%) 144A
1.184%, 2/25/55(3)(5) 		       400       399
2021-2, C (1 month LIBOR + 1.100%, Cap N/A, Floor 1.100%) 144A
1.186%, 4/25/55(3)(5) 		       180       180
MetLife Securitization Trust      
2017-1A, M1 144A
3.480%, 4/25/55(3)(5) 		       860       897
2019-1A, A1A 144A
3.750%, 4/25/58(3)(5) 		       313       322
Mill City Mortgage Loan Trust      
2017-1, M2 144A
3.250%, 11/25/58(3)(5) 		       395       410
2019-1, M2 144A
3.500%, 10/25/69(3)(5) 		       509       542
Morgan Stanley - Bank of America (Merrill Lynch) Trust 2013-C13, AS
4.266%, 11/15/46 		       275       291
  Par Value   Value
       
Non-Agency—continued    
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C22, AS
3.561%, 4/15/48 		$           835   $    878
New Residential Mortgage Loan Trust      
2014-1A, A 144A
3.750%, 1/25/54(3)(5) 		       224       235
2015-2A, A1 144A
3.750%, 8/25/55(3)(5) 		       143       151
2016-1A, A1 144A
3.750%, 3/25/56(3)(5) 		        70        75
2016-3A, B1 144A
4.000%, 9/25/56(3)(5) 		       408       433
2016-4A, A1 144A
3.750%, 11/25/56(3)(5) 		        52        55
2016-4A, B1A 144A
4.500%, 11/25/56(3)(5) 		       526       571
2017-2A, A3 144A
4.000%, 3/25/57(3)(5) 		       110       117
2021-NQ2R, A1 144A
0.941%, 10/25/58(3)(5) 		       325       325
2019-NQM4, A1 144A
2.492%, 9/25/59(3)(5) 		       108       109
2020-1A, A1B 144A
3.500%, 10/25/59(3)(5) 		       629       657
NewRez Warehouse Securitization Trust 2021-1, C (1 month LIBOR + 1.050%, Cap N/A, Floor 1.050%) 144A
1.136%, 5/25/55(3)(5) 		       120       120
NLT Trust 2021-INV2, A1 144A
1.162%, 8/25/56(3)(5) 		       525       526
NovaStar Mortgage Funding Trust 2004-4, M5 (1 month LIBOR + 1.725%, Cap 11.00%, Floor 1.725%)
1.811%, 3/25/35(5) 		        17        17
OBX Trust      
2019-INV1, A3 144A
4.500%, 11/25/48(3)(5) 		       141       144
2018-EXP2, 1A1 144A
4.000%, 7/25/58(3)(5) 		        29        29
2021-NQM3, A2 144A
1.260%, 7/25/61(3)(5) 		       718       717
Preston Ridge Partners Mortgage LLC      
2020-2, A1 144A
3.671%, 8/25/25(3)(5) 		       171       172
2020-3, A1 144A
2.857%, 9/25/25(3)(5) 		       932       934
2020-6, A1 144A
2.363%, 11/25/25(3)(5) 		       962       968
2021-2, A1 144A
2.115%, 3/25/26(3)(5) 		     1,196     1,198
2021-3, A1 144A
1.867%, 4/25/26(3)(5) 		       554       557
  Par Value   Value
       
Non-Agency—continued    
2021-RPL1, A1 144A
1.319%, 7/25/51(3)(5) 		$            225   $    225
Pretium Mortgage Credit Partners I LLC      
2020-NPL3, A1 144A
3.105%, 6/27/60(3)(5) 		       853       853
2021-NPL1, A1 144A
2.240%, 9/27/60(3)(5) 		       453       453
Progress Residential Trust      
2021-SFR3, D 144A
2.288%, 5/17/26(3) 		       450       450
2019-SFR2, A 144A
3.147%, 5/17/36(3) 		       387       390
2019-SFR3, B 144A
2.571%, 9/17/36(3) 		       460       466
2021-SFR2, D 144A
2.197%, 4/19/38(3) 		       750       748
2021-SFR6, C 144A
1.855%, 7/17/38(3) 		       145       144
Provident Funding Mortgage Trust 2019-1, A2 144A
3.000%, 12/25/49(3)(5) 		       333       336
RCKT Mortgage Trust 2020-1, A1 144A
3.000%, 2/25/50(3)(5) 		       471       480
RCO VII Mortgage LLC 2021-2, A1 144A
2.116%, 9/25/26(3)(5) 		       530       530
Residential Mortgage Loan Trust 2019-2, A1 144A
2.913%, 5/25/59(3)(5) 		       222       225
Sequoia Mortgage Trust 2013-8, B1
3.498%, 6/25/43(5) 		       100       101
SG Residential Mortgage Trust 2019-3, A1 144A
2.703%, 9/25/59(3)(5) 		       335       336
Starwood Mortgage Residential Trust      
2021-3, A3 144A
1.518%, 6/25/56(3)(5) 		       276       275
2020-2, A1 144A
2.718%, 4/25/60(3)(5) 		       227       229
2020-3, A1 144A
1.486%, 4/25/65(3)(5) 		       256       257
Towd Point Mortgage Trust      
2016-1, M1 144A
3.500%, 2/25/55(3)(5) 		       160       164
2016-3, M1 144A
3.500%, 4/25/56(3)(5) 		     1,080     1,118
2016-4, B1 144A
3.826%, 7/25/56(3)(5) 		       585       632
2017-4, A2 144A
3.000%, 6/25/57(3)(5) 		       670       699
2019-1, A1 144A
3.705%, 3/25/58(3)(5) 		       548       577
2018-6, A1B 144A
3.750%, 3/25/58(3)(5) 		       420       443
2018-6, A2 144A
3.750%, 3/25/58(3)(5) 		     1,270     1,339
See Notes to Financial Statements
61

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Non-Agency—continued    
2019-2, A2 144A
3.750%, 12/25/58(3)(5) 		$       500   $    533
2019-4, A2 144A
3.250%, 10/25/59(3)(5) 		       650       690
2020-MH1, A2 144A
2.500%, 2/25/60(3)(5) 		     1,115     1,115
2015-2, 1M1 144A
3.250%, 11/25/60(3)(5) 		       585       597
Towd Point Trust 2019-HE1, A1 (1 month LIBOR + 0.900%) 144A
0.986%, 4/25/48(3)(5) 		       313       313
Tricon American Homes Trust      
2019-SFR1, C 144A
3.149%, 3/17/38(3) 		       435       448
2020-SFR2, D 144A
2.281%, 11/17/39(3) 		       880       865
TVC Mortgage Trust 2020-RTL1, M 144A
5.193%, 9/25/24(3)(5) 		       510       508
VCAT LLC      
2021-NPL1, A2 144A
4.826%, 12/26/50(3)(5) 		       620       620
2021-NPL2, A1 144A
2.115%, 3/27/51(3)(5) 		       384       385
2021-NPL3, A1 144A
1.743%, 5/25/51(3)(5) 		       432       432
2021-NPL4, A1 144A
1.868%, 8/25/51(3)(5) 		       857       856
2021-NPL5, A1 144A
1.868%, 8/25/61(3)(5) 		       290       290
Vericrest Opportunity Loan Trust C LLC 2021-NPL9, A1 144A
1.992%, 5/25/51(3)(5) 		       327       327
Vericrest Opportunity Loan Trust XCII LLC 2021-NPL1, A1 144A
1.893%, 2/27/51(3)(5) 		       640       640
Verus Securitization Trust      
2019-INV2, A1 144A
2.913%, 7/25/59(3)(5) 		       198       200
2019-4, M1 144A
3.207%, 11/25/59(3)(5) 		       280       284
Visio Trust      
2020-1R, A2 144A
1.567%, 11/25/55(3) 		       309       311
2021-1R, A1 144A
1.280%, 5/25/56(3) 		       386       388
Wells Fargo Commercial Mortgage Trust 2014-C24, AS
3.931%, 11/15/47 		       265       281
  Par Value   Value
       
Non-Agency—continued    
Wells Fargo Mortgage Backed Securities Trust 2020-4, A1 144A
3.000%, 7/25/50(3)(5) 		$             151   $     153
ZH Trust 2021-1, A 144A
2.253%, 2/18/27(3) 		       265       265
       70,803
Total Mortgage-Backed Securities
(Identified Cost $72,772) 		   73,462
 
Asset-Backed Securities—3.4%
Automobiles—2.0%    
American Credit Acceptance Receivables Trust      
2019-2, C 144A
3.170%, 6/12/25(3) 		       280       282
2021-2, C 144A
0.970%, 7/13/27(3) 		       900       902
AmeriCredit Automobile Receivables Trust 2020-3, C
1.060%, 8/18/26 		     1,245     1,253
Carvana Auto Receivables Trust      
2019-3A, D 144A
3.040%, 4/15/25(3) 		       575       592
2020-P1, B
0.920%, 11/9/26 		       775       768
2021-N3, D
1.580%, 6/12/28 		       585       584
CIG Auto Receivables Trust 2020-1A, E 144A
4.430%, 2/12/27(3) 		       545       558
CPS Auto Receivables Trust 2020-C, C 144A
1.710%, 8/17/26(3) 		       540       547
Credit Acceptance Auto Loan Trust 2020-3A, B 144A
1.770%, 12/17/29(3) 		       540       547
Drive Auto Receivables Trust 2019-4, C
2.510%, 11/17/25 		       580       585
Exeter Automobile Receivables Trust      
2019-2A, C 144A
3.300%, 3/15/24(3) 		       325       328
2019-4A, C 144A
2.440%, 9/16/24(3) 		       690       696
2018-4A, D 144A
4.350%, 9/16/24(3) 		       160       165
  Par Value   Value
       
Automobiles—continued    
2019-1A, D 144A
4.130%, 12/16/24(3) 		$            155   $    159
First Investors Auto Owner Trust 2021-1A, C 144A
1.170%, 3/15/27(3) 		       790       788
Flagship Credit Auto Trust      
2020-3, C 144A
1.730%, 9/15/26(3) 		       540       549
2020-4, C 144A
1.280%, 2/16/27(3) 		       965       972
Foursight Capital Automobile Receivables Trust 2019-1, E 144A
4.300%, 9/15/25(3) 		       745       774
GLS Auto Receivables Issuer Trust      
2019-4A, C 144A
3.060%, 8/15/25(3) 		       745       765
2020-4A, C 144A
1.140%, 11/17/25(3) 		       930       935
GLS Auto Receivables Trust      
2018-1A, B 144A
3.520%, 8/15/23(3) 		        47        47
2018-3A, C 144A
4.180%, 7/15/24(3) 		       640       654
OneMain Direct Auto Receivables Trust 2018-1A, C 144A
3.850%, 10/14/25(3) 		       355       357
Oscar US Funding XII LLC 2021-1A, A4 144A
1.000%, 4/10/28(3) 		       550       546
Santander Drive Auto Receivables Trust      
2020-4, C
1.010%, 1/15/26 		     1,390     1,399
2021-3, C
0.950%, 9/15/27 		       880       882
Skopos Auto Receivables Trust 2019-1A, C 144A
3.630%, 9/16/24(3) 		       575       584
United Auto Credit Securitization Trust      
2019-1, D 144A
3.470%, 8/12/24(3) 		       296       297
2021-1, C 144A
0.840%, 6/10/26(3) 		       900       900
Veros Automobile Receivables Trust 2020-1, B 144A
2.190%, 6/16/25(3) 		       585       589
       19,004
       
 
See Notes to Financial Statements
62

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Credit Card—0.3%    
Avant Credit Card Master Trust 2021-1A, A 144A
1.370%, 4/15/27(3) 		$       730   $    729
Fair Square Issuance Trust 2020-AA, A 144A
2.900%, 9/20/24(3) 		       645       649
Genesis Private Label Amortizing Trust 2020-1, B 144A
2.830%, 7/20/30(3) 		       535       535
Genesis Sales Finance Master Trust 2020-AA, A 144A
1.650%, 9/22/25(3) 		       775       780
        2,693
       
 
Other—1.1%    
Aqua Finance Trust      
2017-A, A 144A
3.720%, 11/15/35(3) 		        36        38
2019-A, C 144A
4.010%, 7/16/40(3) 		       720       748
2020-AA, B 144A
2.790%, 7/17/46(3) 		       755       769
Arby’s Funding LLC 2020-1A, A2 144A
3.237%, 7/30/50(3) 		       535       554
Bankers Healthcare Group Securitization Trust 2020-A, A 144A
2.560%, 9/17/31(3) 		       325       330
Consumer Loan Underlying Bond Credit Trust 2019-P1, B 144A
3.280%, 7/15/26(3) 		       409       412
Diamond Resorts Owner Trust      
2017-1A, A 144A
3.270%, 10/22/29(3) 		        77        78
2021-1A, A 144A
1.510%, 11/21/33(3) 		       490       491
Foundation Finance Trust      
2017-1A, A 144A
3.300%, 7/15/33(3) 		       410       414
2021-1A, A 144A
1.270%, 5/15/41(3) 		       633       630
Jersey Mike’s Funding 2019-1A, A2 144A
4.433%, 2/15/50(3) 		       520       552
Lendmark Funding Trust 2018-2A, A 144A
4.230%, 4/20/27(3) 		       160       160
Mariner Finance Issuance Trust 2020-AA, A 144A
2.190%, 8/21/34(3) 		       555       567
  Par Value   Value
       
Other—continued    
MVW LLC 2020-1A, A 144A
1.740%, 10/20/37(3) 		$          291   $     294
MVW Owner Trust 2016-1A, A 144A
2.250%, 12/20/33(3) 		        86        87
Navient Private Education Refi Loan Trust 2021-EA, A 144A
0.970%, 12/16/69(3) 		       864       861
NBC Funding LLC 2021-1, A2 144A
2.989%, 7/30/51(3) 		       590       594
Oasis LLC 2020-1A, A 144A
3.820%, 1/15/32(3) 		       155       156
Octane Receivables Trust      
2019-1A, A 144A
3.160%, 9/20/23(3) 		        99        99
2020-1A, A 144A
1.710%, 2/20/25(3) 		       338       341
OneMain Financial Issuance Trust 2018-1A, A 144A
3.300%, 3/14/29(3) 		       225       226
Orange Lake Timeshare Trust 2019-A, B 144A
3.360%, 4/9/38(3) 		       315       324
Purchasing Power Funding LLC 2021-A, A 144A
1.570%, 10/15/25(3) 		       900       902
Trinity Rail Leasing LLC 2019-1A, A 144A
3.820%, 4/17/49(3) 		       350       363
Westgate Resorts LLC 2020-1A, A 144A
2.713%, 3/20/34(3) 		       553       563
       10,553
Total Asset-Backed Securities
(Identified Cost $32,010) 		   32,250
 
Corporate Bonds and Notes—10.4%
Communication Services—0.5%    
Cable Onda S.A. 144A
4.500%, 1/30/30(3) 		       460       483
CCO Holdings LLC 144A
4.750%, 3/1/30(3) 		       290       303
CommScope, Inc. 144A
4.750%, 9/1/29(3) 		        60        60
Diamond Sports Group LLC 144A
5.375%, 8/15/26(3)(6) 		       255       168
  Par Value   Value
       
Communication Services—continued    
DIRECTV Holdings LLC 144A
5.875%, 8/15/27(3) 		$            145   $    151
DISH DBS Corp.      
5.000%, 3/15/23        300       311
7.750%, 7/1/26        180       203
Level 3 Financing, Inc. 144A
4.250%, 7/1/28(3) 		       650       655
Live Nation Entertainment, Inc. 144A
4.750%, 10/15/27(3)(6) 		        80        81
Radiate Holdco LLC 144A
4.500%, 9/15/26(3) 		       150       155
Sprint Spectrum Co. LLC 144A
4.738%, 3/20/25(3) 		       525       561
T-Mobile USA, Inc.
3.875%, 4/15/30 		       865       955
TripAdvisor, Inc. 144A
7.000%, 7/15/25(3) 		       445       472
Verizon Communications, Inc.
2.550%, 3/21/31 		       419       424
        4,982
       
 
Consumer Discretionary—0.8%    
American Builders & Contractors Supply Co., Inc. 144A
4.000%, 1/15/28(3) 		       590       602
Aramark Services, Inc. 144A
6.375%, 5/1/25(3) 		       290       305
Brunswick Corp.
2.400%, 8/18/31 		       537       519
Carriage Services, Inc. 144A
4.250%, 5/15/29(3) 		       215       215
Ford Motor Co.
9.000%, 4/22/25 		       652       784
Gap, Inc. (The) 144A
3.875%, 10/1/31(3) 		       335       335
Gateway Casinos & Entertainment Ltd. 144A
8.250%, 3/1/24(3) 		       385       391
Hanesbrands, Inc. 144A
5.375%, 5/15/25(3) 		       560       586
Hilton Grand Vacations Borrower Escrow LLC 144A
5.000%, 6/1/29(3) 		       145       148
M/I Homes, Inc.
4.950%, 2/1/28 		       435       455
See Notes to Financial Statements
63

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Consumer Discretionary—continued    
Marriott International, Inc. Series HH
2.850%, 4/15/31 		$        82   $     83
Marriott Ownership Resorts, Inc.
4.750%, 1/15/28 		       335       342
PulteGroup, Inc.
6.375%, 5/15/33 		       780     1,025
QVC, Inc.
4.375%, 3/15/23 		       440       459
Scientific Games International, Inc.      
144A 5.000%, 10/15/25(3)        370       381
144A 8.250%, 3/15/26(3)        210       223
144A 7.000%, 5/15/28(3)         80        86
Tenneco, Inc. 144A
5.125%, 4/15/29(3) 		       540       552
        7,491
       
 
Consumer Staples—0.3%    
Albertsons Cos., Inc.      
144A 4.625%, 1/15/27(3)        455       477
144A 3.500%, 3/15/29(3)         60        60
Anheuser-Busch InBev Worldwide, Inc.      
4.000%, 4/13/28        520       587
4.750%, 1/23/29        130       153
Bacardi Ltd. 144A
4.700%, 5/15/28(3) 		       520       601
BAT Capital Corp.
4.906%, 4/2/30 		       705       807
Vector Group Ltd. 144A
5.750%, 2/1/29(3) 		       585       585
        3,270
       
 
Energy—1.2%    
Alliance Resource Operating Partners LP 144A
7.500%, 5/1/25(3) 		       460       467
Boardwalk Pipelines LP
4.950%, 12/15/24 		       550       609
Cheniere Energy Partners LP 144A
3.250%, 1/31/32(3) 		       420       421
Cheniere Energy, Inc.
4.625%, 10/15/28 		       235       248
CNX Midstream Partners LP 144A
4.750%, 4/15/30(3) 		        25        25
CrownRock LP      
144A 5.625%, 10/15/25(3)        345       353
144A 5.000%, 5/1/29(3)        300       313
  Par Value   Value
       
Energy—continued    
Energy Transfer LP Series H
6.500% (7) 		$             590   $    614
EQM Midstream Partners LP      
144A 6.000%, 7/1/25(3)         55        60
144A 6.500%, 7/1/27(3)         65        73
144A 4.750%, 1/15/31(3)        140       146
Flex Intermediate Holdco LLC 144A
3.363%, 6/30/31(3) 		       785       796
HollyFrontier Corp.
5.875%, 4/1/26 		       630       723
Kinder Morgan Energy Partners LP
7.500%, 11/15/40 		       445       657
Lundin Energy Finance B.V. 144A
2.000%, 7/15/26(3) 		       740       744
Occidental Petroleum Corp.
5.500%, 12/1/25 		        15        17
Odebrecht Oil & Gas Finance Ltd. 144A
0.000% (3)(4)(7) 		        25        — (8)
Parsley Energy LLC 144A
4.125%, 2/15/28(3) 		       330       345
Patterson-UTI Energy, Inc.
5.150%, 11/15/29 		       350       359
Pertamina Persero PT 144A
6.450%, 5/30/44(3) 		       980     1,277
Petroleos de Venezuela S.A. 144A
6.000%, 5/16/24(1)(3) 		       255        15
Petroleos Mexicanos      
6.500%, 3/13/27        350       370
7.690%, 1/23/50        560       530
Petronas Capital Ltd. 144A
3.500%, 4/21/30(3) 		       530       574
Sabine Pass Liquefaction LLC
4.200%, 3/15/28 		       210       235
Southwestern Energy Co. 144A
5.375%, 2/1/29(3) 		       230       246
Targa Resources Partners LP
5.875%, 4/15/26 		       430       449
Transocean Guardian Ltd. 144A
5.875%, 1/15/24(3) 		        91        90
Venture Global Calcasieu Pass LLC 144A
3.875%, 8/15/29(3) 		       315       325
       11,081
       
 
Financials—3.9%    
AerCap Ireland Capital DAC
3.650%, 7/21/27 		       390       414
  Par Value   Value
       
Financials—continued    
Allstate Corp. (The) Series B
5.750%, 8/15/53 		$            565   $    611
Ally Financial, Inc. Series B
4.700% (7) 		       628       654
Ares Finance Co. LLC 144A
4.000%, 10/8/24(3) 		       705       751
Ascot Group Ltd. 144A
4.250%, 12/15/30(3) 		       745       790
Athene Global Funding 144A
2.450%, 8/20/27(3) 		       775       800
Bank of America Corp.      
2.687%, 4/22/32      1,725     1,757
2.482%, 9/21/36        750       735
(3 month LIBOR + 0.770%)
0.891%, 2/5/26(5) 		       640       649
Bank of New York Mellon Corp. (The) Series G
4.700% (7) 		       710       779
BBVA Bancomer S.A. 144A
5.125%, 1/18/33(3) 		       540       563
Blackstone Private Credit Fund 144A
2.625%, 12/15/26(3) 		       305       304
Blue Owl Finance LLC 144A
3.125%, 6/10/31(3) 		       740       732
Brighthouse Financial, Inc.
5.625%, 5/15/30 		       648       782
Brookfield Finance, Inc.
2.724%, 4/15/31 		     1,200     1,227
Burford Capital Global Finance LLC 144A
6.250%, 4/15/28(3) 		       200       212
Capital One Financial Corp.
2.359%, 7/29/32 		       573       561
Charles Schwab Corp. (The) Series H
4.000% (7) 		       775       799
Citadel LP 144A
4.875%, 1/15/27(3) 		       565       610
Citigroup, Inc.      
3.200%, 10/21/26        525       566
(3 month LIBOR + 1.250%)
1.381%, 7/1/26(5) 		     1,200     1,238
Coinbase Global, Inc. 144A
3.625%, 10/1/31(3) 		       600       570
Discover Bank
4.682%, 8/9/28 		     1,435     1,527
Drawbridge Special Opportunities Fund LP 144A
3.875%, 2/15/26(3) 		       770       791
Fairfax Financial Holdings Ltd.
4.850%, 4/17/28 		       585       668
See Notes to Financial Statements
64

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Financials—continued    
Goldman Sachs Group, Inc. (The) (3 month LIBOR + 1.170%)
1.295%, 5/15/26(5) 		$       685   $    702
Icahn Enterprises LP
6.250%, 5/15/26 		       710       742
Jefferies Group LLC
4.850%, 1/15/27 		       340       394
JPMorgan Chase & Co.
1.953%, 2/4/32 		     1,445     1,394
Ladder Capital Finance Holdings LLLP 144A
4.250%, 2/1/27(3) 		       490       485
Liberty Mutual Group, Inc.      
144A 4.569%, 2/1/29(3)        627       729
144A 4.125%, 12/15/51(3)        600       617
Lincoln National Corp. (3 month LIBOR + 2.040%)
2.174%, 4/20/67(5) 		       615       548
MetLife, Inc. Series G
3.850% (7) 		       695       726
Morgan Stanley      
3.125%, 7/27/26      1,080     1,162
6.375%, 7/24/42        580       878
Nippon Life Insurance Co. 144A
2.900%, 9/16/51(3) 		       390       385
OneMain Finance Corp.      
6.875%, 3/15/25        330       371
7.125%, 3/15/26        135       156
Prudential Financial, Inc.      
5.875%, 9/15/42        285       296
5.625%, 6/15/43        720       766
Santander Holdings USA, Inc.
4.400%, 7/13/27 		       640       719
Societe Generale S.A. 144A
4.750%, 11/24/25(3) 		       535       594
Synovus Financial Corp.
5.900%, 2/7/29 		       300       323
Texas Capital Bancshares, Inc.
4.000%, 5/6/31 		       890       926
Toronto-Dominion Bank (The)
3.625%, 9/15/31 		       725       797
UBS AG
7.625%, 8/17/22 		     1,430     1,515
Wells Fargo & Co.      
2.393%, 6/2/28      1,310     1,351
Series BB
3.900%(7) 		     1,155     1,191
Zions Bancorp NA
3.250%, 10/29/29 		       405       421
       37,278
       
 
  Par Value   Value
       
Health Care—0.6%    
Anthem, Inc.
2.875%, 9/15/29 		$           565   $           595
Bausch Health Cos., Inc. 144A
5.750%, 8/15/27(3) 		       200       210
Centene Corp.
4.625%, 12/15/29 		       220       240
DaVita, Inc. 144A
4.625%, 6/1/30(3) 		       565       581
HCA, Inc.
5.250%, 6/15/49 		       415       530
Illumina, Inc.
2.550%, 3/23/31 		       370       373
Jaguar Holding Co. II 144A
5.000%, 6/15/28(3) 		       285       307
Legacy LifePoint Health LLC 144A
4.375%, 2/15/27(3) 		       305       304
Mozart Debt Merger Sub, Inc. 144A
3.875%, 4/1/29(3) 		       155       155
Par Pharmaceutical, Inc. 144A
7.500%, 4/1/27(3) 		       215       219
Prime Healthcare Services, Inc. 144A
7.250%, 11/1/25(3) 		        35        38
Surgery Center Holdings, Inc. 144A
6.750%, 7/1/25(3) 		        15        15
Tenet Healthcare Corp. 144A
7.500%, 4/1/25(3) 		        50        53
Teva Pharmaceutical Finance Netherlands III B.V.
3.150%, 10/1/26 		       515       493
Universal Health Services, Inc. 144A
2.650%, 1/15/32(3) 		       490       485
Utah Acquisition Sub, Inc.
3.950%, 6/15/26 		       535       589
Viatris, Inc. 144A
2.300%, 6/22/27(3) 		       481       492
        5,679
       
 
Industrials—0.8%    
American Airlines, Inc. 144A
5.750%, 4/20/29(3) 		       185       199
Ashtead Capital, Inc. 144A
4.375%, 8/15/27(3) 		       905       949
Aviation Capital Group LLC 144A
3.500%, 11/1/27(3) 		       560       590
Avolon Holdings Funding Ltd. 144A
4.375%, 5/1/26(3) 		       565       610
  Par Value   Value
       
Industrials—continued    
Boeing Co. (The)
5.150%, 5/1/30 		$       415   $    487
British Airways Pass-Through Trust 2021-1, A 144A
2.900%, 3/15/35(3) 		       610       613
Dycom Industries, Inc. 144A
4.500%, 4/15/29(3) 		       230       231
Fortress Transportation and Infrastructure Investors LLC 144A
6.500%, 10/1/25(3) 		        35        36
GFL Environmental, Inc.      
144A 3.750%, 8/1/25(3)        460       473
144A 4.000%, 8/1/28(3)        440       437
Huntington Ingalls Industries, Inc. 144A
2.043%, 8/16/28(3) 		       778       768
Kazakhstan Temir Zholy Finance BV 144A
6.950%, 7/10/42(3) 		       440       603
Spirit AeroSystems, Inc. 144A
5.500%, 1/15/25(3) 		       595       629
TransDigm, Inc.
5.500%, 11/15/27 		       305       313
United Airlines, Inc. 144A
4.625%, 4/15/29(3) 		       425       439
        7,377
       
 
Information Technology—0.9%    
Broadcom, Inc.      
4.150%, 11/15/30        712       789
144A 2.450%, 2/15/31(3)        388       376
144A 3.187%, 11/15/36(3)         38        38
Citrix Systems, Inc.
3.300%, 3/1/30 		       975       996
Consensus Cloud Solutions, Inc.      
144A 6.000%, 10/15/26(3)         60        62
144A 6.500%, 10/15/28(3)         85        88
Dell International LLC
8.100%, 7/15/36 		       210       318
Flex Ltd.
3.750%, 2/1/26 		       555       604
HP, Inc.
3.400%, 6/17/30 		       835       888
Leidos, Inc.
2.300%, 2/15/31 		       800       782
Motorola Solutions, Inc.      
4.600%, 2/23/28        517       596
4.600%, 5/23/29        265       308
See Notes to Financial Statements
65

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Information Technology—continued    
NCR Corp. 144A
5.125%, 4/15/29(3) 		$       350   $    361
Science Applications International Corp. 144A
4.875%, 4/1/28(3) 		       580       599
SK Hynix, Inc. 144A
1.500%, 1/19/26(3) 		       465       459
Square, Inc. 144A
3.500%, 6/1/31(3) 		       405       415
SYNNEX Corp. 144A
2.375%, 8/9/28(3) 		       905       896
Xerox Holdings Corp. 144A
5.500%, 8/15/28(3) 		       455       471
        9,046
       
 
Materials—0.7%    
Ardagh Metal Packaging Finance USA LLC 144A
4.000%, 9/1/29(3) 		       200       202
Ardagh Packaging Finance plc 144A
4.125%, 8/15/26(3) 		       610       633
Chemours Co. (The) 144A
5.750%, 11/15/28(3) 		       430       450
Cleveland-Cliffs, Inc. 144A
6.750%, 3/15/26(3) 		       570       608
Freeport-McMoRan, Inc.
5.450%, 3/15/43 		       475       585
Glencore Funding LLC 144A
2.850%, 4/27/31(3) 		       750       754
International Flavors & Fragrances, Inc. 144A
2.300%, 11/1/30(3) 		       635       630
Inversiones CMPC S.A. 144A
3.850%, 1/13/30(3) 		       870       920
Louisiana-Pacific Corp. 144A
3.625%, 3/15/29(3) 		       490       493
New Enterprise Stone & Lime Co., Inc. 144A
5.250%, 7/15/28(3) 		        10        10
Suzano Austria GmbH
2.500%, 9/15/28 		       295       287
Teck Resources Ltd.
6.125%, 10/1/35 		       540       700
        6,272
       
 
Real Estate—0.6%    
American Assets Trust LP
3.375%, 2/1/31 		       261       270
EPR Properties
4.750%, 12/15/26 		       865       947
  Par Value   Value
       
Real Estate—continued    
GLP Capital LP
5.750%, 6/1/28 		$              655   $     769
MPT Operating Partnership LP      
5.000%, 10/15/27        240       253
4.625%, 8/1/29        140       150
3.500%, 3/15/31        525       536
Office Properties Income Trust
4.500%, 2/1/25 		       555       595
Phillips Edison Grocery Center Operating Partnership I LP
2.625%, 11/15/31 		       380       376
Retail Opportunity Investments Partnership LP
4.000%, 12/15/24 		       485       518
Retail Properties of America, Inc.
4.750%, 9/15/30 		       780       858
Service Properties Trust
4.950%, 2/15/27 		       640       638
        5,910
       
 
Utilities—0.1%    
Perusahaan Listrik Negara PT 144A
4.125%, 5/15/27(3) 		       210       228
Puget Energy, Inc. 144A
2.379%, 6/15/28(3) 		       453       453
Southern Co. (The) Series A
3.750%, 9/15/51 		       794       809
        1,490
Total Corporate Bonds and Notes
(Identified Cost $96,000) 		   99,876
 
Leveraged Loans—3.0%
Aerospace—0.4%    
Air Canada (3 month LIBOR + 3.500%)
4.250%, 8/11/28(5) 		        78        78
American Airlines, Inc. (3 month LIBOR + 4.750%)
5.500%, 4/20/28(5) 		       455       470
Brown Group Holding LLC (3 month LIBOR + 2.750%)
3.250%, 6/7/28(5) 		       584       583
  Par Value   Value
       
Aerospace—continued    
Delta Air Lines, Inc. (3 month LIBOR + 3.750%)
0.000%, 10/20/27(5)(9) 		$             550   $    585
KKR Apple Bidco LLC (1 month LIBOR + 3.000%)
3.500%, 9/22/28(5) 		       585       584
Mileage Plus Holdings, LLC (3 month LIBOR + 5.250%)
6.250%, 6/21/27(5) 		       600       637
TransDigm, Inc. Tranche E (1 month LIBOR + 2.250%)
2.334%, 5/30/25(5) 		       673       665
        3,602
       
 
Chemicals—0.2%    
Ineos U.S. Finance LLC 2024 (3 month LIBOR + 2.000%)
2.084%, 4/1/24(5) 		       689       684
Ineos U.S. Petrochem LLC 2026, Tranche B (1 month LIBOR + 2.750%)
3.250%, 1/29/26(5) 		       459       459
Starfruit Finco B.V. (1 month LIBOR + 2.750%)
2.832%, 10/1/25(5) 		       526       523
Trinseo Materials Operating SCA 2021 (1 month LIBOR + 2.500%)
2.584%, 5/3/28(5) 		       484       482
        2,148
       
 
Consumer Durables—0.0%    
Resideo Funding, Inc. Tranche B (1 month LIBOR + 2.250%)
2.750%, 2/11/28(5) 		       298       298
Consumer Non-Durables—0.1%    
Diamond BC B.V. Tranche B (3 month LIBOR + 3.000%)
0.000%, 9/29/28(5)(9) 		       570       570
Energy—0.1%    
Buckeye Partners LP Tranche B, First Lien (1 month LIBOR + 2.250%)
2.334%, 11/1/26(5) 		       103       103
See Notes to Financial Statements
66

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Energy—continued    
Citgo Petroleum Corp. 2019, Tranche B (3 month LIBOR + 6.250%)
7.250%, 3/28/24(5) 		$       258   $    258
DT Midstream, Inc. (3 month LIBOR + 2.000%)
2.500%, 6/26/28(5) 		       160       159
Oryx Midstream Services Permian Basin LLC Tranche B (3 month LIBOR + 3.250%)
0.000%, 10/5/28(5)(9) 		       110       110
          630
       
 
Financial—0.1%    
Asurion LLC Tranche B-9 (1 month LIBOR + 3.250%)
3.334%, 7/31/27(5) 		       284       280
Avolon TLB Borrower 1 U.S. LLC Tranche B-5 (1 month LIBOR + 2.250%)
2.750%, 12/1/27(5) 		       308       308
Citadel Securities LP 2021 (1 month LIBOR + 2.500%)
2.584%, 2/2/28(5) 		       657       650
Zebra Buyer LLC (3 month LIBOR + 3.500%)
0.000%, 4/21/28(5)(9) 		        45        45
        1,283
       
 
Food / Tobacco—0.1%    
Aramark Services, Inc. Tranche B-4 (1 month LIBOR + 1.750%)
1.834%, 1/15/27(5) 		        93        91
CHG PPC Parent LLC First Lien (1 month LIBOR + 2.750%)
2.834%, 3/31/25(5) 		       179       178
Hostess Brands LLC 2019, Tranche B (1 month LIBOR + 2.250%)
3.000%, 8/3/25(5) 		       596       593
JBS USA Lux S.A. (1 month LIBOR + 2.000%)
2.084%, 5/1/26(5) 		       600       598
        1,460
       
 
Forest Prod / Containers—0.1%    
Berry Global, Inc. Tranche Z (2 month LIBOR + 1.750%)
1.856%, 7/1/26(5) 		       558       555
  Par Value   Value
       
Gaming / Leisure—0.2%    
Aristocrat Technologies, Inc. (3 month LIBOR + 3.750%)
4.750%, 10/19/24(5) 		$            287   $    288
Caesars Resort Collection LLC Tranche B (1 month LIBOR + 2.750%)
2.834%, 12/23/24(5) 		       612       608
Hilton Grand Vacations Borrower LLC (1 month LIBOR + 3.000%)
3.500%, 8/2/28(5) 		        80        80
Hilton Worldwide Finance LLC Tranche B-2 (1 month LIBOR + 1.750%)
1.833%, 6/22/26(5) 		       605       600
Pug LLC Tranche B (1 month LIBOR + 3.500%)
3.584%, 2/12/27(5) 		       275       269
Scientific Games International, Inc. Tranche B-5 (1 month LIBOR + 2.750%)
2.834%, 8/14/24(5) 		       294       293
Station Casinos LLC Tranche B-1 (1 month LIBOR + 2.250%)
2.500%, 2/8/27(5) 		       163       161
        2,299
       
 
Health Care—0.2%    
Agiliti Health, Inc. (3 month LIBOR + 2.750%)
0.000%, 1/4/26(5)(9) 		       165       164
Bausch Health Cos., Inc.      
(1 month LIBOR + 2.750%)
2.834%, 11/27/25(5) 		        93        92
(1 month LIBOR + 3.000%)
3.084%, 6/2/25(5) 		        46        46
IQVIA, Inc. Tranche B-3 (3 month LIBOR + 1.750%)
1.882%, 6/11/25(5) 		       347       347
LifePoint Health, Inc. Tranche B, First Lien (1 month LIBOR + 3.750%)
3.834%, 11/17/25(5) 		       435       434
Medline Borrower LP (3 month LIBOR + 3.250%)
0.000%, 10/23/28(5)(9) 		       170       169
Parexel International Corp. (3 month LIBOR + 3.500%)
0.000%, 8/11/28(5)(9) 		       100       100
  Par Value   Value
       
Health Care—continued    
PPD, Inc. (1 month LIBOR + 2.000%)
2.500%, 1/13/28(5) 		$            418   $    417
        1,769
       
 
Housing—0.2%    
CPG International LLC (3 month LIBOR + 2.500%)
3.250%, 5/6/24(5) 		       501       501
Quikrete Holdings, Inc. Tranche B-1 (3 month LIBOR + 3.000%)
0.000%, 1/31/27(5)(9) 		       435       433
Standard Industries, Inc. Tranche B (3 month LIBOR + 2.500%)
0.000%, 9/22/28(5)(9) 		       700       700
Summit Materials LLC Tranche B (1 month LIBOR + 2.000%)
2.084%, 11/21/24(5) 		       598       597
        2,231
       
 
Information Technology—0.3%    
Applied Systems, Inc.      
First Lien (3 month LIBOR + 3.250%)
3.750%, 9/19/24(5) 		       394       394
Second Lien (3 month LIBOR + 5.500%)
6.250%, 9/19/25(5) 		        54        55
Boxer Software 2nd 2021 (3 month LIBOR + 3.750%)
3.882%, 10/2/25(5) 		       550       547
CCC Intelligent Solutions, Inc. (3 month LIBOR + 2.500%)
3.000%, 9/21/28(5) 		        25        25
Sophia LP (3 month LIBOR + 3.750%)
3.882%, 10/7/27(5) 		       541       543
Tenable, Inc. (3 month LIBOR + 2.750%)
3.250%, 7/7/28(5) 		       620       618
UKG, Inc. 2021 (3 month LIBOR + 3.250%)
4.000%, 5/4/26(5) 		       268       268
        2,450
       
 
Manufacturing—0.2%    
Alliance Laundry Systems LLC Tranche B (3 month LIBOR + 3.500%)
4.250%, 10/8/27(5) 		       501       502
See Notes to Financial Statements
67

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Par Value   Value
       
Manufacturing—continued    
Gates Global LLC Tranche B-3 (1 month LIBOR + 2.500%)
3.250%, 3/31/27(5) 		$       596   $    594
Star U.S. Bidco LLC (1 month LIBOR + 4.250%)
5.250%, 3/17/27(5) 		       460       461
        1,557
       
 
Media / Telecom - Broadcasting—0.0%    
Nexstar Broadcasting, Inc. Tranche B-4 (1 month LIBOR + 2.500%)
2.586%, 9/18/26(5) 		       451       450
Media / Telecom - Cable/Wireless
Video—0.1% 		   
CSC Holdings LLC 2018 (1 month LIBOR + 2.250%)
2.334%, 1/15/26(5) 		       417       411
Radiate Holdco LLC Tranche B (1 month LIBOR + 3.500%)
4.250%, 9/25/26(5) 		        61        60
Virgin Media Bristol LLC Tranche Q (1 month LIBOR + 3.250%)
3.334%, 1/31/29(5) 		        70        70
          541
       
 
Media / Telecom - Diversified
Media—0.0% 		   
UPC Financing Partnership Tranche AX (1 month LIBOR + 3.000%)
3.084%, 1/31/29(5) 		       130       130
Media / Telecom -
Telecommunications—0.1% 		   
CenturyLink, Inc. Tranche B (1 month LIBOR + 2.250%)
2.334%, 3/15/27(5) 		       152       150
Consolidated Communications, Inc. Tranche B-1 (1 month LIBOR + 3.500%)
4.250%, 10/2/27(5) 		       104       104
Zayo Group Holdings, Inc. (1 month LIBOR + 3.000%)
3.084%, 3/9/27(5) 		       377       373
          627
       
 
  Par Value   Value
       
Media / Telecom - Wireless
Communications—0.1% 		   
SBA Senior Finance II LLC Tranche B (1 month LIBOR + 1.750%)
1.840%, 4/11/25(5) 		$            619   $    613
Retail—0.1%    
Harbor Freight Tools USA, Inc. 2021 (1 month LIBOR + 2.750%)
3.250%, 10/19/27(5) 		       610       610
PetsMart LLC (3 month LIBOR + 3.750%)
4.500%, 2/11/28(5) 		       300       300
          910
       
 
Service—0.3%    
AlixPartners LLP (1 month LIBOR + 2.750%)
3.250%, 2/4/28(5) 		       687       685
Dun & Bradstreet Corp. (The) Tranche B (1 month LIBOR + 3.250%)
3.336%, 2/6/26(5) 		       736       735
Peraton Corp. Tranche B, First Lien (1 month LIBOR + 3.750%)
4.500%, 2/1/28(5) 		       327       327
PODS LLC (1 month LIBOR + 3.000%)
3.750%, 3/31/28(5) 		       328       329
Sedgwick Claims Management Services, Inc. (1 month LIBOR + 3.250%)
3.334%, 12/31/25(5) 		       627       621
WEX, Inc. Tranche B (1 month LIBOR + 2.250%)
2.334%, 3/31/28(5) 		       582       579
        3,276
       
 
Transportation - Automotive—0.0%    
Cooper-Standard Automotive, Inc. Tranche B-1 (1 month LIBOR + 2.000%)
2.750%, 11/2/23(5) 		       491       468
Utility—0.1%    
Astoria Energy LLC Tranche B (3 month LIBOR + 3.500%)
4.500%, 12/10/27(5) 		       424       425
  Par Value   Value
       
Utility—continued    
Brookfield WEC Holdings, Inc. (1 month LIBOR + 2.750%)
3.250%, 8/1/25(5) 		$           620   $     616
        1,041
Total Leveraged Loans
(Identified Cost $28,858) 		   28,908
 
    
  Shares  
Preferred Stocks—0.3%
Financials—0.2%  
Discover Financial Services Series D, 6.125%        175 (10)     196
JPMorgan Chase & Co. Series HH, 4.600%        304 (10)     311
MetLife, Inc. Series D, 5.875%(6)        277 (10)     326
Truist Financial Corp. Series Q, 5.100%        680 (10)     782
Zions Bancorp NA, 6.950%      6,400     184
      1,799
     
 
Industrials—0.1%  
General Electric Co. Series D, 3.446%        725 (10)     709
Total Preferred Stocks
(Identified Cost $2,253) 		  2,508
 
Common Stocks—68.6%
Communication Services—10.6%  
Adevinta ASA Class B(11)    162,082   2,777
Ascential plc(11)    740,523   4,085
Auto Trader Group plc    688,962   5,433
Autohome, Inc. ADR     28,430   1,334
CTS Eventim AG & Co. KGaA(11)     24,308   1,829
Facebook, Inc. Class A(11)     87,948  29,849
Infrastrutture Wireless Italiane SpA    445,557   4,963
Karnov Group AB Class B    237,170   1,441
MarkLines Co., Ltd.     56,600   1,572
Netflix, Inc.(11)     29,800  18,188
New Work SE     13,557   3,320
Rightmove plc    701,548   6,445
Tencent Holdings Ltd. Unsponsored ADR    188,665  11,276
Yandex N.V. Class A(11)     37,249   2,968
See Notes to Financial Statements
68

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Shares   Value
       
Communication Services—continued    
ZoomInfo Technologies, Inc. Class A(11)     86,970   $  5,322
      100,802
       
 
Consumer Discretionary—12.9%    
Airbnb, Inc. Class A(11)     41,240     6,918
Alibaba Group Holding Ltd. Sponsored ADR(11)     85,245    12,621
Allegro.eu S.A.(11)    336,513     4,886
Amazon.com, Inc.(11)     12,144    39,895
Home Depot, Inc. (The)     20,942     6,874
Marriott International, Inc. Class A(11)     36,908     5,466
Max Stock Ltd.    572,792     2,043
MercadoLibre, Inc.(11)      7,967    13,380
Mercari, Inc.(11)     65,700     3,630
NIKE, Inc. Class B     90,471    13,139
Redbubble Ltd.(11)  1,176,280     3,671
Ross Stores, Inc.     58,645     6,384
Sonans Holding AS(11)    641,602     3,728
Vasta Platform Ltd. Class A(11)    215,022       980
      123,615
       
 
Consumer Staples—2.8%    
BIM Birlesik Magazalar AS    438,033     3,150
Estee Lauder Cos., Inc. (The) Class A     18,092     5,426
Heineken Malaysia Bhd    237,500     1,310
McCormick & Co., Inc.     46,639     3,779
Monster Beverage Corp.(11)     72,955     6,481
Procter & Gamble Co. (The)     48,682     6,806
       26,952
       
 
Energy—0.4%    
Frontera Energy Corp.(11)      1,798        11
Pason Systems, Inc.    498,219     3,390
        3,401
       
 
Financials—4.7%    
Bank of America Corp.    238,976    10,144
Cerved Group SpA(11)    124,491     1,469
CME Group, Inc. Class A     20,906     4,043
Gruppo Mutuionline SpA     73,090     3,608
Kaspi.KZ JSC GDR, 144A(3)     42,939     4,578
MarketAxess Holdings, Inc.     16,301     6,858
Mortgage Advice Bureau Holdings Ltd.    186,773     2,875
Nordnet AB publ    191,530     3,431
Progressive Corp. (The)     30,547     2,761
Sabre Insurance Group plc    624,849     1,837
VNV Global AB(11)    268,730     3,211
       44,815
       
 
Health Care—3.6%    
Danaher Corp.     39,808    12,119
  Shares   Value
       
Health Care—continued    
Haw Par Corp., Ltd.    385,700   $  3,270
HealthEquity, Inc.(11)     44,670     2,893
Nakanishi, Inc.     80,900     1,842
Zoetis, Inc. Class A     71,705    13,921
       34,045
       
 
Industrials—9.5%    
Boa Vista Servicos S.A.    948,109     2,216
BTS Group AB Class B     63,310     2,617
CAE, Inc.(11)    155,026     4,632
CoStar Group, Inc.(11)    113,100     9,733
Enento Group Oyj(11)     62,798     2,566
Equifax, Inc.     20,951     5,309
Fair Isaac Corp.(11)     12,010     4,779
Haitian International Holdings Ltd.    925,000     2,870
HeadHunter Group plc ADR    176,101     8,594
Knorr-Bremse AG     44,447     4,756
Marel HF    696,971     4,760
Meitec Corp.     46,500     2,561
MTU Aero Engines AG     17,779     3,997
Roper Technologies, Inc.     18,438     8,226
Rotork plc    312,027     1,458
S-1 Corp.     71,730     5,066
Uber Technologies, Inc.(11)    189,893     8,507
Voltronic Power Technology Corp.     72,894     4,445
Wolters Kluwer N.V.     34,299     3,636
       90,728
       
 
Information Technology—23.3%    
Accenture plc Class A     26,640     8,523
Admicom Oyj     11,333     1,210
Alten S.A.     27,211     3,982
Amphenol Corp. Class A    164,776    12,066
Avalara, Inc.(11)     94,889    16,584
Bill.com Holdings, Inc.(11)    171,305    45,730
Bouvet ASA    404,095     2,729
Brockhaus Capital Management AG(11)     52,904     1,354
DocuSign, Inc.(11)     18,700     4,814
Duck Creek Technologies, Inc.(11)    224,852     9,947
FDM Group Holdings plc    139,017     2,374
Fineos Corp., Ltd. CDI(11)    225,034       700
Mintra Holding AS(11)    310,566       209
MongoDB, Inc. Class A(11)     10,510     4,956
NVIDIA Corp.    152,470    31,586
Paycom Software, Inc.(11)     45,840    22,725
SimCorp A/S     12,046     1,423
Snowflake, Inc. Class A(11)     23,763     7,187
Trade Desk, Inc. (The) Class A(11)    151,300    10,636
Visa, Inc. Class A     95,438    21,259
Webcash Corp.     37,463       963
  Shares   Value
       
Information Technology—continued    
Workday, Inc. Class A(11)     47,302   $  11,820
      222,777
       
 
Materials—0.8%    
Corp. Moctezuma SAB de C.V.    620,531     2,100
Ecolab, Inc.     27,000     5,633
        7,733
Total Common Stocks
(Identified Cost $316,714) 		  654,868
 
Exchange-Traded Fund—0.1%
VanEck High Yield Muni ETF(6)     12,557       785
Total Exchange-Traded Fund
(Identified Cost $787) 		      785
 
Warrant—0.0%
Financials—0.0%    
VNV Global AB(11)     88,478       121
Total Warrant
(Identified Cost $—) 		      121
Total Long-Term Investments—98.2%
(Identified Cost $593,959) 		  937,661
Short-Term Investment—2.1%
Money Market Mutual Fund—2.1%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(12) 20,287,280    20,287
Total Short-Term Investment
(Identified Cost $20,287) 		   20,287
       
 
       
 
See Notes to Financial Statements
69

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
  Shares   Value
       
       
Securities Lending Collateral—0.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 0.030%)(12)(13)  1,266,803   $   1,267
Total Securities Lending Collateral
(Identified Cost $1,267) 		    1,267
TOTAL INVESTMENTS—100.5%
(Identified Cost $615,513) 		  $959,215
Other assets and liabilities, net—(0.5)%    (4,606)
NET ASSETS—100.0%   $954,609
    
Abbreviations:
ADR American Depositary Receipt
BAM Build America Municipal Insured
CDI CREST Depositary Interest
ETF Exchange-Traded Fund
GDR Global Depositary Receipt
GS Goldman Sachs & Co.
JSC Joint Stock Company
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
LLLP Limited Liability Limited Partnership
LP Limited Partnership
NA National Association
SOFR30A Secured Overnight Financing Rate 30 Day Average
WaMu Washington Mutual
Footnote Legend:
(1) Security in default; no interest payments are being received during the bankruptcy proceedings.
(2) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2021, these securities amounted to a value of $143,973 or 15.1% of net assets.
(4) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(5) Variable rate security. Rate disclosed is as of September 30, 2021. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(6) All or a portion of security is on loan.
(7) No contractual maturity date.
(8) Amount is less than $500.
(9) This loan will settle after September 30, 2021, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.
(10) Value shown as par value.
(11) Non-income producing.
(12) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(13) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 77%
China 3
United Kingdom 3
Brazil 2
Germany 2
Canada 1
Russia 1
Other 11
Total 100%
† % of total investments as of September 30, 2021.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
70

Table of Contents
Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2021
($ reported in thousands)
The following table summarizes the market value of the Fund’s investments as of September 30, 2021, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2021 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs 		  Level 3
Significant
Unobservable
Inputs
Assets:              
Debt Securities:              
Asset-Backed Securities $ 32,250   $ —   $ 32,250   $—
Corporate Bonds and Notes 99,876   —   99,876   — (1)
Foreign Government Securities 4,273   —   4,273   —
Leveraged Loans 28,908   —   28,908   —
Mortgage-Backed Securities 73,462   —   73,396   66
Municipal Bonds 3,738   —   3,738   —
U.S. Government Securities 36,872   —   36,872   —
Equity Securities:              
Common Stocks 654,868   525,366   129,502   —
Preferred Stocks 2,508   184   2,324   —
Warrant 121   121   —   —
Securities Lending Collateral 1,267   1,267   —   —
Exchange-Traded Fund 785   785   —   —
Money Market Mutual Fund 20,287   20,287   —   —
Total Investments $959,215   $548,010   $411,139   $66
    
(1) Amount is less than $500.
Securities held by the Fund with an end of period value of $66 were transferred from Level 2 to Level 3 due to a decrease in trading activities at period end.
Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.
Management has determined that the amount of Level 3 securities compared to total net assets is not material; therefore, the rollforward of Level 3 securities and assumptions are not shown for the period ended September 30, 2021.
See Notes to Financial Statements
71

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund
Assets              
Investment in securities at value(1)(2)
 $ 807,194   $ 141,536   $ 38,164   $ 1,394,431
Foreign currency at value(3)
 —   —   — (a)   —
Cash
100   100   50   500
Receivables              
Fund shares sold
47   6   1   4,472
Dividends
 113   248   163   509
Tax reclaims
—   58   39   —
Securities lending income
 — (a)   —   1   — (a)
Prepaid Trustees’ retainer
 9   2   1   16
Prepaid expenses
30   26   24   54
Other assets
81   14   4   139
Total assets
 807,574   141,990   38,447   1,400,121
Liabilities              
Payables              
Fund shares repurchased
82   64   1   859
Collateral on securities loaned
 —   1,905   —   —
Investment advisory fees
487   72   18   825
Distribution and service fees
167   30   6   76
Administration and accounting fees
 69   12   4   117
Transfer agent and sub-transfer agent fees and expenses
 186   43   15   319
Professional fees
25   2   22   26
Trustee deferred compensation plan
81   14   4   139
Interest expense and/or commitment fees
 1   — (a)   —   1
Other accrued expenses
 136   46   11   49
Total liabilities
 1,234   2,188   81   2,411
Net Assets
 $ 806,340   $ 139,802   $ 38,366   $ 1,397,710
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 190,279   $ 116,898   $ 35,342   $ 937,645
Accumulated earnings (loss)
 616,061   22,904   3,024   460,065
Net Assets
 $ 806,340   $ 139,802   $ 38,366   $ 1,397,710
Net Assets:              
Class A
 $ 736,713   $ 122,518   $ 23,807   $ 86,713
Class C
 $ 9,252   $ 4,303   $ 931   $ 67,627
Class I
 $ 59,565   $ 11,819   $ 11,659   $ 1,188,000
Class R6
 $ 810   $ 1,162   $ 1,969   $ 55,370
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 25,724,857   5,989,187   1,614,689   1,604,957
Class C
 447,035   246,301   65,494   1,368,404
Class I
 1,995,090   578,934   789,694   21,466,530
Class R6
 26,794   57,107   132,667   997,430
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 28.64   $ 20.46   $ 14.74   $ 54.03
Class C
 $ 20.70   $ 17.47   $ 14.21   $ 49.42
Class I
 $ 29.86   $ 20.41   $ 14.76   $ 55.34
Class R6
 $ 30.22   $ 20.35   $ 14.84   $ 55.51
See Notes to Financial Statements
72

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 30.31   $ 21.65   $ 15.60   $ 57.17
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 244,733   $ 124,021   $ 32,946   $ 957,240
(2) Market value of securities on loan
 $ —   $ 1,858   $ —   $ —
(3) Foreign currency at cost
 $ —   $ —   $ —(a)   $ —
    
(a) Amount is less than $500.
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
73

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Mid-Cap
Growth Fund 		  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund
Assets              
Investment in unaffiliated securities at value(1)
 $ 3,432,819   $ 1,933,714   $ 4,070,867   $ 1,422,743
Investment in affiliated securities at value(2)
 —   —   2,598,253   —
Cash
2,000   2,001   5,001   1,000
Receivables              
Fund shares sold
6,643   601   3,062   3,902
Dividends
 324   433   2,361   1,142
Securities lending income
 —   —   4   —
Prepaid Trustees’ retainer
 39   22   77   16
Prepaid expenses
73   35   17   49
Other assets
347   190   669   136
Total assets
 3,442,245   1,936,996   6,680,311   1,428,988
Liabilities              
Payables              
Fund shares repurchased
4,322   4,901   6,687   1,930
Investment securities purchased
3,948   3,767   —   509
Investment advisory fees
2,107   1,217   4,632   816
Distribution and service fees
247   101   444   46
Administration and accounting fees
 293   160   562   115
Transfer agent and sub-transfer agent fees and expenses
 987   392   1,974   343
Professional fees
36   30   52   27
Trustee deferred compensation plan
347   190   669   136
Interest expense and/or commitment fees
 4   2   9   1
Other accrued expenses
 136   73   270   55
Total liabilities
 12,427   10,833   15,299   3,978
Net Assets
 $ 3,429,818   $ 1,926,163   $ 6,665,012   $ 1,425,010
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 2,117,279   $ 987,295   $ 2,959,120   $ 908,184
Accumulated earnings (loss)
 1,312,539   938,868   3,705,892   516,826
Net Assets
 $ 3,429,818   $ 1,926,163   $ 6,665,012   $ 1,425,010
Net Assets:              
Class A
 $ 579,817   $ 140,807   $ 793,106   $ 130,975
Class C
 $ 141,256   $ 84,992   $ 319,371   $ 21,623
Class I
 $ 2,499,830   $ 1,278,711   $ 5,346,986   $ 1,190,498
Class R6
 $ 208,915   $ 421,653   $ 205,549   $ 81,914
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 8,124,477   2,934,690   14,739,022   4,801,831
Class C
 2,562,967   2,216,216   6,835,983   815,805
Class I
 33,718,570   24,966,639   96,404,733   43,611,211
Class R6
 2,797,563   8,195,298   3,691,554   2,997,306
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 71.37   $ 47.98   $ 53.81   $ 27.28
Class C
 $ 55.11   $ 38.35   $ 46.72   $ 26.51
Class I
 $ 74.14   $ 51.22   $ 55.46   $ 27.30
Class R6
 $ 74.68   $ 51.45   $ 55.68   $ 27.33
See Notes to Financial Statements
74

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Mid-Cap
Growth Fund 		  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 75.52   $ 50.77   $ 56.94   $ 28.87
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 2,148,343   $ 1,198,008   $ 2,356,209   $ 929,752
(2) Investment in affiliated securities at cost
 $ —   $ —   $ 1,363,466   $ —
    
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
75

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund 		  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
Assets              
Investment in securities at value(1)
 $ 1,258,433   $ 6,034   $ 2,898   $ 6,164
Cash
50   85   50   50
Receivables              
Fund shares sold
6,897   1   —   —
Receivable from adviser
 —   7   25   3
Dividends
 111   1   2   2
Prepaid Trustees’ retainer
 14   — (a)   — (a)   — (a)
Prepaid expenses
56   15   —   14
Other assets
126   1   — (a)   1
Total assets
 1,265,687   6,144   2,975   6,234
Liabilities              
Payables              
Fund shares repurchased
737   —   —   —
Investment securities purchased
—   35   —   —
Foreign capital gains tax
 —   —   —   11
Investment advisory fees
786   —   —   —
Distribution and service fees
37   — (a)   — (a)   — (a)
Administration and accounting fees
 106   1   1   1
Transfer agent and sub-transfer agent fees and expenses
 288   1   — (a)   — (a)
Professional fees
25   22   26   25
Trustee deferred compensation plan
126   1   — (a)   1
Interest expense and/or commitment fees
 1   — (a)   —   — (a)
Other accrued expenses
 40   1   21   1
Total liabilities
 2,146   61   48   39
Net Assets
 $ 1,263,541   $ 6,083   $ 2,927   $ 6,195
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 1,022,038   $ 5,766   $ 3,034   $ 4,869
Accumulated earnings (loss)
 241,503   317   (107)   1,326
Net Assets
 $ 1,263,541   $ 6,083   $ 2,927   $ 6,195
Net Assets:              
Class A
 $ 48,485   $ 725   $ 127   $ 206
Class C
 $ 30,401   $ 119   $ 99   $ 159
Class I
 $ 1,168,320   $ 1,998   $ 97   $ 405
Class R6
 $ 16,335   $ 3,241   $ 2,604   $ 5,425
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 2,596,359   67,743   13,159   16,108
Class C
 1,671,853   11,220   10,299   12,584
Class I
 62,063,962   186,337   10,000   31,395
Class R6
 865,806   302,122   270,000   418,942
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 18.67   $ 10.70   $ 9.64   $ 12.82
Class C
 $ 18.18   $ 10.63   $ 9.63   $ 12.60
Class I
 $ 18.82   $ 10.72   $ 9.64   $ 12.90
Class R6
 $ 18.87   $ 10.73   $ 9.65   $ 12.95
See Notes to Financial Statements
76

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund 		  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 19.76   $ 11.32   $ 10.20   $ 13.57
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 1,032,101   $ 5,647   $ 3,007   $ 5,211
    
(a) Amount is less than $500.
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
77

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  SGA Global Growth Fund   SGA New Leaders Growth Fund   Tactical
Allocation Fund
Assets          
Investment in securities at value(1)(2)
 $ 175,630   $ 6,613   $ 959,215
Foreign currency at value(3)
 —   —   251
Cash
50   50   1,166
Receivables          
Investment securities sold
—   —   842
Fund shares sold
149   —   101
Receivable from adviser
 —   7   —
Dividends and interest
 41   1   1,634
Tax reclaims
65   —   84
Securities lending income
 —   —   1
Prepaid Trustees’ retainer
 2   — (a)   11
Prepaid expenses
28   4   25
Other assets
18   1   95
Total assets
 175,983   6,676   963,425
Liabilities          
Payables          
Fund shares repurchased
69   —   478
Investment securities purchased
—   —   5,893
Collateral on securities loaned
 —   —   1,267
Investment advisory fees
105   —   360
Distribution and service fees
14   — (a)   214
Administration and accounting fees
 16   1   80
Transfer agent and sub-transfer agent fees and expenses
 41   1   240
Professional fees
20   24   49
Trustee deferred compensation plan
18   1   95
Interest expense and/or commitment fees
 — (a)   — (a)   1
Other accrued expenses
 16   1   139
Total liabilities
 299   28   8,816
Net Assets
 $ 175,684   $ 6,648   $ 954,609
Net Assets Consist of:          
Capital paid in on shares of beneficial interest
 $ 114,027   $ 6,280   $ 577,834
Accumulated earnings (loss)
 61,657   368   376,775
Net Assets
 $ 175,684   $ 6,648   $ 954,609
Net Assets:          
Class A
 $ 34,690   $ 110   $ 869,209
Class C
 $ 7,326   $ 108   $ 33,401
Class I
 $ 53,546   $ 163   $ 51,887
Class R6
 $ 80,122   $ 6,267   $ 112
Shares Outstanding (unlimited number of shares authorized, no par value):          
Class A
 1,130,303   10,284   62,722,399
Class C
 255,181   10,224   2,354,389
Class I
 1,732,304   15,285   3,754,020
Class R6
 2,515,945   586,057   8,070
Net Asset Value and Redemption Price Per Share:*          
Class A
 $ 30.69   $ 10.65   $ 13.86
Class C
 $ 28.71   $ 10.58   $ 14.19
Class I
 $ 30.91   $ 10.67   $ 13.82
Class R6
 $ 31.85   $ 10.69   $ 13.83
See Notes to Financial Statements
78

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2021
(Reported in thousands except shares and per share amounts)
  SGA Global Growth Fund   SGA New Leaders Growth Fund   Tactical
Allocation Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):          
Class A
 $ 32.48   $ 11.27   $ 14.67
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 123,061   $ 6,055   $ 615,513
(2) Market value of securities on loan
 $ —   $ —   $ 1,236
(3) Foreign currency at cost
 $ —   $ —   $ 251
    
(a) Amount is less than $500.
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
79

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS YEAR ENDED September 30, 2021
($ reported in thousands)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund 		  KAR Mid-Cap
Growth Fund
Investment Income                  
Dividends
$ 2,858   $ 4,922   $1,574   $ 7,166   $ 10,989
Securities lending, net of fees
 4   7   6   10   —
Foreign taxes withheld
—   (64)   (93)   —   —
Total investment income
 2,862   4,865   1,487   7,176   10,989
Expenses                  
Investment advisory fees
 5,458   1,061   287   9,088   23,655
Distribution and service fees, Class A
 1,781   308   60   190   1,453
Distribution and service fees, Class C
 117   58   13   616   1,384
Administration and accounting fees
 786   149   46   1,150   3,306
Transfer agent fees and expenses
 423   78   25   478   1,415
Sub-transfer agent fees and expenses, Class A
 239   72   15   70   558
Sub-transfer agent fees and expenses, Class C
 10   4   1   57   134
Sub-transfer agent fees and expenses, Class I
 54   8   12   837   2,566
Custodian fees
2   1   1   2   6
Printing fees and expenses
45   3   4   73   226
Professional fees
32   70   22   35   108
Interest expense and/or commitment fees
 4   1   — (1)   5   17
Registration fees
58   48   42   121   333
Trustees’ fees and expenses
46   8   2   60   188
Miscellaneous expenses
 271   62   23   68   247
Total expenses
 9,326   1,931   553   12,850   35,596
Less net expenses reimbursed and/or waived by investment adviser(2)
 (1)   (176)   (64)   (1,169)   (101)
Less low balance account fees
(11)   (1)   (1)   —   (1)
Net expenses
 9,314   1,754   488   11,681   35,494
Net investment income (loss)
 (6,452)   3,111   999   (4,505)   (24,505)
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 64,719   3,083   1,846   33,114   52,141
Foreign currency transactions
 — (1)   — (1)   (10)   —   —
Net change in unrealized appreciation (depreciation) on:                  
Investments
 92,901   19,166   3,335   279,183   590,790
Foreign currency transactions
 —   —   (2)   —   —
Net realized and unrealized gain (loss) on investments
 157,620   22,249   5,169   312,297   642,931
Net increase (decrease) in net assets resulting from operations
 $151,168   $25,360   $6,168   $307,792   $618,426
    
(1) Amount is less than $500.
(2) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
80

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS (Continued)
YEAR ENDED September 30, 2021
($ reported in thousands)
  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund 		  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund(1)
Investment Income                  
Dividends
$ 19,641   $ 17,497   $ 17,149   $ 5,034   $ 9
Dividends from affiliated
—   8,579   —   —   —
Securities lending, net of fees
 —   34   —   —   — (2)
Total investment income
 19,641   26,110   17,149   5,034   9
Expenses                  
Investment advisory fees
 14,141   57,250   8,952   7,072   29
Distribution and service fees, Class A
 334   2,104   303   97   1
Distribution and service fees, Class C
 930   3,420   219   221   1
Administration and accounting fees
 1,889   7,070   1,281   950   10
Transfer agent fees and expenses
 787   2,975   546   400   2
Sub-transfer agent fees and expenses, Class A
 123   913   86   44   — (2)
Sub-transfer agent fees and expenses, Class C
 70   254   19   22   — (2)
Sub-transfer agent fees and expenses, Class I
 995   5,302   970   761   1
Custodian fees
3   11   2   1   1
Printing fees and expenses
104   415   94   62   25
Professional fees
45   123   37   33   34
Interest expense and/or commitment fees
 9   35   6   5   — (2)
Registration fees
79   170   119   125   40
Trustees’ fees and expenses
111   437   70   44   — (2)
Miscellaneous expenses
 129   523   80   44   4
Total expenses
 19,749   81,002   12,784   9,881   148
Less net expenses reimbursed and/or waived by investment adviser(3)
 —   —   —   —   (107)
Less low balance account fees
—   (1)   — (2)   — (2)   —
Plus net expenses recaptured
 —   —   —   135   —
Net expenses
 19,749   81,001   12,784   10,016   41
Net investment income (loss)
 (108)   (54,891)   4,365   (4,982)   (32)
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 212,193   755,435   48,737   21,174   (40)
Affiliated investments
 —   45,839   —   —   —
Foreign currency transactions
 13   (24)   —   —   —
Net change in unrealized appreciation (depreciation) on:                  
Investments
 241,096   240,194   282,809   168,800   387
Affiliated investments
 —   328,579   —   —   —
Foreign currency transactions
 2   5   —   —   —
Net realized and unrealized gain (loss) on investments
 453,304   1,370,028   331,546   189,974   347
Net increase (decrease) in net assets resulting from operations
 $453,196   $1,315,137   $335,911   $184,992   $ 315
    
(1) Inception date December 8, 2020.
(2) Amount is less than $500.
(3) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
81

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS (Continued)
YEAR ENDED September 30, 2021
($ reported in thousands)
  KAR Small-Mid Cap Value Fund(1)   SGA Emerging Markets Growth Fund   SGA Global Growth Fund   SGA New Leaders Growth Fund(2)   Tactical
Allocation Fund
Investment Income                  
Dividends
$ 6   $ 57   $ 1,022   $ 20   $ 4,456
Interest
—   —   —   —   8,116
Securities lending, net of fees
 —   —   2   — (3)   16
Foreign taxes withheld
—   (5)   (52)   (1)   (280)
Total investment income
 6   52   972   19   12,308
Expenses                  
Investment advisory fees
 3   65   1,307   42   5,163
Distribution and service fees, Class A
 — (3)   1   81   — (3)   2,104
Distribution and service fees, Class C
 — (3)   1   65   1   416
Administration and accounting fees
 2   15   171   12   944
Transfer agent fees and expenses
 — (3)   3   71   3   499
Sub-transfer agent fees and expenses, Class A
 — (3)   — (3)   62   —   342
Sub-transfer agent fees and expenses, Class C
 — (3)   — (3)   6   —   44
Sub-transfer agent fees and expenses, Class I
 — (3)   — (3)   54   —   52
Custodian fees
— (3)   — (3)   1   — (3)   14
Printing fees and expenses
19   3   16   28   73
Professional fees
32   32   16   36   249
Interest expense and/or commitment fees
 —   — (3)   1   — (3)   5
Registration fees
4   49   65   43   53
Trustees’ fees and expenses
— (3)   — (3)   9   —   54
Miscellaneous expenses
 1   4   23   7   265
Total expenses
 61   173   1,948   172   10,277
Less net expenses reimbursed and/or waived by investment adviser(4)
 (57)   (101)   (142)   (122)   (587)
Less low balance account fees
—   —   — (3)   —   (8)
Net expenses
 4   72   1,806   50   9,682
Net investment income (loss)
 2   (20)   (834)   (31)   2,626
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 —   425   10,313   (164)   68,559
Foreign currency transactions
 —   — (3)   (14)   1   (47)
Foreign capital gains tax
 —   (3)   —   —   —
Net change in unrealized appreciation (depreciation) on:                  
Investments
 (109)   144   18,123   558   73,049
Foreign currency transactions
 —   — (3)   (1)   — (3)   (1)
Foreign capital gains tax
 —   (9)   —   —   —
Net realized and unrealized gain (loss) on investments
 (109)   557   28,421   395   141,560
Net increase (decrease) in net assets resulting from operations
 $(107)   $ 537   $27,587   $ 364   $144,186
    
(1) Inception date August 3, 2021.
(2) Inception date November 17, 2020.
(3) Amount is less than $500.
(4) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
82

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (6,452)   $ (3,646)   $ 3,111   $ 912
Net realized gain (loss)
64,719   18,655   3,083   44,684
Net change in unrealized appreciation (depreciation)
92,901   220,795   19,166   (31,713)
Increase (decrease) in net assets resulting from operations
 151,168   235,804   25,360   13,883
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (21,796)   (13,917)   (31,394)   (1,182)
Class C
 (600)   (341)   (1,891)   (14)
Class I
 (1,595)   (673)   (2,982)   (133)
Class R6
 (9)   (6)   (333)   (13)
Total dividends and distributions to shareholders
 (24,000)   (14,937)   (36,600)   (1,342)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A
 (20,713)   (34,651)   18,321   (12,326)
Class C
 (5,645)   792   (1,372)   (2,051)
Class I
 4,062   11,756   2,527   (1,330)
Class R6
 443   149   475   (222)
Increase (decrease) in net assets from capital transactions
 (21,853)   (21,954)   19,951   (15,929)
Net increase (decrease) in net assets
 105,315   198,913   8,711   (3,388)
Net Assets              
Beginning of period
 701,025   502,112   131,091   134,479
End of Period
 $ 806,340   $ 701,025   $ 139,802   $ 131,091
See Notes to Financial Statements
83

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Global Quality Dividend Fund   KAR Mid-Cap Core Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ 999   $ 867   $ (4,505)   $ (1,651)
Net realized gain (loss)
1,836   (2,753)   33,114   3,785
Net change in unrealized appreciation (depreciation)
3,333   (2,982)   279,183   85,472
Increase (decrease) in net assets resulting from operations
 6,168   (4,868)   307,792   87,606
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (576)   (669)   (464)   (222)
Class C
 (27)   (45)   (429)   (207)
Class I
 (334)   (228)   (5,392)   (1,612)
Class R6
 (3)   (3)   (165)   (56)
Total dividends and distributions to shareholders
 (940)   (945)   (6,450)   (2,097)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A
 (1,674)   (3,290)   9,280   3,463
Class C
 (729)   (1,314)   1,742   523
Class I
 (134)   4,427   273,909   256,818
Class R6
 1,770   —   27,639   6,369
Increase (decrease) in net assets from capital transactions
 (767)   (177)   312,570   267,173
Net increase (decrease) in net assets
 4,461   (5,990)   613,912   352,682
Net Assets              
Beginning of period
 33,905   39,895   783,798   431,116
End of Period
 $ 38,366   $ 33,905   $ 1,397,710   $ 783,798
See Notes to Financial Statements
84

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Mid-Cap Growth Fund   KAR Small-Cap Core Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (24,505)   $ (9,574)   $ (108)   $ (4,034)
Net realized gain (loss)
52,141   1,409   212,206   120,343
Net change in unrealized appreciation (depreciation)
590,790   614,023   241,098   29,309
Increase (decrease) in net assets resulting from operations
 618,426   605,858   453,196   145,618
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (606)   (1,240)   (9,053)   (5,631)
Class C
 (180)   (384)   (8,780)   (5,334)
Class I
 (2,375)   (2,476)   (85,597)   (48,638)
Class R6
 (139)   (25)   (26,170)   (5,252)
Total dividends and distributions to shareholders
 (3,300)   (4,125)   (129,600)   (64,855)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A
 (13,276)   167,734   6,511   (24,683)
Class C
 4,098   40,327   (19,276)   (18,869)
Class I
 211,073   1,098,875   (24,692)   (187,888)
Class R6
 80,643   89,984   61,400   179,793
Increase (decrease) in net assets from capital transactions
 282,538   1,396,920   23,943   (51,647)
Net increase (decrease) in net assets
 897,664   1,998,653   347,539   29,116
Net Assets              
Beginning of period
 2,532,154   533,501   1,578,624   1,549,508
End of Period
 $ 3,429,818   $ 2,532,154   $ 1,926,163   $ 1,578,624
See Notes to Financial Statements
85

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Cap Growth Fund   KAR Small-Cap Value Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (54,891)   $ (45,327)   $ 4,365   $ 5,818
Net realized gain (loss)
801,250   811,834   48,737   (13,648)
Net change in unrealized appreciation (depreciation)
568,778   814,401   282,809   79,242
Increase (decrease) in net assets resulting from operations
 1,315,137   1,580,908   335,911   71,412
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (79,097)   (11,736)   (662)   (469)
Class C
 (37,125)   (5,279)   (11)   —
Class I
 (537,686)   (65,197)   (8,138)   (4,156)
Class R6
 (14,092)   (823)   (189)   (105)
Total dividends and distributions to shareholders
 (668,000)   (83,035)   (9,000)   (4,730)
Change in Net Assets from Capital Transactions (See Note 6):              
Class A
 (53,154)   (146,328)   16,147   (2,705)
Class C
 (27,922)   (45,805)   (654)   (112)
Class I
 (441,585)   60,051   194,304   169,955
Class R6
 98,665   30,011   64,780   (95)
Increase (decrease) in net assets from capital transactions
 (423,996)   (102,071)   274,577   167,043
Net increase (decrease) in net assets
 223,141   1,395,802   601,488   233,725
Net Assets              
Beginning of period
 6,441,871   5,046,069   823,522   589,797
End of Period
 $ 6,665,012   $ 6,441,871   $ 1,425,010   $ 823,522
See Notes to Financial Statements
86

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Mid Cap Core Fund   KAR Small-Mid Cap Growth Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  From Inception December 8, 2020 to
September 30,
2021
Increase (Decrease) in Net Assets Resulting from Operations          
Net investment income (loss)
$ (4,982)   $ 47   $ (32)
Net realized gain (loss)
21,174   (843)   (40)
Net change in unrealized appreciation (depreciation)
168,800   55,857   387
Increase (decrease) in net assets resulting from operations
 184,992   55,061   315
Dividends and Distributions to Shareholders          
Net Investment Income and Net Realized Gains:          
Class I
 (57)   —   —
Class R6
 (3)   —   —
Total dividends and distributions to shareholders
 (60)   —   —
Change in Net Assets from Capital Transactions (See Note 6):          
Class A
 21,019   16,375   697
Class C
 16,317   8,117   112
Class I
 557,850   363,831   1,930
Class R6
 5,213   4,224   3,029
Increase (decrease) in net assets from capital transactions
 600,399   392,547   5,768
Net increase (decrease) in net assets
 785,331   447,608   6,083
Net Assets          
Beginning of period
 478,210   30,602   —
End of Period
 $ 1,263,541   $ 478,210   $ 6,083
See Notes to Financial Statements
87

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
  From Inception August 3, 2021 to
September 30,
2021 		  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations          
Net investment income (loss)
$ 2   $ (20)   $ (3)
Net realized gain (loss)
—   422   106
Net change in unrealized appreciation (depreciation)
(109)   135   815
Increase (decrease) in net assets resulting from operations
 (107)   537   918
Dividends and Distributions to Shareholders          
Net Investment Income and Net Realized Gains:          
Class A
 —   (4)   (—) (1)
Class C
 —   (3)   (—) (1)
Class I
 —   (8)   (—) (1)
Class R6
 —   (110)   (1)
Total Dividends and Distributions to Shareholders
 —   (125)   (1)
Change in Net Assets From Capital Transactions (See Note 6):          
Class A
 131   27   43
Class C
 103   8   16
Class I
 100   143   100
Class R6
 2,700   219   (31)
Increase (decrease) in net assets from share transactions
 3,034   397   128
Net increase (decrease) in net assets
 2,927   809   1,045
Net Assets          
Beginning of period
 —   5,386   4,341
End of Period
 $2,927   $6,195   $5,386
    
(1) Amount is less than $500.
See Notes to Financial Statements
88

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  SGA Global Growth Fund   SGA New Leaders Growth Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020 		  From Inception November 17, 2020 to
September 30,
2021
Increase (Decrease) in Net Assets Resulting from Operations          
Net investment income (loss)
$ (834)   $ (283)   $ (31)
Net realized gain (loss)
10,299   5,395   (163)
Net change in unrealized appreciation (depreciation)
18,122   20,280   558
Increase (decrease) in net assets resulting from operations
 27,587   25,392   364
Dividends and Distributions to Shareholders          
Net Investment Income and Net Realized Gains:          
Class A
 (963)   —   —
Class C
 (211)   —   —
Class I
 (1,091)   (3)   —
Class R6
 (2,435)   (34)   —
Total Dividends and Distributions to Shareholders
 (4,700)   (37)   —
Change in Net Assets From Capital Transactions (See Note 6):          
Class A
 3,849   19,110   103
Class C
 1,331   699   103
Class I
 20,190   9,377   155
Class R6
 (4,192)   15,808   5,923
Increase (decrease) in net assets from share transactions
 21,178   44,994   6,284
Net increase (decrease) in net assets
 44,065   70,349   6,648
Net Assets          
Beginning of period
 131,619   61,270   —
End of Period
 $175,684   $131,619   $6,648
See Notes to Financial Statements
89

Table of Contents
VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  Tactical Allocation Fund
  Year Ended
September 30,
2021 		  Year Ended
September 30,
2020
Increase (Decrease) in Net Assets Resulting from Operations      
Net investment income (loss)
$ 2,626   $ 4,222
Net realized gain (loss)
68,512   13,401
Net change in unrealized appreciation (depreciation)
73,048   148,434
Increase (decrease) in net assets resulting from operations
 144,186   166,057
Dividends and Distributions to Shareholders      
Net Investment Income and Net Realized Gains:      
Class A
 (15,782)   (11,431)
Class C
 (873)   (118)
Class I
 (1,207)   (110)
Class R6
 (2)   —
Total dividends and distributions to shareholders
 (17,864)   (11,659)
Change in Net Assets from Capital Transactions (See Note 6):      
Class A
 73,751   (35,921)
Class C
 14,669   1,158
Class I
 18,001   21,215
Class R6
 100   —
Increase (decrease) in net assets from capital transactions
 106,521   (13,548)
Net increase (decrease) in net assets
 232,843   140,850
Net Assets      
Beginning of period
 721,766   580,916
End of Period
 $ 954,609   $ 721,766
See Notes to Financial Statements
90

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Capital Growth Fund                                    
Class A                                    
10/1/20 to 9/30/21   $24.20  (0.22)  5.49  5.27  —  —  (0.83)  (0.83)  —  4.44  $28.64  21.98  % $ 736,713  1.20 %  (6) 1.20 %  (0.83) %  8 % 
10/1/19 to 9/30/20   16.67  (0.12)  8.16  8.04  —  —  (0.51)  (0.51)  —  7.53  24.20  49.20   640,963  1.22   (6) 1.23   (0.63)   4  
10/1/18 to 9/30/19   18.37  (0.07)  (0.08)  (0.15)  —  —  (1.55)  (1.55)  —  (1.70)  16.67  1.10   471,071  1.23   (6) 1.24   (0.43)   12  
10/1/17 to 9/30/18   16.18  (0.08)  3.13  3.05  —  —  (0.86)  (0.86)  —  2.19  18.37  19.56   508,124  1.22   (6) 1.22   (0.49)   17  
4/1/17 to 9/30/17(7)   14.10  (0.03)  2.27  2.24  —  —  (0.16)  (0.16)  —  2.08  16.18  15.93   446,720  1.30   (6) 1.30   (0.40)   13  
4/1/16 to 3/31/17   13.66  (0.05)  1.64  1.59  —  —  (1.15)  (1.15)  —  0.44  14.10  12.34   (8) 402,118  1.33   (6)(8)(9) 1.34   (0.40)   (8) 21  
Class C                                    
10/1/20 to 9/30/21   $17.83  (0.32)  4.02  3.70  —  —  (0.83)  (0.83)  —  2.87  $20.70  21.00  % $ 9,252  2.01 %  (6) 2.01 %  (1.63) %  8 % 
10/1/19 to 9/30/20   12.49  (0.20)  6.05  5.85  —  —  (0.51)  (0.51)  —  5.34  17.83  48.09   13,183  2.00   (6) 2.00   (1.41)   4  
10/1/18 to 9/30/19   14.34  (0.15)  (0.15)  (0.30)  —  —  (1.55)  (1.55)  —  (1.85)  12.49  0.26   8,632  2.02   (6) 2.02   (1.22)   12  
10/1/17 to 9/30/18   12.91  (0.17)  2.46  2.29  —  —  (0.86)  (0.86)  —  1.43  14.34  18.58   14,408  1.99   (6) 2.00   (1.26)   17  
4/1/17 to 9/30/17(7)   11.32  (0.07)  1.82  1.75  —  —  (0.16)  (0.16)  —  1.59  12.91  15.51   14,052  2.08   (6) 2.08   (1.18)   13  
4/1/16 to 3/31/17   11.27  (0.13)  1.33  1.20  —  —  (1.15)  (1.15)  —  0.05  11.32  11.47   (8) 13,345  2.08   (6)(8)(9) 2.09   (1.16)   (8) 21  
Class I                                    
10/1/20 to 9/30/21   $25.15  (0.18)  5.72  5.54  —  —  (0.83)  (0.83)  —  4.71  $29.86  22.23  % $ 59,565  1.00 %  (6) 1.00 %  (0.63) %  8 % 
10/1/19 to 9/30/20   17.36  (0.09)  8.39  8.30  —  —  (0.51)  (0.51)  —  7.79  25.15  48.72   46,600  1.01   (6) 1.02   (0.44)   4  
10/1/18 to 9/30/19   19.02  (0.04)  (0.07)  (0.11)  —  —  (1.55)  (1.55)  —  (1.66)  17.36  1.29   22,315  1.02   (6) 1.03   (0.21)   12  
10/1/17 to 9/30/18   16.69  (0.05)  3.24  3.19  —  —  (0.86)  (0.86)  —  2.33  19.02  19.81   17,125  0.99   (6) 0.99   (0.26)   17  
4/1/17 to 9/30/17(7)   14.52  (0.01)  2.34  2.33  —  —  (0.16)  (0.16)  —  2.17  16.69  16.09   12,466  1.08   (6) 1.08   (0.18)   13  
4/1/16 to 3/31/17   14.00  (0.01)  1.68  1.67  —  —  (1.15)  (1.15)  —  0.52  14.52  12.61   (8) 10,180  1.08   (6)(8)(9) 1.09   (0.15)   (8) 21  
Class R6                                    
10/1/20 to 9/30/21   $25.38  (0.11)  5.78  5.67  —  —  (0.83)  (0.83)  —  4.84  $30.22  22.55  % $ 810  0.73 %  0.91 %  (0.38) %  8 % 
10/1/19 to 9/30/20   17.37  (0.01)  8.53  8.52  —  —  (0.51)  (0.51)  —  8.01  25.38  49.99   279  0.72   0.94   (0.06)   4  
10/1/18 to 9/30/19   19.04  (0.05)  (0.07)  (0.12)  —  —  (1.55)  (1.55)  —  (1.67)  17.37  1.25   94  0.78   (10) 0.94   (0.27)   12  
1/30/18 (11) to 9/30/18   18.46  (—)  (12) 0.58  0.58  —  —  —  —  —  0.58  19.04  3.14   6,458  0.80   (10) 0.91   (0.03)   17   (13)
                                     
KAR Equity Income Fund                                    
Class A                                    
10/1/20 to 9/30/21   $23.03  0.47  3.57  4.04  (0.27)  —  (6.34)  (6.61)  —  (2.57)  $20.46  20.23  % $ 122,518  1.23 %  (9) 1.36 %  2.21 %  25 % 
10/1/19 to 9/30/20   20.62  0.15  2.47  2.62  (0.21)  —  —  (0.21)  —  2.41  23.03  12.75   113,585  1.23   (9) 1.38   0.72   118  
10/1/18 to 9/30/19   21.05  0.16  (0.38)  (0.22)  (0.21)  —  —  (0.21)  —  (0.43)  20.62  (0.85)   115,121  1.20   1.34   0.80   26  
10/1/17 to 9/30/18   20.26  0.14  2.02  2.16  (0.06)  —  (1.31)  (1.37)  —  0.79  21.05  10.84   118,904  1.20   1.31   0.71   24  
4/1/17 to 9/30/17(7)   20.27  0.06  1.72  1.78  (0.06)  —  (1.73)  (1.79)  —  (0.01)  20.26  9.26   120,445  1.23   (10) 1.39   0.63   110  
4/1/16 to 3/31/17   18.14  0.15  2.68  2.83  (0.22)  —  (0.48)  (0.70)  —  2.13  20.27  15.85   (8) 113,442  1.26   (8)(9) 1.40   0.81   496  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
91

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Equity Income Fund (Continued)                                    
Class C                                    
10/1/20 to 9/30/21   $20.51  0.28  3.12  3.40  (0.10)  —  (6.34)  (6.44)  —  (3.04)  $17.47  19.31  % $ 4,303  1.97 %  (9) 2.13 %  1.52 %  25 % 
10/1/19 to 9/30/20   18.36  (0.01)  2.19  2.18  (0.03)  —  —  (0.03)  —  2.15  20.51  11.91   6,394  1.97   (9) 2.13   (0.03)   118  
10/1/18 to 9/30/19   18.71  0.01  (0.33)  (0.32)  (0.03)  —  —  (0.03)  —  (0.35)  18.36  (1.65)   7,769  1.95   2.10   0.07   26  
10/1/17 to 9/30/18   18.23  (0.01)  1.80  1.79  —  —  (1.31)  (1.31)  —  0.48  18.71  10.00   30,576  1.95   2.06   (0.03)   24  
4/1/17 to 9/30/17(7)   18.44  (0.02)  1.56  1.54  (0.02)  —  (1.73)  (1.75)  —  (0.21)  18.23  8.85   32,710  1.98   (10) 2.15   (0.17)   110  
4/1/16 to 3/31/17   16.48  0.01  2.44  2.45  (0.01)  —  (0.48)  (0.49)  —  1.96  18.44  15.01   (8) 37,269  2.00   (8)(9) 2.15   0.04   496  
Class I                                    
10/1/20 to 9/30/21   $23.00  0.52  3.56  4.08  (0.33)  —  (6.34)  (6.67)  —  (2.59)  $20.41  20.49  % $ 11,819  0.98 %  (9) 1.11 %  2.43 %  25 % 
10/1/19 to 9/30/20   20.60  0.20  2.46  2.66  (0.26)  —  —  (0.26)  —  2.40  23.00  12.98   10,319  0.98   (9) 1.13   0.97   118  
10/1/18 to 9/30/19   21.03  0.21  (0.38)  (0.17)  (0.26)  —  —  (0.26)  —  (0.43)  20.60  (0.58)   10,654  0.95   1.09   1.06   26  
10/1/17 to 9/30/18   20.22  0.19  2.01  2.20  (0.08)  —  (1.31)  (1.39)  —  0.81  21.03  11.10   15,028  0.95   1.08   0.92   24  
4/1/17 to 9/30/17(7)   20.22  0.09  1.71  1.80  (0.07)  —  (1.73)  (1.80)  —  —  20.22  9.41   32,485  0.98   (10) 1.15   0.91   110  
4/1/16 to 3/31/17   18.13  0.21  2.66  2.87  (0.30)  —  (0.48)  (0.78)  —  2.09  20.22  16.16   (8) 21,011  1.01   (8)(9) 1.15   1.13   496  
Class R6                                    
10/1/20 to 9/30/21   $22.96  0.51  3.57  4.08  (0.35)  —  (6.34)  (6.69)  —  (2.61)  $20.35  20.55  % $ 1,162  0.94 %  (9) 1.03 %  2.44 %  25 % 
10/1/19 to 9/30/20   20.56  0.21  2.47  2.68  (0.28)  —  —  (0.28)  —  2.40  22.96  13.08   793  0.93   (9) 1.05   1.01   118  
10/1/18 to 9/30/19   21.03  0.20  (0.37)  (0.17)  (0.30)  —  —  (0.30)  —  (0.47)  20.56  (0.56)   935  0.91   1.03   1.02   26  
1/30/18 (11) to 9/30/18   20.70  0.15  0.18  0.33  —  —  —  —  —  0.33  21.03  1.59   4,999  0.91   1.00   1.16   24  
                                     
KAR Global Quality Dividend Fund                                    
Class A                                    
10/1/20 to 9/30/21   $12.76  0.37  1.95  2.32  (0.34)  —  —  (0.34)  —  1.98  $14.74  18.42  % $ 23,807  1.35 %  1.51 %  2.55 %  37 % 
10/1/19 to 9/30/20   14.78  0.31  (1.99)  (1.68)  (0.34)  —  —  (0.34)  —  (2.02)  12.76  (11.69)   22,089  1.35   1.61   2.32   53  
10/1/18 to 9/30/19   14.98  0.38  0.85  1.23  (0.39)  —  (1.04)  (1.43)  —  (0.20)  14.78  9.64   29,367  1.35   1.56   2.71   35  
10/1/17 to 9/30/18   16.20  0.40  0.25  0.65  (0.65)  —  (1.22)  (1.87)  —  (1.22)  14.98  4.24   26,351  1.35   1.50   2.63   33  
4/1/17 to 9/30/17(7)   16.81  0.30  0.41  0.71  (0.27)  —  (1.05)  (1.32)  —  (0.61)  16.20  4.31   44,188  1.35   1.56   3.65   13  
4/1/16 to 3/31/17   15.09  0.20  1.66  1.86  (0.14)  —  —  (0.14)  —  1.72  16.81  12.42   46,670  1.36   (9) 1.48   1.29   119  
Class C                                    
10/1/20 to 9/30/21   $12.29  0.24  1.90  2.14  (0.22)  —  —  (0.22)  —  1.92  $14.21  17.52  % $ 931  2.10 %  2.29 %  1.74 %  37 % 
10/1/19 to 9/30/20   14.23  0.20  (1.92)  (1.72)  (0.22)  —  —  (0.22)  —  (1.94)  12.29  (12.34)   1,467  2.10   2.35   1.53   53  
10/1/18 to 9/30/19   14.52  0.24  0.83  1.07  (0.32)  —  (1.04)  (1.36)  —  (0.29)  14.23  8.74   3,178  2.10   2.29   1.79   35  
10/1/17 to 9/30/18   15.82  0.32  0.22  0.54  (0.62)  —  (1.22)  (1.84)  —  (1.30)  14.52  3.56   5,127  2.10   2.25   2.16   33  
4/1/17 to 9/30/17(7)   16.38  0.23  0.39  0.62  (0.13)  —  (1.05)  (1.18)  —  (0.56)  15.82  3.86   6,107  2.10   2.33   2.87   13  
4/1/16 to 3/31/17   14.68  0.08  1.62  1.70  —  —  —  —  —  1.70  16.38  11.58   6,950  2.11   (9) 2.23   0.54   119  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
92

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Global Quality Dividend Fund (Continued)                                    
Class I                                    
10/1/20 to 9/30/21   $12.77  0.40  1.97  2.37  (0.38)  —  —  (0.38)  —  1.99  $14.76  18.78  % $ 11,659  1.10 %  1.27 %  2.79 %  37 % 
10/1/19 to 9/30/20   14.79  0.35  (1.99)  (1.64)  (0.38)  —  —  (0.38)  —  (2.02)  12.77  (11.47)   10,259  1.10   1.40   2.66   53  
10/1/18 to 9/30/19   15.02  0.42  0.83  1.25  (0.44)  —  (1.04)  (1.48)  —  (0.23)  14.79  9.85   7,246  1.10   1.36   3.00   35  
10/1/17 to 9/30/18   16.20  0.47  0.23  0.70  (0.66)  —  (1.22)  (1.88)  —  (1.18)  15.02  4.56   4,843  1.10   1.29   3.14   33  
4/1/17 to 9/30/17(7)   16.84  0.29  0.44  0.73  (0.32)  —  (1.05)  (1.37)  —  (0.64)  16.20  4.41   6,524  1.10   1.33   3.53   13  
4/1/16 to 3/31/17   15.12  0.25  1.65  1.90  (0.18)  —  —  (0.18)  —  1.72  16.84  12.66   7,096  1.11   (9) 1.23   1.59   119  
Class R6                                    
10/1/20 to 9/30/21   $12.81  0.45  1.97  2.42  (0.39)  —  —  (0.39)  —  2.03  $14.84  19.15  % $ 1,969  0.78 %  1.15 %  3.04 %  37 % 
10/1/19 to 9/30/20   14.80  0.39  (1.99)  (1.60)  (0.39)  —  —  (0.39)  —  (1.99)  12.81  (11.18)   90  0.78   1.27   2.92   53  
8/1/19 (11) to 9/30/19   14.23  0.08  0.49  0.57  —  —  —  —  —  0.57  14.80  4.01   104  0.78   1.27   3.39   35   (13)
                                     
KAR Mid-Cap Core Fund                                    
Class A                                    
10/1/20 to 9/30/21   $39.93  (0.29)  14.71  14.42  —  —  (0.32)  (0.32)  —  14.10  $54.03  36.25  % $ 86,713  1.20 %  1.31 %  (0.58) %  15 % 
10/1/19 to 9/30/20   35.05  (0.16)  5.19  5.03  —  —  (0.15)  (0.15)  —  4.88  39.93  14.39   56,677  1.20   1.34   (0.44)   19  
10/1/18 to 9/30/19   33.71  (0.08)  1.65  1.57  —  —  (0.23)  (0.23)  —  1.34  35.05  4.79   46,934  1.20   1.36   (0.23)   28  
10/1/17 to 9/30/18   27.95  (0.09)  5.85  5.76  —  —  —  —  —  5.76  33.71  20.61   33,120  1.20   1.39   (0.29)   21  
4/1/17 to 9/30/17(7)   25.80  (0.05)  2.29  2.24  —  —  (0.09)  (0.09)  —  2.15  27.95  8.70   26,238  1.20   1.49   (0.35)   11  
4/1/16 to 3/31/17   22.60  (0.08)  3.28  3.20  —  —  —  —  —  3.20  25.80  14.16   20,615  1.26   (9)(10) 1.55   (0.32)   28  
Class C                                    
10/1/20 to 9/30/21   $36.82  (0.61)  13.53  12.92  —  —  (0.32)  (0.32)  —  12.60  $49.42  35.23  % $ 67,627  1.95 %  2.06 %  (1.33) %  15 % 
10/1/19 to 9/30/20   32.58  (0.40)  4.79  4.39  —  —  (0.15)  (0.15)  —  4.24  36.82  13.51   49,164  1.95   2.10   (1.19)   19  
10/1/18 to 9/30/19   31.58  (0.30)  1.53  1.23  —  —  (0.23)  (0.23)  —  1.00  32.58  4.03   43,268  1.95   2.11   (0.98)   28  
10/1/17 to 9/30/18   26.38  (0.31)  5.51  5.20  —  —  —  —  —  5.20  31.58  19.71   30,661  1.95   2.14   (1.04)   21  
4/1/17 to 9/30/17(7)   24.45  (0.14)  2.16  2.02  —  —  (0.09)  (0.09)  —  1.93  26.38  8.28   17,870  1.95   2.25   (1.10)   11  
4/1/16 to 3/31/17   21.57  (0.24)  3.12  2.88  —  —  —  —  —  2.88  24.45  13.35   14,279  2.00   (9)(10) 2.28   (1.04)   28  
Class I                                    
10/1/20 to 9/30/21   $40.79  (0.17)  15.04  14.87  —  —  (0.32)  (0.32)  —  14.55  $55.34  36.59  % $1,188,000  0.95 %  1.05 %  (0.33) %  15 % 
10/1/19 to 9/30/20   35.72  (0.07)  5.29  5.22  —  —  (0.15)  (0.15)  —  5.07  40.79  14.65   658,291  0.95   1.09   (0.18)   19  
10/1/18 to 9/30/19   34.26  0.01  1.68  1.69  —  —  (0.23)  (0.23)  —  1.46  35.72  5.06   329,591  0.95   1.11   0.03   28  
10/1/17 to 9/30/18   28.34  (0.01)  5.93  5.92  —  —  —  —  —  5.92  34.26  20.93   167,649  0.95   1.14   (0.03)   21  
4/1/17 to 9/30/17(7)   26.12  (0.01)  2.32  2.31  —  —  (0.09)  (0.09)  —  2.22  28.34  8.82   69,955  0.95   1.25   (0.10)   11  
4/1/16 to 3/31/17   22.82  (0.01)  3.31  3.30  —  —  —  —  —  3.30  26.12  14.46   50,922  0.99   (9)(10) 1.26   (0.02)   28  
Class R6                                    
10/1/20 to 9/30/21   $40.89  (0.12)  15.06  14.94  —  —  (0.32)  (0.32)  —  14.62  $55.51  36.67  % $ 55,370  0.87 %  0.97 %  (0.24) %  15 % 
10/1/19 to 9/30/20   35.77  (0.04)  5.31  5.27  —  —  (0.15)  (0.15)  —  5.12  40.89  14.77   19,666  0.87   1.00   (0.10)   19  
10/1/18 to 9/30/19   34.28  0.04  1.68  1.72  —  —  (0.23)  (0.23)  —  1.49  35.77  5.15   11,323  0.87   1.01   0.11   28  
1/30/18 (11) to 9/30/18   32.78  0.02  1.48  1.50  —  —  —  —  —  1.50  34.28  4.58   2,474  0.87   1.06   0.10   21   (13)
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
93

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Mid-Cap Growth Fund                                    
Class A                                    
10/1/20 to 9/30/21   $58.05  (0.62)  14.01  13.39  —  —  (0.07)  (0.07)  —  13.32  $71.37  23.07  % $ 579,817  1.24 %  (6) 1.24 %  (0.91) %  17 % 
10/1/19 to 9/30/20   37.39  (0.42)  21.34  20.92  —  —  (0.26)  (0.26)  —  20.66  58.05  56.23   482,266  1.28   (6)(14) 1.26   (0.90)   14  
10/1/18 to 9/30/19   35.55  (0.31)  2.79  2.48  —  —  (0.64)  (0.64)  —  1.84  37.39  7.46   181,184  1.40   (6)(14) 1.33   (0.87)   28  
10/1/17 to 9/30/18   27.74  (0.28)  9.65  9.37  —  —  (1.56)  (1.56)  —  7.81  35.55  35.38   131,422  1.40   (14) 1.37   (0.88)   19  
4/1/17 to 9/30/17(7)   24.56  (0.12)  3.43  3.31  —  —  (0.13)  (0.13)  —  3.18  27.74  13.48   84,912  1.40   1.49   (0.88)   12  
4/1/16 to 3/31/17   21.92  (0.16)  3.15  2.99  —  —  (0.35)  (0.35)  —  2.64  24.56  13.81   (8) 80,648  1.41   (8)(9) 1.52   (0.75)   (8) 20  
Class C                                    
10/1/20 to 9/30/21   $45.18  (0.87)  10.87  10.00  —  —  (0.07)  (0.07)  —  9.93  $55.11  22.13  % $ 141,256  1.99 %  (6) 1.99 %  (1.66) %  17 % 
10/1/19 to 9/30/20   29.38  (0.60)  16.66  16.06  —  —  (0.26)  (0.26)  —  15.80  45.18  55.01   112,165  2.03   (6)(14) 2.02   (1.65)   14  
10/1/18 to 9/30/19   28.30  (0.47)  2.19  1.72  —  —  (0.64)  (0.64)  —  1.08  29.38  6.67   40,450  2.15   (6)(14) 2.12   (1.62)   28  
10/1/17 to 9/30/18   22.54  (0.42)  7.74  7.32  —  —  (1.56)  (1.56)  —  5.76  28.30  34.40   12,571  2.15   2.17   (1.63)   19  
4/1/17 to 9/30/17(7)   20.06  (0.17)  2.78  2.61  —  —  (0.13)  (0.13)  —  2.48  22.54  13.01   4,971  2.15   2.28   (1.63)   12  
4/1/16 to 3/31/17   18.09  (0.27)  2.59  2.32  —  —  (0.35)  (0.35)  —  1.97  20.06  13.03   (8) 5,350  2.16   (8)(9) 2.27   (1.50)   (8) 20  
Class I                                    
10/1/20 to 9/30/21   $60.16  (0.47)  14.52  14.05  —  —  (0.07)  (0.07)  —  13.98  $74.14  23.35  % $2,499,830  1.00 %  (6) 1.00 %  (0.66) %  17 % 
10/1/19 to 9/30/20   38.70  (0.33)  22.05  21.72  —  —  (0.26)  (0.26)  —  21.46  60.16  56.39   1,837,262  1.03   (6) 1.03   (0.66)   14  
10/1/18 to 9/30/19   36.66  (0.22)  2.90  2.68  —  —  (0.64)  (0.64)  —  2.04  38.70  7.79   309,892  1.11   (6)(14) 1.11   (0.58)   28  
10/1/17 to 9/30/18   28.49  (0.22)  9.95  9.73  —  —  (1.56)  (1.56)  —  8.17  36.66  35.72   56,787  1.15   (14) 1.13   (0.65)   19  
4/1/17 to 9/30/17(7)   25.20  (0.09)  3.51  3.42  —  —  (0.13)  (0.13)  —  3.29  28.49  13.58   4,419  1.15   1.27   (0.63)   12  
4/1/16 to 3/31/17   22.42  (0.11)  3.24  3.13  —  —  (0.35)  (0.35)  —  2.78  25.20  14.13   (8) 3,872  1.16   (8)(9) 1.27   (0.50)   (8) 20  
Class R6                                    
10/1/20 to 9/30/21   $60.49  (0.36)  14.62  14.26  —  —  (0.07)  (0.07)  —  14.19  $74.68  23.57  % $ 208,915  0.83 %  0.89 %  (0.50) %  17 % 
10/1/19 to 9/30/20   38.85  (0.28)  22.18  21.90  —  —  (0.26)  (0.26)  —  21.64  60.49  56.64   100,461  0.83   0.93   (0.51)   14  
10/1/18 to 9/30/19   36.71  (0.13)  2.91  2.78  —  —  (0.64)  (0.64)  —  2.14  38.85  8.05   1,975  0.85   (10)(14) 1.01   (0.34)   28  
1/30/18 (11) to 9/30/18   31.74  (0.09)  5.06  4.97  —  —  —  —  —  4.97  36.71  15.66   117  0.93   (10) 1.09   (0.40)   19   (13)
                                     
KAR Small-Cap Core Fund                                    
Class A                                    
10/1/20 to 9/30/21   $40.21  (0.11)  11.25  11.14  —  —  (3.37)  (3.37)  —  7.77  $47.98  28.68  % $ 140,807  1.26 %  1.26 %  (0.23) %  16 % 
10/1/19 to 9/30/20   38.20  (0.17)  3.84  3.67  —  —  (1.66)  (1.66)  —  2.01  40.21  9.78   112,178  1.28   1.28   (0.46)   19  
10/1/18 to 9/30/19   35.42  (0.08)  4.14  4.06  —  —  (1.28)  (1.28)  —  2.78  38.20  12.50   133,702  1.29   1.29   (0.24)   9  
10/1/17 to 9/30/18   28.05  (0.03)  7.44  7.41  —  —  (0.04)  (0.04)  —  7.37  35.42  26.42   153,109  1.29   1.29   (0.08)   13  
4/1/17 to 9/30/17(7)   24.21  (0.06)  3.91  3.85  —  —  (0.01)  (0.01)  —  3.84  28.05  15.92   79,752  1.33   1.33   (0.49)   2  
4/1/16 to 3/31/17   21.39  (0.07)  4.26  4.19  —  —  (1.37)  (1.37)  —  2.82  24.21  20.26   (8) 62,122  1.37   (8)(9) 1.37   (0.31)   (8) 24  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
94

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Small-Cap Core Fund (Continued)                                    
Class C                                    
10/1/20 to 9/30/21   $32.95  (0.35)  9.12  8.77  —  —  (3.37)  (3.37)  —  5.40  $38.35  27.74  % $ 84,992  1.99 %  1.99 %  (0.93) %  16 % 
10/1/19 to 9/30/20   31.81  (0.37)  3.17  2.80  —  —  (1.66)  (1.66)  —  1.14  32.95  8.98   89,553  2.01   2.01   (1.20)   19  
10/1/18 to 9/30/19   29.95  (0.28)  3.42  3.14  —  —  (1.28)  (1.28)  —  1.86  31.81  11.69   106,191  2.03   2.03   (0.99)   9  
10/1/17 to 9/30/18   23.90  (0.23)  6.32  6.09  —  —  (0.04)  (0.04)  —  6.05  29.95  25.52   122,439  2.02   2.02   (0.82)   13  
4/1/17 to 9/30/17(7)   20.71  (0.14)  3.34  3.20  —  —  (0.01)  (0.01)  —  3.19  23.90  15.47   56,526  2.08   2.08   (1.23)   2  
4/1/16 to 3/31/17   18.61  (0.21)  3.68  3.47  —  —  (1.37)  (1.37)  —  2.10  20.71  19.39   (8) 44,789  2.12   (8)(9) 2.12   (1.10)   (8) 24  
Class I                                    
10/1/20 to 9/30/21   $42.67  0.02  11.96  11.98  (0.06)  —  (3.37)  (3.43)  —  8.55  $51.22  29.03  % $1,278,711  1.00 %  1.00 %  0.05 %  16 % 
10/1/19 to 9/30/20   40.33  (0.07)  4.08  4.01  (0.01)  —  (1.66)  (1.67)  —  2.34  42.67  10.11   1,082,010  1.00   1.00   (0.18)   19  
10/1/18 to 9/30/19   37.26  —  (12) 4.39  4.39  (0.04)  —  (1.28)  (1.32)  —  3.07  40.33  12.83   1,202,004  1.02   1.02   0.01   9  
10/1/17 to 9/30/18   29.44  0.06  7.80  7.86  —  —  (0.04)  (0.04)  —  7.82  37.26  26.73   1,231,686  1.01   1.01   0.18   13  
4/1/17 to 9/30/17(7)   25.37  (0.03)  4.11  4.08  —  —  (0.01)  (0.01)  —  4.07  29.44  16.10   474,552  1.08   1.08   (0.23)   2  
4/1/16 to 3/31/17   22.30  (0.03)  4.47  4.44  —  —  (1.37)  (1.37)  —  3.07  25.37  20.57   (8) 338,491  1.12   (8)(9) 1.12   (0.11)   (8) 24  
Class R6                                    
10/1/20 to 9/30/21   $42.84  0.06  12.02  12.08  (0.10)  —  (3.37)  (3.47)  —  8.61  $51.45  29.14  % $ 421,653  0.92 %  0.92 %  0.12 %  16 % 
10/1/19 to 9/30/20   40.50  (0.06)  4.10  4.04  (0.04)  —  (1.66)  (1.70)  —  2.34  42.84  10.15   294,883  0.93   0.93   (0.14)   19  
10/1/18 to 9/30/19   37.40  0.04  4.40  4.44  (0.06)  —  (1.28)  (1.34)  —  3.10  40.50  12.94   107,611  0.94   0.94   0.10   9  
10/1/17 to 9/30/18   29.52  0.09  7.83  7.92  —  —  (0.04)  (0.04)  —  7.88  37.40  26.86   88,563  0.94   0.94   0.25   13  
4/1/17 to 9/30/17(7)   25.44  (0.02)  4.11  4.09  —  —  (0.01)  (0.01)  —  4.08  29.52  16.14   44,565  0.99   0.99   (0.14)   2  
4/1/16 to 3/31/17   22.33  —  (12) 4.48  4.48  —  —  (1.37)  (1.37)  —  3.11  25.44  20.68   (8) 31,338  1.01   (8)(9) 1.01   0.01   (8) 24  
                                     
KAR Small-Cap Growth Fund                                    
Class A                                    
10/1/20 to 9/30/21   $49.00  (0.52)  10.49  9.97  —  —  (5.16)  (5.16)  —  4.81  $53.81  20.46  % $ 793,106  1.34 %  (6) 1.34 %  (0.97) %  11 % 
10/1/19 to 9/30/20   37.44  (0.41)  12.59  12.18  —  —  (0.62)  (0.62)  —  11.56  49.00  32.91   772,158  1.35   (6) 1.35   (0.99)   17  
10/1/18 to 9/30/19   33.57  (0.23)  4.78  4.55  —  (0.04)  (0.64)  (0.68)  —  3.87  37.44  14.12   735,210  1.37   (6) 1.37   (0.66)   16  
10/1/17 to 9/30/18   25.43  (0.11)  8.25  8.14  —  —  —  —  —  8.14  33.57  32.01   866,966  1.37   (6) 1.37   (0.37)   13  
4/1/17 to 9/30/17(7)   21.12  (0.09)  4.40  4.31  —  (12) —  —  —  (12) —  4.31  25.43  20.41   263,281  1.50   (14) 1.46   (0.81)   1  
4/1/16 to 3/31/17   17.67  (0.14)  4.14  4.00  —  —  (0.55)  (0.55)  —  3.45  21.12  23.25   (8) 184,302  1.50   (8)(9) 1.51   (0.73)   (8) 21  
Class C                                    
10/1/20 to 9/30/21   $43.40  (0.79)  9.27  8.48  —  —  (5.16)  (5.16)  —  3.32  $46.72  19.60  % $ 319,371  2.05 %  (6) 2.05 %  (1.68) %  11 % 
10/1/19 to 9/30/20   33.46  (0.63)  11.19  10.56  —  —  (0.62)  (0.62)  —  9.94  43.40  31.97   322,672  2.07   (6) 2.07   (1.72)   17  
10/1/18 to 9/30/19   30.30  (0.44)  4.28  3.84  —  (0.04)  (0.64)  (0.68)  —  3.16  33.46  13.28   291,693  2.10   (6) 2.10   (1.40)   16  
10/1/17 to 9/30/18   23.13  (0.31)  7.48  7.17  —  —  —  —  —  7.17  30.30  31.00   301,749  2.10   (6) 2.10   (1.10)   13  
4/1/17 to 9/30/17(7)   19.28  (0.17)  4.02  3.85  —  (12) —  —  —  (12) —  3.85  23.13  19.97   93,560  2.25   (14) 2.21   (1.56)   1  
4/1/16 to 3/31/17   16.30  (0.26)  3.79  3.53  —  —  (0.55)  (0.55)  —  2.98  19.28  22.30   (8) 58,327  2.26   (8)(9) 2.26   (1.49)   (8) 21  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
95

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Small-Cap Growth Fund (Continued)                                    
Class I                                    
10/1/20 to 9/30/21   $50.25  (0.38)  10.75  10.37  —  —  (5.16)  (5.16)  —  5.21  $55.46  20.77  % $5,346,986  1.07 %  (6) 1.07 %  (0.70) %  11 % 
10/1/19 to 9/30/20   38.28  (0.31)  12.90  12.59  —  —  (0.62)  (0.62)  —  11.97  50.25  33.27   5,251,980  1.09   (6) 1.09   (0.74)   17  
10/1/18 to 9/30/19   34.21  (0.14)  4.89  4.75  —  (0.04)  (0.64)  (0.68)  —  4.07  38.28  14.44   3,973,860  1.11   (6) 1.11   (0.40)   16  
10/1/17 to 9/30/18   25.86  (0.03)  8.38  8.35  —  —  —  —  —  8.35  34.21  32.29   4,121,658  1.10   (6) 1.10   (0.10)   13  
4/1/17 to 9/30/17(7)   21.45  (0.07)  4.48  4.41  —  (12) —  —  —  (12) —  4.41  25.86  20.56   1,087,430  1.25   (14) 1.21   (0.55)   1  
4/1/16 to 3/31/17   17.89  (0.10)  4.21  4.11  —  —  (0.55)  (0.55)  —  3.56  21.45  23.59   (8) 489,593  1.26   (8)(9) 1.26   (0.50)   (8) 21  
Class R6                                    
10/1/20 to 9/30/21   $50.39  (0.32)  10.77  10.45  —  —  (5.16)  (5.16)  —  5.29  $55.68  20.88  % $ 205,549  0.98 %  (6) 0.98 %  (0.58) %  11 % 
10/1/19 to 9/30/20   38.35  (0.29)  12.95  12.66  —  —  (0.62)  (0.62)  —  12.04  50.39  33.39   95,061  0.99   (6) 0.99   (0.68)   17  
10/1/18 to 9/30/19   34.23  (0.12)  4.92  4.80  —  (0.04)  (0.64)  (0.68)  —  4.12  38.35  14.58   45,306  1.00   (6) 1.00   (0.31)   16  
1/30/18 (11) to 9/30/18   29.81  0.01  4.41  4.42  —  —  —  —  —  4.42  34.23  14.83   13,800  1.00   (6) 1.00   0.05   13  
                                     
KAR Small-Cap Value Fund                                    
Class A                                    
10/1/20 to 9/30/21   $19.97  0.04  7.42  7.46  (0.15)  —  —  (0.15)  —  7.31  $27.28  37.45  % $ 130,975  1.20 %  (6) 1.20 %  0.14 %  13 % 
10/1/19 to 9/30/20   18.33  0.12  1.63  1.75  (0.11)  —  —  (0.11)  —  1.64  19.97  9.57   83,622  1.23   (6) 1.23   0.66   19  
10/1/18 to 9/30/19   19.44  0.14  (0.93)  (0.79)  (0.13)  —  (0.19)  (0.32)  —  (1.11)  18.33  (3.82)   79,027  1.24   (6) 1.24   0.80   14  
10/1/17 to 9/30/18   18.41  0.10  1.23  1.33  (0.01)  —  (0.29)  (0.30)  —  1.03  19.44  7.27   83,276  1.27   (6) 1.27   0.55   6  
4/1/17 to 9/30/17(7)   17.61  0.03  1.44  1.47  (0.02)  —  (0.65)  (0.67)  —  0.80  18.41  8.56   87,399  1.32   (6) 1.32   0.29   10  
4/1/16 to 3/31/17   15.67  0.22  3.16  3.38  (0.26)  —  (1.18)  (1.44)  —  1.94  17.61  22.86   89,050  1.32   (6)(9) 1.32   1.35   22  
Class C                                    
10/1/20 to 9/30/21   $19.44  (0.16)  7.24  7.08  (0.01)  —  —  (0.01)  —  7.07  $26.51  36.44  % $ 21,623  1.96 %  (6) 1.96 %  (0.60) %  13 % 
10/1/19 to 9/30/20   17.88  (0.01)  1.57  1.56  —  —  —  —  —  1.56  19.44  8.72   16,233  1.98   (6) 1.98   (0.08)   19  
10/1/18 to 9/30/19   18.96  0.01  (0.90)  (0.89)  —  —  (0.19)  (0.19)  —  (1.08)  17.88  (4.56)   15,361  1.99   (6) 1.99   0.09   14  
10/1/17 to 9/30/18   18.08  (0.03)  1.20  1.17  —  —  (0.29)  (0.29)  —  0.88  18.96  6.54   29,922  1.97   (6) 1.97   (0.14)   6  
4/1/17 to 9/30/17(7)   17.35  (0.04)  1.42  1.38  —  —  (0.65)  (0.65)  —  0.73  18.08  8.17   29,795  2.06   (6) 2.06   (0.45)   10  
4/1/16 to 3/31/17   15.45  0.10  3.11  3.21  (0.13)  —  (1.18)  (1.31)  —  1.90  17.35  21.95   29,416  2.07   (6)(9) 2.07   0.65   22  
Class I                                    
10/1/20 to 9/30/21   $19.97  0.10  7.43  7.53  (0.20)  —  —  (0.20)  —  7.33  $27.30  37.83  % $1,190,498  0.96 %  (6) 0.96 %  0.38 %  13 % 
10/1/19 to 9/30/20   18.34  0.18  1.60  1.78  (0.15)  —  —  (0.15)  —  1.63  19.97  9.75   711,421  0.99   (6) 0.99   0.94   19  
10/1/18 to 9/30/19   19.49  0.18  (0.94)  (0.76)  (0.20)  —  (0.19)  (0.39)  —  (1.15)  18.34  (3.57)   484,123  1.01   (6) 1.01   1.02   14  
10/1/17 to 9/30/18   18.41  0.16  1.23  1.39  (0.02)  —  (0.29)  (0.31)  —  1.08  19.49  7.62   475,103  0.99   (6) 0.99   0.84   6  
4/1/17 to 9/30/17(7)   17.62  0.05  1.43  1.48  (0.04)  —  (0.65)  (0.69)  —  0.79  18.41  8.72   300,259  1.07   (6) 1.07   0.55   10  
4/1/16 to 3/31/17   15.69  0.26  3.17  3.43  (0.32)  —  (1.18)  (1.50)  —  1.93  17.62  23.20   242,661  1.07   (6)(9) 1.07   1.63   22  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
96

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Small-Cap Value Fund (Continued)                                    
Class R6                                    
10/1/20 to 9/30/21   $20.00  0.12  7.43  7.55  (0.22)  —  —  (0.22)  —  7.33  $27.33  37.85  % $ 81,914  0.89 %  (6) 0.89 %  0.46 %  13 % 
10/1/19 to 9/30/20   18.36  0.19  1.62  1.81  (0.17)  —  —  (0.17)  —  1.64  20.00  9.90   12,246  0.89   (6) 0.89   1.01   19  
10/1/18 to 9/30/19   19.51  0.20  (0.94)  (0.74)  (0.22)  —  (0.19)  (0.41)  —  (1.15)  18.36  (3.47)   11,286  0.90   (6) 0.90   1.11   14  
10/1/17 to 9/30/18   18.42  0.18  1.22  1.40  (0.02)  —  (0.29)  (0.31)  —  1.09  19.51  7.69   21,746  0.90   (6) 0.90   0.96   6  
4/1/17 to 9/30/17(7)   17.63  0.05  1.44  1.49  (0.05)  —  (0.65)  (0.70)  —  0.79  18.42  8.78   10,165  0.99   (6) 0.99   0.52   10  
11/3/16 (11) to 3/31/17   14.90  0.05  3.15  3.20  (0.22)  —  (0.25)  (0.47)  —  2.73  17.63  21.58   122  0.98   (6) 0.98   0.68   22   (13)
                                     
KAR Small-Mid Cap Core Fund                                    
Class A                                    
10/1/20 to 9/30/21   $14.43  (0.14)  4.38  4.24  —  —  —  —  —  4.24  $18.67  29.38  % $ 48,485  1.30 %  1.30 %  (0.77) %  7 % 
10/1/19 to 9/30/20   11.53  (0.03)  2.93  2.90  —  —  —  —  —  2.90  14.43  25.15   19,735  1.30   1.39   (0.23)   31  
10/1/18 to 9/30/19   10.79  (0.03)  0.89  0.86  —  —  (0.12)  (0.12)  —  0.74  11.53  8.32   1,473  1.30   2.25   (0.28)   21  
3/7/18 (11) to 9/30/18   10.00  (0.02)  0.81  0.79  —  —  —  —  —  0.79  10.79  7.90   158  1.30   5.84   (0.38)   16   (13)
Class C                                    
10/1/20 to 9/30/21   $14.16  (0.27)  4.29  4.02  —  —  —  —  —  4.02  $18.18  28.39  % $ 30,401  2.05 %  (6)(14) 2.03 %  (1.52) %  7 % 
10/1/19 to 9/30/20   11.40  (0.12)  2.88  2.76  —  —  —  —  —  2.76  14.16  24.21   10,210  2.05   2.08   (0.97)   31  
10/1/18 to 9/30/19   10.75  (0.11)  0.88  0.77  —  —  (0.12)  (0.12)  —  0.65  11.40  7.50   1,106  2.05   2.92   (1.05)   21  
3/7/18 (11) to 9/30/18   10.00  (0.07)  0.82  0.75  —  —  —  —  —  0.75  10.75  7.50   135  2.05   6.48   (1.14)   16   (13)
Class I                                    
10/1/20 to 9/30/21   $14.51  (0.09)  4.40  4.31  —  (12) —  —  —  (12) —  4.31  $18.82  29.72  % $1,168,320  1.02 %  (6)(14) 1.01 %  (0.49) %  7 % 
10/1/19 to 9/30/20   11.56  0.01  2.94  2.95  —  —  —  —  —  2.95  14.51  25.52   439,899  1.05   1.09   0.07   31  
10/1/18 to 9/30/19   10.81  (0.01)  0.89  0.88  (0.01)  —  (0.12)  (0.13)  —  0.75  11.56  8.51   24,898  1.05   1.99   (0.05)   21  
3/7/18 (11) to 9/30/18   10.00  (0.01)  0.82  0.81  —  —  —  —  —  0.81  10.81  8.10   214  1.05   5.74   (0.13)   16   (13)
Class R6                                    
10/1/20 to 9/30/21   $14.54  (0.08)  4.42  4.34  (0.01)  —  —  (0.01)  —  4.33  $18.87  29.82  % $ 16,335  0.97 %  (6)(14) 0.92 %  (0.44) %  7 % 
10/1/19 to 9/30/20   11.57  —  (12) 2.97  2.97  —  —  —  —  —  2.97  14.54  25.67   8,366  0.97   0.99   0.03   31  
10/1/18 to 9/30/19   10.81  0.01  0.88  0.89  (0.01)  —  (0.12)  (0.13)  —  0.76  11.57  8.61   3,125  0.97   1.91   0.06   21  
3/7/18 (11) to 9/30/18   10.00  (—)  (12) 0.81  0.81  —  —  —  —  —  0.81  10.81  8.10   2,919  0.97   5.20   (0.07)   16   (13)
                                     
KAR Small-Mid Cap Growth Fund                                    
Class A                                    
12/8/20 (11) to 9/30/21   $10.00  (0.09)  0.79  0.70  —  —  —  —  —  0.70  $10.70  7.00  % $ 725  1.30 %  4.06 %  (1.05) %  14 %  (13)
Class C                                    
12/8/20 (11) to 9/30/21   $10.00  (0.15)  0.78  0.63  —  —  —  —  —  0.63  $10.63  6.30  % $ 119  2.05 %  4.88 %  (1.82) %  14 %  (13)
Class I                                    
12/8/20 (11) to 9/30/21   $10.00  (0.07)  0.79  0.72  —  —  —  —  —  0.72  $10.72  7.20  % $ 1,998  1.05 %  3.83 %  (0.79) %  14 %  (13)
Class R6                                    
12/8/20 (11) to 9/30/21   $10.00  (0.07)  0.80  0.73  —  —  —  —  —  0.73  $10.73  7.30  % $ 3,241  0.99 %  3.79 %  (0.76) %  14 %  (13)
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
97

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Small-Mid Cap Value Fund                                    
Class A                                    
8/3/21 (11) to 9/30/21   $10.00  —  (12) (0.36)  (0.36)  —  —  —  —  —  (0.36)  $ 9.64  (3.60)  % $ 127  1.17 %  12.81 %  0.09 %  0 % 
Class C                                    
8/3/21 (11) to 9/30/21   $10.00  (0.01)  (0.36)  (0.37)  —  —  —  —  —  (0.37)  $ 9.63  (3.70)  % $ 99  1.92 %  13.87 %  (0.71) %  0 % 
Class I                                    
8/3/21 (11) to 9/30/21   $10.00  —  (12) (0.36)  (0.36)  —  —  —  —  —  (0.36)  $ 9.64  (3.60)  % $ 97  0.92 %  12.88 %  0.29 %  0 % 
Class R6                                    
8/3/21 (11) to 9/30/21   $10.00  0.01  (0.36)  (0.35)  —  —  —  —  —  (0.35)  $ 9.65  (3.50)  % $ 2,604  0.82 %  12.82 %  0.47 %  0 % 
                                     
SGA Emerging Markets Growth Fund                                    
Class A                                    
10/1/20 to 9/30/21   $11.90  (0.09)  1.28  1.19  —  —  (0.27)  (0.27)  —  0.92  $12.82  9.93  % $ 206  1.48 %  2.91 %  (0.66) %  46 % 
10/1/19 to 9/30/20   9.97  (0.05)  1.98  1.93  —  —  —  (12) —  (12) —  1.93  11.90  19.37   169  1.48   3.98   (0.47)   44  
6/13/19 (11) to 9/30/19   10.00  (0.02)  (0.01)  (0.03)  —  —  —  —  —  (0.03)  9.97  (0.30)   100  1.48   9.63   (0.57)   6   (13)
Class C                                    
10/1/20 to 9/30/21   $11.79  (0.19)  1.27  1.08  —  —  (0.27)  (0.27)  —  0.81  $12.60  9.08  % $ 159  2.23 %  3.66 %  (1.42) %  46 % 
10/1/19 to 9/30/20   9.95  (0.13)  1.97  1.84  —  —  —  (12) —  (12) —  1.84  11.79  18.50   142  2.23   4.70   (1.19)   44  
6/13/19 (11) to 9/30/19   10.00  (0.04)  (0.01)  (0.05)  —  —  —  —  —  (0.05)  9.95  (0.50)   100  2.23   10.38   (1.32)   6   (13)
Class I                                    
10/1/20 to 9/30/21   $11.94  (0.06)  1.29  1.23  —  —  (0.27)  (0.27)  —  0.96  $12.90  10.24  % $ 405  1.23 %  2.67 %  (0.42) %  46 % 
10/1/19 to 9/30/20   9.98  (0.03)  1.99  1.96  —  —  —  (12) —  (12) —  1.96  11.94  19.65   247  1.23   3.57   (0.30)   44  
6/13/19 (11) to 9/30/19   10.00  (0.01)  (0.01)  (0.02)  —  —  —  —  —  (0.02)  9.98  (0.20)   109  1.23   9.38   (0.32)   6   (13)
Class R6                                    
10/1/20 to 9/30/21   $11.97  (0.03)  1.28  1.25  —  —  (0.27)  (0.27)  —  0.98  $12.95  10.38  % $ 5,425  1.05 %  2.63 %  (0.24) %  46 % 
10/1/19 to 9/30/20   9.98  —  (12) 1.99  1.99  —  —  —  (12) —  (12) —  1.99  11.97  19.95   4,828  1.05   3.72   (0.02)   44  
6/13/19 (11) to 9/30/19   10.00  —  (12) (0.02)  (0.02)  —  —  —  —  —  (0.02)  9.98  (0.20)   4,032  1.05   9.38   (0.14)   6   (13)
                                     
SGA Global Growth Fund                                    
Class A                                    
10/1/20 to 9/30/21   $26.54  (0.24)  5.33  5.09  —  —  (0.94)  (0.94)  —  4.15  $30.69  19.49  % $ 34,690  1.38 %  1.47 %  (0.79) %  40 % 
10/1/19 to 9/30/20   20.98  (0.12)  5.68  5.56  —  —  —  —  —  5.56  26.54  26.50   26,504  1.36   (6) 1.36   (0.53)   49  
2/1/19 to 9/30/19(7)   18.58  (0.01)  2.41  2.40  —  —  —  —  —  2.40  20.98  12.92   4,219  1.37   1.48   (0.06)   13  
2/1/18 to 1/31/19   19.72  (0.05)  (0.32)  (0.37)  —  —  (0.77)  (0.77)  —  (1.14)  18.58  (1.46)   3,786  1.38   1.60   (0.28)   54  
2/1/17 to 1/31/18   14.89  (0.02)  5.49  5.47  —  —  (0.64)  (0.64)  —  4.83  19.72  37.05   3,835  1.38   1.72   (0.43)   31  
2/1/16 to 1/31/17   13.65  0.03  1.76  1.79  —  —  (0.55)  (0.55)  —  1.24  14.89  13.21   1,028  1.38   2.33   (0.27)   32  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
98

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
SGA Global Growth Fund (Continued)                                    
Class C                                    
10/1/20 to 9/30/21   $25.06  (0.43)  5.02  4.59  —  —  (0.94)  (0.94)  —  3.65  $28.71  18.62  % $ 7,326  2.13 %  2.14 %  (1.54) %  40 % 
10/1/19 to 9/30/20   19.97  (0.29)  5.38  5.09  —  —  —  —  —  5.09  25.06  25.49   5,210  2.13   2.14   (1.35)   49  
2/1/19 to 9/30/19(7)   17.77  (0.11)  2.31  2.20  —  —  —  —  —  2.20  19.97  12.38   3,554  2.10   2.20   (0.83)   13  
2/1/18 to 1/31/19   19.04  (0.04)  (0.46)  (0.50)  —  —  (0.77)  (0.77)  —  (1.27)  17.77  (2.20)   3,164  2.13   2.39   (1.08)   54  
2/1/17 to 1/31/18   14.50  (0.04)  5.22  5.18  —  —  (0.64)  (0.64)  —  4.54  19.04  36.04   2,062  2.13   2.47   (1.08)   31  
2/1/16 to 1/31/17   13.40  0.05  1.60  1.65  —  —  (0.55)  (0.55)  —  1.10  14.50  12.41   989  2.12   3.08   (1.00)   32  
Class I*                                    
10/1/20 to 9/30/21   $26.66  (0.16)  5.35  5.19  —  —  (0.94)  (0.94)  —  4.25  $30.91  19.78  % $ 53,546  1.13 %  1.15 %  (0.52) %  40 % 
10/1/19 to 9/30/20   21.03  (0.08)  5.71  5.63  —  (12) —  —  —  (12) —  5.63  26.66  26.79   27,529  1.13   1.20   (0.34)   49  
2/1/19 to 9/30/19(7)   18.61  —  (12) 2.42  2.42  —  —  —  —  —  2.42  21.03  13.00   12,807  1.19   1.28   (0.02)   13  
2/1/18 to 1/31/19   19.75  (0.21)  (0.16)  (0.37)  —  —  (0.77)  (0.77)  —  (1.14)  18.61  (1.46)   5,878  1.36   1.50   (0.15)   54  
2/1/17 to 1/31/18   14.90  (0.04)  5.53  5.49  —  —  (0.64)  (0.64)  —  4.85  19.75  37.16   19,474  1.36   1.57   (0.29)   31  
2/1/16 to 1/31/17   13.66  0.06  1.73  1.79  —  —  (0.55)  (0.55)  —  1.24  14.90  13.20   11,414  1.34   2.05   (0.43)   32  
Class R6**                                    
10/1/20 to 9/30/21   $27.38  (0.10)  5.51  5.41  —  —  (0.94)  (0.94)  —  4.47  $31.85  20.07  % $ 80,122  0.90 %  1.03 %  (0.31) %  40 % 
10/1/19 to 9/30/20   21.56  (0.03)  5.86  5.83  (0.01)  —  —  (0.01)  —  5.82  27.38  27.06   72,376  0.90   1.08   (0.11)   49  
2/1/19 to 9/30/19(7)   19.04  0.05  2.47  2.52  —  —  —  —  —  2.52  21.56  13.24   40,690  0.95   1.16   0.34   13  
2/1/18 to 1/31/19   20.11  0.01  (0.31)  (0.30)  —  —  (0.77)  (0.77)  —  (1.07)  19.04  (1.08)   28,819  0.98   1.31   0.07   54  
2/1/17 to 1/31/18   15.11  (0.01)  5.65  5.64  —  —  (0.64)  (0.64)  —  5.00  20.11  37.64   15,913  0.98   1.34   0.08   31  
2/1/16 to 1/31/17   13.79  0.03  1.84  1.87  —  —  (0.55)  (0.55)  —  1.32  15.11  13.66   7,698  0.98   2.03   0.21   32  
                                     
SGA New Leaders Growth Fund                                    
Class A                                    
11/17/20 (11) to 9/30/21   $10.00  (0.09)  0.74  0.65  —  —  —  —  —  0.65  $10.65  6.50  % $ 110  1.39 %  3.60 %  (1.01) %  24 %  (13)
Class C                                    
11/17/20 (11) to 9/30/21   $10.00  (0.16)  0.74  0.58  —  —  —  —  —  0.58  $10.58  5.80  % $ 108  2.14 %  4.35 %  (1.76) %  24 %  (13)
Class I                                    
11/17/20 (11) to 9/30/21   $10.00  (0.07)  0.74  0.67  —  —  —  —  —  0.67  $10.67  6.70  % $ 163  1.14 %  3.32 %  (0.76) %  24 %  (13)
Class R6                                    
11/17/20 (11) to 9/30/21   $10.00  (0.05)  0.74  0.69  —  —  —  —  —  0.69  $10.69  6.90  % $ 6,267  0.91 %  3.25 %  (0.54) %  24 %  (13)
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
99

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
Tactical Allocation Fund                                    
Class A                                    
10/1/20 to 9/30/21   $12.10  0.04  1.97  2.01  (0.05)  —  (0.20)  (0.25)  —  1.76  $13.86  16.69  % $ 869,209  1.01 %  (9)(10) 1.07 %  0.30 %  46 % 
10/1/19 to 9/30/20   9.51  0.07  2.71  2.78  (0.07)  —  (0.12)  (0.19)  —  2.59  12.10  29.72   683,100  1.06   (6) 1.06   0.68   35  
10/1/18 to 9/30/19   9.66  0.13  0.06  0.19  (0.12)  —  (0.22)  (0.34)  —  (12) (0.15)  9.51  2.36   (15) 569,543  1.14   (6) 1.14   1.33   51  
10/1/17 to 9/30/18   9.00  0.14  0.73  0.87  (0.14)  —  (0.07)  (0.21)  —  0.66  9.66  9.73   146,854  1.26   1.27   1.47   41  
4/1/17 to 9/30/17(7)   8.33  0.08  0.69  0.77  (0.08)  —  (0.02)  (0.10)  —  0.67  9.00  9.25   142,481  1.38   1.38   1.81   26  
4/1/16 to 3/31/17   8.44  0.17  0.56  0.73  (0.15)  —  (0.69)  (0.84)  —  (0.11)  8.33  9.20   (8) 137,388  1.37   (8)(9) 1.38   1.86   (8) 104  
Class C                                    
10/1/20 to 9/30/21   $12.44  (0.06)  2.02  1.96  (0.01)  —  (0.20)  (0.21)  —  1.75  $14.19  15.82  % $ 33,401  1.77 %  (9)(10) 1.88 %  (0.46) %  46 % 
10/1/19 to 9/30/20   9.78  (0.01)  2.80  2.79  (0.01)  —  (0.12)  (0.13)  —  2.66  12.44  28.82   12,140  1.83   (6)(14) 1.78   (0.10)   35  
10/1/18 to 9/30/19   9.93  0.06  0.05  0.11  (0.04)  —  (0.22)  (0.26)  —  (12) (0.15)  9.78  1.48   (15) 8,560  1.91   (10) 1.99   0.59   51  
10/1/17 to 9/30/18   9.24  0.07  0.75  0.82  (0.06)  —  (0.07)  (0.13)  —  0.69  9.93  8.94   3,736  2.04   2.05   0.68   41  
4/1/17 to 9/30/17(7)   8.55  0.05  0.70  0.75  (0.04)  —  (0.02)  (0.06)  —  0.69  9.24  8.80   4,054  2.14   2.15   1.05   26  
4/1/16 to 3/31/17   8.64  0.11  0.57  0.68  (0.08)  —  (0.69)  (0.77)  —  (0.09)  8.55  8.37   (8) 4,378  2.11   (8)(9) 2.13   1.13   (8) 104  
Class I                                    
10/1/20 to 9/30/21   $12.07  0.07  1.96  2.03  (0.08)  —  (0.20)  (0.28)  —  1.75  $13.82  16.88  % $ 51,887  0.78 %  (9)(10) 0.86 %  0.55 %  46 % 
10/1/19 to 9/30/20   9.51  0.08  2.70  2.78  (0.10)  —  (0.12)  (0.22)  —  2.56  12.07  29.74   26,526  0.82   (6) 0.82   0.73   35  
1/29/19 (11) to 9/30/19   8.66  0.10  0.85  0.95  (0.10)  —  —  (0.10)  —  (12) 0.85  9.51  10.94   (15) 2,813  0.88   (6) 0.89   1.52   51   (13)
Class R6                                    
10/20/20 (11) to 9/30/21   $12.48  0.09  1.55  1.64  (0.09)  —  (0.20)  (0.29)  —  1.35  $13.83  13.23  % $ 112  0.62 %  (9) 0.86 %  0.70 %  46 %  (13)
    
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
100

Table of Contents
VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
Footnote Legend:
* On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. The Class I shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Investor Class shares.
** On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. The Class R6 shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Institutional Class shares.
(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) The share class is currently under its expense limitation.
(7) The Fund changed its fiscal year end to September 30, during the period.
(8) State Street Bank & Trust, custodian for some of the Funds through January 29, 2010, reimbursed the Funds for out-of-pocket custody expenses overbilled for the period 1998 through January 29, 2010. Custody fees reimbursed were excluded from the Ratio of Net Expenses to Average Net Assets and Ratio of Net Investment Income (Loss) to Average Net Assets. If included, the impact would have been to lower the Ratio of Net Expenses and increase the Ratio of Net Investment Income (Loss) as follows:
KAR Capital Growth Fund 0.06% (Class A), 0.05% (Class C), 0.06% (Class I)
KAR Equity Income Fund amounts are less than 0.005% for Classes A, C, and I, respectively
KAR Mid-Cap Growth Fund 0.05% (Class A), 0.05% (Class C), 0.05% (Class I)
KAR Small-Cap Core Fund amounts are less than 0.005% for Classes A, C, I, and R6, respectively
KAR Small-Cap Growth Fund amounts are less than 0.005% for Classes A, C, and I, respectively
Tactical Allocation Fund 0.08% (Class A), 0.08% (Class C)

Custody fees reimbursed were included in Total Return. If excluded, the impact would have been to lower the Total Return as follows:
KAR Capital Growth Fund 0.06% (Class A), 0.06% (Class C), 0.06% (Class I)
KAR Equity Income Fund amounts are less than 0.005% for Classes A, C, and I, respectively
KAR Mid-Cap Growth Fund 0.05% (Class A), 0.05% (Class C), 0.05% (Class I)
KAR Small-Cap Core Fund amounts are less than 0.005% for Classes A, C, I, and R6, respectively
KAR Small-Cap Growth Fund amounts are less than 0.005% for Classes A, C, and I, respectively
Tactical Allocation Fund 0.08% (Class A), 0.08% (Class C)
(9) Net expense ratio includes extraordinary proxy expenses.
(10) Due to a change in expense cap, the ratio shown is a blended expense ratio.
(11) Inception date.
(12) Amount is less than $0.005 per share.
(13) Portfolio turnover is representative of the Fund for the entire period.
(14) See Note 3D in Notes to Financial Statements for information on recapture of expenses previously reimbursed and/or waived.
(15) Payment from affiliates had no impact on total return.
See Notes to Financial Statements
101

Table of Contents
VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS September 30, 2021
Note 1. Organization
Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
As of the date of this report, the Trust is comprised of 15 funds (each a “Fund” or collectively the “Funds”), each reported in this annual report. Each Fund’s investment objective is outlined in its respective Fund Summary page. There is no guarantee that a Fund will achieve its objective(s).
All of the Funds offer Class A shares, Class C shares, Class I shares, and Class R6 shares.
Effective February 1, 2021, Class A shares of the Funds are sold with a front-end sales charge of up to 5.50% with some exceptions. Prior to February 1, 2021, Class A shares were sold with a front-end sales charge of up to 5.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Funds when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which such CDSC applies for the Funds is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.
Class C shares are generally sold with a 1% CDSC, applicable if redeemed within one year of purchase. Class C shares and any reinvested dividends and other distributions paid on such shares, will be automatically converted to Class A shares of the same Fund following a required holding period, which as of March 1, 2021, was eight years. Effective January 1, 2019, to February 28, 2021, with certain exceptions, Class C shares and any reinvested dividends and other distributions paid on such shares, were automatically converted to Class A shares of the same Fund ten years after the purchase date. If an investor intends to purchase greater than $999,999 of Class C 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. Class I shares and Class R6 shares are sold without a front-end sales charge or CDSC.
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; and (vi) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 shares subject to the applicable 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 do not carry sales commissions or pay Rule 12b-1 fees. No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from Fund assets or the Funds’ distributor’s or an affiliate’s resources on sales of or investments in Class R6 shares.
The Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectuses and/or statement of additional information. The fees collected will be used to offset certain expenses of the Funds. These fees are reflected as “Less low balance account fees” in each Fund’s Statement of Operations for the period, as applicable.
Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears any expenses attributable specifically to that class (“class-specific expenses”) and has exclusive voting rights with respect to any Rule 12b-1 and/or shareholder service plan (“12b-1 Plan”) approved by the Board. Class I shares and Class R6 shares are not subject to a 12b-1 Plan. Class-specific expenses may include shareholder servicing fees, sub-transfer agency fees, and fees under a 12b-1 Plan, as well as certain other expenses as designated by the Funds’ Treasurer and approved by the Board. Investment income, common operating expenses and realized and unrealized gains and losses of each Fund are borne pro-rata by the holders of each class of shares.
Note 2. Significant Accounting Policies
($ reported in thousands)
The Trust is an investment company that follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be significant.
A. Security Valuation
  Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers into or out of Level 3 at the end of the reporting period.
   • Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).
     •    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
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     •    Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).
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 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 net asset value (“NAV”) at the close of regular trading on the New York Stock Exchange (“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. 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 convertible bonds, and 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 that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, activity of the underlying equities, 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 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 internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives, such as options, 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 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 NAV. Investments in closed-end funds and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is categorized as Level 1 in the hierarchy.
A summary of the inputs used to value a Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
B. Security Transactions and Investment Income
  Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as a Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method. Premiums on callable debt securities are amortized to interest income to the earliest call date using the effective interest method. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
  Dividend income from REITs is recorded using management’s estimate of the percentage of income included in distributions received from such investments based on historical information and other industry sources. The return of capital portion of the estimate is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed their cost basis, the distributions are treated as realized gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.
C. Income Taxes
  Each Fund is treated as a separate taxable entity. It is the intention of each Fund to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.
  Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.
  Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Each Fund’s U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State, local and/or non-U.S. tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction.
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D. Distributions to Shareholders
  Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP.
E. Expenses
  Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each Fund or an alternative allocation method can be more appropriately used.
  In addition to the net annual operating expenses that a Fund bears directly, the shareholders of a Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests.
F. Foreign Currency Transactions
  Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. The Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
G. Payment In-Kind Securities
  Certain Funds may invest in payment in-kind securities, which are debt or preferred stock 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.
H. When-issued Purchases and Forward Commitments (Delayed Delivery)
  Certain Funds may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Funds 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. Each Fund records when-issued and forward commitment securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.
I. Leveraged Loans
  Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.
  A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.
  The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased a Fund may pay an assignment fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.
J. Securities Lending
  Effective October 1, 2020, the Funds may resume loaning securities to qualified brokers through a securities lending agency agreement with The Bank of New York Mellon (“BNYM”). Under the securities lending policy, when lending securities a Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged/paid by BNYM for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.
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  Securities lending transactions are entered into by each Fund under a Master Securities Lending Agreement (“MSLA”) which permits the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
  At September 30, 2021, the securities loaned were subject to a MSLA on a net payment basis as follows:
    
Fund   Value of
Securities
on Loan 		  Cash
Collateral
Received(1) 		  Net
Amount(2)
KAR Equity Income Fund
   $ 1,858   $ 1,858   $ —
Tactical Allocation Fund
   1,236   1,236   —
(1) Collateral received in excess of the market value of securities on loan is not presented in this table. The cash collateral received in connection with securities lending transactions has been used for the purchase of securities as disclosed in the Fund’s Schedule of Investments.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of September 30, 2021 for the Funds:
Fund   Securities Lending
Transactions 		  Overnight
and
continuous
KAR Equity Income Fund
   Money Market Mutual Fund   $1,905
Tactical Allocation Fund
   Money Market Mutual Fund   1,267
Note 3. Investment Advisory Fees and Related Party Transactions
($ reported in thousands)
A. Investment Adviser
  Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Funds. The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadvisers.
  As compensation for its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly based upon the following annual rates as a percentage of the average daily net assets of each Fund:
    
KAR Small-Cap Core Fund
 0.75 %
KAR Small-Cap Value Fund
 0.70
    
  First $400 Million   $400+ Million through
$1 Billion 		  $1+ Billion
KAR Small-Cap Growth Fund
 0.90 %   0.85 %   0.80  %
    
  First $500 Million   Over $500 Million
KAR Mid-Cap Growth Fund
 0.80 %   0.70 %
    
  First $1 Billion   $1+ Billion
KAR Small-Mid Cap Core Fund
 0.75 %   0.70  %
KAR Small-Mid Cap Growth Fund
 0.75   0.70  
KAR Small-Mid Cap Value Fund
 0.65   0.60  
SGA Emerging Markets Growth Fund
 1.00   0.95  
SGA Global Growth Fund
 0.80   0.75  
SGA New Leaders Growth Fund
 0.80   0.75  
    
  First $1 Billion   $1+ Billion through
$2 Billion 		  $2+ Billion
KAR Capital Growth Fund
 0.70 %   0.65  %   0.60 %
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  First $1 Billion   $1+ Billion through
$2 Billion 		  $2+ Billion
KAR Equity Income Fund
 0.75%   0.70  %   0.65%
KAR Global Quality Dividend Fund
 0.75   0.70     0.65
KAR Mid-Cap Core Fund
 0.80   0.75     0.70
Tactical Allocation Fund
 0.55   0.50     0.45
B. Subadvisers
  The subadvisers manage the investments of each Fund for which they are paid a fee by the Adviser. A list of the subadvisers and the Funds they serve as of the end of the period is as follows:
    
Fund   Subadviser
KAR Capital Growth Fund
 
KAR(1)
KAR Equity Income Fund
 
KAR(1)
KAR Global Quality Dividend Fund
 
KAR(1)
KAR Mid-Cap Core Fund
 
KAR(1)
KAR Mid-Cap Growth Fund
 
KAR(1)
KAR Small-Cap Core Fund
 
KAR(1)
KAR Small-Cap Growth Fund
 
KAR(1)
KAR Small-Cap Value Fund
 
KAR(1)
KAR Small-Mid Cap Core Fund
 
KAR(1)
KAR Small-Mid Cap Growth Fund
 
KAR(1)
KAR Small-Mid Cap Value Fund
 
KAR(1)
SGA Emerging Markets Growth Fund
 
SGA(2)
SGA Global Growth Fund
 
SGA(2)
SGA New Leaders Growth Fund
 
SGA(2)
Tactical Allocation Fund (Equity Portfolio)
 
KAR(1)
Tactical Allocation Fund (Fixed Income Portfolio)
 
Newfleet(3)
(1) Kayne Anderson Rudnick Investment Management, LLC (“KAR”), an indirect, wholly-owned subsidiary of Virtus.
(2) Sustainable Growth Advisers, LP (“SGA”), an indirect, majority-owned subsidiary of Virtus.
(3) Newfleet Asset Management, LLC (“Newfleet”), an indirect, wholly-owned subsidiary of Virtus.
C. Expense Limitations
  The Adviser has contractually agreed to limit each Fund’s annual total operating expenses, subject to the exceptions listed below, so that such expenses do not exceed, on an annualized basis, the following respective percentages of average daily net assets through February 1, 2022 (except as noted). Following the contractual period, the Adviser may discontinue these expense limitation arrangements at any time. The waivers and reimbursements are accrued daily and received monthly.
    
Fund          Class A                  Class C                  Class I                 Class R6       
KAR Capital Growth Fund
   1.47 % (1)   2.22 % (1)   1.22 % (1)   0.73 %
KAR Equity Income Fund
   1.20    1.95    0.95    0.91 
KAR Global Quality Dividend Fund
   1.35    2.10    1.10    0.78 
KAR Mid-Cap Core Fund
   1.20    1.95    0.95    0.87 
KAR Mid-Cap Growth Fund
   1.40  (1)   2.15  (1)   1.15  (1)   0.83 
KAR Small-Cap Core Fund
   N/A    N/A    N/A    N/A
KAR Small-Cap Growth Fund
   1.50  (1)   2.25  (1)   1.25  (1)   1.18  (1)
KAR Small-Cap Value Fund
   1.42  (1)   2.17  (1)   1.17  (1)   1.06  (1)
KAR Small-Mid Cap Core Fund
   1.30    2.05  (1)   1.05  (1)   0.97  (1)
KAR Small-Mid Cap Growth Fund(2)
   1.30    2.05    1.05    0.99 
KAR Small-Mid Cap Value Fund(3)
   1.17    1.92    0.92    0.82 
SGA Emerging Markets Growth Fund
   1.48    2.23    1.23    1.05 
SGA Global Growth Fund
   1.38    2.13    1.13    0.90 
SGA New Leaders Growth Fund(4)
   1.39    2.14    1.14    0.91 
Tactical Allocation Fund
   0.99  (5)   1.75  (5)   0.76  (5)   0.60  (6)
(1) The share class is currently under its expense limitation.
(2) Effective December 8, 2020.
(3) Effective August 3, 2021.
(4) Effective November 17, 2020.
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(5) Effective October 31, 2020. For the period October 1, 2020 through October 30, 2020, the expense caps were as follows for Class A shares, Class C shares and Class I shares, respectively: 1.15%, 1.90% and 0.90%.
(6) Effective October 20, 2020.
The exclusions include front-end or contingent deferred loads, 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.
D. Expense Recapture
  Under certain conditions, the Adviser may recapture operating expenses reimbursed or fees waived under these arrangements within three years after the date on which such amounts were incurred or waived. A Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the fiscal year ending September 30:
    
    Expiration    
Fund   2022   2023   2024   Total
KAR Capital Growth Fund                
Class R6
   $ 1   $ 1   $ 1   $ 3
KAR Equity Income Fund                
Class A
   164   170   152   486
Class C
   21   11   9   41
Class I
   16   15   14   45
Class R6
   2   1   1   4
KAR Global Quality Dividend Fund                
Class A
   56   65   38   159
Class C
   8   6   2   16
Class I
   14   28   19   61
Class R6
   —  (1)   —  (1)   5   5
KAR Mid-Cap Core Fund                
Class A
   62   71   84   217
Class C
   58   66   68   192
Class I
   396   670   982   2,048
Class R6
   8   21   35   64
KAR Mid-Cap Growth Fund                
Class R6
   1   21   101   123
KAR Small-Mid Cap Core Fund                
Class A
   4   9   5   18
Class C
   —  (1)   —  (1)   3   3
Class R6
   40   3   —   43
KAR Small-Mid Cap Growth Fund                
Class A
   —   —   11   11
Class C
   —   —   3   3
Class I
   —   —   25   25
Class R6
   —   —   68   68
KAR Small-Mid Cap Value Fund                
Class A
   —   —   2   2
Class C
   —   —   2   2
Class I
   —   —   2   2
Class R6
   —   —   51   51
SGA Emerging Markets Growth Fund                
Class A
   2   4   3   9
Class C
   2   3   3   8
Class I
   3   4   6   13
Class R6
   96   124   89   309
SGA Global Growth Fund                
Class A
   —   —   30   30
Class C
   —   —   1   1
Class I
   1   15   9   25
Class R6
   24   107   104   235
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    Expiration    
Fund   2022   2023   2024   Total
SGA New Leaders Growth Fund                
Class A
   $ —   $ —   $ 2   $ 2
Class C
   —   —   2   2
Class I
   —   —   3   3
Class R6
   —   —   115   115
Tactical Allocation Fund                
Class A
   —   —   498   498
Class C
   —   —   46   46
Class I
   —   —   43   43
Class R6
   —   —   —  (1)   —
(1) Amount is less than $500.
During the period ended September 30, 2021, the Adviser recaptured expenses previously waived for the following Funds:
Fund   Class A   Class C   Class I   Class R6   Total
KAR Small-Mid Cap Core Fund
   $ 6   $ 8   $123   $ 6   $ 143
SGA Global Growth Fund
   — (1)   — (1)   1   —   1
(1) Amount is less than $500.
E. Distributor
  VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the fiscal year (the “period”) ended September 30, 2021, it retained net commissions of $387 for Class A shares and CDSC of $300 and $68 for Class A shares and Class C shares, respectively.
  In addition, each Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the annual rates of 0.25% for Class A shares and 1.00% for Class C shares. Class I shares and Class R6 shares are not subject to a 12b-1 Plan.
  Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.
F. Administrator and Transfer Agent
  Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Funds.
  For the period ended September 30, 2021, the Funds incurred administration fees totaling $16,378 which are included in the Statements of Operations within the line item “Administration and accounting fees.” The fees are calculated daily and paid monthly.
  For the period ended September 30, 2021, the Funds incurred transfer agent fees totaling $7,315 which are included in the Statements of Operations within the line item “Transfer agent fees and expenses.” The fees are calculated daily and paid monthly.
G. Affiliated Shareholders
  At September 30, 2021, Virtus and its affiliates held shares of certain Funds, which may be redeemed at any time, that aggregated to the following:
    
  Shares   Aggregate Net
Asset Value
KAR Small-Mid Cap Growth Fund      
Class A
 10,000   $ 107
Class C
 10,000   106
Class I
 10,000   107
Class R6
 279,105   2,995
KAR Small-Mid Cap Value Fund      
Class A
 10,000   96
Class C
 10,000   96
Class I
 10,000   96
Class R6
 270,000   2,606
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H. Investments with Affiliates
  The Funds are permitted to purchase assets from or sell assets to certain related affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of assets by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the period ended September 30, 2021, the Funds did not engage in any transactions pursuant to Rule 17a-7 under the 1940 Act.
  Outside of Rule 17a-7 transactions, other investments with affiliated issuers are separately reported in this footnote. An affiliated issuer includes any company in which the Fund held 5% or more of a company’s outstanding voting shares at any point during the period, as well as other circumstances where an investment adviser or subadviser to the Fund is deemed to exercise, directly or indirectly, a certain level of control over the company. A summary of the Fund’s total long-term and short-term purchases and sales of the securities of affiliated issuers during the period ended September 30, 2021, is as follows:
    
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares   Dividend
income 		  Distributions
of realized
gains
KAR Small-Cap Growth Fund
Common Stocks—39.0%
AAON, Inc.
 $ 241,566   $ —   41,910   $12,504   $ 7,343   $ 219,503   3,359,400   $1,523   $—
Chefs’ Warehouse, Inc. (The)(1)
 40,829   —   10,474   559   49,030   79,944   2,454,523   —   —
Duck Creek Technologies, Inc.(1)
 394,978   —   —   —   (10,346)   384,632   8,694,221   —   —
Fox Factory Holding Corp.(1)
 284,905   —   30,826   20,271   250,761   525,111   3,632,978   —   —
Goosehead Insurance, Inc.
 104,402   —   10,363   6,226   70,407   170,672   1,120,700   1,826   —
MediaAlpha, Inc.(1)
 —   129,926   —   —   (43,138)   86,788   4,646,036   —   —
National Research Corp.
 118,572   —   —   —   (16,962)   101,610   2,409,518   867   —
NVE Corp.
 23,690   —   4,902   (727)   8,339   26,400   412,690   1,791   —
Ollie’s Bargain Outlet Holdings, Inc.(1)
 417,854   —   6,478   1,972   (129,208)   284,140   4,713,672   —   —
Olo, Inc.(1)
 —   56,851   —   —   838   57,689   1,921,045   —   —
Omega Flex, Inc.
 142,420   —   10,154   5,034   (17,206)   120,094   841,642   1,292   —
Oportun Financial Corp.(1)
 31,078   —   —   —   34,899   65,977   2,635,930   —   —
Ryan Specialty Group Holdings, Inc.(1)
 —   248,918   —   —   95,714   344,632   10,175,150   —   —
U.S. Physical Therapy, Inc.
 102,953   —   —   —   28,108   131,061   1,185,000   1,280   —
Total $1,903,247   $435,695   $115,107   $45,839   $ 328,579   $2,598,253       $8,579   $—
    
(1) Non-income producing.
I. Trustee Compensation
  The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statements of Assets and Liabilities at September 30, 2021.
109

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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
Note 4. Purchases and Sales of Securities
($ reported in thousands)
Purchases and sales of securities (excluding U.S. Government and agency securities and short-term securities) during the period ended September 30, 2021, were as follows:
  Purchases   Sales
KAR Capital Growth Fund
 $ 64,285   $ 122,866
KAR Equity Income Fund
 34,538   49,479
KAR Global Quality Dividend Fund
 13,556   14,152
KAR Mid-Cap Core Fund
 440,299   163,718
KAR Mid-Cap Growth Fund
 871,153   514,518
KAR Small-Cap Core Fund
 286,435   386,701
KAR Small-Cap Growth Fund
 721,520   1,580,213
KAR Small-Cap Value Fund
 411,995   159,281
KAR Small-Mid Cap Core Fund
 622,868   65,179
KAR Small-Mid Cap Growth Fund
 6,303   629
KAR Small-Mid Cap Value Fund
 2,994   —
SGA Emerging Markets Growth Fund
 3,088   2,807
SGA Global Growth Fund
 77,493   62,101
SGA New Leaders Growth Fund
 7,545   1,354
Tactical Allocation Fund
 375,981   452,545
Purchases and sales of long-term U.S. Government and agency securities during the period ended September 30, 2021, were as follows:
  Purchases   Sales
Tactical Allocation Fund
 $36,062   $24,068
Note 5. Capital Share Transactions
(reported in thousands)
Transactions in shares of capital stock, during the periods ended as indicated below, were as follows:
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		479   $ 12,774   889   $ 17,200   262   $ 5,419   472   $ 9,444
Reinvestment of distributions 744   20,139   705   12,891   1,573   29,436   50   1,108
Shares repurchased and cross
class conversions 		(1,983)   (53,626)     (3,375)   (64,742)     (778)   (16,534)     (1,172)   (22,878)  
Net Increase / (Decrease) (760)   $ (20,713)   (1,781)   $ (34,651)   1,057   $ 18,321   (650)   $ (12,326)
Class C                              
Shares sold and cross class
conversions 		53   $ 1,025   223   $ 3,361   21   $ 401   33   $ 593
Reinvestment of distributions 30   586   22   302   118   1,891   1   13
Shares repurchased and cross
class conversions 		(375)   (7,256)     (197)   (2,871)     (204)   (3,664)     (145)   (2,657)  
Net Increase / (Decrease) (292)   $ (5,645)   48   $ 792   (65)   $ (1,372)   (111)   $ (2,051)
110

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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class I                              
Shares sold and cross class
conversions 		400   $ 11,257   1,610   $ 31,747   213   $ 4,642   56   $ 1,201
Reinvestment of distributions 56   1,586   35   670   153   2,845   6   126
Shares repurchased and cross
class conversions 		(314)   (8,781)   (1,078)   (20,661)   (235)   (4,960)   (131)   (2,657)  
Net Increase / (Decrease) 142   $ 4,062   567   $ 11,756   131   $ 2,527   (69)   $ (1,330)
Class R6                              
Shares sold and cross class
conversions 		19   $ 541   55   $ 1,111   41   $ 884   7   $ 153
Reinvestment of distributions — (1)   5   — (1)   3   16   300   1   11
Shares repurchased and cross
class conversions 		(3)   (103)   (49)   (965)   (34)   (709)   (19)   (386)
Net Increase / (Decrease) 16   $ 443   6   $ 149   23   $ 475   (11)   $ (222)
    
  KAR Global Quality Dividend Fund   KAR Mid-Cap Core Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		54   $ 781   144   $ 1,888   452   $ 22,422   539   $ 19,654
Reinvestment of distributions 39   536   42   639   10   462   6   220
Shares repurchased and cross
class conversions 		(210)   (2,991)     (442)   (5,817)     (277)   (13,604)     (465)   (16,411)  
Net Increase / (Decrease) (117)   $ (1,674)   (256)   $ (3,290)   185   $ 9,280   80   $ 3,463
Class C                              
Shares sold and cross class
conversions 		69   $ 929   25   $ 294   276   $ 12,632   360   $ 11,989
Reinvestment of distributions 2   27   3   40   10   429   6   207
Shares repurchased and cross
class conversions 		(125)   (1,685)     (132)   (1,648)     (252)   (11,319)     (359)   (11,673)  
Net Increase / (Decrease) (54)   $ (729)   (104)   $ (1,314)   34   $ 1,742   7   $ 523
Class I                              
Shares sold and cross class
conversions 		237   $ 3,420   494   $ 6,644   9,882   $ 505,077   11,000   $ 403,004
Reinvestment of distributions 24   331   15   226   114   5,388   42   1,611
Shares repurchased and cross
class conversions 		(275)   (3,885)     (196)   (2,443)     (4,666)   (236,556)     (4,134)   (147,797)  
Net Increase / (Decrease) (14)   $ (134)   313   $ 4,427   5,330   $ 273,909   6,908   $ 256,818
Class R6                              
Shares sold and cross class
conversions 		143   $ 2,026   —   $ —   616   $ 32,914   302   $ 11,813
Reinvestment of distributions —   —   —   —   3   165   1   57
Shares repurchased and cross
class conversions 		(17)   (256)     —   —    (103)   (5,440)     (139)   (5,501)  
Net Increase / (Decrease) 126   $ 1,770   —   $ —   516   $ 27,639   164   $ 6,369
    
111

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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  KAR Mid-Cap Growth Fund   KAR Small-Cap Core Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		2,652   $ 177,626   5,968   $ 285,158   498   $ 23,084   401   $ 15,166
Reinvestment of distributions 8   567   27   1,126   190   8,187   132   5,104
Shares repurchased and cross
class conversions 		(2,843)   (191,469)     (2,533)   (118,550)     (543)   (24,760)     (1,243)   (44,953)  
Net Increase / (Decrease) (183)   $ (13,276)   3,462   $ 167,734   145   $ 6,511   (710)   $ (24,683)
Class C                              
Shares sold and cross class
conversions 		745   $ 38,851   1,502   $ 54,358   46   $ 1,693   110   $ 3,391
Reinvestment of distributions 3   180   12   384   248   8,584   162   5,183
Shares repurchased and cross
class conversions 		(668)   (34,933)     (408)   (14,415)     (796)   (29,553)     (893)   (27,443)  
Net Increase / (Decrease) 80   $ 4,098   1,106   $ 40,327   (502)   $ (19,276)   (621)   $ (18,869)
Class I                              
Shares sold and cross class
conversions 		19,047   $ 1,324,506   30,351   $ 1,478,624   2,785   $ 135,357   5,755   $ 218,747
Reinvestment of distributions 32   2,372   58   2,469   1,701   77,950   988   40,516
Shares repurchased and cross
class conversions 		(15,902)   (1,115,805)     (7,875)   (382,218)     (4,879)   (237,999)     (11,184)   (447,151)  
Net Increase / (Decrease) 3,177   $ 211,073   22,534   $ 1,098,875   (393)   $ (24,692)   (4,441)   $ (187,888)
Class R6                              
Shares sold and cross class
conversions 		1,707   $ 121,058   1,702   $ 94,521   2,794   $ 135,372   5,516   $ 232,147
Reinvestment of distributions 2   139   1   25   187   8,625   118   4,844
Shares repurchased and cross
class conversions 		(572)   (40,554)     (93)   (4,562)     (1,669)   (82,597)     (1,409)   (57,198)  
Net Increase / (Decrease) 1,137   $ 80,643   1,610   $ 89,984   1,312   $ 61,400   4,225   $ 179,793
    
  KAR Small-Cap Growth Fund   KAR Small-Cap Value Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		2,008   $ 107,824   2,602   $ 104,387   1,471   $ 38,725   627   $ 10,835
Reinvestment of distributions 1,348   71,757   263   10,502   26   636   23   448
Shares repurchased and cross
class conversions 		(4,374)   (232,735)     (6,743)   (261,217)     (883)   (23,214)     (772)   (13,988)  
Net Increase / (Decrease) (1,018)   $ (53,154)   (3,878)   $ (146,328)   614   $ 16,147   (122)   $ (2,705)
Class C                              
Shares sold and cross class
conversions 		241   $ 11,287   450   $ 16,101   253   $ 6,360   278   $ 5,040
Reinvestment of distributions 772   35,847   143   5,103   — (1)   10   —   —
Shares repurchased and cross
class conversions 		(1,611)   (75,056)     (1,875)   (67,009)     (273)   (7,024)     (302)   (5,152)  
Net Increase / (Decrease) (598)   $ (27,922)   (1,282)   $ (45,805)   (20)   $ (654)   (24)   $ (112)
112

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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  KAR Small-Cap Growth Fund   KAR Small-Cap Value Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class I                              
Shares sold and cross class
conversions 		15,452   $ 849,066   30,624   $ 1,260,988   23,917   $ 624,881   19,799   $ 360,401
Reinvestment of distributions 9,083   497,200   1,460   59,776   315   7,728   198   3,832
Shares repurchased and cross
class conversions 		(32,646)   (1,787,851)     (31,378)   (1,260,713)     (16,240)   (438,305)     (10,779)   (194,278)  
Net Increase / (Decrease) (8,111)   $ (441,585)   706   $ 60,051   7,992   $ 194,304   9,218   $ 169,955
Class R6                              
Shares sold and cross class
conversions 		2,700   $ 148,001   1,149   $ 48,543   2,599   $ 70,660   133   $ 2,466
Reinvestment of distributions 253   13,906   19   796   8   184   5   103
Shares repurchased and cross
class conversions 		(1,148)   (63,242)     (463)   (19,328)     (222)   (6,064)     (141)   (2,664)  
Net Increase / (Decrease) 1,805   $ 98,665   705   $ 30,011   2,385   $ 64,780   (3)   $ (95)
    
  KAR Small-Mid Cap Core Fund   KAR Small-Mid Cap Growth Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  From Inception December 8, 2020 to
September 30, 2021
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                      
Shares sold and cross class
conversions 		1,648   $ 28,460   1,701   $ 21,815   80   $ 831
Shares repurchased and cross
class conversions 		(419)   (7,441)     (461)   (5,440)     (12)   (134)  
Net Increase / (Decrease) 1,229   $ 21,019   1,240   $ 16,375   68   $ 697
Class C                      
Shares sold and cross class
conversions 		1,108   $ 19,101   702   $ 9,015   11   $ 112
Shares repurchased and cross
class conversions 		(157)   (2,784)     (78)   (898)     —   — 
Net Increase / (Decrease) 951   $ 16,317   624   $ 8,117   11   $ 112
Class I                      
Shares sold and cross class
conversions 		42,226   $ 746,668   33,974   $ 437,472   202   $ 2,094
Reinvestment of distributions 3   56   —   —   —   —
Shares repurchased and cross
class conversions 		(10,477)   (188,874)     (5,815)   (73,641)     (16)   (164)  
Net Increase / (Decrease) 31,752   $ 557,850   28,159   $ 363,831   186   $ 1,930
Class R6                      
Shares sold and cross class
conversions 		366   $ 6,531   593   $ 8,210   307   $ 3,080
Reinvestment of distributions — (1)   3   —   —   —   —
Shares repurchased and cross
class conversions 		(76)   (1,321)     (288)   (3,986)     (5)   (51)  
Net Increase / (Decrease) 290   $ 5,213   305   $ 4,224   302   $ 3,029
    
113

Table of Contents
VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
  From Inception August 3, 2021 to
September 30, 2021 		  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                      
Shares sold and cross class
conversions 		13   $ 131   2   $ 32   4   $ 43
Reinvestment of distributions —   —   — (1)   1   — (1)   — (2)
Shares repurchased and cross
class conversions 		—   —    (—) (1)   (6)     —   — 
Net Increase / (Decrease) 13   $ 131   2   $ 27   4   $ 43
Class C                      
Shares sold and cross class
conversions 		10   $ 103   1   $ 7   3   $ 27
Reinvestment of distributions —   —   — (1)   1   — (1)   — (2)
Shares repurchased and cross
class conversions 		—   —    —   —    (1)   (11)  
Net Increase / (Decrease) 10   $ 103   1   $ 8   2   $ 16
Class I                      
Shares sold and cross class
conversions 		10   $ 100   10   $ 137   10   $ 100
Reinvestment of distributions —   —   — (1)   6   — (1)   — (2)
Net Increase / (Decrease) 10   $ 100   10   $ 143   10   $ 100
Class R6                      
Shares sold and cross class
conversions 		270   $ 2,700   8   $ 115   61   $ 656
Reinvestment of distributions —   —   8   107   — (1)   — (2)
Shares repurchased and cross
class conversions 		—   —    (—) (1)   (3)     (62)   (687)  
Net Increase / (Decrease) 270   $ 2,700   16   $ 219   (1)   $ (31)
    
  SGA Global Growth Fund   SGA New Leaders Growth Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  From Inception November 17, 2020 to
September 30, 2021
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                      
Shares sold and cross class
conversions 		220   $ 6,522   1,212   $ 28,564   10   $ 103
Reinvestment of distributions 34   950   —   —   —   —
Shares repurchased and cross
class conversions 		(122)   (3,623)     (414)   (9,454)     —   — 
Net Increase / (Decrease) 132   $ 3,849   798   $ 19,110   10   $ 103
Class C                      
Shares sold and cross class
conversions 		110   $ 3,082   69   $ 1,510   10   $ 103
Reinvestment of distributions 8   211   —   —   —   —
Shares repurchased and cross
class conversions 		(71)   (1,962)     (39)   (811)     —   — 
Net Increase / (Decrease) 47   $ 1,331   30   $ 699   10   $ 103
114

Table of Contents
VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  SGA Global Growth Fund   SGA New Leaders Growth Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020 		  From Inception November 17, 2020 to
September 30, 2021
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class I                      
Shares sold and cross class
conversions 		1,109   $ 32,952   881   $ 20,118   15   $ 155
Reinvestment of distributions 38   1,089   — (1)   3   —   —
Shares repurchased and cross
class conversions 		(448)   (13,851)     (457)   (10,744)     —   — 
Net Increase / (Decrease) 699   $ 20,190   424   $ 9,377   15   $ 155
Class R6                      
Shares sold and cross class
conversions 		97   $ 2,975   1,167   $ 25,797   586   $ 5,923
Reinvestment of distributions 82   2,400   1   33   —   —
Shares repurchased and cross
class conversions 		(307)   (9,567)     (412)   (10,022)     (—) (1)   (—)  (2)
Net Increase / (Decrease) (128)   $ (4,192)   756   $ 15,808   586   $ 5,923
    
  Tactical Allocation Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT
Class A              
Shares sold and cross class
conversions 		4,727   $ 62,387   2,820   $ 30,276
Shares issued-merger (See Note 12) 7,220   86,813   —   —
Reinvestment of distributions 1,092   14,523   1,062   10,675
Shares repurchased and cross
class conversions 		(6,765)   (89,972)     (7,341)   (76,872)  
Net Increase / (Decrease) 6,274   $ 73,751   (3,459)   $ (35,921)
Class C              
Shares sold and cross class
conversions 		410   $ 5,550   293   $ 3,215
Shares issued-merger (See Note 12) 3,374   41,685   —   —
Reinvestment of distributions 64   871   11   114
Shares repurchased and cross
class conversions 		(2,469)   (33,437)     (203)   (2,171)  
Net Increase / (Decrease) 1,379   $ 14,669   101   $ 1,158
Class I              
Shares sold and cross class
conversions 		1,580   $ 20,904   2,470   $ 27,408
Shares issued-merger (See Note 12) 2,156   25,853   —   —
Reinvestment of distributions 90   1,191   10   110
Shares repurchased and cross
class conversions 		(2,270)   (29,947)     (578)   (6,303)  
Net Increase / (Decrease) 1,556   $ 18,001   1,902   $ 21,215
115

Table of Contents
VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
  Tactical Allocation Fund
  Year Ended
September 30, 2021 		  Year Ended
September 30, 2020
  SHARES   AMOUNT   SHARES   AMOUNT
Class R6              
Shares sold and cross class
conversions 		9   $ 110   —   $ —
Reinvestment of distributions — (1)   — (2)   —   —
Shares repurchased and cross
class conversions 		(1)   (10)     —   — 
Net Increase / (Decrease) 8   $ 100   —   $ —
(1) Amount is less than 500 shares.
(2) Amount is less than $500.
Note 6. 10% Shareholders
As of September 30, 2021, the Funds had individual shareholder account(s) and/or omnibus shareholder account(s) (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of such Fund as detailed below:
  % of Shares
Outstanding 		  Number of
Accounts
KAR Global Quality Dividend Fund
 15%   1
KAR Mid-Cap Core Fund
 41   3
KAR Mid-Cap Growth Fund
 27   2
KAR Small-Cap Core Fund
 41   3
KAR Small-Cap Growth Fund
 22   2
KAR Small-Cap Value Fund
 48   2
KAR Small-Mid Cap Core Fund
 52   3
KAR Small-Mid Cap Growth Fund
 68   2 *
KAR Small-Mid Cap Value Fund
 89   1 *
SGA Emerging Markets Growth Fund
 69   3
SGA Global Growth Fund
 43   3
SGA New Leaders Growth Fund
 75   2 *
* Includes affiliated shareholder account(s).
Note 7.  Credit and Market Risk and Asset Concentration
Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on a Fund and its investments, including hampering the ability of the Fund’s portfolio manager(s) to invest the Fund’s assets as intended.
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, subsequent announcements by the FCA, the LIBOR administrator and other regulators indicate that it is possible that certain LIBORs may continue beyond 2021 and certain of the most widely used LIBORs may continue until mid-2023. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The expected discontinuation of LIBOR could have a significant impact on the financial markets and may present a material risk for certain market participants, including the Funds. 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 how such changes would be implemented and the effects such changes would have on the Funds, issuers of instruments in which the Funds invest, and the financial markets generally.
In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as a Fund’s ability to repatriate such amounts.
High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or subadviser to accurately predict risk.
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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
Certain Funds may invest a high percentage of their assets in specific sectors of the market in the pursuit of their investment objectives. Fluctuations in these sectors of concentration may have a greater impact on a Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.
At September 30, 2021, the following Funds held securities issued by various companies in specific sectors as detailed below:
Fund   Sector   Percentage of
Total Investments
KAR Capital Growth Fund
   Information Technology   42%
KAR Mid-Cap Core Fund
   Industrials   33
KAR Mid-Cap Growth Fund
   Information Technology   39
KAR Small-Cap Core Fund
   Industrials   37
KAR Small-Cap Growth Fund
   Information Technology   32
KAR Small-Cap Value Fund
   Industrials   27
KAR Small-Mid Cap Core Fund
   Information Technology   26
KAR Small-Mid Cap Growth Fund
   Information Technology   31
KAR Small-Mid Cap Value Fund
   Industrials   25
SGA Emerging Markets Growth Fund
   Consumer Staples   29
SGA Global Growth Fund   Information Technology   32
SGA New Leaders Growth Fund   Information Technology   26
SGA New Leaders Growth Fund
   Healthcare   25
Note 8.  Indemnifications
Under the Trust’s organizational documents and in separate agreements between each Trustee and the Trust, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust and its funds. In addition, in the normal course of business, the Trust and the Funds enter into contracts that provide a variety of indemnifications to other parties. The Trust’s and/or the Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust or the Funds and that have not occurred. However, neither the Trust nor the Funds have had prior claims or losses pursuant to these arrangements, and they expect the risk of loss to be remote.
Note 9. Restricted Securities
($ reported in thousands)
Restricted securities are not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category. Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities. Certain Funds held securities considered to be restricted at September 30, 2021, as follows:
Fund   Investment   Date of
Acquisition 		  Cost   Value   Percentage of
Net Assets
KAR Mid-Cap Growth Fund
   Security Scorecard, Inc. Series E   3/5/2021   $40,000   $42,579   1.2%
Note 10. Redemption Facility
($ reported in thousands)
On September 18, 2017, the Funds, with the exception of the KAR Small-Mid Cap Value Fund, and certain other affiliated funds entered into an $150,000 unsecured line of credit (“Credit Agreement”). On June 14, 2021, the Credit Agreement was increased to $250,000. This Credit Agreement, as amended, is with a commercial bank that allows the Funds to borrow cash from the bank to manage large unexpected redemptions and trade fails, up to a limit of one-third or one-fifth, as applicable, of each Fund’s total net assets in accordance with the terms of the agreement. This Credit Agreement has a term of 364 days and has been renewed for a period up to March 10, 2022. Interest is charged at the higher of the LIBOR or the Federal Funds rate plus an additional percentage rate on the amount borrowed. Commitment fees are charged on the undrawn balance. Total commitment fees paid for the period ended September 30, 2021, are included in the “Interest expense and/or commitment fees” line on the Statements of Operations. The Funds and other affiliated funds that are parties are individually, and not jointly, liable for their particular advances, if any, under the Credit Agreement. The lending bank has the ability to require repayment of outstanding borrowings under this Credit Agreement upon certain circumstances such as an event of default.
The Funds had no borrowings at any time during the period ended September 30, 2021.
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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
Note 11. Federal Income Tax Information
($ reported in thousands)
At September 30, 2021, the approximate aggregate cost basis and the unrealized appreciation (depreciation) of investments and other financial instruments for federal income tax purposes were as follows:
Fund   Federal
Tax Cost 		  Unrealized
Appreciation 		  Unrealized
(Depreciation) 		  Net Unrealized
Appreciation
(Depreciation)
KAR Capital Growth Fund
   $ 245,062   $ 563,017   $ (885)   $ 562,132
KAR Equity Income Fund
   124,086   19,067   (1,617)   17,450
KAR Global Quality Dividend Fund
   33,045   5,914   (795)   5,119
KAR Mid-Cap Core Fund
   958,959   448,476   (13,004)   435,472
KAR Mid-Cap Growth Fund
   2,148,798   1,299,565   (15,544)   1,284,021
KAR Small-Cap Core Fund
   1,198,008   753,267   (17,561)   735,706
KAR Small-Cap Growth Fund
   3,721,744   3,071,484   (124,108)   2,947,376
KAR Small-Cap Value Fund
   929,924   504,521   (11,702)   492,819
KAR Small-Mid Cap Core Fund
   1,033,010   239,699   (14,276)   225,423
KAR Small-Mid Cap Growth Fund
   5,647   680   (293)   387
KAR Small-Mid Cap Value Fund
   3,007   65   (174)   (109)
SGA Emerging Markets Growth Fund
   5,223   1,227   (286)   941
SGA Global Growth Fund
   123,289   54,162   (1,821)   52,341
SGA New Leaders Growth Fund
   6,055   792   (234)   558
Tactical Allocation Fund
   617,742   354,197   (12,725)   341,472
Certain Funds have capital loss carryforwards available to offset future realized capital gains, if any, to the extent permitted by the Code. Net capital losses are carried forward without expiration and generally retain their short-term and/or long-term tax character, as applicable. For the fiscal year ended September 30, 2021, the Funds’ capital loss carryovers were as follows:
Fund   Short-Term   Long-Term
KAR Global Quality Dividend Fund
   $ 2,024   $135
KAR Small-Mid Cap Growth Fund
   40   —
SGA New Leaders Growth Fund
   163   —
Tactical Allocation Fund
   28,307   —
The components of distributable earnings on a tax basis and certain tax attributes for the Funds consist of the following:
  Undistributed
Ordinary
Income 		  Undistributed
Long-Term
Capital Gains 		  Late Year
Ordinary Losses
Deferred 		  Capital Loss
Deferred
KAR Capital Growth Fund
$ —   $ 58,819   $ 4,808   $ —
KAR Equity Income Fund
5,319   148   —   —
KAR Global Quality Dividend Fund
69   —   —   2,159
KAR Mid-Cap Core Fund
4,824   19,907   —   —
KAR Mid-Cap Growth Fund
—   48,511   19,644   —
KAR Small-Cap Core Fund
1,745   201,605   —   —
KAR Small-Cap Growth Fund
—   796,894   37,715   —
KAR Small-Cap Value Fund
19,856   4,287   —   —
KAR Small-Mid Cap Core Fund
6,793   9,413   —   —
KAR Small-Mid Cap Growth Fund
—   —   29   40
KAR Small-Mid Cap Value Fund
2   —   —   —
SGA Emerging Markets Growth Fund
—   414   17   —
SGA Global Growth Fund
3,846   5,488   —   —
SGA New Leaders Growth Fund
—   —   25   163
Tactical Allocation Fund
31,005   32,701   —   28,307
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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
The differences between the book and tax basis of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions, if any, are reported as ordinary income for federal tax purposes. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.
The tax character of dividends and distributions paid during the fiscal periods ended September 30, 2021 and 2020, was as follows:
  Ordinary
Income 		  Long-Term
Capital Gains 		  Total
KAR Capital Growth Fund
          
9/30/21
 $ —   $ 24,000   $ 24,000
9/30/20
 —   14,937   14,937
KAR Equity Income Fund
          
9/30/21
 1,500   35,100   36,600
9/30/20
 1,342   —   1,342
KAR Global Quality Dividend Fund
          
9/30/21
 940   —   940
9/30/20
 945   —   945
KAR Mid-Cap Core Fund
          
9/30/21
 1,200   5,250   6,450
9/30/20
 32   2,065   2,097
KAR Mid-Cap Growth Fund
          
9/30/21
 —   3,300   3,300
9/30/20
 —   4,125   4,125
KAR Small-Cap Core Fund
          
9/30/21
 2,600   127,000   129,600
9/30/20
 —   64,855   64,855
KAR Small-Cap Growth Fund
          
9/30/21
 —   668,000   668,000
9/30/20
 —   83,035   83,035
KAR Small-Cap Value Fund
          
9/30/21
 9,000   —   9,000
9/30/20
 4,730   —   4,730
KAR Small-Mid Cap Core Fund
          
9/30/21
 60   —   60
SGA Emerging Markets Growth Fund
          
9/30/21
 48   77   125
9/30/20
 1   —   1
SGA Global Growth Fund
          
9/30/21
 2,220   2,480   4,700
9/30/20
 37   —   37
Tactical Allocation Fund
          
9/30/21
 7,664   10,200   17,864
9/30/20
 4,750   6,909   11,659
Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. Permanent reclassifications can arise from differing treatment of certain income and gain transactions and nondeductible current year net operating losses. These adjustments have no impact on net assets or net asset value per share of the Funds. Temporary differences that arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will likely reverse at some time in the future.
Note 12. Reorganization
($ reported in thousands)
On June 17, 2020, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization (the “Plan”) with respect to Virtus Rampart Multi-Asset Trend Fund and Virtus Rampart Sector Trend Fund, (the “Merged Funds”), the series of the Virtus Opportunities Trust, and the Fund, which provided for the transfer of all of the assets of the Merged Funds for shares of the Fund and the assumption of the liabilities of the Merged Funds. The purpose of the transaction was to allow shareholders of all of the funds to own shares of a larger combined fund and to allow shareholders of the Merged Funds to own shares of a fund with a similar investment objective and style as, and potentially lower expenses than, the Merged Funds. The reorganization was accomplished by a tax-free exchange of shares on October 30, 2020. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from the Merged Funds were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
The share transactions associated with the merger are as follows:
Merged Fund   Shares Outstanding   Acquiring Fund   Shares Converted   Merged Fund Net
Asset Value of
Converted Shares 		     
Virtus Rampart Multi-Asset
Trend Fund 		      Tactical Allocation Fund              
Class A   1,008,720   Class A   943,504   $11,345      
Class C   1,609,863   Class C   1,402,324   17,327      
Class I   584,346   Class I   552,308   6,623      
                       
Virtus Rampart Sector
Trend Fund 		      Tactical Allocation Fund              
Class A   5,953,520   Class A   6,276,239   $75,468      
Class C   1,937,610   Class C   1,971,499   24,359      
Class I   1,521,103   Class I   1,603,669   19,230      
The net assets and net unrealized appreciation (depreciation) before the acquisition were as follows:
Virtus Rampart Multi-Asset Trend Fund   Virtus Rampart Sector Trend Fund   Tactical Allocation Fund
Net
Assets 		Unrealized
Appreciation
(Depreciation) 		  Net
Assets 		Unrealized
Appreciation
(Depreciation) 		  Net
Assets
$35,295 $2,507   $119,057 $10,140   $715,533
The net assets of the Fund immediately following the acquisition were $869,885.
Assuming the acquisition had been completed on October 1, 2020, the Fund’s pro-forma results of operations for the period ended September 30, 2021 would have been as follows:
Net investment income (loss)
 $2,565(a)
Net realized and unrealized gain (loss) on investments
 137,788  (b)
Net increase (decrease) in net assets resulting from operations
 $140,353    
(a)  $2,626, as reported in the Statement of Operations, plus $(21) net investment loss from Virtus Rampart Multi-Asset Trend Fund and $(40) net investment loss from Virtus Rampart Sector Trend Fund pre-merger.
(b) $141,560, as reported in the Statement of Operations, plus $(433) net realized and unrealized gain (loss) on investments from Virtus Rampart Multi-Asset Trend Fund and $(3,339) net realized and unrealized gain (loss) on investments from Virtus Rampart Sector Trend Fund pre-merger.
Because the Merged Funds and the Fund have been managed as an integrated single Fund since the completion date it is not feasible to separate the income/(losses) and gains/(losses) of the Virtus Rampart Multi-Asset Trend Fund and Virtus Rampart Sector Trend Fund that have been included in the Fund’s Statement of Operations since October 30, 2020.
Note 13. Regulatory Matters and Litigation
From time to time, the Trust, the Funds, the Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their activities. At this time, the Adviser believes that the outcomes of such matters are not likely, either individually or in aggregate, to be material to these financial statements.
Note 14. Recent Accounting Pronouncement
In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.
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VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2021
Note 15. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance, and has determined that there are no subsequent events requiring recognition or disclosure in these financial statements.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Virtus Equity Trust and Shareholders of Virtus KAR Capital Growth Fund, Virtus KAR Equity Income Fund, Virtus KAR Global Quality Dividend Fund, Virtus KAR Mid-Cap Core Fund, Virtus KAR Mid-Cap Growth Fund, Virtus KAR Small-Cap Core Fund, Virtus KAR Small-Cap Growth Fund, Virtus KAR Small-Cap Value Fund, Virtus KAR Small-Mid Cap Core Fund, Virtus KAR Small-Mid Cap Growth Fund, Virtus KAR Small-Mid Cap Value Fund, Virtus SGA Emerging Markets Growth Fund, Virtus SGA Global Growth Fund, Virtus SGA New Leaders Growth Fund and Virtus Tactical Allocation Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (fifteen of the funds constituting Virtus Equity Trust, hereafter collectively referred to as the “Funds”) as of
September 30, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2021, the results of each of their operations and the changes in each of their net assets for the
periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Virtus KAR Capital Growth Fund
Virtus KAR Equity Income Fund
Virtus KAR Global Quality Dividend Fund
Virtus KAR Mid-Cap Core Fund
Virtus KAR Mid-Cap Growth Fund
Virtus KAR Small-Cap Core Fund
Virtus KAR Small-Cap Growth Fund
Virtus KAR Small-Cap Value Fund
Virtus KAR Small-Mid Cap Core Fund
Virtus SGA Emerging Markets Growth Fund
Virtus SGA Global Growth Fund
Virtus Tactical Allocation Fund 		Statements of operations for the year ended September 30, 2021 and statements of changes in net assets for each of the years ended September 30, 2021 and 2020
Virtus KAR Small-Mid Cap Growth Fund Statement of operations and statement of changes in net assets for the period December 8, 2020 (inception) through September 30, 2021
Virtus KAR Small-Mid Cap Value Fund Statement of operations and statement of changes in net assets for the period August 3, 2021 (inception) through September 30, 2021
Virtus SGA New Leaders Growth Fund Statement of operations and statement of changes in net assets for the period November 17, 2020 (inception) through September 30, 2021
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Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 26, 2021
We have served as the Virtus Mutual Funds’ auditor since at least 1977. We have not been able to determine the specific year we began serving as auditor.
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VIRTUS EQUITY TRUST
TAX INFORMATION NOTICE (Unaudited)
September 30, 2021
The following information is being provided in order to meet reporting requirements set forth by the Code and/or to meet state specific requirements. In early 2022, the Funds will notify applicable shareholders of amounts for use in preparing 2021 U.S. federal income tax forms. Shareholders should consult their tax advisors.
With respect to distributions paid during the fiscal year ended September 30 2021, the Funds designate the following amounts (or, if subsequently determined to be different, the maximum amount allowable):
  Qualified
Dividend
Income %
(non-corporate
shareholder) 		  Dividend
Received
Deduction %
(corporate
shareholders) 		  Long-Term
Capital Gain
Distributions ($)
KAR Capital Growth Fund
 — %   — %   $ 64,116
KAR Equity Income Fund
 79.97   73.41   270
KAR Global Quality Dividend Fund
 100.00   78.12   —
KAR Mid-Cap Core Fund
 100.00   96.53   22,176
KAR Mid-Cap Growth Fund
 —   —   51,656
KAR Small-Cap Core Fund
 100.00   100.00   210,340
KAR Small-Cap Growth Fund
 —   —   798,715
KAR Small-Cap Value Fund
 58.65   60.57   4,287
KAR Small-Mid Cap Core Fund
 73.66   68.97   9,413
KAR Small-Mid Cap Value Fund
 100.00   100.00   —
SGA Emerging Markets Growth Fund
 —   —   425
SGA Global Growth Fund
 20.80   8.33   5,526
Tactical Allocation Fund
 11.88   4.92   34,751
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program (the “Program”) to govern the Funds’ approach to managing liquidity risk, which is the risk that a Fund would not be able to meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Program is overseen by the Adviser as the Funds’ Liquidity Risk Management Program Administrator (the “Program Administrator”), and the Program’s principal objectives include assessing, managing and periodically reviewing each Fund’s liquidity risk, based on factors specific to the circumstances of the Funds. Assessment and management of a Fund’s liquidity risk under the Program take into consideration certain factors, such as the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flow projections during both normal and reasonably foreseeable stressed conditions, and its cash and cash-equivalent holdings and access to other funding sources. As required by the rule, the Program includes policies and procedures for classification of Fund portfolio holdings in four liquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings of illiquid investments.
At a meeting of the Board held on May 17-19, 2021, the Board received a report from the Program Administrator addressing the operation and management of the Program for calendar year 2020 (the “Review Period”). The Program Administrator’s report noted that for the Review Period, the Program Administrator believed that the Program was implemented and operated effectively in all material respects and that existing procedures, controls and safeguards were appropriately designed to enable the Program Administrator to administer the Program in compliance with Rule 22e-4. The Program Administrator’s report noted that during the Review Period, there were no events that created liquidity related concerns for the Funds. The Program Administrator’s report further noted that while changes to the Program had been made during the Review Period and reported to the Board, no material changes were made to the Program as a result of the Program Administrator’s annual review.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to a Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in that Fund may be subject.
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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS KAR SMALL-MID CAP VALUE FUND BY THE BOARD OF TRUSTEES (Unaudited)
The Board of Trustees (the “Board”) of Virtus Equity Trust (the “Trust”) is responsible for determining whether to approve the establishment and continuation of the investment advisory agreement (the “Advisory Agreement”) between the Trust and Virtus Investment Advisers, Inc. (“VIA”) and the subadvisory agreement (the “Subadvisory Agreement” and together with the Advisory Agreement, the “Agreements”) among the Trust, VIA and Kayne Anderson Rudnick Investment Management, LLC (the “Subadviser” or “KAR”) with respect to Virtus KAR Small-Mid Cap Value Fund (the “Fund”). At a meeting held on July 19, 2021, in a virtual meeting format in light of public health concerns regarding the spread of COVID-19 (the “Meeting”), the Board, including a majority of the Trustees who are not interested persons of the Trust as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (such Act, the “1940 Act” and such Trustees, the “Independent Trustees”), authorized the appointment of VIA as adviser to the Fund and KAR as subadviser to the Fund, and considered and approved the establishment of the Agreements, as further discussed below.
In connection with the approval of the Agreements, the Board requested and evaluated information provided by VIA and the Subadviser which, in the Board’s view, constituted information necessary for the Board to form a judgment as to whether approval of each of the Agreements would be in the best interests of the Fund and its shareholders. The Board noted the affiliation of the Subadviser with VIA and any potential conflicts of interest.
The Board was separately advised by independent legal counsel throughout the process. For each Agreement, the Board considered all the criteria separately with respect to the Fund and its shareholders. In its deliberations, the Board considered various factors, including those discussed below, none of which were controlling, and each Trustee may have attributed different weights to the various factors. The Independent Trustees also discussed the proposed approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
In considering whether to approve the Agreements with respect to the Fund, the Board reviewed and analyzed the factors it deemed relevant, including: (a) the nature, extent and quality of the services to be provided to the Fund by VIA and the Subadviser;
(b) information regarding performance of a composite of accounts managed in a similar manner as the Fund was expected to be managed; (c) the level and method of computing the Fund’s advisory and subadvisory fees, and comparisons of the Fund’s proposed advisory fee rates with those of a group of other funds with similar investment objectives; (d) historical profitability of VIA and its affiliates under similar agreements; (e) any “fall-out” benefits to VIA, the Subadviser and their affiliates (i.e., ancillary benefits realized by VIA, the Subadviser or their affiliates from VIA’s or the Subadviser’s relationship with the Fund); (f) possible conflicts of interest; and (g) the terms of the Agreements.
Nature, Extent and Quality of Services
The Trustees received in advance of the meeting information provided by VIA and the Subadviser, including completed questionnaires, concerning a number of topics, including such company’s investment philosophy, resources, operations and compliance structure. The Trustees also received a presentation by VIA’s senior management personnel, during which among other items, VIA’s history, investment process, investment strategies, personnel, compliance procedures and the firm’s overall performance were reviewed and discussed. The Trustees noted that the Fund would be managed using a “manager of managers” structure that generally involves the use of one or more subadvisers to manage some or all of the Fund’s portfolio. Under this structure, VIA is responsible for the oversight of the Fund’s investment program and for evaluating and selecting subadvisers on an ongoing basis and making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Advisory Agreement, the Board considered VIA’s process for supervising and managing the Fund’s subadviser, including (a) VIA’s ability to select and monitor the subadviser; (b) VIA’s ability to provide the services necessary to monitor the subadviser’s compliance with the Fund’s investment objective, policies and restrictions as well as provide other oversight activities; and (c) VIA’s ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (a) the experience and capability of VIA’s management and other personnel; (b) the financial condition of VIA, and whether it had the financial wherewithal to provide a high level and quality of services to the Fund; (c) the quality of VIA’s own regulatory and legal compliance policies, procedures and systems; (d) the nature, extent and quality of administrative, transfer agency and other services expected to be provided by VIA and its affiliates to the Fund; (e) VIA’s expected supervision of the Fund’s other service providers; and (f) VIA’s risk management processes. It was noted that affiliates of VIA were expected to serve as administrator, transfer agent and distributor of the Fund. The Board also took into account its knowledge of VIA’s management and the quality of the performance of its duties with respect to other Virtus Funds through Board meetings, discussions and reports, as well as information from the Trust’s Chief Compliance Officer regarding the Fund’s compliance policies and procedures proposed to be established pursuant to Rule 38a-1 under the 1940 Act.
With respect to the services to be provided by the Subadviser, the Trustees received in advance of the Meeting information provided by the Subadviser, including the Subadviser’s Form ADV, as well as a presentation provided by portfolio management personnel of the Subadviser. With respect to the Subadvisory Agreement, the Board noted that the Subadviser would provide portfolio management, compliance with the Fund’s investment policies and procedures, compliance with applicable securities laws and assurances thereof. The Board also noted that VIA’s and the Subadviser’s management of the Fund is subject to the oversight of the Board and must be carried out in accordance with the investment objective(s), policies and restrictions set forth in the Fund’s prospectuses and statement of additional information. In considering approval of the Subadvisory Agreement, the Board also considered the Subadviser’s investment
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management process, including (a) the experience and capability of the Subadviser’s management and other personnel committed by the Subadviser to the Fund; (b) the financial condition of the Subadviser; (c) the quality of the Subadviser’s regulatory and legal compliance policies, procedures and systems; and (d) the Subadviser’s brokerage and trading practices, including with respect to best execution and soft dollars. The Board also took into account the Subadviser’s risk assessment and monitoring process. The Board noted the Subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate.
After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services expected to be provided by VIA and the Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would provide a high quality of investment services to the Fund.
Investment Performance
Because the Fund had not commenced operations, the Board could not evaluate prior investment performance for the Fund. Investment performance was therefore not a material factor in the Board’s approval of the Agreements. However, the Board reviewed and was satisfied with the comparative performance of representative accounts managed by the Subadviser in a manner similar to the Fund’s proposed investment strategies.
Management Fees and Total Expenses
The Board considered the fees proposed to be charged to the Fund for advisory services as well as the expected total expense levels of the Fund. Among other data provided, the Board noted that the proposed management fee and total expenses for the Fund were within the range of other funds deemed to be comparable to the Fund by management. The Board noted that the Fund was expected to have an expense cap in place to limit the total expenses incurred by the Fund and its shareholders. The Board also noted that the subadvisory fee for the Fund would be paid by VIA out of its management fees rather than paid separately by the Fund. In this regard, the Board took into account management’s discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee expected to be retained by VIA after payment of the subadvisory fee. The Board also took into account the expected size of the Fund and the impact on expenses.
The Board concluded that the proposed advisory and subadvisory fees for the Fund were fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.
Projected Profitability
The Board also considered certain information relating to profitability for its services to other Virtus Funds that had been provided by VIA, as a proxy for evaluating the projected profitability to VIA and its affiliates for their services to the Fund. In this regard, the Board considered information regarding the overall profitability, as well as on a fund-by-fund basis, of VIA for its management of Virtus Funds, as well as its profits and those of its affiliates for managing and providing other services to the Virtus Funds, such as distribution, transfer agency and administrative services provided to the Virtus Funds by VIA affiliates. In addition to the fees paid to VIA and its affiliates, the Board considered any other benefits derived by VIA or its affiliates from their relationships with the Virtus Funds. The Board reviewed the methodology used to allocate costs to each Virtus Fund, taking into account the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. The Board concluded that the profitability to VIA and its affiliates from the Virtus Funds was reasonable in light of the quality of the services rendered to the Virtus Funds by VIA and its affiliates.
In considering the projected profitability to the Subadviser in connection with its relationship to the Fund, the Board noted that the fees under the Subadvisory Agreement would be paid by VIA out of the fees that VIA receives under the Advisory Agreement, so that Fund shareholders would not be directly impacted by those fees. In considering the reasonableness of the fees payable by VIA to the Subadviser, the Board noted that, because the Subadviser is an affiliate of VIA, such profitability might be directly or indirectly shared by VIA. For each of the above reasons, the Board concluded that the projected profitability to the Subadviser and its affiliates from their relationships with the Fund was not a material factor in approval of the Subadvisory Agreement.
Economies of Scale
The Board received and discussed information concerning whether VIA should be expected to realize economies of scale as the Fund’s assets grow. The Board noted that expense caps were expected to be implemented for the Fund. The Board also took into account management’s discussion of the Fund’s management fee and subadvisory fee structure. The Board also took into account the expected size of the Fund. The Board noted that VIA and the Fund may realize certain economies of scale if the assets of the Fund were to be materially higher than anticipated, particularly in relationship to certain fixed costs, and that shareholders of the Fund would have an opportunity to benefit from these economies of scale.
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For similar reasons as stated above with respect to the Subadviser’s profitability, and based upon the expected size of the Fund to be managed by the Subadviser, the Board concluded that the potential for economies of scale in the Subadviser’s management of the Fund was not a material factor in the approval of the Subadvisory Agreement at this time.
Other Factors
The Board considered other benefits that may be realized by VIA and the Subadviser and their affiliates from their relationships with the Fund. Among them, the Board recognized that VP Distributors, LLC, an affiliate of the Adviser, serves as the distributor for the Trust, and, as such, was expected to receive payments pursuant to Rule 12b-1 from the Fund to compensate it for providing selling activities, which could lead to growth in the Fund’s assets and corresponding benefits from such growth, including economies of scale. The Board also noted that an affiliate of VIA and the Subadviser also provides administrative and transfer agency services to the Trust. The Board noted management’s discussion of the fact that, while the Subadviser is an affiliate of VIA, there were no other direct benefits to the Subadviser or VIA in providing investment advisory services to the Fund, other than the fees to be earned under the Agreements, although there may be certain indirect benefits gained, including to the extent that serving the Fund could provide the opportunity to provide advisory services to additional portfolios of the Trust or certain reputational benefits.
Conclusion
Based on all of the foregoing considerations, the Board, including a majority of the Independent Trustees, determined that approval of each Agreement was in the best interests of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements with respect to the Fund.
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FUND MANAGEMENT TABLES (Unaudited)
Information pertaining to the Trustees and officers of the Trust as of the date of issuance of this report, is set forth below. The statement of additional information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling (800) 243-4361.
Independent Trustees
Name, Year of Birth,
Length of Time Served
and 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
Burke, Donald C.
YOB: 1960
Served Since: 2016
99 Portfolios 		Retired. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 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 (55 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, BlackRock Luxembourg and Cayman Funds (2006 to 2010).
Harris, Sidney E.
YOB: 1949
Served Since: 2017
96 Portfolios 		Private Investor (since 2021); Professor and Dean Emeritus (2015 to 2021), Professor (1997 to 2014), Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; and 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 (55 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.; 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.
YOB: 1950
Served Since: 2016
96 Portfolios 		Partner/Attorney (since 2003), McCarter & English LLP (law firm) Real Property Practice Group; and Member (since 2014), Counselors of Real Estate. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; and Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (55 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.
YOB: 1958
Served Since: 2017
96 Portfolios 		Retired (since 2013). Vice President, 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), The Coca-Cola Company. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; and Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Director (since 2019), Global Payments Inc.; Trustee (since 2017), Virtus Mutual Fund Family (55 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.
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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time Served
and 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
McLoughlin, Philip
YOB: 1946
Served Since: 1993
106 Portfolios 		Retired. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Trustee (since 2021), Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund, Virtus AllianzGI Convertible & Income Fund II, Virtus AllianzGI Diversified Income & Convertible, Virtus AllianzGI Equity & Convertible Income Fund and Virtus Dividend, Interest & Premium Strategy Fund; Advisory Board Member (since 2021), Virtus AllianzGI Convertible & Income 2024 Target Term Fund and Virtus AllianzGI 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 (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (55 portfolios).
McNamara, Geraldine M.
YOB: 1951
Served Since: 2001
99 Portfolios 		Retired. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc. and 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 (55 portfolios).
Walton, R. Keith.
YOB: 1964
Served Since: 2020
96 Portfolios 		Managing Director (2020 to 2021), Lafayette Square Holding Company LLC; Venture and Operating Partner (since 2020), Plexo Capital, LLC; Venture Partner (since 2019) and Senior Adviser (2018 to 2019), Plexo, LLC; Senior Adviser (2018 to 2019), Vatic Labs, LLC; Executive Vice President, Strategy (2017 to 2019), Zero Mass Water, LLC; Vice President, Strategy (2013 to 2017), Arizona State University; Partner (since 2006), Global Infrastructure Partners. Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Trustee (since 2020) Virtus Alternative Solutions Trust (2 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (55 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.
YOB: 1952
Served Since: 2020
103 Portfolios 		Retired. Various roles (1982 to 2009), J. & W. Seligman & Co. Incorporated, including President (1994 to 2009). Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (since 2021), Virtus AllianzGI Closed-End Funds (7 portfolios); Trustee (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Trustee (since 2020), Virtus Alternative Solutions Trust (2 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (55 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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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Interested Trustee
Name, Year of Birth,
Length of Time Served
and Number of
Funds Overseen 		Principal Occupation(s) During Past
5 Years 		Principal Occupation(s) During Past 5 Years and
Other Directorships Held by Trustee
Aylward, George R.*
Trustee and President
YOB: 1964
Served Since: 2006
108 Portfolios 		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). Trustee and President (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Trustee and President (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Trustee, President and Chief Executive Officer (since 2021), Virtus AllianzGI Closed-End Funds (7 portfolios); and Chairman and Trustee (since 2015), Virtus ETF Trust II (5 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 (55 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.
*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 Investment Partners, Inc. (“Virtus”), the ultimate parent company of the Adviser, and various positions with its affiliates, including the Adviser.
Advisory Board Members
Name, Year of Birth,
Length of Time
Served, and Number
of Portfolios in Fund
Complex Overseen 		Principal Occupation(s) During Past 5 Years Other Directorships Held  by
Trustee During Past 5 Years
Cogan, Sarah E.
YOB: 1956
Served Since: 2021
103 Portfolios 		Retired Partner, Simpson Thacher & Bartlett LLP (“STB”) (law firm) (since 2018); 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 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (since 2021), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (55 portfolios), and Virtus Variable Insurance Trust (8 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 and Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Trustee (since 2019), Virtus AllianzGI Closed-End Funds (7 portfolios); 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 Opportunities Fund, PCM Fund, Inc, PIMCO Corporate & Income Strategy Fund, PIMCO Corporate & Income Opportunity Fund, PIMCO Dynamic Credit and Mortgage Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity 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; and Trustee (since 2019), PIMCO Managed Accounts Trust (5 portfolios).
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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time
Served, and Number
of Portfolios in Fund
Complex Overseen 		Principal Occupation(s) During Past 5 Years Other Directorships Held  by
Trustee During Past 5 Years
DeCotis, Deborah A.
YOB: 1952
Served Since: 2021
103 Portfolios 		Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); Trustee, Smith College (since 2017); and Director, Watford Re (since 2017). Formerly, Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005 to 2015); Trustee, Stanford University (2010 to 2015); and Principal, LaLoop LLC, a retail accessories company (1999 to 2014). Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (since 2021), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (55 portfolios), and Virtus Variable Insurance Trust (8 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 and Virtus Total Return Fund Inc.; Trustee (since 2020), PIMCO Dynamic Income Opportunities Fund; Trustee (since 2019), PIMCO Energy and Tactical Credit Opportunities Fund and Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2018), PIMCO Flexible Municipal Income Fund Trustee (since 2017), PIMCO Flexible Credit Income Fund and Virtus AllianzGI Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus AllianzGI Diversified Income & Convertible Fund; Trustee (since 2014), Virtus Investment Trust (13 portfolios); Trustee (since 2013), PIMCO Dynamic Credit and Mortgage Income Fund; Trustee (since 2012), PIMCO Dynamic Income Fund; Trustee (since 2011), Virtus Strategy Trust (12 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® & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Strategic Income Fund, Inc., PIMCO Managed Accounts Trust (5 portfolios); and Trustee (since 2011), Virtus AllianzGI Convertible & Income Fund, Virtus AllianzGI Convertible & Income Fund II, Virtus AllianzGI Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund.
Drummond, F. Ford
YOB: 1962
Served Since: 2021
103 Portfolios 		Owner/Operator (since 1998), Drummond Ranch; formerly Board Member (2006 to 2020) and Chairman (2016 to 2018), Oklahoma Water Resources Board;, Director (1998 to 2008), The Cleveland Bank; and General Counsel (1998 to 2008), BMIHealth Plans (benefits administration). Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (since 2021), Virtus Alternative Solutions Trust (2 portfolios), Virtus Mutual Fund Family (55 portfolios), and Virtus Variable Insurance Trust (8 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 and Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus AllianzGI Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2017), Virtus AllianzGI Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus AllianzGI Convertible & Income Fund, Virtus AllianzGI Convertible & Income Fund II, Virtus AllianzGI Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus AllianzGI Equity & Convertible Income Fund; Trustee (since 2014), Virtus Strategy Trust (12 portfolios); Director (since 2011), Bancfirst Corporation; and Trustee (since 2006), Virtus Investment Trust (13 portfolios).
Moyer, William R.
YOB: 1944
Served Since: 2020
96 Portfolios 		Private investor (since 2004); and Financial and Operations Principal (2006 to 2017), Newcastle Distributors LLC (broker dealer). Advisory Board Member (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios); Advisory Board Member (since 2021), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (12 portfolios); Advisory Board Member (since 2020), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (55 portfolios); Advisory Board Member (since 2020) and Director (2016 to 2019), Virtus Total Return Fund Inc.; Director (2016 to 2019), the former Virtus Total Return Fund Inc.; Advisory Board Member (2020 to 2021) and Director (2014 to 2019), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Advisory Board Member (since 2020) and Trustee (2011 to 2019), Virtus Global Multi-Sector Income Fund; Advisory Board Member (since 2020) and Trustee (2013 to 2016), Virtus Alternative Solutions Trust (2 portfolios).
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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Officers of the Trust Who Are Not Trustees
Name, Address and
Year of Birth 		Position(s) Held
with Trust and
Length of
Time Served 		Principal Occupation(s) During Past 5 Years
Batchelar, Peter J.
YOB: 1970 		Senior Vice President (since 2017), and Vice President (2008 to 2016). Senior Vice President, Product Development (since 2017), Vice President, Product Development (2008 to 2016), and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Senior Vice President (since 2021), Virtus Investment Trust and Virtus Strategy Trust; Senior Vice President (since 2021), AllianzGI Closed-End Funds; Senior Vice President (since 2017) and Vice President (2008 to 2016), Virtus Mutual Fund Family; Senior Vice President (since 2017) and Vice President (2010 to 2016), Virtus Variable Insurance Trust; Senior Vice President (since 2017) and Vice President (2013 to 2016), Virtus Alternative Solutions Trust; Senior Vice President (2017 to 2021) and Vice President (2016 to 2017), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Senior Vice President (since 2017) and Vice President (2016 to 2017), Virtus Total Return Fund Inc. and Virtus Global Multi-Sector Income Fund; and Senior Vice President (2017 to 2019) and Vice President (2016 to 2017), the former Virtus Total Return Fund Inc.
Bradley, W. Patrick
YOB: 1972 		Executive Vice President (since 2016); Senior Vice President (2013 to 2016); Vice President (2011 to 2013); Chief Financial Officer and Treasurer (since 2006). Executive Vice President, Fund Services (since 2016), Senior Vice President, Fund Services (2010 to 2016), and various officer positions (since 2006), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President, Chief Financial Officer and Treasurer (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Executive Vice President, Chief Financial Officer and Treasurer (since 2021), Virtus Investment Trust and Virtus Strategy Trust; Executive Vice President, Chief Financial Officer and Treasurer (since 2021), Virtus AllianzGI Closed-End Funds; Director (since 2019), Virtus Global Funds ICAV; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2004), Virtus Variable Insurance Trust; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2006), Virtus Mutual Fund Family; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2012 to 2013) and Chief Financial Officer and Treasurer (since 2010), Virtus Total Return Fund Inc.; Executive Vice President (2016 to 2019), Senior Vice President (2013 to 2016), Vice President (2012 to 2013), Chief Financial Officer and Treasurer (since 2010), the former Virtus Total Return Fund Inc.; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2011), Virtus Global Multi-Sector Income Fund; Executive Vice President ( 2016 to 2021), Senior Vice President (2014 to 2016), Chief Financial Officer and Treasurer (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), and Chief Financial Officer and Treasurer (since 2013), Virtus Alternative Solutions Trust; Director (since 2013), Virtus Global Funds, PLC; and Vice President and Assistant Treasurer (since 2011), Duff & Phelps Utility and Infrastructure Fund Inc.
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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Address and
Year of Birth 		Position(s) Held
with Trust and
Length of
Time Served 		Principal Occupation(s) During Past 5 Years
Carr, Kevin J.
YOB: 1954 		Senior Vice President (since 2013); Vice President (2005 to 2013); Chief Legal Officer, Counsel and Secretary (since 2005). Vice President and Senior Counsel (2017 to Present), Senior Vice President (2009 to 2017), Vice President, Counsel and Secretary (2008 to 2009), and various officer positions (since 2005), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Interim Chief Legal Officer, Senior Vice President and Assistant Secretary (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Interim Chief Legal Officer, Senior Vice President and Assistant Secretary (since 2021), Virtus Investment Trust and Virtus Strategy Trust; Assistant Secretary, (since 2021), Virtus AllianzGI Closed-End Funds; Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005), Virtus Mutual Fund Family; Interim Chief Legal Officer (since 2021), Senior Vice President (2013 to 2014), Vice President (2012 to 2013), Secretary and Chief Legal Officer (2005 to 2013), Assistant Secretary (2013 to 2014 and since 2017), Virtus Total Return Fund Inc.; Senior Vice President (2013 to 2014), Vice President (2012 to 2013), Secretary and Chief Legal Officer (2005 to 2013) and Assistant Secretary (2013 to 2014 and 2017 to 2019), the former Virtus Total Return Fund Inc.; Interim Chief Legal Officer (since 2021), Senior Vice President (since 2017), Assistant Secretary (since 2013), Vice President, Chief Legal Officer, Counsel and Secretary (2010 to 2013), Virtus Variable Insurance Trust; Interim Chief Legal Officer (since 2021), Senior Vice President (2013 to 2014), Vice President (2011 to 2013), Assistant Secretary (since 2011), Virtus Global Multi-Sector Income Fund; Assistant Secretary (2015 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Interim Chief Legal Officer (since 2021), Senior Vice President (since 2017) and Assistant Secretary (since 2013), Virtus Alternative Solutions Trust; Secretary (since 2015), ETFis Series Trust I; and Secretary (since 2015), Virtus ETF Trust II.
Engberg, Nancy J.
YOB: 1956 		Senior Vice President (since 2017); Vice President (2011 to 2017); and Chief Compliance Officer (since 2011). Senior Vice President (since 2017), Vice President (2008 to 2017) and Chief Compliance Officer (2008 to 2011 and since 2016), and various officer positions (since 2003), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President and Chief Compliance Officer (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Senior Vice President and Chief Compliance Officer (since 2021), Virtus Investment Trust, Virtus Strategy Trust and Virtus AllianzGI Closed-End Funds; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Mutual Fund Family; Senior Vice President (since 2017), Vice President (2010 to 2017) and Chief Compliance Officer (since 2011), Virtus Variable Insurance Trust; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Global Multi-Sector Income Fund; Senior Vice President (since 2017), Vice President (2012 to 2017) and Chief Compliance Officer (since 2012), Virtus Total Return Fund Inc.; Senior Vice President (2017 to 2019), Vice President (2012 to 2017) and Chief Compliance Officer (2012 to 2019), the former Virtus Total Return Fund Inc.; Senior Vice President (since 2017), Vice President (2013 to 2016) and Chief Compliance Officer (since 2013), Virtus Alternative Solutions Trust; Senior Vice President (2017 to 2021), Vice President (2014 to 2017) and Chief Compliance Officer (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Chief Compliance Officer (since 2015), ETFis Series Trust I; and Chief Compliance Officer (since 2015), Virtus ETF Trust II.
Short, Julia R.
YOB: 1972 		Senior Vice President (since 2017). Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Senior Vice President (since 2021), Virtus Investment Trust, Virtus Strategy Trust and Virtus Closed-End Funds; Senior Vice President (2018 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; and Senior Vice President (since 2018), Virtus Global Multi-Sector Income Fund and Virtus Total Return Fund Inc.; Senior Vice President (2018 to 2019), the former Virtus Total Return Fund Inc.; Senior Vice President (since 2017), Virtus Mutual Fund Family; President and Chief Executive Officer, RidgeWorth Funds (2007 to 2017); and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017).
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FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Address and
Year of Birth 		Position(s) Held
with Trust and
Length of
Time Served 		Principal Occupation(s) During Past 5 Years
Smirl, Richard W.
YOB: 1967 		Executive Vice President (since 2021). Executive Vice President, Product Management (since 2021), and Executive Vice President and Chief Operating Officer (since 2021), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President (since 2021), The Merger Fund®, The Merger Fund® VL and Virtus Event Opportunities Trust; Executive Vice President (since 2021), Virtus Mutual Fund Family, Virtus Investment Trust, Virtus Strategy Trust, Virtus Global Multi-Sector Income Fund, and Virtus Total Return Fund Inc.; Executive Vice President (May to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund 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.
135

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Table of Contents
VIRTUS EQUITY TRUST
101 Munson Street
Greenfield, MA 01301-9668
Trustees
Philip R. McLoughlin, Chairman
George R. Aylward
Donald C. Burke
Sidney E. Harris
John R. Mallin
Connie D. McDaniel
Geraldine M. McNamara
R. Keith Walton
Brian T. Zino
Advisory Board Members
Sarah E. Cogan
Deborah A. DeCotis
F. Ford Drummond
William R. Moyer
Officers
George R. Aylward, President
Peter Batchelar, Senior Vice President
W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer
Kevin J. Carr, Senior Vice President, Chief Legal Officer and Secretary
Nancy J. Engberg, Senior Vice President and Chief Compliance Officer
Julia R. Short, Senior Vice President
Richard W. Smirl, Executive Vice President
Investment Adviser
Virtus Investment Advisers, Inc.
One Financial Plaza
Hartford, CT 06103-2608
Principal Underwriter
VP Distributors, LLC
One Financial Plaza
Hartford, CT 06103-2608
Administrator and Transfer Agent
Virtus Fund Services, LLC
One Financial Plaza
Hartford, CT 06103-2608
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286-1048
Independent Registered Public
Accounting Firm
PricewaterhouseCoopers LLP
2001 Market Street
Philadelphia, PA 19103-7042
How to Contact Us
Mutual Fund Services 1-800-243-1574
Adviser Consulting Group 1-800-243-4361
 
Important Notice to Shareholders
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

Table of Contents
P.O. Box 9874
Providence, RI 02940-8074
For more information about Virtus Mutual Funds,
please contact us at 1-800-243-1574, or visit Virtus.com.
8015 11-21

Item 2. Code of Ethics.

 

  (a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

  (b)

Effective October 1, 2021, the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions was amended. A copy of the currently applicable code is included as an exhibit.

 

  (d)

The registrant has not granted any waivers, during the period covered by this report, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of the instructions for completion of this Item.

Item 3. Audit Committee Financial Expert.

 

  (a)(1)

The Registrant’s Board of Trustees has determined that the Registrant has an “audit committee financial expert” serving on its Audit Committee.

 

  (a)(2)

The Registrant’s Board of Trustees has determined that each of Donald C. Burke, Connie D. McDaniel and Brian T. Zino possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert.” Each such individual is an “independent” trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

 

  (a)(3)

Not applicable.

Item 4. Principal Accountant Fees and Services.

 

  •  

Registrant may incorporate the following information by reference, if this information has been disclosed in the registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report.

Audit Fees

 

  (a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal years ended September 30, 2020 and September 30, 2021 are $210,889 and $274,360, respectively.

Audit-Related Fees

 

  (b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item for fiscal years ended September 30, 2020 and September 30, 2021 are $17,185 and $20,402, respectively. Such audit-related fees include out of pocket expenses.

Tax Fees

 

  (c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning for fiscal years ended September 30, 2020 and September 30, 2021 are $45,725 and $77,550, respectively.

“Tax Fees” are those primarily associated with review of the Trust’s tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Trust’s financial statement, review of year-end distributions by the Fund to avoid excise tax for the Trust, periodic discussion with management on tax issues affecting the Trust, and reviewing and signing the Fund’s federal income tax returns.

All Other Fees

 

  (d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are for fiscal years ended September 30, 2020 and September 30, 2021 are $0 and $0, respectively.

 

  (e)(1)

Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Board of Trustees of Virtus Equity Trust (the “Fund”) has adopted policies and procedures with regard to the pre-approval of services provided by its independent auditors. Audit, audit-related and tax compliance services provided to the Fund on an annual basis require specific pre-approval by the Audit Committee. The Audit Committee must also approve other non-audit services provided to the Fund and those non-audit services provided to the Fund’s Affiliated Service Providers that relate directly to the operations and financial reporting of the Fund. Certain of these non-audit services that the Audit Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent auditors may be approved by the Audit Committee without consideration on a specific case-by-case basis (“general pre-approval”).

The Audit Committee has determined that Ms. Connie D. McDaniel, Chair of the Audit Committee, may provide pre-approval for such services that meet the above requirements in the event such approval is sought between regularly scheduled meetings. In any event, the Audit Committee is informed of, and ratifies, each service approved subject to general pre-approval at the next regularly scheduled in-person Audit Committee meeting.

 

  (e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 0%

(c) 0%

(d) N/A

 

  (f)

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent.

 

  (g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for fiscal years ended September 30, 2020 and September 30, 2021 are $62,910 and $97,952, respectively.

 

  (h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form.

 

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(2)(1) Not applicable.

(a)(2)(2) Not applicable.

 

(b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)  

Virtus Equity Trust

By (Signature and Title)*  

/s/ George R. Aylward

  George R. Aylward, President
  (principal executive officer)
Date     12/7/21

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/s/ George R. Aylward

  George R. Aylward, President
  (principal executive officer)

Date    12/7/21

 

By (Signature and Title)*  

/s/ W. Patrick Bradley

  W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
  (principal financial officer)

Date    12/7/21

 

* 

Print the name and title of each signing officer under his or her signature.

Certification Pursuant to Section 302

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

I, George R. Aylward, certify that:

 

1.

I have reviewed this report on Form N-CSR of Virtus Equity Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:   12/7/21      

/s/ George R. Aylward

        George R. Aylward, President
        (principal executive officer)

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

I, W. Patrick Bradley, certify that:

 

1.

I have reviewed this report on Form N-CSR of Virtus Equity Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:   12/7/21      

/s/ W. Patrick Bradley

        W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
        (principal financial officer)
Certification Pursuant to Section 906

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act

I, George R. Aylward, President of Virtus Equity Trust (the “Registrant”), certify that:

 

  1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:   12/7/21      

/s/ George R. Aylward

        George R. Aylward, President
        (principal executive officer)

I, W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer of Virtus Equity Trust (the “Registrant”), certify that:

 

  1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:   12/7/21      

/s/ W. Patrick Bradley

        W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
        (principal financial officer)
Code of Ethics

EX-99.CODE ETH

CODE OF ETHICS FOR

CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS

Each Fund is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure — financial and otherwise — in compliance with applicable law. This Code of Ethics applies to each Fund’s Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, “Senior Officers”).

Senior Officers must comply with applicable law and have a responsibility to conduct themselves in an honest and ethical manner. They have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns.

Senior Officers may be subject to certain conflicts of interest inherent in the operation of the Funds, because the Senior Officers (in addition to their role as senior officers of the Fund) currently or may in the future serve as officers or employees of a Virtus affiliated investment adviser1 (the “Adviser”), Virtus Investment Partners, Inc. or other affiliates thereof (collectively, “Virtus”) and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by Virtus.

A variety of laws and regulations applicable to, and certain policies and procedures adopted by, the Fund, the Adviser or Virtus govern certain conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Fund, including:

 

  •  

the Investment Company Act of 1940, as amended, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the “1940 Act”);

 

  •  

the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the “Advisers Act”);

 

  •  

the Code of Ethics adopted by the Fund pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the “Fund’s 1940 Act Code of Ethics”);

 

  •  

one or more codes of ethics adopted by the Adviser that have been reviewed and approved by those Members of the Board that are not “interested persons” of the Fund (the “Independent Members”) within the meaning of the 1940 Act (the “Adviser’s 1940 Act Code of Ethics” and, together with the Fund’s 1940 Act Code of Ethics, the “1940 Act Codes of Ethics”);

 

  •  

the policies and procedures adopted by the Fund pursuant to Rule 38a-1 under the 1940 Act (collectively, the “Fund Policies”); and

 

  •  

each Adviser’s general policies and procedures (collectively, the “Adviser Policies”).

 

1 

Virtus Investment Advisers, Inc.; Virtus Alternative Investment Advisers, Inc.; Virtus Fund Advisers, LLC; Ceredex Value Advisors LLC; Duff & Phelps Investment Management Co.; Kayne Anderson Rudnick Investment Management LLC; Newfleet Asset Management, LLC; NFJ Investment Group, LLC; Seix Investment Advisors LLC; Silvant Capital Managemente LLC; Sustainable Growth Advisers, LP; Westchester Capital Management, LLC. (2021.10)

 

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The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Fund Policies and the Adviser Policies are referred to herein collectively as the “Additional Conflict Rules”.

This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Ethics, unless and until the Board of the Fund (the “Board”) shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Ethics.

Senior Officers Should Act Honestly and Candidly

Each Senior Officer must:

 

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act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules;

 

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comply with the laws, rules and regulations that govern the conduct of the Fund’s operations and report any suspected violations thereof in accordance with the section below entitled “Compliance With Code Of Ethics”; and

 

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adhere to a high standard of business ethics.

Conflicts Of Interest

A conflict of interest for the purpose of this Code of Ethics occurs when private interests interfere in any way, or even appear to interfere, with the interests of the Fund. Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Fund, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Fund also are or may be officers of the Adviser and other funds advised or serviced by Virtus.

Questions regarding the application or interpretation of this Code of Ethics should be raised with the Chief Compliance Officer of the Fund (the “Chief Compliance Officer”) prior to taking action.

Some conflict of interest situations that should be approved by the Chief Compliance Officer, if material, include the following:

 

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the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Fund has current or prospective business dealings (other than the Adviser or Virtus), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

 

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any ownership interest in, or any consulting or employment relationship with, any of the Fund’s service providers, other than the Adviser or Virtus; or

 

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a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer’s employment by the Adviser or Virtus, such as compensation or equity ownership.

 

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Disclosures

It is the policy of the Funds to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Fund. Senior Officers are required to promote compliance with this policy and to abide by the Fund’s standards, policies and procedures designed to promote compliance with this policy.    

Each Senior Officer must:

 

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familiarize himself or herself with the disclosure requirements applicable to the Fund as well as the business and financial operations of the Fund; and

 

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not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, including to the Board, the Fund’s independent auditors, the Fund’s counsel, counsel to the Independent Members, governmental regulators or self-regulatory organizations.

Compliance With Code Of Ethics

Known or suspected violations of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Fund, should be reported on a timely basis to the Chief Compliance Officer or may be reported to the Virtus compliance hotline maintained in accordance with the Fund’s Procedures for Complaints Regarding Accounting, Internal Accounting Controls or Auditing Matters (the “Whistleblower Policy”). In accordance with that Policy, no one will be subject to retaliation because of a good faith report of a suspected violation.

The Fund will follow these procedures (or, alternatively, the procedures set forth in the Whistleblower Policy) in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics:

 

  •  

the Chief Compliance Officer will take all appropriate action to investigate any actual or potential violations reported to him or her;

 

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violations and potential violations will be reported to the applicable Fund Board after such investigation;

 

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if the Fund Board determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and

 

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appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or other appropriate law enforcement authorities.

Waivers Of Code Of Ethics

Except as otherwise provided in this Code of Ethics, the Chief Compliance Officer is responsible for applying this Code of Ethics to specific situations in which questions are presented to the Chief Compliance Officer and has the authority to interpret this Code of Ethics in any particular situation.

Each Fund Board, or any duly designated committee thereof, is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules.

 

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Recordkeeping

Records pertaining to the matters covered by this Policy will be maintained and preserved in accordance with applicable laws and regulations and the Fund’s Books and Records Policy.

All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Members and their counsel, the Fund and its counsel, the Adviser and/or other Virtus entity and its counsel and any other advisors, consultants or counsel retained by the Members, the Independent Members or any committee of the Board.

 

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