The investment manager said that the Virtus Allocator Premium AlphaSector Fund and the Virtus Global Premium AlphaSector Fund will invest in a combination of exchange traded funds (ETFs) and cash equivalents.
The Virtus Allocator Premium AlphaSector Fund will adopt a multi-strategy approach that offers global diversification through allocations to four asset classes using ETFs across domestic equities, international and emerging markets equities, fixed income, and alternatives such as real estate and gold.
The Global Premium AlphaSector Fund will allocate assets to domestic and international equities through the use of nine ETFs which represent the primary sectors of the S&P 500 Index and two international ETFs, representing developed international and emerging markets.
The Virtus Global Commodities Stock Fund will invest in the equity securities of commodity and commodity-related companies. The fund will allocate among four commodities sectors: base metals, precious metals, energy, and agriculture. It is designed to take advantage of rising global demand for commodities in both developing and emerging markets.
The Virtus Global Commodities Stock Fund is subadvised by Harris Investment Management in conjunction with specialty commodity firm Coxe Advisors, Virtus said.
Portfolio manager Donald Coxe’s expertise in global capital markets and commodities will be leveraged through macroeconomic research on commodity sectors which is then combined with fundamental, bottom-up security analysis.
Virtus executive vice president of product management Frank Waltman said that the addition of these three funds expands the breadth and depth of Virtus’ product offerings and provides additional options for advisors to utilize when constructing portfolios for their clients.
"The new AlphaSector funds add to the array of product solutions that use the AlphaSector approach, which seeks to minimize portfolio risk during severe market downturns.
"Through the Virtus Global Commodities Stock Fund, we are able to offer a new product that will help investors gain exposure to the ongoing and increasing global demand for commodities," Waltman said.
