Virtus KAR Small-Cap Value Fund

Under normal circumstances, the fund invests at least 80% of its assets in common stocks of small market capitalization companies. It pursues long-term capital appreciation in the small market capitalization sector while seeking to incur less risk than the small capitalization value market. The fund invests in a select group of small market capitalization companies believed by the fund's subadviser to be undervalued relative to their future growth potential.