Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Investor Presentation (March 2016)
20 slides from Virtus Investment Partners's investor presentation, Mar 31, 2016
Slide 1: Virtus Sector Trend Strategy
VIRTUS SECTOR TREND STRATEGY March 31, 2016 For Managed Account Use Only.
Slide 2: Virtus Investment Partners Business Overview
VIRTUS INVESTMENT PARTNERS Business Overview Virtus is an independent, publicly traded asset management company (NASDAQ: VRTS) Disciplined, institutional-quality money management through wholly-owned subsidiaries and select subadvisers, each with a distinct investment philosophy and style Inve
Slide 3: Investment Partners
INVESTMENT PARTNERS Virtus offers * an array of distinctive capabilities from our * * investment partners * * * * * * *Virtus Investment Partners has an ownership interest in the firm. For Managed Account Use Only. 3
Slide 4: Virtus Sector Trend Strategy
VIRTUS SECTOR TREND STRATEGY The Virtus Sector Trend Strategy is the result of close collaboration between Dorsey, Wright & Associates and Virtus Investment Advisers. Virtus Sector + Trend Strategy TECHNICAL ANALYSIS INVESTMENT ADVISER Relative Strength Ranking Model specification, portfolio on S&P
Slide 5: A Lesson in Market Cycles: Era 1
A LESSON IN MARKET CYCLES Market Era 1: January 3, 1949 – December 31, 1966 $1,500 S&P 500® cumulative returns (in %) Best Worst 18-year post-WWII 12 months 52.6 -14.9 bull market 36 months 133.8 3.1 $1,173 $1,000 Booming economy Low volatility; general S&P uptrend $500 Annualized total return
Slide 6: A Lesson in Market Cycles: Era 2
A LESSON IN MARKET CYCLES Market Era 2: January 3, 1967 – December 31, 1981 $350 S&P 500® cumulative returns (in %) Best Worst A period marked by 12 months 41.8 -38.9 bouts of extreme $300 36 months 78.1 -28.6 $280 volatility $250 Stagnant economy, rising inflation $200 Annualized rate of infl
Slide 7: A Lesson in Market Cycles: Era 3
A LESSON IN MARKET CYCLES Market Era 3: January 4, 1982 – December 31, 1999 $2,500 S&P 500® cumulative returns (in %) Best Worst 18-year bull market 12 months 61.0 -17.8 $2,130 with most spectacular $2,000 36 months 137.4 5.6 rise in S&P 500® history $1,500 Exceptional returns $1,000 with very l
Slide 8: A Lesson in Market Cycles: Era 4
A LESSON IN MARKET CYCLES Market Era 4: January 3, 2000 – December 31, 2015 $200 S&P 500® cumulative returns (in %) Best Worst $189 12 months 53.6 -43.3 Increased volatility, two 36 months 97.9 -40.9 significant bear markets, $150 and overall modest returns As uncertainty persists, $100 active a
Slide 9: Avoiding Market Extremes Has Produced Better Results
AVOIDING MARKET EXTREMES HAS PRODUCED BETTER RESULTS S&P 500® Index Annualized Returns for the period 4/1/96 – 3/31/16 (5054 Trading Days): 7.81% Miss Both Miss the Best Miss the Worst Best and Worst 10 days 4.14% 12.03% 8.22% 20 days 1.70% 15.07% 8.55% 30 days -0.39% 17.73% 8.78% 40 days -2.31% 20.
Slide 10: The Arithmetic of Loss
THE ARITHMETIC OF LOSS The negative compounding effects on wealth mean that the deeper the loss, the more time and patience it takes to recover. The chart is a mathematical example. It is for illustrative purposes only and is not indicative of the performance of the Virtus Sector Trend Strategy. *As
Slide 11: A History of Bull Markets
A HISTORY OF BULL MARKETS Bull markets vary greatly in duration and magnitude. The current bull market is one of the longest and strongest in modern history. S&P 500® Index: 07/15/1957 – 3/31/16 Past performance is not indicative of future results. Source: S&P Dow Jones Indices. Ned Davis Research,
Slide 12: Participate and Protect
PARTICIPATE AND PROTECT The Virtus Sector Trend Dorsey, Wright & Associates (DWA) employs its Strategy RANK proprietary Relative Strength price momentum model to strives to rank and select market components participate in rising markets while placing an emphasis Virtus Investment Advisers (VIA)
Slide 13: The Value of Relative Strength
THE VALUE OF RELATIVE STRENGTH Unlike fundamental analysis, which focuses on corporate fundamentals, relative strength—or technical price momentum—analysis uses Point & Figure methodology to evaluate securities through a simple but powerful lens on supply and demand. By understanding supply and
Slide 14: Risk Indicator
RISK INDICATOR The Risk Indicator is based on the 200 day moving average price level of the S&P 500® Index. S&P 500® Risk States 400 1 Lower Risk 300 Low Risk Higher Risk Price Return S&P 500 ® Index 200 Moving Average Level 100 0 0 S&P 500 Index Lower Risk Higher Risk Avg. Daily Return 0.03% 0.10%
Slide 15: Investment Process
INVESTMENT PROCESS For Managed Account Use Only. 15
Slide 16: Allocation Examples
ALLOCATION EXAMPLES For Managed Account Use Only. 16
Slide 17: Virtus Sector Trend Strategy: Growth of $100
VIRTUS SECTOR TREND STRATEGY Growth of $100 as of 3/31/16 Statistics1 225 Virtus Sector Trend Strategy S&P 500® Virtus Sector Trend Strategy (Gross) 200 As of 3/31/2016 (Gross) Index Virtus Sector Trend Strategy (Net 3%) $183 Alpha 2.1% 0.0% 175 S&P 500 Index R-Squared 64.7% 100.0% $162 150 Beta 0.6
Slide 18: Virtus Sector Trend Strategy Performance
VIRTUS SECTOR TREND STRATEGY Performance1 Virtus Sector Trend Strategy S&P 500® As of 3/31/2016 (Gross) (Net 3%) Index Annualized Return 9.56% 6.35% 12.22% 3 Yr Return (Annualized) 7.56% 4.39% 11.82% 5 Yr Return (Annualized) 8.82% 5.62% 11.58% Standard Deviation 8.91 8.91 11.90 Maximum Drawdown -10.
Slide 19: Disclosure: VIA Sector Trend SMA Composite
DISCLOSURE VIA SECTOR TREND SMA COMPOSITE Composite Assets Annual Performance Results Composite Benchmark† Total Firm U.S. Number Year Assets Dollars of 3 Yr Ann 3 Yr Ann Composite End (billions) (millions) Accounts Gross Std Dev Net Return Std Dev Dispersion 2014 38.0 9 Five or fewer 8.63 8.51 5.44
Slide 20: For more information, please contact us
For more information, please contact us at 1.800.243.4361 or visit www.Virtus.com 6313 5-16 © 2016 Virtus Investment Partners, Inc. For Managed Account Use Only.
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