Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Pres Diversification Means Saying Sorry Notes Version 3206
31 slides from Virtus Investment Partners's investor presentation, July 2016
Slide 1: Diversification Means Always Having to Say You’re Sorry
Diversification Means Always Having to Say You’re Sorry
Slide 2: It's All So Simple
IT’S ALL SO SIMPLE Buy low, sell high. Be diversified. Make informed choices. Be patient. 2
Slide 3: Unpleasant Truths, Comforting Lies
INVESTMENT PARTNERS UNPLEASANT COMFORTING TRUTHS LIES
Slide 4: Buy low, sell high.
INVESTMENT PARTNERS. Buy low, sell high.
Slide 5: 20-Year Average Fund vs. Investor Returns
20-YEAR AVERAGE FUND VS. INVESTOR RETURNS 8.2% 4.7% S&P 500® Average Equity Fund Investor Source: Quantitative Analysis of Investor Behavior, 2016, DALBAR, Inc. www.dalbar.com. Average equity investor performance results are calculated using monthly fund data supplied by the Investment Company Insti
Slide 6: Be diversified.
INVESTMENT PARTNERS. Be diversified.
Slide 7: The Standard View
THE STANDARD VIEW *As of 3/31/16. Source: Virtus Performance Analytics Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The above table is presented for informational purposes only and is not meant to represent the performa
Slide 8: A Different View
A DIFFERENT VIEW *As of 3/31/16 Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The above table is presented for informational purposes only and is not meant to represent the performance of any Virtus product. Performance
Slide 9: Diversification in 2014…
DIVERSIFICATION IN 2014… 5.2% Average diversified portfolio is represented by: S&P 500® (25%), Russell 2000® (10%), MSCI EAFE (15%), MSCI Emerging Markets (5%), Barclays Aggregate (25%), CS/Tremont Equity Market Neutral Index (5%), Bloomberg Commodity Index (5%), NAREIT Equity REIT Index (5%), and c
Slide 10: … Didn’t Beat “The Market”
… DIDN’T BEAT “THE MARKET” 5.2% 13.6% 10
Slide 11: Olympic medalists satisfaction source
Source: Medvec, V.H., Madey, S.F., & Gilovich, T. (1995). When Less Is More: Counterfactual Thinking and Satisfaction Among Olympic medalists. Journal of Personality and Social Psychology, 69, 603-610. 11
Slide 12: Make informed choices.
INVESTMENT PARTNERS. Make informed choices.
Slide 13: Lots of Choice Is Awesome
LOTS OF CHOICE IS AWESOME INVESTMENT PARTNERS 13
Slide 14: Fund A Fund B
INVESTMENT PARTNERS
Slide 15: Fund list
Fund A Fund P Fund B Fund Q Fund C Fund R Fund D Fund S Fund E Fund T Fund F Fund U Fund G Fund V Fund H Fund W Fund I Fund X Fund J Fund Y Fund K Fund Z Fund L Fund M Fund N Fund O 15
Slide 16: Expanded fund list
Fund A Fund P Fund EE Fund TT Fund III Fund XXX Fund B Fund Q Fund FF Fund UU Fund JJJ Fund YYY Fund C Fund R Fund GG Fund VV Fund KKK Fund ZZZ Fund D Fund S Fund HH Fund WW Fund LLL Fund AAAA Fund E Fund T Fund II Fund XX Fund MMM Fund BBBB Fund F Fund U Fund JJ Fund YY Fund NNN Fund CCCC Fund G Fu
Slide 17: The Paradox of Choice
THE PARADOX OF CHOICE Happiness Choices 17
Slide 18: Be patient.
INVESTMENT PARTNERS. Be patient.
Slide 19: 19
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Slide 20: Please Don’t
PLEASE DON’T Try to “beat the market” Try to pick the “best” managers Try to time market tops and bottoms Watch financial television Mistake gambling for investing Ask for the impossible 20
Slide 21: Have a Plan
HAVE A PLAN 67% Source: Natixis Blog, Closing the Pension Gap Begins with Better Financial Planning, April 27, 2015 21
Slide 22: Gain Historical Perspective
GAIN HISTORICAL PERSPECTIVE 22
Slide 23: Be “Less Wrong”
BE “LESS WRONG” “Once we realize that imperfect understanding is the human condition, there is no shame in being wrong, only in failing to correct our mistakes.” “My approach works not by making valid predictions but by allowing me to correct false ones.” “I’m only rich because I know when I’m wrong
Slide 24: Ask the Right Questions
ASK THE RIGHT QUESTIONS Equities Bonds Alts Portfolios Behavior • How do we generate the needed long- term growth from equities without sticking our necks out too far? 24
Slide 25: Ask the Right Questions
ASK THE RIGHT QUESTIONS Equities Bonds Alts Portfolios Behavior • How do we • How do we generate the approach fixed needed long-term income growth from securities in an equities without era of sticking our necks unprecedented out too far? rock-bottom yields? 25
Slide 26: Ask the Right Questions
ASK THE RIGHT QUESTIONS Equities Bonds Alts Portfolios Behavior • How do we • How do we • Why, how, and generate the approach fixed should we needed long-term income securities integrate non- growth from in an era of traditional equities without unprecedented investment sticking our necks rock-botto
Slide 27: Ask the Right Questions
ASK THE RIGHT QUESTIONS Equities Bonds Alts Portfolios Behavior • How do we • How do we • Why, how, and • How do we build generate the approach fixed should we truly diversified needed long-term income securities integrate non- portfolios which growth from in an era of traditional provide the best e
Slide 28: Ask the Right Questions
ASK THE RIGHT QUESTIONS Equities Bonds Alts Portfolios Behavior • How do we • How do we • Why, how, and • How do we build • With financial generate the approach fixed should we truly diversified decisions, how needed long-term income securities integrate non- portfolios which do we not growth from i
Slide 29: Please Do
PLEASE DO Have a long-term plan Have historical perspective Be “less wrong” Ask the right questions Acknowledge emotional needs Outsource complexity (“Pick your battles”) 29
Slide 30: Index definitions
Emerging Markets is represented by the MSCI Emerging Markets Index (net): 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. Internatio
Slide 31: For more information, please contact Virtus
For more information, please contact Virtus at 1.800.243.4361 or visit www.Virtus.com Mutual Funds distributed by VP Distributors, LLC member FINRA and subsidiary of Virtus Investment Partners, Inc. 3206 7-16 ©2016 Virtus Investment Partners 31
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