(PUB) Investing 2015

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7 Morningstar FundInvestor May 2015
Morningstar Analyst Rating 04-08-15
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Morningstar Pillars
Process
Performance
People
Parent
Price
§
¶
Positive
Positive
Positive
Negative
Neutral
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive § Negative ¶ Neutral
NAV 9.84 9.58 9.26 10.00 8.44 8.83 6.96 4.76 9.80 12.14 12.27 10.88
Total Return % 2.71 5.23 -6.58 19.62 -3.13 27.82 48.12 -46.04 37.16 29.21 31.08 19.67
+/-MSCI WexUS -6.01 9.10 -21.87 2.79 10.58 16.67 6.67 -0.51 20.51 2.56 14.46 -1.24
+/-MSCI Emg Mkt -7.39 7.42 -3.98 1.40 15.29 8.94 -30.39 7.29 -2.26 -2.93 -2.92 -5.88
Income Return % 0.00 0.67 0.79 0.65 0.50 0.79 1.63 0.99 0.69 1.55 0.82 1.07
Capital Return % 2.71 4.56 -7.37 18.97 -3.63 27.03 46.49 -47.03 36.47 27.66 30.26 18.60
Total Rtn % Rank Cat 91 3 89 39 2 5 96 3 47 73 57 80
Income $ 0.00 0.06 0.08 0.05 0.04 0.06 0.08 0.09 0.08 0.18 0.09 0.11
Capital Gains $ 0.00 0.11 0.00 0.03 0.07 0.00 0.00 0.70 5.92 3.39 1.76 0.85
Expense Ratio %
. 1.55 1.58 1.60 1.61 1.66 1.72 1.79 1.60 1.59 1.70 1.83
Income Ratio % . 0.71 0.79 0.78 1.09 0.87 1.34 0.65 0.77 0.60 0.91 0.49
Turnover Rate % . 28 31 28 29 33 50 126 92 83 43 49
Net Assets $mil 836 772 1,100 1,205 472 223 43 11 12 7 1 1
Performance 04-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011
2012
2013
2014
2015
-0.23 5.48 -13.61 6.54 -3.13
12.32 -3.31 5.05 4.86 19.62
1.40 -6.46 -1.27 -0.23 -6.58
1.94 7.67 -1.29 -2.87 5.23
1.77 . . . .
Trailing Total +/- MSCI +/- MSCI %Rank Growth of
Return% WexUS Emg Mkt Cat $10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-0.61 -9.49 -10.06 98 9,939
-2.78 -8.34 -6.70 84 9,722
5.58 2.95 -2.22 42 10,558
2.38 -6.36 -0.86 54 10,731
7.15 1.11 4.13 3 14,124
11.17 4.91 1.59 4 28,832
9.39 5.18 1.11 22 38,429
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
0.03 74 0.35 40
5.57 5 0.30 35
8.23 24 2.07 90
Potential Capital Gain Exposure: 5% of assets
Rating and Risk
Time Load-Adj Morningstar Morningstar Morningstar
Period Return % Rtn vs Cat Risk vs Cat Risk-Adj Rating
1 Yr -0.49
3 Yr 0.38 Avg Avg
5 Yr 5.89 High Low
10 Yr 10.51 High Low
Incept 9.56
Other Measures Standard Index Best Fit Index
MSCI WexUS
Alpha -4.7 -1.1
Beta 0.86 0.85
R-Squared 64 72
Standard Deviation 13.62
Mean 2.38
Sharpe Ratio 0.24
Morningstar’s Take by Gregg Wolper 04-08-15
Virtus Emerging Markets Opportunities is one of the
better choices in its field, but it requires understanding.ž
This fund, run by Rajiv Jain since 2006, has one of
the best returns in its Morningstar Category of
diversified emerging-markets for the trailing five years
through March 31, 2015, and it also has stellar returns
for the nearly nine-year period of his tenure. It’s also
crushed the MSCI Emerging Markets Index over both
stretches. What’s more, the fund has a Morningstar
Risk rating of Low, which indicates that it has been
less volatile (with downside volatility emphasized) than
most rivals. Indeed, in the severe downturn of 2011,
the fund outperformed the category average by nearly
17 percentage points, holding its loss to just 3.1%, and
in 2014, the fund gained 5.2% while the category
average fell 3%.
Jain has achieved this welcome combination by
diverging from the portfolios of peers and the index. He
focuses on steadily growing, tested companies, often
consumer-focused and oriented toward their domestic
markets. That helps shield the fund to a certain extent
from broad global investor sentiment toward emerging
markets as a whole or big names like the oil giants.
But country-specific sentiment can influence
performance, even though Jain targets companies
rather than countries. Most notably, the pessimism
surrounding India’s market for most of 2013, and the
rosy view in 2014, help explain why this fund, with a
marked overweighting in that market, landed in the
category’s bottom quartile in the former year but well
into the top quartile in the latter.
Jain’s patient, sensible approach has worked for
many years here and since 2002 at Virtus Foreign
Opportunities JVIAX. It should continue to do so. But
this unusual portfolio will be out of sync with the
markets at times, and will lag as a result. Patience is
thus critical for shareholders. In addition, the Parent
rating for Virtus, for whom Jain and Vontobel
subadvise, was recently downgraded to Negative.
That should not have much effect on this fund, for
Vontobel is separate from Virtus and has been allowed
to operate independently. But it bears watching.
Address: Virtus Insight Trust
Greenfield, MA 3301
800-243-1574
Web Address:
Inception: 08-11-99
Advisor: Virtus Investment Advisers, Inc.
Subadvisor: Vontobel Asset Management, Inc.
NTF Plans: DATALynx NTF, Federated Tr NTF
Minimum Purchase: $2500 Add: $100 IRA: $100
Min Auto Inv Plan: $100 Add: $100
Sales Fees: 5.75%L,
Management Fee: 1.00% mx./0.95% mn., 0.10%A
Actual Fees: Mgt:0.96% Dist:0.25%
Expense Projections: 3Yr:$1039 5Yr:$1376 10Yr:$2325
Income Distribution: Semi-Annually
Data through April 30, 2015
Virtus Emerging Markets Opportunities A Ticker Status Yield Total Assets Mstar Category
HEMZX Open 0.6% $10,700 mil Diversified Emerging Mkts
95% 99% 95% 94% 87% 94% 98% 95% 95%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 04-15
Historical Profile
Return
Risk
Rating
High
Low
Highest
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
15.0
20.0
25.0
32.0
Portfolio Analysis 03-31-15
Share change since 12-14 Total Stocks:74 Sector Country % Assets
British American Tobacco Cnsmr Def U.K. 5.08
Housing Development Fina Finan Svs India 5.06
Fidelityfi Instl MM Fds M . United States 4.49
Ambev SA ADR Cnsmr Def Brazil 3.95
ITC Ltd Cnsmr Def India 3.41
HDFC Bank Ltd Finan Svs India 3.25
Baidu Inc ADR Technology China 3.03
SABMiller PLC Cnsmr Def U.K. 2.98
Fomento Economico Mexica Cnsmr Def Mexico 2.68
Power Assets Holdings Lt Utilities Hong Kong 2.61
Sun Pharmaceuticals Indu Hlth care India 2.51
Cielo SA Technology Brazil 2.19
Hindustan Unilever Ltd Cnsmr Def India 2.16
Naspers Ltd Class N Technology South Africa 2.08
Sands China Ltd Cnsmr Cyc Macau 2.00
PT Bank Central Asia Tbk Finan Svs Indonesia 1.99
Tencent Holdings Ltd Technology China 1.85
Taiwan Semiconductor Man Technology Taiwan 1.81
Wal - Mart de Mexico SAB Cnsmr Def Mexico 1.72
Telekomunikasi Indonesia Comm Svs Indonesia 1.72
Current Investment Style
Market Cap %
Giant 75.6
Large 21.6
Mid 2.7
Small 0.1
Micro 0.0
Avg $mil:
29,537
Value Blnd Growth
Large Mid Small
Country Exposure % Stock
India 27
Brazil 14
U.K. 10
China 9
Mexico 7
Regional Exposure % Stock
UK/W. Europe 10
Japan 0
Asia X Japan 64
N. America 0
Latn America 21
Other 5
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 38.30 .
BasicMat 2.28 . 5 2
CnsmrCyc 7.95 . 10 7
FinanSvs 27.12 . 33 25
Real Est 0.95 . 2 1
Sensitive 22.87 .
CommSrvs 3.96 . 5 0
Energy 0.84 . 1 0
Industrl 0.56 . 1 0
Technlgy 17.51 . 18 3
Defensive38.82 .
CnsmrDef31.17 . 42 31
Hlthcare 4.57 . 5 3
Utilities 3.08 . 4 3
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 4.6
Stocks 95.4
Bonds 0.0
Other 0.0
Foreign 100.0
Growth Measures % Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
12.69
10.96
9.21
0.94
21.74
0.95
1.12
1.94
0.16
3.13
Value Measures Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
19.79
3.28
3.59
4.55
3.49
1.70
1.92
3.39
0.85
1.14
© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, complete or
timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at Toorder reprints, call312-696-6100. mfb.morningstar.com.
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