Investment objective & strategy
As of April 23, 2025 · prospectusObjective. The fund has an investment objective of seeking to maximize total return through (i) current income that is exempt from federal income taxes and (ii) capital appreciation consistent with capital preservation.
Strategy. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax. The fund may invest its remaining assets in cash, cash equivalents and certain taxable debt instruments. There are no limits on the funds effective maturity or on the remaining maturities of individual securities in which the fund may invest. As a result of its investment strategy, the funds portfolio turnover rate may be 100% or more. In selecting investments for purchase and sale, the subadviser tries to manage risk as much as possible. Based on the subadvisers … Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in investment grade municipal securities, including securities subject to the U.S. federal alternative minimum tax, with income exempt from regular U.S. federal income tax. The fund may invest its remaining assets in cash, cash equivalents and certain taxable debt instruments. There are no limits on the funds effective maturity or on the remaining maturities of individual securities in which the fund may invest. As a result of its investment strategy, the funds portfolio turnover rate may be 100% or more. In selecting investments for purchase and sale, the subadviser tries to manage risk as much as possible. Based on the subadvisers analysis of municipalities, credit risk, market trends and investment cycles, the subadviser attempts to invest more of the funds assets in undervalued municipal securities and less in overvalued municipal securities taking into consideration maturity, sector, credit, state and supply and demand levels. The subadviser also attempts to identify and invest in municipal issuers with improving credit and avoid those with deteriorating credit. The fund invests in securities rated investment grade by at least one nationally recognized statistical rating organization or unrated securities that the subadviser believes are of comparable quality. The subadviser may retain securities if the rating of the security falls below investment grade and the subadviser deems retention of the security to be in the best interests of the fund. In addition, to implement its investment strategy, the fund may buy or sell derivative instruments (such as treasury futures) to use as part of a strategy designed to reduce exposure to other risks, such as interest rate or credit risks.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Pennsylvania Turnpike Commission, Subordinate, Series 2023 | — | $1.08M | 7.70% |
| TX WTR DEV BRD -REV | — | $1.04M | 7.46% |
| PHILADELPHIA PA REGD N/C B/E 5.00000000 | — | $839.56K | 6.00% |
| UNIV OF TEXAS TX PERMANENT UNIV FND | — | $607.38K | 4.34% |
| WASHINGTON ST REGD B/E 5.00000000 | — | $580.33K | 4.15% |
| SOUTH CAROLINA ST PUBLIC SVC AUTH REVENUE | — | $579.95K | 4.14% |
| STATE OF NEW JERSEY 5.25% 06-15-41 | — | $551.12K | 3.94% |
| KATY ISD | KATSCD | $504.02K | 3.60% |
| State Street Instl US Govt MMkt Inv | SAMXX | $491.41K | 3.51% |
| PITTSBURGH | — | $398.31K | 2.85% |
Portfolio moves
Dec 31, 2025 → Mar 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Virtus Seix Investment Grade Tax-Exempt Bond Fund · SISIX, STTBX | 32% | 0.50% |
| Virtus Seix Tax-Exempt Bond Fund · HXBIX, HXBZX, PXCZX | 31% | 0.58% |
| Destinations Municipal Fixed Income Fund · DMFFX, DMFZX | 6% | 0.66% |
Advisers
| Firm | Role |
|---|---|
| Virtus Investment Advisers, LLC | Adviser |
| Virtus Fixed Income Advisers, LLC | Sub-adviser |
Footnotes
- Expense ratio as of April 23, 2025, from the fund's prospectus.
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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