Virtus Launches Virtus KAR Developing Markets Fund Managed by Kayne Anderson Rudnick

Rhea-AI Summary

Virtus Investment Partners (NASDAQ: VRTS) has launched the Virtus KAR Developing Markets Fund, managed by Hyung Kim and Craig Thrasher, offering investors access to a concentrated portfolio of 30-60 high-quality companies in developing market countries. The fund aims to capitalize on growth opportunities in emerging economies, focusing on firms with sustainable competitive advantages and strong management. With $56.3 billion in assets under management as of March 31, 2021, Kayne Anderson Rudnick, the affiliated manager, emphasizes their commitment to rigorous research and performance in equity investing.

Positive

• Launch of the Virtus KAR Developing Markets Fund enhances product offerings.
• Focus on high-quality companies in developing markets indicates growth potential.
• Management by experienced professionals may attract investors.

Negative

• Investing in developing markets carries inherent risks such as political and currency instability.
• The fund's non-diversified nature may increase susceptibility to negative impacts on individual holdings.

HARTFORD, Conn., June 23, 2021 /PRNewswire/ -- Virtus Investment Partners (NASDAQ: VRTS), which operates a multi-boutique asset management business, and affiliated manager Kayne Anderson Rudnick Investment Management (KAR) today introduced the Virtus KAR Developing Markets Fund (I Share: VIDMX), which offers investors exposure to high-quality companies in developing market countries.

The Fund, managed by Hyung Kim and Craig Thrasher, CFA, provides access to a high-conviction, concentrated portfolio of approximately 30-60 holdings consisting of the stocks of companies across market capitalizations that are located in developing markets. Kim said there are numerous opportunities and rewards with investing in developing markets, which are generally considered emerging and frontier markets. "We believe the biggest future growth opportunities are going to be found in the fastest-growing economies," he said.

The Fund follows KAR's approach of identifying market-dominant businesses, described by Thrasher as companies that have sustainable competitive advantages, strong management, and low financial risk characteristics with the potential to grow over market cycles.

KAR's Chief Investment Officer Doug Foreman said, "We are pleased to introduce this fund which builds on the breadth of our experience and our success in the emerging markets small-cap segment. We believe developing market countries offer equally compelling opportunities to invest in quality companies with differentiated business models."

Barry Mandinach, executive vice president and head of distribution at Virtus, added that the Virtus KAR Developing Markets Fund aligns with KAR's commitment to use deep fundamental research to create strong performing strategies in a variety of product structures.

"KAR is a great partner with a multitude of distinctive investment strategies that are attractive to mutual fund investors and our distribution partners," Mandinach said. "KAR continues to demonstrate strength in equity investing in the domestic and international markets."

About Kayne Anderson Rudnick

Kayne Anderson Rudnick is an investment management firm founded in 1984 by entrepreneurs Richard Kayne and John Anderson, for whom the Anderson School of Management at the University of California, Los Angeles is named. Based in Los Angeles, the firm had $56.3 billion in assets under management as of March 31, 2021. The company builds equity portfolios of companies that have strong, consistent growth with low business and financial risk and manages assets for corporations, endowments, foundations, public entities and high-net-worth individuals. With more than 30 years of experience, KAR is known for its commitment to high quality in its business practices and investment strategies.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. In addition to Kayne Anderson Rudnick Investment Management, Virtus' affiliates include Ceredex Value Advisors, Duff & Phelps Investment Management, Newfleet Asset Management, NFJ Investment Group, Seix Investment Advisors, Silvant Capital Management, Sustainable Growth Advisers, and Virtus ETF Solutions.

Risk Considerations

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small- or medium-sized companies may enhance that risk. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets. Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio's assets as intended. Prospectus: For additional information on risks, please see the fund's prospectus.

Please consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. The prospectus contains this and other information about the fund. For this and other information about any Virtus mutual fund, contact your financial representative, call 1-800-243-4361, or visit Virtus.com. Read the prospectus carefully before you invest or send money.

Distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.

 

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SOURCE Virtus Investment Partners, Inc.

FAQ

What is the Virtus KAR Developing Markets Fund?

The Virtus KAR Developing Markets Fund is a new investment fund launched by Virtus Investment Partners that focuses on high-quality companies in developing market countries.

Who manages the Virtus KAR Developing Markets Fund?

The fund is managed by Hyung Kim and Craig Thrasher, CFA, experienced professionals in investment management.

What are the primary investment strategies of the Virtus KAR Developing Markets Fund?

The fund employs a concentrated portfolio strategy, investing in 30-60 holdings with a focus on companies that have sustainable competitive advantages.

What risks are associated with the Virtus KAR Developing Markets Fund?

The fund faces risks typical of investing in emerging markets, such as political, economic, and currency risks, and it is non-diversified, increasing its exposure to negative impacts on individual securities.

How much assets does Kayne Anderson Rudnick manage?

As of March 31, 2021, Kayne Anderson Rudnick managed $56.3 billion in assets.