Virtus AllianzGI Technology Fund USD Class INST (DRGTX) Exchange: NMFQS

The fund seeks to achieve its objective by normally investing at least 80% of its net assets (plus borrowings made for investment purposes) in common stocks and other equity securities of technology companies and in derivatives and other synthetic instruments that have economic characteristics similar to equity securities of technology companies. The fund’s use of derivative instruments will often have effects that are comparable to leverage and that could either magnify or limit the fund’s gains or losses depending upon the particular derivatives strategies used. The fund normally may invest up to 50% of its assets in non-U.S. securities, including emerging market securities. Under normal market conditions, the fund will invest no more than 25% of its assets in any one country outside of the United States. The fund intends to invest primarily in companies with market capitalizations greater than $500 million. The fund is “non-diversified,” which means that it may invest a significant portion of its assets in a relatively small number of issuers, which may increase risk. The portfolio managers define technology companies as those that provide technology products or services or utilize technology to gain competitive advantages. These may include, without limitation, internet products and services, computers and computer peripherals, software, electronic components and systems, communications equipment and services, semiconductors, automotive technology, transportation services and products, artificial intelligence technology, video gaming, security services and products, media and information services, environmental services, chemical products and synthetic materials, defense and aerospace products and services, nanotechnology, energy equipment and services and others. The portfolio managers evaluate fundamental value and growth prospects and focus on companies that they expect will have strong potential for capital appreciation. In addition to common stocks and other equity securities (such as preferred stocks, convertible securities and warrants), the fund may invest in securities issued in initial public offerings (IPOs) and may utilize foreign currency exchange contracts, options, futures and forward contracts, swap agreements and other derivative instruments. Although the fund may invest in derivatives of any kind, it expects to invest in options, swaps and, to a lesser extent, foreign exchange contracts. The fund may write call options on individual securities that it does not hold in its portfolio (i.e., “naked” call options) and engage in short sales to the maximum extent permitted under applicable regulation. The fund ordinarily expects to use derivative instruments in an attempt to enhance the fund’s investment returns, to hedge against market and other risks or to obtain market exposure. The fund may enter into credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements in order to manage its exposure to credit, currency and interest rate risk