Virtus KAR Mid-Cap Core Fund

This fund typically dedicates at least 80% of its portfolio to equity securities issued by companies with medium market capitalizations. Its primary objective is to achieve sustained capital appreciation within the mid-cap sector, while also aiming to exhibit a risk profile comparable to the generally more stable large-capitalization S&P 500® Index. The fund's subadviser carefully selects a focused group of these mid-sized enterprises that are believed to be undervalued relative to their projected future growth potential.