N-CSR 1 d529522dncsr.htm VIRTUS EQUITY TRUST Virtus Equity Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-00945

 

 

Virtus Equity Trust

(Exact name of registrant as specified in charter)

 

 

101 Munson Street

Greenfield, MA 01301-9668

(Address of principal executive offices) (Zip code)

 

 

Jennifer Fromm, Esq.

Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

One Financial Plaza

Hartford, CT 06103-2608

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 243-1574

Date of fiscal year end: September 30

Date of reporting period: September 30, 2023

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1.

Reports to Stockholders.

 

  (a)

The Report to Shareholders is attached herewith.

ANNUAL REPORT
VIRTUS EQUITY TRUST
September 30, 2023
Virtus KAR Capital Growth Fund*
Virtus KAR Equity Income Fund
Virtus KAR Global Quality Dividend Fund
Virtus KAR Mid-Cap Core Fund
Virtus KAR Mid-Cap Growth Fund*
Virtus KAR Small-Cap Core Fund
Virtus KAR Small-Cap Growth Fund
Virtus KAR Small-Cap Value Fund
Virtus KAR Small-Mid Cap Core Fund
Virtus KAR Small-Mid Cap Growth Fund
Virtus KAR Small-Mid Cap Value Fund
Virtus SGA Emerging Markets Growth Fund*
Virtus SGA Global Growth Fund
Virtus SGA New Leaders Growth Fund*
Virtus Tactical Allocation Fund*
*Prospectus supplement applicable to this fund appears at the back of this annual report.
Not FDIC Insured • No Bank Guarantee • May Lose Value

Table of Contents
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Fund Fund
Summary 		Schedule
of
Investments
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Proxy Voting Procedures and Voting Record (Form N-PX)
The subadvisers vote proxies, if any, relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees”, or the “Board”). You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at https://www.sec.gov.
PORTFOLIO  HOLDINGS INFORMATION
The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT-P. Form N-PORT-P is available on the SEC’s website at https://www.sec.gov.
This report is not authorized for distribution to prospective investors in the Funds presented in this book unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.

MESSAGE TO SHAREHOLDERS
To my fellow shareholders of Virtus Funds:
I am pleased to present this annual report, which reviews the performance of your Fund for the 12 months ended September 30, 2023.
After a challenging 2022, markets showed strength in 2023. Inflation began to slow while the U.S. economy demonstrated continued resilience. The efforts of the Federal Reserve (Fed) and other central banks to manage inflation appeared more likely to generate an economic “soft landing.” A brief banking crisis in March of 2023 was quickly resolved without impacting economic growth, and investors were optimistic about the possibilities for artificial intelligence (AI). As the fiscal year came to a close, however, concerns that interest rates might remain higher for longer began to weigh on markets.
Domestic equity indexes posted strong returns for the 12 months ended September 30, 2023. U.S. large-capitalization stocks led the way with a return of 21.62%, as measured by the S&P 500® Index, while small-cap stocks returned 8.93%, as measured by the Russell 2000® Index. International equities also performed well, with developed markets, as measured by the MSCI EAFE® Index (net), returning 25.65%, while emerging markets, as measured by the MSCI Emerging Markets Index (net), returned 11.70%.
In fixed income markets, the yield on the 10-year Treasury rose to 4.59% on September 30, 2023, from 3.83% on September 30, 2022. The broader U.S. fixed income market, as represented by the Bloomberg U.S. Aggregate Bond Index, returned 0.64% for the 12-month period, while non-investment grade bonds, as measured by the Bloomberg U.S. Corporate High Yield Bond Index, were up 10.28%.
Thank you for entrusting the Virtus Funds with your assets. Please call our customer service team at 800-243-1574 if you have questions about your account or require assistance. We appreciate your business and remain committed to your long-term financial success.
Sincerely,
George R. Aylward
President and Trustee, Virtus Funds
November 2023
Refer to the Fund Summary section for your Fund’s performance. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investing involves risk, including the risk of loss of principal invested.
1

VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited)
FOR THE SIX-MONTH PERIOD OF April 1, 2023 TO September 30, 2023
We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Equity Trust Fund (each, a “Fund”), you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. Class I shares and Class R6 shares are sold without sales charges and do not incur distribution and service fees. Class R6 shares also do not incur shareholder servicing fees. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The Annualized Expense Ratios may be different from the expense ratios in the Financial Highlights which are for the fiscal year ended September 30, 2023.
Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
    Beginning
Account Value
April 1, 2023 		  Ending
Account Value
September 30, 2023 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Capital Growth Fund
                
  Class A $ 1,000.00   $ 1,070.30   1.22 %   $ 6.33
  Class C 1,000.00   1,066.10   2.06   10.67
  Class I 1,000.00   1,071.60   0.97   5.04
  Class R6 1,000.00   1,072.50   0.74   3.84
KAR Equity Income Fund
                
  Class A 1,000.00   946.80   1.18   5.76
  Class C 1,000.00   943.50   1.93   9.40
  Class I 1,000.00   947.90   0.93   4.54
  Class R6 1,000.00   947.80   0.89   4.35
KAR Global Quality Dividend Fund
                
  Class A 1,000.00   952.10   1.35   6.61
  Class C 1,000.00   948.60   2.11   10.31
  Class I 1,000.00   952.70   1.11   5.43
  Class R6 1,000.00   954.30   0.79   3.87
KAR Mid-Cap Core Fund
                
  Class A 1,000.00   1,030.40   1.21   6.16
  Class C 1,000.00   1,026.50   1.96   9.96
  Class I 1,000.00   1,031.80   0.96   4.89
  Class R6 1,000.00   1,032.00   0.88   4.48
KAR Mid-Cap Growth Fund
                
  Class A 1,000.00   1,049.70   1.23   6.32
  Class C 1,000.00   1,045.70   2.01   10.31
  Class I 1,000.00   1,050.90   1.00   5.14
  Class R6 1,000.00   1,051.80   0.82   4.22
KAR Small-Cap Core Fund
                
  Class A 1,000.00   1,044.20   1.28   6.56
  Class C 1,000.00   1,040.50   1.98   10.13
  Class I 1,000.00   1,045.50   1.00   5.13
  Class R6 1,000.00   1,046.10   0.92   4.72
KAR Small-Cap Growth Fund
                
  Class A 1,000.00   998.10   1.35   6.76
  Class C 1,000.00   994.50   2.06   10.30
  Class I 1,000.00   999.70   1.06   5.31
  Class R6 1,000.00   1,000.30   0.98   4.91
2

VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2023 TO September 30, 2023
    Beginning
Account Value
April 1, 2023 		  Ending
Account Value
September 30, 2023 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Small-Cap Value Fund
                
  Class A $1,000.00   $1,008.30   1.20%   $ 6.04
  Class C 1,000.00   1,004.80   1.95   9.80
  Class I 1,000.00   1,009.70   0.95   4.79
  Class R6 1,000.00   1,009.70   0.87   4.38
KAR Small-Mid Cap Core Fund
                
  Class A 1,000.00   1,021.70   1.23   6.23
  Class C 1,000.00   1,018.00   2.03   10.27
  Class I 1,000.00   1,023.30   0.99   5.02
  Class R6 1,000.00   1,023.80   0.91   4.62
KAR Small-Mid Cap Growth Fund
                
  Class A 1,000.00   1,027.10   1.30   6.61
  Class C 1,000.00   1,023.00   2.05   10.40
  Class I 1,000.00   1,029.20   1.05   5.34
  Class R6 1,000.00   1,029.10   0.99   5.04
KAR Small-Mid Cap Value Fund
                
  Class A 1,000.00   997.60   1.18   5.91
  Class C 1,000.00   994.10   1.92   9.60
  Class I 1,000.00   997.70   0.93   4.66
  Class R6 1,000.00   998.80   0.83   4.16
SGA Emerging Markets Growth Fund
                
  Class A 1,000.00   945.80   1.49   7.27
  Class C 1,000.00   943.00   2.24   10.91
  Class I 1,000.00   947.30   1.24   6.05
  Class R6 1,000.00   947.70   1.06   5.18
SGA Global Growth Fund
                
  Class A 1,000.00   1,047.20   1.32   6.77
  Class C 1,000.00   1,043.60   2.07   10.60
  Class I 1,000.00   1,048.80   1.07   5.50
  Class R6 1,000.00   1,049.60   0.89   4.57
SGA New Leaders Growth Fund
                
  Class A 1,000.00   1,007.10   1.34   6.74
  Class C 1,000.00   1,004.30   2.09   10.50
  Class I 1,000.00   1,008.40   1.09   5.49
  Class R6 1,000.00   1,008.40   0.91   4.58
Tactical Allocation Fund
                
  Class A 1,000.00   1,023.50   0.99   5.02
  Class C 1,000.00   1,019.80   1.75   8.86
  Class I 1,000.00   1,024.70   0.76   3.86
  Class R6 1,000.00   1,026.20   0.60   3.05
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
3

VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2023 TO September 30, 2023
    Beginning
Account Value
April 1, 2023 		  Ending
Account Value
September 30, 2023 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
KAR Capital Growth Fund
                
  Class A $ 1,000.00   $ 1,018.95   1.22 %   $ 6.17
  Class C 1,000.00   1,014.74   2.06   10.40
  Class I 1,000.00   1,020.21   0.97   4.91
  Class R6 1,000.00   1,021.36   0.74   3.75
KAR Equity Income Fund
                
  Class A 1,000.00   1,019.15   1.18   5.97
  Class C 1,000.00   1,015.39   1.93   9.75
  Class I 1,000.00   1,020.41   0.93   4.71
  Class R6 1,000.00   1,020.61   0.89   4.51
KAR Global Quality Dividend Fund
                
  Class A 1,000.00   1,018.30   1.35   6.83
  Class C 1,000.00   1,014.49   2.11   10.66
  Class I 1,000.00   1,019.50   1.11   5.62
  Class R6 1,000.00   1,021.11   0.79   4.00
KAR Mid-Cap Core Fund
                
  Class A 1,000.00   1,019.00   1.21   6.12
  Class C 1,000.00   1,015.24   1.96   9.90
  Class I 1,000.00   1,020.26   0.96   4.86
  Class R6 1,000.00   1,020.66   0.88   4.46
KAR Mid-Cap Growth Fund
                
  Class A 1,000.00   1,018.90   1.23   6.23
  Class C 1,000.00   1,014.99   2.01   10.15
  Class I 1,000.00   1,020.05   1.00   5.06
  Class R6 1,000.00   1,020.96   0.82   4.15
KAR Small-Cap Core Fund
                
  Class A 1,000.00   1,018.65   1.28   6.48
  Class C 1,000.00   1,015.14   1.98   10.00
  Class I 1,000.00   1,020.05   1.00   5.06
  Class R6 1,000.00   1,020.46   0.92   4.66
KAR Small-Cap Growth Fund
                
  Class A 1,000.00   1,018.30   1.35   6.83
  Class C 1,000.00   1,014.74   2.06   10.40
  Class I 1,000.00   1,019.75   1.06   5.37
  Class R6 1,000.00   1,020.16   0.98   4.96
KAR Small-Cap Value Fund
                
  Class A 1,000.00   1,019.05   1.20   6.07
  Class C 1,000.00   1,015.29   1.95   9.85
  Class I 1,000.00   1,020.31   0.95   4.81
  Class R6 1,000.00   1,020.71   0.87   4.41
KAR Small-Mid Cap Core Fund
                
  Class A 1,000.00   1,018.90   1.23   6.23
  Class C 1,000.00   1,014.89   2.03   10.25
  Class I 1,000.00   1,020.10   0.99   5.01
  Class R6 1,000.00   1,020.51   0.91   4.61
KAR Small-Mid Cap Growth Fund
                
  Class A 1,000.00   1,018.55   1.30   6.58
  Class C 1,000.00   1,014.79   2.05   10.35
  Class I 1,000.00   1,019.80   1.05   5.32
  Class R6 1,000.00   1,020.10   0.99   5.01
KAR Small-Mid Cap Value Fund
                
  Class A 1,000.00   1,019.15   1.18   5.97
  Class C 1,000.00   1,015.44   1.92   9.70
  Class I 1,000.00   1,020.41   0.93   4.71
  Class R6 1,000.00   1,020.91   0.83   4.20
4

VIRTUS EQUITY TRUST
DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)
FOR THE SIX-MONTH PERIOD OF April 1, 2023 TO September 30, 2023
    Beginning
Account Value
April 1, 2023 		  Ending
Account Value
September 30, 2023 		  Annualized
Expense
Ratio 		  Expenses
Paid
During
Period*
SGA Emerging Markets Growth Fund
                
  Class A $1,000.00   $1,017.60   1.49%   $ 7.54
  Class C 1,000.00   1,013.84   2.24   11.31
  Class I 1,000.00   1,018.85   1.24   6.28
  Class R6 1,000.00   1,019.75   1.06   5.37
SGA Global Growth Fund
                
  Class A 1,000.00   1,018.45   1.32   6.68
  Class C 1,000.00   1,014.69   2.07   10.45
  Class I 1,000.00   1,019.70   1.07   5.42
  Class R6 1,000.00   1,020.61   0.89   4.51
SGA New Leaders Growth Fund
                
  Class A 1,000.00   1,018.35   1.34   6.78
  Class C 1,000.00   1,014.59   2.09   10.56
  Class I 1,000.00   1,019.60   1.09   5.52
  Class R6 1,000.00   1,020.51   0.91   4.61
Tactical Allocation Fund
                
  Class A 1,000.00   1,020.10   0.99   5.01
  Class C 1,000.00   1,016.29   1.75   8.85
  Class I 1,000.00   1,021.26   0.76   3.85
  Class R6 1,000.00   1,022.06   0.60   3.04
    
* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.
For Funds which may invest in other funds, the annualized expense ratios noted above do not reflect fees and expenses associated with any underlying funds. If such fees and expenses had been included, the expenses would have been higher.
You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.
5

VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited)
September 30, 2023
American Depositary Receipt (“ADR”)
Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a U.S. bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.
Asset-Backed Securities (“ABS”)
Asset-backed securities represent interests in pools of underlying assets such as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property, and receivables from credit card arrangements.
Bank of England (“BOE”)
The Central Bank of the United Kingdom, responsible for controlling the money supply, interest rates, credit, and regulation of U.K. Banks with the goal of keeping the U.K. financial system stable.
Bloomberg U.S. Aggregate Bond Index
The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment-grade fixed-rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Bloomberg U.S. Corporate High Yield Bond Index
The Bloomberg U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Build America Municipal Insured (“BAM”)
Build America Municipal Insured Bonds are municipal bonds insured against default by Build America Mutual, a Financial Guaranty insurance company.
Exchange-Traded Fund (“ETF”)
An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.
European Central Bank (“ECB”)
The European Central Bank (ECB) is the central bank responsible for monetary policy of the European Union (EU) member countries that have adopted the euro currency. This currency union is known as the eurozone and currently includes 19 countries. The ECB’s primary objective is price stability in the euro area.
Federal Reserve (the “Fed”)
The Central Bank of the U.S., the Fed is responsible for controlling money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.
Global Quality Dividend Linked Benchmark
Performance of the Global Quality Dividend Linked Benchmark is that of the MSCI World High Dividend Yield Index. Performance of the Global Quality Dividend Linked Benchmark prior to February 1, 2017 is that of the Russell 1000® Value Index and from February 1, 2017 to December 31, 2018, it is that of the Russell Developed Large Cap Index (net). The indexes are unmanaged and not available for direct investment.
Headline Inflation
Headline inflation is the total inflation in an economy, as measured by inflation in the prices of a basket of goods that includes commodities like food and energy.
London Interbank Offered Rate (“LIBOR”)
A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.
MSCI All Country World Growth Index (net)
The MSCI All Country World Growth Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of large and mid-cap securities exhibiting overall growth style characteristics across developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI All Country World Index (ACWI) (net)
The MSCI All Country World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI All Country World Index ex USA Small Mid Cap Index (net)
The MSCI All Country World Index ex USA Small Mid Cap Index (net) is a free float-adjusted market capitalization-weighted index that measures mid- and small-cap performance across 22 of 23 Developed Market countries (excluding the U.S.) and 24 Emerging Markets
6

VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2023
countries. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
MSCI All Country World Mid-Cap Index (net)
The MSCI All Country World Mid Cap Index (net) is a free float-adjusted market capitalization-weighted index that measures mid cap equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested.
MSCI EAFE® Index (net)
The MSCI EAFE® (Europe, Australasia, Far East) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI Emerging Markets Index (net)
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
MSCI USA High Dividend Yield Index (net)
The MSCI USA High Dividend Yield Index is based on the MSCI USA Index, its parent index, and includes large and mid-cap stocks. The index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher dividend income and quality
characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The
index is calculated on a total return basis with net dividends reinvested; it is unmanaged; its returns do not reflect any fees, expenses or sales charges; and it is not available for direct investment.
MSCI World High Dividend Yield Index (net)
The MSCI World High Dividend Yield Index (net) is based on the MSCI World Index, its parent index, and includes large- and mid-cap stocks across 23 developed markets countries. The index is designed to reflect the performance of equities in the parent index (excluding
REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that
could force them to cut or reduce dividends. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Real Estate Investment Trust (“REIT”)
A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties.
Risk Asset
A risk asset is generally any asset that has a significant degree of price volatility, such as equities, commodities, high-yield bonds, real estate, and currencies.
Russell 1000® Growth Index
The Russell 1000® Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 1000® Value Index
The Russell 1000® Value Index is a market capitalization-weighted index of value-oriented stocks of the smallest 1,000 companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Growth Index
The Russell 2000® Growth Index is a market capitalization-weighted index of growth-oriented stocks of the smallest 2,000 companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2000® Index
The Russell 2000® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
7

VIRTUS EQUITY TRUST
KEY INVESTMENT TERMS (Unaudited) (Continued) September 30, 2023
Russell 2000® Value Index
The Russell 2000® Value Index is a market capitalization-weighted index of value-oriented stocks of the smallest 2,000 companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Russell 2500TM Index
The Russell 2500TM Index is a market capitalization-weighted index of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is
unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment
Russell 2500TM Growth Index
The Russell 2500TM Growth Index is a market capitalization-weighted index of growth-oriented stocks of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
Russell 2500TM Value Index
The Russell 2500TM Value Index is a market capitalization-weighted index of value-oriented stocks of the 2,500 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.
Russell Midcap® Growth Index
The Russell Midcap® Growth Index is a market capitalization-weighted index of medium-capitalization, growth-oriented stocks of U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any
fees, expenses, or sales charges, and it is not available for direct investment.
Russell Midcap® Index
The Russell Midcap® Index is a market capitalization-weighted index of medium-capitalization stocks of U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales
charges, and it is not available for direct investment.
S&P 500® Index
The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.
Secured Overnight Financing Rate (“SOFR”)
SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
Sponsored ADR
An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. Sponsored ADRs generally carry the same rights normally given to stockholders, such as voting rights. ADRs must be sponsored to be able to trade on a major U.S. exchange such as the New York Stock Exchange.
Tactical Allocation Fund Linked Benchmark
The Tactical Allocation Fund Linked Benchmark consists of 45% Russell 1000® Growth Index (a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies, calculated on a total return basis with dividends reinvested), 15% MSCI All Country World Index ex USA Small Mid Cap Index (a free float-adjusted market capitalization-weighted index that measures mid- and small-cap foreign market equity performance, calculated on a total return basis with net dividends reinvested), and 40% Bloomberg U.S. Aggregate Bond Index (an index that measures the U.S. investment grade fixed rate bond market, calculated on a total return basis). The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment. Performance of the Tactical Allocation Fund Linked Benchmark between 9/7/2016 and 6/3/2019 represents an allocation consisting of 45% Russell 1000® Growth Index, 15% MSCI EAFE® Index, and 40% Bloomberg U.S. Aggregate Bond Index. Prior to September 7, 2016, the allocation consisted of 50% S&P 500® Index and 50% Bloomberg U.S. Aggregate Bond Index.
Yield Curve
A yield curve is a line on a graph plotting the interest rates, at a set point in time, of bonds having equal credit quality but different maturity dates.
8

  Ticker Symbols:
  Class A: PSTAX
  Class C: SSTFX
  Class I: PLXGX
  Class R6: VCGRX
KAR Capital Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital growth. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 23.25%, Class C shares at NAV returned 22.24%, Class I shares at NAV returned 23.60%, and Class R6 shares at NAV returned 23.88%. For the same period, the Russell 1000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 27.72%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the
realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed the Russell 1000® Growth Index for the fiscal year ended September 30, 2023. Poor stock selection and an overweight in financials, as well as poor stock selection and an underweight in communication services detracted from performance. Positive stock selection in information technology and consumer discretionary contributed to performance.
The biggest contributors to performance during the 12-month period were NVIDIA, Visa, Fair Isaac, MongoDB, and Uber Technologies.
The biggest detractors from performance during the period were Paycom Software, BILL, Estee Lauder, Amazon.com, and ZoomInfo Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Technology Concentration: Because the Fund is presently heavily weighted in the technology sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Information Technology 31%
Consumer Discretionary 20
Financials 12
Industrials 10
Health Care 10
Consumer Staples 5
Energy 4
Other 8
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
9

KAR Capital Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   23.25 % 7.55 % 11.12 % — % —
Class A shares at POP3,4   16.47 6.34 10.49 — —
Class C shares at NAV2 and with CDSC4   22.24 6.69  10.25  — —
Class I shares at NAV2   23.60 7.66  11.32  — —
Class R6 shares at NAV2   23.88 8.00  —  7.61 1/30/18
Russell 1000® Growth Index   27.72 12.42 14.48 12.69 5 —
Fund Expense Ratios6: Class A shares: Gross 1.19%; Net: 1.19%; Class C shares: Gross 2.01%; Net: 2.01%; Class I shares: Gross 1.00%; Net: 1.00%; Class R6 shares: Gross 0.90%, Net 0.73%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
10

KAR Capital Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
11

  Ticker Symbols:
  Class A: PDIAX
  Class C: PGICX
  Class I: PXIIX
  Class R6: VECRX
KAR Equity Income Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has investment objectives of capital appreciation and current income. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 5.19%, Class C shares at NAV returned 4.40%, Class I shares at NAV returned 5.47%, and Class R6 shares at NAV returned 5.49%. For the same period, the MSCI USA High Dividend Yield Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 11.57%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed the MSCI USA High Dividend Yield Index (net) for the fiscal year ended September 30, 2023. Poor stock selection and an overweight in financials, as well as poor stock selection and an underweight in information technology detracted from performance. Positive stock selection in industrials, as well as positive stock selection and an underweight in health care contributed to performance.
The biggest contributors to performance during the 12-month period were Omnicom Group, MSC Industrial Direct, BAE Systems, Watsco, and IBM.
The biggest detractors from performance during the period were Bank of Hawaii, Advance Auto Parts, Pfizer, Crown Castle, and PNC Financial Services Group.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Financials 17%
Industrials 15
Health Care 14
Consumer Staples 12
Information Technology 9
Utilities 9
Materials 8
Other (includes securities lending collateral) 16
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
12

KAR Equity Income Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   5.19 % 5.62 % 9.05 % — % —
Class A shares at POP3,4   -0.60 4.43 8.43 — —
Class C shares at NAV2 and with CDSC4   4.40  4.83  8.23  —  —
Class I shares at NAV2   5.47  5.89  9.32  —  —
Class R6 shares at NAV2   5.49  5.92  —  5.50  1/30/18
MSCI USA High Dividend Yield Index (net)   11.57 4.74 8.43 4.44 5 —
Fund Expense Ratios6: Class A shares: Gross 1.31%, Net 1.20%; Class C shares: Gross 2.10%, Net 1.95%; Class I shares: Gross 1.07%, Net 0.95%, Class R6 shares: Gross 1.00%; Net 0.91%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
13

KAR Equity Income Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
14

  Ticker Symbols:
  Class A: PPTAX
  Class C: PPTCX
  Class I: PIPTX
  Class R6: VGQRX
KAR Global Quality Dividend Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of total return, consisting of both capital appreciation and current income. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 8.79%, Class C shares at NAV returned 8.06%, Class I shares at NAV returned 9.02%, and Class R6 shares at NAV returned 9.41%. For the same period, the MSCI World High Dividend Yield Index (net), which serves as the Fund’s broad-based index, returned 16.69% and the Global Quality Dividend Linked Benchmark, the Fund’s style-specific Index, returned 16.69%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed the MSCI World High Dividend Yield Index (net) for the fiscal year ended September 30, 2023. Poor stock selection and an overweight in financials, as well as poor stock selection and an underweight in information technology detracted from performance. Positive stock selection and underweights in health care and consumer staples contributed to performance.
The biggest contributors to performance during the 12-month period were TotalEnergies, Omnicom Group, MSC Industrial Direct, IBM, and BAE Systems.
The biggest detractors from performance during the period were Crown Castle, Bank of Hawaii, NN Group, Pfizer, and Verizon Communications
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Foreign Investing: Investing in foreign securities subjects the Fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Financials 20%
Utilities 14
Communication Services 13
Industrials 12
Health Care 9
Consumer Staples 8
Information Technology 8
Other (includes securities lending collateral) 16
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
15

KAR Global Quality Dividend Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   8.79 % 2.29 % 5.08 % — % —
Class A shares at POP3,4   2.81 1.14 4.49 — —
Class C shares at NAV2 and with CDSC4   8.06  1.52  4.30  —  —
Class I shares at NAV2   9.02  2.53  5.33  —  —
Class R6 shares at NAV2   9.41  —  —  2.02  8/1/19
MSCI World High Dividend Yield Index (net)   16.69 4.81 5.72 5.15 5 —
Global Quality Dividend Linked Benchmark   16.69 3.67 7.91 5.15 5 —
Fund Expense Ratios6: Class A shares: Gross 1.48%, Net: 1.35%; Class C shares: Gross 2.29%, Net: 2.10%; Class I shares: Gross 1.25% Net: 1.10%; Class R6 shares: Gross 1.16%, Net: 0.78%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
16

KAR Global Quality Dividend Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
17

  Ticker Symbols:
  Class A: VMACX
  Class C: VMCCX
  Class I: VIMCX
  Class R6: VRMCX
KAR Mid-Cap Core Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 20.63%, Class C shares at NAV returned 19.73%, Class I shares at NAV returned 20.94%, and Class R6 shares at NAV returned 21.02%. For the same period, the Russell Midcap® Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 13.45%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell Midcap® Index for the fiscal year ended September 30, 2023. Positive stock selection in health care and an overweight in industrials contributed to performance. An underweight in energy and poor stock selection in information technology detracted from performance.
The biggest contributors to performance during the 12-month period were West Pharmaceutical Services, Bentley Systems, AMETEK, Old Dominion Freight Line, and Houlihan Lokey.
The biggest detractors from performance during the period were First Financial Bankshares, Aspen Technology, POOLCORP, Zebra Technologies, and Teledyne Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium. or large-sized companies may enhance that risk.
Industrial Concentration: Because the Fund is presently heavily weighted in the industrial sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 35%
Information Technology 20
Financials 15
Health Care 12
Consumer Discretionary 11
Consumer Staples 4
Real Estate 2
Short-Term Investment 1
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
18

KAR Mid-Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   20.63 % 9.22 % 11.84 % — % —
Class A shares at POP3,4   13.99 7.99 11.21 — —
Class C shares at NAV2 and with CDSC4   19.73  8.40  11.01  —  —
Class I shares at NAV2   20.94  9.49  12.12  —  —
Class R6 shares at NAV2   21.02  9.58  —  9.27  1/30/18
Russell Midcap® Index   13.45 6.38 8.98 6.26 5 —
Fund Expense Ratios6: Class A shares: Gross 1.30%, Net 1.20%; Class C shares: Gross 2.02%, Net 1.95%; Class I shares: Gross 1.04%, Net 0.95%; Class R6 shares: Gross 0.95%, Net: 0.87%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
19

KAR Mid-Cap Core Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
20

  Ticker Symbols:
  Class A: PHSKX
  Class C: PSKCX
  Class I: PICMX
  Class R6: VRMGX
KAR Mid-Cap Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 15.45%†, Class C shares at NAV returned 14.57%†, Class I shares at NAV returned 15.71%†, and Class R6 shares at NAV returned 15.94%†. For the same period, the Russell Midcap® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 17.47%.
   † See footnote 3 on page 23
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed
toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed the Russell Midcap® Growth Index for the fiscal year ended September 30, 2023. Poor stock selection in information technology, as well as poor stock selection and an underweight in financials detracted from performance. Positive stock selection in consumer staples, as well as positive stock selection and an overweight in consumer discretionary contributed to performance.
The biggest contributors to performance during the 12-month period were Celsius, Fair Isaac, SiteOne Landscape Supply, Goosehead Insurance, and MercadoLibre.
The biggest detractors from performance during the period were Signature Bank, Security Scorecard, Silk Road Medical, Paycom Software, and STAAR Surgical.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as
investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Technology Concentration: Because the Fund is presently heavily weighted in the technology sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Information Technology 24%
Consumer Discretionary 21
Consumer Staples 14
Industrials 11
Health Care 10
Financials 9
Energy 5
Other 6
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
21

KAR Mid-Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   15.45 % 3 8.10 % 11.34 % — % —
Class A shares at POP4,5   9.10 6.89 10.71 — —
Class C shares at NAV2 and with CDSC5   14.57  3 7.27  10.49  —  —
Class I shares at NAV2   15.71  3 8.34  11.60  —  —
Class R6 shares at NAV2   15.94  3 8.55  —  10.30  1/30/18
Russell Midcap® Growth Index   17.47 6.97 9.94 7.43 6 —
Fund Expense Ratios7: Class A shares: Gross 1.23%; Net: 1.23%; Class C shares: Gross 2.04%; Net: 2.04%; Class I shares: Gross 1.00%; Net: 1.00%; Class R6 shares: Gross 0.89%, Net 0.83%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
22

KAR Mid-Cap Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report.
4 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
5 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
6 The since inception index return is from the inception date of Class R6 shares.
7 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
23

  Ticker Symbols:
  Class A: PKSAX
  Class C: PKSCX
  Class I: PKSFX
  Class R6: VSCRX
KAR Small-Cap Core Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation, with dividend income a secondary consideration. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 24.88%, Class C shares at NAV returned 23.98%, Class I shares at NAV returned 25.20%, and Class R6 shares at NAV returned 25.30%. For the same period, the Russell 2000® Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 8.93%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell 2000® Index for the fiscal year ended September 30, 2023. Positive stock selection and an overweight in industrials, as well as positive stock selection in financials contributed to performance. Underweight positions in energy and materials detracted from performance.
The biggest contributors to performance during the 12-month period were EMCOR, Simpson Manufacturing, Primerica, Manhattan Associates, and CorVel.
The biggest detractors from performance during the period were First Hawaiian, Aspen Technology, Atrion, Jack Henry & Associates, and Kforce.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Industrial Concentration: Because the Fund is presently heavily weighted in the industrial sector, it
will be impacted by that sector’s performance more than a fund with broader sector diversification.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 47%
Financials 24
Information Technology 8
Consumer Discretionary 7
Health Care 5
Communication Services 4
Materials 4
Other 1
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
24

KAR Small-Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   24.88 % 11.87 % 13.74 % — % —
Class A shares at POP3,4   18.01 10.61 13.10 — —
Class C shares at NAV2 and with CDSC4   23.98  11.05  12.91  —  —
Class I shares at NAV2   25.20  12.17  14.05  —  —
Class R6 shares at NAV2   25.30  12.26  —  14.65  11/12/14
Russell 2000® Index   8.93 2.40 6.65 6.14 5 —
Fund Expense Ratios6: Class A shares: Gross 1.25%, Net: 1.25%; Class C shares: Gross 1.99%, Net: 1.99%; Class I shares: Gross 0.99% Net: 0.99%; Class R6 shares: Gross 0.92%, Net: 0.92%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
25

KAR Small-Cap Core Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
26

  Ticker Symbols:
  Class A: PSGAX
  Class C: PSGCX
  Class I: PXSGX
  Class R6: VRSGX
KAR Small-Cap Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 15.15%, Class C shares at NAV returned 14.31%, Class I shares at NAV returned 15.47%, and Class R6 shares at NAV returned 15.61%. For the same period, the Russell 2000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 9.59%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell 2000® Growth Index for the fiscal year ended September 30, 2023. Positive stock selection and an underweight in health care, as well as positive stock selection in communication services contributed to performance. Poor stock selection in information technology and an underweight in energy detracted from performance.
The biggest contributors to performance during the 12-month period were AAON, Duck Creek Technologies, Ryan Specialty, Auto Trader, and Fox Factory.
The biggest detractors from performance during the period were ServisFirst Bancshares, Revolve Group, BILL, Aspen Technology, and Olo.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Foreign Investing: Investing in foreign securities subjects the Fund to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Sector Focused Investing: Events negatively affecting a particular industry or market sector in which the Fund focuses its investments may cause the value of the Fund to decrease.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Financials 34%
Information Technology 21
Consumer Discretionary 17
Communication Services 12
Industrials 8
Health Care 7
Consumer Staples 1
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
27

KAR Small-Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   15.15 % 7.73 % 13.28 % — % —
Class A shares at POP3,4   8.82 6.52 12.64 — —
Class C shares at NAV2 and with CDSC4   14.31  6.95  12.45  —  —
Class I shares at NAV2   15.47  8.02  13.57  —  —
Class R6 shares at NAV2   15.61  8.13  —  9.79  1/30/18
Russell 2000® Growth Index   9.59 1.55 6.72 3.23 5 —
Fund Expense Ratios6: Class A shares: Gross 1.33%; Net: 1.33%; Class C shares: Gross 2.06%; Net: 2.06%; Class I shares: Gross 1.07%; Net: 1.07%; Class R6 shares: Gross 0.98%, Net 0.98%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
28

KAR Small-Cap Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
29

  Ticker Symbols:
  Class A: PQSAX
  Class C: PQSCX
  Class I: PXQSX
  Class R6: VQSRX
KAR Small-Cap Value Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 10.42%, Class C shares at NAV returned 9.59%, Class I shares at NAV returned 10.65%, and Class R6 shares at NAV returned 10.78%. For the same period, the Russell 2000® Value Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 7.84%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the
Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell 2000® Value Index for the fiscal year ended September 30, 2023. Positive stock selection and an underweight in health care, as well as positive stock selection in financials contributed to performance. An underweight in energy and poor stock selection in consumer discretionary detracted from performance.
The biggest contributors to performance during the 12-month period were Watsco, Houlihan Lokey, SiteOne Landscape Supply, Primerica, and RLI.
The biggest detractors from performance during the period were Leslie’s, Stock Yards Bancorp, Bank of Hawaii, First Financial Bankshares, and Lakeland Financial.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Industrial Concentration: Because the Fund is presently heavily weighted in the industrial sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more
susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Sector Focused Investing: Events negatively affecting a particular industry or market sector in which the Fund focuses its investments may cause the value of the Fund to decrease.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 37%
Financials 26
Consumer Discretionary 14
Consumer Staples 7
Materials 6
Information Technology 4
Health Care 3
Other 3
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
30

KAR Small-Cap Value Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   10.42 % 3.91 % 7.43 % — % —
Class A shares at POP3,4   4.35 2.74 6.82 — —
Class C shares at NAV2 and with CDSC4   9.59  3.12  6.63  —  —
Class I shares at NAV2   10.65  4.15  7.69  —  —
Class R6 shares at NAV2   10.78  4.24  —  8.47  11/3/16
Russell 2000® Value Index   7.84 2.59 6.19 6.93 5 —
Fund Expense Ratios6: Class A shares: Gross 1.19%; Net: 1.19%; Class C shares: Gross 1.96%; Net: 1.96%; Class I shares: Gross 0.97%; Net: 0.97%; Class R6 shares: Gross 0.88%, Net 0.88%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
31

KAR Small-Cap Value Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on September 30, 2013, for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the inception date of Class R6 shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
32

  Ticker Symbols:
  Class A: VKSAX
  Class C: VKSCX
  Class I: VKSIX
  Class R6: VKSRX
KAR Small-Mid Cap Core Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation, with dividend income a secondary consideration. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 21.88%, Class C shares at NAV returned 20.96%, Class I shares at NAV returned 22.15%, and Class R6 shares at NAV returned 22.39%. For the same period, the Russell 2500™ Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 11.28%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500®Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell 2500TM Index for the fiscal year ended September 30, 2023. Positive stock selection and an overweight in industrials, as well as positive stock selection and an underweight in health care contributed to performance. Underweight positions in energy and consumer staples detracted from performance.
The biggest contributors to performance during the 12-month period were Bentley Systems, Fair Isaac, Lennox International, SiteOne Landscape Supply, and Watsco.
The biggest detractors from performance during the period were Aspen Technology, Jack Henry & Associates, Zebra Technologies, Choice Hotels International, and Exponent.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Technology Concentration: Because the Fund is presently heavily weighted in the technology sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the
portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 29%
Information Technology 26
Consumer Discretionary 19
Financials 14
Health Care 10
Materials 2
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
33

KAR Small-Mid Cap Core Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years Since
inception 		Inception
date
Class A shares at NAV2   21.88 % 9.40 % 9.90 % 3/7/18
Class A shares at POP3,4   15.17 8.17 8.78 3/7/18
Class C shares at NAV2 and with CDSC4   20.96  8.57  9.08  3/7/18
Class I shares at NAV2   22.15  9.67  10.18  3/7/18
Class R6 shares at NAV2   22.39  9.77  10.27  3/7/18
Russell 2500™ Index   11.28 4.55 5.55 5 —
Fund Expense Ratios6: Class A shares: Gross 1.25%, Net 1.29%; Class C shares: Gross 2.02%, Net 2.03%; Class I shares: Gross 1.00%, Net 1.01%; Class R6 shares: Gross 0.91%; Net 0.97%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on March 7, 2018 (inception date of the Fund), for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
34

KAR Small-Mid Cap Core Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on March 7, 2018 (inception date of the Fund), for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
Growth of $2,500,000 for periods ended 9/30
This chart assumes an initial investment of $2,500,000 made on March 7, 2018 (inception date of the Fund), for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
35

  Ticker Symbols:
  Class A: VAKSX
  Class C: VCKSX
  Class I: VIKSX
  Class R6: VRKSX
KAR Small-Mid Cap Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 17.72%, Class C shares at NAV returned 16.78%, Class I shares at NAV returned 18.02%, and Class R6 shares at NAV returned 17.99%. For the same period, the Russell 2500™ Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 10.61%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed the Russell 2500TM Growth Index for the fiscal year ended September 30, 2023. Positive stock selection and an overweight in industrials, as well as positive stock selection in consumer discretionary contributed to performance. Poor stock selection and an overweight in financials, and an underweight in energy detracted from performance.
The biggest contributors to performance during the 12-month period were Fair Isaac, Copart, Bentley Systems, West Pharmaceutical Services, and Duck Creek Technologies.
The biggest detractors from performance during the period were Silk Road Medical, Certara, Jack Henry & Associates, Atrion, and Copperleaf Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 24%
Information Technology 24
Health Care 20
Financials 16
Consumer Discretionary 7
Communication Services 4
Consumer Staples 3
Short-Term Investment 2
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
36

KAR Small-Mid Cap Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   17.72 % -3.30 % 12/8/20
Class A shares at POP3,4   11.25 -5.23 12/8/20
Class C shares at NAV2 and with CDSC4   16.78  -4.03  12/8/20
Class I shares at NAV2   18.02  -3.04  12/8/20
Class R6 shares at NAV2   17.99  -3.00  12/8/20
Russell 2500™ Growth Index   10.61 -5.43 5 —
Fund Expense Ratios6: Class A shares: Gross 2.76%, Net 1.30%; Class C shares: Gross 3.43%, Net 2.05%; Class I shares: Gross 2.57%, Net 1.05%; Class R6 shares: Gross 2.43%, Net 0.99%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on December 8, 2020 (inception date of the Fund), for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
37

KAR Small-Mid Cap Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on December 8, 2020 (inception date of the Fund), for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
This chart assumes an initial investment of $2,500,000 made on December 8, 2020 (inception date of the Fund), for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales changes. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
38

  Ticker Symbols:
  Class A: VKSDX
  Class C: VKSEX
  Class I: VKSFX
  Class R6: VKSGX
KAR Small-Mid Cap Value Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick Investment Management, LLC
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 9.96%, Class C shares at NAV returned 9.21%, Class I shares at NAV returned 10.29%, and Class R6 shares at NAV returned 10.37%. For the same period, the Russell 2500™ Value Index, which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 11.34%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed
toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed the Russell 2500TM Value Index for the fiscal year ended September 30, 2023. Poor stock selection in consumer discretionary and an underweight in energy detracted from performance. Positive stock selection and an underweight in health care, as well as positive stock selection in consumer staples contributed to performance.
The biggest contributors to performance during the 12-month period were Lennox International, Thor Industries, TransUnion, Gentex, and Teradyne.
The biggest detractors from performance during the period were Leslie’s, Bank of Hawaii, Jack Henry & Associates, American Software, and Zebra Technologies.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee
of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional or global events such as war or military conflict, terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Industrials 36%
Financials 22
Consumer Discretionary 13
Information Technology 10
Consumer Staples 7
Materials 5
Health Care 2
Other (includes short-term investment) 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
39

KAR Small-Mid Cap Value Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   9.96 % -6.96 % 8/3/21
Class A shares at POP3,4   3.91 -9.37 8/3/21
Class C shares at NAV2 and with CDSC4   9.21  -7.67  8/3/21
Class I shares at NAV2   10.29  -6.75  8/3/21
Class R6 shares at NAV2   10.37  -6.67  8/3/21
Russell 2500™ Value Index   11.34 -3.05 5 —
Fund Expense Ratios6: Class A shares: Gross 4.09%, Net 1.17%; Class C shares: Gross 4.85%, Net 1.92%; Class I shares: Gross 3.88%, Net 0.92%; Class R6 shares: Gross 3.81%; Net 0.82%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on August 3, 2021 (inception date of the Fund), for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
40

KAR Small-Mid Cap Value Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on August 3, 2021 (inception date of the Fund), for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
Growth of $2,500,000 for periods ended 9/30
This chart assumes an initial investment of $2,500,000 made on August 3, 2021 (inception date of the Fund), for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
41

  Ticker Symbols:
  Class A: VAEGX
  Class C: VCEGX
  Class I: VIEGX
  Class R6: VESRX
SGA Emerging Markets Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is non-diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 10.53%, Class C shares at NAV returned 9.71%, Class I shares at NAV returned 10.78%, and Class R6 shares at NAV returned 10.95%. For the same period, the MSCI Emerging Markets Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 11.70%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
After demonstrating significant weakness during the prior fiscal year, emerging markets rebounded in the first half of the fiscal year ended September 30, 2023. After a five-quarter losing streak, the longest on record for the MSCI Emerging Markets Index (net) since its inception in 1988, the Index bounced back in the fourth quarter of 2022 due to a weakening U.S. dollar and a strong recovery in Chinese equities. The rally continued into early 2023, driven by strength in semiconductors and tech hardware, as well as expectations that China’s reopening after Covid lockdowns would provide a tailwind for the global economy. While monetary policies remained restrictive across much of the world, corporate earnings results continued to come in ahead of expectations.
Toward the end of the fiscal year, however, the market’s rosy outlook began to fade as disappointing economic results led to weakness in China. Rising bond yields and a stronger U.S. dollar, given the
Federal Reserve’s (the Fed’s) willingness to hold interest rates higher for longer, weighed on emerging market currencies and companies with faster growth. Value stocks significantly outperformed growth stocks over the 12-month period. The information technology and energy sectors led returns for the MSCI Emerging Markets Index (net) by a wide margin. The communication services sector also outperformed, while all other sectors trailed the Index. The utilities, real estate, and health care sectors performed worst.
What factors affected the Fund’s performance during its fiscal year?
The Fund slightly underperformed its benchmark, the MSCI Emerging Markets Index (net), for the 12 months ended September 30, 2023. Stock selection contributed positively to relative results, while sector allocation effects, which are a byproduct of our bottom-up stock selection process, detracted from returns. Stock selection contributed most in the consumer staples and consumer discretionary sectors, but was offset somewhat by negative selection in health care, information technology, and communication services. The Fund’s significant overweight exposures in consumer staples and consumer discretionary detracted from relative results, as did an underweight to information technology and a lack of exposure to energy. From a country perspective, the Fund benefited most from selection in Brazil, Thailand, and South Africa, while selection in China, South Korea, and India detracted. The Fund’s overweight exposures to Mexico and Argentina contributed to results, while a lack of exposure to Taiwan dragged on returns.
The largest contributors to Fund performance for the 12-month period were FEMSA, MercadoLibre, XP, Fast Retailing, and Adidas. The five largest detractors from Fund performance for the period were JD.com, Bud APAC, Shandong Weigao, Mengniu Dairy, and Kakao.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated portfolio.
Consumer Concentration: Because the Fund is presently heavily weighted in the consumer sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
ESG: The Fund’s consideration of ESG factors could cause the Fund to perform differently from other funds. While the subadviser believes that the integration of ESG factors into the Fund’s investment
process has the potential to contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.
Currency Rate: Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the Fund’s shares.
Depositary Receipts: Investments in foreign companies through depositary receipts may expose
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
42

SGA Emerging Markets Growth Fund (Continued)
the Fund to the same risks as direct investments in securities of foreign issuers.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Consumer Staples 36%
Financials 24
Consumer Discretionary 22
Communication Services 8
Information Technology 6
Materials 2
Health Care 2
Total 100%
 
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
43

SGA Emerging Markets Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   10.53 % 0.48 % 6/13/19
Class A shares at POP3,4   4.45 -0.83 6/13/19
Class C shares at NAV2 and with CDSC4   9.71  -0.27  6/13/19
Class I shares at NAV2   10.78  0.75  6/13/19
Class R6 shares at NAV2   10.95  0.91  6/13/19
MSCI Emerging Markets Index (net)   11.70 0.92 5 —
Fund Expense Ratios6: Class A shares: Gross 3.01%, Net 1.48%; Class C shares: Gross 3.75%, Net 2.23%; Class I shares: Gross 2.74%, Net 1.23%; Class R6 shares: Gross 2.72%, Net 1.05%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on June 13, 2019 (inception date of the Fund), for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
44

SGA Emerging Markets Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on June 13, 2019 (inception date of the Fund), for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
Growth of $2,500,000 for periods ended 9/30
This chart assumes an initial investment of $2,500,000 made on June 13, 2019 (inception date of the Fund), for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
45

  Ticker Symbols:
  Class A: SGAAX
  Class C: SGACX
  Class I: SGAPX
  Class R6: SGARX
SGA Global Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 23.95%, Class C shares at NAV returned 23.01%, Class I shares at NAV returned 24.27%, and Class R6 shares at NAV returned 24.49%. For the same period, the MSCI All Country World Index (net), returned 20.80%, and the MSCI All Country World Growth Index (net), returned 24.41%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
After demonstrating significant weakness in the prior fiscal year, global markets rebounded strongly over the 12 months ended September 30, 2023. Following aggressive initial increases in interest rates, investors reacted positively as central banks around the world began to slow their pace of tightening. While monetary policies remained restrictive across much of the world, corporate earnings results continued to come in ahead of expectations. Results in the information technology sector and related areas were boosted further by enthusiasm for the next wave of technological revolution expected to be brought about by artificial intelligence. The change in sentiment and the increased optimism around a “soft landing” for the economy helped growth stocks to outperform value significantly over the 12-month period.
Toward the end of the fiscal year, the market’s rosy outlook began to fade as fears of rates staying higher for longer dragged on the U.S. and other developed markets, while China’s disappointing economic
rebound caused weakness in other emerging markets. The information technology sector led returns for the MSCI All Country World Index (net) by a wide margin. The communication services, energy, and industrials sectors also outperformed, while all other sectors trailed the Index. The real estate, utilities, and consumer staples sectors performed the worst.
What factors affected the Fund’s performance during its fiscal year?
The Fund outperformed its benchmark, the MSCI All Country World Index (net), for the 12 months ended September 30, 2023. Fund holdings that could be characterized as growth companies performed well. However, the performance of companies with attractive business quality metrics, which are key elements of our investment approach, was mixed. Stock selection drove the Fund’s outperformance, particularly in the health care sector. Selection in real estate and consumer discretionary also contributed, while selection in financials and industrials detracted. Sector allocations, which are a byproduct of our bottom-up stock selection process, detracted from relative returns, driven primarily by an overweight to health care and a lack of exposure to energy.
The five largest contributors to Fund performance during the 12-month period were Novo Nordisk, Intuitive, Microsoft, Adobe, and Visa. The five largest detractors from Fund performance were XP, Mengniu Dairy, Danaher, CPKC, and Recruit.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with
a greater number of securities.
Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.
Technology Concentration: Because the Fund is presently heavily weighted in the technology sector, it will be impacted by that sector’s performance more than a fund with broader sector diversification.
ESG: The Fund’s consideration of ESG factors could cause the Fund to perform differently from other fund. While the subadviser believes that the integration of ESG factors into the Fund’s investment process
has the potential to contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.
Currency Rate: Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the Fund’s shares.
Depositary Receipts: Investments in foreign companies through depositary receipts may expose the Fund to the same risks as direct investments in securities of foreign issuers.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
46

SGA Global Growth Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Information Technology 25%
Financials 23
Health Care 21
Consumer Discretionary 10
Consumer Staples 7
Communication Services 6
Industrials 3
Other 5
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
47

SGA Global Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   23.95 % 6.78 % — % 9.24 % 10/4/13
Class A shares at POP3,4   17.13 5.58 — 8.62 10/4/13
Class C shares at NAV2 and with CDSC4   23.01  6.00  —  8.43  10/4/13
Class I shares at NAV2   24.27  7.02  —  9.37  10/4/13
Class R6 shares at NAV2   24.49  7.27  9.79  —  —
MSCI All Country World Index (net)   20.80 6.46 7.56 7.51 5 —
MSCI All Country World Growth Index (net)   24.41 8.37 9.53 9.50 5 —
Fund Expense Ratios6: Class A shares: Gross 1.44%, Net 1.33%; Class C shares: Gross 2.13%, Net 2.08%; Class I shares: Gross 1.16%, Net 1.08%; Class R6 shares: Gross 1.03%, Net 0.90%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
This chart assumes an initial investment of $2,500,000 made on September 30, 2013, for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index returned 8.16% for the inception date of Class P shares and 7.90% for the inception date of Institutional Class shares.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The indexes are unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
48

  Ticker Symbols:
  Class A: VNLAX
  Class C: VNLCX
  Class I: VNLIX
  Class R6: VNLRX
SGA New Leaders Growth Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Sustainable Growth Advisers, LP
■ The Fund is non-diversified and has an investment objective of long-term capital appreciation. There is no guarantee that the Fund will meet its objective.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 12.80%, Class C shares at NAV returned 12.02%, Class I shares at NAV returned 13.05%, and Class R6 shares at NAV returned 13.32%. For the same period, the MSCI All Country World Mid Cap Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate for comparison, returned 15.67%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
After demonstrating significant weakness in the prior fiscal year, global markets rebounded strongly over the 12 months ended September 30, 2023. Following aggressive initial increases in interest rates, investors reacted positively as central banks around the world began to slow their pace of tightening. While monetary policies remained restrictive across much of the world, corporate earnings results continued to come in ahead of expectations. Results in the information technology sector and related areas were boosted further by enthusiasm for the next wave of technological revolution expected to be brought about by artificial intelligence. The change in sentiment and the increased optimism around a “soft landing” for the economy helped growth stocks to outperform value over the 12-month period.
Toward the end of the fiscal year, the market’s rosy outlook began to fade as fears of rates staying higher for longer dragged on the U.S. and other developed markets, while China’s disappointing economic
rebound caused weakness in other emerging markets. The energy sector led returns for the MSCI All Country World Mid Cap Index (net) by a wide margin. The information technology, industrials, and consumer discretionary sectors also outperformed, while all other sectors trailed the Index. The real estate, utilities, and communication services sectors performed the worst.
What factors affected the Fund’s performance during its fiscal year?
The Fund underperformed its benchmark, the MSCI All Country World Mid Cap Index (net), for the 12 months ended September 30, 2023. Companies with attractive business quality metrics were generally not rewarded, and companies with higher gross margins and greater sales stability underperformed. Stock selection contributed to the Fund’s performance, particularly in the consumer staples, real estate, and consumer discretionary sectors. This was largely offset, however, by stock selection in financials and information technology. Sector allocations, which are a byproduct of our bottom-up stock selection process, detracted from relative returns, driven primarily by an underweight to industrials, an overweight to consumer staples, and a lack of exposure to energy.
The five largest contributors to Fund performance during the 12-month period were FEMSA, FleetCor, MercadoLibre, Workday, and Spotify. The five largest detractors from Fund performance were First Republic Bank, Shandong Weigao, EPAM Systems, Adyen, and Kakao.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased
volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Market Volatility: The value of the securities in the Fund may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the Fund, including hampering the ability of the Fund’s manager(s) to invest its assets as intended.
Limited Number of Investments: Because the Fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities.
Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.
ESG: The Fund’s consideration of ESG factors could cause the Fund to perform differently from other funds. While the subadviser believes that the integration of ESG factors into the Fund’s investment process has the potential to
contribute to performance, ESG factors may not be considered for every investment decision and there is no guarantee that the integration of ESG factors will result in better performance.
Currency Rate: Fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect the value of the Fund’s shares.
Depositary Receipts: Investments in foreign companies through depositary receipts may expose the Fund to the same risks as direct investments in securities of foreign issuers.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
49

SGA New Leaders Growth Fund (Continued)
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Health Care 21%
Information Technology 17
Consumer Staples 16
Financials 15
Consumer Discretionary 10
Communication Services 9
Materials 6
Other 6
Total 100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
50

SGA New Leaders Growth Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year Since
inception 		Inception
date
Class A shares at NAV2   12.80 % -11.09 % 11/17/20
Class A shares at POP3,4   6.59 -12.83 11/17/20
Class C shares at NAV2 and with CDSC4   12.02  -11.75  11/17/20
Class I shares at NAV2   13.05  -10.87  11/17/20
Class R6 shares at NAV2   13.32  -10.70  11/17/20
MSCI All Country World Mid Cap Index (net)   15.67 1.59 5 —
Fund Expense Ratios6: Class A shares: Gross 2.43%, Net 1.34%; Class C shares: Gross 3.16%, Net 2.09%; Class I shares: Gross 2.18%, Net 1.09%; Class R6 shares: Gross 2.23%, Net 0.91%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on November 17, 2020 (inception date of the Fund), for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
51

SGA New Leaders Growth Fund (Continued)
Growth of $100,000 for periods ended 9/30
This chart assumes an initial investment of $100,000 made on November 17, 2020 (inception date of the Fund), for Class I shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
Growth of $2,500,000 for periods ended 9/30
This chart assumes an initial investment of $2,500,000 made on November 17, 2020 (inception date of the Fund), for Class R6 shares. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index return is from the Fund’s inception date.
6 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
The index is unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
52

  Ticker Symbols:
  Class A: NAINX
  Class C: POICX
  Class I: VTAIX
  Class R6: VTARX
Tactical Allocation Fund
Fund Summary (Unaudited)
Portfolio Manager Commentary by
Kayne Anderson Rudnick
Investment Management, LLC
(Domestic and International Equity
Portfolio) and Newfleet Asset
Management, LLC
(Fixed Income Portfolio)
■ The Fund is diversified and has investment objectives of capital appreciation and income. There is no guarantee that the Fund will meet its objectives.
■ For the fiscal year ended September 30, 2023, the Fund’s Class A shares at NAV returned 15.81%, Class C shares at NAV returned 14.92%, and Class I shares at NAV returned 16.11%, and Class R6 shares at NAV returned 16.26%. For the same period, the Bloomberg U.S. Aggregate Bond Index; a broad-based fixed income index, returned 0.64%, the MSCI ACWI ex USA SMID Cap Index (net); a broad-based International Index, returned 19.95%; and the Russell 1000® Growth Index; a broad-based US equity index, returned 27.72%. The Tactical Allocation Fund Linked Benchmark, the Fund’s style-specific benchmark, returned 15.41%.
All performance figures assume reinvestment of distributions and exclude the effect of sales charges. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please visit Virtus.com for performance data current to the most recent month-end.
How did the markets perform during the Fund’s fiscal year ended September 30, 2023?
Domestic & International Equities
Markets underperformed in 2022, driven largely by expectations of higher inflation and global central bank tightening in response to elevated inflation. Late in 2022, markets began to see some relief in terms of inflation expectations, which led to a rally in equities that started in early 2023. However, the rally slowed toward the end of the third quarter of 2023 on the realization that the Federal Reserve (the Fed) might have to hold interest rates higher for longer.
For the fiscal year ended September 30, 2023, the S&P 500® Index returned 21.62% and small-capitalization stocks, as represented by the Russell 2000® Index, returned 8.93%. Growth stocks outperformed value stocks over the fiscal year, with the Russell 1000® Growth Index returning 27.72% and the Russell 1000® Value Index returning 14.44%.
For the fiscal year ended September 30, 2023, non-U.S. developed markets, represented by the MSCI EAFE® Index (net), returned 25.65%, outperforming U.S. stocks, while emerging markets, represented by the MSCI Emerging Markets Index (net), returned 11.70%, underperforming U.S. stocks.
Fixed Income
As the third quarter of 2023 came to an end, economic transitions were proceeding across the globe. China was struggling with a slowing economy amid calls for more stimulus, despite having ended its strict zero-COVID policies earlier in the year. Europe, too, was wrestling with a slowing economy and inflation that remained above official targets. In the meantime, the U.S. economy proved remarkably resilient – unlike other major world economies, it defied expectations of a slowdown, leading to a growing consensus that the Federal Reserve (the Fed) might be able to pull off the often-elusive soft landing. The main risk to this scenario remained the unpredictable cumulative effect of 18 months of monetary tightening on the economy. Because monetary policy works on the economy with a lag, it presents a challenge to central bankers who are trying to return inflation to target without the associated economic pain of higher interest rates.
During the 12 months ended September 30, 2023, the Fed raised its main policy interest rate by 2.25% in its continuing fight to tame inflation. This resulted in significant progress on headline inflation readings as supply chains healed, demand shifted from goods to services, and energy prices rebalanced. Core readings of inflation, however, remained stubbornly above targets at the end of the period. That said, market expectations held that that most major global central banks were approaching the end of their interest rate increases. Evidence of this could be found in the Fed’s most recent summary of economic projections, which indicated one more rate increase. The Bank of England (BOE) paused its rate hikes
during the period, while the European Central Bank (ECB) signaled a pause. However, market expectations of a quick reversal of tighter policy moderated, and the higher-for-longer narrative was taking hold by the end of the fiscal year. The Fed tamped down expectations of rapid rate cuts in 2024 and 2025, and the ECB and BOE remained committed to the inflation fight, which could lead to their rates staying elevated for longer as well. As the fiscal year came to an end, it was clear that there was still work to be done on the inflation front.
Despite the volatility during the fiscal year, financial market performance was resilient, with most risk assets outperforming U.S. Treasuries. The U.S. Treasury yield curve shifted higher during the period and remained inverted as of September 30, 2023. The 2-year Treasury yield increased 0.77%, the 5-year Treasury yield increased by 0.52%, the 10-year Treasury yield increased by 0.74%, and the 30-year Treasury yield moved 0.92% higher.
What factors affected the Fund’s performance during its fiscal year?
Domestic Equities
The Fund’s domestic equity portfolio underperformed the Russell 1000® Growth Index for the fiscal year ended September 30, 2023. Poor stock selection and an overweight in financials, as well as poor stock selection and an underweight in communication services detracted from performance. Positive stock selection in information technology and consumer discretionary contributed to performance.
The biggest contributors to performance during the 12-month period were NVIDIA, Visa, Fair Isaac, MongoDB, and Uber Technologies.
The biggest detractors from performance during the period were Paycom Software, BILL, Estee Lauder, Amazon.com, and ZoomInfo Technologies.
International Equities
The Fund’s international equity portfolio outperformed the MSCI ACWI ex USA SMID Cap Index (net) for the fiscal year ended September 30, 2023. Positive stock selection in consumer discretionary and communication services contributed to performance. Poor stock selection in financials and information technology detracted from performance.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
53

Tactical Allocation Fund (Continued)
From a country perspective, positive stock selection and an overweight in the U.K., and positive stock selection and an underweight in Canada contributed to performance. Poor stock selection in South Korea, and poor stock selection and an overweight in Singapore detracted from performance.
The biggest contributors to performance from a stock selection perspective during the 12-month period were Baltic Classifieds, Mercari, Auto Trader, Allegro.eu Societe, and MTU Aero Engines.
The biggest detractors from performance during the period were AJ Bell, Benefit One, PT Dayamitra Telekomunikasi, CTS Eventim, and FDM Group.
Fixed Income
The Fund’s underweight to U.S. Treasuries contributed to performance for the 12 months ended September 30, 2023. Selection within investment grade corporate bonds, and the allocations to corporate high yield bonds and bank loans had a positive impact on performance for the period.
The Fund’s duration, or sensitivity to changes in interest rates, and yield curve positioning within U.S. Treasuries detracted from performance.
Longer duration municipal bonds detracted from performance, however, issue selection within the sector had a positive impact on performance during the 12-month period.
The preceding information is the opinion of portfolio management only through the end of the period stated on the cover. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.
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, medium, or large-sized companies may enhance that risk.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the Fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Allocation: The risk that the portfolio’s exposure to equities and fixed income securities, or to different asset classes, may vary from the intended allocation or may not be optimal for market conditions at a given time.
High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.
Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict,
terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the Fund’s prospectus.
Asset Allocation
The following table presents asset allocation within certain sectors as a percentage of total investments as of September 30, 2023.
Common Stocks   67%
Information Technology 18%  
Consumer Discretionary 11  
Industrials 10  
All Other Common Stocks 28  
Corporate Bonds and Notes   11
Financials 4  
Energy 1  
Industrials 1  
All Other Corporate Bonds and Notes 5  
Mortgage-Backed Securities   10
U.S. Government Securities   4
Asset-Backed Securities   4
Leveraged Loans   2
Municipal Bonds   1
Other (includes securities lending collateral)   1
Total   100%
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
54

Tactical Allocation Fund (Continued)
Average Annual Total Returns1 for periods ended 9/30/23
    1 Year 5 Years 10 Years Since
inception 		Inception
date
Class A shares at NAV2   15.81 % 4.36 % 5.52 % — % —
Class A shares at POP3,4   9.44 3.18 4.92 — —
Class C shares at NAV2 and with CDSC4   14.92  3.55  4.71  —  —
Class I shares at NAV2   16.11  —  —  6.64  1/29/19
Class R6 shares at NAV2   16.26  —  —  -3.09  10/20/20
Bloomberg U.S. Aggregate Bond Index   0.64 0.10 1.13 — 5 —
MSCI All Country World ex USA Small Mid-Cap Index (net)   19.95 1.95 3.82 — 6 —
Russell 1000® Growth Index   27.72 12.42 14.48 — 7 —
Tactical Allocation Fund Linked Benchmark   15.41 6.36 7.82 — 8 —
Fund Expense Ratios9: Class A shares: Gross 1.05%, Net 0.99%; Class C shares: Gross 1.86%, Net 1.75%; Class I shares: Gross 0.85%, Net 0.76%; Class R6 shares: Gross 0.69%, Net 0.60%.
    
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end.
Growth of $10,000 for periods ended 9/30
This chart assumes an initial investment of $10,000 made on September 30, 2013, for Class A shares and Class C shares including any applicable sales charges or fees. The performance of the other share class may be greater or less than that shown based on differences in inception dates, fees, and sales charges. Performance assumes reinvestment of dividends and capital gain distributions.
1 Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions.
2 “NAV” (Net Asset Value) total returns do not include the effect of any sales charge.
3 “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.50% sales charge.
4 “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter.
5 The since inception index returned -0.35% from the inception date of Class I shares and -5.22% from the inception date of Class R6 shares
6 The since inception index returned 3.97% from the inception date of Class I shares and 2.36% from the inception date of Class R6 shares.
7 The since inception index returned 16.31% from the inception date of Class I shares and 7.25% from the inception date of Class R6 shares
8 The since inception index returned 8.10% for the inception date of Class I shares and 1.76% for the inception date of Class R6 shares.
9 The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 27, 2023, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2024. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
55

Tactical Allocation Fund (Continued)
The indexes are unmanaged and not available for direct investment; therefore, its performance does not reflect the expenses associated with active management of an actual portfolio.
For information regarding the indexes and certain investment terms, see the Key Investment Terms starting on page 6.
56

KAR Capital Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—99.4%
Communication Services—3.3%    
Trade Desk, Inc. (The) Class A(1) 217,363   $ 16,987
Consumer Discretionary—19.6%    
Airbnb, Inc. Class A(1)  80,101    10,991
Amazon.com, Inc.(1) 211,155    26,842
AutoZone, Inc.(1)   3,340     8,483
Home Depot, Inc. (The)  30,039     9,077
Marriott International, Inc. Class A  75,962    14,931
MercadoLibre, Inc.(1)   7,100     9,002
NIKE, Inc. Class B 129,647    12,397
Ross Stores, Inc.  84,033     9,491
      101,214
       
 
Consumer Staples—5.4%    
Estee Lauder Cos., Inc. (The) Class A  38,787     5,607
McCormick & Co., Inc. Non-voting Shares  96,415     7,293
Monster Beverage Corp.(1) 205,145    10,862
PepsiCo, Inc.  24,574     4,164
       27,926
       
 
Energy—3.8%    
Devon Energy Corp.  62,291     2,971
Hess Corp.  38,736     5,927
Pioneer Natural Resources Co.  25,833     5,930
Schlumberger N.V.  81,920     4,776
       19,604
       
 
  Shares   Value
       
Financials—11.7%    
Bank of America Corp. 158,825   $  4,349
Block, Inc. Class A(1) 114,450     5,065
Progressive Corp. (The)  86,049    11,986
S&P Global, Inc.  20,877     7,629
Visa, Inc. Class A 136,302    31,351
       60,380
       
 
Health Care—9.9%    
Danaher Corp.  45,869    11,380
Eli Lilly & Co.  23,626    12,690
IDEXX Laboratories, Inc.(1)  11,513     5,034
Mettler-Toledo International, Inc.(1)   3,846     4,262
Zoetis, Inc. Class A 101,897    17,728
       51,094
       
 
Industrials—10.0%    
Equifax, Inc.  41,531     7,608
Fair Isaac Corp.(1)  16,931    14,705
Paycom Software, Inc.  65,566    16,999
Uber Technologies, Inc.(1) 274,710    12,634
       51,946
       
 
Information Technology—30.5%    
Accenture plc Class A  37,800    11,609
Amphenol Corp. Class A 236,901    19,897
BILL Holdings, Inc.(1)  98,576    10,702
Cadence Design Systems, Inc.(1)  23,355     5,472
Gartner, Inc.(1)  15,388     5,287
MongoDB, Inc. Class A(1)  37,075    12,823
NVIDIA Corp. 118,985    51,757
Roper Technologies, Inc.  26,302    12,738
Shopify, Inc. Class A(1)  83,123     4,536
  Shares   Value
       
Information Technology—continued    
Snowflake, Inc. Class A(1)  57,634   $   8,805
Workday, Inc. Class A(1)  67,502    14,503
      158,129
       
 
Materials—1.7%    
Ecolab, Inc.  53,270     9,024
Real Estate—3.5%    
CoStar Group, Inc.(1) 161,057    12,384
Prologis, Inc.  53,110     5,959
       18,343
       
 
Total Common Stocks
(Identified Cost $241,451) 		  514,647
       
 
       
 
Total Long-Term Investments—99.4%
(Identified Cost $241,451) 		  514,647
       
 
       
 
TOTAL INVESTMENTS—99.4%
(Identified Cost $241,451) 		  $514,647
Other assets and liabilities, net—0.6%     3,001
NET ASSETS—100.0%   $517,648
    
Abbreviation:
S&P Standard & Poor’s
    
Footnote Legend:
(1) Non-income producing.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $514,647   $514,647
Total Investments $514,647   $514,647
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
57

KAR Equity Income Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—98.3%
Communication Services—5.7%    
Omnicom Group, Inc.    35,383   $  2,635
Verizon Communications, Inc.   132,576     4,297
        6,932
       
 
Consumer Discretionary—0.6%    
McDonald’s Corp.     2,561       675
Consumer Staples—12.1%    
Coca-Cola Co. (The)    60,833     3,405
Flowers Foods, Inc.   123,131     2,731
Kimberly-Clark Corp.    29,114     3,518
PepsiCo, Inc.    21,611     3,662
Procter & Gamble Co. (The)     9,356     1,365
       14,681
       
 
Energy—3.0%    
Chevron Corp.    10,519     1,774
Hess Corp.    12,398     1,897
        3,671
       
 
Financials—17.3%    
Bank of Hawaii Corp.(1)    60,607     3,012
PNC Financial Services Group, Inc. (The)    34,725     4,263
Prudential Financial, Inc.    17,862     1,695
Safety Insurance Group, Inc.    38,066     2,596
T. Rowe Price Group, Inc.    35,639     3,737
Zurich Insurance Group AG ADR   126,433     5,788
       21,091
       
 
Health Care—14.5%    
AbbVie, Inc.    33,843     5,044
Johnson & Johnson     7,485     1,166
Merck & Co., Inc.    23,363     2,405
Patterson Cos., Inc.   106,353     3,152
Pfizer, Inc.   106,326     3,527
Takeda Pharmaceutical Co., Ltd. Sponsored ADR(1)   148,916     2,304
       17,598
       
 
  Shares   Value
       
Industrials—15.5%    
BAE Systems plc Sponsored ADR(1)    72,586   $   3,589
MSC Industrial Direct Co., Inc. Class A    62,251     6,110
Snap-on, Inc.     5,736     1,463
United Parcel Service, Inc. Class B    23,514     3,665
Watsco, Inc.    10,621     4,012
       18,839
       
 
Information Technology—9.8%    
Cisco Systems, Inc.    70,181     3,773
International Business Machines Corp.    45,869     6,436
Texas Instruments, Inc.    10,580     1,682
       11,891
       
 
Materials—7.9%    
Amcor plc   537,132     4,920
Eastman Chemical Co.    34,506     2,647
Sonoco Products Co.    37,676     2,048
        9,615
       
 
Real Estate—3.0%    
Crown Castle, Inc.    16,163     1,487
Getty Realty Corp.    77,381     2,146
        3,633
       
 
Utilities—8.9%    
Fortis, Inc.    71,740     2,726
Pinnacle West Capital Corp.    35,238     2,596
Southern Co. (The)    60,875     3,940
WEC Energy Group, Inc.    19,148     1,542
       10,804
       
 
Total Common Stocks
(Identified Cost $115,121) 		  119,430
       
 
       
 
Total Long-Term Investments—98.3%
(Identified Cost $115,121) 		  119,430
       
 
       
 
  Shares   Value
       
       
Securities Lending Collateral—4.3%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(2)(3) 5,285,449   $   5,285
Total Securities Lending Collateral
(Identified Cost $5,285) 		    5,285
       
 
       
 
TOTAL INVESTMENTS—102.6%
(Identified Cost $120,406) 		  $124,715
Other assets and liabilities, net—(2.6)%    (3,191)
NET ASSETS—100.0%   $121,524
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) All or a portion of security is on loan.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(3) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 84%
Switzerland 9
United Kingdom 3
Canada 2
Japan 2
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $119,430   $119,430
Securities Lending Collateral 5,285   5,285
Total Investments $124,715   $124,715
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
58

KAR Global Quality Dividend Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—97.5%
Communication Services—12.3%    
BCE, Inc.  34,495   $ 1,316
Omnicom Group, Inc.   5,476      408
Spark New Zealand Ltd. 407,192    1,174
Verizon Communications, Inc.  29,241      948
       3,846
       
 
Consumer Discretionary—2.3%    
Canadian Tire Corp., Ltd. Class A   6,559      705
Consumer Staples—8.1%    
Coca-Cola Co. (The)   7,998      448
Coca-Cola Europacific Partners plc   7,558      472
Flowers Foods, Inc.  24,001      533
PepsiCo, Inc.   2,946      499
Unilever plc  11,283      559
       2,511
       
 
Energy—3.6%    
TotalEnergies SE  17,133    1,129
Financials—20.2%    
Bank of Hawaii Corp.(1)   7,685      382
IGM Financial, Inc.  37,294      946
PNC Financial Services Group, Inc. (The)   5,070      622
Royal Bank of Canada   6,633      580
Safety Insurance Group, Inc.   7,991      545
Singapore Exchange Ltd.  70,082      500
Sumitomo Mitsui Trust Holdings, Inc.  12,900      486
Tokio Marine Holdings, Inc.  32,260      748
Zurich Insurance Group AG   2,065      948
Zurich Insurance Group AG ADR(1)  11,492      526
       6,283
       
 
Health Care—9.4%    
AbbVie, Inc.   8,340    1,243
Patterson Cos., Inc.  11,028      327
Pfizer, Inc.  15,790      524
Sonic Healthcare Ltd.  11,543      221
  Shares   Value
       
Health Care—continued    
Takeda Pharmaceutical Co., Ltd.  19,300   $    599
       2,914
       
 
Industrials—12.1%    
Adecco Group AG Registered Shares  17,200      709
BAE Systems plc  65,777      801
Deutsche Post AG  27,222    1,109
MSC Industrial Direct Co., Inc. Class A  11,746    1,153
       3,772
       
 
Information Technology—7.5%    
Cisco Systems, Inc.   6,366      342
International Business Machines Corp.  11,067    1,553
Texas Instruments, Inc.   2,762      439
       2,334
       
 
Materials—6.6%    
Amcor plc 139,004    1,273
Eastman Chemical Co.   6,345      487
Kemira Oyj  18,252      285
       2,045
       
 
Real Estate—1.2%    
Crown Castle, Inc.   4,033      371
Utilities—14.2%    
Fortis, Inc.  25,442      966
National Grid plc  40,330      482
Pinnacle West Capital Corp.   9,305      686
Southern Co. (The)  18,619    1,205
Terna - Rete Elettrica Nazionale 109,500      825
WEC Energy Group, Inc.   3,374      272
       4,436
       
 
Total Common Stocks
(Identified Cost $29,693) 		  30,346
       
 
       
 
Total Long-Term Investments—97.5%
(Identified Cost $29,693) 		  30,346
       
 
       
 
  Shares   Value
       
       
Securities Lending Collateral—2.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(2)(3) 697,901   $    698
Total Securities Lending Collateral
(Identified Cost $698) 		     698
       
 
       
 
TOTAL INVESTMENTS—99.7%
(Identified Cost $30,391) 		  $31,044
Other assets and liabilities, net—0.3%       93
NET ASSETS—100.0%   $31,137
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) All or a portion of security is on loan.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(3) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 44%
Canada 14
Switzerland 11
United Kingdom 7
Japan 6
New Zealand 4
France 4
Other 10
Total 100%
† % of total investments as of September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
59

KAR Global Quality Dividend Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $30,346   $30,346
Securities Lending Collateral 698   698
Total Investments $31,044   $31,044
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
60

KAR Mid-Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—95.9%
Consumer Discretionary—10.8%    
Domino’s Pizza, Inc.    142,106   $   53,828
Pool Corp.    219,479      78,157
Ross Stores, Inc.    604,299      68,256
        200,241
       
 
Consumer Staples—4.0%    
Lamb Weston Holdings, Inc.    797,537      73,740
Financials—14.8%    
Berkley (W.R.) Corp.    575,644      36,548
Broadridge Financial Solutions, Inc.    264,520      47,362
Brown & Brown, Inc.    708,014      49,448
First Financial Bankshares, Inc.  1,325,504      33,297
Houlihan Lokey, Inc. Class A    659,331      70,627
LPL Financial Holdings, Inc.    164,639      39,126
        276,408
       
 
Health Care—11.7%    
Azenta, Inc.(1)  1,317,607      66,131
Cooper Cos., Inc. (The)    193,611      61,570
West Pharmaceutical Services, Inc.    237,966      89,287
        216,988
       
 
Industrials—34.2%    
Allegion plc    428,880      44,689
AMETEK, Inc.    740,100     109,357
Equifax, Inc.    228,359      41,831
Exponent, Inc.    881,679      75,472
  Shares   Value
       
Industrials—continued    
HEICO Corp. Class A    493,922   $    63,825
Lennox International, Inc.    175,569      65,740
Nordson Corp.    284,190      63,423
Old Dominion Freight Line, Inc.    114,883      47,003
Pentair plc    769,458      49,822
Verisk Analytics, Inc. Class A    317,761      75,068
        636,230
       
 
Information Technology—19.1%    
Aspen Technology, Inc.(1)    344,080      70,282
Bentley Systems, Inc. Class B  1,441,801      72,321
Dolby Laboratories, Inc. Class A    630,525      49,975
Monolithic Power Systems, Inc.    140,645      64,978
Teledyne Technologies, Inc.(1)    119,561      48,850
Zebra Technologies Corp. Class A(1)    207,783      49,147
        355,553
       
 
Real Estate—1.3%    
Equity LifeStyle Properties, Inc.    392,702      25,019
Total Common Stocks
(Identified Cost $1,457,472) 		  1,784,179
       
 
       
 
Total Long-Term Investments—95.9%
(Identified Cost $1,457,472) 		  1,784,179
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—0.9%
Money Market Mutual Fund—0.9%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(2) 16,827,790   $    16,828
Total Short-Term Investment
(Identified Cost $16,828) 		     16,828
       
 
       
 
TOTAL INVESTMENTS—96.8%
(Identified Cost $1,474,300) 		  $1,801,007
Other assets and liabilities, net—3.2%      60,466
NET ASSETS—100.0%   $1,861,473
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,784,179   $1,784,179
Money Market Mutual Fund 16,828   16,828
Total Investments $1,801,007   $1,801,007
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
61

KAR Mid-Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Preferred Stock—1.7%
Information Technology—1.7%    
Security Scorecard, Inc. Series E(1)(2)(3) 7,919,250   $    25,097
Total Preferred Stock
(Identified Cost $40,000) 		     25,097
       
 
       
 
Common Stocks—97.3%
Communication Services—4.0%    
ROBLOX Corp. Class A(2)   424,170      12,284
Trade Desk, Inc. (The) Class A(2)   602,920      47,118
         59,402
       
 
Consumer Discretionary—21.1%    
Domino’s Pizza, Inc.    79,162      29,986
Global-e Online Ltd.(2) 1,001,698      39,808
Las Vegas Sands Corp.   314,187      14,402
MercadoLibre, Inc.(2)    40,308      51,106
Murphy USA, Inc.    50,541      17,271
On Holding AG Class A(2)   510,120      14,192
Pool Corp.   116,200      41,379
Rollins, Inc.   634,644      23,691
Ross Stores, Inc.   255,453      28,853
SiteOne Landscape Supply, Inc.(2)   326,443      53,357
        314,045
       
 
Consumer Staples—13.9%    
Brown-Forman Corp. Class B   574,757      33,158
Celsius Holdings, Inc.(2)   673,370     115,550
Freshpet, Inc.(2)   221,858      14,616
McCormick & Co., Inc. Non-voting Shares   246,211      18,623
Monster Beverage Corp.(2)   464,301      24,585
        206,532
       
 
Energy—4.7%    
Devon Energy Corp.   266,637      12,719
  Shares   Value
       
Energy—continued    
Diamondback Energy, Inc.   225,451   $   34,918
Halliburton Co.   561,000      22,720
         70,357
       
 
Financials—8.9%    
FleetCor Technologies, Inc.(2)    90,417      23,087
Goosehead Insurance, Inc. Class A(2)   669,858      49,925
MarketAxess Holdings, Inc.    66,308      14,166
T. Rowe Price Group, Inc.   247,575      25,963
Toast, Inc. Class A(2) 1,013,938      18,991
        132,132
       
 
Health Care—9.7%    
HealthEquity, Inc.(2)   231,335      16,899
IDEXX Laboratories, Inc.(2)    81,184      35,499
Mettler-Toledo International, Inc.(2)    33,686      37,326
STAAR Surgical Co.(2)   260,763      10,478
Waters Corp.(2)    40,536      11,115
Zoetis, Inc. Class A   189,825      33,026
        144,343
       
 
Industrials—10.6%    
Equifax, Inc.   204,366      37,436
Fair Isaac Corp.(2)    90,147      78,295
Paycom Software, Inc.   163,160      42,303
        158,034
       
 
Information Technology—22.1%    
Amphenol Corp. Class A   585,043      49,138
BILL Holdings, Inc.(2)   274,590      29,812
Cloudflare, Inc. Class A(2)   351,965      22,188
Datadog, Inc. Class A(2)   281,883      25,677
DoubleVerify Holdings, Inc.(2)   846,336      23,655
Gartner, Inc.(2)   195,769      67,268
Lattice Semiconductor Corp.(2)   231,530      19,895
MongoDB, Inc. Class A(2)   100,310      34,693
  Shares   Value
       
Information Technology—continued    
Roper Technologies, Inc.    44,406   $    21,505
Teradyne, Inc.   349,600      35,121
        328,952
       
 
Real Estate—2.3%    
CoStar Group, Inc.(2)   450,994      34,677
Total Common Stocks
(Identified Cost $941,924) 		  1,448,474
       
 
       
 
Total Long-Term Investments—99.0%
(Identified Cost $981,924) 		  1,473,571
       
 
       
 
TOTAL INVESTMENTS—99.0%
(Identified Cost $981,924) 		  $1,473,571
Other assets and liabilities, net—1.0%      15,482
NET ASSETS—100.0%   $1,489,053
    
Footnote Legend:
(1) The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.
(2) Non-income producing.
(3) All or a portion of the security is restricted.
    
Country Weightings (Unaudited)†
United States 93%
Brazil 3
Israel 3
Switzerland 1
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices 		  Level 3
Significant
Unobservable
Inputs
Assets:          
Equity Securities:          
Common Stocks $1,448,474   $1,448,474   $ —
Preferred Stock 25,097   —   25,097
Total Investments $1,473,571   $1,448,474   $25,097
There were no securities valued using significant observable inputs (Level 2) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
62

KAR Mid-Cap Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
The following is a reconciliation of assets of the Fund for Level 3 investments for which significant unobservable inputs were used to determine fair value.
  Total   Preferred
Stocks
Investments in Securities      
Balance as of September 30, 2022: $ 27,955   $ 27,955
Net change in unrealized appreciation (depreciation)(a) (2,858)   (2,858)
Balance as of September 30, 2023 $ 25,097   $ 25,097
(a) The net change in unrealized appreciation (depreciation) on investments still held at September 30, 2023, was $2,858.
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at September 30, 2023:
Investments in Securities – Assets   Ending
Balance
at September 30, 2023 		  Valuation Technique Used   Unobservable
Inputs 		  Input
Values
                 
Preferred Stock:                
Security Scorecard, Inc. Series E   $25,097   Market and Company Comparables   EV Multiples   6.43x (2.00x - 17.44x)
                6.03x (2.00x - 15.29x)
            Illiquidity Discount   15%
See Notes to Financial Statements
63

KAR Small-Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—98.9%
Communication Services—3.8%    
Rightmove plc 9,575,590   $   65,683
Consumer Discretionary—7.2%    
Acushnet Holdings Corp. 1,510,641      80,124
LCI Industries   381,320      44,775
        124,899
       
 
Consumer Staples—1.1%    
PriceSmart, Inc.   262,371      19,528
Financials—23.4%    
Artisan Partners Asset Management, Inc. Class A 1,259,877      47,145
BancFirst Corp.   420,429      36,464
FactSet Research Systems, Inc.   127,040      55,550
First Hawaiian, Inc. 2,524,755      45,572
Jack Henry & Associates, Inc.   163,600      24,726
Moelis & Co. Class A 1,236,917      55,822
Primerica, Inc.   520,287     100,941
RLI Corp.   307,303      41,759
        407,979
       
 
  Shares   Value
       
Health Care—5.5%    
Atrion Corp.    48,880   $   20,196
CorVel Corp.(1)   379,880      74,703
         94,899
       
 
Industrials—46.0%    
Donaldson Co., Inc.   373,400      22,270
EMCOR Group, Inc.   646,770     136,074
FTI Consulting, Inc.(1)   626,794     111,826
Graco, Inc.   882,110      64,288
Kadant, Inc.   201,638      45,479
Kforce, Inc.   436,052      26,015
Landstar System, Inc.   409,509      72,458
RBC Bearings, Inc.(1)   249,787      58,483
Simpson Manufacturing Co., Inc.   831,497     124,567
Toro Co. (The)   881,169      73,225
Watts Water Technologies, Inc. Class A   387,374      66,946
        801,631
       
 
Information Technology—8.4%    
Aspen Technology, Inc.(1)   169,612      34,645
Clearwater Analytics Holdings, Inc.
Class A (1) 		  921,878      17,829
  Shares   Value
       
Information Technology—continued    
Manhattan Associates, Inc.(1)   470,720   $    93,043
        145,517
       
 
Materials—3.5%    
UFP Industries, Inc.   602,818      61,728
Total Common Stocks
(Identified Cost $1,016,476) 		  1,721,864
       
 
       
 
Total Long-Term Investments—98.9%
(Identified Cost $1,016,476) 		  1,721,864
       
 
       
 
TOTAL INVESTMENTS—98.9%
(Identified Cost $1,016,476) 		  $1,721,864
Other assets and liabilities, net—1.1%      19,624
NET ASSETS—100.0%   $1,741,488
    
Footnote Legend:
(1) Non-income producing.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,721,864   $1,721,864
Total Investments $1,721,864   $1,721,864
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
64

KAR Small-Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—96.6%
Communication Services—12.1%    
Auto Trader Group plc 26,638,364   $  200,729
MediaAlpha, Inc. Class A(1)(2)  3,972,151      32,810
Rightmove plc 24,163,392     165,746
        399,285
       
 
Consumer Discretionary—16.3%    
Dream Finders Homes, Inc. Class A(1)(2)(3)  3,678,552      81,774
Fox Factory Holding Corp.(1)(2)  2,375,008     235,316
Holley, Inc.(1)(2) 10,610,230      52,945
Ollie’s Bargain Outlet Holdings, Inc.(2)  1,392,885     107,503
Revolve Group, Inc. Class A(1)(2)  4,710,701      64,113
        541,651
       
 
Consumer Staples—0.9%    
PriceSmart, Inc.    392,298      29,199
Financials—33.0%    
FactSet Research Systems, Inc.    230,290     100,697
Goosehead Insurance, Inc. Class A(1)(2)  1,346,476     100,353
Interactive Brokers Group, Inc. Class A  1,946,856     168,520
MarketAxess Holdings, Inc.    386,152      82,497
Morningstar, Inc.    814,690     190,833
Oportun Financial Corp.(2)  1,462,554      10,560
Ryan Specialty Holdings, Inc. Class A(1)(2)  6,444,150     311,897
ServisFirst Bancshares, Inc.  2,478,065     129,280
      1,094,637
       
 
Health Care—6.4%    
Mesa Laboratories, Inc.     85,353       8,968
  Shares   Value
       
Health Care—continued    
National Research Corp.(1)  2,409,518   $   106,910
U.S. Physical Therapy, Inc.(1)  1,044,500      95,812
        211,690
       
 
Industrials—7.3%    
AAON, Inc.  3,116,350     177,227
Omega Flex, Inc.(1)    806,308      63,481
        240,708
       
 
Information Technology—20.6%    
Aspen Technology, Inc.(2)    398,668      81,432
BILL Holdings, Inc.(2)  1,327,005     144,073
BlackLine, Inc.(2)  1,489,883      82,644
Endava plc Sponsored ADR(2)    825,767      47,358
nCino, Inc.(2)  4,350,977     138,361
NVE Corp.(1)    245,690      20,181
Olo, Inc. Class A(1)(2)  8,264,600      50,083
SPS Commerce, Inc.(2)    685,590     116,968
        681,100
       
 
Total Common Stocks
(Identified Cost $2,224,825) 		  3,198,270
       
 
       
 
Total Long-Term Investments—96.6%
(Identified Cost $2,224,825) 		  3,198,270
       
 
       
 
Short-Term Investment—0.3%
Money Market Mutual Fund—0.3%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(4) 10,724,793      10,725
Total Short-Term Investment
(Identified Cost $10,725) 		     10,725
       
 
       
 
  Shares   Value
       
       
Securities Lending Collateral—0.0%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(4)(5)    874,949   $       875
Total Securities Lending Collateral
(Identified Cost $875) 		        875
       
 
       
 
TOTAL INVESTMENTS—96.9%
(Identified Cost $2,236,425) 		  $3,209,870
Other assets and liabilities, net—3.1%     103,473
NET ASSETS—100.0%   $3,313,343
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Affiliated investment. See Note 3H in Notes to Financial Statements.
(2) Non-income producing.
(3) All or a portion of security is on loan.
(4) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(5) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 87%
United Kingdom 13
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $3,198,270   $3,198,270
Money Market Mutual Fund 10,725   10,725
Securities Lending Collateral 875   875
Total Investments $3,209,870   $3,209,870
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
65

KAR Small-Cap Value Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—97.2%
Consumer Discretionary—14.1%    
Cheesecake Factory, Inc. (The)   717,767   $ 21,748
Latham Group, Inc.(1)   317,200       888
Leslie’s, Inc.(1) 3,213,442    18,188
SiteOne Landscape Supply, Inc.(1)   179,299    29,307
Thor Industries, Inc.   330,796    31,469
      101,600
       
 
Consumer Staples—6.6%    
National Beverage Corp.(1)   523,333    24,607
WD-40 Co.   114,930    23,358
       47,965
       
 
Financials—25.3%    
Bank of Hawaii Corp.   348,701    17,327
EVERTEC, Inc.   814,940    30,299
First Financial Bankshares, Inc.   290,295     7,292
Houlihan Lokey, Inc. Class A   362,103    38,789
Jack Henry & Associates, Inc.    86,554    13,082
Lakeland Financial Corp.   189,327     8,985
Primerica, Inc.   147,046    28,528
RLI Corp.   173,976    23,642
  Shares   Value
       
Financials—continued    
Stock Yards Bancorp, Inc.   371,954   $ 14,614
      182,558
       
 
Health Care—3.5%    
Azenta, Inc.(1)   506,973    25,445
Industrials—35.8%    
Albany International Corp. Class A   225,874    19,488
Armstrong World Industries, Inc.   286,891    20,656
Construction Partners, Inc. Class A(1)   799,552    29,232
Graco, Inc.   162,045    11,810
Hillman Solutions Corp.(1) 3,387,047    27,943
John Bean Technologies Corp.   152,140    15,996
Landstar System, Inc.   164,945    29,185
RBC Bearings, Inc.(1)   127,876    29,940
UniFirst Corp.   140,652    22,928
Watsco, Inc.   134,453    50,785
      257,963
       
 
Information Technology—3.6%    
American Software, Inc. Class A   618,489     7,088
Badger Meter, Inc.   133,595    19,220
       26,308
       
 
  Shares   Value
       
Materials—5.6%    
HB Fuller Co.   382,394   $  26,236
Scotts Miracle-Gro Co. (The)   270,274    13,968
       40,204
       
 
Real Estate—2.7%    
Getty Realty Corp.   691,076    19,164
Total Common Stocks
(Identified Cost $472,872) 		  701,207
       
 
       
 
Total Long-Term Investments—97.2%
(Identified Cost $472,872) 		  701,207
       
 
       
 
TOTAL INVESTMENTS—97.2%
(Identified Cost $472,872) 		  $701,207
Other assets and liabilities, net—2.8%    19,878
NET ASSETS—100.0%   $721,085
    
Footnote Legend:
(1) Non-income producing.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $701,207   $701,207
Total Investments $701,207   $701,207
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
66

KAR Small-Mid Cap Core Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—96.6%
Consumer Discretionary—19.0%    
Bright Horizons Family Solutions, Inc.(1)   354,845   $   28,906
Choice Hotels International, Inc.   273,146      33,463
Pool Corp.   171,688      61,138
Rollins, Inc. 1,132,526      42,277
SiteOne Landscape Supply, Inc.(1)   249,589      40,795
Thor Industries, Inc.   485,739      46,209
        252,788
       
 
Financials—13.3%    
Berkley (W.R.) Corp.   697,808      44,304
Interactive Brokers Group, Inc. Class A   435,085      37,661
Jack Henry & Associates, Inc.   279,045      42,175
LPL Financial Holdings, Inc.   224,375      53,322
        177,462
       
 
Health Care—9.9%    
Charles River Laboratories International, Inc.(1)   223,432      43,788
Chemed Corp.    66,023      34,312
  Shares   Value
       
Health Care—continued    
Cooper Cos., Inc. (The)   167,237   $   53,183
        131,283
       
 
Industrials—27.7%    
Allegion plc   327,404      34,115
Equifax, Inc.   212,884      38,996
Exponent, Inc.   436,970      37,405
Fair Isaac Corp.(1)    33,204      28,839
Lennox International, Inc.   142,631      53,407
Nordson Corp.   226,736      50,601
Saia, Inc.(1)    95,240      37,967
Watsco, Inc.   125,924      47,564
Zurn Elkay Water Solutions Corp. 1,460,178      40,914
        369,808
       
 
Information Technology—25.0%    
ANSYS, Inc.(1)   159,397      47,429
Aspen Technology, Inc.(1)   216,853      44,294
Bentley Systems, Inc. Class B 1,419,588      71,207
Dolby Laboratories, Inc. Class A   517,859      41,045
Teledyne Technologies, Inc.(1)    94,120      38,456
Teradyne, Inc.   465,676      46,782
  Shares   Value
       
Information Technology—continued    
Zebra Technologies Corp. Class A(1)   188,818   $    44,661
        333,874
       
 
Materials—1.7%    
Scotts Miracle-Gro Co. (The)   436,433      22,555
Total Common Stocks
(Identified Cost $1,212,137) 		  1,287,770
       
 
       
 
Total Long-Term Investments—96.6%
(Identified Cost $1,212,137) 		  1,287,770
       
 
       
 
TOTAL INVESTMENTS—96.6%
(Identified Cost $1,212,137) 		  $1,287,770
Other assets and liabilities, net—3.4%      45,994
NET ASSETS—100.0%   $1,333,764
    
Footnote Legend:
(1) Non-income producing.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $1,287,770   $1,287,770
Total Investments $1,287,770   $1,287,770
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
67

KAR Small-Mid Cap Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—95.2%
Communication Services—3.9%    
Rightmove plc Unsponsored ADR  26,935   $  366
Consumer Discretionary—6.5%    
Ollie’s Bargain Outlet Holdings, Inc.(1)   3,735     288
SiteOne Landscape Supply, Inc.(1)   1,916     313
        601
       
 
Consumer Staples—3.3%    
Lamb Weston Holdings, Inc.   3,284     304
Financials—15.2%    
FactSet Research Systems, Inc.     793     346
Jack Henry & Associates, Inc.   1,872     283
MarketAxess Holdings, Inc.   1,291     276
Ryan Specialty Holdings, Inc. Class A(1)  10,411     504
      1,409
       
 
Health Care—19.7%    
Atrion Corp.     423     175
Azenta, Inc.(1)   3,571     179
Certara, Inc.(1)  16,702     243
Cooper Cos., Inc. (The)     595     189
HealthEquity, Inc.(1)   5,181     379
Silk Road Medical, Inc.(1)   9,261     139
  Shares   Value
       
Health Care—continued    
West Pharmaceutical Services, Inc.   1,392   $   522
      1,826
       
 
Industrials—23.6%    
Copart, Inc.(1)   9,166     395
Fair Isaac Corp.(1)     560     486
HEICO Corp. Class A   3,162     409
Saia, Inc.(1)     879     350
TransUnion   3,086     222
Verisk Analytics, Inc. Class A   1,384     327
      2,189
       
 
Information Technology—23.0%    
Bentley Systems, Inc. Class B   8,845     444
Clearwater Analytics Holdings, Inc. Class A (1)  16,358     317
Copperleaf Technologies, Inc.(1)  68,753     286
nCino, Inc.(1)  12,747     405
Teledyne Technologies, Inc.(1)     825     337
Tyler Technologies, Inc.(1)     876     338
      2,127
       
 
Total Common Stocks
(Identified Cost $8,769) 		  8,822
       
 
       
 
Total Long-Term Investments—95.2%
(Identified Cost $8,769) 		  8,822
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—1.8%
Money Market Mutual Fund—1.8%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(2) 163,520   $   164
Total Short-Term Investment
(Identified Cost $164) 		    164
       
 
       
 
TOTAL INVESTMENTS—97.0%
(Identified Cost $8,933) 		  $8,986
Other assets and liabilities, net—3.0%     278
NET ASSETS—100.0%   $9,264
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
    
Country Weightings (Unaudited)†
United States 93%
United Kingdom 4
Canada 3
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $8,822   $8,822
Money Market Mutual Fund 164   164
Total Investments $8,986   $8,986
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
68

KAR Small-Mid Cap Value Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—96.4%
Consumer Discretionary—13.3%    
Cheesecake Factory, Inc. (The)   4,266   $  129
Gentex Corp.   7,453     243
Leslie’s, Inc.(1)  26,748     151
Thor Industries, Inc.   2,521     240
        763
       
 
Consumer Staples—6.4%    
National Beverage Corp.(1)   3,946     185
WD-40 Co.     910     185
        370
       
 
Financials—21.8%    
Bank of Hawaii Corp.   2,606     130
Berkley (W.R.) Corp.   4,269     271
Broadridge Financial Solutions, Inc.   1,431     256
Houlihan Lokey, Inc. Class A   1,260     135
Jack Henry & Associates, Inc.   1,477     223
LPL Financial Holdings, Inc.   1,015     241
      1,256
       
 
Health Care—2.4%    
CorVel Corp.(1)     688     135
Industrials—35.9%    
Armstrong World Industries, Inc.   1,651     119
CACI International, Inc. Class A(1)     462     145
Graco, Inc.   2,964     216
John Bean Technologies Corp.   1,218     128
  Shares   Value
       
Industrials—continued    
Kadant, Inc.     564   $   127
Landstar System, Inc.   1,343     238
Lennox International, Inc.     653     244
RBC Bearings, Inc.(1)   1,028     241
Toro Co. (The)   2,109     175
TransUnion   3,890     279
Zurn Elkay Water Solutions Corp.   5,593     157
      2,069
       
 
Information Technology—10.3%    
Dolby Laboratories, Inc. Class A   2,736     217
Teradyne, Inc.   1,812     182
Zebra Technologies Corp. Class A(1)     811     192
        591
       
 
Materials—4.6%    
HB Fuller Co.   2,316     159
Scotts Miracle-Gro Co. (The)   2,075     107
        266
       
 
Real Estate—1.7%    
Lamar Advertising Co. Class A   1,194     100
Total Common Stocks
(Identified Cost $5,994) 		  5,550
       
 
       
 
Total Long-Term Investments—96.4%
(Identified Cost $5,994) 		  5,550
       
 
       
 
  Shares   Value
       
       
Short-Term Investment—2.9%
Money Market Mutual Fund—2.9%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(2) 167,692   $   168
Total Short-Term Investment
(Identified Cost $168) 		    168
       
 
       
 
TOTAL INVESTMENTS—99.3%
(Identified Cost $6,162) 		  $5,718
Other assets and liabilities, net—0.7%      39
NET ASSETS—100.0%   $5,757
    
Footnote Legend:
(1) Non-income producing.
(2) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $5,550   $5,550
Money Market Mutual Fund 168   168
Total Investments $5,718   $5,718
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
See Notes to Financial Statements
69

SGA Emerging Markets Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—99.8%
Communication Services—8.1%    
Kakao Corp.   2,535   $   82
NAVER Corp.   1,069     160
Tencent Holdings Ltd.   3,476     136
        378
       
 
Consumer Discretionary—21.7%    
adidas AG     574     101
Fast Retailing Co., Ltd.   1,185     258
H World Group Ltd.(1)  32,530     128
JD.com, Inc. Class A   8,336     123
MercadoLibre, Inc.(1)     155     197
Yum China Holdings, Inc.   3,514     198
      1,005
       
 
Consumer Staples—36.0%    
Budweiser Brewing Co. APAC Ltd.  68,601     136
China Mengniu Dairy Co., Ltd.(1)  49,482     166
CP ALL PCL Foreign Shares 143,458     238
Fomento Economico Mexicano SAB de C.V. Sponsored ADR   2,686     293
Heineken N.V.   1,449     128
L’Oreal S.A.     340     141
Raia Drogasil S.A.  22,494     124
Unilever plc Sponsored ADR   2,881     142
Wal-Mart de Mexico SAB de C.V.  80,079     302
      1,670
       
 
  Shares   Value
       
Financials—23.4%    
AIA Group Ltd.  18,525   $   151
Bajaj Finance Ltd.   1,070     101
Bank Central Asia Tbk PT 328,892     188
HDFC Bank Ltd. ADR   4,857     286
Sanlam Ltd.  42,181     146
XP, Inc. Class A   9,187     212
      1,084
       
 
Health Care—2.1%    
Shandong Weigao Group Medical Polymer Co., Ltd. Class H 112,208      99
Information Technology—6.3%    
Infosys Ltd. Sponsored ADR  17,060     292
Materials—2.2%    
Asian Paints Ltd.   2,736     104
Total Common Stocks
(Identified Cost $4,561) 		  4,632
       
 
       
 
Total Long-Term Investments—99.8%
(Identified Cost $4,561) 		  4,632
       
 
       
 
TOTAL INVESTMENTS—99.8%
(Identified Cost $4,561) 		  $4,632
Other assets and liabilities, net—0.2%      11
NET ASSETS—100.0%   $4,643
    
Abbreviation:
ADR American Depositary Receipt
    
Footnote Legend:
(1) Non-income producing.
    
Country Weightings (Unaudited)†
India 17%
China 15
Mexico 13
Brazil 11
Hong Kong 10
Japan 6
South Korea 5
Other 23
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $4,632   $4,632
Total Investments $4,632   $4,632
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
70

SGA Global Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—99.6%
Communication Services—5.8%    
Alphabet, Inc. Class C(1)    25,866   $  3,411
Universal Music Group N.V.   114,791     3,001
        6,412
       
 
Consumer Discretionary—9.9%    
Amazon.com, Inc.(1)    39,412     5,010
MercadoLibre, Inc.(1)     2,212     2,804
Yum! Brands, Inc.    24,817     3,101
       10,915
       
 
Consumer Staples—7.0%    
China Mengniu Dairy Co., Ltd.(1)   650,459     2,181
CP ALL PCL Foreign Shares 1,791,800     2,977
Heineken N.V.    29,274     2,583
        7,741
       
 
Financials—22.7%    
AIA Group Ltd.   281,416     2,294
Aon plc Class A    10,535     3,416
FleetCor Technologies, Inc.(1)     8,391     2,143
HDFC Bank Ltd. ADR    80,223     4,734
MSCI, Inc. Class A     7,220     3,704
S&P Global, Inc.    10,859     3,968
Visa, Inc. Class A    21,391     4,920
       25,179
       
 
Health Care—21.4%    
Alcon, Inc.    42,401     3,267
Danaher Corp.    13,825     3,430
ICON plc ADR(1)    14,276     3,516
Medtronic plc    33,251     2,606
Novo Nordisk A/S Class B    43,524     3,973
STERIS plc    15,970     3,504
  Shares   Value
       
Health Care—continued    
UnitedHealth Group, Inc.     6,780   $   3,418
       23,714
       
 
Industrials—2.8%    
Canadian Pacific Kansas City Ltd.    42,084     3,131
Information Technology—24.9%    
Atlassian Corp. Class A(1)    13,935     2,808
Autodesk, Inc.(1)    14,045     2,906
Infosys Ltd. Sponsored ADR   196,695     3,365
Intuit, Inc.     6,534     3,338
Microsoft Corp.    17,305     5,464
NVIDIA Corp.     6,903     3,003
Salesforce, Inc.(1)    13,067     2,650
Workday, Inc. Class A(1)    19,002     4,083
       27,617
       
 
Materials—2.5%    
Linde plc     7,519     2,800
Real Estate—2.6%    
Equinix, Inc.     3,989     2,897
Total Common Stocks
(Identified Cost $88,079) 		  110,406
       
 
       
 
Total Long-Term Investments—99.6%
(Identified Cost $88,079) 		  110,406
       
 
       
 
TOTAL INVESTMENTS—99.6%
(Identified Cost $88,079) 		  $110,406
Other assets and liabilities, net—0.4%       469
NET ASSETS—100.0%   $110,875
Abbreviations:
ADR American Depositary Receipt
MSCI Morgan Stanley Capital International
S&P Standard & Poor’s
    
Footnote Legend:
(1) Non-income producing.
    
Country Weightings (Unaudited)†
United States 63%
India 7
Netherlands 5
Hong Kong 4
Denmark 4
Ireland 3
United Kingdom 3
Other 11
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $110,406   $110,406
Total Investments $110,406   $110,406
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
71

SGA New Leaders Growth Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Shares   Value
Common Stocks—99.7%
Communication Services—8.7%    
Kakao Corp.   5,060   $  165
NAVER Corp.     918     137
Universal Music Group N.V.  11,857     310
        612
       
 
Consumer Discretionary—10.3%    
H World Group Ltd.(1)  37,160     146
Lululemon Athletica, Inc.(1)     405     156
MercadoLibre, Inc.(1)     165     209
Yum! Brands, Inc.   1,725     216
        727
       
 
Consumer Staples—16.0%    
China Mengniu Dairy Co., Ltd.(1)  58,806     197
CP ALL PCL Foreign Shares 141,078     235
Fomento Economico Mexicano SAB de C.V. Sponsored ADR   2,614     285
Haleon plc ADR  27,382     228
Raia Drogasil S.A.  33,010     181
      1,126
       
 
Financials—15.1%    
Adyen N.V.(1)     179     134
FleetCor Technologies, Inc.(1)   1,231     314
MSCI, Inc. Class A     553     284
XP, Inc. Class A  14,234     328
      1,060
       
 
Health Care—20.7%    
Alcon, Inc.   3,139     242
ICON plc ADR(1)     854     210
IDEXX Laboratories, Inc.(1)     367     161
IQVIA Holdings, Inc.(1)     999     197
  Shares   Value
       
Health Care—continued    
Shandong Weigao Group Medical Polymer Co., Ltd. Class H 194,721   $   171
STERIS plc   1,132     248
Veeva Systems, Inc. Class A(1)   1,090     222
      1,451
       
 
Industrials—3.0%    
Experian plc   6,364     209
Information Technology—17.1%    
Atlassian Corp. Class A(1)   1,450     292
Autodesk, Inc.(1)   1,350     279
EPAM Systems, Inc.(1)     731     187
Gartner, Inc.(1)     420     144
Workday, Inc. Class A(1)   1,376     296
      1,198
       
 
Materials—5.8%    
Ball Corp.   4,140     206
Ecolab, Inc.   1,207     205
        411
       
 
Real Estate—3.0%    
Equinix, Inc.     287     208
Total Common Stocks
(Identified Cost $7,308) 		  7,002
       
 
       
 
Total Long-Term Investments—99.7%
(Identified Cost $7,308) 		  7,002
       
 
       
 
TOTAL INVESTMENTS—99.7%
(Identified Cost $7,308) 		  $7,002
Other assets and liabilities, net—0.3%      21
NET ASSETS—100.0%   $7,023
Abbreviations:
ADR American Depositary Receipt
MSCI Morgan Stanley Capital International
    
Footnote Legend:
(1) Non-income producing.
    
Country Weightings (Unaudited)†
United States 46%
Brazil 10
Ireland 10
Netherlands 6
China 5
South Korea 4
Mexico 4
Other 15
Total 100%
† % of total investments as of September 30, 2023.
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices
Assets:      
Equity Securities:      
Common Stocks $7,002   $7,002
Total Investments $7,002   $7,002
There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at September 30, 2023.
There were no transfers into or out of Level 3 related to securities held at September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
72

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS September 30, 2023
($ reported in thousands)
  Par Value   Value
U.S. Government Securities—4.1%
U.S. Treasury Bonds      
2.375%, 2/15/42 $     2,780   $   1,922
3.250%, 5/15/42        235       187
3.000%, 8/15/48      7,650     5,592
2.000%, 2/15/50      2,045     1,193
1.375%, 8/15/50     12,745     6,219
1.875%, 2/15/51      5,255     2,945
2.000%, 8/15/51        440       254
2.250%, 2/15/52         35        22
2.875%, 5/15/52      2,335     1,656
3.625%, 2/15/53        425       352
3.625%, 5/15/53      3,840     3,179
4.125%, 8/15/53        940       853
Total U.S. Government Securities
(Identified Cost $36,883) 		   24,374
       
 
       
 
Municipal Bonds—1.2%
California—0.1%    
Santa Clara Valley Water District Series B, Taxable
2.967%, 6/1/50 		       510       325
University of California, Series B-A, Taxable
4.428%, 5/15/48 		       380       314
          639
       
 
Florida—0.3%    
Broward County, Water & Sewer Utility Revenue Series A
4.000%, 10/1/47 		     2,115     1,878
Idaho—0.1%    
Idaho Health Facilities Authority St. Luke’s Health System Revenue Taxable Series B
5.020%, 3/1/48 		       450       387
Illinois—0.0%    
Sales Tax Securitization Corp. Series B, Second Lien, Taxable (BAM Insured)
3.411%, 1/1/43 		        70        50
New York—0.4%    
Metropolitan Transportation Authority Revenue Taxable Series A
5.000%, 11/15/45 		     2,555     2,632
Texas—0.2%    
City of San Antonio, General Obligation Taxable
1.963%, 2/1/33 		       530       402
State of Texas, General Obligation Taxable
3.211%, 4/1/44 		       180       135
  Par Value   Value
       
Texas—continued    
Texas Public Finance Authority Revenue Taxable
2.140%, 2/1/35 		$ 585   $     425
Texas Transportation Commission State Highway Fund Revenue Taxable
4.000%, 10/1/33 		       160       146
        1,108
       
 
Virginia—0.1%    
City of Bristol, General Obligation Taxable (State AID Withholding Insured)
4.210%, 1/1/42 		       640       519
Total Municipal Bonds
(Identified Cost $8,777) 		    7,213
       
 
       
 
Foreign Government Securities—0.4%
Bolivarian Republic of Venezuela      
9.375%, 1/13/34(1)        130        12
RegS
8.250%, 10/13/24(1)(2) 		        40         4
RegS
7.650%, 4/21/25(1)(2) 		       320        30
Dominican Republic 144A
4.875%, 9/23/32(3) 		       820       666
Federative Republic of Brazil
6.000%, 10/20/33 		       620       585
Republic of Serbia 144A
6.500%, 9/26/33(3) 		       235       223
United Mexican States
6.350%, 2/9/35 		       695       679
Total Foreign Government Securities
(Identified Cost $2,623) 		    2,199
       
 
       
 
Mortgage-Backed Securities—9.6%
Agency—2.0%    
Federal Home Loan Mortgage Corporation      
Pool #A46224
5.000%, 7/1/35 		        41        40
Pool #A62213
6.000%, 6/1/37 		        79        80
Pool #SD8309
6.000%, 3/1/53 		     4,043     3,992
Federal National Mortgage Association      
Pool #254549
6.000%, 12/1/32 		        12        12
Pool #310041
6.500%, 5/1/37 		        75        79
Pool #735061
6.000%, 11/1/34 		        90        91
  Par Value   Value
       
Agency—continued    
Pool #880117
5.500%, 4/1/36 		$ 3   $ 3
Pool #909092
6.000%, 9/1/37 		         5         5
Pool #909175
5.500%, 4/1/38 		        51        50
Pool #909220
6.000%, 8/1/38 		        57        57
Pool #929625
5.500%, 6/1/38 		        68        68
Pool #938574
5.500%, 9/1/36 		        52        52
Pool #972569
5.000%, 3/1/38 		        63        62
Pool #FS4438
5.000%, 11/1/52 		     1,857     1,754
Pool #MA4785
5.000%, 10/1/52 		     1,650     1,558
Pool #MA4805
4.500%, 11/1/52 		     1,058       972
Pool #MA4980
6.000%, 4/1/53 		     1,908     1,883
Pool #MA5072
5.500%, 7/1/53 		     1,020       986
       11,744
       
 
Non-Agency—7.6%    
A&D Mortgage Trust 2023-NQM3, A1 144A
6.733%, 7/25/68(3)(4) 		       814       813
Ajax Mortgage Loan Trust      
2019-D, A1 144A
2.956%, 9/25/65(3)(4) 		       346       316
2021-A, A1 144A
1.065%, 9/25/65(3)(4) 		       402       340
2022-B, A1 144A
3.500%, 3/27/62(3)(4) 		     1,196     1,097
American Homes 4 Rent Trust      
2014-SFR2, C 144A
4.705%, 10/17/36(3) 		     1,050     1,029
2015-SFR2, C 144A
4.691%, 10/17/52(3) 		       335       325
AMSR Trust      
2020-SFR1, B 144A
2.120%, 4/17/37(3) 		       530       497
2020-SFR2, C 144A
2.533%, 7/17/37(3) 		       750       698
2020-SFR2, D 144A
3.282%, 7/17/37(3) 		       770       722
Angel Oak Mortgage Trust      
2020-4, A1 144A
1.469%, 6/25/65(3)(4) 		       316       292
2022-5, A1 144A
4.500%, 5/25/67(3)(4) 		       230       216
Angel Oak SB Commercial Mortgage Trust 2020-SBC1, A1 144A
2.068%, 5/25/50(3)(4) 		       470       429
See Notes to Financial Statements
73

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Non-Agency—continued    
Arroyo Mortgage Trust      
2019-1, A1 144A
3.805%, 1/25/49(3)(4) 		$ 131   $ 120
2019-2, A1 144A
3.347%, 4/25/49(3)(4) 		       706       647
2022-1, A1B 144A
3.269%, 12/25/56(3)(4) 		       670       558
Benchmark Mortgage Trust 2023-B38, A2
5.626%, 4/15/56 		       525       509
BPR Trust 2021-KEN, A (1 month Term SOFR + 1.364%, Cap N/A, Floor 1.250%) 144A
6.696%, 2/15/29(3)(4) 		       920       910
BX Commercial Mortgage Trust 2022-LP2, D (1 month Term SOFR + 1.961%, Cap N/A, Floor 1.961%) 144A
7.293%, 2/15/39(3)(4) 		       215       205
BX Trust 2019-OC11, D 144A
4.075%, 12/9/41(3)(4) 		     1,379     1,134
Cascade MH Asset Trust 2021-MH1, A1 144A
1.753%, 2/25/46(3) 		       943       793
CENT Trust 2023-CITY, A (1 month Term SOFR + 2.620%, Cap N/A, Floor 2.620%) 144A
7.952%, 9/15/28(3)(4) 		       400       400
Chase Mortgage Finance Corp.      
2016-SH1, M2 144A
3.750%, 4/25/45(3)(4) 		       134       117
2016-SH2, M2 144A
3.750%, 12/25/45(3)(4) 		       298       260
CHL Mortgage Pass-Through Trust 2004-6, 1A2
4.892%, 5/25/34(4) 		       113       101
CIM Trust 2022-R2, A1 144A
3.750%, 12/25/61(3)(4) 		       751       676
Citigroup Mortgage Loan Trust, Inc. 2018-RP1, A1 144A
3.000%, 9/25/64(3)(4) 		       256       243
COLT Mortgage Loan Trust 2022-5, A1 144A
4.550%, 4/25/67(3)(4) 		     1,027       967
COMM Mortgage Trust      
2013-300P, A1 144A
4.353%, 8/10/30(3) 		       565       516
2020-CBM, B 144A
3.099%, 2/10/37(3) 		       490       458
CoreVest American Finance Issuer LLC 2021-RTL1, A1 144A
2.239%, 3/28/29(3)(4) 		       290       268
  Par Value   Value
       
Non-Agency—continued    
CoreVest American Finance Trust      
2019-3, C 144A
3.265%, 10/15/52(3) 		$ 295   $ 246
2020-1, A1 144A
1.832%, 3/15/50(3) 		       189       180
2020-3, A 144A
1.358%, 8/15/53(3) 		       343       312
2020-4, A 144A
1.174%, 12/15/52(3) 		       454       412
Credit Suisse Mortgage Capital Trust      
2017-RPL1, A1 144A
2.750%, 7/25/57(3)(4) 		       313       294
2020-NQM1, A1 144A
1.208%, 5/25/65(3)(4) 		        71        64
2020-RPL4, A1 144A
2.000%, 1/25/60(3)(4) 		       270       229
Ellington Financial Mortgage Trust      
2019-2, A3 144A
3.046%, 11/25/59(3)(4) 		        34        31
2022-1, A1 144A
2.206%, 1/25/67(3)(4) 		       368       299
FirstKey Homes Trust      
2020-SFR2, B 144A
1.567%, 10/19/37(3) 		       645       586
2021-SFR1, D 144A
2.189%, 8/17/38(3) 		       680       593
Flagstar Mortgage Trust 2017-1, 1A3 144A
3.500%, 3/25/47(3)(4) 		        82        71
Galton Funding Mortgage Trust 2018-1, A23 144A
3.500%, 11/25/57(3)(4) 		       303       265
GCAT Trust 2020-NQM1, A1 144A
2.247%, 1/25/60(3)(4) 		        22        21
GCT Commercial Mortgage Trust 2021-GCT, A (1 month Term SOFR + 0.914%, Cap N/A, Floor 0.800%) 144A
6.247%, 2/15/38(3)(4) 		     1,080       848
Goldman Sachs Mortgage Securities Trust 2020-GC45, AS
3.173%, 2/13/53(4) 		       565       453
Homes Trust 2023-NQM2, A1 144A
6.456%, 2/25/68(3)(4) 		       296       296
INTOWN Mortgage Trust 2022-STAY, A (1 month Term SOFR + 2.489%, Cap N/A, Floor 2.489%) 144A
7.821%, 8/15/39(3)(4) 		       590       591
JPMBB Commercial Mortgage Securities Trust 2014-C18, AS
4.439%, 2/15/47(4) 		       656       642
  Par Value   Value
       
Non-Agency—continued    
JPMorgan Chase Commercial Mortgage Securities Trust 2013-C13, E 144A
3.986%, 1/15/46(3)(4) 		$ 710   $ 601
JPMorgan Chase Mortgage Trust      
2014-1, 2A12 144A
3.500%, 1/25/44(3)(4) 		        14        12
2017-3, 2A2 144A
2.500%, 8/25/47(3)(4) 		        43        36
2017-4, A3 144A
3.500%, 11/25/48(3)(4) 		       105        93
2017-5, A1 144A
3.542%, 10/26/48(3)(4) 		        64        63
KNDL Mortgage Trust 2019-KNSQ, A (1 month Term SOFR + 0.996%, Cap N/A, Floor 0.800%) 144A
6.328%, 5/15/36(3)(4) 		       565       562
LHOME Mortgage Trust      
2021-RTL1, A1 144A
2.090%, 2/25/26(3)(4) 		       111       111
2021-RTL2, A1 144A
2.090%, 6/25/26(3)(4) 		       225       221
MetLife Securitization Trust 2017-1A, M1 144A
3.451%, 4/25/55(3)(4) 		       860       708
Mill City Mortgage Loan Trust      
2017-3, B1 144A
3.250%, 1/25/61(3)(4) 		       363       287
2019-1, M2 144A
3.500%, 10/25/69(3)(4) 		       509       423
MIRA Trust 2023-MILE, A 144A
6.755%, 6/10/38(3) 		       455       446
Morgan Stanley Bank of America Merrill Lynch Trust      
2013-C13, AS
4.266%, 11/15/46 		       275       274
2015-C22, AS
3.561%, 4/15/48 		       835       780
2015-C25, A4
3.372%, 10/15/48 		       590       560
New Residential Mortgage Loan Trust      
2014-1A, A 144A
3.750%, 1/25/54(3)(4) 		       149       137
2015-2A, A1 144A
3.750%, 8/25/55(3)(4) 		        92        84
2016-1A, A1 144A
3.750%, 3/25/56(3)(4) 		        43        39
2016-3A, B1 144A
4.000%, 9/25/56(3)(4) 		       322       293
2016-4A, A1 144A
3.750%, 11/25/56(3)(4) 		        33        30
2016-4A, B1A 144A
4.500%, 11/25/56(3)(4) 		       453       419
See Notes to Financial Statements
74

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Non-Agency—continued    
2017-2A, A3 144A
4.000%, 3/25/57(3)(4) 		$        68   $     63
2019-RPL2, M2 144A
3.750%, 2/25/59(3)(4) 		       660       534
2021-NQ2R, A1 144A
0.941%, 10/25/58(3)(4) 		       134       118
NLT Trust 2021-INV2, A1 144A
1.162%, 8/25/56(3)(4) 		       396       316
Palisades Mortgage Loan Trust 2021-RTL1, A1 144A
2.857%, 6/25/26(3)(4) 		       430       417
Preston Ridge Partners Mortgage LLC 2021-2, A1 144A
2.115%, 3/25/26(3)(4) 		       683       655
Pretium Mortgage Credit Partners I LLC 2021-NPL1, A1 144A
2.240%, 9/27/60(3)(4) 		       494       476
Progress Residential Trust      
2019-SFR3, B 144A
2.571%, 9/17/36(3) 		       460       443
2021-SFR3, D 144A
2.288%, 5/17/26(3) 		       450       397
Provident Funding Mortgage Trust 2019-1, A2 144A
3.000%, 12/25/49(3)(4) 		       217       178
RCKT Mortgage Trust 2020-1, A1 144A
3.000%, 2/25/50(3)(4) 		       240       196
Residential Mortgage Loan Trust 2019-2, A1 144A
2.913%, 5/25/59(3)(4) 		        22        22
Sequoia Mortgage Trust 2013-8, B1
3.481%, 6/25/43(4) 		        57        53
Starwood Mortgage Residential Trust      
2020-3, A1 144A
1.486%, 4/25/65(3)(4) 		        90        83
2021-3, A3 144A
1.518%, 6/25/56(3)(4) 		       154       120
Towd Point Mortgage Trust      
2016-1, M1 144A
3.500%, 2/25/55(3)(4) 		        84        82
2016-3, M1 144A
3.500%, 4/25/56(3)(4) 		       902       881
2016-4, B1 144A
3.969%, 7/25/56(3)(4) 		       585       528
2017-1, M1 144A
3.750%, 10/25/56(3)(4) 		       185       172
2018-2, A2 144A
3.500%, 3/25/58(3)(4) 		       560       509
2018-6, A1B 144A
3.750%, 3/25/58(3)(4) 		       420       382
2018-6, A2 144A
3.750%, 3/25/58(3)(4) 		     1,270     1,063
2019-1, A1 144A
3.750%, 3/25/58(3)(4) 		       343       319
  Par Value   Value
       
Non-Agency—continued    
2019-2, A2 144A
3.750%, 12/25/58(3)(4) 		$       500   $     421
2019-4, A2 144A
3.250%, 10/25/59(3)(4) 		       650       537
2019-HY2, M1 (1 month Term SOFR + 1.714%, Cap N/A, Floor 1.600%) 144A
7.034%, 5/25/58(3)(4) 		       215       215
2020-MH1, A2 144A
2.500%, 2/25/60(3)(4) 		     1,115       973
2021-1, A2 144A
2.750%, 11/25/61(3)(4) 		     1,265       958
Tricon American Homes Trust      
2019-SFR1, C 144A
3.149%, 3/17/38(3) 		       435       403
2020-SFR2, D 144A
2.281%, 11/17/39(3) 		       880       744
Tricon Residential Trust 2021-SFR1, B 144A
2.244%, 7/17/38(3) 		       515       459
TVC Mortgage Trust 2020-RTL1, M 144A
5.193%, 9/25/24(3)(4) 		       510       509
VCAT LLC      
2021-NPL2, A1 144A
2.115%, 3/27/51(3)(4) 		       202       192
2021-NPL3, A1 144A
1.743%, 5/25/51(3)(4) 		       223       207
2021-NPL4, A1 144A
1.868%, 8/25/51(3)(4) 		       460       429
Verus Securitization Trust      
2019-4, M1 144A
3.207%, 11/25/59(3)(4) 		       280       243
2019-INV2, A1 144A
3.913%, 7/25/59(3)(4) 		        51        49
2022-4, A1 144A
4.474%, 4/25/67(3)(4) 		       395       370
2022-5, A1 144A
3.800%, 4/25/67(3)(4) 		       764       689
2022-7, A1 144A
5.152%, 7/25/67(3)(4) 		       629       613
Visio Trust      
2020-1R, A2 144A
1.567%, 11/25/55(3) 		       114       101
2021-1R, A1 144A
1.280%, 5/25/56(3) 		       205       185
Wells Fargo Commercial Mortgage Trust 2014-C24, AS
3.931%, 11/15/47 		       375       338
       44,910
       
 
Total Mortgage-Backed Securities
(Identified Cost $61,733) 		   56,654
       
 
       
 
  Par Value   Value
       
       
Asset-Backed Securities—4.0%
Automobiles—2.2%    
American Credit Acceptance Receivables Trust 2021-2, C 144A
0.970%, 7/13/27(3) 		$       199   $    197
AmeriCredit Automobile Receivables Trust 2020-3, C
1.060%, 8/18/26 		     1,245     1,185
Carvana Auto Receivables Trust      
2019-3A, D 144A
3.040%, 4/15/25(3) 		        56        56
2020-P1, B
0.920%, 11/9/26 		       775       710
2021-N3, D
1.580%, 6/12/28 		       537       508
Credit Acceptance Auto Loan Trust      
2020-3A, B 144A
1.770%, 12/17/29(3) 		       540       534
2022-1A, A 144A
4.600%, 6/15/32(3) 		       595       582
DT Auto Owner Trust 2023-1A, B 144A
5.190%, 10/16/28(3) 		       871       858
FHF Trust 2023-1A, A2 144A
6.570%, 6/15/28(3) 		       530       524
First Investors Auto Owner Trust      
2021-1A, C 144A
1.170%, 3/15/27(3) 		       790       758
2022-1A, C 144A
3.130%, 5/15/28(3) 		       685       642
Flagship Credit Auto Trust      
2020-3, C 144A
1.730%, 9/15/26(3) 		       517       504
2020-4, C 144A
1.280%, 2/16/27(3) 		       916       891
Foursight Capital Automobile Receivables Trust 2022-1, B 144A
2.150%, 5/17/27(3) 		       545       515
GLS Auto Receivables Issuer Trust 2020-4A, C 144A
1.140%, 11/17/25(3) 		       203       202
LAD Auto Receivables Trust 2021-1A, D 144A
3.990%, 11/15/29(3) 		       710       664
Lendbuzz Securitization Trust 2022-1A, A 144A
4.220%, 5/17/27(3) 		       434       421
Oscar US Funding XII LLC 2021-1A, A4 144A
1.000%, 4/10/28(3) 		       550       515
Santander Drive Auto Receivables Trust      
2021-3, C
0.950%, 9/15/27 		       596       587
See Notes to Financial Statements
75

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Automobiles—continued    
2022-7, A2
5.810%, 1/15/26 		$       240   $    240
Tesla Auto Lease Trust 2023-A, B 144A
6.410%, 7/20/27(3) 		       520       518
United Auto Credit Securitization Trust 2023-1, B 144A
5.910%, 7/10/28(3) 		       651       646
Westlake Automobile Receivables Trust 2023-1A, C 144A
5.740%, 8/15/28(3) 		       650       642
       12,899
       
 
Consumer Loans—0.1%    
Marlette Funding Trust 2023-2A, B 144A
6.540%, 6/15/33(3) 		       528       526
Credit Card—0.1%    
Avant Credit Card Master Trust 2021-1A, A 144A
1.370%, 4/15/27(3) 		       730       678
Other—1.6%    
Adams Outdoor Advertising LP 2023-1, A2 144A
6.967%, 7/15/53(3) 		       520       511
Amur Equipment Finance Receivables XII LLC 2023-1A, A2 144A
6.090%, 12/20/29(3) 		       520       520
Applebee’s Funding LLC 2023-1A, A2 144A
7.824%, 3/5/53(3) 		       500       493
Aqua Finance Trust      
2017-A, A 144A
3.720%, 11/15/35(3) 		         7         7
2019-A, C 144A
4.010%, 7/16/40(3) 		       587       531
2020-AA, B 144A
2.790%, 7/17/46(3) 		       755       658
Arby’s Funding LLC 2020-1A, A2 144A
3.237%, 7/30/50(3) 		       805       713
BHG Securitization Trust 2021-A, A 144A
1.420%, 11/17/33(3) 		       366       341
Cajun Global LLC 2021-1, A2 144A
3.931%, 11/20/51(3) 		       419       366
CF Hippolyta Issuer LLC 2020-1, A1 144A
1.690%, 7/15/60(3) 		       382       347
Dext ABS LLC 2023-1, A2 144A
5.990%, 3/15/32(3) 		       423       417
Diamond Resorts Owner Trust 2021-1A, A 144A
1.510%, 11/21/33(3) 		       180       165
  Par Value   Value
       
Other—continued    
Foundation Finance Trust      
2021-1A, A 144A
1.270%, 5/15/41(3) 		$       281   $     248
2023-2A, A 144A
6.530%, 6/15/49(3) 		       496       496
Jersey Mike’s Funding 2019-1A, A2 144A
4.433%, 2/15/50(3) 		       516       474
Mariner Finance Issuance Trust 2020-AA, A 144A
2.190%, 8/21/34(3) 		       492       478
MVW LLC 2020-1A, A 144A
1.740%, 10/20/37(3) 		       375       346
Navient Private Education Refi Loan Trust 2021-EA, A 144A
0.970%, 12/16/69(3) 		       579       485
NBC Funding LLC 2021-1, A2 144A
2.989%, 7/30/51(3) 		       586       508
NMEF Funding LLC 2022-A, B 144A
3.350%, 10/16/28(3) 		       525       499
Octane Receivables Trust 2023-3A, C 144A
6.740%, 8/20/29(3) 		       400       400
Orange Lake Timeshare Trust 2019-A, B 144A
3.360%, 4/9/38(3) 		       142       135
Progress Residential Trust 2021-SFR6, D 144A
2.225%, 7/17/38(3) 		       145       126
Purchasing Power Funding LLC 2021-A, A 144A
1.570%, 10/15/25(3) 		       104       103
Trinity Rail Leasing LLC 2019-1A, A 144A
3.820%, 4/17/49(3) 		       318       298
Westgate Resorts LLC 2020-1A, A 144A
2.713%, 3/20/34(3) 		       152       149
        9,814
       
 
Total Asset-Backed Securities
(Identified Cost $25,182) 		   23,917
       
 
       
 
Corporate Bonds and Notes—11.0%
Communication Services—0.5%    
AT&T, Inc.
5.400%, 2/15/34 		       520       487
CCO Holdings LLC      
144A 6.375%, 9/1/29(3)         54        50
144A 4.750%, 3/1/30(3)        250       210
Level 3 Financing, Inc. 144A
4.250%, 7/1/28(3) 		       555       346
Sprint Capital Corp.
8.750%, 3/15/32 		       340       393
  Par Value   Value
       
Communication Services—continued    
Sprint Spectrum Co. LLC 144A
4.738%, 9/20/29(3) 		$       150   $    148
Telecomunicaciones Digitales S.A. 144A
4.500%, 1/30/30(3) 		       460       373
T-Mobile USA, Inc.
5.050%, 7/15/33 		       216       200
Vodafone Group plc
5.625%, 2/10/53 		       495       439
        2,646
       
 
Consumer Discretionary—0.4%    
Ashtead Capital, Inc. 144A
5.500%, 8/11/32(3) 		       255       236
Churchill Downs, Inc. 144A
6.750%, 5/1/31(3) 		       255       241
Clarios Global LP 144A
6.750%, 5/15/28(3) 		        45        44
Ford Motor Co.
3.250%, 2/12/32 		       406       313
MDC Holdings, Inc.
3.966%, 8/6/61 		       635       349
Newell Brands, Inc.
6.375%, 9/15/27 		       330       315
Nissan Motor Acceptance Co. LLC 144A
7.050%, 9/15/28(3) 		       295       295
PulteGroup, Inc.
6.375%, 5/15/33 		       495       497
        2,290
       
 
Consumer Staples—0.4%    
Bacardi Ltd. 144A
5.400%, 6/15/33(3) 		       455       426
BAT Capital Corp.
7.750%, 10/19/32 		       600       634
Central American Bottling Corp. 144A
5.250%, 4/27/29(3) 		       225       202
Church & Dwight Co., Inc.
5.000%, 6/15/52 		       435       386
Coty, Inc. 144A
6.625%, 7/15/30(3) 		       360       351
Pilgrim’s Pride Corp.
6.250%, 7/1/33 		       523       492
        2,491
       
 
Energy—1.1%    
Alliance Resource Operating Partners LP 144A
7.500%, 5/1/25(3) 		       282       282
BP Capital Markets plc
4.875% (5) 		       600       536
Civitas Resources, Inc. 144A
8.750%, 7/1/31(3) 		       210       215
See Notes to Financial Statements
76

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Energy—continued    
Columbia Pipelines Operating Co. LLC      
144A 6.036%, 11/15/33(3) $       230   $    224
144A 6.544%, 11/15/53(3)        165       161
144A 6.714%, 8/15/63(3)         55        54
CrownRock LP 144A
5.000%, 5/1/29(3) 		       270       253
DT Midstream, Inc. 144A
4.125%, 6/15/29(3) 		       240       208
Ecopetrol S.A.
8.875%, 1/13/33 		       230       224
Enbridge, Inc.
7.625%, 1/15/83 		       620       592
Enerflex Ltd. 144A
9.000%, 10/15/27(3) 		       205       202
Energy Transfer LP Series H
6.500% (5) 		       290       266
Flex Intermediate Holdco LLC 144A
3.363%, 6/30/31(3) 		       785       610
Genesis Energy LP
8.875%, 4/15/30 		       220       215
Kinder Morgan Energy Partners LP
7.500%, 11/15/40 		       445       467
Occidental Petroleum Corp.
6.125%, 1/1/31 		       300       296
Odebrecht Oil & Gas Finance Ltd. 144A
0.000% (3)(5)(6) 		        25         1
Pertamina Persero PT 144A
6.450%, 5/30/44(3) 		       780       742
Petroleos de Venezuela S.A. 144A
6.000%, 5/16/24(1)(3) 		       255        14
Petroleos Mexicanos
7.690%, 1/23/50 		       560       358
Reliance Industries Ltd. 144A
2.875%, 1/12/32(3)(7) 		       695       552
Venture Global Calcasieu Pass LLC 144A
3.875%, 8/15/29(3) 		       305       257
        6,729
       
 
Financials—4.0%    
Allianz SE 144A
6.350%, 9/6/53(3) 		       400       386
Allstate Corp. (The) Series B (3 month Term SOFR + 3.200%)
8.564%, 8/15/53(4) 		       565       558
American Express Co.
5.625%, 7/28/34 		       575       543
Ascot Group Ltd. 144A
4.250%, 12/15/30(3) 		       745       550
  Par Value   Value
       
Financials—continued    
Banco Mercantil del Norte S.A. 144A
6.625% (3)(5) 		$       620   $    486
Bank of America Corp.      
2.687%, 4/22/32      1,725     1,356
2.482%, 9/21/36        750       546
Bank of New York Mellon Corp. (The) Series G
4.700% (5) 		       710       683
Barclays plc
7.437%, 11/2/33 		       530       544
BBVA Bancomer S.A. 144A
5.125%, 1/18/33(3) 		       340       292
Blackstone Private Credit Fund
2.625%, 12/15/26 		       313       269
Blue Owl Credit Income Corp.
4.700%, 2/8/27 		       384       349
Blue Owl Finance LLC 144A
3.125%, 6/10/31(3) 		       555       415
Brookfield Finance, Inc.
2.724%, 4/15/31 		       955       758
Capital One Financial Corp.
2.359%, 7/29/32 		       878       602
Charles Schwab Corp. (The) Series H
4.000% (5) 		       535       378
Citadel LP 144A
4.875%, 1/15/27(3) 		       460       437
Citigroup, Inc.      
6.270%, 11/17/33        690       688
6.174%, 5/25/34        379       362
Citizens Bank N.A.
2.250%, 4/28/25 		       375       347
Corebridge Financial, Inc.
6.875%, 12/15/52 		       565       541
Discover Financial Services
6.700%, 11/29/32 		       276       267
Drawbridge Special Opportunities Fund LP 144A
3.875%, 2/15/26(3) 		       770       685
Fifth Third Bancorp
4.337%, 4/25/33 		       355       300
First American Financial Corp.
4.000%, 5/15/30 		       470       398
Global Atlantic Fin Co. 144A
7.950%, 6/15/33(3) 		       197       189
Goldman Sachs Group, Inc. (The)      
1.992%, 1/27/32        365       274
3.102%, 2/24/33        630       504
6.450%, 5/1/36        200       199
Huntington Bancshares, Inc.
2.550%, 2/4/30 		       405       320
JPMorgan Chase & Co.      
5.717%, 9/14/33        495       476
1.953%, 2/4/32      1,445     1,096
  Par Value   Value
       
Financials—continued    
Ladder Capital Finance Holdings LLLP 144A
4.250%, 2/1/27(3) 		$       235   $    206
Liberty Mutual Group, Inc. 144A
4.125%, 12/15/51(3) 		       525       432
Lincoln National Corp. (3 month LIBOR + 2.040%)
7.628%, 4/20/67(4) 		       488       323
MetLife, Inc. Series G
3.850% (5) 		       350       324
Morgan Stanley      
6.342%, 10/18/33        215       216
5.250%, 4/21/34        165       153
5.948%, 1/19/38        249       233
6.375%, 7/24/42        580       600
MSCI, Inc. 144A
3.625%, 9/1/30(3) 		       417       350
National Rural Utilities Cooperative Finance Corp. (3 month Term SOFR + 3.172%)
8.541%, 4/30/43(4) 		       319       313
Nippon Life Insurance Co. 144A
6.250%, 9/13/53(3) 		       200       198
Northern Trust Corp.      
3.375%, 5/8/32        345       304
6.125%, 11/2/32         95        94
OneMain Finance Corp.
6.875%, 3/15/25 		       285       283
Prudential Financial, Inc.      
5.125%, 3/1/52        179       154
6.750%, 3/1/53        430       416
State Street Corp.      
4.164%, 8/4/33        370       323
4.821%, 1/26/34        188       171
Synchrony Financial      
4.875%, 6/13/25         90        86
3.700%, 8/4/26        134       121
Texas Capital Bancshares, Inc.
4.000%, 5/6/31 		       560       465
Toronto-Dominion Bank (The)
8.125%, 10/31/82 		       550       547
UBS Group AG 144A
6.301%, 9/22/34(3) 		       500       488
Wells Fargo & Co.      
Series BB
3.900%(5) 		       795       694
Series U
5.875%(4)(5) 		       205       201
Zions Bancorp NA
3.250%, 10/29/29 		       405       314
       23,807
       
 
Health Care—0.9%    
AdaptHealth LLC 144A
5.125%, 3/1/30(3) 		       385       298
Amgen, Inc.      
5.250%, 3/2/33        244       233
See Notes to Financial Statements
77

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Health Care—continued    
5.650%, 3/2/53 $       187   $    175
Bausch Health Cos., Inc. 144A
5.750%, 8/15/27(3) 		       155        92
Catalent Pharma Solutions, Inc. 144A
3.500%, 4/1/30(3)(7) 		       350       288
CVS Health Corp.
5.875%, 6/1/53 		       543       502
DENTSPLY SIRONA, Inc.
3.250%, 6/1/30 		       605       506
HCA, Inc.      
5.500%, 6/1/33        315       298
5.250%, 6/15/49        415       341
Illumina, Inc.
2.550%, 3/23/31 		       370       287
IQVIA, Inc. 144A
5.700%, 5/15/28(3) 		       194       189
Par Pharmaceutical, Inc. 144A
7.500%, 4/1/27(3)(8) 		       185       131
Royalty Pharma plc      
2.150%, 9/2/31(7)        265       198
3.350%, 9/2/51        330       191
Universal Health Services, Inc.
2.650%, 1/15/32 		       685       514
Utah Acquisition Sub, Inc.
3.950%, 6/15/26 		       315       295
Viatris, Inc.      
2.300%, 6/22/27        131       113
144A 2.300%, 6/22/27(3)          1         1
Zimmer Biomet Holdings, Inc.
3.550%, 3/20/30 		       585       500
        5,152
       
 
Industrials—1.1%    
Alaska Airlines Pass-Through Trust 2020-1, A 144A
4.800%, 2/15/29(3) 		       723       693
Aviation Capital Group LLC 144A
3.500%, 11/1/27(3) 		       350       309
Avolon Holdings Funding Ltd. 144A
4.375%, 5/1/26(3) 		       420       394
BlueLinx Holdings, Inc. 144A
6.000%, 11/15/29(3) 		       505       445
Boeing Co. (The)
5.930%, 5/1/60 		       370       332
British Airways Pass-Through Trust 2021-1, A 144A
2.900%, 9/15/36(3) 		       573       475
Concentrix Corp.
6.650%, 8/2/26 		       250       248
CoStar Group, Inc. 144A
2.800%, 7/15/30(3) 		       630       508
  Par Value   Value
       
Industrials—continued    
Ferguson Finance plc 144A
4.650%, 4/20/32(3) 		$       530   $    476
Fortress Transportation & Infrastructure Investors LLC 144A
6.500%, 10/1/25(3) 		        24        24
Regal Rexnord Corp. 144A
6.400%, 4/15/33(3) 		       579       558
Science Applications International Corp. 144A
4.875%, 4/1/28(3) 		       440       399
Sempra Global 144A
3.250%, 1/15/32(3) 		       729       571
TransDigm, Inc.
5.500%, 11/15/27 		       150       140
United Airlines Pass-Through Trust 2023-1, A
5.800%, 7/15/37 		       277       269
Veralto Corp. 144A
5.450%, 9/18/33(3) 		       800       774
        6,615
       
 
Information Technology—0.6%    
Booz Allen Hamilton, Inc.      
5.950%, 8/4/33        205       200
144A 3.875%, 9/1/28(3)        285       255
144A 4.000%, 7/1/29(3)        320       282
Broadcom, Inc.
4.150%, 11/15/30 		       357       316
CDW LLC
3.569%, 12/1/31 		       494       407
Consensus Cloud Solutions, Inc. 144A
6.500%, 10/15/28(3) 		       100        85
Dell International LLC
8.100%, 7/15/36 		       454       508
Kyndryl Holdings, Inc.
2.700%, 10/15/28 		       433       356
Leidos, Inc.
2.300%, 2/15/31 		       675       519
Oracle Corp.      
6.250%, 11/9/32        195       198
5.550%, 2/6/53        247       217
3.850%, 4/1/60        140        89
        3,432
       
 
Materials—0.4%    
ArcelorMittal S.A.
6.800%, 11/29/32 		       280       278
Bayport Polymers LLC 144A
5.140%, 4/14/32(3) 		       580       501
Corp. Nacional del Cobre de Chile 144A
5.950%, 1/8/34(3) 		       400       387
FMG Resources August 2006 Pty Ltd. 144A
5.875%, 4/15/30(3) 		       380       347
Glencore Funding LLC 144A
2.850%, 4/27/31(3) 		       505       401
  Par Value   Value
       
Materials—continued    
Teck Resources Ltd.
6.125%, 10/1/35 		$       400   $    383
        2,297
       
 
Real Estate—0.7%    
EPR Properties
4.750%, 12/15/26 		       520       475
GLP Capital LP      
5.750%, 6/1/28        655       628
3.250%, 1/15/32         72        56
Kite Realty Group Trust
4.750%, 9/15/30 		       550       490
MPT Operating Partnership LP      
4.625%, 8/1/29        115        82
3.500%, 3/15/31        450       281
Ontario Teachers’ Cadillac Fairview Properties Trust 144A
2.500%, 10/15/31(3) 		       870       657
Phillips Edison Grocery Center Operating Partnership I LP
2.625%, 11/15/31 		       760       558
VICI Properties LP      
4.950%, 2/15/30        350       320
5.125%, 5/15/32        350       313
        3,860
       
 
Utilities—0.9%    
Black Hills Corp.
6.150%, 5/15/34 		       390       380
Brooklyn Union Gas Co. (The) 144A
4.866%, 8/5/32(3) 		       805       718
CMS Energy Corp.
4.750%, 6/1/50 		       480       409
Electricite de France S.A. 144A
6.900%, 5/23/53(3) 		       425       422
Enel Finance International N.V. 144A
7.500%, 10/14/32(3) 		       400       427
Entergy Texas, Inc.
5.800%, 9/1/53 		       410       392
Exelon Corp.
5.600%, 3/15/53 		       495       450
New York State Electric & Gas Corp. 144A
5.850%, 8/15/33(3) 		       320       316
NRG Energy, Inc. 144A
7.000%, 3/15/33(3) 		       433       418
Puget Energy, Inc.      
2.379%, 6/15/28        453       387
4.224%, 3/15/32        315       269
Southern Co. (The) Series 21-A
3.750%, 9/15/51 		       719       627
See Notes to Financial Statements
78

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Utilities—continued    
Vistra Corp. 144A
8.000% (3)(5) 		$       255   $     243
        5,458
       
 
Total Corporate Bonds and Notes
(Identified Cost $72,837) 		   64,777
       
 
       
 
Leveraged Loans—2.1%
Aerospace—0.2%    
Brown Group Holding LLC (1 month Term SOFR + 2.850%)
8.166%, 6/7/28(4) 		       316       312
Delta Air Lines, Inc. (3 month Term SOFR + 3.750%)
9.076%, 10/20/27(4) 		       200       207
Mileage Plus Holdings LLC (3 month Term SOFR + 5.400%)
10.798%, 6/21/27(4) 		       180       187
TransDigm, Inc. Tranche I (3 month Term SOFR + 3.250%)
8.640%, 8/24/28(4) 		       391       391
        1,097
       
 
Chemicals—0.2%    
Ineos Finance plc 2027 (1 month Term SOFR + 3.850%)
9.166%, 11/8/27(4) 		       469       467
Innophos Holdings, Inc. (1 month Term SOFR + 3.364%)
8.681%, 2/5/27(4) 		       199       198
LSF11 A5 Holdco LLC (1 month Term SOFR + 4.350%)
9.666%, 10/15/28(4) 		        80        79
Nouryon Finance B.V. (3 month LIBOR + 3.500%)
0.000%, 4/3/28(4)(9) 		        90        88
Windsor Holdings III LLC Tranche B (1 month Term SOFR + 4.500%)
9.830%, 8/1/30(4) 		       275       274
        1,106
       
 
Energy—0.1%    
Freeport LNG Investments LLP Tranche B (3 month Term SOFR + 3.762%)
9.088%, 12/21/28(4) 		       246       243
  Par Value   Value
       
Energy—continued    
Oryx Midstream Services Permian Basin LLC 2023 (1 month Term SOFR + 3.364%)
8.692%, 10/5/28(4) 		$       273   $    273
          516
       
 
Financials—0.1%    
Blackhawk Network Holdings, Inc. First Lien (3 month Term SOFR + 2.750%)
8.172%, 6/15/25(4) 		       213       212
Citadel Securities LP Tranche B (1 month Term SOFR + 2.614%)
7.931%, 7/29/30(4) 		       146       146
Finco I LLC 2023 (3 month Term SOFR + 3.000%)
8.369%, 6/27/29(4) 		        60        60
GIP Pilot Acquisition Partners LP (1 month Term SOFR + 3.500%)
0.000%, 9/18/30(4)(9) 		        60        60
GTCR W Merger Sub LLC Tranche B (3 month LIBOR + 3.250%)
0.000%, 9/20/30(4)(9) 		       120       120
          598
       
 
Food / Tobacco—0.2%    
Del Monte Foods, Inc. (1 month Term SOFR + 4.350% - 3 month PRIME + 3.250%)
9.668% - 11.750%, 5/16/29(4) 		       310       300
Froneri U.S., Inc. Tranche B-2 (1 month Term SOFR + 2.350%)
7.666%, 1/29/27(4) 		       418       414
Hostess Brands LLC Tranche B (3 month Term SOFR + 2.500%)
7.890%, 6/21/30(4) 		       353       354
        1,068
       
 
Gaming / Leisure—0.2%    
Caesars Entertainment, Inc. Tranche B (1 month Term SOFR + 3.350%)
8.666%, 2/6/30(4) 		       119       119
Carnival Corp. (1 month Term SOFR + 3.000%)
8.327%, 8/9/27(4) 		       200       199
Entain plc Tranche B-2 (3 month Term SOFR + 3.600%)
8.990%, 10/31/29(4) 		        35        35
  Par Value   Value
       
Gaming / Leisure—continued    
Ontario Gaming GTA Ltd. Partnership Tranche B (3 month Term SOFR + 4.250%)
9.640%, 8/1/30(4) 		$        65   $     65
Scientific Games International, Inc. Tranche B (1 month Term SOFR + 3.100%)
8.434%, 4/13/29(4) 		       133       133
Station Casinos LLC Tranche B-1 (1 month Term SOFR + 2.350%)
7.666%, 2/8/27(4) 		       237       237
UFC Holdings LLC Tranche B-3 (3 month Term SOFR + 3.012%)
8.369%, 4/29/26(4) 		       235       234
        1,022
       
 
Health Care—0.2%    
Agiliti Health, Inc. 2023, Tranche B (3 month Term SOFR + 3.000%)
8.247%, 5/1/30(4) 		       262       261
CHG Healthcare Services, Inc. First Lien (1 month Term SOFR + 3.364%)
8.681%, 9/29/28(4) 		       209       208
LifePoint Health, Inc. Tranche B, First Lien (3 month Term SOFR + 4.012%)
9.377%, 11/16/25(4) 		       206       206
Medline Borrower LP (1 month Term SOFR + 3.364%)
8.681%, 10/23/28(4) 		       437       435
Perrigo Investments LLC Tranche B (1 month Term SOFR + 2.350%)
7.666%, 4/20/29(4) 		       341       339
        1,449
       
 
Housing—0.1%    
SRS Distribution, Inc. 2021 (3 month LIBOR + 3.750%)
0.000%, 6/2/28(4)(9) 		       210       208
Standard Industries, Inc. (1 month Term SOFR + 2.614%)
7.938%, 9/22/28(4) 		       241       240
          448
       
 
Information Technology—0.3%    
Applied Systems, Inc. 2026 (3 month Term SOFR + 4.500%)
9.890%, 9/18/26(4) 		       387       388
See Notes to Financial Statements
79

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Par Value   Value
       
Information Technology—continued    
CCC Intelligent Solutions, Inc. Tranche B (1 month Term SOFR + 2.364%)
7.681%, 9/21/28(4) 		$       245   $    244
CDK Global, Inc. (1 month Term SOFR + 4.250%)
9.640%, 7/6/29(4) 		       413       413
Epicor Software Corp. First Lien (3 month LIBOR + 3.500%)
0.000%, 7/30/27(4)(9) 		        25        25
Open Text Corp. Tranche B (1 month Term SOFR + 2.850%)
8.166%, 1/31/30(4) 		       213       213
Sophia LP Tranche B (1 month Term SOFR + 3.600%)
8.916%, 10/7/27(4) 		       240       239
Uber Technologies, Inc. 2023 (3 month Term SOFR + 2.750%)
8.159%, 3/3/30(4) 		       363       363
UKG, Inc. 2021-2, First Lien (3 month Term SOFR + 3.350%)
8.618%, 5/4/26(4) 		       243       242
        2,127
       
 
Manufacturing—0.1%    
Alliance Laundry Systems LLC Tranche B (3 month Term SOFR + 3.600%)
8.901%, 10/8/27(4) 		       241       240
NCR Corp. (1 month Term SOFR + 2.614%)
7.931%, 8/28/26(4) 		       244       244
          484
       
 
Media / Telecom - Cable/Wireless
Video—0.1% 		   
Cogeco Communications Finance USA LP Tranche B-1 (3 month LIBOR + 3.250%)
0.000%, 9/18/30(4)(9) 		       335       329
DIRECTV Financing LLC (1 month Term SOFR + 5.000%)
10.431%, 8/2/27(4) 		       413       403
Eagle Broadband Investments LLC (3 month Term SOFR + 3.262%)
8.652%, 11/12/27(4) 		       204       199
          931
       
 
  Par Value   Value
       
Media / Telecom - Diversified
Media—0.0% 		   
Simon & Schuster, Inc. Tranche B (3 month LIBOR + 3.500%)
0.000%, 9/27/30(4)(9) 		$        30   $      30
Metals / Minerals—0.0%    
Arsenal Aic Parent LLC Tranche B (1 month Term SOFR + 4.500%)
9.879%, 8/19/30(4) 		        55        55
Service—0.2%    
AlixPartners LLP (1 month Term SOFR + 2.864%)
8.181%, 2/4/28(4) 		        60        60
BrightView Landscapes LLC Tranche B (3 month Term SOFR + 3.250%)
8.619%, 4/20/29(4) 		       267       266
NAB Holdings LLC First Lien (3 month Term SOFR + 3.150%)
8.540%, 11/23/28(4) 		       245       244
Peraton Corp. Tranche B, First Lien (1 month Term SOFR + 3.850%)
9.166%, 2/1/28(4) 		       205       205
Titan Acquisition Ltd. (3 month LIBOR + 3.000%)
8.731%, 3/28/25(4) 		       214       212
          987
       
 
Transportation - Automotive—0.0%    
Clarios Global LP 2023 (1 month Term SOFR + 3.750%)
9.066%, 5/6/30(4) 		       375       374
Utilities—0.1%    
Brookfield WEC Holdings, Inc. (1 month Term SOFR + 2.864%)
8.181%, 8/1/25(4) 		       351       350
Generation Bridge Northeast LLC Tranche B (1 month Term SOFR + 4.250%)
9.566%, 8/7/29(4) 		        95        95
          445
       
 
Total Leveraged Loans
(Identified Cost $12,687) 		   12,737
    
  Shares  
Preferred Stocks—0.2%
Financials—0.2%  
JPMorgan Chase & Co. Series HH, 4.600%        304 (10)     285
  Shares   Value
Financials—continued    
MetLife, Inc. Series D, 5.875%(7)        277 (10)   $     260
Truist Financial Corp. Series Q, 5.100%        460 (10)       393
Zions Bancorp NA, 9.561%      6,400       160
        1,098
       
 
Total Preferred Stocks
(Identified Cost $1,202) 		    1,098
       
 
       
 
Common Stocks—66.3%
Communication Services—5.8%    
Adevinta ASA(11)    199,477     1,975
Auto Trader Group plc    677,940     5,108
Baltic Classifieds Group plc  2,490,365     5,925
CTS Eventim AG & Co. KGaA     31,222     1,778
Dayamitra Telekomunikasi PT 64,540,000     2,840
Infrastrutture Wireless Italiane SpA     78,996       941
New Work SE     13,177     1,379
Rightmove plc    660,295     4,529
Trade Desk, Inc. (The) Class A(11)    128,557    10,047
       34,522
       
 
Consumer Discretionary—11.3%    
Airbnb, Inc. Class A(11)     46,652     6,401
Allegro.eu S.A.(11)    376,682     2,779
Amazon.com, Inc.(11)    123,949    15,756
AutoZone, Inc.(11)      1,964     4,989
Home Depot, Inc. (The)     17,777     5,371
Marriott International, Inc. Class A     44,220     8,692
Max Stock Ltd.    486,865       915
MercadoLibre, Inc.(11)      4,157     5,271
Mercari, Inc.(11)     90,100     1,945
NIKE, Inc. Class B     76,802     7,344
Ross Stores, Inc.     49,774     5,622
Victorian Plumbing Group plc  1,405,019     1,509
       66,594
       
 
Consumer Staples—3.5%    
Anhui Gujing Distillery Co., Ltd. Class B     82,400     1,378
Estee Lauder Cos., Inc. (The) Class A     22,669     3,277
Heineken Malaysia Bhd    541,900     2,807
McCormick & Co., Inc. Non-voting Shares     56,123     4,245
Monster Beverage Corp.(11)    123,865     6,559
PepsiCo, Inc.     14,461     2,450
       20,716
       
 
Energy—2.2%    
Devon Energy Corp.     36,450     1,739
See Notes to Financial Statements
80

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
  Shares   Value
       
Energy—continued    
Hess Corp.     22,710   $  3,474
Pason Systems, Inc.    128,648     1,277
Pioneer Natural Resources Co.     15,195     3,488
Schlumberger N.V.     48,086     2,803
       12,781
       
 
Financials—8.2%    
AJ Bell plc    851,302     2,850
Bank of America Corp.     93,883     2,571
Block, Inc. Class A(11)     67,417     2,984
FinecoBank Banca Fineco SpA    214,248     2,608
Gruppo MutuiOnline SpA     95,662     2,523
Hypoport SE(11)     10,021     1,359
Mortgage Advice Bureau Holdings Ltd.    321,863     2,105
Nordnet AB publ     66,366       877
Progressive Corp. (The)     50,510     7,036
S&P Global, Inc.     12,261     4,480
Visa, Inc. Class A     81,079    18,649
VNV Global AB(11)    169,419       259
       48,301
       
 
Health Care—5.9%    
Danaher Corp.     27,114     6,727
Eli Lilly & Co.     14,000     7,520
Haw Par Corp., Ltd.    547,500     3,945
IDEXX Laboratories, Inc.(11)      6,763     2,957
Mettler-Toledo International, Inc.(11)      2,261     2,505
Nakanishi, Inc.     21,100       494
Zoetis, Inc. Class A     60,892    10,594
       34,742
       
 
Industrials—10.1%    
Benefit One, Inc.    244,800     1,772
CAE, Inc.(11)    117,106     2,734
CoStar Group, Inc.(11)     96,015     7,383
Enento Group Oyj(11)     65,677     1,472
Equifax, Inc.     24,179     4,429
Fair Isaac Corp.(11)     10,207     8,865
Haitian International Holdings Ltd.  1,034,337     2,193
Howden Joinery Group plc    322,870     2,901
Knorr-Bremse AG     44,447     2,828
MEITEC Group Holdings, Inc.    145,600     2,635
MTU Aero Engines AG     13,411     2,435
Paycom Software, Inc.     38,957    10,100
S-1 Corp.     67,673     2,838
Uber Technologies, Inc.(11)    161,212     7,414
       59,999
       
 
Information Technology—17.3%    
Accenture plc Class A     22,617     6,946
Alten S.A.     18,024     2,374
Amphenol Corp. Class A    139,972    11,756
BILL Holdings, Inc.(11)     57,833     6,279
  Shares   Value
       
Information Technology—continued    
Bouvet ASA    424,107   $   2,248
Brockhaus Technologies AG(11)     47,088     1,070
Cadence Design Systems, Inc.(11)     13,852     3,246
FDM Group Holdings plc    436,415     2,769
Gartner, Inc.(11)      9,076     3,119
MongoDB, Inc. Class A(11)     21,839     7,553
NVIDIA Corp.     70,161    30,519
Roper Technologies, Inc.     15,648     7,578
Shopify, Inc. Class A(11)     49,134     2,681
Snowflake, Inc. Class A(11)     34,068     5,205
Workday, Inc. Class A(11)     40,186     8,634
      101,977
       
 
Materials—1.4%    
Corp. Moctezuma SAB de C.V.    721,710     2,779
Ecolab, Inc.     31,489     5,334
        8,113
       
 
Real Estate—0.6%    
Prologis, Inc.     31,144     3,495
Total Common Stocks
(Identified Cost $262,892) 		  391,240
       
 
       
 
Total Long-Term Investments—98.9%
(Identified Cost $484,816) 		  584,209
       
 
       
 
Securities Lending Collateral—0.2%
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 5.222%)(12)(13)  1,044,530     1,045
Total Securities Lending Collateral
(Identified Cost $1,045) 		    1,045
       
 
       
 
TOTAL INVESTMENTS—99.1%
(Identified Cost $485,861) 		  $585,254
Other assets and liabilities, net—0.9%     5,109
NET ASSETS—100.0%   $590,363
    
Abbreviations:
ABS Asset-Backed Securities
BAM Build America Municipal Insured
LIBOR London Interbank Offered Rate
LLC Limited Liability Company
LLLP Limited Liability Limited Partnership
LLP Limited Liability Partnership
LP Limited Partnership
MSCI Morgan Stanley Capital International
NA National Association
S&P Standard & Poor’s
SOFR Secured Overnight Financing Rate
    
Footnote Legend:
(1) Security in default; no interest payments are being received.
(2) Regulation S security. Security is offered and sold outside of the United States; therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.
(3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2023, these securities amounted to a value of $86,671 or 14.7% of net assets.
(4) Variable rate security. Rate disclosed is as of September 30, 2023. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.
(5) No contractual maturity date.
(6) Issued with a zero coupon. Income is recognized through the accretion of discount.
(7) All or a portion of security is on loan.
(8) Security in default; interest payments are being received.
(9) This loan will settle after September 30, 2023, at which time the interest rate, calculated on the base lending rate and the agreed upon spread on trade date, will be reflected.
(10) Value shown as par value.
(11) Non-income producing.
(12) Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.
(13) Represents security purchased with cash collateral received for securities on loan.
    
Country Weightings (Unaudited)†
United States 81%
United Kingdom 5
Germany 2
Canada 1
Japan 1
Italy 1
Brazil 1
Other 8
Total 100%
† % of total investments as of September 30, 2023.
For information regarding the abbreviations, see the Key Investment Terms starting on page 6.
See Notes to Financial Statements
81

Tactical Allocation Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2023
($ reported in thousands)
The following table summarizes the value of the Fund’s investments as of September 30, 2023, based on the inputs used to value them (See Security Valuation Note 2A in the Notes to Financial Statements):
  Total
Value at
September 30, 2023 		  Level 1
Quoted Prices 		  Level 2
Significant
Observable
Inputs
Assets:          
Debt Instruments:          
Asset-Backed Securities $ 23,917   $ —   $ 23,917
Corporate Bonds and Notes 64,777   —   64,777
Foreign Government Securities 2,199   —   2,199
Leveraged Loans 12,737   —   12,737
Mortgage-Backed Securities 56,654   —   56,654
Municipal Bonds 7,213   —   7,213
U.S. Government Securities 24,374   —   24,374
Equity Securities:          
Common Stocks 391,240   391,240   —
Preferred Stocks 1,098   160   938
Securities Lending Collateral 1,045   1,045   —
Total Investments $585,254   $392,445   $192,809
Securities held by the Fund with an end of period value of $973 were transferred from Level 3 to Level 2 due to an increase in trading activities at period end.
There were no securities valued using significant unobservable inputs (Level 3) at September 30, 2023.
See Notes to Financial Statements
82

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund
Assets              
Investment in securities at value(1)(2)
 $ 514,647   $ 124,715   $ 31,044   $ 1,801,007
Cash
4,046   1,930   293   55,633
Receivables              
Investment securities sold
—   —   641   —
Fund shares sold
3   1   —   7,139
Dividends
 143   169   123   1,225
Tax reclaims
—   129   82   —
Securities lending income
 —   3   2   —
Prepaid Trustees’ retainer
 11   3   1   35
Prepaid expenses
29   27   19   100
Other assets
69   16   4   239
Total assets
 518,948   126,993   32,209   1,865,378
Liabilities              
Due to custodian
 —   —   1   —
Payables              
Fund shares repurchased
592   5   — (a)   1,939
Investment securities purchased
—   —   310   —
Collateral on securities loaned
 —   5,285   698   —
Investment advisory fees
311   59   8   1,084
Distribution and service fees
106   24   5   77
Administration and accounting fees
 46   11   3   160
Transfer agent and sub-transfer agent fees and expenses
 96   27   9   307
Professional fees
29   22   28   38
Trustee deferred compensation plan
69   16   4   239
Interest expense and/or commitment fees
 1   — (a)   — (a)   3
Other accrued expenses
 50   20   6   58
Total liabilities
 1,300   5,469   1,072   3,905
Net Assets
 $ 517,648   $ 121,524   $ 31,137   $ 1,861,473
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 218,191   $ 114,765   $ 30,727   $ 1,496,955
Accumulated earnings (loss)
 299,457   6,759   410   364,518
Net Assets
 $ 517,648   $ 121,524   $ 31,137   $ 1,861,473
Net Assets:              
Class A
 $ 483,990   $ 101,277   $ 21,314   $ 111,714
Class C
 $ 2,136   $ 3,350   $ 490   $ 64,053
Class I
 $ 29,960   $ 14,965   $ 7,143   $ 1,639,765
Class R6
 $ 1,562   $ 1,932   $ 2,190   $ 45,941
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 28,616,974   5,583,153   1,554,837   2,214,123
Class C
 203,803   220,425   36,934   1,411,473
Class I
 1,669,039   830,685   521,594   31,554,910
Class R6
 85,182   107,448   158,823   879,854
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 16.91   $ 18.14   $ 13.71   $ 50.46
Class C
 $ 10.48   $ 15.20   $ 13.28   $ 45.38
Class I
 $ 17.95   $ 18.02   $ 13.69   $ 51.97
Class R6
 $ 18.34   $ 17.98   $ 13.79   $ 52.21
See Notes to Financial Statements
83

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 17.89   $ 19.20   $ 14.51   $ 53.40
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 241,451   $ 120,406   $ 30,391   $ 1,474,300
(2) Market value of securities on loan
 $ —   $ 5,156   $ 690   $ —
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
84

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Mid-Cap
Growth Fund 		  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund
Assets              
Investment in unaffiliated securities at value(1)(2)
 $ 1,473,571   $ 1,721,864   $ 1,994,195   $ 701,207
Investment in affiliated securities at value(3)
 —   —   1,215,675   —
Foreign currency at value(4)
 —   —   — (a)   —
Cash
16,641   19,044   108,446   19,643
Receivables              
Investment securities sold
—   3,953   —   254
Fund shares sold
1,459   1,004   1,604   606
Dividends
 247   763   2,435   529
Securities lending income
 —   — (a)   — (a)   —
Prepaid Trustees’ retainer
 30   35   66   15
Prepaid expenses
37   47   38   41
Other assets
197   226   431   95
Total assets
 1,492,182   1,746,936   3,322,890   722,390
Liabilities              
Payables              
Fund shares repurchased
1,330   1,025   3,083   353
Investment securities purchased
—   2,496   1,473   —
Collateral on securities loaned
 —   —   875   —
Investment advisory fees
932   1,100   2,295   429
Distribution and service fees
111   81   204   29
Administration and accounting fees
 131   150   285   62
Transfer agent and sub-transfer agent fees and expenses
 312   266   707   272
Professional fees
40   40   58   34
Trustee deferred compensation plan
197   226   431   95
Interest expense and/or commitment fees
 3   3   7   2
Other accrued expenses
 73   61   129   29
Total liabilities
 3,129   5,448   9,547   1,305
Net Assets
 $ 1,489,053   $ 1,741,488   $ 3,313,343   $ 721,085
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 1,155,624   $ 959,401   $ 2,190,264   $ 476,017
Accumulated earnings (loss)
 333,429   782,087   1,123,079   245,068
Net Assets
 $ 1,489,053   $ 1,741,488   $ 3,313,343   $ 721,085
Net Assets:              
Class A
 $ 302,747   $ 146,983   $ 416,428   $ 88,472
Class C
 $ 54,318   $ 59,235   $ 136,793   $ 12,289
Class I
 $ 1,041,379   $ 1,146,747   $ 2,534,160   $ 572,969
Class R6
 $ 90,609   $ 388,523   $ 225,962   $ 47,355
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 6,028,863   3,366,681   13,205,475   4,070,445
Class C
 1,429,921   1,816,753   5,370,592   588,688
Class I
 19,861,444   24,206,207   76,697,375   26,281,978
Class R6
 1,708,930   8,159,249   6,788,515   2,161,160
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 50.22   $ 43.66   $ 31.53   $ 21.74
Class C
 $ 37.99   $ 32.61   $ 25.47   $ 20.88
Class I
 $ 52.43   $ 47.37   $ 33.04   $ 21.80
Class R6
 $ 53.02   $ 47.62   $ 33.29   $ 21.91
See Notes to Financial Statements
85

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Mid-Cap
Growth Fund 		  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 53.14   $ 46.20   $ 33.37   $ 23.01
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in unaffiliated securities at cost
 $ 981,924   $ 1,016,476   $ 1,310,567   $ 472,872
(2) Market value of securities on loan
 $ —   $ —   $ 851   $ —
(3) Investment in affiliated securities at cost
 $ —   $ —   $ 925,858   $ —
(4) Foreign currency at cost
 $ —   $ —   $ —(a)   $ —
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
86

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund 		  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
Assets              
Investment in securities at value(1)
 $ 1,287,770   $ 8,986   $ 5,718   $ 4,632
Cash
40,586   301   50   34
Receivables              
Fund shares sold
7,627   1   —   — (a)
Dividends
 555   4   5   2
Receivable from adviser
 —   4   5   8
Tax reclaims
—   —   —   — (a)
Prepaid Trustees’ retainer
 25   — (a)   — (a)   — (a)
Prepaid expenses
54   8   13   11
Other assets
171   1   1   1
Total assets
 1,336,788   9,305   5,792   4,688
Liabilities              
Payables              
Fund shares repurchased
1,568   10   —   —
Investment securities purchased
—   —   7   —
Foreign capital gains tax
 —   —   —   3
Investment advisory fees
815   —   —   —
Distribution and service fees
41   1   — (a)   — (a)
Administration and accounting fees
 114   1   1   1
Transfer agent and sub-transfer agent fees and expenses
 235   1   — (a)   — (a)
Professional fees
35   26   25   39
Trustee deferred compensation plan
171   1   1   1
Interest expense and/or commitment fees
 2   — (a)   — (a)   — (a)
Other accrued expenses
 43   1   1   1
Total liabilities
 3,024   41   35   45
Net Assets
 $ 1,333,764   $ 9,264   $ 5,757   $ 4,643
Net Assets Consist of:              
Capital paid in on shares of beneficial interest
 $ 1,267,162   $ 9,918   $ 6,267   $ 5,036
Accumulated earnings (loss)
 66,602   (654)   (510)   (393)
Net Assets
 $ 1,333,764   $ 9,264   $ 5,757   $ 4,643
Net Assets:              
Class A
 $ 52,713   $ 3,321   $ 1,207   $ 157
Class C
 $ 35,836   $ 101   $ 87   $ 139
Class I
 $ 1,178,304   $ 2,715   $ 1,150   $ 219
Class R6
 $ 66,911   $ 3,127   $ 3,313   $ 4,128
Shares Outstanding (unlimited number of shares authorized, no par value):              
Class A
 3,196,413   364,936   142,167   17,002
Class C
 2,266,301   11,361   10,361   15,581
Class I
 70,494,756   296,145   134,916   23,446
Class R6
 3,988,490   340,690   387,002   438,114
Net Asset Value and Redemption Price Per Share:*              
Class A
 $ 16.49   $ 9.10   $ 8.49   $ 9.24
Class C
 $ 15.81   $ 8.91   $ 8.42   $ 8.93
Class I
 $ 16.71   $ 9.17   $ 8.52   $ 9.35
Class R6
 $ 16.78   $ 9.18   $ 8.56   $ 9.42
See Notes to Financial Statements
87

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund 		  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):              
Class A
 $ 17.45   $ 9.63   $ 8.98   $ 9.78
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 1,212,137   $ 8,933   $ 6,162   $ 4,561
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
88

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  SGA Global Growth Fund   SGA New Leaders Growth Fund   Tactical
Allocation Fund
Assets          
Investment in securities at value(1)(2)
 $ 110,406   $ 7,002   $ 585,254
Foreign currency at value(3)
 —   —   10
Cash
401   37   5,169
Receivables          
Investment securities sold
—   —   1,099
Fund shares sold
77   —   29
Dividends and interest
 28   3   1,737
Receivable from adviser
 —   3   —
Tax reclaims
66   —   125
Securities lending income
 —   —   1
Prepaid Trustees’ retainer
 2   — (a)   12
Prepaid expenses
26   15   29
Other assets
15   1   77
Total assets
 111,021   7,061   593,542
Liabilities          
Payables          
Fund shares repurchased
2   —   193
Investment securities purchased
—   —   1,210
Collateral on securities loaned
 —   —   1,045
Dividend distributions
—   —   1
Investment advisory fees
56   —   264
Distribution and service fees
8   — (a)   126
Administration and accounting fees
 10   1   52
Transfer agent and sub-transfer agent fees and expenses
 14   1   109
Professional fees
31   34   36
Trustee deferred compensation plan
15   1   77
Interest expense and/or commitment fees
 — (a)   — (a)   1
Other accrued expenses
 10   1   65
Total liabilities
 146   38   3,179
Net Assets
 $ 110,875   $ 7,023   $ 590,363
Net Assets Consist of:          
Capital paid in on shares of beneficial interest
 $ 92,158   $ 9,048   $ 510,938
Accumulated earnings (loss)
 18,717   (2,025)   79,425
Net Assets
 $ 110,875   $ 7,023   $ 590,363
Net Assets:          
Class A
 $ 22,363   $ 84   $ 557,103
Class C
 $ 3,726   $ 70   $ 9,183
Class I
 $ 24,356   $ 75   $ 22,540
Class R6
 $ 60,430   $ 6,794   $ 1,537
Shares Outstanding (unlimited number of shares authorized, no par value):          
Class A
 949,885   11,784   58,472,374
Class C
 172,980   10,000   941,932
Class I
 1,021,205   10,500   2,372,458
Class R6
 2,441,609   939,151   162,037
Net Asset Value and Redemption Price Per Share:*          
Class A
 $ 23.54   $ 7.14   $ 9.53
Class C
 $ 21.54   $ 6.99   $ 9.75
Class I
 $ 23.85   $ 7.19   $ 9.50
Class R6
 $ 24.75   $ 7.23   $ 9.49
See Notes to Financial Statements
89

VIRTUS EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
September 30, 2023
(Reported in thousands except shares and per share amounts)
  SGA Global Growth Fund   SGA New Leaders Growth Fund   Tactical
Allocation Fund
Maximum Offering Price Per Share (NAV/(1-Maximum Sales Charge)):          
Class A
 $ 24.91   $ 7.56   $ 10.08
Maximum Sales Charge - Class A
 5.50%   5.50%   5.50%
(1) Investment in securities at cost
 $ 88,079   $ 7,308   $ 485,861
(2) Market value of securities on loan
 $ —   $ —   $ 1,010
(3) Foreign currency at cost
 $ —   $ —   $ 10
    
(a) Amount is less than $500 (not in thousands).
* Net Asset Value and Redemption Price Per Share are calculated using unrounded net assets.
See Notes to Financial Statements
90

VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS YEAR ENDED September 30, 2023
($ reported in thousands)
  KAR Capital
Growth Fund 		  KAR Equity
Income Fund 		  KAR Global Quality
Dividend Fund 		  KAR Mid-Cap
Core Fund 		  KAR Mid-Cap
Growth Fund
Investment Income                  
Dividends
$ 3,910   $5,728   $1,723   $ 17,123   $ 10,019
Securities lending, net of fees
 —   49   13   —   —
Foreign taxes withheld
—   (120)   (113)   —   —
Total investment income
 3,910   5,657   1,623   17,123   10,019
Expenses                  
Investment advisory fees
 3,575   1,085   274   12,199   11,555
Distribution and service fees, Class A
 1,192   280   58   243   780
Distribution and service fees, Class C
 24   41   7   610   583
Administration and accounting fees
 527   155   45   1,595   1,613
Transfer agent fees and expenses
 352   88   27   665   709
Sub-transfer agent fees and expenses, Class A
 163   64   15   90   254
Sub-transfer agent fees and expenses, Class C
 2   3   1   61   69
Sub-transfer agent fees and expenses, Class I
 26   22   12   1,306   1,333
Custodian fees
1   1   1   2   3
Printing fees and expenses
38   13   5   118   43
Professional fees
57   9   29   190   25
Interest expense and/or commitment fees
 3   2   — (1)   16   11
Registration fees
51   58   44   191   119
Trustees’ fees and expenses
39   11   3   112   125
Miscellaneous expenses
 136   52   21   69   121
Total expenses
 6,186   1,884   542   17,467   17,343
Less net expenses reimbursed and/or waived by investment adviser(2)
 (3)   (201)   (80)   (1,673)   (80)
Less low balance account fees
(13)   (1)   (1)   — (1)   (2)
Net expenses
 6,170   1,682   461   15,794   17,261
Net investment income (loss)
 (2,260)   3,975   1,162   1,329   (7,242)
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 31,754   (272)   (78)   54,396   (116,546)
Foreign currency transactions
 —   (1)   (1)   —   —
Net change in unrealized appreciation (depreciation) on:                  
Investments
 75,440   4,906   2,328   205,023   354,423
Foreign currency transactions
 —   —   9   —   —
Net realized and unrealized gain (loss) on investments
 107,194   4,633   2,258   259,419   237,877
Net increase (decrease) in net assets resulting from operations
 $104,934   $8,608   $3,420   $260,748   $ 230,635
    
(1) Amount is less than $500 (not in thousands).
(2) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
91

VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS (Continued)
YEAR ENDED September 30, 2023
($ reported in thousands)
  KAR Small-Cap
Core Fund 		  KAR Small-Cap
Growth Fund 		  KAR Small-Cap
Value Fund 		  KAR Small-Mid
Cap Core Fund 		  KAR Small-Mid
Cap Growth Fund
Investment Income                  
Dividends
$ 25,125   $ 17,471   $14,938   $ 11,323   $ 49
Dividends from affiliated
—   7,891   —   —   —
Securities lending, net of fees
 — (1)   64   —   —   — (1)
Total investment income
 25,125   25,426   14,938   11,323   49
Expenses                  
Investment advisory fees
 12,784   28,444   5,936   8,658   57
Distribution and service fees, Class A
 346   1,089   231   106   6
Distribution and service fees, Class C
 622   1,526   138   328   1
Administration and accounting fees
 1,741   3,534   869   1,193   15
Transfer agent fees and expenses
 734   1,492   383   498   4
Sub-transfer agent fees and expenses, Class A
 133   499   58   36   3
Sub-transfer agent fees and expenses, Class C
 44   136   12   37   — (1)
Sub-transfer agent fees and expenses, Class I
 913   2,690   707   1,012   3
Custodian fees
2   5   1   2   — (1)
Printing fees and expenses
109   264   68   87   3
Professional fees
60   —   —   —   23
Interest expense and/or commitment fees
 13   110   34   11   — (1)
Registration fees
71   107   103   134   33
Trustees’ fees and expenses
128   277   70   85   1
Miscellaneous expenses
 74   30   39   43   5
Total expenses
 17,774   40,203   8,649   12,230   154
Less net expenses reimbursed and/or waived by investment adviser(2)
 —   —   —   —   (69)
Less low balance account fees
—   (1)   (1)   — (1)   —
Plus net expenses recaptured
 —   —   —   6   —
Net expenses
 17,774   40,202   8,648   12,236   85
Net investment income (loss)
 7,351   (14,776)   6,290   (913)   (36)
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 69,617   214,324   22,396   2,344   (186)
Affiliated Investments
 —   1,105   —   —   —
Foreign currency transactions
 24   88   —   —   — (1)
Net change in unrealized appreciation (depreciation) on:                  
Investments
 291,532   51,917   65,085   205,404   1,096
Affiliated investments
 —   243,367   —   —   —
Foreign currency transactions
 (11)   (32)   —   —   —
Net realized and unrealized gain (loss) on investments
 361,162   510,769   87,481   207,748   910
Net increase (decrease) in net assets resulting from operations
 $368,513   $495,993   $93,771   $206,835   $ 874
    
(1) Amount is less than $500 (not in thousands).
(2) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
92

VIRTUS EQUITY TRUST
STATEMENTS OF OPERATIONS (Continued)
YEAR ENDED September 30, 2023
($ reported in thousands)
  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund   SGA Global Growth Fund   SGA New Leaders Growth Fund   Tactical
Allocation Fund
Investment Income                  
Dividends
$ 92   $ 94   $ 985   $ 54   $ 5,036
Interest
—   —   —   —   8,889
Securities lending, net of fees
 —   — (1)   1   1   5
Foreign taxes withheld
—   (8)   (41)   (1)   (238)
Total investment income
 92   86   945   54   13,692
Expenses                  
Investment advisory fees
 35   49   893   52   3,345
Distribution and service fees, Class A
 3   — (1)   53   — (1)   1,432
Distribution and service fees, Class C
 1   2   38   1   106
Administration and accounting fees
 13   13   120   14   626
Transfer agent fees and expenses
 3   2   50   3   360
Sub-transfer agent fees and expenses, Class A
 — (1)   — (1)   30   — (1)   253
Sub-transfer agent fees and expenses, Class C
 —   — (1)   4   —   9
Sub-transfer agent fees and expenses, Class I
 1   — (1)   32   —   24
Excise tax
 — (1)   —   —   —   —
Custodian fees
— (1)   1   1   — (1)   12
Printing fees and expenses
2   2   20   2   45
Professional fees
19   35   26   28   68
Interest expense and/or commitment fees
 — (1)   — (1)   2   — (1)   4
Registration fees
27   28   48   29   66
Trustees’ fees and expenses
— (1)   — (1)   9   1   47
Miscellaneous expenses
 4   11   21   7   163
Total expenses
 108   143   1,347   137   6,560
Less net expenses reimbursed and/or waived by investment adviser(2)
 (58)   (89)   (157)   (77)   (511)
Less low balance account fees
—   —   — (1)   —   (9)
Net expenses
 50   54   1,190   60   6,040
Net investment income (loss)
 42   32   (245)   (6)   7,652
Net Realized and Unrealized Gain (Loss) on Investments                  
Net realized gain (loss) from:                  
Investments
 (71)   (168)   (2,573)   (741)   6,268
Foreign currency transactions
 —   (1)   3   — (1)   (14)
Foreign capital gains tax
 —   —   —   — (1)   — (1)
Net change in unrealized appreciation (depreciation) on:                  
Investments
 433   603   26,498   1,497   74,495
Foreign currency transactions
 —   — (1)   5   — (1)   6
Foreign capital gains tax
 —   — (1)   —   —   —
Net realized and unrealized gain (loss) on investments
 362   434   23,933   756   80,755
Net increase (decrease) in net assets resulting from operations
 $404   $ 466   $23,688   $ 750   $88,407
    
(1) Amount is less than $500 (not in thousands).
(2) See Note 3D in Notes to Financial Statements.
See Notes to Financial Statements
93

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
($ reported in thousands)
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (2,260)   $ (4,080)   $ 3,975   $ 3,225
Net realized gain (loss)
31,754   86,995   (273)   4,994
Net change in unrealized appreciation (depreciation)
75,440   (364,704)   4,906   (18,112)
Increase (decrease) in net assets resulting from operations
 104,934   (281,789)   8,608   (9,893)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (83,782)   (53,757)   (6,421)   (5,143)
Class C
 (677)   (820)   (295)   (140)
Class I
 (5,506)   (4,151)   (2,170)   (497)
Class R6
 (235)   (122)   (124)   (70)
Total dividends and distributions to shareholders
 (90,200)   (58,850)   (9,010)   (5,850)
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 34,112   11,694   (2,168)   (6,082)
Class C
 (581)   (3,130)   100   (523)
Class I
 (1,683)   (4,688)   (11,420)   16,933
Class R6
 245   1,244   302   725
Increase (decrease) in net assets from capital transactions
 32,093   5,120   (13,186)   11,053
Net increase (decrease) in net assets
 46,827   (335,519)   (13,588)   (4,690)
Net Assets              
Beginning of period
 470,821   806,340   135,112   139,802
End of Period
 $ 517,648   $ 470,821   $ 121,524   $ 135,112
See Notes to Financial Statements
94

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Global Quality Dividend Fund   KAR Mid-Cap Core Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ 1,162   $ 1,066   $ 1,329   $ (3,352)
Net realized gain (loss)
(79)   1,880   54,396   (11,459)
Net change in unrealized appreciation (depreciation)
2,337   (6,901)   205,023   (315,507)
Increase (decrease) in net assets resulting from operations
 3,420   (3,955)   260,748   (330,318)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (659)   (510)   (203)   (1,497)
Class C
 (16)   (8)   (152)   (1,267)
Class I
 (349)   (404)   (2,750)   (21,030)
Class R6
 (80)   (53)   (65)   (951)
Total dividends and distributions to shareholders
 (1,104)   (975)   (3,170)   (24,745)
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 (1,375)   534   23,417   5,309
Class C
 (389)   (8)   853   1,691
Class I
 (4,479)   697   348,618   185,127
Class R6
 (112)   517   11,985   (15,752)
Increase (decrease) in net assets from capital transactions
 (6,355)   1,740   384,873   176,375
Net increase (decrease) in net assets
 (4,039)   (3,190)   642,451   (178,688)
Net Assets              
Beginning of period
 35,176   38,366   1,219,022   1,397,710
End of Period
 $ 31,137   $ 35,176   $ 1,861,473   $ 1,219,022
See Notes to Financial Statements
95

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Mid-Cap Growth Fund   KAR Small-Cap Core Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (7,242)   $ (14,029)   $ 7,351   $ 3,870
Net realized gain (loss)
(116,546)   (35,480)   69,641   118,115
Net increase from payment by affiliate
 —   19   —   —
Net change in unrealized appreciation (depreciation)
354,423   (1,147,252)   291,521   (321,839)
Increase (decrease) in net assets resulting from operations
 230,635   (1,196,742)   368,513   (199,854)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 —   (8,185)   (8,378)   (17,080)
Class C
 —   (2,544)   (5,066)   (12,382)
Class I
 —   (34,824)   (66,439)   (145,908)
Class R6
 —   (2,968)   (21,597)   (48,590)
Total dividends and distributions to shareholders
 —   (48,521)   (101,480)   (223,960)
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 (43,202)   (64,827)   8,804   9,432
Class C
 (13,055)   (34,319)   (7,998)   (4,941)
Class I
 (257,025)   (465,049)   (39,730)   10,150
Class R6
 (12,494)   (36,166)   8,776   (12,387)
Increase (decrease) in net assets from capital transactions
 (325,776)   (600,361)   (30,148)   2,254
Net increase (decrease) in net assets
 (95,141)   (1,845,624)   236,885   (421,560)
Net Assets              
Beginning of period
 1,584,194   3,429,818   1,504,603   1,926,163
End of Period
 $ 1,489,053   $ 1,584,194   $ 1,741,488   $ 1,504,603
See Notes to Financial Statements
96

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Cap Growth Fund   KAR Small-Cap Value Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (14,776)   $ (35,123)   $ 6,290   $ 4,816
Net realized gain (loss)
215,517   509,865   22,396   14,056
Net change in unrealized appreciation (depreciation)
295,252   (2,271,252)   65,085   (329,741)
Increase (decrease) in net assets resulting from operations
 495,993   (1,796,510)   93,771   (310,869)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (64,943)   (100,063)   (2,821)   (2,287)
Class C
 (27,720)   (45,933)   (379)   (355)
Class I
 (375,773)   (655,027)   (24,275)   (21,896)
Class R6
 (29,364)   (25,977)   (1,025)   (1,622)
Total dividends and distributions to shareholders
 (497,800)   (827,000)   (28,500)   (26,160)
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 (11,751)   (43,224)   (8,026)   (8,687)
Class C
 (19,703)   (22,917)   (2,087)   (3,114)
Class I
 (253,220)   (483,610)   (238,487)   (151,561)
Class R6
 84,995   23,078   10,280   (30,485)
Increase (decrease) in net assets from capital transactions
 (199,679)   (526,673)   (238,320)   (193,847)
Net increase (decrease) in net assets
 (201,486)   (3,150,183)   (173,049)   (530,876)
Net Assets              
Beginning of period
 3,514,829   6,665,012   894,134   1,425,010
End of Period
 $ 3,313,343   $ 3,514,829   $ 721,085   $ 894,134
See Notes to Financial Statements
97

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Mid Cap Core Fund   KAR Small-Mid Cap Growth Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (913)   $ (4,268)   $ (36)   $ (46)
Net realized gain (loss)
2,344   (9,991)   (186)   (453)
Net change in unrealized appreciation (depreciation)
205,404   (356,103)   1,096   (1,430)
Increase (decrease) in net assets resulting from operations
 206,835   (370,362)   874   (1,929)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 —   (599)   —   —
Class C
 —   (408)   —   —
Class I
 —   (14,991)   —   —
Class R6
 —   (222)   —   —
Total dividends and distributions to shareholders
 —   (16,220)   —   —
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 11,541   (222)   2,772   (107)
Class C
 4,168   5,969   (13)   18
Class I
 109,220   65,718   515   692
Class R6
 49,954   3,622   (21)   380
Increase (decrease) in net assets from capital transactions
 174,883   75,087   3,253   983
Net increase (decrease) in net assets
 381,718   (311,495)   4,127   (946)
Net Assets              
Beginning of period
 952,046   1,263,541   5,137   6,083
End of Period
 $ 1,333,764   $ 952,046   $ 9,264   $ 5,137
See Notes to Financial Statements
98

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ 42   $ 20   $ 32   $ 8
Net realized gain (loss)
(71)   (30)   (169)   (313)
Net change in unrealized appreciation (depreciation)
433   (768)   603   (1,477)
Increase (decrease) in net assets resulting from operations
 404   (778)   466   (1,782)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (7)   (—) (1)   —   (14)
Class C
 —   —   —   (11)
Class I
 (2)   (1)   —   (27)
Class R6
 (9)   (10)   —   (368)
Total dividends and distributions to shareholders
 (18)   (11)   —   (420)
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 437   643   8   1
Class C
 — (1)   1   48   (14)
Class I
 710   399   (39)   (47)
Class R6
 314   729   (137)   364
Increase (decrease) in net assets from capital transactions
 1,461   1,772   (120)   304
Net increase (decrease) in net assets
 1,847   983   346   (1,898)
Net Assets              
Beginning of period
 3,910   2,927   4,297   6,195
End of Period
 $ 5,757   $ 3,910   $ 4,643   $ 4,297
    
(1) Amount is less than $500 (not in thousands).
See Notes to Financial Statements
99

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  SGA Global Growth Fund   SGA New Leaders Growth Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022 		  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations              
Net investment income (loss)
$ (245)   $ (643)   $ (6)   $ (33)
Net realized gain (loss)
(2,570)   3,988   (741)   (809)
Net change in unrealized appreciation (depreciation)
26,503   (56,748)   1,497   (2,361)
Increase (decrease) in net assets resulting from operations
 23,688   (53,403)   750   (3,203)
Dividends and Distributions to Shareholders              
Net Investment Income and Net Realized Gains:              
Class A
 (503)   (2,276)   —   —
Class C
 (104)   (518)   —   —
Class I
 (643)   (3,434)   —   —
Class R6
 (1,405)   (5,122)   —   —
Total dividends and distributions to shareholders
 (2,655)   (11,350)   —   —
Change in Net Assets from Capital Transactions (See Note 5):              
Class A
 134   (3,902)   4   10
Class C
 (727)   (934)   —   (2)
Class I
 (13,899)   (1,068)   (37)   —
Class R6
 (5,388)   4,695   542   2,311
Increase (decrease) in net assets from capital transactions
 (19,880)   (1,209)   509   2,319
Net increase (decrease) in net assets
 1,153   (65,962)   1,259   (884)
Net Assets              
Beginning of period
 109,722   175,684   5,764   6,648
End of Period
 $ 110,875   $ 109,722   $ 7,023   $ 5,764
See Notes to Financial Statements
100

VIRTUS EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
($ reported in thousands)
  Tactical Allocation Fund
  Year Ended
September 30,
2023 		  Year Ended
September 30,
2022
Increase (Decrease) in Net Assets Resulting from Operations      
Net investment income (loss)
$ 7,652   $ 4,598
Net realized gain (loss)
6,254   38,422
Net change in unrealized appreciation (depreciation)
74,501   (318,832)
Increase (decrease) in net assets resulting from operations
 88,407   (275,812)
Dividends and Distributions to Shareholders      
Net Investment Income and Net Realized Gains:      
Class A
 (41,415)   (60,102)
Class C
 (712)   (1,929)
Class I
 (1,853)   (3,906)
Class R6
 (20)   (8)
Total dividends and distributions to shareholders
 (44,000)   (65,945)
Change in Net Assets from Capital Transactions (See Note 5):      
Class A
 (26,993)   (12,680)
Class C
 (4,018)   (11,584)
Class I
 (4,841)   (8,300)
Class R6
 1,516   4
Increase (decrease) in net assets from capital transactions
 (34,336)   (32,560)
Net increase (decrease) in net assets
 10,071   (374,317)
Net Assets      
Beginning of period
 580,292   954,609
End of Period
 $ 590,363   $ 580,292
See Notes to Financial Statements
101

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Capital Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $16.87  (0.08)  3.43  3.35  —  —  (3.31)  (3.31)  —  0.04  $16.91  23.25  % $ 483,990  1.22 %  (6) 1.22 %  (0.45) %  12 % 
10/1/21 to 9/30/22   28.64  (0.14)  (9.51)  (9.65)  —  —  (2.12)  (2.12)  —  (11.77)  16.87  (36.54)   435,925  1.20   (6)(7) 1.20   (0.63)   13  
10/1/20 to 9/30/21   24.20  (0.22)  5.49  5.27  —  —  (0.83)  (0.83)  —  4.44  28.64  21.98   736,713  1.20   (6) 1.20   (0.83)   8  
10/1/19 to 9/30/20   16.67  (0.12)  8.16  8.04  —  —  (0.51)  (0.51)  —  7.53  24.20  49.20   640,963  1.22   (6) 1.23   (0.63)   4  
10/1/18 to 9/30/19   18.37  (0.07)  (0.08)  (0.15)  —  —  (1.55)  (1.55)  —  (1.70)  16.67  1.10   471,071  1.23   (6) 1.24   (0.43)   12  
Class C                                    
10/1/22 to 9/30/23   $11.73  (0.14)  2.20  2.06  —  —  (3.31)  (3.31)  —  (1.25)  $10.48  22.24  % $ 2,136  2.06 %  (6) 2.06 %  (1.29) %  12 % 
10/1/21 to 9/30/22   20.70  (0.25)  (6.60)  (6.85)  —  —  (2.12)  (2.12)  —  (8.97)  11.73  (37.07)   2,914  2.01   (6)(7) 2.01   (1.48)   13  
10/1/20 to 9/30/21   17.83  (0.32)  4.02  3.70  —  —  (0.83)  (0.83)  —  2.87  20.70  21.00   9,252  2.01   (6) 2.01   (1.63)   8  
10/1/19 to 9/30/20   12.49  (0.20)  6.05  5.85  —  —  (0.51)  (0.51)  —  5.34  17.83  48.09   13,183  2.00   (6) 2.00   (1.41)   4  
10/1/18 to 9/30/19   14.34  (0.15)  (0.15)  (0.30)  —  —  (1.55)  (1.55)  —  (1.85)  12.49  0.26   8,632  2.02   (6) 2.02   (1.22)   12  
Class I                                    
10/1/22 to 9/30/23   $17.67  (0.04)  3.63  3.59  —  —  (3.31)  (3.31)  —  0.28  $17.95  23.60  % $ 29,960  1.00 %  (6) 1.00 %  (0.23) %  12 % 
10/1/21 to 9/30/22   29.86  (0.11)  (9.96)  (10.07)  —  —  (2.12)  (2.12)  —  (12.19)  17.67  (36.45)   30,739  1.01   (6)(7) 1.01   (0.44)   13  
10/1/20 to 9/30/21   25.15  (0.18)  5.72  5.54  —  —  (0.83)  (0.83)  —  4.71  29.86  22.23   59,565  1.00   (6) 1.00   (0.63)   8  
10/1/19 to 9/30/20   17.36  (0.09)  8.39  8.30  —  —  (0.51)  (0.51)  —  7.79  25.15  48.72   46,600  1.01   (6) 1.02   (0.44)   4  
10/1/18 to 9/30/19   19.02  (0.04)  (0.07)  (0.11)  —  —  (1.55)  (1.55)  —  (1.66)  17.36  1.29   22,315  1.02   (6) 1.03   (0.21)   12  
Class R6                                    
10/1/22 to 9/30/23   $17.95  —  (8) 3.70  3.70  —  —  (3.31)  (3.31)  —  0.39  $18.34  23.88  % $ 1,562  0.73 %  0.91 %  0.03 %  12 % 
10/1/21 to 9/30/22   30.22  (0.04)  (10.11)  (10.15)  —  —  (2.12)  (2.12)  —  (12.27)  17.95  (36.27)   1,243  0.74   (7) 0.92   (0.15)   13  
10/1/20 to 9/30/21   25.38  (0.11)  5.78  5.67  —  —  (0.83)  (0.83)  —  4.84  30.22  22.55   810  0.73   0.91   (0.38)   8  
10/1/19 to 9/30/20   17.37  (0.01)  8.53  8.52  —  —  (0.51)  (0.51)  —  8.01  25.38  49.99   279  0.72   0.94   (0.06)   4  
10/1/18 to 9/30/19   19.04  (0.05)  (0.07)  (0.12)  —  —  (1.55)  (1.55)  —  (1.67)  17.37  1.25   94  0.78   (9) 0.94   (0.27)   12  
                                     
KAR Equity Income Fund                                    
Class A                                    
10/1/22 to 9/30/23   $18.25  0.52  0.50  1.02  (0.47)  —  (0.66)  (1.13)  —  (0.11)  $18.14  5.19  % $ 101,277  1.19 %  1.33 %  2.71 %  27 % 
10/1/21 to 9/30/22   20.46  0.47  (1.80)  (1.33)  (0.44)  —  (0.44)  (0.88)  —  (2.21)  18.25  (7.01)   104,120  1.22   (7) 1.34   2.26   22  
10/1/20 to 9/30/21   23.03  0.47  3.57  4.04  (0.27)  —  (6.34)  (6.61)  —  (2.57)  20.46  20.23   122,518  1.23   (7) 1.36   2.21   25  
10/1/19 to 9/30/20   20.62  0.15  2.47  2.62  (0.21)  —  —  (0.21)  —  2.41  23.03  12.75   113,585  1.23   (7) 1.38   0.72   118  
10/1/18 to 9/30/19   21.05  0.16  (0.38)  (0.22)  (0.21)  —  —  (0.21)  —  (0.43)  20.62  (0.85)   115,121  1.20   1.34   0.80   26  
Class C                                    
10/1/22 to 9/30/23   $15.55  0.32  0.44  0.76  (0.45)  —  (0.66)  (1.11)  —  (0.35)  $15.20  4.40  % $ 3,350  1.94 %  2.12 %  1.97 %  27 % 
10/1/21 to 9/30/22   17.47  0.26  (1.52)  (1.26)  (0.22)  —  (0.44)  (0.66)  —  (1.92)  15.55  (7.67)   3,395  1.97   (7) 2.12   1.50   22  
10/1/20 to 9/30/21   20.51  0.28  3.12  3.40  (0.10)  —  (6.34)  (6.44)  —  (3.04)  17.47  19.31   4,303  1.97   (7) 2.13   1.52   25  
10/1/19 to 9/30/20   18.36  (0.01)  2.19  2.18  (0.03)  —  —  (0.03)  —  2.15  20.51  11.91   6,394  1.97   (7) 2.13   (0.03)   118  
10/1/18 to 9/30/19   18.71  0.01  (0.33)  (0.32)  (0.03)  —  —  (0.03)  —  (0.35)  18.36  (1.65)   7,769  1.95   2.10   0.07   26  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
102

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Equity Income Fund (Continued)                                    
Class I                                    
10/1/22 to 9/30/23   $18.21  0.57  0.50  1.07  (0.60)  —  (0.66)  (1.26)  —  (0.19)  $18.02  5.47  % $ 14,965  0.94 %  1.09 %  2.99 %  27 % 
10/1/21 to 9/30/22   20.41  0.51  (1.78)  (1.27)  (0.49)  —  (0.44)  (0.93)  —  (2.20)  18.21  (6.74)   25,923  0.99   (7) 1.10   2.48   22  
10/1/20 to 9/30/21   23.00  0.52  3.56  4.08  (0.33)  —  (6.34)  (6.67)  —  (2.59)  20.41  20.49   11,819  0.98   (7) 1.11   2.43   25  
10/1/19 to 9/30/20   20.60  0.20  2.46  2.66  (0.26)  —  —  (0.26)  —  2.40  23.00  12.98   10,319  0.98   (7) 1.13   0.97   118  
10/1/18 to 9/30/19   21.03  0.21  (0.38)  (0.17)  (0.26)  —  —  (0.26)  —  (0.43)  20.60  (0.58)   10,654  0.95   1.09   1.06   26  
Class R6                                    
10/1/22 to 9/30/23   $18.13  0.58  0.49  1.07  (0.56)  —  (0.66)  (1.22)  —  (0.15)  $17.98  5.49  % $ 1,932  0.90 %  1.00 %  3.03 %  27 % 
10/1/21 to 9/30/22   20.35  0.52  (1.78)  (1.26)  (0.52)  —  (0.44)  (0.96)  —  (2.22)  18.13  (6.74)   1,674  0.94   (7) 1.03   2.54   22  
10/1/20 to 9/30/21   22.96  0.51  3.57  4.08  (0.35)  —  (6.34)  (6.69)  —  (2.61)  20.35  20.55   1,162  0.94   (7) 1.03   2.44   25  
10/1/19 to 9/30/20   20.56  0.21  2.47  2.68  (0.28)  —  —  (0.28)  —  2.40  22.96  13.08   793  0.93   (7) 1.05   1.01   118  
10/1/18 to 9/30/19   21.03  0.20  (0.37)  (0.17)  (0.30)  —  —  (0.30)  —  (0.47)  20.56  (0.56)   935  0.91   1.03   1.02   26  
                                     
KAR Global Quality Dividend Fund                                    
Class A                                    
10/1/22 to 9/30/23   $12.96  0.44  0.72  1.16  (0.41)  —  —  (0.41)  —  0.75  $13.71  8.79  % $ 21,314  1.35 %  1.56 %  3.10 %  21 % 
10/1/21 to 9/30/22   14.74  0.38  (1.84)  (1.46)  (0.32)  —  —  (0.32)  —  (1.78)  12.96  (10.21)   21,388  1.36   (7) 1.50   2.54   37  
10/1/20 to 9/30/21   12.76  0.37  1.95  2.32  (0.34)  —  —  (0.34)  —  1.98  14.74  18.42   23,807  1.35   1.51   2.55   37  
10/1/19 to 9/30/20   14.78  0.31  (1.99)  (1.68)  (0.34)  —  —  (0.34)  —  (2.02)  12.76  (11.69)   22,089  1.35   1.61   2.32   53  
10/1/18 to 9/30/19   14.98  0.38  0.85  1.23  (0.39)  —  (1.04)  (1.43)  —  (0.20)  14.78  9.64   29,367  1.35   1.56   2.71   35  
Class C                                    
10/1/22 to 9/30/23   $12.54  0.32  0.71  1.03  (0.29)  —  —  (0.29)  —  0.74  $13.28  8.06  % $ 490  2.10 %  2.38 %  2.29 %  21 % 
10/1/21 to 9/30/22   14.21  0.26  (1.79)  (1.53)  (0.14)  —  —  (0.14)  —  (1.67)  12.54  (10.93)   814  2.11   (7) 2.31   1.78   37  
10/1/20 to 9/30/21   12.29  0.24  1.90  2.14  (0.22)  —  —  (0.22)  —  1.92  14.21  17.52   931  2.10   2.29   1.74   37  
10/1/19 to 9/30/20   14.23  0.20  (1.92)  (1.72)  (0.22)  —  —  (0.22)  —  (1.94)  12.29  (12.34)   1,467  2.10   2.35   1.53   53  
10/1/18 to 9/30/19   14.52  0.24  0.83  1.07  (0.32)  —  (1.04)  (1.36)  —  (0.29)  14.23  8.74   3,178  2.10   2.29   1.79   35  
Class I                                    
10/1/22 to 9/30/23   $12.94  0.48  0.71  1.19  (0.44)  —  —  (0.44)  —  0.75  $13.69  9.02  % $ 7,143  1.10 %  1.32 %  3.34 %  21 % 
10/1/21 to 9/30/22   14.76  0.42  (1.85)  (1.43)  (0.39)  —  —  (0.39)  —  (1.82)  12.94  (10.00)   10,797  1.12   (7) 1.27   2.79   37  
10/1/20 to 9/30/21   12.77  0.40  1.97  2.37  (0.38)  —  —  (0.38)  —  1.99  14.76  18.78   11,659  1.10   1.27   2.79   37  
10/1/19 to 9/30/20   14.79  0.35  (1.99)  (1.64)  (0.38)  —  —  (0.38)  —  (2.02)  12.77  (11.47)   10,259  1.10   1.40   2.66   53  
10/1/18 to 9/30/19   15.02  0.42  0.83  1.25  (0.44)  —  (1.04)  (1.48)  —  (0.23)  14.79  9.85   7,246  1.10   1.36   3.00   35  
Class R6                                    
10/1/22 to 9/30/23   $13.04  0.53  0.72  1.25  (0.50)  —  —  (0.50)  —  0.75  $13.79  9.41  % $ 2,190  0.79 %  1.20 %  3.67 %  21 % 
10/1/21 to 9/30/22   14.84  0.47  (1.86)  (1.39)  (0.41)  —  —  (0.41)  —  (1.80)  13.04  (9.73)   2,177  0.80   (7) 1.18   3.14   37  
10/1/20 to 9/30/21   12.81  0.45  1.97  2.42  (0.39)  —  —  (0.39)  —  2.03  14.84  19.15   1,969  0.78   1.15   3.04   37  
10/1/19 to 9/30/20   14.80  0.39  (1.99)  (1.60)  (0.39)  —  —  (0.39)  —  (1.99)  12.81  (11.18)   90  0.78   1.27   2.92   53  
8/1/19 (10) to 9/30/19   14.23  0.08  0.49  0.57  —  —  —  —  —  0.57  14.80  4.01   104  0.78   1.27   3.39   35   (11)
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
103

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Mid-Cap Core Fund                                    
Class A                                    
10/1/22 to 9/30/23   $41.93  (0.05)  8.69  8.64  —  —  (0.11)  (0.11)  —  8.53  $50.46  20.63  % $ 111,714  1.21 %  (7) 1.32 %  (0.11) %  21 % 
10/1/21 to 9/30/22   54.03  (0.22)  (10.95)  (11.17)  —  —  (0.93)  (0.93)  —  (12.10)  41.93  (21.10)   72,404  1.21   (7) 1.31   (0.44)   20  
10/1/20 to 9/30/21   39.93  (0.29)  14.71  14.42  —  —  (0.32)  (0.32)  —  14.10  54.03  36.25   86,713  1.20   1.31   (0.58)   15  
10/1/19 to 9/30/20   35.05  (0.16)  5.19  5.03  —  —  (0.15)  (0.15)  —  4.88  39.93  14.39   56,677  1.20   1.34   (0.44)   19  
10/1/18 to 9/30/19   33.71  (0.08)  1.65  1.57  —  —  (0.23)  (0.23)  —  1.34  35.05  4.79   46,934  1.20   1.36   (0.23)   28  
Class C                                    
10/1/22 to 9/30/23   $38.00  (0.38)  7.87  7.49  —  —  (0.11)  (0.11)  —  7.38  $45.38  19.73  % $ 64,053  1.96 %  (7) 2.07 %  (0.87) %  21 % 
10/1/21 to 9/30/22   49.42  (0.54)  (9.95)  (10.49)  —  —  (0.93)  (0.93)  —  (11.42)  38.00  (21.70)   53,041  1.96   (7) 2.07   (1.19)   20  
10/1/20 to 9/30/21   36.82  (0.61)  13.53  12.92  —  —  (0.32)  (0.32)  —  12.60  49.42  35.23   67,627  1.95   2.06   (1.33)   15  
10/1/19 to 9/30/20   32.58  (0.40)  4.79  4.39  —  —  (0.15)  (0.15)  —  4.24  36.82  13.51   49,164  1.95   2.10   (1.19)   19  
10/1/18 to 9/30/19   31.58  (0.30)  1.53  1.23  —  —  (0.23)  (0.23)  —  1.00  32.58  4.03   43,268  1.95   2.11   (0.98)   28  
Class I                                    
10/1/22 to 9/30/23   $43.07  0.07  8.94  9.01  —  —  (0.11)  (0.11)  —  8.90  $51.97  20.94  % $1,639,765  0.96 %  (7) 1.07 %  0.14 %  21 % 
10/1/21 to 9/30/22   55.34  (0.09)  (11.25)  (11.34)  —  —  (0.93)  (0.93)  —  (12.27)  43.07  (20.91)   1,065,078  0.96   (7) 1.06   (0.18)   20  
10/1/20 to 9/30/21   40.79  (0.17)  15.04  14.87  —  —  (0.32)  (0.32)  —  14.55  55.34  36.59   1,188,000  0.95   1.05   (0.33)   15  
10/1/19 to 9/30/20   35.72  (0.07)  5.29  5.22  —  —  (0.15)  (0.15)  —  5.07  40.79  14.65   658,291  0.95   1.09   (0.18)   19  
10/1/18 to 9/30/19   34.26  0.01  1.68  1.69  —  —  (0.23)  (0.23)  —  1.46  35.72  5.06   329,591  0.95   1.11   0.03   28  
Class R6                                    
10/1/22 to 9/30/23   $43.24  0.11  8.97  9.08  —  —  (0.11)  (0.11)  —  8.97  $52.21  21.02  % $ 45,941  0.88 %  (7) 0.97 %  0.21 %  21 % 
10/1/21 to 9/30/22   55.51  (0.06)  (11.28)  (11.34)  —  —  (0.93)  (0.93)  —  (12.27)  43.24  (20.84)   28,499  0.88   (7) 0.97   (0.12)   20  
10/1/20 to 9/30/21   40.89  (0.12)  15.06  14.94  —  —  (0.32)  (0.32)  —  14.62  55.51  36.67   55,370  0.87   0.97   (0.24)   15  
10/1/19 to 9/30/20   35.77  (0.04)  5.31  5.27  —  —  (0.15)  (0.15)  —  5.12  40.89  14.77   19,666  0.87   1.00   (0.10)   19  
10/1/18 to 9/30/19   34.28  0.04  1.68  1.72  —  —  (0.23)  (0.23)  —  1.49  35.77  5.15   11,323  0.87   1.01   0.11   28  
                                     
KAR Mid-Cap Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $43.47  (0.30)  7.05  6.75  —  —  —  —  —  6.75  $50.22  15.53  % $ 302,747  1.25 %  (6) 1.25 %  (0.61) %  13 % 
10/1/21 to 9/30/22   71.37  (0.42)  (26.44)  (26.86)  —  —  (1.04)  (1.04)  —  (8) (27.90)  43.47  (38.15)   (12) 301,043  1.25   (6)(7) 1.25   (0.73)   12  
10/1/20 to 9/30/21   58.05  (0.62)  14.01  13.39  —  —  (0.07)  (0.07)  —  13.32  71.37  23.07   579,817  1.24   (6) 1.24   (0.91)   17  
10/1/19 to 9/30/20   37.39  (0.42)  21.34  20.92  —  —  (0.26)  (0.26)  —  20.66  58.05  56.23   482,266  1.28   (6)(13) 1.26   (0.90)   14  
10/1/18 to 9/30/19   35.55  (0.31)  2.79  2.48  —  —  (0.64)  (0.64)  —  1.84  37.39  7.46   181,184  1.40   (6)(13) 1.33   (0.87)   28  
Class C                                    
10/1/22 to 9/30/23   $33.14  (0.51)  5.36  4.85  —  —  —  —  —  4.85  $37.99  14.63  % $ 54,318  2.03 %  (6) 2.03 %  (1.39) %  13 % 
10/1/21 to 9/30/22   55.11  (0.68)  (20.25)  (20.93)  —  —  (1.04)  (1.04)  —  (8) (21.97)  33.14  (38.65)   (12) 59,318  2.05   (6)(7) 2.05   (1.53)   12  
10/1/20 to 9/30/21   45.18  (0.87)  10.87  10.00  —  —  (0.07)  (0.07)  —  9.93  55.11  22.13   141,256  1.99   (6) 1.99   (1.66)   17  
10/1/19 to 9/30/20   29.38  (0.60)  16.66  16.06  —  —  (0.26)  (0.26)  —  15.80  45.18  55.01   112,165  2.03   (6)(13) 2.02   (1.65)   14  
10/1/18 to 9/30/19   28.30  (0.47)  2.19  1.72  —  —  (0.64)  (0.64)  —  1.08  29.38  6.67   40,450  2.15   (6)(13) 2.12   (1.62)   28  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
104

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Mid-Cap Growth Fund (Continued)                                    
Class I                                    
10/1/22 to 9/30/23   $45.29  (0.20)  7.34  7.14  —  —  —  —  —  7.14  $52.43  15.77  % $1,041,379  1.02 %  (6) 1.02 %  (0.39) %  13 % 
10/1/21 to 9/30/22   74.14  (0.30)  (27.51)  (27.81)  —  —  (1.04)  (1.04)  —  (8) (28.85)  45.29  (38.00)   (12) 1,134,777  1.01   (6)(7) 1.01   (0.50)   12  
10/1/20 to 9/30/21   60.16  (0.47)  14.52  14.05  —  —  (0.07)  (0.07)  —  13.98  74.14  23.35   2,499,830  1.00   (6) 1.00   (0.66)   17  
10/1/19 to 9/30/20   38.70  (0.33)  22.05  21.72  —  —  (0.26)  (0.26)  —  21.46  60.16  56.39   1,837,262  1.03   (6) 1.03   (0.66)   14  
10/1/18 to 9/30/19   36.66  (0.22)  2.90  2.68  —  —  (0.64)  (0.64)  —  2.04  38.70  7.79   309,892  1.11   (6)(13) 1.11   (0.58)   28  
Class R6                                    
10/1/22 to 9/30/23   $45.71  (0.10)  7.41  7.31  —  —  —  —  —  7.31  $53.02  15.99  % $ 90,609  0.82 %  0.91 %  (0.19) %  13 % 
10/1/21 to 9/30/22   74.68  (0.20)  (27.73)  (27.93)  —  —  (1.04)  (1.04)  —  (8) (28.97)  45.71  (37.89)   (12) 89,056  0.84   (7) 0.90   (0.34)   12  
10/1/20 to 9/30/21   60.49  (0.36)  14.62  14.26  —  —  (0.07)  (0.07)  —  14.19  74.68  23.57   208,915  0.83   0.89   (0.50)   17  
10/1/19 to 9/30/20   38.85  (0.28)  22.18  21.90  —  —  (0.26)  (0.26)  —  21.64  60.49  56.64   100,461  0.83   0.93   (0.51)   14  
10/1/18 to 9/30/19   36.71  (0.13)  2.91  2.78  —  —  (0.64)  (0.64)  —  2.14  38.85  8.05   1,975  0.85   (9)(13) 1.01   (0.34)   28  
                                     
KAR Small-Cap Core Fund                                    
Class A                                    
10/1/22 to 9/30/23   $37.42  0.08  8.84  8.92  (0.07)  —  (2.61)  (2.68)  —  6.24  $43.66  24.88  % $ 146,983  1.27 %  1.27 %  0.20 %  10 % 
10/1/21 to 9/30/22   47.98  —  (8) (4.72)  (4.72)  —  —  (5.84)  (5.84)  —  (10.56)  37.42  (11.73)   117,382  1.27   (7) 1.27   —   (14) 9  
10/1/20 to 9/30/21   40.21  (0.11)  11.25  11.14  —  —  (3.37)  (3.37)  —  7.77  47.98  28.68   140,807  1.26   1.26   (0.23)   16  
10/1/19 to 9/30/20   38.20  (0.17)  3.84  3.67  —  —  (1.66)  (1.66)  —  2.01  40.21  9.78   112,178  1.28   1.28   (0.46)   19  
10/1/18 to 9/30/19   35.42  (0.08)  4.14  4.06  —  —  (1.28)  (1.28)  —  2.78  38.20  12.50   133,702  1.29   1.29   (0.24)   9  
Class C                                    
10/1/22 to 9/30/23   $28.70  (0.16)  6.68  6.52  —  —  (2.61)  (2.61)  —  3.91  $32.61  23.98  % $ 59,235  1.99 %  1.99 %  (0.52) %  10 % 
10/1/21 to 9/30/22   38.35  (0.24)  (3.57)  (3.81)  —  —  (5.84)  (5.84)  —  (9.65)  28.70  (12.37)   58,911  2.00   (7) 2.00   (0.73)   9  
10/1/20 to 9/30/21   32.95  (0.35)  9.12  8.77  —  —  (3.37)  (3.37)  —  5.40  38.35  27.74   84,992  1.99   1.99   (0.93)   16  
10/1/19 to 9/30/20   31.81  (0.37)  3.17  2.80  —  —  (1.66)  (1.66)  —  1.14  32.95  8.98   89,553  2.01   2.01   (1.20)   19  
10/1/18 to 9/30/19   29.95  (0.28)  3.42  3.14  —  —  (1.28)  (1.28)  —  1.86  31.81  11.69   106,191  2.03   2.03   (0.99)   9  
Class I                                    
10/1/22 to 9/30/23   $40.33  0.21  9.55  9.76  (0.11)  —  (2.61)  (2.72)  —  7.04  $47.37  25.20  % $1,146,747  1.00 %  1.00 %  0.47 %  10 % 
10/1/21 to 9/30/22   51.22  0.12  (5.11)  (4.99)  (0.06)  —  (5.84)  (5.90)  —  (10.89)  40.33  (11.51)   1,008,114  1.01   (7) 1.01   0.26   9  
10/1/20 to 9/30/21   42.67  0.02  11.96  11.98  (0.06)  —  (3.37)  (3.43)  —  8.55  51.22  29.03   1,278,711  1.00   1.00   0.05   16  
10/1/19 to 9/30/20   40.33  (0.07)  4.08  4.01  (0.01)  —  (1.66)  (1.67)  —  2.34  42.67  10.11   1,082,010  1.00   1.00   (0.18)   19  
10/1/18 to 9/30/19   37.26  —  (8) 4.39  4.39  (0.04)  —  (1.28)  (1.32)  —  3.07  40.33  12.83   1,202,004  1.02   1.02   0.01   9  
Class R6                                    
10/1/22 to 9/30/23   $40.53  0.25  9.60  9.85  (0.15)  —  (2.61)  (2.76)  —  7.09  $47.62  25.30  % $ 388,523  0.92 %  0.92 %  0.55 %  10 % 
10/1/21 to 9/30/22   51.45  0.16  (5.12)  (4.96)  (0.12)  —  (5.84)  (5.96)  —  (10.92)  40.53  (11.42)   320,196  0.93   (7) 0.93   0.35   9  
10/1/20 to 9/30/21   42.84  0.06  12.02  12.08  (0.10)  —  (3.37)  (3.47)  —  8.61  51.45  29.14   421,653  0.92   0.92   0.12   16  
10/1/19 to 9/30/20   40.50  (0.06)  4.10  4.04  (0.04)  —  (1.66)  (1.70)  —  2.34  42.84  10.15   294,883  0.93   0.93   (0.14)   19  
10/1/18 to 9/30/19   37.40  0.04  4.40  4.44  (0.06)  —  (1.28)  (1.34)  —  3.10  40.50  12.94   107,611  0.94   0.94   0.10   9  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
105

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Small-Cap Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $32.27  (0.20)  4.50  4.30  —  —  (5.04)  (5.04)  —  (0.74)  $31.53  15.15  % $ 416,428  1.36 %  (6) 1.36 %  (0.62) %  7 % 
10/1/21 to 9/30/22   53.81  (0.37)  (14.19)  (14.56)  —  —  (6.98)  (6.98)  —  (21.54)  32.27  (31.04)   432,185  1.34   (6)(7) 1.34   (0.87)   12  
10/1/20 to 9/30/21   49.00  (0.52)  10.49  9.97  —  —  (5.16)  (5.16)  —  4.81  53.81  20.46   793,106  1.34   (6) 1.34   (0.97)   11  
10/1/19 to 9/30/20   37.44  (0.41)  12.59  12.18  —  —  (0.62)  (0.62)  —  11.56  49.00  32.91   772,158  1.35   (6) 1.35   (0.99)   17  
10/1/18 to 9/30/19   33.57  (0.23)  4.78  4.55  —  (0.04)  (0.64)  (0.68)  —  3.87  37.44  14.12   735,210  1.37   (6) 1.37   (0.66)   16  
Class C                                    
10/1/22 to 9/30/23   $27.18  (0.35)  3.68  3.33  —  —  (5.04)  (5.04)  —  (1.71)  $25.47  14.31  % $ 136,793  2.08 %  (6) 2.08 %  (1.36) %  7 % 
10/1/21 to 9/30/22   46.72  (0.58)  (11.98)  (12.56)  —  —  (6.98)  (6.98)  —  (19.54)  27.18  (31.52)   163,204  2.07   (6)(7) 2.07   (1.61)   12  
10/1/20 to 9/30/21   43.40  (0.79)  9.27  8.48  —  —  (5.16)  (5.16)  —  3.32  46.72  19.60   319,371  2.05   (6) 2.05   (1.68)   11  
10/1/19 to 9/30/20   33.46  (0.63)  11.19  10.56  —  —  (0.62)  (0.62)  —  9.94  43.40  31.97   322,672  2.07   (6) 2.07   (1.72)   17  
10/1/18 to 9/30/19   30.30  (0.44)  4.28  3.84  —  (0.04)  (0.64)  (0.68)  —  3.16  33.46  13.28   291,693  2.10   (6) 2.10   (1.40)   16  
Class I                                    
10/1/22 to 9/30/23   $33.50  (0.12)  4.70  4.58  —  —  (5.04)  (5.04)  —  (0.46)  $33.04  15.47  % $2,534,160  1.09 %  (6) 1.09 %  (0.36) %  7 % 
10/1/21 to 9/30/22   55.46  (0.27)  (14.71)  (14.98)  —  —  (6.98)  (6.98)  —  (21.96)  33.50  (30.85)   2,778,744  1.08   (6)(7) 1.08   (0.62)   12  
10/1/20 to 9/30/21   50.25  (0.38)  10.75  10.37  —  —  (5.16)  (5.16)  —  5.21  55.46  20.77   5,346,986  1.07   (6) 1.07   (0.70)   11  
10/1/19 to 9/30/20   38.28  (0.31)  12.90  12.59  —  —  (0.62)  (0.62)  —  11.97  50.25  33.27   5,251,980  1.09   (6) 1.09   (0.74)   17  
10/1/18 to 9/30/19   34.21  (0.14)  4.89  4.75  —  (0.04)  (0.64)  (0.68)  —  4.07  38.28  14.44   3,973,860  1.11   (6) 1.11   (0.40)   16  
Class R6                                    
10/1/22 to 9/30/23   $33.68  (0.08)  4.73  4.65  —  —  (5.04)  (5.04)  —  (0.39)  $33.29  15.61  % $ 225,962  0.99 %  (6) 0.99 %  (0.23) %  7 % 
10/1/21 to 9/30/22   55.68  (0.22)  (14.80)  (15.02)  —  —  (6.98)  (6.98)  —  (22.00)  33.68  (30.80)   140,696  0.99   (6)(7) 0.99   (0.51)   12  
10/1/20 to 9/30/21   50.39  (0.32)  10.77  10.45  —  —  (5.16)  (5.16)  —  5.29  55.68  20.88   205,549  0.98   (6) 0.98   (0.58)   11  
10/1/19 to 9/30/20   38.35  (0.29)  12.95  12.66  —  —  (0.62)  (0.62)  —  12.04  50.39  33.39   95,061  0.99   (6) 0.99   (0.68)   17  
10/1/18 to 9/30/19   34.23  (0.12)  4.92  4.80  —  (0.04)  (0.64)  (0.68)  —  4.12  38.35  14.58   45,306  1.00   (6) 1.00   (0.31)   16  
                                     
KAR Small-Cap Value Fund                                    
Class A                                    
10/1/22 to 9/30/23   $20.31  0.12  1.98  2.10  (0.09)  —  (0.58)  (0.67)  —  1.43  $21.74  10.42  % $ 88,472  1.21 %  (6) 1.21 %  0.53 %  11 % 
10/1/21 to 9/30/22   27.28  0.05  (6.53)  (6.48)  (0.02)  —  (0.47)  (0.49)  —  (6.97)  20.31  (24.26)   90,204  1.21   (6)(7) 1.21   0.19   9  
10/1/20 to 9/30/21   19.97  0.04  7.42  7.46  (0.15)  —  —  (0.15)  —  7.31  27.28  37.45   130,975  1.20   (6) 1.20   0.14   13  
10/1/19 to 9/30/20   18.33  0.12  1.63  1.75  (0.11)  —  —  (0.11)  —  1.64  19.97  9.57   83,622  1.23   (6) 1.23   0.66   19  
10/1/18 to 9/30/19   19.44  0.14  (0.93)  (0.79)  (0.13)  —  (0.19)  (0.32)  —  (1.11)  18.33  (3.82)   79,027  1.24   (6) 1.24   0.80   14  
Class C                                    
10/1/22 to 9/30/23   $19.59  (0.05)  1.92  1.87  —  —  (0.58)  (0.58)  —  1.29  $20.88  9.59  % $ 12,289  1.97 %  (6) 1.97 %  (0.23) %  11 % 
10/1/21 to 9/30/22   26.51  (0.14)  (6.31)  (6.45)  —  —  (0.47)  (0.47)  —  (6.92)  19.59  (24.84)   13,446  1.98   (6)(7) 1.98   (0.58)   9  
10/1/20 to 9/30/21   19.44  (0.16)  7.24  7.08  (0.01)  —  —  (0.01)  —  7.07  26.51  36.44   21,623  1.96   (6) 1.96   (0.60)   13  
10/1/19 to 9/30/20   17.88  (0.01)  1.57  1.56  —  —  —  —  —  1.56  19.44  8.72   16,233  1.98   (6) 1.98   (0.08)   19  
10/1/18 to 9/30/19   18.96  0.01  (0.90)  (0.89)  —  —  (0.19)  (0.19)  —  (1.08)  17.88  (4.56)   15,361  1.99   (6) 1.99   0.09   14  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
106

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
KAR Small-Cap Value Fund (Continued)                                    
Class I                                    
10/1/22 to 9/30/23   $20.36  0.17  1.98  2.15  (0.13)  —  (0.58)  (0.71)  —  1.44  $21.80  10.65  % $ 572,969  0.98 %  (6) 0.98 %  0.78 %  11 % 
10/1/21 to 9/30/22   27.30  0.11  (6.54)  (6.43)  (0.04)  —  (0.47)  (0.51)  —  (6.94)  20.36  (24.08)   756,418  0.98   (6)(7) 0.98   0.42   9  
10/1/20 to 9/30/21   19.97  0.10  7.43  7.53  (0.20)  —  —  (0.20)  —  7.33  27.30  37.83   1,190,498  0.96   (6) 0.96   0.38   13  
10/1/19 to 9/30/20   18.34  0.18  1.60  1.78  (0.15)  —  —  (0.15)  —  1.63  19.97  9.75   711,421  0.99   (6) 0.99   0.94   19  
10/1/18 to 9/30/19   19.49  0.18  (0.94)  (0.76)  (0.20)  —  (0.19)  (0.39)  —  (1.15)  18.34  (3.57)   484,123  1.01   (6) 1.01   1.02   14  
Class R6                                    
10/1/22 to 9/30/23   $20.39  0.19  1.99  2.18  (0.08)  —  (0.58)  (0.66)  —  1.52  $21.91  10.78  % $ 47,355  0.89 %  (6) 0.89 %  0.85 %  11 % 
10/1/21 to 9/30/22   27.33  0.13  (6.55)  (6.42)  (0.05)  —  (0.47)  (0.52)  —  (6.94)  20.39  (24.03)   34,066  0.89   (6)(7) 0.89   0.52   9  
10/1/20 to 9/30/21   20.00  0.12  7.43  7.55  (0.22)  —  —  (0.22)  —  7.33  27.33  37.85   81,914  0.89   (6) 0.89   0.46   13  
10/1/19 to 9/30/20   18.36  0.19  1.62  1.81  (0.17)  —  —  (0.17)  —  1.64  20.00  9.90   12,246  0.89   (6) 0.89   1.01   19  
10/1/18 to 9/30/19   19.51  0.20  (0.94)  (0.74)  (0.22)  —  (0.19)  (0.41)  —  (1.15)  18.36  (3.47)   11,286  0.90   (6) 0.90   1.11   14  
                                     
KAR Small-Mid Cap Core Fund                                    
Class A                                    
10/1/22 to 9/30/23   $13.53  (0.05)  3.01  2.96  —  —  —  —  —  2.96  $16.49  21.88  % $ 52,713  1.26 %  (6)(13) 1.26 %  (0.29) %  18 % 
10/1/21 to 9/30/22   18.67  (0.10)  (4.82)  (4.92)  —  —  (0.22)  (0.22)  —  (5.14)  13.53  (26.69)   34,319  1.31   (6)(7)(13) 1.27   (0.60)   19  
10/1/20 to 9/30/21   14.43  (0.14)  4.38  4.24  —  —  —  —  —  4.24  18.67  29.38   48,485  1.30   1.30   (0.77)   7  
10/1/19 to 9/30/20   11.53  (0.03)  2.93  2.90  —  —  —  —  —  2.90  14.43  25.15   19,735  1.30   1.39   (0.23)   31  
10/1/18 to 9/30/19   10.79  (0.03)  0.89  0.86  —  —  (0.12)  (0.12)  —  0.74  11.53  8.32   1,473  1.30   2.25   (0.28)   21  
Class C                                    
10/1/22 to 9/30/23   $13.07  (0.16)  2.90  2.74  —  —  —  —  —  2.74  $15.81  20.96  % $ 35,836  2.04 %  (6)(13) 2.03 %  (1.07) %  18 % 
10/1/21 to 9/30/22   18.18  (0.22)  (4.67)  (4.89)  —  —  (0.22)  (0.22)  —  (5.11)  13.07  (27.25)   26,271  2.04   (6)(7)(13) 2.03   (1.33)   19  
10/1/20 to 9/30/21   14.16  (0.27)  4.29  4.02  —  —  —  —  —  4.02  18.18  28.39   30,401  2.05   (6)(13) 2.03   (1.52)   7  
10/1/19 to 9/30/20   11.40  (0.12)  2.88  2.76  —  —  —  —  —  2.76  14.16  24.21   10,210  2.05   2.08   (0.97)   31  
10/1/18 to 9/30/19   10.75  (0.11)  0.88  0.77  —  —  (0.12)  (0.12)  —  0.65  11.40  7.50   1,106  2.05   2.92   (1.05)   21  
Class I                                    
10/1/22 to 9/30/23   $13.68  (0.01)  3.04  3.03  —  —  —  —  —  3.03  $16.71  22.15  % $1,178,304  1.01 %  (6)(13) 1.01 %  (0.04) %  18 % 
10/1/21 to 9/30/22   18.82  (0.05)  (4.87)  (4.92)  —  —  (0.22)  (0.22)  —  (5.14)  13.68  (26.47)   877,405  1.02   (6)(7) 1.02   (0.31)   19  
10/1/20 to 9/30/21   14.51  (0.09)  4.40  4.31  —  (8) —  —  —  (8) —  4.31  18.82  29.72   1,168,320  1.02   (6)(13) 1.01   (0.49)   7  
10/1/19 to 9/30/20   11.56  0.01  2.94  2.95  —  —  —  —  —  2.95  14.51  25.52   439,899  1.05   1.09   0.07   31  
10/1/18 to 9/30/19   10.81  (0.01)  0.89  0.88  (0.01)  —  (0.12)  (0.13)  —  0.75  11.56  8.51   24,898  1.05   1.99   (0.05)   21  
Class R6                                    
10/1/22 to 9/30/23   $13.71  0.01  3.06  3.07  —  —  —  —  —  3.07  $16.78  22.39  % $ 66,911  0.92 %  (6)(13) 0.92 %  0.09 %  18 % 
10/1/21 to 9/30/22   18.87  (0.05)  (4.89)  (4.94)  —  —  (0.22)  (0.22)  —  (5.16)  13.71  (26.51)   14,051  0.98   (6)(7)(13) 0.93   (0.28)   19  
10/1/20 to 9/30/21   14.54  (0.08)  4.42  4.34  (0.01)  —  —  (0.01)  —  4.33  18.87  29.82   16,335  0.97   (6)(13) 0.92   (0.44)   7  
10/1/19 to 9/30/20   11.57  —  (8) 2.97  2.97  —  —  —  —  —  2.97  14.54  25.67   8,366  0.97   0.99   0.03   31  
10/1/18 to 9/30/19   10.81  0.01  0.88  0.89  (0.01)  —  (0.12)  (0.13)  —  0.76  11.57  8.61   3,125  0.97   1.91   0.06   21  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
107

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
KAR Small-Mid Cap Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $ 7.73  (0.06)  1.43  1.37  —  —  —  —  —  1.37  $ 9.10  17.72  % $ 3,321  1.30 %  2.25 %  (0.61) %  14 % 
10/1/21 to 9/30/22   10.70  (0.10)  (2.87)  (2.97)  —  —  —  —  —  (2.97)  7.73  (27.76)   435  1.31   (7) 2.77   (1.04)   27  
12/8/20 (10) to 9/30/21   10.00  (0.09)  0.79  0.70  —  —  —  —  —  0.70  10.70  7.00   725  1.30   4.06   (1.05)   14   (11)
Class C                                    
10/1/22 to 9/30/23   $ 7.63  (0.12)  1.40  1.28  —  —  —  —  —  1.28  $ 8.91  16.78  % $ 101  2.05 %  2.92 %  (1.45) %  14 % 
10/1/21 to 9/30/22   10.63  (0.16)  (2.84)  (3.00)  —  —  —  —  —  (3.00)  7.63  (28.22)   98  2.06   (7) 3.44   (1.77)   27  
12/8/20 (10) to 9/30/21   10.00  (0.15)  0.78  0.63  —  —  —  —  —  0.63  10.63  6.30   119  2.05   4.88   (1.82)   14   (11)
Class I                                    
10/1/22 to 9/30/23   $ 7.77  (0.04)  1.44  1.40  —  —  —  —  —  1.40  $ 9.17  18.02  % $ 2,715  1.05 %  1.98 %  (0.42) %  14 % 
10/1/21 to 9/30/22   10.72  (0.07)  (2.88)  (2.95)  —  —  —  —  —  (2.95)  7.77  (27.52)   1,940  1.06   (7) 2.58   (0.76)   27  
12/8/20 (10) to 9/30/21   10.00  (0.07)  0.79  0.72  —  —  —  —  —  0.72  10.72  7.20   1,998  1.05   3.83   (0.79)   14   (11)
Class R6                                    
10/1/22 to 9/30/23   $ 7.78  (0.03)  1.43  1.40  —  —  —  —  —  1.40  $ 9.18  17.99  % $ 3,127  0.99 %  1.86 %  (0.38) %  14 % 
10/1/21 to 9/30/22   10.73  (0.07)  (2.88)  (2.95)  —  —  —  —  —  (2.95)  7.78  (27.49)   2,664  1.00   (7) 2.45   (0.71)   27  
12/8/20 (10) to 9/30/21   10.00  (0.07)  0.80  0.73  —  —  —  —  —  0.73  10.73  7.30   3,241  0.99   3.79   (0.76)   14   (11)
                                     
KAR Small-Mid Cap Value Fund                                    
Class A                                    
10/1/22 to 9/30/23   $ 7.77  0.05  0.72  0.77  (0.05)  —  —  (0.05)  —  0.72  $ 8.49  9.96  % $ 1,207  1.17 %  2.20 %  0.56 %  15 % 
10/1/21 to 9/30/22   9.64  0.03  (1.88)  (1.85)  (0.02)  —  —  (0.02)  —  (1.87)  7.77  (19.25)   698  1.20   (7) 4.12   0.29   19  
8/3/21 (10) to 9/30/21   10.00  —  (8) (0.36)  (0.36)  —  —  —  —  —  (0.36)  9.64  (3.60)   127  1.17   12.81   0.09   0  
Class C                                    
10/1/22 to 9/30/23   $ 7.71  (0.02)  0.73  0.71  —  —  —  —  —  0.71  $ 8.42  9.21  % $ 87  1.92 %  2.96 %  (0.20) %  15 % 
10/1/21 to 9/30/22   9.63  (0.04)  (1.88)  (1.92)  —  —  —  —  —  (1.92)  7.71  (19.94)   80  1.93   (7) 4.86   (0.46)   19  
8/3/21 (10) to 9/30/21   10.00  (0.01)  (0.36)  (0.37)  —  —  —  —  —  (0.37)  9.63  (3.70)   99  1.92   13.87   (0.71)   0  
Class I                                    
10/1/22 to 9/30/23   $ 7.76  0.07  0.73  0.80  (0.04)  —  —  (0.04)  —  0.76  $ 8.52  10.29  % $ 1,150  0.92 %  2.07 %  0.81 %  15 % 
10/1/21 to 9/30/22   9.64  0.04  (1.87)  (1.83)  (0.05)  —  —  (0.05)  —  (1.88)  7.76  (19.10)   413  0.94   (7) 3.89   0.47   19  
8/3/21 (10) to 9/30/21   10.00  —  (8) (0.36)  (0.36)  —  —  —  —  —  (0.36)  9.64  (3.60)   97  0.92   12.88   0.29   0  
Class R6                                    
10/1/22 to 9/30/23   $ 7.78  0.08  0.73  0.81  (0.03)  —  —  (0.03)  —  0.78  $ 8.56  10.37  % $ 3,313  0.82 %  1.92 %  0.90 %  15 % 
10/1/21 to 9/30/22   9.65  0.06  (1.89)  (1.83)  (0.04)  —  —  (0.04)  —  (1.87)  7.78  (19.09)   2,719  0.83   (7) 3.83   0.63   19  
8/3/21 (10) to 9/30/21   10.00  0.01  (0.36)  (0.35)  —  —  —  —  —  (0.35)  9.65  (3.50)   2,604  0.82   12.82   0.47   0  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
108

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
SGA Emerging Markets Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $ 8.36  0.03  0.85  0.88  —  —  —  —  —  0.88  $ 9.24  10.53  % $ 157  1.48 %  3.28 %  0.28 %  17 % 
10/1/21 to 9/30/22   12.82  (0.02)  (3.56)  (3.58)  —  —  (0.88)  (0.88)  —  (4.46)  8.36  (29.40)   136  1.49   (7) 3.02   (0.23)   30  
10/1/20 to 9/30/21   11.90  (0.09)  1.28  1.19  —  —  (0.27)  (0.27)  —  0.92  12.82  9.93   206  1.48   2.91   (0.66)   46  
10/1/19 to 9/30/20   9.97  (0.05)  1.98  1.93  —  —  —  (8) —  (8) —  1.93  11.90  19.37   169  1.48   3.98   (0.47)   44  
6/13/19 (10) to 9/30/19   10.00  (0.02)  (0.01)  (0.03)  —  —  —  —  —  (0.03)  9.97  (0.30)   100  1.48   9.63   (0.57)   6   (11)
Class C                                    
10/1/22 to 9/30/23   $ 8.14  (0.04)  0.83  0.79  —  —  —  —  —  0.79  $ 8.93  9.71  % $ 139  2.23 %  4.00 %  (0.45) %  17 % 
10/1/21 to 9/30/22   12.60  (0.10)  (3.48)  (3.58)  —  —  (0.88)  (0.88)  —  (4.46)  8.14  (29.94)   86  2.24   (7) 3.76   (0.96)   30  
10/1/20 to 9/30/21   11.79  (0.19)  1.27  1.08  —  —  (0.27)  (0.27)  —  0.81  12.60  9.08   159  2.23   3.66   (1.42)   46  
10/1/19 to 9/30/20   9.95  (0.13)  1.97  1.84  —  —  —  (8) —  (8) —  1.84  11.79  18.50   142  2.23   4.70   (1.19)   44  
6/13/19 (10) to 9/30/19   10.00  (0.04)  (0.01)  (0.05)  —  —  —  —  —  (0.05)  9.95  (0.50)   100  2.23   10.38   (1.32)   6   (11)
Class I                                    
10/1/22 to 9/30/23   $ 8.44  0.05  0.86  0.91  —  —  —  —  —  0.91  $ 9.35  10.78  % $ 219  1.24 %  2.93 %  0.53 %  17 % 
10/1/21 to 9/30/22   12.90  —  (8) (3.58)  (3.58)  —  —  (0.88)  (0.88)  —  (4.46)  8.44  (29.20)   230  1.24   (7) 2.76   0.01   30  
10/1/20 to 9/30/21   11.94  (0.06)  1.29  1.23  —  —  (0.27)  (0.27)  —  0.96  12.90  10.24   405  1.23   2.67   (0.42)   46  
10/1/19 to 9/30/20   9.98  (0.03)  1.99  1.96  —  —  —  (8) —  (8) —  1.96  11.94  19.65   247  1.23   3.57   (0.30)   44  
6/13/19 (10) to 9/30/19   10.00  (0.01)  (0.01)  (0.02)  —  —  —  —  —  (0.02)  9.98  (0.20)   109  1.23   9.38   (0.32)   6   (11)
Class R6                                    
10/1/22 to 9/30/23   $ 8.49  0.07  0.86  0.93  —  —  —  —  —  0.93  $ 9.42  10.95  % $ 4,128  1.05 %  2.89 %  0.69 %  17 % 
10/1/21 to 9/30/22   12.95  0.02  (3.60)  (3.58)  —  —  (0.88)  (0.88)  —  (4.46)  8.49  (29.08)   3,845  1.06   (7) 2.74   0.21   30  
10/1/20 to 9/30/21   11.97  (0.03)  1.28  1.25  —  —  (0.27)  (0.27)  —  0.98  12.95  10.38   5,425  1.05   2.63   (0.24)   46  
10/1/19 to 9/30/20   9.98  —  (8) 1.99  1.99  —  —  —  (8) —  (8) —  1.99  11.97  19.95   4,828  1.05   3.72   (0.02)   44  
6/13/19 (10) to 9/30/19   10.00  —  (8) (0.02)  (0.02)  —  —  —  —  —  (0.02)  9.98  (0.20)   4,032  1.05   9.38   (0.14)   6   (11)
                                     
SGA Global Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $19.49  (0.11)  4.70  4.59  —  —  (0.54)  (0.54)  —  4.05  $23.54  23.95  % $ 22,363  1.34 %  (9) 1.46 %  (0.48) %  24 % 
10/1/21 to 9/30/22   30.69  (0.18)  (8.97)  (9.15)  —  —  (2.05)  (2.05)  —  (11.20)  19.49  (31.91)   18,375  1.39   (7) 1.45   (0.71)   37  
10/1/20 to 9/30/21   26.54  (0.24)  5.33  5.09  —  —  (0.94)  (0.94)  —  4.15  30.69  19.49   34,690  1.38   1.47   (0.79)   40  
10/1/19 to 9/30/20   20.98  (0.12)  5.68  5.56  —  —  —  —  —  5.56  26.54  26.50   26,504  1.36   (6) 1.36   (0.53)   49  
2/1/19 to 9/30/19(15)   18.58  (0.01)  2.41  2.40  —  —  —  —  —  2.40  20.98  12.92   4,219  1.37   1.48   (0.06)   13  
2/1/18 to 1/31/19   19.72  (0.05)  (0.32)  (0.37)  —  —  (0.77)  (0.77)  —  (1.14)  18.58  (1.46)   3,786  1.38   1.60   (0.28)   54  
Class C                                    
10/1/22 to 9/30/23   $18.01  (0.26)  4.33  4.07  —  —  (0.54)  (0.54)  —  3.53  $21.54  23.01  % $ 3,726  2.09 %  (9) 2.18 %  (1.25) %  24 % 
10/1/21 to 9/30/22   28.71  (0.35)  (8.30)  (8.65)  —  —  (2.05)  (2.05)  —  (10.70)  18.01  (32.40)   3,767  2.14   (6)(7)(13) 2.14   (1.47)   37  
10/1/20 to 9/30/21   25.06  (0.43)  5.02  4.59  —  —  (0.94)  (0.94)  —  3.65  28.71  18.62   7,326  2.13   2.14   (1.54)   40  
10/1/19 to 9/30/20   19.97  (0.29)  5.38  5.09  —  —  —  —  —  5.09  25.06  25.49   5,210  2.13   2.14   (1.35)   49  
2/1/19 to 9/30/19(15)   17.77  (0.11)  2.31  2.20  —  —  —  —  —  2.20  19.97  12.38   3,554  2.10   2.20   (0.83)   13  
2/1/18 to 1/31/19   19.04  (0.04)  (0.46)  (0.50)  —  —  (0.77)  (0.77)  —  (1.27)  17.77  (2.20)   3,164  2.13   2.39   (1.08)   54  
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
109

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
SGA Global Growth Fund (Continued)                                    
Class I*                                    
10/1/22 to 9/30/23   $19.69  (0.06)  4.76  4.70  —  —  (0.54)  (0.54)  —  4.16  $23.85  24.27  % $ 24,356  1.09 %  (9) 1.19 %  (0.26) %  24 % 
10/1/21 to 9/30/22   30.91  (0.12)  (9.05)  (9.17)  —  —  (2.05)  (2.05)  —  (11.22)  19.69  (31.74)   33,241  1.14   (7) 1.18   (0.47)   37  
10/1/20 to 9/30/21   26.66  (0.16)  5.35  5.19  —  —  (0.94)  (0.94)  —  4.25  30.91  19.78   53,546  1.13   1.15   (0.52)   40  
10/1/19 to 9/30/20   21.03  (0.08)  5.71  5.63  —  (8) —  —  —  (8) —  5.63  26.66  26.79   27,529  1.13   1.20   (0.34)   49  
2/1/19 to 9/30/19(15)   18.61  —  (8) 2.42  2.42  —  —  —  —  —  2.42  21.03  13.00   12,807  1.19   1.28   (0.02)   13  
2/1/18 to 1/31/19   19.75  (0.21)  (0.16)  (0.37)  —  —  (0.77)  (0.77)  —  (1.14)  18.61  (1.46)   5,878  1.36   1.50   (0.15)   54  
Class R6**                                    
10/1/22 to 9/30/23   $20.38  (0.01)  4.92  4.91  —  —  (0.54)  (0.54)  —  4.37  $24.75  24.49  % $ 60,430  0.90 %  1.06 %  (0.05) %  24 % 
10/1/21 to 9/30/22   31.85  (0.06)  (9.36)  (9.42)  —  —  (2.05)  (2.05)  —  (11.47)  20.38  (31.58)   54,339  0.91   (7) 1.04   (0.22)   37  
10/1/20 to 9/30/21   27.38  (0.10)  5.51  5.41  —  —  (0.94)  (0.94)  —  4.47  31.85  20.07   80,122  0.90   1.03   (0.31)   40  
10/1/19 to 9/30/20   21.56  (0.03)  5.86  5.83  (0.01)  —  —  (0.01)  —  5.82  27.38  27.06   72,376  0.90   1.08   (0.11)   49  
2/1/19 to 9/30/19(15)   19.04  0.05  2.47  2.52  —  —  —  —  —  2.52  21.56  13.24   40,690  0.95   1.16   0.34   13  
2/1/18 to 1/31/19   20.11  0.01  (0.31)  (0.30)  —  —  (0.77)  (0.77)  —  (1.07)  19.04  (1.08)   28,819  0.98   1.31   0.07   54  
                                     
SGA New Leaders Growth Fund                                    
Class A                                    
10/1/22 to 9/30/23   $ 6.33  (0.04)  0.85  0.81  —  —  —  —  —  0.81  $ 7.14  12.80  % $ 84  1.34 %  2.43 %  (0.52) %  20 % 
10/1/21 to 9/30/22   10.65  (0.08)  (4.24)  (4.32)  —  —  —  —  —  (4.32)  6.33  (40.56)   71  1.36   (7)(9) 2.44   (0.93)   30  
11/17/20 (10) to 9/30/21   10.00  (0.09)  0.74  0.65  —  —  —  —  —  0.65  10.65  6.50   110  1.39   3.60   (1.01)   24   (11)
Class C                                    
10/1/22 to 9/30/23   $ 6.24  (0.09)  0.84  0.75  —  —  —  —  —  0.75  $ 6.99  12.02  % $ 70  2.09 %  3.12 %  (1.28) %  20 % 
10/1/21 to 9/30/22   10.58  (0.14)  (4.20)  (4.34)  —  —  —  —  —  (4.34)  6.24  (41.02)   62  2.11   (7)(9) 3.17   (1.68)   30  
11/17/20 (10) to 9/30/21   10.00  (0.16)  0.74  0.58  —  —  —  —  —  0.58  10.58  5.80   108  2.14   4.35   (1.76)   24   (11)
Class I                                    
10/1/22 to 9/30/23   $ 6.36  (0.02)  0.85  0.83  —  —  —  —  —  0.83  $ 7.19  13.05  % $ 75  1.09 %  2.13 %  (0.30) %  20 % 
10/1/21 to 9/30/22   10.67  (0.06)  (4.25)  (4.31)  —  —  —  —  —  (4.31)  6.36  (40.39)   97  1.11   (7)(9) 2.20   (0.68)   30  
11/17/20 (10) to 9/30/21   10.00  (0.07)  0.74  0.67  —  —  —  —  —  0.67  10.67  6.70   163  1.14   3.32   (0.76)   24   (11)
Class R6                                    
10/1/22 to 9/30/23   $ 6.38  (0.01)  0.86  0.85  —  —  —  —  —  0.85  $ 7.23  13.32  % $ 6,794  0.91 %  2.09 %  (0.08) %  20 % 
10/1/21 to 9/30/22   10.69  (0.04)  (4.27)  (4.31)  —  —  —  —  —  (4.31)  6.38  (40.32)   5,534  0.92   (7) 2.24   (0.48)   30  
11/17/20 (10) to 9/30/21   10.00  (0.05)  0.74  0.69  —  —  —  —  —  0.69  10.69  6.90   6,267  0.91   3.25   (0.54)   24   (11)
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
110

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
    Net Asset Value,

Beginning of Period 		Net Investment Income (Loss)(1) Net Realized and

Unrealized Gain (Loss) 		Total from Investment Operations Dividends from

Net Investment Income 		Return of Capital Distributions from

Net Realized Gains 		Total Distributions Payment from Affiliates(1) Change in Net Asset Value Net Asset Value, End of Period Total Return(2)(3) Net Assets, End of Period

(in thousands) 		Ratio of Net Expenses to

Average Net Assets(4)(5) 		Ratio of Gross Expenses

to Average Net Assets(4)(5) 		Ratio of Net Investment Income (Loss)

to Average Net Assets(4) 		Portfolio Turnover Rate(3)
                                     
Tactical Allocation Fund                                    
Class A                                    
10/1/22 to 9/30/23   $ 8.89  0.12  1.22  1.34  (0.12)  —  (0.58)  (0.70)  —  0.64  $ 9.53  15.81  % $ 557,103  0.99 %  1.07 %  1.26 %  23 % 
10/1/21 to 9/30/22   13.86  0.07  (4.06)  (3.99)  (0.07)  —  (0.91)  (0.98)  —  (4.97)  8.89  (31.03)   542,371  1.00   (7) 1.06   0.60   24  
10/1/20 to 9/30/21   12.10  0.04  1.97  2.01  (0.05)  —  (0.20)  (0.25)  —  1.76  13.86  16.69   869,209  1.01   (7)(9) 1.07   0.30   46  
10/1/19 to 9/30/20   9.51  0.07  2.71  2.78  (0.07)  —  (0.12)  (0.19)  —  2.59  12.10  29.72   683,100  1.06   (6) 1.06   0.68   35  
10/1/18 to 9/30/19   9.66  0.13  0.06  0.19  (0.12)  —  (0.22)  (0.34)  —  (8) (0.15)  9.51  2.36   (12) 569,543  1.14   (6) 1.14   1.33   51  
Class C                                    
10/1/22 to 9/30/23   $ 9.08  0.05  1.24  1.29  (0.04)  —  (0.58)  (0.62)  —  0.67  $ 9.75  14.92  % $ 9,183  1.75 %  1.87 %  0.49 %  23 % 
10/1/21 to 9/30/22   14.19  (0.03)  (4.15)  (4.18)  (0.02)  —  (0.91)  (0.93)  —  (5.11)  9.08  (31.56)   12,326  1.76   (7) 1.87   (0.22)   24  
10/1/20 to 9/30/21   12.44  (0.06)  2.02  1.96  (0.01)  —  (0.20)  (0.21)  —  1.75  14.19  15.82   33,401  1.77   (7)(9) 1.88   (0.46)   46  
10/1/19 to 9/30/20   9.78  (0.01)  2.80  2.79  (0.01)  —  (0.12)  (0.13)  —  2.66  12.44  28.82   12,140  1.83   (6)(13) 1.78   (0.10)   35  
10/1/18 to 9/30/19   9.93  0.06  0.05  0.11  (0.04)  —  (0.22)  (0.26)  —  (8) (0.15)  9.78  1.48   (12) 8,560  1.91   (9) 1.99   0.59   51  
Class I                                    
10/1/22 to 9/30/23   $ 8.86  0.14  1.22  1.36  (0.14)  —  (0.58)  (0.72)  —  0.64  $ 9.50  16.11  % $ 22,540  0.76 %  0.86 %  1.49 %  23 % 
10/1/21 to 9/30/22   13.82  0.09  (4.05)  (3.96)  (0.09)  —  (0.91)  (1.00)  —  (4.96)  8.86  (30.90)   25,520  0.77   (7) 0.86   0.80   24  
10/1/20 to 9/30/21   12.07  0.07  1.96  2.03  (0.08)  —  (0.20)  (0.28)  —  1.75  13.82  16.88   51,887  0.78   (7)(9) 0.86   0.55   46  
10/1/19 to 9/30/20   9.51  0.08  2.70  2.78  (0.10)  —  (0.12)  (0.22)  —  2.56  12.07  29.74   26,526  0.82   (6) 0.82   0.73   35  
1/29/19 (10) to 9/30/19   8.66  0.10  0.85  0.95  (0.10)  —  —  (0.10)  —  (8) 0.85  9.51  10.94   (12) 2,813  0.88   (6) 0.89   1.52   51   (11)
Class R6                                    
10/1/22 to 9/30/23   $ 8.87  0.15  1.22  1.37  (0.17)  —  (0.58)  (0.75)  —  0.62  $ 9.49  16.26  % $ 1,537  0.60 %  0.77 %  1.57 %  23 % 
10/1/21 to 9/30/22   13.83  0.11  (4.05)  (3.94)  (0.11)  —  (0.91)  (1.02)  —  (4.96)  8.87  (30.73)   75  0.61   (7) 0.70   1.00   24  
10/20/20 (10) to 9/30/21   12.48  0.09  1.55  1.64  (0.09)  —  (0.20)  (0.29)  —  1.35  13.83  13.23   112  0.62   (7) 0.86   0.70   46   (11)
    
The footnote legend is at the end of the financial highlights.
See Notes to Financial Statements
111

VIRTUS EQUITY TRUST
FINANCIAL HIGHLIGHTS (Continued)
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD
Footnote Legend:
* On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. The Class I shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Investor Class shares.
** On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. The Class R6 shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Institutional Class shares.
(1) Calculated using average shares outstanding.
(2) Sales charges, where applicable, are not reflected in the total return calculation.
(3) Not annualized for periods less than one year.
(4) Annualized for periods less than one year.
(5) The Funds will also indirectly bear their prorated share of expenses of any underlying funds in which they invest. Such expenses are not included in the calculation of this ratio.
(6) The share class is currently under its expense limitation.
(7) Net expense ratio includes extraordinary proxy expenses.
(8) Amount is less than $0.005 per share.
(9) Due to a change in expense cap, the ratio shown is a blended expense ratio.
(10) Inception date.
(11) Portfolio turnover is representative of the Fund for the entire period.
(12) Payment from affiliates had no impact on total return.
(13) See Note 3D in Notes to Financial Statements for information on recapture of expenses previously reimbursed and/or waived.
(14) Amount is less than 0.005%.
(15) The Fund changed its fiscal year end to September 30, during the period.
See Notes to Financial Statements
112

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS September 30, 2023
Note 1. Organization
Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
As of the date of this report, the Trust is comprised of 15 funds (each a “Fund” or collectively, the “Funds”), each reported in this annual report. Each Fund has a distinct investment objective and all of the Funds except the SGA Emerging Markets Growth Fund and SGA New Leaders Growth Fund are diversified. Each Fund’s investment objective is outlined in its respective Fund Summary page. There is no guarantee that a Fund will achieve its objective(s).
All of the Funds offer Class A shares, Class C shares, Class I shares and Class R6 shares.
Class A shares of the Funds are sold with a front-end sales charge of up to 5.50% with some exceptions. Generally, Class A shares are not subject to any charges by the Funds when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which such CDSC applies for the Funds is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.
Class C shares are generally sold with a 1% CDSC, applicable if redeemed within one year of purchase. Class C shares and any reinvested dividends and other distributions paid on such shares, will be automatically converted to Class A shares of the same Fund following a required holding period, which as of March 1, 2021, was eight years. Effective January 1, 2019 to February 28, 2021, with certain exceptions, Class C shares and any reinvested dividends and other distributions paid on such shares, were automatically converted to Class A shares of the same Fund ten years after the purchase date. If an investor intends to purchase greater than $999,999 of Class C shares, and the purchase would qualify for Class A shares with no load, then the purchase will automatically be made into a purchase of Class A shares, thus reducing expenses. Class I shares and Class R6 shares are sold without a front-end sales charge or CDSC.
Class I Shares are offered primarily to clients of financial intermediaries that (i) charge such clients an ongoing fee for advisory, investment, consulting, or similar services; or (ii) have entered into an agreement with the funds’ distributor to offer Class I Shares through a no-load network or platform. Such clients may include pension and profit sharing plans, other employee benefit trusts, endowments, foundations and corporations. Class I Shares are also offered to private and institutional clients of, or referred by, the adviser, a subadviser or their affiliates, and to Trustees of the funds and trustees/directors of affiliated open- and closed-end funds, and directors, officers and employees of Virtus and its affiliates. If you are eligible to purchase and do purchase Class I Shares, you will pay no sales charge at any time. There are no distribution and service fees applicable to Class I Shares.
Class R6 shares are offered without a minimum initial investment to the following investors in plan level or omnibus accounts only (provided that they do not require or receive any compensation, administrative payments, sub-transfer agency payments or service payments with respect to Class R6 shares): (i) qualified retirement plans, including, but not limited to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, and defined benefit plans; (ii) banks and trust companies; (iii) insurance companies; (iv) financial intermediaries utilizing such shares in fee-based investment advisory programs; (v) registered investment companies; and (vi) non-qualified deferred compensation plans. Other institutional investors may be permitted to purchase Class R6 shares subject to the applicable Fund’s determination of eligibility and may be subject to a $2,500,000 minimum initial investment requirement. In addition, without a minimum initial investment requirement, Class R6 shares are available to any Trustee of the Virtus Funds and trustees/directors of affiliated open- and closed-end funds, directors, officers and employees of Virtus and its affiliates, and a spouse or domestic partner, child or minor grandchild of any such qualifying individual (in each case either individually or jointly with other investors), provided in each case that those shares are held directly with the Transfer Agent or in an eligible account. Class R6 shares do not carry sales commissions or pay Rule 12b-1 fees. No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from Fund assets or the Funds’ distributor’s or an affiliate’s resources on sales of or investments in Class R6 shares.
The Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectuses and/or statement of additional information. The fees collected will be used to offset certain expenses of the Funds. These fees are reflected as “Less low balance account fees” in each Fund’s Statement of Operations for the period, as applicable.
Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears any expenses attributable specifically to that class (“class-specific expenses”) and has exclusive voting rights with respect to any Rule 12b-1 and/or shareholder service plan (“12b-1 Plan”) approved by the Board. Class I shares and Class R6 shares are not subject to a 12b-1 Plan. Class-specific expenses may include shareholder servicing fees, sub-transfer agency fees, and fees under a 12b-1 Plan, as well as certain other expenses as designated by the Funds’ Treasurer and approved by the Board. Investment income, common operating expenses and realized and unrealized gains and losses of each Fund are borne pro-rata by the holders of each class of shares.
Note 2. Significant Accounting Policies
($ reported in thousands)
The Trust is an investment company that follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be significant.
113

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
A. Security Valuation
  The Funds’ Board of Trustees: (the “Board”) has designated the Investment Adviser as the valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Investment Company Act of 1940. Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers into or out of Level 3 at the end of the reporting period.
   • Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).
     •    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
     •    Level 3 – prices determined using significant unobservable inputs (including the Investment Adviser’s Valuation Committee’s own assumptions in determining the fair value of investments).
A description of the valuation techniques applied to a Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:
Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Illiquid, restricted equity securities and illiquid private placements are internally fair valued by the Investment Adviser’s Valuation Committee, and are generally categorized as Level 3 in the hierarchy.
Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) at the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases, the Funds fair value non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.
Debt instruments, including convertible bonds, and restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, activity of the underlying equities, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt instruments that are internally fair valued by the Investment Adviser’s Valuation Committee are generally categorized as Level 3 in the hierarchy.
Listed derivatives, such as options, that are actively traded are valued at the last posted settlement price from the exchange where they are principally traded and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds and ETFs are valued as of the close of regular trading on the NYSE each business day. Each is categorized as Level 1 in the hierarchy.
A summary of the inputs used to value a Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
B. Security Transactions and Investment Income
  Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income and capital gain distributions are recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as a Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method. Premiums on callable debt instruments are amortized to interest income to the earliest call date using the effective interest method. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
  Dividend income from REITs is recorded using management’s estimate of the percentage of income included in distributions received from such investments based on historical information and other industry sources. The return of capital portion of the estimate is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed their cost basis, the distributions are treated as realized gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.
114

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
C. Income Taxes
  Each Fund is treated as a separate taxable entity. It is the intention of each Fund to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”) and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.
  Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.
  Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Each Fund’s U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State, local and/or non-U.S. tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction.
D. Distributions to Shareholders
  Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP.
E. Expenses
  Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each Fund and each such other fund, or an alternative allocation method, can be more appropriately used.
  In addition to the net annual operating expenses that a Fund bears directly, the shareholders of a Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests.
F. Foreign Currency Transactions
  Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. For fixed income instruments, the Funds bifurcate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on foreign currency transactions. For equity securities, the Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held and such fluctuations are included with the net realized and unrealized gain or loss on investments.
G. Payment-In-Kind Securities
  Certain Funds may invest in payment-in-kind securities, which are debt or preferred stock securities that require or permit payment of interest in the form of additional securities. Payment-in-kind securities allow the issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater risk than securities that pay interest currently or in cash.
H. When-Issued Purchases and Forward Commitments (Delayed Delivery)
  Certain Funds may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Funds to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. Each Fund records when-issued and forward commitment securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.
I. Leveraged Loans
  Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. A Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.
  A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.
115

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, SOFR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased a Fund may pay an assignment fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.
  A Fund may invest in both secured loans and “covenant lite” loans which have few or no financial maintenance covenants that would require a borrower to maintain certain financial metrics. The lack of financial maintenance covenants in covenant lite loans increases the risk that the applicable Fund will experience difficulty or delays in enforcing its rights on its holdings of such loans, which may result in losses, especially during a downturn in the credit cycle.
J. Securities Lending
  The Funds may loan securities to qualified brokers through a securities lending agency agreement with The Bank of New York Mellon (“BNYM”). Under the securities lending policy, when lending securities a Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan bringing the collateral market value in line with the required percent. Due to timing of collateral adjustments, the market value of collateral held with respect to a loaned security, may be more or less than the value of the security on loan.
  Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged/paid by BNYM for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.
  Securities lending transactions are entered into by each Fund under a Master Securities Lending Agreement (“MSLA”) which permits the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
  At September 30, 2023, the securities loaned were subject to a MSLA on a net payment basis as follows:
    
Fund   Value of
Securities
on Loan 		  Cash
Collateral
Received(1) 		  Net
Amount(2)
KAR Equity Income Fund
   $ 5,156   $ 5,156   $ —
KAR Global Quality Dividend Fund
   690   690   —
KAR Small-Cap Growth Fund
   851   851   —
Tactical Allocation Fund
   1,010   1,010   —
(1) Collateral received in excess of the value of securities on loan is not presented in this table. The cash collateral received in connection with securities lending transactions has been used for the purchase of securities as disclosed in the Fund’s Schedule of Investments.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
The following table reflects a breakdown of investments made from cash collateral received from lending activities and the remaining contractual maturity of those transactions as of September 30, 2023 for the Funds:
Fund   Investment of
Cash Collateral 		  Overnight
and
Continuous
KAR Equity Income Fund
   Money Market Mutual Fund   $5,285
KAR Global Quality Dividend Fund
   Money Market Mutual Fund   698
KAR Small-Cap Growth Fund
   Money Market Mutual Fund   875
Tactical Allocation Fund
   Money Market Mutual Fund   1,045
Note 3. Investment Advisory Fees and Related Party Transactions
($ reported in thousands)
A. Investment Adviser
  Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Funds. The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadvisers.
  As compensation for its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly based upon the following annual rates as a percentage of the average daily net assets of each Fund:
116

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
KAR Small-Cap Core Fund
 0.75 %
KAR Small-Cap Value Fund
 0.70
    
  First $400 Million   $400+ Million through
$1 Billion 		  $1+ Billion
KAR Small-Cap Growth Fund
 0.90 %   0.85 %   0.80  %
    
  First $500 Million   Over $500 Million
KAR Mid-Cap Growth Fund
 0.80 %   0.70 %
    
  First $1 Billion   $1+ Billion
KAR Small-Mid Cap Core Fund
 0.75 %   0.70  %
KAR Small-Mid Cap Growth Fund
 0.75   0.70  
KAR Small-Mid Cap Value Fund
 0.65   0.60  
SGA Emerging Markets Growth Fund
 1.00   0.95  
SGA Global Growth Fund
 0.80   0.75  
SGA New Leaders Growth Fund
 0.80   0.75  
    
  First $1 Billion   $1+ Billion through
$2 Billion 		  $2+ Billion
KAR Capital Growth Fund
 0.70 %   0.65  %   0.60 %
KAR Equity Income Fund
 0.75   0.70     0.65
KAR Global Quality Dividend Fund
 0.75   0.70     0.65
KAR Mid-Cap Core Fund
 0.80   0.75     0.70
Tactical Allocation Fund
 0.55   0.50     0.45
B. Subadvisers
  The subadvisers manage the investments of each Fund for which they are paid a fee by the Adviser. A list of the subadvisers and the Funds they serve as of the end of the period is as follows:
    
Fund   Subadviser
KAR Capital Growth Fund
 
KAR(1)
KAR Equity Income Fund
 
KAR(1)
KAR Global Quality Dividend Fund
 
KAR(1)
KAR Mid-Cap Core Fund
 
KAR(1)
KAR Mid-Cap Growth Fund
 
KAR(1)
KAR Small-Cap Core Fund
 
KAR(1)
KAR Small-Cap Growth Fund
 
KAR(1)
KAR Small-Cap Value Fund
 
KAR(1)
KAR Small-Mid Cap Core Fund
 
KAR(1)
KAR Small-Mid Cap Growth Fund
 
KAR(1)
KAR Small-Mid Cap Value Fund
 
KAR(1)
SGA Emerging Markets Growth Fund
 
SGA(2)
SGA Global Growth Fund
 
SGA(2)
SGA New Leaders Growth Fund
 
SGA(2)
Tactical Allocation Fund (Equity Portfolio)
  
KAR(1)
Tactical Allocation Fund (Fixed Income Portfolio)
  
Newfleet(3)
(1) Kayne Anderson Rudnick Investment Management, LLC (“KAR”), an indirect, wholly-owned subsidiary of Virtus.
(2) Sustainable Growth Advisers, LP (“SGA”), an indirect, majority-owned subsidiary of Virtus.
(3) Newfleet Asset Management (“Newfleet”), a division of Virtus Fixed Income Advisers LLC, an indirect wholly owned subsidiary of Virtus.
C. Expense Limitations
  The Adviser has contractually agreed to limit each Fund’s annual total operating expenses, subject to the exceptions listed below, so that such expenses do not exceed, on an annualized basis, the following respective percentages of average daily net assets through January 31, 2024.
117

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  Following the contractual period, the Adviser may discontinue these expense limitation arrangements at any time. The waivers and reimbursements are accrued daily and received monthly.
    
Fund   Class A   Class C   Class I   Class R6
KAR Capital Growth Fund
   1.47%   2.22%   1.22%   0.73%
KAR Equity Income Fund
   1.20   1.95   0.95   0.91
KAR Global Quality Dividend Fund
   1.35   2.10   1.10   0.78
KAR Mid-Cap Core Fund
   1.20   1.95   0.95   0.87
KAR Mid-Cap Growth Fund
   1.40   2.15   1.15   0.83
KAR Small-Cap Core Fund
   N/A   N/A   N/A   N/A
KAR Small-Cap Growth Fund
   1.50   2.25   1.25   1.18
KAR Small-Cap Value Fund
   1.42   2.17   1.17   1.06
KAR Small-Mid Cap Core Fund
   1.30   2.05   1.05   0.97
KAR Small-Mid Cap Growth Fund
   1.30   2.05   1.05   0.99
KAR Small-Mid Cap Value Fund
   1.17   1.92   0.92   0.82
SGA Emerging Markets Growth Fund
   1.48   2.23   1.23   1.05
SGA Global Growth Fund
   1.33 (1)   2.08 (1)   1.08 (1)   0.90
SGA New Leaders Growth Fund
   1.34   2.09   1.09   0.91
Tactical Allocation Fund
   0.99   1.75   0.76   0.60
(1) Effective January 1, 2023. For the period October 1, 2022 through December 31, 2022, the expense caps were as follows for Class A shares, Class C shares and Class I shares, respectively: 1.38%, 2.13% and 1.13%.
The exclusions include front-end or contingent deferred loads, taxes, leverage and borrowing expenses (such as commitment, amendment and
renewal expenses on credit or redemption facilities), interest, brokerage commissions, expenses incurred in connection with any merger or
reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any.
D. Expense Recapture
  Under certain conditions, the Adviser may recapture operating expenses reimbursed or fees waived under these arrangements within three years after the date on which such amounts were incurred or waived. A Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the year ending September 30:
    
    Expiration    
Fund   2024   2025   2026   Total
KAR Capital Growth Fund                
Class R6
   $ 1   $ 3   $ 3   $ 7
KAR Equity Income Fund                
Class A
   152   136   153   441
Class C
   9   5   8   22
Class I
   14   18   38   70
Class R6
   1   2   2   5
KAR Global Quality Dividend Fund                
Class A
   38   32   47   117
Class C
   2   2   2   6
Class I
   19   19   21   59
Class R6
   5   9   10   24
KAR Mid-Cap Core Fund                
Class A
   84   77   104   265
Class C
   68   67   69   204
Class I
   982   1,112   1,471   3,565
Class R6
   35   43   29   107
KAR Mid-Cap Growth Fund                
Class C
   —   —   — (1)   — (1)
Class R6
   101   102   80   283
KAR Small-Mid Cap Core Fund                
Class A
   —   —   — (1)   — (1)
Class R6
   —   —   — (1)   — (1)
118

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
    Expiration    
Fund   2024   2025   2026   Total
KAR Small-Mid Cap Growth Fund                
Class A
   $ 11   $ 8   $ 21   $ 40
Class C
   3   2   1   6
Class I
   25   34   21   80
Class R6
   68   43   26   137
KAR Small-Mid Cap Value Fund                
Class A
   2   7   12   21
Class C
   2   3   1   6
Class I
   2   9   10   21
Class R6
   51   85   35   171
SGA Emerging Markets Growth Fund                
Class A
   3   2   3   8
Class C
   3   2   3   8
Class I
   6   5   4   15
Class R6
   89   77   79   245
SGA Global Growth Fund                
Class A
   30   16   26   72
Class C
   —   1   3   4
Class I
   9   15   26   50
Class R6
   104   90   102   296
SGA New Leaders Growth Fund                
Class A
   2   1   1   4
Class C
   2   1   1   4
Class I
   3   2   1   6
Class R6
   115   80   74   269
Tactical Allocation Fund                
Class A
   498   424   474   1,396
Class C
   45   24   12   81
Class I
   43   38   24   105
Class R6
   — (1)   — (1)   1   1
(1) Amount is less than $500 (not in thousands).
During the year ended September 30, 2023, the Adviser recaptured expenses previously waived for the following Funds:
Fund   Class A   Class C   Class I   Class R6   Total
KAR Mid-Cap Growth Fund
   $—   $— (1)   $ —   $—   $ —(1)
KAR Small-Mid Cap Core Fund
   — (1)   5   31   9   45
Tactical Allocation Fund
   —   — (1)   — (1)   —   — (1)
(1) Amount is less than $500 (not in thousands).
E. Distributor
  VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the year ended September 30, 2023, it retained net commissions of $164 for Class A shares and CDSC of $13 and $(20) for Class A shares and Class C shares, respectively.
  In addition, each Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the annual rates of 0.25% for Class A shares and 1.00% for Class C shares. Class I shares and Class R6 shares are not subject to a 12b-1 Plan.
  Under certain circumstances, shares of certain Virtus Funds may be exchanged for shares of the same class of certain other Virtus Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.
F. Administrator and Transfer Agent
  Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Funds.
  For the year ended September 30, 2023, the Funds incurred administration fees totaling $11,111 which are included in the Statements of Operations within the line item “Administration and accounting fees.” The fees are calculated daily and paid monthly.
  For the year ended September 30, 2023, the Funds incurred transfer agent fees totaling $4,975 which are included in the Statements of Operations within the line item “Transfer agent fees and expenses.” The fees are calculated daily and paid monthly.
119

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
G. Affiliated Shareholders
  At September 30, 2023, Virtus and its affiliates held shares of the following Fund, which may be redeemed at any time, that aggregated to the following:
    
  Shares   Aggregate Net
Asset Value
KAR Small-Mid Cap Value Fund      
Class A
 10,000   $ 85
Class C
 10,000   84
Class I
 10,000   85
Class R6
 387,002   3,313
H. Investments with Affiliates
  The Funds are permitted to purchase assets from or sell assets to certain related affiliates under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of assets by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers comply with Rule 17a-7 under the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the year ended September 30, 2023, the Funds did not engage in any transactions pursuant to Rule 17a-7 under the 1940 Act.
  Outside of Rule 17a-7 transactions, other investments with affiliated issuers are separately reported in this note. An affiliated issuer includes any company in which a Fund held 5% or more of a company’s outstanding voting shares at any point during the period, as well as other circumstances where an investment adviser or subadviser to a Fund is deemed to exercise, directly or indirectly, a certain level of control over the company.
  A summary of the KAR Small-Cap Growth Fund’s total long-term and short-term purchases and sales of the respective shares of the affiliated investments during the year ended September 30, 2023, is as follows:
    
  Value,
beginning
of period 		  Purchases   Sales
proceeds 		  Net
realized
gain
(loss)
on
affiliated
securities 		  Net
change in
unrealized
appreciation
(depreciation)
on affiliated
securities 		  Value,
end of
period 		  Shares   Dividend
income 		  Distributions
of realized
gains
KAR Small-Cap Growth Fund
Common Stocks—36.7%
Dream Finders Homes, Inc.(1)
 $ 38,993   $ —   $ —   $ —   $ 42,781   $ 81,774   3,678,552   $ —   $—
Duck Creek Technologies, Inc.(2)
 119,616   —   187,027   24,277   43,134   —   —   —   —
Fox Factory Holding Corp.(1)
 217,706   —   37,162   22,904   31,868   235,316   2,375,008   —   —
Goosehead Insurance, Inc.(1)
 63,812   —   19,671   (4,028)   60,240   100,353   1,346,476   —   —
Holley, Inc.(1)
 42,971   —   —   —   9,974   52,945   10,610,230   —   —
MediaAlpha, Inc.(1)
 40,653   —   7,330   (24,991)   24,478   32,810   3,972,151   —   —
National Research Corp.
 95,899   —   —   —   11,011   106,910   2,409,518   3,566   —
NVE Corp.
 19,252   —   10,647   (1,015)   12,591   20,181   245,690   1,150   —
Olo, Inc.(1),(3)
 —   44,620   9,605   (29,898)   (16,173)   50,083   8,264,600   —   —
Omega Flex, Inc.
 79,774   —   5,176   (767)   (10,350)   63,481   806,308   1,342   —
Oportun Financial Corp.(4)
 7,790   —   1,624   (3,176)   17,965   —   —   —   —
Revolve Group, Inc.(1)
 114,495   —   14,465   (2,043)   (33,874)   64,113   4,710,701   —   —
Ryan Specialty Holdings, Inc.(1)
 315,827   —   56,329   24,336   28,063   311,897   6,444,150   —   —
U.S. Physical Therapy, Inc.
 90,084   —   11,437   (4,494)   21,659   95,812   1,044,500   1,833   —
Total $1,246,872   $44,620   $360,473   $ 1,105   $243,367   $1,215,675       $7,891   $—
    
120

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
(1) Non-income producing.
(2) Security was not an investment of the Fund at September 30, 2023.
(3) Issuer was not an affiliated investment of the Fund at September 30, 2022.
(4) Issuer is not an affiliated investment of the Fund at September 30, 2023.
I. Trustee Deferred Compensation Plan
  The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statements of Assets and Liabilities at September 30, 2023.
Note 4. Purchases and Sales of Securities
($ reported in thousands)
Purchases and sales of securities (excluding U.S. government and agency securities and short-term securities) during the year ended September 30, 2023, were as follows:
  Purchases   Sales
KAR Capital Growth Fund
 $ 62,199   $ 118,544
KAR Equity Income Fund
 38,470   49,627
KAR Global Quality Dividend Fund
 7,503   14,077
KAR Mid-Cap Core Fund
 683,409   314,061
KAR Mid-Cap Growth Fund
 198,701   528,690
KAR Small-Cap Core Fund
 169,582   255,169
KAR Small-Cap Growth Fund
 246,987   1,035,464
KAR Small-Cap Value Fund
 92,113   355,304
KAR Small-Mid Cap Core Fund
 351,160   199,714
KAR Small-Mid Cap Growth Fund
 4,320   1,034
KAR Small-Mid Cap Value Fund
 2,243   757
SGA Emerging Markets Growth Fund
 822   865
SGA Global Growth Fund
 26,046   48,020
SGA New Leaders Growth Fund
 1,848   1,282
Tactical Allocation Fund
 120,181   185,179
Purchases and sales of long-term U.S. government and agency securities during the year ended September 30, 2023, were as follows:
  Purchases   Sales
Tactical Allocation Fund
 $17,022   $9,849
Note 5. Capital Share Transactions
(reported in thousands)
Transactions in shares of capital stock, during the years ended as indicated below, were as follows:
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		417   $ 6,444   770   $ 17,644   432   $ 8,302   405   $ 8,289
Reinvestment of distributions 5,405   77,837   1,819   49,865   311   6,038   235   4,847
Shares repurchased and cross
class conversions 		(3,050)   (50,169)   (2,469)   (55,815)   (865)   (16,508)   (923)   (19,218)
Net Increase / (Decrease) 2,772   $ 34,112   120   $ 11,694   (122)   $ (2,168)   (283)   $ (6,082)
121

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  KAR Capital Growth Fund   KAR Equity Income Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class C                              
Shares sold and cross class
conversions 		35   $ 368   21   $ 336   115   $ 1,933   86   $ 1,489
Reinvestment of distributions 75   677   42   810   18   295   8   139
Shares repurchased and cross
class conversions 		(155)   (1,626)   (262)   (4,276)   (131)   (2,128)   (122)   (2,151)
Net Increase / (Decrease) (45)   $ (581)   (199)   $ (3,130)   2   $ 100   (28)   $ (523)
Class I                              
Shares sold and cross class
conversions 		297   $ 5,272   334   $ 7,742   844   $ 16,011   1,122   $ 22,576
Reinvestment of distributions 346   5,279   144   4,130   112   2,149   23   482
Shares repurchased and cross
class conversions 		(713)   (12,234)   (734)   (16,560)   (1,549)   (29,580)   (300)   (6,125)
Net Increase / (Decrease) (70)   $ (1,683)   (256)   $ (4,688)   (593)   $ (11,420)   845   $ 16,933
Class R6                              
Shares sold and cross class
conversions 		16   $ 267   54   $ 1,497   46   $ 867   46   $ 948
Reinvestment of distributions 15   235   4   111   6   119   3   66
Shares repurchased and cross
class conversions 		(15)   (257)   (15)   (364)   (37)   (684)   (14)   (289)
Net Increase / (Decrease) 16   $ 245   43   $ 1,244   15   $ 302   35   $ 725
    
  KAR Global Quality Dividend Fund   KAR Mid-Cap Core Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		78   $ 1,130   184   $ 2,751   851   $ 41,213   520   $ 25,809
Reinvestment of distributions 43   618   32   479   4   203   27   1,495
Shares repurchased and cross
class conversions 		(217)   (3,123)   (180)   (2,696)   (368)   (17,999)   (425)   (21,995)
Net Increase / (Decrease) (96)   $ (1,375)   36   $ 534   487   $ 23,417   122   $ 5,309
Class C                              
Shares sold and cross class
conversions 		6   $ 90   32   $ 466   299   $ 13,191   278   $ 12,955
Reinvestment of distributions 1   16   1   8   4   152   25   1,267
Shares repurchased and cross
class conversions 		(35)   (495)   (34)   (482)   (287)   (12,490)   (276)   (12,531)
Net Increase / (Decrease) (28)   $ (389)   (1)   $ (8)   16   $ 853   27   $ 1,691
Class I                              
Shares sold and cross class
conversions 		105   $ 1,510   606   $ 9,126   14,954   $ 751,349   11,088   $ 567,760
Reinvestment of distributions 24   346   27   401   57   2,728   362   20,844
Shares repurchased and cross
class conversions 		(442)   (6,335)   (588)   (8,830)   (8,184)   (405,459)   (8,189)   (403,477)
Net Increase / (Decrease) (313)   $ (4,479)   45   $ 697   6,827   $ 348,618   3,261   $ 185,127
122

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  KAR Global Quality Dividend Fund   KAR Mid-Cap Core Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class R6                              
Shares sold and cross class
conversions 		26   $ 370   43   $ 650   636   $ 32,626   194   $ 9,790
Reinvestment of distributions 5   76   3   51   1   59   16   950
Shares repurchased and cross
class conversions 		(39)   (558)   (12)   (184)   (416)   (20,700)   (548)   (26,492)
Net Increase / (Decrease) (8)   $ (112)   34   $ 517   221   $ 11,985   (338)   $ (15,752)
    
  KAR Mid-Cap Growth Fund   KAR Small-Cap Core Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		494   $ 24,011   994   $ 57,568   466   $ 19,466   297   $ 12,884
Reinvestment of distributions —   —   113   7,619   200   7,634   353   15,608
Shares repurchased and cross
class conversions 		(1,390)   (67,213)   (2,307)   (130,014)   (436)   (18,296)   (448)   (19,060)
Net Increase / (Decrease) (896)   $ (43,202)   (1,200)   $ (64,827)   230   $ 8,804   202   $ 9,432
Class C                              
Shares sold and cross class
conversions 		102   $ 3,735   209   $ 9,553   45   $ 1,359   29   $ 978
Reinvestment of distributions —   —   49   2,542   175   5,016   354   12,090
Shares repurchased and cross
class conversions 		(462)   (16,790)   (1,031)   (46,414)   (456)   (14,373)   (546)   (18,009)
Net Increase / (Decrease) (360)   $ (13,055)   (773)   $ (34,319)   (236)   $ (7,998)   (163)   $ (4,941)
Class I                              
Shares sold and cross class
conversions 		4,595   $ 232,426   8,605   $ 512,895   1,788   $ 81,556   2,597   $ 118,523
Reinvestment of distributions —   —   497   34,760   1,464   60,521   2,789   132,938
Shares repurchased and cross
class conversions 		(9,789)   (489,451)   (17,766)   (1,012,704)   (4,041)   (181,807)   (5,358)   (241,311)
Net Increase / (Decrease) (5,194)   $ (257,025)   (8,664)   $ (465,049)   (789)   $ (39,730)   28   $ 10,150
Class R6                              
Shares sold and cross class
conversions 		434   $ 22,006   965   $ 57,309   2,154   $ 96,191   1,513   $ 68,743
Reinvestment of distributions —   —   42   2,965   213   8,849   301   14,426
Shares repurchased and cross
class conversions 		(673)   (34,500)   (1,856)   (96,440)   (2,108)   (96,264)   (2,109)   (95,556)
Net Increase / (Decrease) (239)   $ (12,494)   (849)   $ (36,166)   259   $ 8,776   (295)   $ (12,387)
    
123

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  KAR Small-Cap Growth Fund   KAR Small-Cap Value Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		1,341   $ 41,857   1,190   $ 51,050   393   $ 8,752   573   $ 14,370
Reinvestment of distributions 2,069   58,361   1,914   89,148   128   2,728   79   2,220
Shares repurchased and cross
class conversions 		(3,596)   (111,969)   (4,451)   (183,422)   (893)   (19,506)   (1,012)   (25,277)
Net Increase / (Decrease) (186)   $ (11,751)   (1,347)   $ (43,224)   (372)   $ (8,026)   (360)   $ (8,687)
Class C                              
Shares sold and cross class
conversions 		137   $ 3,447   134   $ 4,975   28   $ 594   48   $ 1,196
Reinvestment of distributions 1,174   26,885   1,122   44,255   18   379   13   354
Shares repurchased and cross
class conversions 		(1,946)   (50,035)   (2,086)   (72,147)   (144)   (3,060)   (190)   (4,664)
Net Increase / (Decrease) (635)   $ (19,703)   (830)   $ (22,917)   (98)   $ (2,087)   (129)   $ (3,114)
Class I                              
Shares sold and cross class
conversions 		11,398   $ 372,477   13,019   $ 547,197   5,009   $ 110,446   8,696   $ 221,327
Reinvestment of distributions 11,769   347,075   12,565   606,256   1,009   21,459   713   20,021
Shares repurchased and cross
class conversions 		(29,413)   (972,772)   (39,045)   (1,637,063)   (16,896)   (370,392)   (15,860)   (392,909)
Net Increase / (Decrease) (6,246)   $ (253,220)   (13,461)   $ (483,610)   (10,878)   $ (238,487)   (6,451)   $ (151,561)
Class R6                              
Shares sold and cross class
conversions 		3,633   $ 121,597   1,270   $ 53,101   1,289   $ 27,926   763   $ 20,337
Reinvestment of distributions 745   22,106   533   25,848   34   713   39   1,088
Shares repurchased and cross
class conversions 		(1,766)   (58,708)   (1,318)   (55,871)   (832)   (18,359)   (2,129)   (51,910)
Net Increase / (Decrease) 2,612   $ 84,995   485   $ 23,078   491   $ 10,280   (1,327)   $ (30,485)
    
  KAR Small-Mid Cap Core Fund   KAR Small-Mid Cap Growth Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		1,359   $ 22,578   961   $ 16,434   416   $ 3,754   14   $ 123
Reinvestment of distributions —   —   31   598   —   —   —   —
Shares repurchased and cross
class conversions 		(700)   (11,037)   (1,051)   (17,254)   (107)   (982)   (25)   (230)
Net Increase / (Decrease) 659   $ 11,541   (59)   $ (222)   309   $ 2,772   (11)   $ (107)
Class C                              
Shares sold and cross class
conversions 		697   $ 10,931   587   $ 9,842   1   $ 6   2   $ 24
Reinvestment of distributions —   —   22   408   —   —   —   —
Shares repurchased and cross
class conversions 		(441)   (6,763)   (271)   (4,281)   (3)   (19)   (1)   (6)
Net Increase / (Decrease) 256   $ 4,168   338   $ 5,969   (2)   $ (13)   1   $ 18
124

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  KAR Small-Mid Cap Core Fund   KAR Small-Mid Cap Growth Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class I                              
Shares sold and cross class
conversions 		26,052   $ 424,769   31,319   $ 542,183   196   $ 1,770   180   $ 1,768
Reinvestment of distributions —   —   772   14,989   —   —   —   —
Shares repurchased and cross
class conversions 		(19,713)   (315,549)   (30,000)   (491,454)   (150)   (1,255)   (117)   (1,076)
Net Increase / (Decrease) 6,339   $ 109,220   2,091   $ 65,718   46   $ 515   63   $ 692
Class R6                              
Shares sold and cross class
conversions 		3,396   $ 56,960   616   $ 10,746   15   $ 137   44   $ 416
Reinvestment of distributions —   —   8   153   —   —   —   —
Shares repurchased and cross
class conversions 		(432)   (7,006)   (465)   (7,277)   (17)   (158)   (4)   (36)
Net Increase / (Decrease) 2,964   $ 49,954   159   $ 3,622   (2)   $ (21)   40   $ 380
    
  KAR Small-Mid Cap Value Fund   SGA Emerging Markets Growth Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		54   $ 453   81   $ 686   2   $ 19   — (1)   $ 2
Reinvestment of distributions — (1)   1   —   — (2)   —   —   — (1)   5
Shares repurchased and cross
class conversions 		(2)   (17)   (4)   (43)   (1)   (11)   (—) (1)   (6)
Net Increase / (Decrease) 52   $ 437   77   $ 643   1   $ 8   — (1)   $ 1
Class C                              
Shares sold and cross class
conversions 		— (1)   $ 1   — (1)   $ 1   9   $ 91   3   $ 32
Reinvestment of distributions —   —   —   —   —   —   — (1)   2
Shares repurchased and cross
class conversions 		(—) (1)   (1)   —   —   (4)   (43)   (5)   (48)
Net Increase / (Decrease) —   $ —   — (1)   $ 1   5   $ 48   (2)   $ (14)
Class I                              
Shares sold and cross class
conversions 		86   $ 746   52   $ 480   2   $ 19   2   $ 19
Reinvestment of distributions — (1)   2   — (1)   — (2)   —   —   2   18
Shares repurchased and cross
class conversions 		(4)   (38)   (9)   (81)   (6)   (58)   (8)   (84)
Net Increase / (Decrease) 82   $ 710   43   $ 399   (4)   $ (39)   (4)   $ (47)
Class R6                              
Shares sold and cross class
conversions 		38   $ 312   79   $ 729   1   $ 6   — (1)   $ 5
Reinvestment of distributions — (1)   2   —   —   —   —   34   359
Shares repurchased and cross
class conversions 		(—) (1)   (—) (2)   —   —   (16)   (143)   (—) (1)   (—) (2)
Net Increase / (Decrease) 38   $ 314   79   $ 729   (15)   $ (137)   34   $ 364
    
125

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  SGA Global Growth Fund   SGA New Leaders Growth Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022 		  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT   SHARES   AMOUNT
Class A                              
Shares sold and cross class
conversions 		93   $ 2,102   105   $ 2,694   1   $ 5   1   $ 10
Reinvestment of distributions 24   499   79   2,257   —   —   —   —
Shares repurchased and cross
class conversions 		(110)   (2,467)   (372)   (8,853)   (—) (1)   (1)   —   —
Net Increase / (Decrease) 7   $ 134   (188)   $ (3,902)   1   $ 4   1   $ 10
Class C                              
Shares sold and cross class
conversions 		8   $ 156   17   $ 411   —   $ —   —   $ —
Reinvestment of distributions 5   104   20   518   —   —   —   —
Shares repurchased and cross
class conversions 		(49)   (987)   (83)   (1,863)   —   —   (—) (1)   (2)
Net Increase / (Decrease) (36)   $ (727)   (46)   $ (934)   —   $ —   — (1)   $ (2)
Class I                              
Shares sold and cross class
conversions 		170   $ 3,857   347   $ 8,599   —   $ —   —   $ —
Reinvestment of distributions 31   642   120   3,430   —   —   —   —
Shares repurchased and cross
class conversions 		(868)   (18,398)   (511)   (13,097)   (5)   (37)   —   —
Net Increase / (Decrease) (667)   $ (13,899)   (44)   $ (1,068)   (5)   $ (37)   —   $ —
Class R6                              
Shares sold and cross class
conversions 		68   $ 1,596   106   $ 2,828   109   $ 803   281   $ 2,311
Reinvestment of distributions 59   1,288   173   5,122   —   —   —   —
Shares repurchased and cross
class conversions 		(352)   (8,272)   (129)   (3,255)   (37)   (261)   (—) (1)   (—) (2)
Net Increase / (Decrease) (225)   $ (5,388)   150   $ 4,695   72   $ 542   281   $ 2,311
    
  Tactical Allocation Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT
Class A              
Shares sold and cross class
conversions 		1,407   $ 13,151   1,763   $ 21,058
Reinvestment of distributions 4,356   38,261   4,277   55,565
Shares repurchased and cross
class conversions 		(8,307)   (78,405)   (7,747)   (89,303)
Net Increase / (Decrease) (2,544)   $ (26,993)   (1,707)   $ (12,680)
Class C              
Shares sold and cross class
conversions 		89   $ 857   130   $ 1,585
Reinvestment of distributions 79   709   144   1,924
Shares repurchased and cross
class conversions 		(584)   (5,584)   (1,271)   (15,093)
Net Increase / (Decrease) (416)   $ (4,018)   (997)   $ (11,584)
126

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  Tactical Allocation Fund
  Year Ended
September 30, 2023 		  Year Ended
September 30, 2022
  SHARES   AMOUNT   SHARES   AMOUNT
Class I              
Shares sold and cross class
conversions 		456   $ 4,352   777   $ 9,619
Reinvestment of distributions 209   1,829   299   3,867
Shares repurchased and cross
class conversions 		(1,171)     (11,022)     (1,951)     (21,786)  
Net Increase / (Decrease) (506)   $ (4,841)   (875)   $ (8,300)
Class R6              
Shares sold and cross class
conversions 		159   $ 1,573   — (1)   $ 4
Reinvestment of distributions 2   14   — (1)   — (2)
Shares repurchased and cross
class conversions 		(7)     (71)     (—)  (1)   (—)  (2)
Net Increase / (Decrease) 154   $ 1,516   — (1)   $ 4
(1) Amount is less than 500 shares (not in thousands).
(2) Amount is less than $500 (not in thousands).
Note 6. 10% Shareholders
As of September 30, 2023, certain Funds had individual shareholder account(s) and/or omnibus shareholder account(s) (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of such Fund as detailed below:
  % of Shares
Outstanding 		  Number of
Accounts
KAR Global Quality Dividend Fund
 16 %   1
KAR Mid-Cap Core Fund
 50   4
KAR Mid-Cap Growth Fund
 25   2
KAR Small-Cap Core Fund
 26   2
KAR Small-Cap Growth Fund
 21   2
KAR Small-Cap Value Fund
 31   1
KAR Small-Mid Cap Core Fund
 47   3
KAR Small-Mid Cap Growth Fund
 73   3 *
KAR Small-Mid Cap Value Fund
 91   4 *
SGA Emerging Markets Growth Fund
 70   3
SGA Global Growth Fund
 36   2
SGA New Leaders Growth Fund
 84   2 *
* Includes affiliated shareholder account(s).
Note 7.  Credit and Market Risk and Asset Concentration
In July 2017, the head of the United Kingdom Financial Conduct Authority (“FCA”) announced the intention to phase out the use of LIBOR by the end of 2021. However, after subsequent announcements by the FCA, the LIBOR administrator and other regulators, certain of the most widely used LIBORs continued until June 30, 2023. The ICE Benchmark Administration Limited, which is regulated and authorized by FCA, and the administrator of LIBOR, ceased publishing certain LIBOR settings on December 31, 2021. On April 3, 2023, the FCA announced its decision to require LIBOR’s administrator to continue to publish the 1-month, 3-month, and 6-month U.S. dollar settings under an unrepresentative synthetic methodology until September 30, 2024. On March 15, 2022, the Adjustable Interest Act (LIBOR) Act (the “LIBOR Act”) was enacted into law which directs the Federal Reserve Board, as a fallback mechanism, to identify benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2023. On December 16, 2022, the Federal Reserve adopted regulations implementing the LIBOR Act. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The discontinuation of LIBOR could have a significant impact on the financial markets and may present a material risk for certain market participants, including the Funds. Abandonment of or modifications to LIBOR could lead to significant short- and long-term uncertainty and market instability. The risks associated with this
discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in
a timely manner. It remains uncertain the effects such changes will have on the Funds, issuers of instruments in which the Funds invest, and the
financial markets generally.
127

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
Local, regional or global events such as war or military conflict, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on a Fund and its investments, including hampering the ability of each Fund’s portfolio manager(s) to invest each Fund’s assets as intended.
Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Since these markets are often small, they may be more likely to suffer sharp and frequent price changes or long-term price depression because of adverse publicity, investor perceptions or the actions of a few large investors. They may also have policies that restrict investment by foreigners, or that prevent foreign investors from withdrawing their money at will.
Certain emerging markets may also face other significant internal or external risks, including the risk of war and civil unrest. Each of these factors can affect the value and liquidity of the assets of a Fund. Failure to generate adequate earnings from foreign trade would make it difficult for an emerging market country to service foreign debt. Disruptions resulting from social and political factors may cause the securities markets of emerging market countries to close. If this were to occur, the liquidity and value of a Fund’s assets invested in corporate debt obligations of emerging market companies would decline.
The imposition of sanctions, exchange controls (including repatriation restrictions), confiscation of assets and property, trade restrictions (including tariffs) and other government restrictions by the U.S. or other governments, or from problems in registration, settlement or custody, may also result in losses. The type and severity of sanctions and other similar measures, including counter sanctions and other retaliatory actions, that may be imposed could vary broadly in scope, and their impact is impossible to predict. For example, the imposition of sanctions and other similar measures could, among other things, cause a decline in the value and/or liquidity of securities issued by the sanctioned country or companies located in or economically tied to the sanctioned country and increase market volatility and disruption in the sanctioned country and throughout the world. Sanctions and other similar measures could limit or prevent a Fund from buying and selling securities (in the sanctioned country and other markets), significantly delay or prevent the settlement of securities transactions, and significantly impact a Fund’s liquidity and performance.
Sanctions threatened or imposed may result in a decline in the value and liquidity of a Fund’s assets. The securities of a Fund may be deemed to have a zero value. A Fund may make investments that are illiquid or that may become less liquid in response to market developments or adverse investor perceptions. Illiquid investments may be more difficult to value. Liquidity risk may also refer to the risk that a Fund will not be able to pay redemption proceeds within the allowable time period or without significant dilution to remaining investors’ interests because of unusual market conditions, an unusually high volume of redemption requests, or other reasons. To meet redemption requests, a Fund may be forced to sell investments at an unfavorable time and/or under unfavorable conditions. If a Fund is forced to sell securities at an unfavorable time and/or under unfavorable conditions, such sales may adversely affect a Fund’s NAV and dilute remaining investors’ interests. Liquidity risk may be the result of, among other things, the reduced number and capacity of traditional market participants to make a market in fixed income securities or the lack of an active market. The potential for liquidity risk may be magnified by a rising interest rate environment or other circumstances where investor redemptions from fixed income funds may be higher than normal, potentially causing increased supply in the market due to selling activity. These risks may be more pronounced in connection with a Fund’s investments in securities of issuers located in emerging market countries. Redemptions by large shareholders may have a negative impact on a Fund’s liquidity.
For all these reasons, investments in emerging markets may be considered speculative. To the extent that a Fund invests a significant portion of its assets in a particular emerging market, the Fund will be more vulnerable to financial, economic, political and other developments in that country, and conditions that negatively impact that country will have a greater impact on the Fund as compared with a fund that does not have its holdings concentrated in a particular country.
High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or Subadviser to accurately predict risk.
Certain Funds may invest a high percentage of their assets in specific sectors of the market in the pursuit of their investment objectives. Fluctuations in these sectors of concentration may have a greater impact on a Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.
At September 30, 2023, the following Funds held securities issued by various companies in specific sectors as detailed below: 
  Sector   Percentage of
Total Investments
KAR Capital Growth Fund
 Information Technology   31%
KAR Mid-Cap Core Fund
 Industrials   35
KAR Small-Cap Core Fund
 Industrials   47
KAR Small-Cap Growth Fund
 Financials   34
KAR Small-Cap Value Fund
 Industrials   37
KAR Small-Cap Value Fund
 Financials   26
KAR Small-Mid Cap Core Fund
 Industrials   29
KAR Small-Mid Cap Core Fund
 Information Technology   26
KAR Small-Mid Cap Value Fund
 Industrials   36
128

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
  Sector   Percentage of
Total Investments
SGA Emerging Markets Growth Fund
 Consumer Staples   36
SGA Global Growth Fund
 Information Technology   25
Note 8.  Indemnifications
Under the Trust’s organizational documents and in separate agreements between each Trustee and the Trust, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust and its funds. In addition, in the normal course of business, the Trust and the Funds enter into contracts that provide a variety of indemnifications to other parties. The Trust’s and/or the Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust or the Funds and that have not occurred. However, neither the Trust nor the Funds have had prior claims or losses pursuant to these arrangements, and they expect the risk of loss to be remote.
Note 9. Restricted Securities
($ reported in thousands)
Restricted securities are not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category. Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.
The following Fund held securities that were considered to be restricted at September 30, 2023:
Fund   Investment   Date of
Acquisition 		  Cost   Value   Percentage of
Net Assets
KAR Mid-Cap Growth Fund
   Security Scorecard, Inc. Series E   3/5/2021   $40,000   $25,097   1.7%
Note 10. Redemption Facility
($ reported in thousands)
On September 18, 2017, the Funds and certain other affiliated funds entered into a $150,000 unsecured line of credit (“Credit Agreement”). On June 14, 2021, the Credit Agreement was increased to $250,000. This Credit Agreement, as amended, is with a commercial bank that allows the Funds to borrow cash from the bank to manage large unexpected redemptions and trade fails, up to a limit of one-third or one-fifth, as applicable, of each Fund’s total net assets in accordance with the terms of the agreement. This Credit Agreement has a term of 364 days and has been renewed for a period up to July 6, 2024. Effective March 10, 2022, interest is charged at the higher of the SOFR (prior to effective date, LIBOR) or the Federal Funds rate plus an additional percentage rate on the amount borrowed. Commitment fees are charged on the undrawn balance. Total commitment fees paid for the year ended September 30, 2023, are included in the “Interest expense and/or commitment fees” line on the Statements of Operations. The Funds and other affiliated funds that are parties are individually, and not jointly, liable for their particular advances, if any, under the Credit Agreement. The lending bank has the ability to require repayment of outstanding borrowings under this Credit Agreement upon certain circumstances such as an event of default. At September 30, 2023, the Funds did not have outstanding borrowings.
The following Funds had outstanding loans during the year. The borrowings were valued at cost, which approximates fair value.
Fund   Interest
Incurred on
Borrowing 		  Average
Borrowing 		  Weighted Average
Interest Rate 		  Days
Outstanding
KAR Equity Income Fund
   $ 1   $ 4,800   5.40%   1
KAR Mid-Cap Growth Fund
   3   3,200   5.91   5
KAR Small-Cap Growth Fund
   90   40,113   5.40   15
KAR Small-Cap Value Fund
   28   43,000   5.84   4
KAR Small-Mid Cap Core Fund
   2   3,425   5.40   4
SGA Global Growth Fund
   1   2,400   4.13   4
Note 11. Federal Income Tax Information
($ reported in thousands)
At September 30, 2023, the approximate aggregate cost basis and the unrealized appreciation (depreciation) of investments and other financial instruments for federal income tax purposes were as follows:
129

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
Fund   Federal
Tax Cost 		  Unrealized
Appreciation 		  Unrealized
(Depreciation) 		  Net Unrealized
Appreciation
(Depreciation)
KAR Capital Growth Fund
   $ 242,035   $ 293,886   $ (21,274)   $ 272,612
KAR Equity Income Fund
   120,760   13,420   (9,465)   3,955
KAR Global Quality Dividend Fund
   30,615   3,824   (3,395)   429
KAR Mid-Cap Core Fund
   1,489,385   353,438   (41,816)   311,622
KAR Mid-Cap Growth Fund
   989,705   536,275   (52,409)   483,866
KAR Small-Cap Core Fund
   1,016,476   742,236   (36,848)   705,388
KAR Small-Cap Growth Fund
   2,250,078   1,262,303   (302,511)   959,792
KAR Small-Cap Value Fund
   478,606   281,401   (58,800)   222,601
KAR Small-Mid Cap Core Fund
   1,212,909   166,854   (91,993)   74,861
KAR Small-Mid Cap Growth Fund
   9,016   1,063   (1,093)   (30)
KAR Small-Mid Cap Value Fund
   6,180   313   (775)   (462)
SGA Emerging Markets Growth Fund
   4,577   730   (675)   55
SGA Global Growth Fund
   88,616   27,581   (5,791)   21,790
SGA New Leaders Growth Fund
   7,345   612   (955)   (343)
Tactical Allocation Fund
   486,540   159,297   (60,583)   98,714
Certain Funds have capital loss carryforwards available to offset future realized capital gains, if any, to the extent permitted by the Code. Net capital losses are carried forward without expiration and generally retain their short-term and/or long-term tax character, as applicable. For the year ended September 30, 2023, the Funds’ capital loss carryovers were as follows:
Fund   Short-Term   Long-Term
KAR Global Quality Dividend Fund
   $ 123   $ —
KAR Mid-Cap Growth Fund
   28,043   —
KAR Small-Mid Cap Core Fund
   7,783   —
KAR Small-Mid Cap Growth Fund
   172   229
KAR Small-Mid Cap Value Fund
   18   23
SGA Emerging Markets Growth Fund
   267   88
SGA Global Growth Fund
   854   1,028
SGA New Leaders Growth Fund
   392   577
Tactical Allocation Fund
   25,683   —
The components of distributable earnings on a tax basis and certain tax attributes for the Funds consist of the following:
Fund   Undistributed
Ordinary
Income 		  Undistributed
Long-Term
Capital Gains 		  Late Year
Ordinary Losses
Deferred 		  Post-October
Capital Loss
Deferred 		  Capital Loss
Deferred
KAR Capital Growth Fund
   $ —   $ 28,773   $ 1,860   $ —   $ —
KAR Equity Income Fund
   2,999   —   —   181   —
KAR Global Quality Dividend Fund
   212   —   —   103   123
KAR Mid-Cap Core Fund
   —   53,135   —   —   —
KAR Mid-Cap Growth Fund
   —   —   5,550   116,647   28,043
KAR Small-Cap Core Fund
   10,556   66,366   —   —   —
KAR Small-Cap Growth Fund
   —   171,797   8,084   —   —
KAR Small-Cap Value Fund
   4,055   18,506   —   —   —
KAR Small-Mid Cap Core Fund
   —   —   305   —   7,783
KAR Small-Mid Cap Growth Fund
   —   —   27   195   401
KAR Small-Mid Cap Value Fund
   35   —   —   42   41
SGA Emerging Markets Growth Fund
   32   —   —   122   355
SGA Global Growth Fund
   —   —   112   1,063   1,882
SGA New Leaders Growth Fund
   —   —   3   709   969
Tactical Allocation Fund
   1,861   4,626   —   —   25,683
The differences between the book and tax basis of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term gain distributions, if any, are reported as ordinary income for federal tax purposes. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.
130

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
The tax character of dividends and distributions paid during the fiscal periods ended September 30, 2023 and 2022, was as follows:
  Ordinary
Income 		  Long-Term
Capital Gains 		  Total
KAR Capital Growth Fund
          
9/30/23
 $ —   $ 90,200   $ 90,200
9/30/22
 —   58,850   58,850
KAR Equity Income Fund
          
9/30/23
 3,870   5,140   9,010
9/30/22
 5,650   200   5,850
KAR Global Quality Dividend Fund
          
9/30/23
 1,104   —   1,104
9/30/22
 975   —   975
KAR Mid-Cap Core Fund
          
9/30/23
 —   3,170   3,170
9/30/22
 4,839   19,906   24,745
KAR Mid-Cap Growth Fund
          
9/30/22
 —   48,521   48,521
KAR Small-Cap Core Fund
          
9/30/23
 5,370   96,110   101,480
9/30/22
 3,960   220,000   223,960
KAR Small-Cap Growth Fund
          
9/30/23
 —   497,800   497,800
9/30/22
 —   827,000   827,000
KAR Small-Cap Value Fund
          
9/30/23
 5,000   23,500   28,500
9/30/22
 21,865   4,295   26,160
KAR Small-Mid Cap Core Fund
          
9/30/22
 6,800   9,420   16,220
KAR Small-Mid Cap Value Fund
          
9/30/23
 18   —   18
9/30/22
 11   —   11
SGA Emerging Markets Growth Fund
          
9/30/22
 —   420   420
SGA Global Growth Fund
          
9/30/23
 —   2,655   2,655
9/30/22
 3,846   7,504   11,350
Tactical Allocation Fund
          
9/30/23
 7,400   36,600   44,000
9/30/22
 33,235   32,710   65,945
Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. Permanent reclassifications can arise from differing treatment of certain income and gain transactions and nondeductible current year net operating losses. These adjustments have no impact on net assets or net asset value per share of the Funds. Temporary differences that arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will likely reverse at some time in the future.
Note 12. Regulatory Matters and Litigation
From time to time, the Trust, the Funds, the Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their activities. At this time, the Adviser believes that the outcomes of such matters are not likely, either individually or in aggregate, to be material to these financial statements.
Note 13. Recent Accounting Pronouncement
In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04 (“ASU 2020-04”), Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered reference rates as of the end of 2021. In March 2021, the administrator for LIBOR announced the extension of the publication of a majority of the USD LIBOR settings to June 30, 2023. On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management is currently evaluating ASU 2020-04 and ASU 2020-06, but does not believe there will be a material impact.
131

VIRTUS EQUITY TRUST NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2023
Note 14. New Regulatory Pronouncement
In October 2022, the SEC adopted a rule and form amendments relating to tailored shareholder reports for mutual funds and ETFs; and fee information in investment company advertisements. The rule and form amendments will require mutual funds and ETFs to transmit streamlined shareholder reports that highlight key information to investors. The rule amendments will require that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective in January 2023 and there is an 18-month transition period after the effective date of the amendment with a compliance date of July 2024.
Note 15. Subsequent Events
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance, and has determined that the following are subsequent events requiring recognition or disclosure in these financial statements:
On November 15, 2023, the Board voted to approve:
     •  A Plan of Liquidation for each of Virtus SGA Emerging Markets Growth Fund and Virtus SGA New Leaders Growth Fund, pursuant to which each such Fund will be liquidated on or about December 28, 2023.
     •  An Agreement and Plan of Reorganization, pursuant to which Virtus Vontobel Global Opportunities Fund (the “Acquired Fund”), a series of Virtus Opportunities Trust, will reorganize with and into Virtus SGA Global Growth Fund (the “Acquiring Fund”), a series of the Trust, on or about March 8, 2024. Effective upon consummation of the reorganization, the Acquiring Fund’s investment adviser, Virtus Investment Advisers, Inc., will implement the following new expense limitation arrangement to further limit the Fund’s expenses: Class A: 1.25%; Class C: 2.00%; Class I: 1.00%; and Class R6: 0.90%.See Note 3 for information about the Funds’ expense limitation arrangements.
Pursuant to the Agreement and Plan of Reorganization, the Acquired Fund will transfer all or substantially all of its assets to the Acquiring Fund in exchange for shares of the Acquiring Fund and the assumption by the Acquiring Fund of all liabilities of the Acquired Fund. Following the exchange, the Acquired Fund will distribute the shares of the Acquiring Fund to its shareholders pro rata, in liquidation of the Acquired Fund, and shareholders of the Acquired Fund will therefore become shareholders of the Acquiring Fund. The reorganization meets the requirements of Rule 17a-8 under the 1940 Act for a merger of affiliated funds for which shareholder approval is not required.
132

Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Virtus Equity Trust and Shareholders of Virtus KAR Capital Growth Fund, Virtus KAR Equity Income Fund, Virtus KAR Global Quality Dividend Fund, Virtus KAR Mid-Cap Core Fund, Virtus KAR Mid-Cap Growth Fund, Virtus KAR Small-Cap Core Fund, Virtus KAR Small-Cap Growth Fund, Virtus KAR Small-Cap Value Fund, Virtus KAR Small-Mid Cap Core Fund, Virtus KAR Small-Mid Cap Growth Fund, Virtus KAR Small-Mid Cap Value Fund, Virtus SGA Emerging Markets Growth Fund, Virtus SGA Global Growth Fund, Virtus SGA New Leaders Growth Fund and Virtus Tactical Allocation Fund.
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Virtus KAR Capital Growth Fund, Virtus KAR Equity Income Fund, Virtus KAR Global Quality Dividend Fund, Virtus KAR Mid-Cap Core Fund, Virtus KAR Mid-Cap Growth Fund, Virtus KAR Small-Cap Core Fund, Virtus KAR Small-Cap Growth Fund, Virtus KAR Small-Cap Value Fund, Virtus KAR Small-Mid Cap Core Fund, Virtus KAR Small-Mid Cap Growth Fund, Virtus KAR Small-Mid Cap Value Fund, Virtus SGA Emerging Markets Growth Fund, Virtus SGA Global Growth Fund, Virtus SGA New Leaders Growth Fund and Virtus Tactical Allocation Fund (constituting Virtus Equity Trust, hereafter collectively referred to as the “Funds”) as of September 30, 2023, the related statements of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2023 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2023 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 27, 2023
We have served as the auditor of one or more investment companies in Virtus Mutual Funds since at least 1977. We have not been able to determine the specific year we began serving as auditor.
133

VIRTUS EQUITY TRUST
TAX INFORMATION NOTICE (Unaudited)
September 30, 2023
The following information ($ reported in thousands) is being provided in order to meet reporting requirements set forth by the Code and/or to meet state specific requirements. In early 2024, the Funds will notify applicable shareholders of amounts for use in preparing 2023 U.S. federal income tax forms. Shareholders should consult their tax advisors.
With respect to distributions paid during the fiscal year ended September 30, 2023, the Funds designate the following amounts (or, if subsequently determined to be different, the maximum amount allowable):
Fund   Qualified
Dividend
Income %
(non-corporate
shareholder) 		  Dividend
Received
Deduction %
(corporate
shareholders) 		  Long-Term
Capital Gain
Distributions ($)
KAR Capital Growth Fund
   — %   — %   $ 32,023
KAR Equity Income Fund
   100.00   100.00   188
KAR Global Quality Dividend Fund
   100.00   50.76   —
KAR Mid-Cap Core Fund
   —   —   56,305
KAR Mid-Cap Growth Fund
   —   —   —
KAR Small-Cap Core Fund
   100.00   100.00   66,387
KAR Small-Cap Growth Fund
   —   —   211,256
KAR Small-Cap Value Fund
   100.00   100.00   27,572
KAR Small-Mid Cap Core Fund
   —   —   —
KAR Small-Mid Cap Growth Fund
   —   —   —
KAR Small-Mid Cap Value Fund
   100.00   100.00   —
SGA Emerging Markets Growth Fund
   100.00   4.82   —
SGA Global Growth Fund
   —   —   —
SGA New Leaders Growth Fund
   —   —   —
Tactical Allocation Fund
   50.95   24.38   4,632
    
  Foreign Source
Income
Recognized 		  Foreign Taxes
Paid on
Foreign
Source
Income
KAR Global Quality Dividend Fund
 $ 1,051   $ 114
SGA Emerging Markets Growth Fund
 87   7
134

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program (the “Program”) to govern the Funds’ approach to managing liquidity risk, which is the risk that a Fund would not be able to meet redemption requests without significant dilution of remaining investors’ interests in the Fund. The Program is overseen by the Adviser as the Funds’ Liquidity Risk Management Program Administrator (the “Program Administrator”), and the Program’s principal objectives include assessing, managing and periodically reviewing each Fund’s liquidity risk, based on factors specific to the circumstances of the Funds. Assessment and management of a Fund’s liquidity risk under the Program take into consideration certain factors, such as the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flow projections during both normal and reasonably foreseeable stressed conditions, and its cash and cash-equivalent holdings and access to other funding sources. As required by the rule, the Program includes policies and procedures for classification of Fund portfolio holdings in four liquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings of illiquid investments.
At a meeting of the Board held on May 22-24, 2023, the Board received a report from the Program Administrator addressing the operation and management of the Program for calendar year 2022 (the “Review Period”). The Program Administrator’s report noted that for the Review Period, the Program Administrator believed that the Program was implemented and operated effectively in all material respects and that existing procedures, controls and safeguards were appropriately designed to enable the Program Administrator to administer the Program in compliance with Rule 22e-4. The Program Administrator’s report noted that during the Review Period, there were no events that created liquidity related concerns for the Funds. The Program Administrator’s report further noted that while changes to the Program had been made during the Review Period and reported to the Board, no material changes were made to the Program as a result of the Program Administrator’s annual review.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to a Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in that Fund may be subject.
135

FUND MANAGEMENT TABLES (Unaudited)
Information pertaining to the Trustees and officers of the Trust as of the date of issuance of this report, is set forth below. The statement of additional information (SAI) includes additional information about the Trustees and is available without charge, upon request, by calling (800) 243-4361.
The address of each individual, unless otherwise noted, is c/o Virtus Equity Trust, One Financial Plaza, Hartford, CT 06103. There is no stated term of office for Trustees or officers of the Trust.
Independent Trustees
Name, Year of Birth,
Length of Time Served
and Number of
Portfolios in Fund
Complex Overseen by
Trustee 		Principal Occupation(s) During Past 5 Years Other Directorships Held by Trustee During Past 5 Years
Burke, Donald C.
YOB: 1960
Served Since: 2016
107 Portfolios 		Private investor (since 2009). Formerly, President and Chief Executive Officer, BlackRock U.S. Funds (2007 to 2009); Managing Director, BlackRock, Inc. (2006 to 2009); and Managing Director, Merrill Lynch Investment Managers (1990 to 2006). Trustee (since May 2023) and Advisory Board Member (May 2023), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Advisory Board Member (since May 2023), Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II and Virtus Diversified Income & Convertible Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2014), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director, Avista Corp. (energy company) (since 2011); Trustee, Goldman Sachs Fund Complex (2010 to 2014); and Director, BlackRock Luxembourg and Cayman Funds (2006 to 2010).
Cogan, Sarah E.
YOB: 1956
Served Since: 2022
104 Portfolios 		Retired Partner, Simpson Thacher & Bartlett LLP (“STB”) (law firm) (since 2019); Director, Girl Scouts of Greater New York (since 2016); Trustee, Natural Resources Defense Council, Inc. (since 2013); and formerly, Partner, STB (1989 to 2018). Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (56 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), PIMCO Access Income Fund and PIMCO California Flexible Municipal Income Fund; Trustee (since 2021), PIMCO Flexible Emerging Markets Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2019), PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PIMCO Energy and Tactical Credit Opportunities Fund, PCM Fund, Inc, PIMCO Corporate & Income Strategy Fund, PIMCO Corporate & Income Opportunity Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS® & Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Strategic Income Fund, Inc., PIMCO Flexible Credit Income Fund and PIMCO Flexible Municipal Income Fund; Trustee (since 2019), PIMCO Managed Accounts Trust (5 portfolios); and Trustee (2019 to 2021), PIMCO Dynamic Credit and Mortgage Income Fund and PIMCO Income Opportunity Fund.
136

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time Served
and Number of
Portfolios in Fund
Complex Overseen by
Trustee 		Principal Occupation(s) During Past 5 Years Other Directorships Held by Trustee During Past 5 Years
DeCotis, Deborah A.
YOB: 1952
Served Since: 2022
104 Portfolios 		Director, Cadre Holdings Inc. (since 2022); Advisory Director, Morgan Stanley & Co., Inc. (since 1996); Member, Circle Financial Group (since 2009); Member, Council on Foreign Relations (since 2013); and Trustee, Smith College (since 2017). Formerly, Director, Watford Re (2017 to 2021); Co-Chair Special Projects Committee, Memorial Sloan Kettering (2005 to 2015); and Trustee, Stanford University (2010 to 2015). Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (56 portfolios) and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), PIMCO Access Income Fund and PIMCO California Flexible Municipal Income Fund; Trustee (since 2021), PIMCO Flexible Emerging Markets Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), and Virtus Global Multi-Sector Income Fund; Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2020), PIMCO Dynamic Income Opportunities Fund; Trustee (since 2019), PIMCO Energy and Tactical Credit Opportunities Fund and Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2018), PIMCO Flexible Municipal Income Fund; Trustee (since 2017), PIMCO Flexible Credit Income Fund and Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Diversified Income & Convertible Fund; Trustee (since 2014), Virtus Investment Trust (13 portfolios); Trustee (2013 to 2021), PIMCO Dynamic Credit and Mortgage Income Fund; Trustee (since 2012), PIMCO Dynamic Income Fund; Trustee (since 2011), Virtus Strategy Trust (8 portfolios); Trustee (since 2011), PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund, Inc., PIMCO Corporate & Income Strategy Fund, PIMCO Corporate & Income Opportunity Fund, PIMCO Global StocksPLUS® & Income Fund, PIMCO High Income Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II, PIMCO Strategic Income Fund, Inc., and PIMCO Managed Accounts Trust (5 portfolios); Trustee (since 2011), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; and Trustee (2011 to 2021), PIMCO Income Opportunity Fund.
Drummond, F. Ford
YOB: 1962
Served Since: 2022
104 Portfolios 		President (since 1998), F.G. Drummond Ranches, Inc.; and Director (since 2015), Texas and Southwestern Cattle Raisers Association. Formerly Chairman, Oklahoma Nature Conservancy (2019 to 2020); Board Member (2006 to 2020) and Chairman (2016 to 2018), Oklahoma Water Resources Board; Trustee (since 2014), Frank Phillips Foundation; Director (1998 to 2008), The Cleveland Bank; and General Counsel (1998 to 2008), BMIHealth Plans (benefits administration). Trustee (since 2022) and Advisory Board Member (2021 to 2022), Virtus Alternative Solutions Trust (4 portfolios), Virtus Mutual Fund Family (56 portfolios), and Virtus Variable Insurance Trust (8 portfolios); Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, and Virtus Event Opportunities Trust (2 portfolios);Advisory Board Member (February 2021 to June 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2021), Virtus Global Multi-Sector Income Fund; Director (since 2021), Virtus Total Return Fund Inc.; Trustee (since 2019), Virtus Artificial Intelligence & Technology Opportunities Fund; Trustee (since 2017), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2015), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2014), Virtus Strategy Trust (8 portfolios); Director (since 2011), Bancfirst Corporation; and Trustee (since 2006), Virtus Investment Trust (13 portfolios).
137

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time Served
and Number of
Portfolios in Fund
Complex Overseen by
Trustee 		Principal Occupation(s) During Past 5 Years Other Directorships Held by Trustee During Past 5 Years
Harris, Sidney E.
YOB: 1949
Served Since: 2017
97 Portfolios 		Private Investor (since 2021); Dean Emeritus (since 2015), Professor (2015 to 2021 and 1997 to 2014), and Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University. Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2019), Mutual Fund Directors Forum; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (4 portfolios); Trustee (2013 to 2020) and Honorary Trustee (since 2020), KIPP Metro Atlanta; Director (1999 to 2019), Total System Services, Inc.; Trustee (2004 to 2017), RidgeWorth Funds; Chairman (2012 to 2017), International University of the Grand Bassam Foundation; Trustee (since 2012), International University of the Grand Bassam Foundation; and Trustee (2011 to 2015), Genspring Family Offices, LLC.
Mallin, John R.
YOB: 1950
Served Since: 2016
97 Portfolios 		Partner/Attorney (since 2003), McCarter & English LLP (law firm) Real Property Practice Group; and Member (2014 to 2022), Counselors of Real Estate. Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios) and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2019), 1892 Club, Inc. (non-profit); Director (2013 to 2020), Horizons, Inc. (non-profit); and Trustee (since 1999), Virtus Variable Insurance Trust (8 portfolios).
McDaniel, Connie D.
YOB: 1958
Served Since: 2017
104 Portfolios 		Retired (since 2013). Vice President, Chief of Internal Audit, Corporate Audit Department (2009 to 2013); Vice President, Global Finance Transformation (2007 to 2009); and Vice President and Controller (1999 to 2007), The Coca-Cola Company. Trustee (since May 2023) and Advisory Board Member (May 2023), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Dividend, Interest & Premium Strategy Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Director (since 2019), Global Payments Inc.; Chairperson (since 2021), Governance & Nominating Committee, Global Payments Inc; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (4 portfolios); Director (since 2021), North Florida Land Trust; Director (2014 to 2019), Total System Services, Inc.; Member (2011 to 2022) and Chair (2014 to 2016), Georgia State University, Robinson College of Business Board of Advisors; and Trustee (2005 to 2017), RidgeWorth Funds.
138

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time Served
and Number of
Portfolios in Fund
Complex Overseen by
Trustee 		Principal Occupation(s) During Past 5 Years Other Directorships Held by Trustee During Past 5 Years
McLoughlin, Philip
YOB: 1946
Served Since: 1993
107 Portfolios 		Private investor since 2010. Trustee and Chairman (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Chairman (since 2023) and Trustee (since 2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund and Virtus Dividend, Interest & Premium Strategy Fund; Chairman (since 2023), Trustee (since 2022) and Advisory Board Member (2021), Virtus Convertible & Income 2024 Target Term Fund and Virtus Convertible & Income Fund; Director and Chairman (since 2016), Virtus Total Return Fund Inc.; Director and Chairman (2016 to 2019), the former Virtus Total Return Fund Inc.; Director and Chairman (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and Chairman (since 2013), Virtus Alternative Solutions Trust (4 portfolios); Trustee and Chairman (since 2011), Virtus Global Multi-Sector Income Fund; Chairman and Trustee (since 2003), Virtus Variable Insurance Trust (8 portfolios); Director (since 1995), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); Director (1991 to 2019) and Chairman (2010 to 2019), Lazard World Trust Fund (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (56 portfolios).
McNamara, Geraldine M.
YOB: 1951
Served Since: 2001
107 Portfolios 		Private investor (since 2006); and Managing Director, U.S. Trust Company of New York (1982 to 2006). Trustee (since May 2023) and Advisory Board Member (January 2023 to May 2023), Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2023), Virtus Artificial Intelligence & Technology Opportunities Fund and Virtus Equity & Convertible Income Fund; Advisory Board Member (since 2023), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Director (2020 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Director (since 2020), Virtus Total Return Fund Inc.; Trustee (since 2020), Virtus Global Multi-Sector Income Fund; Trustee (since 2016) Virtus Alternative Solutions Trust (4 portfolios); Trustee (since 2015), Virtus Variable Insurance Trust (8 portfolios); Director (since 2003), closed-end funds managed by Duff & Phelps Investment Management Co. (3 funds); and Trustee (since 2001), Virtus Mutual Fund Family (56 portfolios).
Walton, R. Keith
YOB: 1964
Served Since: 2020
104 Portfolios 		Senior Adviser (since 2022), Brightwood Capital LLC; Venture and Operating Partner (since 2020), Plexo Capital, LLC; Venture Partner (since 2019) and Senior Adviser (2018 to 2019), Plexo, LLC; and Partner (since 2006), Global Infrastructure Partners. Formerly, Managing Director (2020 to 2021), Lafayette Square Holding Company LLC; Senior Adviser (2018 to 2019), Vatic Labs, LLC; Executive Vice President, Strategy (2017 to 2019), Zero Mass Water, LLC; and Vice President, Strategy (2013 to 2017), Arizona State University. Trustee (since 2023) and Advisory Board Member (2022 to 2023), Virtus Convertible & Income 2024 Target Term Fund; Trustee (since 2023) and Advisory Board Member (2022 to 2023), Virtus Convertible & Income Fund II and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2022) and Advisory Board Member (January 2022 to July 2022), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income Fund and Virtus Equity & Convertible Income Fund; Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2022), Virtus Diversified Income & Convertible Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2020) Virtus Alternative Solutions Trust (4 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (56 portfolios); Director (since 2017), certain funds advised by Bessemer Investment Management LLC; Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (2006 to 2019), Systematica Investments Limited Funds; Director (2006 to 2017), BlueCrest Capital Management Funds; Trustee (2014 to 2017), AZ Service; Director (since 2004), Virtus Total Return Fund Inc.; and Director (2004 to 2019), the former Virtus Total Return Fund Inc.
139

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Year of Birth,
Length of Time Served
and Number of
Portfolios in Fund
Complex Overseen by
Trustee 		Principal Occupation(s) During Past 5 Years Other Directorships Held by Trustee During Past 5 Years
Zino, Brian T.
YOB: 1952
Served Since: 2020
104 Portfolios 		Retired. Various roles (1982 to 2009), J. & W. Seligman & Co. Incorporated, including President (1994 to 2009). Trustee (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Trustee (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee (since 2022) and Advisory Board Member (2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Trustee (since 2020) Virtus Alternative Solutions Trust (4 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Mutual Fund Family (56 portfolios); Director (2016 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2016), Virtus Global Multi-Sector Income Fund; Director (since 2014), Virtus Total Return Fund Inc.; Director (2014 to 2019), the former Virtus Total Return Fund Inc.; Trustee (since 2011), Bentley University; Director (1986 to 2009) and President (1994 to 2009), J&W Seligman Co. Inc.; Director (1998 to 2009), Chairman (2002 to 2004) and Vice Chairman (2000 to 2002), ICI Mutual Insurance Company; Member, Board of Governors of ICI (1998 to 2008).
140

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Interested Trustee
Name, Year of Birth,
Length of Time Served
and Number of
Funds Overseen 		Principal Occupation(s) During Past
5 Years 		Principal Occupation(s) During Past 5 Years and
Other Directorships Held by Trustee
Aylward, George R.*
Trustee and President
YOB: 1964
Served Since: 2006
110 Portfolios 		Director, President and Chief Executive Officer (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries, and various senior officer positions with Virtus affiliates (since 2005). Director (since 2023), Stone Harbor Investment Funds plc (21 sub-funds) and Stone Harbor Global Funds plc (27 sub-funds); Trustee, President and Chief Executive Officer (since 2022), Virtus Stone Harbor Emerging Markets Income Fund and Virtus Stone Harbor Emerging Markets Total Income Fund; Member, Board of Governors of the Investment Company Institute (since 2021); Trustee and President (since 2021), The Merger Fund®, The Merger Fund® VL, Virtus Event Opportunities Trust (2 portfolios), Virtus Investment Trust (13 portfolios) and Virtus Strategy Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2021), Virtus Artificial Intelligence & Technology Opportunities Fund, Virtus Convertible & Income 2024 Target Term Fund, Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II, Virtus Diversified Income & Convertible Fund, Virtus Equity & Convertible Income Fund, and Virtus Dividend, Interest & Premium Strategy Fund; Chairman and Trustee (since 2015), Virtus ETF Trust II (6 portfolios); Director, President and Chief Executive Officer (2014 to 2021), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and President (since 2013), Virtus Alternative Solutions Trust (4 portfolios); Director (since 2013), Virtus Global Funds, plc (5 portfolios); Trustee (since 2012) and President (since 2010), Virtus Variable Insurance Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2011), Virtus Global Multi-Sector Income Fund; Trustee and President (since 2006) and Executive Vice President (2004 to 2006), Virtus Mutual Fund Family (56 portfolios); Director, President and Chief Executive Officer (since 2006), Virtus Total Return Fund Inc.; and Director, President and Chief Executive Officer (2006 to 2019), the former Virtus Total Return Fund Inc.
*Mr. Aylward is an “interested person,” as defined in the 1940 Act, by reason of his position as President and Chief Executive Officer of Virtus Investment Partners, Inc. (“Virtus”), the ultimate parent company of the Adviser, and various positions with its affiliates, including the Adviser.
141

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Officers of the Trust Who Are Not Trustees
Name, Address and
Year of Birth 		Position(s) Held
with Trust and
Length of
Time Served 		Principal Occupation(s) During Past 5 Years
Batchelar, Peter J.
YOB: 1970 		Senior Vice President (since 2017), and Vice President (2013 to 2016). Senior Vice President, Product Development (since 2017), Vice President, Product Development (2008 to 2017), and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Bradley, W. Patrick
YOB: 1972 		Executive Vice President (since 2016); Senior Vice President (2013 to 2016); Vice President (2011 to 2013); Chief Financial Officer and Treasurer (since 2006). Executive Vice President, Fund Services (since 2016), Senior Vice President, Fund Services (2010 to 2016) and various officer positions (since 2004), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Director (since 2023), Stone Harbor Investment Funds plc and Stone Harbor Global Funds plc; Director (since 2019), Virtus Global Funds ICAV; Director (since 2013), Virtus Global Funds, plc; various officer positions (since 2006) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Member (since 2022), BNY Mellon Asset Servicing Client Advisory Board.
Branigan, Timothy
YOB: 1976 		Vice President and Fund Chief Compliance Officer (since 2022); Assistant Vice President and Deputy Fund Chief Compliance Officer (March to May 2022); and Assistant Vice President and Assistant Chief Compliance Officer (2021 to 2022). Various officer positions (since 2019) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Chisolm, Daphne
YOB: 1969 		Vice President, Counsel and Assistant Secretary (since 2023). Vice President and Senior Counsel (since 2023), Virtus Investment Partners, Inc.; Attorney at Law engaged in private practice as a solo practitioner (2018 to 2023); and various officer positions (since 2023) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Fromm Jennifer
YOB: 1973 		Chief Legal Officer, Counsel and Secretary (since 2023); Vice President (since 2017); and Assistant Secretary (2008 to 2022). Vice President (since 2016) and Senior Counsel, Legal (since 2007) and various officer positions (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Griswold, Heidi
YOB: 1973 		Vice President (since 2016). Vice President, Head of Transfer Agent & Servicing, Mutual Fund Services (since 2018), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and Vice President (since 2016) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Hackett, Amy
YOB: 1968 		Vice President and Assistant Treasurer (since 2013); Assistant Treasurer (2009 to 2013). Vice President (since 2010) and Assistant Vice President (2007 to 2010), Fund Services, Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2007) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Krishnan, Suneeta
YOB: 1965 		Vice President and Assistant Treasurer (since 2018); and Assistant Treasurer (2009 to 2018). Vice President (since 2017) and Assistant Treasurer (since 2007), Mutual Fund Administration, Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2009) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Lowe, Benjamin
YOB: 1978 		Vice President, Controller and Assistant Treasurer (since 2021); and Vice President and Assistant Treasurer (2018 to 2021). Vice President, Fund Services (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2018) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.
Martin, David
YOB: 1959 		Anti-Money Laundering Compliance Officer (since 2016). Vice President, Compliance – Broker/Dealer (since 2009), Virtus Investment Partners, Inc.; and Vice President and Chief Compliance Officer of certain Virtus subsidiaries (since 2004).
Rahman, Mahmood
YOB: 1967 		Assistant Vice President (since 2021). Vice President (since 2023), Tax Director (since 2020) and Assistant Vice President (2020 to 2023), Fund Administration, Virtus Investment Partners, Inc.; Assistant Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Assistant Treasurer and Tax Director, Grantham, Mayo, Van Otterloo & Co. LLC (2007 to 2019).
Short, Julia R.
YOB: 1972 		Senior Vice President (since 2017). Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017).
142

FUND MANAGEMENT TABLES (Unaudited) (Continued)
Name, Address and
Year of Birth 		Position(s) Held
with Trust and
Length of
Time Served 		Principal Occupation(s) During Past 5 Years
Smirl, Richard W.
YOB: 1967 		Executive Vice President (since 2021). Chief Operating Officer (since 2021), Virtus Investment Partners, Inc.; Executive Vice President (since 2021), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Chief Operating Officer (2018 to 2021), Russell Investments; Executive Director (Jan. to July 2018), State of Wisconsin Investment Board; and Partner and Chief Operating Officer (2004 to 2018), William Blair Investment Management.
Suss, Amanda
YOB: 1969 		Vice President, Controller and Assistant Treasurer (since 2022). Vice President and Controller (since 2022), Mutual Fund Administration and Financial Reporting, Virtus Investment Partners, Inc.; Vice President, Controller and Assistant Treasurer (since 2022) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Senior Finance Associate (2011 to 2022), Stone Harbor Investment Partners LP.
143

Virtus KAR Capital Growth Fund, Virtus KAR Mid-Cap Growth Fund and
Virtus Tactical Allocation Fund (the “Funds”),
each a series of Virtus Equity Trust
(Unaudited)
Supplement dated September 29, 2023, to the Summary Prospectuses for the Funds and the Virtus Equity Trust
Statutory Prospectus, each dated January 27, 2023, as supplemented
IMPORTANT NOTICE TO INVESTORS
Effective October 1, 2023, Noran Eid will be added as a portfolio manager of Virtus KAR Capital Growth Fund, Virtus KAR Mid-Cap Growth Fund and Virtus Tactical Allocation Fund.
The following disclosure will be added under “Portfolio Management” in the summary prospectuses for each Fund, and in the summary section of the Funds’ statutory prospectus:
•Noran Eid, Portfolio Manager and Senior Research Analyst at KAR. Ms. Eid has served as a Portfolio Manager of the fund since October 2023.
In the Management of the Funds section under “Portfolio Management” on page 88 of the Funds’ statutory prospectus, the rows for the Funds in the table under the subheading “KAR” will be replaced with the following:
Virtus KAR Capital Growth Fund Chris Armbruster, CFA (since January 2020)
Noran Eid (since October 2023)
Doug Foreman, CFA (since 2011)
Virtus KAR Mid-Cap Growth Fund Chris Armbruster, CFA (since January 2020)
Noran Eid (since October 2023)
Doug Foreman, CFA (since 2012)
Virtus Tactical Allocation Fund (equity portion only) Chris Armbruster, CFA (since October 2020)
Noran Eid (since October 2023)
Doug Foreman, CFA (since September 2016)
Hyung Kim (since June 2019)
Craig Thrasher, CFA (since June 2019)
The portfolio manager biographies under the referenced table will be amended by adding the following for Noran Eid:
Noran Eid. Ms. Eid is a Portfolio Manager and Senior Research Analyst with primary research responsibilities for mid-cap growth and large-cap portfolios in the consumer discretionary, information technology, and health care sectors. Before joining KAR in May 2018, Ms. Eid was an investment analyst with Sands Capital Management from (2013 to 2017). She has approximately 11 years of equity research experience.
In the Management of the Funds section under “Portfolio Management” on page 89 of the Funds’ statutory prospectus, the row for the Virtus Tactical Allocation Fund in the table under the subheading “Newfleet” will be replaced with the following, correcting a typographical error:
Virtus Tactical Allocation Fund (fixed income portion only) David L. Albrycht, CFA (since 2011)
Stephen H. Hooker, CFA (since October 2020)
All other disclosures concerning the Funds, including fees, expenses, investment objective, strategies and risks remains unchanged.
Investors should retain this supplement with the Prospectuses for future reference.
VET 8019 KAR PM Addition (9/2023)

Virtus KAR Capital Growth Fund, Virtus KAR Mid-Cap Growth Fund and
Virtus Tactical Allocation Fund (the “Funds”),
each a series of Virtus Equity Trust
(Unaudited)
Supplement dated June 29, 2023 to the Funds’ Summary Prospectuses, and the Virtus Equity Trust
Statutory Prospectus and Statement of Additional Information (“SAI”),
each dated January 27, 2023, as supplemented
IMPORTANT NOTICE TO INVESTORS
Noran Eid will be added as a portfolio manager of the Funds as of October 1, 2023. Kayne Anderson Rudnick Investment Management, LLC has announced that Doug Foreman, CFA, a portfolio manager of the Funds, is expected to retire on December 31, 2024. The Prospectuses and SAI will be updated as appropriate at the time of the changes.
Investors should retain this supplement with the Prospectuses and SAI for future reference.
VET 8019/KAR PM Announcement (6/2023)

Virtus SGA Emerging Markets Growth Fund and
Virtus SGA New Leaders Growth Fund (the “Funds”),
each a series of Virtus Equity Trust
(Unaudited)
Supplement dated November 28, 2023, to the Summary Prospectuses and the Virtus Equity Trust Statutory
Prospectus and Statement of Additional Information (“SAI”), each dated January 27, 2023, as supplemented
IMPORTANT NOTICE TO INVESTORS
On November 15, 2023, the Board of Trustees of Virtus Equity Trust voted to approve a Plan of Liquidation for each of Virtus SGA Emerging Markets Growth Fund and Virtus SGA New Leaders Growth Fund, pursuant to which the Funds will be liquidated (the “Liquidation”) on or about December 28, 2023 (“Liquidation Date”).
Effective December 13, 2023, the Funds will be closed to new investors and additional investor deposits, except that purchases will continue to be accepted for defined contribution and defined benefit retirement plans, the Funds will continue to accept payroll contributions and other types of purchase transactions from both existing and new participants in such plans, and the Funds will allow reinvestment of distributions from existing shareholders. Investors should note that the Funds’ investments will be sold in anticipation of the Liquidation and may be sold in advance of December 13, 2023.
At any time prior to the Liquidation Date, shareholders may redeem or exchange their shares of the Funds for shares of the same class of any other Virtus Mutual Fund. There will be no fee or sales charges associated with exchange or redemption requests.
Prior to the Liquidation Date, the Funds will begin engaging in business and activities for the purposes of winding down the Funds’ business affairs and transitioning some or all of the Funds’ portfolio to cash and cash equivalents in preparation for the orderly liquidation and subsequent distribution of its assets on the Liquidation Date. During this transition period, the Funds will no longer pursue their investment objectives or be managed in a manner consistent with their investment strategies, as stated in the Prospectuses. This is likely to impact the Funds’ performance. The impending Liquidation of the Funds may result in large redemptions, which could adversely affect the Funds’ expense ratios. Those shareholders who remain invested in the Funds during part or all of this transition period may bear increased brokerage and other transaction expenses relating to the sale of portfolio investments prior to the Liquidation Date.
On the Liquidation Date, any outstanding shares of the Funds will be automatically redeemed as of the close of business, except shares held in BNY Mellon IS Trust Company custodial accounts, which will be exchanged for the same class of shares of Virtus Seix U.S. Government Securities Ultra-Short Bond Fund, with the exception of Class C shares which will be exchanged for Class A shares of Virtus Seix U.S. Government Securities Ultra-Short Bond Fund, and any contingent deferred sales charges will be waived. Shareholders with BNY Mellon IS Trust Company custodial accounts should consult the prospectus for the Virtus Seix U.S. Government Securities Ultra- Short Bond Fund for information about that fund.
The proceeds of any redemption will be equal to the net asset value of such shares after the Funds have paid or provided for all charges, taxes, expenses and liabilities. The distribution to shareholders of these liquidation proceeds will occur as soon as practicable, and will be made to all Fund shareholders of record at the time of the Liquidation. Additionally, the Funds must declare and distribute to shareholders any undistributed realized capital gains and all net investment income no later than the final liquidation distribution. To the extent that a Fund has experienced redemptions prior to the date the Fund distributes any realized capital gains and net investment income, the remaining shareholders at the time of the distribution(s) may bear increased tax liability due to receiving a higher proportion of the distribution(s).
Although shareholders are expected to receive proceeds of the Liquidation in cash, proceeds distributed to shareholders may be paid in cash, cash equivalents, or portfolio investments equal to the shareholder’s proportionate interest in the net assets of the Funds (the latter payment method, “in kind”). Shareholders who receive proceeds in kind should expect (i)

that the in-kind distribution will be subject to market and other risks, such as liquidity risk, before sale, and (ii) to incur transaction costs, including brokerage costs, when converting the investments to cash.
Because the exchange or redemption of your shares could be a taxable event, we suggest you consult with your tax advisor prior to the Funds’ liquidation.
Investors should retain this supplement with the Prospectuses and SAI for future reference.
VET 8019 SGA EMG & NLG Liquidation Supplement (11/2023)

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VIRTUS EQUITY TRUST
101 Munson Street
Greenfield, MA 01301-9668
Trustees
Philip R. McLoughlin, Chairman
George R. Aylward
Donald C. Burke
Sarah E. Cogan
Deborah A. DeCotis
F. Ford Drummond
Sidney E. Harris
John R. Mallin
Connie D. McDaniel
Geraldine M. McNamara
R. Keith Walton
Brian T. Zino
Officers
George R. Aylward, President
Peter Batchelar, Senior Vice President
W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer
Timothy Branigan, Vice President and Fund Chief Compliance Officer
Jennifer Fromm, Vice President, Chief Legal Officer, Counsel and Secretary
Julia R. Short, Senior Vice President
Richard W. Smirl, Executive Vice President
Investment Adviser
Virtus Investment Advisers, Inc.
One Financial Plaza
Hartford, CT 06103-2608
Principal Underwriter
VP Distributors, LLC
One Financial Plaza
Hartford, CT 06103-2608
Administrator and Transfer Agent
Virtus Fund Services, LLC
One Financial Plaza
Hartford, CT 06103-2608
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286-1048
Independent Registered Public
Accounting Firm
PricewaterhouseCoopers LLP
2001 Market Street
Philadelphia, PA 19103-7042
How to Contact Us
Mutual Fund Services 1-800-243-1574
Adviser Consulting Group 1-800-243-4361
Website Virtus.com
 
Important Notice to Shareholders
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

P.O. Box 534470
Pittsburgh, PA 15253-4470
For more information about Virtus Funds,
please contact us at 1-800-243-1574, or visit Virtus.com.
8015 1105-23

Item 1.

Reports to Stockholders (cont.).

 

  (b)

Not applicable.

Item 2.

Code of Ethics.

 

  (a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

  (c)

There have been no amendments during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics described in Item 2(b) of the instructions for completion of Form N-CSR. A copy of the currently applicable code is included as an exhibit.

 

  (d)

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

Item 3.

Audit Committee Financial Expert.

 

(a)(1)

The Registrant’s Board of Trustees has determined that the Registrant has an “audit committee financial expert” serving on its Audit Committee.

 

(a)(2)

The Registrant’s Board of Trustees has determined that each of Donald C. Burke, Connie D. McDaniel and Brian T. Zino possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert.” Each such individual is an “independent” trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

 

(a)(3)

Not applicable.

 

Item 4.

Principal Accountant Fees and Services.

Audit Fees

 

  (a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal years ended September 30, 2022 and September 30, 2023 are $301,796 and $355,208, respectively.

Audit-Related Fees

 

  (b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item for fiscal years ended September 30, 2022 and September 30, 2023 are $17,841 and $18,361, respectively. Such audit-related fees include out of pocket expenses.

Tax Fees

 

  (c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning for fiscal years ended September 30, 2022 and September 30, 2023 are $90,867 and $46,512, respectively.

“Tax Fees” are those primarily associated with review of the Trust’s tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Trust’s financial statement, review of year-end distributions by the Fund to avoid excise tax for the Trust, periodic discussion with management on tax issues affecting the Trust, and reviewing and signing the Fund’s federal income tax returns.

All Other Fees

 

  (d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are for fiscal years ended September 30, 2022 and September 30, 2023 are $0 and $0, respectively.

 

  (e)(1)

Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Board of Trustees of Virtus Equity Trust (the “Fund”) has adopted policies and procedures with regard to the pre-approval of services provided by its independent auditors. Audit, audit-related and tax compliance services provided to the Fund on an annual basis require specific pre-approval by the Audit Committee. The Audit Committee must also approve other non-audit services provided to the Fund and those non-audit services provided to the Fund’s Affiliated Service Providers that relate directly to the operations and financial reporting of the Fund. Certain of these non-audit services that the Audit Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent auditors may be approved by the Audit Committee without consideration on a specific case-by-case basis (“general pre-approval”).

The Audit Committee has determined that the Chair of the Audit Committee, may provide pre-approval for such services that meet the above requirements but are not included in the general pre-approval in the event such approval is sought between regularly scheduled meetings. In any event, the Audit Committee is informed of, and ratifies, each service approved subject to general pre-approval at the next regularly scheduled in-person Audit Committee meeting.

 

  (e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 0%

(c) 0%

(d) N/A

 

  (f)

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent.

 

  (g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for fiscal years ended September 30, 2022 and September 30, 2023 are $108,708 and $64,873, respectively.

 

  (h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

  (i)

Not applicable.

 

  (j)

Not applicable.

 

Item 5.

Audit Committee of Listed Registrants.

Disclosure not required for open-end management investment companies.

 

Item 6.

Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form.

 

(b)

Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Disclosure not required for open-end management investment companies.

 

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

Item 11.

Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Disclosure not required for open-end management investment companies.

 

Item 13.

Exhibits.

 

  (a)(1)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

 

  (a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

  (a)(2)(1)

There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

 

  (a)(2)(2)

There was no change in the Registrant’s independent public accountant during the period covered by the report.

 

  (b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    Virtus Equity Trust

 

By (Signature and Title)*  

/s/ George R. Aylward

   
  George R. Aylward, President   
  (principal executive officer)   
Date 12/6/23   

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/s/ George R. Aylward

   
  George R. Aylward, President   
  (principal executive officer)   
Date 12/6/23   

 

By (Signature and Title)*  

/s/ W. Patrick Bradley

   
  W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer   
  (principal financial officer)   
Date 12/5/23   

 

* 

Print the name and title of each signing officer under his or her signature.