Actively Managed Floating Rate Leveraged Loan Strategy Recognized
for its Industry-Leading Risk-Adjusted Performance
NEW YORK, NY, June 3, 2022 – Virtus ETF Solutions and Seix Investment Advisors, both affiliates of Virtus Investment Partners, Inc. (NASDAQ: VRTS), announced that the Virtus Seix Senior Loan ETF (NYSE: SEIX) has received an overall 5-Star Morningstar RatingTM. SEIX, which recently celebrated its three-year anniversary and is the first ETF strategy managed by Seix, earned its five-star Morningstar® rating for its three-year risk-adjusted performance out of 229 funds within Morningstar’s Bank Loan Fund category as of April 29, 2022.
The Virtus Seix Senior Loan ETF is subadvised by Seix Investment Advisors, an affiliated manager of Virtus Investment Partners that has focused exclusively on managing fixed income securities since 1992 and seeks to generate competitive absolute and relative risk-adjusted returns over the full market cycle through a bottom-up focused, top-down aware process.
In pursuing its investment strategy, SEIX seeks to generate high levels of current income by actively investing in senior-secured, floating rate leveraged loans. By utilizing the Seix team’s time-tested approach and fundamental credit research, the ETF expects to target the strongest and most undervalued credits to capture upside potential while limiting downside risk.
“In this environment, demand for non-correlated income generating strategies is essential, particularly in a low-cost, transparent vehicle such as an actively managed ETF,” said George K. Goudelias, managing director, head of leveraged finance at Seix and portfolio manager of the fund. “Active management is a better option in the bank loan category and the Seix ETF provides access to high quality loans and enhanced portfolio diversification with lower correlations.”
Vincent Flanagan, senior leveraged finance research analyst, and Eric Guevara, head of leveraged loan trading, are portfolio managers of the fund with Goudelias.
“In today’s markets, we are pleased to offer this actively managed choice to ETF investors,” said William Smalley, executive managing director of Virtus ETF Solutions. “Leveraged loans are an inefficient market fraught with credit and liquidity risk that is better served by an active manager such as Seix, which has a time-tested process and proven performance.”
Seix managed $16.9 billion of fixed-income assets as of March 31, 2022.
About Seix Investment Advisors
Seix Investment Advisors is an investment management boutique and affiliated manager of Virtus Investment Partners that has been focused exclusively on managing fixed income securities since 1992. Seix seeks to generate competitive absolute and relative risk-adjusted returns over the full market cycle through a bottom-up focused, top-down aware process. Seix employs multi-dimensional approaches based on strict portfolio construction methodology, sell disciplines and trading strategies with prudent risk management as a cornerstone. The firm provides investment management services to a client base that includes endowments, foundations, corporations, healthcare organizations, public funds, insurance companies, and high net worth individuals, in the U.S. and abroad.
About Virtus ETF Solutions
Virtus ETF Solutions, (VES) is a multi-manager ETF sponsor and affiliate of Virtus Investment Partners. With actively managed and index-based investment capabilities across multiple asset classes, VES seeks to deliver a family of complementary exchange-traded-funds subadvised by select investment managers.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
Risk Considerations
Exchange-Traded Funds (ETF): The value of an ETF may be more volatile than the underlying portfolio of securities it is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities. Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times. Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities. High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Market Price/NAV: At the time of purchase and/or sale, an investor's shares may have a market price that is above or below the fund's NAV, which may increase the investor's risk of loss.
Please consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. The prospectus contains this and other information about the fund. Contact us at 1-888-383-0553 or visit www.virtus.com for a copy of the fund's prospectus. Read the prospectus carefully before you invest or send money.
Distributed by ETF Distributors LLC
Media Contacts
Joe Fazzino, Media Relations
(860) 263-4725
Joe.Fazzino@virtus.com
Jaime Doyle, Media Relations
(973) 944-8105
jdoyle@jconnelly.com