Defendant Name: Virtus Investment Advisers, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Virtus Investment Partners, Inc.
SIC Code: 9999
CUSIP: 92828Q10

Initial Case Details

Legal Case Name In the Matter of Virtus Investment Advisers, Inc.
First Document Date 16-Nov-2015
Initial Filing Format Administrative Action
File Number 3-16959
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Section 34(b) Investment Company Act; Sections 204, 206(2), 206(4) Investment Advisers Act; Rules 204-2(a)(16), 206(4)-1(a)(5), 206(4)-7, 206(4)-8 Investment Advisers Act.

Related Violations Alleged

Virtus Investment Advisers, Inc. is alleged to have caused an unidentified individual or entity's violation of Section 34(b) Investment Company Act.

Resolutions

First Resolution Date 16-Nov-2015
Headline Total Penalty and Disgorgement $16,500,000

Related Documents:

2015-258 16-Nov-2015 Press Release--Administrative Proceeding
Mutual Fund Adviser Advertised False Performance Claims
In a November 16, 2015 press release, the SEC announced settled administrative proceedings against Virtus Investment Advisers, Inc. According to the SEC, Virtus Investment Advisers, Inc. "agreed to pay $16.5 million to settle charges that it mislead mutual fund investors and others with advertisements containing false historical performance data about AlphaSector, a major exchange-traded fund (ETF) portfolio strategy."
IA-4266 16-Nov-2015 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On November 16, 2015, the SEC instituted settled administrative and cease-and-desist proceedings against Virtus Investment Advisors, Inc. According to the SEC: "This matter arises from misstatements made by registered investment adviser Virtus to certain of its mutual fund clients, to those funds' shareholders, and to clients in separately managed accounts concerning its sub adviser F-Squared Investments, Inc.'s ('F-Squared') materially inflated, and hypothetical and back-tested, performance track record."

Related Actions:

SEC v. Howard B. Present
Howard B. Present
In the Matter of F-Squared Investments, Inc.
F-Squared Investments, Inc.