{"id":5887,"date":"2015-11-16T00:00:00","date_gmt":"2015-11-16T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/11\/virtus_investment_advisers_to"},"modified":"2015-11-16T00:00:00","modified_gmt":"2015-11-16T06:00:00","slug":"virtus-investment-advisers-to","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/","title":{"rendered":"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy"},"content":{"rendered":"<p>The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of misleading mutual fund investors and others using ads with false historical performance information about exchange-traded fund portfolio strategy AlphaSector. According to the regulator, the firm publicized a performance track record that it got from F-Squared that was substantially overstated. Virtus had hired F-Squared as a mutual fund subadvisor as well as a subadvisor for those that followed AlphaSector.<\/p>\n<p>The SEC, following its probe, said that Virtus falsely stated in SEC filings, client presentations, marketing collateral, and other communications that the AlphaSector\u2019s strategy had a performance history going as far back as 2001 and had for a number years outperformed the S &amp; P 500 Index. The investment management firm is accused of accepting F-Squared\u2019s misrepresentations  as fact while disregarding the red flags that raised doubts about these statements.  <\/p>\n<p>Six years ago Virtus recommended that shareholders of specific mutual funds and the boards of trustees approve a modification in strategy and management to AlphaSector and F-Squared. This recommendation was made because of the false historical data on AlphaSector.  <\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/#more-5887\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of misleading mutual fund investors and others using ads with false historical performance information about exchange-traded fund portfolio strategy AlphaSector. According to the regulator, the firm publicized a performance track record that it got [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4023,3781,3799,3760,3795,3761,3741],"tags":[2889,2890,3560],"class_list":["post-5887","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-investment-advisers","category-mutual-funds","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","category-securities-fraud","tag-alphasector","tag-f-squared","tag-virus-investment-adviser"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy &#8212; Investor Lawyers Blog &#8212; November 16, 2015<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of &#8212; November 16, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy &#8212; Investor Lawyers Blog &#8212; November 16, 2015\" \/>\n<meta name=\"twitter:description\" content=\"The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of &#8212; November 16, 2015\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy &#8212; Investor Lawyers Blog &#8212; November 16, 2015","description":"The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of &#8212; November 16, 2015","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/","twitter_card":"summary_large_image","twitter_title":"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy &#8212; Investor Lawyers Blog &#8212; November 16, 2015","twitter_description":"The Securities and Exchange Commission says that Virtus Investment Advisers will pay $16.5M to resolve charges accusing the investment management firm of &#8212; November 16, 2015","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy","datePublished":"2015-11-16T06:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/"},"wordCount":393,"keywords":["AlphaSector","F-Squared","Virus Investment Adviser"],"articleSection":["Exchange Traded Funds","Investment Advisers","Mutual Funds","SEC Enforcement","SEC Settlements","Securities and Exchange Commission","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/","url":"https:\/\/www.investorlawyers.com\/blog\/virtus-investment-advisers-to\/","name":"Virtus Investment Advisers to Pay $16.5M to Settle False Performances Claims Related to ETF Portfolio Strategy &#8212; 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