Virtus Investment Partners has selected F-Squared Investments, a quantitatively-based, boutique investment company, as sub-adviser to the Virtus AlphaSector Rotation Fund and the Virtus AlphaSector Allocation Fund. Virtus operates a multi-manager asset management business with $22.4 billion under management as of June 30, 2009. Virtus also offers F-Squared's AlphaSector Rotation Strategy in separate account form.

The Virtus AlphaSector Rotation Fund will track F-Squared Investments' AlphaSector Rotation Index while 75% of the Virtus AlphaSector Allocation Fund will track the same index with the remaining 25% allocated to a Virtus enhanced core fixed income strategy.

AlphaSector is an active index constructed exclusively from the nine Select Sector SPDR exchange-traded funds (ETFs) which represent the sectors of the S&P 500, plus an ETF that tracks short-term Treasuries.

The strategy is designed to make longer-term allocations among the S&P 500 sectors but during market weakness, to allocate dynamically to the short-term Treasury ETF.

The index is based on the monthly signals generated by F-Squared's proprietary quantitative model that identifies which sector (or sectors) may be a drag on future performance. Those sectors are then omitted from the index and the assets are allocated equally to the remaining sectors.

If three or fewer sectors remain in the index, the short-term Treasury ETF is used as the default asset class.

F-Squared Investments is an SEC-registered investment advisor.

Virtus is a partnership of boutique investment managers and provides investment management products and services through its affiliated managers and select sub-advisers.