GROWTH A CONDITION, NOT A CATEGORY.
Silvant Capital Management Our diverse team of investment professionals leverages its talents to build growth equity portfolios. Together since 2007, our portfolio managers average more than 18 years of experience. Based in Atlanta, Georgia, Silvant Capital Management LLC offers investment opportunities to institutional and high-net-worth investors, and financial advisors. Silvant manages approximately $1.3 billion 1 and is a wholly owned affiliate of Virtus Investment Partners. Separately Managed Accounts Subadvised Mutual Funds Concentrated Large Cap Growth Portfolio Large Cap Growth Portfolio Virtus Silvant Large-Cap Growth Stock Fund Virtus Silvant Small-Cap Growth Stock Fund Large Cap Core Growth Portfolio Small Cap Growth Portfolio Silvant Latin Silva a woodland or forest Trees are often a metaphor for strength, solidity, longevity, protection, and growth. The enduring nature of the forest captures Silvant Capital Management s guiding philosophy of collaboration and discipline. Just as the forest is greater than any individual tree, Silvant Capital Management leverages the expertise of each individual to create a stronger team. 1 As of 12/31/16. 1
Redefining Growth At Silvant, we believe growth is a condition, not a category. We select companies from every corner of the economy that exhibit the potential to grow faster than their peers and exceed investor expectations. Boutique Approach, Aligned with Investors Our goal is to do well for our clients, investigating what we believe are the best opportunities for growth, while managing risk. Our affiliation with Virtus Investment Partners enables us to remain focused on our true strengths selecting and managing investments and to rely on Virtus to manage day-to-day operations. Leveraging Talent in a Dynamic, Collaborative Process Working closely together, our investment team thrives on constant discussion and professional debate. We identify key metrics, examine opportunity costs, and seek companies where investor expectations are likely to improve. We combine specific industry expertise and our collective vision to achieve our goals. Successful investing doesn t happen in the short term. Rather, it is the result of a rigorously disciplined approach over one or more full market cycles. By putting emotions aside and diversifying to help manage risk, we seek to participate in the growth potential of rising markets while preserving capital during challenging ones. 2
An Innovative Approach Growth is an essential component of a diversified portfolio. But, risk that could potentially devastate a portfolio may come with growth stocks. Silvant enhances traditional equity allocations, offering opportunities in uncorrelated and, perhaps, unusual places. A distinctive investment philosophy centered on discovering growth across the market. We define any company with above-average growth rates and the potential to beat investor expectations as a growth investment We seek companies participating in disruptive products and services with the potential to change the business landscape We implement systematic risk management aimed at limiting downside loss Distinctive Elements of Our Investment Approach Emphasize bottom-up fundamental stock selection Identify company-specific metrics that serve as leading indicators of growth Capitalize on economic themes that drive innovation Avoid top-down macro decision-making Provide full transparency regarding our decision making process diversified by sector, theme, and characteristics 3
Our Process Guided by our belief that growth companies can be found in every corner of the economy, we employ a disciplined, repeatable investment process. Multi-Dimensional Risk Management Underlying every step of our process is integrated risk management that allows for systematic evaluation of data to: Assess the impact of economic and industry themes Research potential downside exposure of each security Evaluate optimum risk/reward balance for each portfolio Minimize unintended style biases and sector concentrations 1 Identify True Game Changers Evaluate positive secular trends and disruptive products and services that may change the business landscape so we can identify companies best poised to benefit. 2 Conduct Thorough Fundamental Analysis Our research focuses on identifying positive fundamental trends, including earnings and revenue growth, improving cash flows, and increasing return on invested capital. 3 Establish Unique Metrics To augment our fundamental analysis, we establish individual metrics unique to each target company that we believe are leading indicators of growth. 4
Exploiting Disruptive Trends Over the past several decades, growth opportunities have emerged in many companies not traditionally found in the growth category. Our selection process is opportunistic, based on the belief that the tried-and-true style box definition of growth is outdated. We seek growth in every corner of the economy, whether high-flying technology companies with the next innovation, or off-the-beaten-path cyclical businesses quietly developing low-cost production facilities for pricing advantage to take market share from their competitors. By ripping the traditional label off growth, we venture into territory unexplored by many growth managers. Notable Trends Disruptive Innovations Long-term secular economic trends that create new opportunities for business. Examples: Aging of the American population Autonomous driving Cloud computing Internet-based business models Trends that invade the marketplace and force behavioral change, often creating new industry sectors. Examples: Entertainment: Online video on-demand Music: Streaming music Technology: Personal devices Manufacturing: Three-dimensional printing Financial Services: Dodd-Frank Wall Street Reform and Consumer Protection Act 5
Investment Management Michael Sansoterra Chief Investment Officer Senior Portfolio Manager Large Cap Growth Lead Concentrated Large Cap Growth Lead 20 years of investment experience Sandeep Bhatia, Ph.D., CFA Senior Portfolio Manager Large Cap Core Growth Lead Small Cap Growth Lead 16 years of investment experience Client Portfolio Management Marc Schneidau Chief Operating Officer 19 years of investment experience Sector Portfolio Managers Brandi Allen Consumer Staples, Healthcare Providers & Services 19 years of investment experience Stephen Coker, CFA Industrials, Energy, and Materials 19 years of investment experience Scott Kolar Technology 22 years of investment experience Sowmdeb Sen Co-Portfolio Manager, Large Cap Core Growth Sector Portfolio Manager, Consumer Discretionary and Financials 17 years of investment experience Portfolio Specialist Jennifer Stewart 15 years of investment experience As of 12/31/16. 6
3333 Piedmont Road NE, Suite 1400, Atlanta, GA 30305 silvantcapital.com 404-845-7640 The Funds are the successors of the former RidgeWorth Funds which carried substantially the same names, investment objectives, and strategies, as a result of their reorganization with and into the Funds on July 14, 2017. Disruptive products and services: Products and services that are improved in ways that the market does not expect. Downside loss: The potential for loss for a given investment or activity. IMPORTANT RISK CONSIDERATIONS Equity Securities: Equity securities (stocks) may be more volatile and carry more risk than other forms of investments, including investments in high grade fixed income securities. The net asset value per share of a fund will fluctuate as the value of the securities in the portfolio changes. Growth: Growth stocks are typically sensitive to market movements because their market prices tend to reflect future expectations. When it appears those expectations will not be met, the prices of growth stocks typically fall. Small Capitalization Stocks: Typically carry additional risks since smaller companies generally have a higher risk of failure. Prospectus: For additional information on risks, please see the fund s prospectus. There is no guarantee a specific investment strategy will be successful. Individual investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decisions. Investment process, strategies, and procedures detailed in this presentation are intended to be general guidelines, subject to market conditions and client-specific investment guidelines and restrictions, and are measured at time of purchase. Silvant Capital Management may deviate from these guidelines if market conditions warrant, or if the investment professionals deem doing so would be in the clients best interests. Guidelines do not guarantee any reduction of risk or loss. Please carefully consider a Fund s investment objectives, risks, charges, and expenses before investing. For this and other information about any Virtus mutual fund, contact your financial representative, call 1-800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing. Not all products or marketing materials are available at all firms. Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value. Mutual Funds distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc. 5377 7-17 2017 Virtus Investment Partners, Inc.