An investigation on behalf of investors in Virtus Dynamic AlphaSector Fund Class A (MUTF:EMNAX) shares over potential wrongdoing was announced and MUTF:EMNAX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 01/20/2015 -- An investigation on behalf of current long-term investors in shares of Virtus Dynamic AlphaSector Fund Class A (MUTF:EMNAX) shares was announced over potential breaches of fiduciary duties.
Investors who purchased shares of Virtus Dynamic AlphaSector Fund Class A (MUTF:EMNAX) and currently hold any of those MUTF:EMNAX shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether the fees charged by investment advisors affiliated with F-Squared Investments and Virtus Investment Partners, Inc were excessive.
According to an analyst F-Squared Investments Inc sub-advises on the Virtus Investment Partners mutual funds Premium AlphaSector (VAPAX), Allocator Premium AlphaSector (VAAAX), AlphaSector Rotation (PWBAX), Global Premium AlphaSector (VGPAX), Dynamic AlphaSector (EMNAX), that represent about $13 billion, or one-fifth, of Virtus Investment Partners' $61 billion in assets under management. Beginning in 2008, with F-Squared Investments began marketing an investment strategy it called "AlphaSector," claiming that the strategy has outperformed the S&P 500 since 2001.
According to the investigation in reality, as with F-Squared Investments admitted on December 22, 2014, the AlphaSector strategy was invented by a college intern in 2008, and F-Squared created fabricated results for the 2001 to 2008 period, that also inflated with F-Squared Investments' performance by 350%.
According to a media report from early September 2014 F-Squared Investments Inc received a Wells notice from the Securities and Exchange Commission ("SEC") reportedly indicating the SEC is considering bringing a civil case against F-Squared Investments Inc. in late 2013, F-Squared Investments Inc repordetly told clients it was being investigated by the SEC, and earlier in 2014 F-Squared Investments Inc reportdelty said the regulator's investigation found certain F-Squared Investments Inc's historical returns overstated performance.
Shares of Virtus Dynamic AlphaSector Fund Class A (MUTF:EMNAX) declined from as high as $13.72 per share in July 2014 to as low as $10.65 per share on January 7, 2015.
On January 15, 2015 MUTF:EMNAX shares closed at $10.68 per share.
Those who purchased shares of Virtus Dynamic AlphaSector Fund Class A (MUTF:EMNAX), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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