THE VIRTUS FUNDS
SUPPLEMENT TO THE TRUST SHARES COMBINED PROSPECTUS DATED NOVEMBER 30, 1995 AND
INVESTMENT SHARES COMBINED PROSPECTUS DATED NOVEMBER 30, 1995, REVISED
DECEMBER 29, 1995.
1. Effective March 15, 1996, the name of The Stock Fund will be changed to
The Style Manager: Large Cap Fund.
2. Under the section "INVESTMENT OBJECTIVE AND POLICIES OF EACH FUND" located
in the prospectuses, please replace the paragraphs entitled "ACCEPTABLE
INVESTMENTS " and "COMMON STOCKS " under the sub- section entitled "THE
STOCK FUND" with the following:
ACCEPTABLE INVESTMENTS. The Fund pursues its investment objective by
investing in common stocks of large capitalization companies, with a market
capitalization of at least $1 billion at the time of investment, and which are
either listed on the New York or American Stock Exchanges or trade in the
over-the-counter market. The Fund's investment approach is based upon the
conviction that, over the long term, the economy will continue to expand and
develop and that this economic growth will be reflected in the growth of the
revenues and earnings of publicly held corporations. The securities in which
the Fund invests include, but are not limited to, the following securities.
COMMON STOCKS. The Fund will invest in stocks that the Fund's investment
adviser's proprietary investment methodology has identified as having superior
potential for growth of capital and income. At least 65% of the Fund's
portfolio will be invested in common stocks, unless it is in a defensive
position.
The Fund is managed to take advantage of trends in the stock market that favor
different styles of stock selection (value or growth). The value style seeks
stocks that, in the opinion of the adviser, are undervalued and are or will be
worth more than their current price. The growth style seeks stocks with
higher earnings growth rates which, in the opinion of the adviser, will lead
to appreciation in stock price.
3. On page 27 of the Investment Shares Combined prospectus ONLY, under the
sub-section entitled "SHARE PURCHASES", please delete the sub-section entitled
"BY CHECK" in its entirety and replace it with the following:
"BY CHECK.. Purchases of Shares by check must be made payable to THE VIRTUS
FUNDS and sent to Signet Financial Services, Inc. P.O. Box 26301, Richmond, VA
23260."
February 29, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 929913848
CUSIP 927913855
G00564-17 (2/96) SGS 602043
THE STYLE MANAGER FUND
(formerly The Strategic Stock Fund)
(A Portfolio of The Virtus Funds)
SUPPLEMENT TO THE STYLE MANAGER FUND (FORMERLY THE STRATEGIC STOCK FUND)
PROSPECTUS DATED NOVEMBER 30, 1995, AS SUPPLEMENTED JANUARY 26, 1996.
On page 9, under the sub-section entitled "SHARE PURCHASES", please delete
the sub-section entitled "BY CHECK" in its entirety and replace it with the
following:
"BY CHECK.. Purchases of Shares by check must be made payable to THE VIRTUS
FUNDS and sent to Signet Financial Services, Inc. P.O. Box 26301, Richmond, VA
23260."
February 29, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 927913806
