Virtus Equity Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number            811-00945                    

                             Virtus Equity Trust                            

(Exact name of registrant as specified in charter)

101 Munson Street

                         Greenfield, MA  01301-9668                        

(Address of principal executive offices) (Zip code)

Kevin J. Carr, Esq.

Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

100 Pearl Street

                                 Hartford, CT  06103-4506                                

(Name and address of agent for service)

Registrant’s telephone number, including area code:  (800) 243-1574

Date of fiscal year end:  March 31

Date of reporting period:  September 30, 2014

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

SEMIANNUAL REPORT

Virtus Growth & Income Fund

Virtus Mid-Cap Core Fund

Virtus Mid-Cap Growth Fund

Virtus Mid-Cap Value Fund

Virtus Quality Large-Cap Value Fund

Virtus Quality Small-Cap Fund

Virtus Small-Cap Core Fund

Virtus Small-Cap Sustainable Growth Fund

Virtus Strategic Growth Fund

Virtus Tactical Allocation Fund

September 30, 2014

TRUST NAME: VIRTUS EQUITY TRUST

Not FDIC Insured

No Bank Guarantee

May Lose Value

Table of Contents

Message to Shareholders		1
Key Investment Terms		2
Disclosure of Fund Expenses		3
Portfolio Holdings Summary Weightings		5
Funds	Schedules of Investments
Virtus Growth & Income Fund (“Growth & Income Fund”)		6
Virtus Mid-Cap Core Fund (“Mid-Cap Core Fund”)		8
Virtus Mid-Cap Growth Fund (“Mid-Cap Growth Fund”)		9
Virtus Mid-Cap Value Fund (“Mid-Cap Value Fund”)		10
Virtus Quality Large-Cap Value Fund (“Quality Large-Cap Value Fund”)		11
Virtus Quality Small-Cap Fund (“Quality Small-Cap Fund”)		12
Virtus Small-Cap Core Fund (“Small-Cap Core Fund”)		13
Virtus Small-Cap Sustainable Growth Fund (“Small-Cap Sustainable Growth Fund”)		14
Virtus Strategic Growth Fund (“Strategic Growth Fund”)		15
Virtus Tactical Allocation Fund (“Tactical Allocation Fund”)		16
Statements of Assets and Liabilities		26
Statements of Operations		28
Statements of Changes in Net Assets		30
Financial Highlights		34
Notes to Financial Statements		41

Proxy Voting Procedures and Voting Record (Form N-PX)

The subadvisers vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees,” or the “Board”). You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Form N-Q Information

The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC’s Public Reference Room. Information on the operation of the SEC’s Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330.

This report is not authorized for distribution to prospective investors in the Funds of Virtus Equity Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.

MESSAGE TO SHAREHOLDERS

Dear Fellow Shareholders of Virtus Mutual Funds:

I am pleased to present this semiannual report which highlights performance of your fund for the six months ended September 30, 2014. Market volatility increased over the six-month period, largely driven by geopolitical risks and a slowdown in the global economy. While the economies of Europe and China weakened, the U.S. economy accelerated and the U.S. dollar rallied strongly. Broad U.S. equity indexes registered moderate gains for the six months ended September 30, 2014. The S&P 500® Index returned 6.42%, the Dow Jones Industrial Average rose 4.76%, and the NASDAQ Composite Index® was up 7.67%. By comparison, international equity returns declined, including for both developed markets and emerging markets.

In mid-September, the Federal Reserve provided much needed assurance to investors by announcing that it intends to keep interest rates low for a “considerable time” after its bond buying program ends in October. Against this backdrop, the yield on the bellwether 10-year U.S. Treasury fluctuated widely over the six months, starting at 2.73% on March 31 and ending at 2.52% on September 30. The broader fixed income market, as measured by the Barclays U.S. Aggregate Bond Index, rose 2.21% for the six months. The uncertain state of the global economy is likely to remain a concern for markets in the months ahead. However, the health of the U.S. economy – including improving hiring, manufacturing, and housing data – gives investors reason for optimism. Future market direction will be determined largely by the ability of corporations to continue to produce robust earnings. Market volatility is an ever-present reminder of the importance of portfolio diversification. While diversification cannot guarantee a profit or prevent loss, owning a variety of asset classes may cushion your portfolio against inevitable market fluctuations. Your financial advisor can help you ensure that your portfolio is adequately diversified across asset classes and investment strategies. As always, thank you for entrusting Virtus with your assets. Should you have questions or require assistance, our customer service team is here to help at 1-866-270-7788. We appreciate your business and remain committed to your long-term financial success. Sincerely, George R. Aylward President, Virtus Mutual Funds October 2014

Whenever you have questions about your account or require additional information, please visit us on the Web at www.virtus.com or call our shareowner service group toll-free at 1-800-243-1574.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above.

1

KEY INVESTMENT TERMS

ADR (American Depositary Receipt)

Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.

Barclays U.S. Aggregate Bond Index

The Barclays U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.

Dow Jones Industrial Average

A market indicator composed of 30 actively traded blue chip U.S. stocks. While the index attempts to be representative of the U.S. economy as a whole, it is somewhat heavily weighted toward industrials. It is a price-weighted average, which means that the price movement of each stock is weighted equally regardless of its market capitalization. The index is unmanaged, its returns do not reflect any fees, expenses or sales charges, and it is not available for direct investment.

Exchange-Traded Funds (ETF)

Portfolios of stocks or bonds that track a specific market segment or index.

Federal Reserve (the “Fed”)

The Central Bank of the United States, responsible for controlling the money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.

NASDAQ Composite Index^®

A market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. Unlike other market indexes, the NASDAQ composite is not limited to companies that have U.S. headquarters. The index is unmanaged, its returns do not reflect any fees, expenses or sales charges, and it is not available for direct investment.

Payment-in-Kind Security “PIK”

A bond which pays some or all interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock.

S&P 500^® Index

The S&P 500^® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.

Sponsored ADR (American Depositary Receipt)

An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. These shares carry all the rights of the common share such as voting rights. ADRs must be sponsored to be able to trade on the NYSE.

2

VIRTUS EQUITY TRUST

Disclosure of Fund Expenses (Unaudited)

For the six-month period of April 1, 2014 to September 30, 2014

We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Equity Trust Fund (each, a “Fund”) you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B and Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. Class I shares are sold without a sales charge and do not incur distribution and service fees. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The following Expense Table illustrates your Fund’s costs in two ways.

Actual Expenses

The first section of the accompanying table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the accompanying table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second section of the accompanying table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if those transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

Expense Table
	Beginning Account Value April 1, 2014		Ending Account Value September 30, 2014		Annualized Expense Ratio			Expenses Paid During Period*
Growth & Income Fund
Actual
Class A	$	1,000.00	$	1,038.60		1.25	%	$	6.39
Class C		1,000.00		1,034.80		2.00			10.20
Class I		1,000.00		1,040.40		1.00			5.11
Hypothetical
Class A		1,000.00		1,018.72		1.25			6.35
Class C		1,000.00		1,014.92		2.00			10.15
Class I		1,000.00		1,019.99		1.00			5.08
Mid-Cap Core Fund
Actual
Class A	$	1,000.00	$	1,052.60		1.35	%	$	6.95
Class C		1,000.00		1,048.90		2.10			10.79
Class I		1,000.00		1,053.80		1.10			5.66
Hypothetical
Class A		1,000.00		1,018.22		1.35			6.85
Class C		1,000.00		1,041.41		2.10			10.66
Class I		1,000.00		1,019.48		1.10			5.58
Mid-Cap Growth Fund
Actual
Class A	$	1,000.00		$993.30		1.45	%	$	7.25
Class B		1,000.00		989.20		2.20			10.97
Class C		1,000.00		989.80		2.20			10.97
Class I		1,000.00		994.30		1.20			6.00
Hypothetical
Class A		1,000.00		1,017.71		1.45			7.36
Class B		1,000.00		1,013.90		2.20			11.17
Class C		1,000.00		1,013.90		2.20			11.17
Class I		1,000.00		1,018.98		1.20			6.09
Mid-Cap Value Fund
Actual
Class A	$	1,000.00		$992.50		1.37	%	$	6.84
Class C		1,000.00		989.10		2.12			10.57
Class I		1,000.00		993.90		1.12			5.60
Hypothetical
Class A		1,000.00		1,018.11		1.37			6.95
Class C		1,000.00		1,014.31		2.12			10.76
Class I		1,000.00		1,019.38		1.12			5.69
Quality Large-Cap Value Fund
Actual
Class A	$	1,000.00	$	1,050.90		1.35	%	$	6.94
Class C		1,000.00		1,047.50		2.10			10.78
Class I		1,000.00		1,053.00		1.10			5.66
Hypothetical
Class A		1,000.00		1,018.22		1.35			6.85
Class C		1,000.00		1,014.41		2.10			10.66
Class I		1,000.00		1,019.48		1.10			5.58
Quality Small-Cap Fund
Actual
Class A	$	1,000.00		$953.80		1.30	%	$	6.37
Class C		1,000.00		950.10		2.05			10.02
Class I		1,000.00		955.10		1.05			5.15
Hypothetical
Class A		1,000.00		1,018.47		1.30			6.60
Class C		1,000.00		1,014.66		2.05			10.41
Class I		1,000.00		1,019.74		1.05			5.33

3

VIRTUS EQUITY TRUST

Disclosure of Fund Expenses (Unaudited) (Continued)

For the six-month period of April 1, 2014 to September 30, 2014

Expense Table
	Beginning Account Value April 1, 2014		Ending Account Value September 30, 2014		Annualized Expense Ratio			Expenses Paid During Period*
Small-Cap Core Fund
Actual
Class A	$	1,000.00		$998.70		1.35	%	$	6.76
Class C		1,000.00		994.90		2.10			10.50
Class I		1,000.00		1,000.40		1.10			5.52
Hypothetical
Class A		1,000.00		1,018.22		1.35			6.85
Class C		1,000.00		1,014.41		2.10			10.66
Class I		1,000.00		1,019.48		1.10			5.58
Small-Cap Sustainable Growth Fund
Actual
Class A	$	1,000.00		$972.20		1.50	%	$	7.42
Class C		1,000.00		967.90		2.25			11.10
Class I		1,000.00		972.90		1.25			6.18
Hypothetical
Class A		1,000.00		1,017.45		1.50			7.61
Class C		1,000.00		1,013.65		2.25			11.42
Class I		1,000.00		1,018.72		1.25			6.35
Strategic Growth Fund
Actual
Class A	$	1,000.00	$	1,068.50		1.29	%	$	6.69
Class B		1,000.00		1,064.40		2.04			10.56
Class C		1,000.00		1,063.40		2.04			10.55
Class I		1,000.00		1,068.80		1.04			5.39
Hypothetical
Class A		1,000.00		1,018.52		1.29			6.55
Class B		1,000.00		1,014.71		2.04			10.36
Class C		1,000.00		1,014.71		2.04			10.36
Class I		1,000.00		1,019.79		1.04			5.28
Tactical Allocation Fund
Actual
Class A	$	1,000.00	$	1,009.50		1.31	%	$	6.60
Class B		1,000.00		1,006.30		2.06			10.36
Class C		1,000.00		1,006.70		2.06			10.36
Hypothetical
Class A		1,000.00		1,018.42		1.31			6.65
Class B		1,000.00		1,014.61		2.06			10.46
Class C		1,000.00		1,014.61		2.06			10.46

The Funds may invest in other funds, and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such expenses and fees had been included, the expenses would have been higher.

* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 days to reflect the period since inception.

You can find more information about the Funds’ expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus.

4

VIRTUS EQUITY TRUST

PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS

SEPTEMBER 30, 2014 (Unaudited)

For each Fund, the following tables present asset allocations within certain sectors as a percentage of total investments as of September 30, 2014.

Growth & Income Fund
Information Technology	20	%
Health Care	15
Financials	15
Consumer Discretionary	12
Industrials	12
Consumer Staples	9
Energy	7
Other (includes short-term investments and securities lending collateral)	10
	100	%

Mid-Cap Core Fund
Industrials	24	%
Health Care	13
Information Technology	12
Financials	10
Consumer Discretionary	9
Consumer Staples	9
Materials	8
Other (includes short-term investments)	15
	100	%

Mid-Cap Growth Fund
Information Technology	27	%
Consumer Discretionary	16
Industrials	16
Health Care	15
Consumer Staples	11
Financials	8
Energy	4
Other (includes short-term investments)	3
	100	%

Mid-Cap Value Fund
Materials	30	%
Energy	21
Industrials	20
Consumer Staples	10
Consumer Discretionary	8
Financials	4
Other (includes short-term investments and securities lending collateral)	7
	100	%

Quality Large-Cap Value Fund
Financials	24	%
Consumer Discretionary	15
Industrials	13
Health Care	11
Information Technology	11
Energy	9
Consumer Staples	7
Other (includes short-term investments)	10
	100	%

Quality Small-Cap Fund
Information Technology	27	%
Financials	20
Industrials	18
Consumer Discretionary	12
Consumer Staples	9
Health Care	6
Utilities	4
Other (includes short-term investments)	4
	100	%

Small-Cap Core Fund
Industrials	26	%
Financials	19
Health Care	18
Information Technology	18
Consumer Discretionary	10
Materials	2
Consumer Staples	1
Other (includes short-term investments)	6
	100	%

Small-Cap Sustainable Growth Fund
Information Technology	32	%
Consumer Discretionary	16
Health Care	15
Industrials	14
Financials	11
Consumer Staples	8
Materials	3
Other (includes short-term investments)	1
	100	%

Strategic Growth Fund
Information Technology	33	%
Consumer Discretionary	19
Health Care	13
Industrials	13
Consumer Staples	10
Materials	4
Energy	3
Other (includes short-term investments)	5
	100	%

Tactical Allocation Fund
Common Stocks			62	%
Financials	13	%
Information Technology	11
Consumer Discretionary	10
Industrials	10
All other sectors	18
Corporate Bonds			21
Loan Agreements			5
Foreign Government Securities			4
Mortgage-Backed Securities			3
Other (includes short-term investments and securities lending collateral)			5
			100	%

5

VIRTUS GROWTH & INCOME FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—99.1%
Consumer Discretionary—12.4%
AutoZone, Inc.(2)		4,600	$	2,344
Cablevision Systems Corp. Class A		74,400		1,303
Cato Corp. (The) Class A		15,300		527
Comcast Corp. Class A		13,700		737
Expedia, Inc.		26,800		2,348
Hanesbrands, Inc.		22,200		2,385
Harman International Industries, Inc.		10,900		1,069
Home Depot, Inc. (The)		7,100		651
Magna International, Inc. Class A		20,500		1,946
Marriott International, Inc.		12,700		888
Nutri/System, Inc.		3,500		54
O’Reilly Automotive, Inc.(2)		4,700		707
Starwood Hotels & Resorts Worldwide, Inc.		15,300		1,273
Thomson Reuters Corp.		60,600		2,206
Walt Disney Co. (The)		1,000		89
Wyndham Worldwide Corp.		400		33
				18,560
Consumer Staples—8.8%
Archer-Daniels-Midland Co.(The)		46,000		2,351
Cal-Maine Foods, Inc.		6,100		545
Costco Wholesale Corp.		5,100		639
CVS Caremark Corp.		25,900		2,061
Dr. Pepper Snapple Group, Inc.		37,100		2,386
Kimberly-Clark Corp.		18,700		2,011
Kroger Co. (The)		4,300		224
Pilgrim’s Pride Corp(2)		1,300		40
Sanderson Farms, Inc.		25,300		2,225
Tyson Foods, Inc. Class A		19,000		748
				13,230
Energy—7.6%
Baker Hughes, Inc.		35,400		2,303
ConocoPhillips		34,200		2,617
Encana Corp.		4,400		93
EOG Resources, Inc.		10,000		990
Hess Corp.		16,200		1,528
SM Energy Co.		24,000		1,872
Whiting Petroleum Corp.(2)		25,000		1,939
				11,342
Financials—14.7%
Alleghany Corp.(2)		4,300		1,798
American Financial Group, Inc.		34,300		1,986
American Tower Corp.		600		56
Ameriprise Financial, Inc.		14,600		1,801
Annaly Capital Management, Inc.		17,100		183
Arlington Asset Investment Corp.		10,400		264
Aspen Insurance Holdings Ltd.		4,500		193
Banc of California, Inc.		4,900		57
Bank of Nova Scotia (The)		16,000		990

	SHARES		VALUE
Financials—continued
Berkshire Hathaway, Inc. Class A(2)		3	$	621
Berkshire Hathaway, Inc. Class B(2)		2,600		359
BOK Financial Corp.		3,300		219
C&F Financial Corp.		2,400		80
Capital One Financial Corp.		8,700		710
Comerica, Inc.		26,200		1,306
Cullen/Frost Bankers, Inc.		22,500		1,722
Discover Financial Services		5,200		335
First Bancorp		17,400		279
First Citizens BancShares, Inc. Class A		2,300		498
Great Southern Bancorp, Inc.		1,300		39
Jones Lang LaSalle, Inc.		3,000		379
Lazard Ltd. Class A		39,100		1,982
Lincoln National Corp.		10,000		536
Midsouth Bancorp, Inc.		5,600		105
PartnerRe Ltd.		15,600		1,714
Piper Jaffray Cos.(2)		11,300		590
Principal Financial Group, Inc.		3,900		205
RCS Capital Corp.		61,600		1,387
Simmons First National Corp. Class A		2,200		85
SVB Financial Group(2)		400		45
Western Asset Mortgage Capital Corp.		24,100		356
Wintrust Financial Corp.		27,700		1,237
				22,117
Health Care—15.6%
AbbVie, Inc.		14,600		843
Aetna, Inc.		14,200		1,150
Allergan, Inc.		14,300		2,548
Biogen Idec, Inc.(2)		2,500		827
Cardinal Health, Inc.		11,000		824
CIGNA Corp.		14,200		1,288
Edwards Lifesciences Corp.(2)		1,100		113
Gilead Sciences, Inc.(2)		29,200		3,108
Health Net, Inc.(2)		48,600		2,241
Johnson & Johnson		34,500		3,677
McKesson Corp.		11,700		2,278
PDL BioPharma, Inc.(3)		272,700		2,037
Teva Pharmaceutical Industries Ltd.		13,500		726
WellPoint, Inc.		14,900		1,782
				23,442
Industrials—12.5%
Boeing Co. (The)		9,800		1,248
Delta Air Lines, Inc.		56,700		2,050
General Dynamics Corp.		21,600		2,745
Huntington Ingalls Industries, Inc.		21,700		2,261
Illinois Tool Works, Inc.		500		42
Kirby Corp.(2)		5,000		589
Lockheed Martin Corp.		16,400		2,998
Manpower, Inc.		24,100		1,690
Northrop Grumman Corp.		19,200		2,530
Southwest Airlines Co.		76,500		2,583
Trinity Industries, Inc.		2,200		103
				18,839

	SHARES		VALUE
Information Technology—19.8%
Amdocs Ltd.		43,400	$	1,991
Apple, Inc.		49,400		4,977
Electronic Arts, Inc.(2)		59,200		2,108
Facebook, Inc. Class A(2)		35,200		2,782
FactSet Research Systems, Inc.		19,700		2,394
Fleetcor Technologies, Inc.(2)		3,400		483
Gartner, Inc.(2)		30,600		2,248
Hewlett-Packard Co.		71,000		2,518
Intel Corp.		24,700		860
Lexmark International, Inc. Class A		43,500		1,849
LogMeIn, Inc.(2)		15,000		691
Manhattan Associates, Inc.(2)		22,400		749
Microsoft Corp.		10,300		477
QUALCOMM, Inc.		19,000		1,421
Skyworks Solutions, Inc.		42,800		2,485
Take-Two Interactive Software, Inc.(2)		43,600		1,006
Texas Instruments, Inc.		14,700		701
WebMD Health Corp.(2)		900		38
				29,778
Materials—3.6%
Compass Minerals International, Inc.		15,400		1,298
PPG Industries, Inc.		11,900		2,341
Westlake Chemical Corp.		19,600		1,697
				5,336
Specialized REIT—0.5%
AG Mortgage Investment Trust, Inc.		45,600		812
Telecommunication Services—2.1%
China Mobile Ltd. Sponsored ADR		10,600		623
Verizon Communications, Inc.		51,000		2,549
				3,172
Utilities—1.5%
AGL Resources, Inc.		14,700		755
Edison International		20,200		1,129
Entergy Corp.		3,100		240
NRG Yield, Inc. Class A		4,200		198
				2,322
TOTAL COMMON STOCKS (Identified Cost $134,852)				148,950
TOTAL LONG-TERM INVESTMENTS—99.1%
(Identified Cost $134,852)				148,950	(5)

See Notes to Financial Statements

6

VIRTUS GROWTH & INCOME FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
SHORT-TERM INVESTMENTS—0.9%
Money Market Mutual Funds—0.9%
Fidelity Money Market Portfolio – Institutional Shares (seven-day effective yield 0.080%)		1,298,642	$	1,299
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $1,299)				1,299
SECURITIES LENDING COLLATERAL—1.2%
INVESCO Trust Short-Term Investments Liquid Assets Portfolio (The) Institutional Shares (seven-day effective yield 0.060%)(4)		1,735,225		1,735
TOTAL SECURITIES LENDING COLLATERAL
(Identified Cost $1,735)				1,735
TOTAL INVESTMENTS—101.2%
(Identified Cost $137,886)				151,984	(1)
Other assets and liabilities, net—(1.2)%				(1,764	)
NET ASSETS—100.0%			$	150,220

Abbreviations:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

⁽³⁾  All or a portion of security is on loan.

⁽⁴⁾  Represents security purchased with cash collateral received for securities on loan.

⁽⁵⁾  All or a portion of the fund’s assets are segregated as collateral for futures contracts.

Country Weightings†
United States	94	%
Canada	4
Bermuda	1
Israel	1
Total	100	%

^† % of total investments as of September 30, 2014

At September 30, 2014, the Fund had entered into futures contracts as follows:

	Expiration Date		Number of Contracts		Value of Contracts When Opened		Market Value of Contracts		Unrealized Appreciation (Depreciation)
S&P Mini Futures		December 2014		15	$	1,482	$	1,474	$	(8	)

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014			Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	148,950		$	148,950
Securities Lending Collateral		1,735			1,735
Short-Term Investments		1,299			1,299
Total Investments	$	151,984		$	151,984
Other Financial Instruments
Futures Contracts*	$	(8	)	$	(8	)

* Valued at the unrealized appreciation (depreciation) on the investment.

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

Security abbreviation definitions are located under the Key Investment Terms starting on page 2.

See Notes to Financial Statements

7

VIRTUS MID-CAP CORE FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—94.9%
Consumer Discretionary—9.2%
Advance Auto Parts, Inc.		753	$	98
Dick’s Sporting Goods, Inc.		3,068		135
Ross Stores, Inc.		3,100		234
				467
Consumer Staples—8.9%
Brown-Forman Corp. Class B		871		78
Church & Dwight Co., Inc.		1,339		94
Monster Beverage Corp.(2)		3,021		277
				449
Energy—7.0%
Core Laboratories N.V.		1,056		154
Dresser-Rand Group, Inc.(2)		2,417		199
				353
Financials—10.2%
First Cash Financial Services, Inc.(2)		1,720		96
RLI Corp.		2,653		115
Signature Bank(2)		1,287		144
T. Rowe Price Group, Inc.		2,007		158
				513
Health Care—13.1%
Cooper Companies, Inc.		730		114
Edwards Lifesciences Corp.(2)		2,074		212
Sirona Dental Systems, Inc.(2)		2,890		221
Zoetis, Inc.		3,137		116
				663

	SHARES		VALUE
Industrials—24.0%
Copart, Inc.(2)		3,989	$	125
Equifax, Inc.		1,722		129
Expeditors International of Washington, Inc.		4,139		168
Exponent, Inc.		2,100		149
Graco, Inc.		1,415		103
Nordson Corp.		1,855		141
Rockwell Collins, Inc.		2,261		178
Towers Watson & Co. Class A		1,260		125
WABCO Holdings, Inc.(2)		1,078		98
				1,216
Information Technology—11.6%
Amphenol Corp. Class A		1,939		194
ANSYS, Inc.(2)		2,201		166
Intuit, Inc.		2,585		227
				587
Materials—7.7%
International Flavors & Fragrances, Inc.		1,260		121
Sigma-Aldrich Corp.		1,968		267
				388
Utilities—3.2%
Questar Corp.		7,305		163
TOTAL COMMON STOCKS (Identified Cost $3,531)				4,799
TOTAL LONG-TERM INVESTMENTS—94.9%
(Identified Cost $3,531)				4,799

	SHARES		VALUE
SHORT-TERM INVESTMENTS—5.1%
Money Market Mutual Funds—5.1%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		258,739	$	259
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $259)				259
TOTAL INVESTMENTS—100.0%
(Identified Cost $3,790)				5,058	(1)
Other assets and liabilities, net—0.0%				2
NET ASSETS—100.0%			$	5,060

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	4,799	$	4,799
Short-Term Investments		259		259
Total Investments	$	5,058	$	5,058

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

8

VIRTUS MID-CAP GROWTH FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.7%
Consumer Discretionary—16.3%
Capella Education Co.		22,215	$	1,391
Domino’s Pizza, Inc.		24,565		1,891
HomeAway, Inc.(2)		71,195		2,527
Morningstar, Inc.		24,750		1,681
Pool Corp.		31,830		1,716
Ross Stores, Inc.		18,585		1,405
TripAdvisor, Inc.(2)		23,740		2,170
Wynn Resorts Ltd.		5,930		1,109
				13,890
Consumer Staples—11.4%
Brown-Forman Corp. Class B		25,950		2,341
McCormick & Co., Inc.		24,060		1,610
Mead Johnson Nutrition Co.		31,060		2,989
Monster Beverage Corp.(2)		30,505		2,796
				9,736
Energy—3.8%
Cameron International Corp.(2)		30,395		2,017
Core Laboratories N.V.		8,430		1,234
				3,251
Financials—8.1%
Fifth Third Bancorp		87,685		1,755
Financial Engines, Inc.		41,610		1,424
MarketAxess Holdings, Inc.		23,155		1,432
T. Rowe Price Group, Inc.		29,345		2,301
				6,912
Health Care—14.6%
athenahealth, Inc.(2)		13,955		1,838
Cerner Corp.(2)		32,500		1,936
Intuitive Surgical, Inc.(2)		3,975		1,836

	SHARES		VALUE
Health Care—continued
Medidata Solutions, Inc.(2)		34,195	$	1,514
Perrigo Co. plc		14,170		2,128
Sirona Dental Systems, Inc.(2)		22,710		1,741
Zoetis, Inc.		40,045		1,480
				12,473
Industrials—15.7%
Expeditors International of Washington, Inc.		31,355		1,272
Fastenal Co.		45,250		2,032
Middleby Corp.(2)		14,600		1,287
MSC Industrial Direct Co., Inc. Class A		19,345		1,653
Proto Labs, Inc.(2)		23,800		1,642
Roper Industries, Inc.		15,055		2,202
Stericycle, Inc.(2)		14,735		1,718
Towers Watson & Co. Class A		16,005		1,593
				13,399
Information Technology—26.7%
Amphenol Corp. Class A		25,020		2,498
ANSYS, Inc.(2)		27,640		2,092
CoStar Group, Inc.(2)		11,890		1,849
Ellie Mae, Inc.(2)		49,425		1,611
First Solar, Inc.(2)		24,735		1,628
Fleetmatics Group plc(2)		44,170		1,347
Gartner, Inc.(2)		35,165		2,584
MercadoLibre, Inc.		29,365		3,191
SolarWinds, Inc.(2)		53,410		2,246
Tableau Software, Inc. Class A(2)		21,645		1,572
Twitter Inc(2)		42,900		2,213
				22,831

	SHARES		VALUE
Materials—2.1%
Airgas, Inc.		16,315	$	1,805
TOTAL COMMON STOCKS (Identified Cost $69,955)				84,297
TOTAL LONG-TERM INVESTMENTS—98.7%
(Identified Cost $69,955)				84,297
SHORT-TERM INVESTMENTS—0.9%
Money Market Mutual Funds—0.9%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		810,279		810
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $810)				810
TOTAL INVESTMENTS—99.6%
(Identified Cost $70,765)				85,107	(1)
Other assets and liabilities, net—0.4%				301
NET ASSETS—100.0%			$	85,408

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	84,297	$	84,297
Short-Term Investments		810		810
Total Investments	$	85,107	$	85,107

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

9

VIRTUS MID-CAP VALUE FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.6%
Consumer Discretionary—8.1%
Big Lots, Inc.		347,370	$	14,954
Target Corp.		198,030		12,413
TJX Cos., Inc.		247,950		14,671
				42,038
Consumer Staples—10.4%
ConAgra Foods, Inc.		544,220		17,981
Koninklijke Ahold NV		839,179		13,569
Safeway, Inc.		659,070		22,606
				54,156
Energy—21.4%
CONSOL Energy, Inc.		448,370		16,975
Devon Energy Corp.		169,390		11,549
Kinder Morgan, Inc.(3)		245,942		9,429
Nabors Industries Ltd.		1,035,002		23,557
Occidental Petroleum Corp.		122,000		11,730
ONEOK, Inc.		372,640		24,427
Rowan Cos. plc Class A		542,610		13,734
				111,401
Financials—4.4%
Weyerhaeuser Co.		709,690		22,611
Industrials—20.8%
Con-way, Inc.		201,100		9,552
HD Supply Holdings, Inc.(2)		173,010		4,716
Owens Corning, Inc.		539,760		17,138
Raytheon Co.		168,660		17,139
Republic Services, Inc.		564,932		22,044
SPX Corp.		109,860		10,319
USG Corp.(2)(3)		555,980		15,284
Xylem, Inc.		348,720		12,376
				108,568

	SHARES		VALUE
Materials—31.0%
Alcoa, Inc.		1,318,760	$	21,219
Allegheny Technologies, Inc.		420,490		15,600
Ball Corp.		195,980		12,400
Crown Holdings, Inc.(2)		489,470		21,791
Dow Chemical Co. (The)		303,800		15,931
FMC Corp.		244,670		13,993
Freeport-McMoRan Copper & Gold, Inc.		317,600		10,370
International Paper Co.		442,740		21,136
Owens-Illinois, Inc.(2)		647,420		16,865
Sealed Air Corp.		354,930		12,380
				161,685
Utilities—2.5%
Dominion Resources, Inc.		187,950		12,985
TOTAL COMMON STOCKS (Identified Cost $370,925)				513,444
TOTAL LONG-TERM INVESTMENTS—98.6%
(Identified cost $370,925)				513,444
SHORT-TERM INVESTMENTS—1.7%
Money Market Mutual Funds—1.7%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		9,062,714		9,063
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $9,063)				9,063

	SHARES		VALUE
SECURITIES LENDING COLLATERAL—2.6%
INVESCO Trust Short-Term Investments Liquid Assets Portfolio (The) Institutional Shares (seven-day effective yield 0.060%)(4)		13,664,725	$	13,665
TOTAL SECURITIES LENDING COLLATERAL
(Identified Cost $13,665)				13,665
TOTAL INVESTMENTS—102.9%
(Identified Cost $393,653)				536,172	(1)
Other assets and liabilities, net—(2.9)%				(14,879	)
NET ASSETS—100.0%			$	521,293

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

⁽³⁾  All or a portion of security is on loan.

⁽⁴⁾  Represents security purchased with cash collateral received for securities on loan.

Country Weightings†
United States	90	%
Bermuda	4
Netherlands	3
United Kingdom	3
Total	100	%
† % of total investments as of September 30, 2014

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investments in Securities:
Equity Securities:
Common Stocks	$	513,444	$	513,444
Securities Lending Collateral		13,665		13,665
Short-Term Investments		9,063		9,063
Total Investments		536,172		536,172

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

10

VIRTUS QUALITY LARGE-CAP VALUE FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—99.1%
Consumer Discretionary—15.6%
Las Vegas Sands Corp.		23,000	$	1,431
Lowe’s Cos., Inc.		32,400		1,715
Time Warner, Inc.		29,700		2,234
TJX Cos., Inc.		36,200		2,142
VF Corp.		33,100		2,185
				9,707
Consumer Staples—6.6%
Coca-Cola Co. (The)		31,300		1,335
Coca-Cola Enterprises, Inc.		28,300		1,255
Diageo plc Sponsored ADR		8,600		993
Kimberly-Clark Corp.		4,980		536
				4,119
Energy—9.3%
Apache Corp.		14,500		1,361
Exxon Mobil Corp.		17,600		1,656
Halliburton Co.		13,706		884
National Oilwell Varco, Inc.		24,469		1,862
				5,763
Financials—23.8%
American Express Co.		28,600		2,504
Charles Schwab Corp. (The)		48,000		1,411
CME Group, Inc.		22,400		1,791
Franklin Resources, Inc.		38,900		2,124
PNC Financial Services Group, Inc. (The)		31,437		2,690
Travelers Cos., Inc. (The)		27,337		2,568
U.S. Bancorp		41,800		1,749
				14,837
Health Care—10.9%
Covidien plc		20,901		1,808
Gilead Sciences, Inc.		16,644		1,771

	SHARES		VALUE
Health Care—continued
Johnson & Johnson		14,925	$	1,591
Roche Holding AG Sponsored ADR		43,250		1,602
				6,772
Industrials—12.8%
3M Co.		18,400		2,607
Emerson Electric Co.		16,500		1,032
Illinois Tool Works, Inc.		18,100		1,528
Union Pacific Corp.		25,547		2,770
				7,937
Information Technology—11.3%
Analog Devices, Inc.		30,200		1,495
Apple, Inc.		28,418		2,863
Applied Materials, Inc.		124,450		2,689
				7,047
Materials—4.2%
International Flavors & Fragrances, Inc.		14,200		1,361
PPG Industries, Inc.		6,500		1,279
				2,640
Utilities—4.6%
AGL Resources, Inc.		41,677		2,140
Questar Corp.		32,800		731
				2,871
TOTAL COMMON STOCKS (Identified Cost $40,121)				61,693
TOTAL LONG-TERM INVESTMENTS—99.1%
(Identified Cost $40,121)				61,693

	SHARES		VALUE
SHORT-TERM INVESTMENTS—1.0%
Money Market Mutual Funds—1.0%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		593,286	$	593
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $593)				593
TOTAL INVESTMENTS—100.1%
(Identified Cost $40,714)				62,286	(1)
Other assets and liabilities, net—(0.1)%				(52	)
NET ASSETS—100.0%			$	62,234

Abbreviations:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

Country Weightings†
United States	93	%
Ireland	3
Switzerland	2
United Kingdom	2
Total	100	%
† % of total investments as of September 30, 2014

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	61,693	$	61,693
Short-Term Investments		593		593
Total Investments	$	62,286	$	62,286

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

Security abbreviation definitions are located under the Key Investment Terms starting on page 2.

See Notes to Financial Statements

11

VIRTUS QUALITY SMALL-CAP FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.3%
Consumer Discretionary—12.1%
Cheesecake Factory, Inc. (The)		151,300	$	6,884
Cinemark Holdings, Inc.		265,000		9,021
Interval Leisure Group, Inc.		308,000		5,867
Wolverine World Wide, Inc.		315,000		7,894
				29,666
Consumer Staples—8.6%
National Beverage Corp.(2)		412,304		8,040
Village Super Market, Inc.		110,000		2,506
WD-40 Co.		156,954		10,666
				21,212
Energy—1.5%
CARBO Ceramics, Inc.		62,596		3,708
Financials—19.5%
Bank of Hawaii Corp.		68,000		3,863
Eaton Vance Corp.		249,991		9,432
First Cash Financial Services, Inc.(2)		176,800		9,897
Primerica, Inc.		168,000		8,101
RLI Corp.		238,012		10,304
Westamerica Bancorp		138,868		6,460
				48,057
Health Care—6.0%
Owens & Minor, Inc.		212,338		6,952
Patterson Cos., Inc.		186,000		7,706
				14,658
Industrials—17.7%
CLARCOR, Inc.		142,061		8,961
Corporate Executive Board Co. (The)		160,782		9,658

	SHARES		VALUE
Industrials—continued
Graco, Inc.		151,767	$	11,076
Landstar System, Inc.		150,828		10,888
Sun Hydraulics Corp.		77,000		2,895
				43,478
Information Technology—27.5%
American Software, Inc. Class A		460,000		4,057
Badger Meter, Inc.		154,617		7,800
Cabot Microelectronics Corp.(2)		165,900		6,877
Cass Information Systems, Inc.		207,019		8,571
Cognex Corp.(2)		133,356		5,370
Computer Services, Inc.		147,104		5,423
Heartland Payment Systems, Inc.		110,000		5,249
Jack Henry & Associates, Inc.		179,450		9,988
Monotype Imaging Holdings, Inc.		144,299		4,087
Syntel Co.(2)		116,043		10,205
				67,627
Materials—1.9%
Balchem Corp.		83,836		4,743
Utilities—3.5%
Questar Corp.		392,000		8,737
TOTAL COMMON STOCKS (Identified Cost $175,057)				241,886
TOTAL LONG-TERM INVESTMENTS—98.3%
(Identified Cost $175,057)				241,886

	SHARES		VALUE
SHORT-TERM INVESTMENTS—1.8%
Money Market Mutual Funds—1.8%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		4,448,832	$	4,449
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $4,449)				4,449
TOTAL INVESTMENTS—100.1%
(Identified Cost $179,506)				246,335	(1)
Other assets and liabilities, net—(0.1)%				(176	)
NET ASSETS—100.0%			$	246,159

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	241,886	$	241,886
Short-Term Investments		4,449		4,449
Total Investments	$	246,335	$	246,335

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

12

VIRTUS SMALL-CAP CORE FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—95.7%
Consumer Discretionary—10.1%
Hibbett Sports, Inc.(2)		228,900	$	9,758
NVR, Inc.(2)		12,600		14,238
Pool Corp.		138,950		7,492
Thor Industries, Inc.		112,900		5,815
				37,303
Consumer Staples—1.3%
Chefs’ Warehouse, Inc. (The)(2)		300,000		4,878
Energy—1.0%
RPC, Inc.		169,100		3,714
Financials—19.4%
Brown & Brown, Inc.		428,200		13,766
Cohen & Steers, Inc.		241,211		9,272
Federated Investors, Inc. Class B		184,471		5,416
MarketAxess Holdings, Inc.		271,432		16,791
Primerica, Inc.		240,000		11,573
RLI Corp.		344,000		14,892
				71,710
Health Care—17.6%
Abaxis, Inc.		330,200		16,745
Computer Programs & Systems, Inc.		238,300		13,700
Owens & Minor, Inc.		304,000		9,953
Sirona Dental Systems, Inc.(2)		224,600		17,222
Techne Corp.		80,300		7,512
				65,132

	SHARES		VALUE
Industrials—26.5%
CLARCOR, Inc.		166,600	$	10,509
Copart, Inc.(2)		526,500		16,487
Exponent, Inc.		264,563		18,752
Landstar System, Inc.		185,200		13,370
Lincoln Electric Holdings, Inc.		51,700		3,574
MRC Global, Inc.(2)		543,000		12,663
RBC Bearings, Inc.		106,648		6,047
Rollins, Inc.		128,400		3,760
Toro Co. (The)		213,800		12,663
				97,825
Information Technology—18.0%
ANSYS, Inc.(2)		162,238		12,276
Blackbaud, Inc.		228,954		8,996
CDW Corp.		386,000		11,985
FactSet Research Systems, Inc.		151,700		18,436
Jack Henry & Associates, Inc.		261,800		14,572
				66,265
Materials—1.8%
AptarGroup, Inc.		111,500		6,768
TOTAL COMMON STOCKS (Identified Cost $274,912)				353,595
TOTAL LONG-TERM INVESTMENTS—95.7%
(Identified Cost $274,912)				353,595

	SHARES		VALUE
SHORT-TERM INVESTMENTS —4.3%
Money Market Mutual Funds—4.3%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		15,749,231	$	15,749
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $15,749)				15,749
TOTAL INVESTMENTS—100.0% (Identified Cost $290,661)				369,344	(1)
Other assets and liabilities, net—0.0%				28
NET ASSETS—100.0%			$	369,372

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	353,595	$	353,595
Short-Term Investments		15,749		15,749
Total Investments	$	369,344	$	369,344

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

13

VIRTUS SMALL-CAP SUSTAINABLE GROWTH FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.7%
Consumer Discretionary—15.7%
Hibbett Sports, Inc.(2)		100,400	$	4,280
HomeAway, Inc.(2)		106,000		3,763
Monro Muffler Brake, Inc.		51,000		2,475
Morningstar, Inc.		62,578		4,249
Pool Corp.		43,200		2,330
				17,097
Consumer Staples—8.5%
Chefs’ Warehouse, Inc. (The)(2)		318,000		5,171
PriceSmart, Inc.		47,722		4,087
				9,258
Financials—11.2%
Cohen & Steers, Inc.		61,900		2,380
Financial Engines, Inc.		112,551		3,851
MarketAxess Holdings, Inc.		97,000		6,000
				12,231
Health Care—14.6%
Abaxis, Inc.		94,100		4,772
National Research Corp. Class A(2)		254,601		3,312
Sirona Dental Systems, Inc.(2)		65,400		5,015
Techne Corp.		30,200		2,825
				15,924

	SHARES		VALUE
Industrials—13.6%
AAON, Inc.		113,768	$	1,935
Copart, Inc.(2)		127,200		3,983
Heartland Express, Inc.		48,500		1,162
HEICO Corp. Class A		75,669		3,049
HUB Group, Inc. Class A(2)		84,500		3,425
Omega Flex, Inc.		69,400		1,351
				14,905
Information Technology—31.8%
ANSYS, Inc.(2)		43,400		3,284
Ellie Mae, Inc.(2)		144,000		4,694
FactSet Research Systems, Inc.		34,200		4,156
FLIR Systems, Inc.		19,033		597
Forrester Research, Inc.		101,200		3,730
MercadoLibre, Inc.		60,200		6,541
Mesa Laboratories, Inc.		30,100		1,739
NVE Corp.(2)		100,200		6,467
Shutterstock, Inc.(2)		48,900		3,491
				34,699
Materials—3.3%
UFP Technologies, Inc.(2)		163,600		3,596
TOTAL COMMON STOCKS (Identified Cost $84,869)				107,710
TOTAL LONG-TERM INVESTMENTS—98.7%
(Identified Cost $84,869)				107,710

	SHARES		VALUE
SHORT-TERM INVESTMENTS—1.6%
Money Market Mutual Funds—1.6%
Fidelity Money Market Portfolio – Institutional Shares (Seven-day effective yield 0.080%)		1,707,468	$	1,707
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $1,707)				1,707
TOTAL INVESTMENTS—100.3% (Identified Cost $86,576)				109,417	(1)
Other assets and liabilities, net—(0.3)%				(335	)
NET ASSETS—100.0%			$	109,082

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	107,710	$	107,710
Short-Term Investments		1,707		1,707
Total Investments	$	109,417	$	109,417

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

14

VIRTUS STRATEGIC GROWTH FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—99.5%
Consumer Discretionary—19.5%
Home Depot, Inc. (The)		110,600	$	10,146
Las Vegas Sands Corp.		88,260		5,491
NIKE, Inc. Class B		186,610		16,646
Priceline Group, Inc. (The)(2)		12,420		14,389
Ross Stores, Inc.		121,390		9,175
Starbucks Corp.		157,700		11,900
Time Warner, Inc.		78,970		5,939
Time, Inc.(2)		—		0
TripAdvisor, Inc.(2)		90,090		8,236
				81,922
Consumer Staples—10.4%
Colgate-Palmolive Co.		197,390		12,874
Costco Wholesale Corp.		65,733		8,238
Estee Lauder Cos., Inc. (The) Class A		72,790		5,439
Mead Johnson Nutrition Co.		87,410		8,410
Monster Beverage Corp.(2)		98,451		9,025
				43,986
Energy—3.2%
Core Laboratories N.V.		32,350		4,734
Schlumberger Ltd.		88,160		8,965
				13,699
Financials—3.0%
Charles Schwab Corp. (The)		211,070		6,203
T. Rowe Price Group, Inc.		82,710		6,485
				12,688
Health Care—13.4%
Celgene Corp.(2)		85,350		8,089
Cerner Corp.(2)		98,081		5,843
Gilead Sciences, Inc.(2)		139,930		14,896
Intuitive Surgical, Inc.(2)		13,735		6,343
Medidata Solutions, Inc.(2)		143,040		6,335
Perrigo Co. plc		50,980		7,657
Zoetis, Inc.		194,390		7,183
				56,346

	SHARES		VALUE
Industrials—13.3%
Danaher Corp.		107,040	$	8,133
Expeditors International of Washington, Inc.		236,570		9,600
Fastenal Co.		181,919		8,168
MSC Industrial Direct Co., Inc. Class A		74,006		6,325
Precision Castparts Corp.		30,180		7,149
Roper Industries, Inc.		61,690		9,025
Towers Watson & Co. Class A		75,690		7,531
				55,931
Information Technology—32.6%
Accenture plc Class A		103,380		8,407
Amphenol Corp. Class A		131,810		13,162
ANSYS, Inc.(2)		118,960		9,002
Apple, Inc.		296,170		29,839
Applied Materials, Inc.		530,020		11,454
Baidu, Inc. Sponsored ADR(2)		56,330		12,293
CoStar Group, Inc.(2)		43,755		6,805
Facebook, Inc. Class A(2)		357,630		28,267
Fleetmatics Group plc(2)		213,860		6,523
Visa, Inc. Class A		54,880		11,710
				137,462
Materials—4.1%
Ecolab, Inc.		78,790		9,047
Praxair, Inc.		62,570		8,071
				17,118
TOTAL COMMON STOCKS (Identified Cost $284,427)				419,152
TOTAL LONG-TERM INVESTMENTS—99.5%
(Identified Cost $284,427)				419,152

	SHARES		VALUE
SHORT-TERM INVESTMENTS—0.8%
Money Market Mutual Funds—0.8%
Fidelity Money Market Portfolio – Institutional Shares (seven-day effective yield 0.080%)		3,206,341	$	3,206
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $3,206)				3,206
TOTAL INVESTMENTS—100.3% (Identified Cost $287,633)				422,358	(1)
Other assets and liabilities, net—(0.3)%				(1,432	)
NET ASSETS—100.0%			$	420,926

Abbreviations:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 – Quoted Prices
Investment in Securities:
Equity Securities:
Common Stocks	$	419,152	$	419,152
Short-Term Investments		3,206		3,206
Total Investments	$	422,358	$	422,358

There are no Level 2 (significant observable inputs) or Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

Security abbreviation definitions are located under the Key Investment Terms starting on page 2.

See Notes to Financial Statements

15

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
FOREIGN GOVERNMENT SECURITIES—3.6%
Argentine Republic
Series X, 7.000%, 4/17/17	$	115		$	103
8.750%, 5/7/24		80			73
Series NY, 8.280%, 12/31/33(16)		484			418
Bolivarian Republic of Venezuela
RegS 7.000%, 12/1/18(5)		85			61
RegS 8.250%, 10/13/24(5)		140			90
7.650%, 4/21/25		320			198
9.375%, 1/13/34		245			164
Commonwealth of Australia Series 130, 4.750%, 6/15/16		370	AUD		336
Commonwealth of New Zealand
Series 415, 6.000%, 4/15/15		250	NZD		198
Series 1217, 6.000%, 12/15/17		205	NZD		170
Federative Republic of Brazil 8.500%, 1/5/24		1,140	BRL		421
Kingdom of Morocco 144A 4.250%, 12/11/22(4)		200			199
Mongolia 144A 5.125%, 12/5/22(4)		200			179
Provincia de Neuquen, Argentina 144A 7.875%, 4/26/21(4)		156			155
Republic of Chile 5.500%, 8/5/20		95,000	CLP		168
Republic of Colombia 12.000%, 10/22/15		121,000	COP		64
Treasury Note, Series B, 11.250%, 10/24/18		230,500	COP		136
4.375%, 3/21/23		386,000	COP		164
Republic of Costa Rica 144A 4.375%, 4/30/25(4)		200			183
Republic of Croatia 144A 6.375%, 3/24/21(4)		215			234
Republic of El Salvador 144A 6.375%, 1/18/27(4)		175			176
Republic of Ghana 144A 8.125%, 1/18/26(4)		200			201
Republic of Indonesia
Series FR30, 10.750%, 5/15/16		3,731,000	IDR		321
Series FR55, 7.375%, 9/15/16		1,836,000	IDR		150
Series FR63, 5.625%, 5/15/23		1,061,000	IDR		72
Republic of Peru
GDN 144A 7.840%, 8/12/20(4)		220	PEN		87
RegS 6.900%, 8/12/37(5)		335	PEN		117
Republic of Philippines 4.950%, 1/15/21		5,000	PHP		117

	PAR VALUE			VALUE
FOREIGN GOVERNMENT SECURITIES—continued
Republic of South Africa Series R203, 8.250%, 9/15/17		1,125	ZAR	$	102
Republic of Sri Lanka 144A 6.000%, 1/14/19(4)	$	200			211
Republic of Uruguay 4.375%, 12/15/28		2,500	UYU(10)		142
Russian Federation
144A 7.850%, 3/10/18		10,000	RUB		241
144A 4.875%, 9/16/23(4)		400			394
United Mexican States
Series M, 6.000%, 6/18/15		4,715	MXN		358
Series M, 6.500%, 6/9/22		6,270	MXN		483
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified Cost $7,608)					6,886
MORTGAGE-BACKED SECURITIES—3.2%
Non-Agency—3.2%
Aventura Mall Trust 13-AVM, C 144A 3.867%, 12/5/32(3)(4)		200			204
Banc of America Alternative Loan Trust 07-2, 2A4 5.750%, 6/25/37		177			139
Banc of America Funding Trust 05-1, 1A1 5.500%, 2/25/35		58			60
Bank of America (Merrill Lynch – Countrywide) Alternative Loan Trust 04-22CB, 1A1 6.000%, 10/25/34		229			244
Bank of America (Merrill Lynch) Mortgage Investors Trust 98-C1, CTL 6.750%, 11/15/26(3)		375			422
Citigroup Mortgage Loan Trust, Inc. 05-5, 2A3 5.000%, 8/25/35		96			96
Credit Suisse Commercial Mortgage Trust 07-C5, A1AM 5.870%, 9/15/40(3)		114			117
Fannie Mae Connecticut Avenue Securities 14-C02, 2M2 2.755%, 5/25/24(3)		215			199
Goldman Sachs Mortgage Pass-Through-Securities Mortgage Loan Trust
05-RP1, 1A3 144A 8.000%, 1/25/35(4)		264			280
06-RP1, 1A4 144A 8.500%, 1/25/36(4)		134			144
Goldman Sachs Mortgage Securities Trust II 07-GG10, A4 5.991%, 8/10/45(3)		45			50

	PAR VALUE		VALUE
Non-Agency—continued
GSR Mortgage Loan Trust 05-AR4, 6A1 5.229%, 7/25/35(3)	$	185	$	184
JPMorgan Chase (Bear Stearns) Commercial Mortgage Securities, Inc.
05-PW10, AM 5.449%, 12/11/40(3)		150		156
06-PW13, AM 5.582%, 9/11/41(3)		375		401
07-T28, A3 5.793%, 9/11/42		242		241
JPMorgan Chase (Washington Mutual) Commercial Mortgage Securities Trust 06-SL1, A 144A 4.465%, 11/23/43(3)(4)		3		3
JPMorgan Chase Commercial Mortgage Securities Trust
10-CNTR, A2 144A 4.311%, 8/5/32(4)		350		378
06-LDP9, A3 5.336%, 5/15/47		183		196
07-LDPX, AM 5.464%, 1/15/49(3)		175		183
JPMorgan Chase Mortgage Trust 14-1, 1A1 144A 4.000%, 1/25/44(3)(4)		216		224
Lehman Brothers Commercial Mortgage Trust 07-C3, A4 6.101%, 7/15/44(3)		160		175
MASTR Alternative Loan Trust 04-6, 7A1 6.000%, 7/25/34		100		101
MASTR Reperforming Loan Trust
05-1, 1A2 144A 6.500%, 8/25/34(4)		160		164
05-1, 1A5 144A 8.000%, 8/25/34(4)		193		198
Morgan Stanley Capital I Trust
05-IQ10, A4B 5.284%, 9/15/42(3)		365		378
07-IQ14, AM 5.869%, 4/15/49(3)		137		144
Motel 6 Trust 12-MTL6 D 144A 3.781%, 10/5/25(4)		205		205
Nomura Asset Acceptance Corp.
04-R1, A1 144A 6.500%, 3/25/34(4)		276		283
04-R3, A1 144A 6.500%, 2/25/35(4)		67		69
Residential Asset Mortgage Products, Inc. 05-SL2, A4 7.500%, 2/25/32		114		121
Residential Funding Mortgage Securities I, Inc. 05-S9, A9 5.500%, 12/25/35		201		200

See Notes to Financial Statements

16

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
Non-Agency—continued
Structured Asset Securities Corp. Mortgage Pass-Through Certificates 02-AL1, A3 3.450%, 2/25/32	$	133	$	131
SunTrust Adjustable Rate Mortgage Loan Trust 07-S1, 5A1 3.600%, 1/25/37(3)		137		137
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $6,081)				6,227
ASSET-BACKED SECURITIES—1.6%
American Home 4 Rent 14-SFR2, C 144A 4.705%, 10/17/36(4)		180		180
Applebee’s (IHOP Funding LLC) 14-1, A2 144A 4.277%, 9/5/44(4)		170		168
Bank of America (Merrill Lynch – Countrywide) Asset-Backed Certificates
05-1 AF5A 5.374%, 7/25/35(3)		216		215
05-12, 1A4 5.161%, 2/25/36(3)		213		213
05-12, 2A4 5.167%, 2/25/36(3)		160		155
Carfinance Capital Auto Trust 14-1A, D 144A 4.900%, 4/15/20(4)		254		260
Cheesecake Restaurant Holdings, Inc. 13-1A, A2 144A 4.474%, 3/20/43(4)		171		173
Exeter Automobile Receivables Trust 14-1A, C 144A 3.570%, 7/15/19(4)		140		142
Fairway Outdoor Funding LLC 12-1A, A2 144A 4.212%, 10/15/42(4)		251		250
GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35(3)		143		145
LEAF Receivables Funding 9 LLC 13-1, E1 144A 6.000%, 9/15/21(4)		164		168
MASTR Specialized Loan Trust 05-3, A2 144A 5.704%, 11/25/35(3)(4)		88		90
New Century Home Equity Loan Trust 05-A, A4W 5.035%, 8/25/35(3)		178		186
Origen Manufactured Housing Contract Trust 04-B, M1 5.730%, 11/15/35(3)		110		115
Residential Funding Mortgage Securities II Home Loan Trust
03-HS3, AI4 5.550%, 9/25/33(3)		116		120

	PAR VALUE			VALUE
ASSET-BACKED SECURITIES—continued
06-H11, M1 6.010%, 2/25/36(3)	$	97		$	97
07-HI1, A3 5.720%, 3/25/37		75			77
SolarCity LMC Series III LLC 14-2, A 144A 4.020%, 7/20/44(4)		215			216
Terwin Mortgage Trust 04-15ALT, A1 144A 5.665%, 7/25/34(3)(4)		91			88
TOTAL ASSET-BACKED SECURITIES (Identified Cost $2,996)					3,058
CORPORATE BONDS AND NOTES—21.0%
Consumer Discretionary—3.0%
Anna Merger Sub, Inc. 144A 7.750%, 10/1/22(4)		130			131
Arcos Dorados Holdings, Inc. 144A 10.250%, 7/13/16(4)		285	BRL		111
Ashton Woods USA LLC (Ashton Woods Finance Co.) 144A 6.875%, 2/15/21(4)		190			182
Boyd Gaming Corp. 9.000%, 7/1/20		190			200
Brookfield Residential Properties, Inc.
144A 6.500%, 12/15/20(4)		175			182
144A 6.125%, 7/1/22(4)		55			56
Caesars Entertainment Operating Co., Inc. 9.000%, 2/15/20		40			31
Caesars Entertainment Resort Properties LLC 144A 8.000%, 10/1/20(4)		65			64
Caesars Growth Properties Holdings LLC 144A 9.375%, 5/1/22(4)		95			83
CCO Holdings LLC 5.250%, 9/30/22		90			88
Chrysler Group LLC 8.250%, 6/15/21		215			235
Churchill Downs, Inc. 144A 5.375%, 12/15/21(4)		175			176
Clear Channel Worldwide Holdings, Inc. Series B 7.625%, 3/15/20		380			396
Columbus International, Inc. 144A 7.375%, 3/30/21(4)		200			209
Guitar Center, Inc. 144A 9.625%, 4/15/20(4)		45			35
iHeartCommunications, Inc.
10.000%, 1/15/18		50			42
144A 9.000%, 9/15/22(4)		65			65
Intelsat Jackson Holdings SA 5.500%, 8/1/23		130			125
Isle of Capri Casinos, Inc. 5.875%, 3/15/21		190			193

	PAR VALUE		VALUE
Consumer Discretionary—continued
JC Penney Corp., Inc. 8.125%, 10/1/19	$	50	$	49
Landry’s, Inc. 144A 9.375%, 5/1/20(4)		125		133
Meritor, Inc. 6.750%, 6/15/21		160		167
MHGE Parent LLC 144A 8.500%, 8/1/19(4)		145		138
Mohegan Tribal Gaming Authority 9.750%, 9/1/21		180		184
Numericable Group SA 144A 6.000%, 5/15/22(4)		215		217
Penn National Gaming, Inc. 5.875%, 11/1/21		85		79
Pinnacle Entertainment, Inc.
7.500%, 4/15/21		75		78
6.375%, 8/1/21		220		231
QVC, Inc. 5.125%, 7/2/22		135		142
Scientific Games International, Inc. 144A 6.625%, 5/15/21(4)		185		155
Seminole Hard Rock Entertainment, Inc. 144A 5.875%, 5/15/21(4)		50		49
Sinclair Television Group, Inc. 5.375%, 4/1/21		190		188
Sirius XM Radio, Inc. 144A 4.250%, 5/15/20(4)		260		250
Station Casinos LLC 7.500%, 3/1/21		125		131
Taylor Morrison Communities, Inc. 144A 5.250%, 4/15/21(4)		225		220
Toll Brothers Finance Corp.
4.000%, 12/31/18		210		210
6.750%, 11/1/19		135		152
Viking Cruises Ltd. 144A 8.500%, 10/15/22(4)		180		197
VTR Finance B.V. 144A 6.875%, 1/15/24(4)		200		207
				5,781
Consumer Staples—0.3%
Darling Ingredients, Inc. 5.375%, 1/15/22		175		177
Elizabeth Arden, Inc. 7.375%, 3/15/21		115		103
Ingles Markets, Inc. 5.750%, 6/15/23		160		161
Whitewave Foods Co. (The) 5.375%, 10/1/22		60		61
				502
Energy—3.9%
Atlas Energy Holdings Operating Co. LLC 144A 7.750%, 1/15/21(4)		65		64
BreitBurn Energy Partners 7.875%, 4/15/22		95		97

See Notes to Financial Statements

17

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
Energy—continued
California Resources Corp. 144A 6.000%, 11/15/24(4)	$	145	$	149
Calumet Specialty Products Partners LP 144A 6.500%, 4/15/21(4)		195		186
Carrizo Oil & Gas, Inc. 7.500%, 9/15/20		70		73
CHC Helicopter SA 9.250%, 10/15/20		198		212
CITGO Petroleum Corp. 144A 6.250%, 8/15/22(4)		95		99
Compagnie Generale de Geophysique-Veritas 6.500%, 6/1/21		190		168
CONSOL Energy, Inc. 144A 5.875%, 4/15/22(4)		125		124
Denbury Resources, Inc. 5.500%, 5/1/22		180		179
Endeavor Energy Resources LP 144A 7.000%, 8/15/21(4)		120		124
Energy Transfer Equity LP 5.875%, 1/15/24		180		185
Energy XXI Gulf Coast, Inc. 144A 6.875%, 3/15/24(4)		225		212
EnQuest plc 144A 7.000%, 4/15/22(4)		200		189
EPL Oil & Gas, Inc. 8.250%, 2/15/18		210		216
EV Energy Partners LP 8.000%, 4/15/19		80		83
Exterran Partners LP 144A 6.000%, 10/1/22(4)		150		147
Forest Oil Corp. 7.250%, 6/15/19		185		175
FTS International, Inc. 144A 6.250%, 5/1/22(4)		90		89
Gazprom Neft OAO (GPN Capital SA) 144A 6.000%, 11/27/23(4)(7)		200		189
Gulfmark Offshore, Inc. 6.375%, 3/15/22		185		179
Gulfport Energy Corp. 144A 7.750%, 11/1/20(4)		25		26
Laredo Petroleum, Inc. 7.375%, 5/1/22		170		179
Linn Energy LLC 6.500%, 5/15/19		150		148
Lukoil OAO International Finance BV 144A 7.250%, 11/5/19(4)		190		201
MEG Energy Corp. 144A 7.000%, 3/31/24(4)		90		93
NGL Energy Partners LP (NGL Energy Finance Corp.) 144A 5.125%, 7/15/19(4)		95		93
Novatek OAO (Novatek Finance Ltd.) 144A 4.422%, 12/13/22(4)(7)		200		173
Odebrecht Offshore Drilling Finance Ltd. 144A 6.750%, 10/1/22(4)		238		247

	PAR VALUE			VALUE
Energy—continued
Pacific Rubiales Energy Corp. 144A 5.375%, 1/26/19(4)	$	165		$	168
Parker Drilling Co. (The) 7.500%, 8/1/20		190			200
Petrobras Global Finance BV 6.250%, 3/17/24		175			183
Petrobras International Finance Co. 5.375%, 1/27/21		180			182
Petroleos de Venezuela SA
Series 2015, 5.000%, 10/28/15		80			69
RegS 8.500%, 11/2/17(5)		620			490
144A 6.000%, 5/16/24(4)		490			254
Petroleos Mexicanos
3.500%, 1/30/23		100			96
144A 4.875%, 1/18/24(4)		60			63
6.500%, 6/2/41		100			116
PHI, Inc. 5.250%, 3/15/19		70			71
QEP Resources, Inc. 6.875%, 3/1/21		125			136
QGOG Constellation SA 144A 6.250%, 11/9/19(4)		200			201
Regency Energy Partners LP 5.875%, 3/1/22		140			147
Rosetta Resources, Inc. 5.875%, 6/1/22		185			185
Rosneft Oil Co. 144A 4.199%, 3/6/22(4)(7)		200			171
Sabine Pass Liquefaction LLC 5.625%, 2/1/21		160			165
Transocean, Inc. 3.800%, 10/15/22		195			179
Tullow Oil plc 144A 6.000%, 11/1/20(4)		200			201
					7,576
Financials—6.7%
Aircastle Ltd. 5.125%, 3/15/21		345			342
Akbank TAS 144A 7.500%, 2/5/18		300	TRY		117
Allstate Corp. (The) 5.750%, 8/15/53(3)(6)		260			277
ALROSA Finance S.A. 144A 7.750%, 11/3/20(4)		200			207
Banco ABC Brasil S.A. 144A 7.875%, 4/8/20(4)		185			199
Banco Bilbao Vizcaya Argentaria Bancomer S.A.
144A 6.500%, 3/10/21(4)		200			218
144A 6.750%, 9/30/22(4)		170			190
Banco Bradesco S.A. 144A 5.900%, 1/16/21(4)		200			208
Banco de Credito del Peru 144A 6.125%, 4/24/27(3)(4)		210			224
Banco do Brasil SA RegS 5.375%, 1/15/21(5)		250			255
Banco Internacional del Peru SAA 144A 6.625%, 3/19/29(3)(4)		90			98

	PAR VALUE			VALUE
Financials—continued
Banco Santander Brasil SA 144A 8.000%, 3/18/16(4)		370	BRL	$	144
Banco Santander Chile 144A 3.875%, 9/20/22(4)	$	195			192
Banco Votorantim S.A. 144A 7.375%, 1/21/20(4)		195			216
Bancolombia S.A. 5.125%, 9/11/22		215			216
Bank of Georgia JSC 144A 7.750%, 7/5/17(4)		200			214
Braskem Finance Ltd. 144A 5.750%, 4/15/21(4)		235			240
Brazil Loan Trust 1 144A 5.477%, 7/24/23(4)		200			208
Caixa Economica Federal 144A 7.250%, 7/23/24(3)(4)		200			201
CareTrust Partnership LP 144A 5.875%, 6/1/21(4)		145			146
CCO Holdings LLC (CCO Holdings Capital Corp.) 5.250%, 3/15/21		85			84
Continental Airlines Pass-Through-Trust 99-2, C2 AMBC 6.236%, 3/15/20		136			146
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 144A 11.000%, 12/31/49(3)(4)(6)(8)		195			258
CorpGroup Banking S.A. 144A 6.750%, 3/15/23(4)		250			251
Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21(4)		250			247
Eurasian Development Bank 144A 4.767%, 9/20/22(4)		200			194
Evergrande Real Estate Group Ltd. 144A 8.750%, 10/30/18(4)		200			187
Excel Trust LP 4.625%, 5/15/24		45			46
Fidelity National Financial, Inc. 5.500%, 9/1/22		50			54
First Cash Financial Services, Inc. 6.750%, 4/1/21		105			110
First Niagara Financial Group, Inc. 7.250%, 12/15/21		255			294
General Motors Financial Co., Inc. 4.750%, 8/15/17		355			375
Genworth Holdings, Inc. 4.900%, 8/15/23		130			134
GLP Capital LP (GLP Financing II, Inc.)
4.375%, 11/1/18		5			5
4.875%, 11/1/20		140			143
5.375%, 11/1/23		5			5

See Notes to Financial Statements

18

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
Financials—continued
Hutchison Whampoa International Ltd. Series 12, 144A 6.000%(3)(4)(6)(8)	$	250		$	268
ICAHN Enterprises LP (ICAHN Enterprises Finance Corp.)
4.875%, 3/15/19		15			15
6.000%, 8/1/20		70			72
5.875%, 2/1/22		145			145
iStar Financial, Inc. 5.000%, 7/1/19		100			97
Itau Unibanco Holding S.A. 144A 5.125%, 5/13/23(4)		200			195
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42(4)		200			217
Leucadia National Corp. 5.500%, 10/18/23		70			73
Level 3 Financing, Inc. 7.000%, 6/1/20		220			233
Magyar Fejlesztesi Bank Zrt. 144A 6.250%, 10/21/20(4)		200			222
Morgan Stanley 144A 10.090%, 5/3/17		300	BRL		120
Series H, 5.450%, 12/29/49(3)		180			179
MPT Operating Partnership LP 5.500%, 5/1/24		65			66
Nationstar Mortgage LLC 6.500%, 7/1/21		325			311
Navient Corp. (SLM Corp.) 5.500%, 1/25/23		175			168
Nordea Bank AB 144A 4.250%, 9/21/22(4)		240			247
Onex York Acquisition Corp. 144A 8.500%, 10/1/22(4)		110			110
PennantPark Investment Corp. 4.500%, 10/1/19		150			151
Phosagro OAO (Phosagro Bond Funding Ltd.) 144A 4.204%, 2/13/18(4)(7)		200			193
PKO Finance AB 144A 4.630%, 9/26/22(4)(7)		240			249
Progressive Corp. (The) 6.700%, 6/15/37(3)		305			334
Prudential Financial, Inc.
5.875%, 9/15/42(3)		400			424
5.625%, 6/15/43(3)(6)		75			78
Regency Energy Partners LP 4.500%, 11/1/23		145			141
Reliance Holdings USA, Inc. 144A 5.400%, 2/14/22(4)		250			273
Russian Agricultural Bank OJSC (RSHB Capital SA) 144A 5.298%, 12/27/17(4)		175			171
Schaeffler Finance BV 144A 4.750%, 5/15/21(4)		205			205
Teachers Insurance & Annuity Association of America 144A 4.375%, 9/15/54(3)(4)		150			151

	PAR VALUE		VALUE
Financials—continued
Turkiye Is Bankasi 144A 3.875%, 11/7/17(4)	$	235	$	235
Ukreximbank Via Biz Finance plc RegS 8.375%, 4/27/15(5)(7)		100		85
Voya Financial, Inc. (f.k.a. ING (U.S.), Inc.) 5.650%, 5/15/53(3)		150		151
VTB Bank OJSC (VTB Capital SA) 144A 6.000%, 4/12/17(4)(7)		200		200
Walter Investment Management Corp. 144A 7.875%, 12/15/21(4)		215		213
Yapi ve Kredi Bankasi AS 144A 4.000%, 1/22/20(4)		200		190
				12,827
Health Care—1.2%
Acadia Healthcare Co.,Inc. 5.125%, 7/1/22		60		59
Capsugel SA PIK Interest Capitalization 144A 7.000%, 5/15/19(4)(14)		35		35
Catamaran Corp. 4.750%, 3/15/21		120		116
Centene Corp. 4.750%, 5/15/22		145		146
Community Health Systems, Inc. (CHS)
144A 5.125%, 8/1/21(4)		40		40
144A 6.875%, 2/1/22(4)		40		42
Crimson Merger Sub, Inc. 144A 6.625%, 5/15/22(4)		145		132
Endo Finance LLC 144A 5.375%, 1/15/23(4)		145		139
HCA, Inc. 6.500%, 2/15/20		180		197
IASIS Healthcare LLC 8.375%, 5/15/19		105		110
inVentiv Health, Inc. 144A 9.000%, 1/15/18(4)		20		21
LifePoint Hospitals, Inc. 5.500%, 12/1/21		135		137
Mallinckrodt International Finance S.A. 144A 5.750%, 8/1/22(4)		75		76
MPH Acquisition Holdings LLC 144A 6.625%, 4/1/22(4)		120		121
Salix Pharmaceuticals Ltd. 144A 6.000%, 1/15/21(4)		30		33
Select Medical Corp. 6.375%, 6/1/21		180		181
Tenet Healthcare Corp.
144A 5.500%, 3/1/19(4)		100		101
4.500%, 4/1/21		275		269
8.125%, 4/1/22		175		192

	PAR VALUE		VALUE
Health Care—continued
Valeant Pharmaceuticals International, Inc. Escrow Corp.
144A 7.500%, 7/15/21(4)	$	5	$	5
144A 5.625%, 12/1/21(4)		5		5
144A 7.250%, 7/15/22(4)		190		201
				2,358
Industrials—2.0%
AAR Corp. 7.250%, 1/15/22		165		178
ADT Corp.(The) 6.250%, 10/15/21		210		218
AECOM Technology Corp. 144A 5.750%, 10/15/22(4)		70		71
Ahern Rentals, Inc. 144A 9.500%, 6/15/18(4)		155		166
Air Canada
144A 6.750%, 10/1/19(4)		190		201
Pass-Through-Trust, 13-1, B 144A 5.375%, 5/15/21(4)		85		87
American Airlines Pass-Through-Trust 14-1, B 4.375%, 10/1/22		180		183
Atlas Air Pass-Through-Trust 00-1, A 8.707%, 1/2/19		166		174
Bombardier, Inc. 144A 6.125%, 1/15/23(4)		320		322
Continental Airlines Pass-Through-Trust
99-1, A 6.545%, 2/2/19		240		266
01-1, A1 6.703%, 6/15/21		256		277
CPG Merger Sub LLC 144A 8.000%, 10/1/21(4)		55		56
DP World Ltd. 144A 6.850%, 7/2/37(4)		100		112
ESAL GmbH 144A 6.250%, 2/5/23(4)		200		195
Masco Corp. 5.950%, 3/15/22		130		142
Northwest Airlines Pass-Through-Trust 02-1, G2
6.264%, 11/20/21		119		128
Rexel SA 144A 5.250%, 6/15/20(4)		230		232
Spirit AeroSystems, Inc. 144A 5.250%, 3/15/22(4)		50		50
TransDigm, Inc. 144A 6.000%, 7/15/22(4)		180		178
U.S. Airways Pass-Through-Trust
01-1, G 7.076%, 3/20/21		105		114
11-1, A 7.125%, 10/22/23		317		368
UAL Pass-Through-Trust 07-01, A 6.636%, 7/2/22		184		199
				3,917

See Notes to Financial Statements

19

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
Information Technology—1.0%
Avaya, Inc. 144A 7.000%, 4/1/19(4)	$	315	$	308
Ceridian LLC (Comdata, Inc.) 144A 8.125%, 11/15/17(4)		5		5
First Data Corp.
144A 8.250%, 1/15/21(4)		170		181
11.750%, 8/15/21		300		349
PIK Interest Capitalization, 144A 8.750%, 1/15/22(4)(14)		115		123
Infinity Acquisition LLC (Infinity Acquisition Finance Corp.) 144A 7.250%, 8/1/22(4)		150		146
Infor Software Parent LLC PIK Interest Capitalization, 144A 7.125%, 5/1/21(4)(14)		55		55
Interactive Data Corp. 144A 5.875%, 4/15/19(4)		135		133
QualityTech LP (QTS Finance Corp.) 144A 5.875%, 8/1/22(4)		15		15
Sanmina Corp. 144A 4.375%, 6/1/19(4)		40		39
Sensata Technologies BV 144A 4.875%, 10/15/23(4)		225		218
Sophia Holding Finance LP PIK Interest Capitalization, 144A 9.625%, 12/1/18(4)(14)		70		71
SunGard Availability Services Capital, Inc. 144A 8.750%, 4/1/22(4)		95		71
VeriSign, Inc. 4.625%, 5/1/23		120		116
				1,830
Materials—1.6%
Alpek SA de C.V. 144A 5.375%, 8/8/23(4)		260		269
Beverage Packaging Holdings Luxembourg II SA 144A 6.000%, 6/15/17(4)		425		420
Cascades, Inc. 144A 5.500%, 7/15/22(4)		215		209
Cemex SAB de CV 144A 7.250%, 1/15/21(4)		200		212
Eldorado Gold Corp. 144A 6.125%, 12/15/20(4)		70		70
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20(4)		300		337
Hexion U.S. Finance Corp.
8.875%, 2/1/18		105		107
6.625%, 4/15/20		100		101
Inversiones CMPC S.A. 144A 4.375%, 5/15/23(4)		200		194

	PAR VALUE			VALUE
Materials—continued
Rayonier AM Products, Inc. 144A 5.500%, 6/1/24(4)	$	115		$	110
Sappi Papier Holding GmbH 144A 6.625%, 4/15/21(4)		260			270
Tronox Finance LLC 6.375%, 8/15/20		155			157
United States Steel Corp. 6.875%, 4/1/21		225			241
Vale Overseas Ltd. 4.375%, 1/11/22		225			227
Vedanta Resources plc 144A 9.500%, 7/18/18(4)		165			190
					3,114
Telecommunication Services—0.9%
America Movil SAB de C.V. Series 12 6.450%, 12/5/22		2,000	MXN		144
Bharti Airtel International Netherlands BV 144A 5.125%, 3/11/23(4)		200			211
CenturyLink, Inc. Series S, 6.450%, 6/15/21		150			161
Digicel Group Ltd. 144A 8.250%, 9/30/20(4)		200			207
Frontier Communications Corp. 6.250%, 9/15/21		95			95
Sprint Communications, Inc. 6.000%, 11/15/22		95			93
Sprint Corp. 144A 7.250%, 9/15/21(4)	��	105			110
T-Mobile USA, Inc.
6.125%, 1/15/22		100			101
6.731%, 4/28/22		35			36
6.500%, 1/15/24		75			76
Wind Acquisition Finance S.A. 144A 4.750%, 7/15/20(4)		200			193
Windstream Corp.
7.750%, 10/15/20		105			111
7.750%, 10/1/21		160			171
					1,709
Utilities—0.4%
AmeriGas Partners LP 7.000%, 5/20/22		125			132
Calpine Corp. 144A 6.000%, 1/15/22(4)		5			5
Electricite de France SA 144A 5.250%(3)(4)(6)(8)		240			244
NRG Energy, Inc.
7.875%, 5/15/21		175			189
6.625%, 3/15/23		5			5

	PAR VALUE		VALUE
Utilities—continued
RJS Power Holdings LLC 144A 5.125%, 7/15/19(4)	$	120	$	120
				694
TOTAL CORPORATE BONDS AND NOTES
(Identified Cost $40,224)				40,308
LOAN AGREEMENTS(3)—5.0%
Consumer Discretionary—1.2%
Advantage Sales & Marketing, Inc. Second Lien, 7.500%, 7/25/22		105		104
Aristocrat International Ltd. Tranche B, 0.000%, 9/29/21(9)		105		104
Brickman Group Ltd. LLC (The) Second Lien, 7.500%, 12/17/21		69		69
Caesars Entertainment Operating Co., Inc.
Tranche B-4, 10.500%, 10/31/16		45		43
Tranche B-6, 6.948%, 3/1/17		40		36
Tranche B-7, 9.750%, 1/28/18		22		21
Caesars Growth Properties Holdings LLC Tranche B, First Lien 6.250%, 5/8/21		74		70
CBAC Borrower LLC Tranche B, 8.250%, 7/2/20		106		108
Clear Channel Communications, Inc. Tranche D, 6.904%, 1/30/19		319		305
Cumulus Media Holdings, Inc. 4.250%, 12/23/20		183		180
Delta 2 (Lux) S.A.R.L. Second Lien, 0.000%, 7/29/22(9)		80		80
Fitness International LLC Tranche B, 5.500%, 7/1/20		130		129
Granite Broadcasting Corp. Tranche B, First Lien 6.750%, 5/23/18		70		70
Key Safety Systems, Inc. 4.750%, 8/29/21		88		88
Landry’s, Inc. Tranche B, 4.000%, 4/24/18		256		254
Marina District Finance Co., Inc. 6.750%, 8/15/18		78		79
Peppermill Casinos, Inc. Tranche B, 7.250%, 11/9/18		181		184

See Notes to Financial Statements

20

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
Consumer Discretionary—continued
Shingle Springs Tribal Gaming Authority 6.250%, 8/29/19	$	116	$	119
Transtar Holding Co. Second Lien, 10.000%, 10/9/19		77		76
TWCC Holding Corp. Second Lien, 7.000%, 6/26/20		214		210
				2,329
Consumer Staples—0.1%
AdvancePierre Foods, Inc. First Lien, 5.750%, 7/10/17		23		23
Albertson’s LLC Tranche B-4 4.500%, 8/25/21		115		114
New Hostess Brand Acquisition LLC Tranche B, 6.750%, 4/9/20		126		130
				267
Energy—0.5%
Arch Coal, Inc. 6.250%, 5/16/18		185		169
Chief Exploration & Development LLC Second Lien 7.500%, 5/16/21		132		132
Drillships Financing Holding, Inc. 5.500%, 7/25/21		112		109
Expro Finservices S.A.R.L. 5.750%, 9/2/21		89		89
Fieldwood Energy LLC Second Lien, 8.375%, 9/30/20		180		181
Jonah Energy LLC Second Lien, 7.500%, 5/12/21		106		105
Seadrill Operating LP 4.000%, 2/21/21		103		99
Templar Energy LLC Second Lien, 8.500%, 11/25/20		170		165
				1,049
Financials—0.3%
Altisource Solutions S.A.R.L. Tranche B, 4.500%, 12/9/20		180		172
Asurion LLC Second Lien, 8.500%, 3/3/21		180		183
Capital Automotive LP Second Lien, 6.000%, 4/30/20		83		84
Walter Investment Management Corp. Tranche B 4.750%, 12/18/20		70		67
				506

	PAR VALUE		VALUE
Health Care—0.6%
American Renal Holdings, Inc. Second Lien, 8.500%, 3/20/20	$	147	$	146
Ardent Medical Services, Inc.
First Lien, 6.750%, 7/2/18		59		60
Second Lien, 11.000%, 1/2/19		37		38
CRC Health Corp. Tranche B, First Lien, 5.250%, 3/29/21		46		45
Gentiva Health Services, Inc. Tranche B, 6.500%, 10/18/19		181		181
InVentiv Health, Inc. Tranche B-4 7.750%, 5/15/18		150		149
MMM Holdings, Inc. 9.750%, 12/12/17		55		55
MSO of Puerto Rico, Inc. 9.750%, 12/12/17		40		40
NVA Holdings, Inc. Second Lien 8.000%, 8/14/22		97		97
PharMEDium Healthcare Corp. Second Lien, 7.750%, 1/28/22		36		36
Regional Care, Inc. (RCHP, Inc.) First Lien, 6.000%, 4/23/19		85		85
Salix Pharmaceuticals Ltd. First Lien, 4.250%, 1/2/20		47		47
Surgery Center Holdings, Inc. First Lien, 6.000%, 4/11/19		50		50
Second Lien, 9.750%, 4/10/20		78		78
0.000%, 7/24/20(9)		19		19
0.000%, 7/23/21(9)		55		54
				1,180
Industrials—0.8%
Alliance Laundry Systems LLC Second Lien, 9.500%, 12/10/19		17		17
American Airlines, Inc. Tranche B, 3.750%, 6/27/19		171		168
Brock Holdings Ill, Inc. First Lien, 6.000%, 3/16/17		140		137
CHG Healthcare Services, Inc. Second Lien, 9.000%, 11/19/20		39		40
Commercial Barge Line Co. First Lien, 7.500%, 9/22/19		113		114
DynCorp International, Inc. 0.000%, 7/7/16(9)		85		85
Filtration Group Corp. Second Lien, 8.250%, 11/22/21		140		141

	PAR VALUE		VALUE
Industrials—continued
Harland Clarke Holdings Corp. Tranche B-3, 7.000%, 5/22/18	$	79	$	80
Tranche B-4, 6.000%, 8/4/19		34		35
Husky Injection Molding Systems Ltd. (Yukon Acquisition, Inc.) 4.250%, 6/30/21		105		104
International Equipment Solutions Global B.V. 6.750%, 8/16/19		108		108
Landmark U.S. Member LLC (Landmark U.S. Corp Acquisition, Inc.) Second Lien, 8.250%, 10/26/20		145		145
Navistar, Inc. Tranche B, 5.750%, 8/17/17		132		133
Sedgwick, Inc. Second Lien 0.000%, 2/28/22(9)		140		137
				1,444
Information Technology—1.2%
Allflex Holdings III, Inc. Second Lien, 8.000%, 7/19/21		102		102
Applied Systems, Inc. Second Lien, 7.500%, 1/24/22		8		8
Attachmate Group, Inc. (The) First Lien, 7.250%, 11/22/17		64		64
Blue Coat Systems, Inc.
4.000%, 5/31/19		97		95
Second Lien, 9.500%, 6/26/20		305		305
Deltek, Inc. Second Lien, 10.000%, 10/10/19		111		113
Evergreen Skills Lux S.A.R.L. (Skillsoft Corp.) Second Lien, 7.750%, 4/28/22		81		78
First Data Corp. 3.655%, 3/23/18		253		249
Infinity Acquisition Ltd. 4.250%, 8/6/21		71		70
IPC Systems, Inc. First Lien, 6.000%, 11/8/20		99		99
Kronos, Inc.
First Lien, 4.500%, 10/30/19		2		2
Second Lien, 9.750%, 4/30/20		162		167
Lanyon Solutions, Inc. First Lien, 5.500%, 11/13/20		106		106
Mitchell International, Inc. Second Lien, 8.500%, 10/11/21		268		268
RP Crown Parent LLC Second Lien, 11.250%, 12/21/19		70		67

See Notes to Financial Statements

21

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
Information Technology—continued
SRA International, Inc. 6.500%, 7/20/18	$	148		$	148
Sungard Availability Services Capital, Inc. Tranche B, 6.000%, 3/29/19		93			86
Travelport LLC 6.000%, 9/2/21		87			87
Wall Street Systems, Inc. 4.500%, 4/30/21		122			121
					2,235
Materials—0.2%
Berlin Packaging, Inc. S.A.R.L. 0.000%, 9/23/22(9)		14			14
Fortescue Metals Group (FMG) Resources Property Ltd. 3.750%, 6/30/19		66			65
Houghton International, Inc. Holding Corp. Second Lien, 9.500%, 12/21/20		115			116
Noranda Aluminum Acquisition Corp. Tranche B, 5.750%, 2/28/19		195			190
					385
Telecommunication Services—0.1%
Global Tel*Link Corp. Second Lien, 9.000%, 11/23/20		69			69
Integra Telecom Holdings, Inc. Tranche B, 5.250%, 2/22/19		82			81
Securus Technologies Holdings, Inc. Second Lien, 9.000%, 4/30/21		80			80
					230
Utilities—0.0%
Atlantic Power LP 4.750%, 2/24/21		39			38
ExGen Renewables I LLC 5.250%, 2/6/21		44			44
					82
TOTAL LOAN AGREEMENTS (Identified Cost $9,755)					9,707
	SHARES
PREFERRED STOCK—1.0%
Energy—0.1%
PTT Exploration & Production PCL, 144A, 4.875%(3)(4)		200	(11)		202

	SHARES			VALUE
Financials—0.9%
Ally Financial, Inc. Series A, 8.500%(2)(3)		6,485		$	175
Citigroup, Inc. Series J, 7.125%(2)		7,400			198
General Electric Capital Corp. Series B, 6.250%(3)		100	(11)		108
General Electric Capital Corp. Series C, 5.250%(3)		100	(11)		100
Goldman Sachs Group, Inc. (The) Series L, 5.700%(3)		180	(11)		183
JPMorgan Chase & Co. Series V, 5.000%(3)		160	(11)		156
JPMorgan Chase & Co., Series Q, 5.150%(3)		220	(11)		209
PNC Financial Services Group, Inc. (The) Series R, 4.850%(3)		155	(11)		147
Wells Fargo & Co. Series K, 7.980%(3)		165	(11)		180
Zions Bancorp, 6.950%(2)(3)		8,300			221
					1,677
TOTAL PREFERRED STOCK (Identified Cost $1,889)					1,879
COMMON STOCKS—62.1%
Consumer Discretionary—9.8%
Bridgestone Corp. Unsponsored ADR		42,450			699
Comcast Corp. Class A		36,000			1,936
Ford Motor Co.		116,000			1,716
Fuji Heavy Industries Ltd.		14,050			928
Goodyear Tire & Rubber Co. (The)		80,000			1,807
Las Vegas Sands Corp.		29,000			1,804
Lear Corp.		20,000			1,728
Li & Fung Ltd.		270,200			599
Macy’s, Inc.		34,000			1,978
Melco Crown Entertainment Ltd. ADR		22,250			585
Michael Kors Holdings Ltd.(2)		26,000			1,856
Tata Motors Ltd. Sponsored ADR		13,500			590
Time Warner, Inc.		26,000			1,955
Toyota Motor Corp. Sponsored ADR		5,300			623
					18,804
Consumer Staples—2.8%
Archer-Daniels-Midland Co.(The)		41,000			2,095
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		12,600			549
Marine Harvest Asa ADR(12)		52,750			742
PepsiCo, Inc.		22,000			2,048
					5,434

	SHARES		VALUE
Energy—6.0%
Cameco Corp.		32,850	$	580
Canadian Natural Resources Ltd.		19,100		742
Continental Resources, Inc.(2)		26,000		1,728
Encana Corp.		34,850		739
Helmerich & Payne, Inc.		18,000		1,762
Royal Dutch Shell plc Class B ADR(12)		9,550		756
Schlumberger Ltd.		17,000		1,729
Suncor Energy, Inc.		50,000		1,807
Valero Energy Corp.		38,000		1,758
				11,601
Financials—11.9%
Aflac, Inc.		33,000		1,922
Aviva plc Sponsored ADR		43,350		734
Banco Bilbao Vizcaya Argentaria SA Sponsored ADR		53,548		643
BB&T Corp.		55,000		2,047
BlackRock, Inc.		6,200		2,036
Blackstone Group LP (The)		65,000		2,046
BNP Paribas ADR		21,400		705
Credit Agricole S.A.		113,800		848
Goldman Sachs Group, Inc. (The)		11,000		2,019
ING Groep N.V. ADR(2)		58,650		832
Intesa Sanpaolo Sponsored ADR		44,400		802
JPMorgan Chase & Co.		34,000		2,048
Lincoln National Corp.		38,000		2,036
ORIX Corp. Sponsored ADR		9,550		659
T. Rowe Price Group, Inc.		26,000		2,038
U.S. Bancorp		36,000		1,506
				22,921
Health Care—5.5%
Abbott Laboratories		47,000		1,955
Biogen Idec, Inc.(2)		5,800		1,919
H Lundbeck A/S Sponsored ADR		25,450		565
Novartis AG ADR		8,100		763
Shire plc ADR		3,100		803
UnitedHealth Group, Inc.		23,000		1,984
Valeant Pharmaceuticals International, Inc.(2)		6,100		800
Zimmer Holdings, Inc.		19,000		1,910
				10,699
Industrials—9.7%
Alaska Air Group, Inc.		44,000		1,916
Cummins, Inc.		13,000		1,716
Deere & Co.		24,000		1,968
Dover Corp.		23,000		1,848
Hitachi Ltd. ADR		10,050		769
Hutchison Whampoa Ltd. ADR(12)		27,550		662
L-3 Communications Holdings, Inc.		18,000		2,140
Nidec Corp. ADR		62,900		1,064

See Notes to Financial Statements

22

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
Industrials—continued
Parker Hannifin Corp.		16,000	$	1,826
Schneider Electric SA		41,500		633
Trinity Industries, Inc.		43,000		2,009
Union Pacific Corp.		19,000		2,060
				18,611
Information Technology—11.0%
Apple, Inc.		21,000		2,116
Cisco Systems, Inc.		81,000		2,039
EMC Corp.		67,000		1,960
Google, Inc. Class A(2)		1,800		1,059
Google, Inc. Class C(2)		1,800		1,039
Intel Corp.		59,000		2,054
Jabil Circuit, Inc.		94,000		1,896
MasterCard, Inc. Class A		27,000		1,996
NetApp, Inc.		48,000		2,062
NXP Semiconductor NV(2)		5,300		363
Oracle Corp.		48,000		1,837
QUALCOMM, Inc.		27,000		2,019
Taiwan Semiconductors Manufacturing Co., Ltd. Sponsored ADR		37,100		749
				21,189
Materials—2.7%
CF Industries Holdings, Inc.		7,900		2,206
Freeport-McMoRan Copper & Gold, Inc.		59,000		1,927
Newcrest Mining Ltd.(2)(12)		59,350		536
Syngenta AG ADR		7,750		491
				5,160
Specialized REIT—0.2%
HCA Holdings, Inc.(2)		7,000		494
Telecommunication Services—2.2%
KDDI Corp., ADR		41,500		622
Nippon Telegraph & Telephone Corp. ADR		30,450		947
Spark New Zealand Ltd.		51,800		602
Verizon Communications, Inc.		40,000		1,999
				4,170
Utilities—0.3%
GDF Suez		20,550		516
TOTAL COMMON STOCKS (Identified Cost $88,913)				119,599
EXCHANGE-TRADED FUNDS—0.5%
Proshares Ultrashort S&P500(2)		42,000		1,036
TOTAL EXCHANGE-TRADED FUNDS (Identified Cost $1,023)				1,036
TOTAL LONG-TERM INVESTMENTS—98.0%
(Identified Cost $158,489)				188,700	(15)

	SHARES		VALUE
SHORT-TERM INVESTMENTS—1.6%
Money Market Mutual Funds—1.6%
Fidelity Money Market Portfolio – Institutional Shares (seven-day effective yield 0.080%)		3,048,966	$	3,049
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $3,049)				3,049
SECURITIES LENDING COLLATERAL—1.1%
INVESCO Trust Short-Term Investments Liquid Assets Portfolio (The) Institutional Shares (seven-day effective yield 0.060%)(13)		2,190,166		2,190
TOTAL SECURITIES LENDING COLLATERAL
(Identified Cost $2,190)				2,190
TOTAL INVESTMENTS—100.7% (Identified Cost $163,728)				193,939	(1)
Other assets and liabilities, net—(0.7)%				(1,514	)
NET ASSETS—100.0%			$	192,425

Abbreviations:

ADR American Depositary Receipt

PIK Payment-in-Kind Security

Foreign Currencies

AUD Australian Dollar

BRL Brazilian Real

CLP Chilean Peso

COP Colombian Peso

IDR Indonesian Rupiah

MXN Mexican Peso

NZD New Zealand Dollar

PEN Peruvian Nuevo Sol

PHP Philippine Peso

RUB Russian Ruble

TRY Turkish Lira

UYU Uruguayan Peso

ZAR South African Rand

Footnote Legend:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 9 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

⁽³⁾  Variable or step coupon security; interest rate shown reflects the rate in effect at September 30, 2014.

⁽⁴⁾  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2014, these securities amounted to a value of $27,169 or 14.1% of net assets.

⁽⁵⁾  Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933.

⁽⁶⁾  Interest payments may be deferred.

⁽⁷⁾  This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁸⁾  No contractual maturity date.

⁽⁹⁾  This loan will settle after September 30, 2014, at which time the interest rate based on the the London Interbank Offered Rate (“LIBOR”) and the agreed upon spread on trade date will be reflected.

⁽¹⁰⁾  Principal amount is adjusted according to local inflation Index.

⁽¹¹⁾  Value shown as par value.

⁽¹²⁾  All or a portion of security is on loan.

⁽¹³⁾  Represents security purchased with cash collateral received for securities on loan.

⁽¹⁴⁾  100% of the income received was in cash.

⁽¹⁵⁾  All or a portion of the portfolio is segregated as collateral for a delayed delivery settlement.

⁽¹⁶⁾  Security in default.

Country Weightings†
United States	74	%
Canada	3
Japan	3
United Kingdom	3
France	2
Brazil	1
Netherlands	1
Other	13
Total	100	%
† % of total investments as of September 30, 2014

Security abbreviation definitions are located under the Key Investment Terms starting on page 2.

See Notes to Financial Statements

23

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

The following table provides a summary of inputs used to value the Fund’s net assets as of September 30, 2014 (see Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Investment in Securities:
Debt Securities:
Asset-Backed Securities	$	3,058	$	—	$	3,058
Corporate Bonds and Notes		40,308		—		40,308
Foreign Government Securities		6,886		—		6,886
Loan Agreements		9,707		—		9,707
Mortgage-Backed Securities		6,227		—		6,227
Equity Securities:
Common Stocks		119,599		119,599		—
Exchange-Traded Funds		1,036		1,036		—
Preferred Stock		1,879		593		1,286
Securities Lending Collateral		2,190		2,190		—
Short-Term Investments		3,049		3,049		—
Total	$	193,939	$	126,467	$	67,472

There were no transfers between Level 1 and Level 2 for the period.

There are no Level 3 (significant unobservable inputs) priced securities.

See Notes to Financial Statements

24

THIS PAGE INTENTIONALLY BLANK.

VIRTUS EQUITY TRUST

STATEMENTS OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2014 (Unaudited)

(Reported in thousands except shares and per share amounts)

	Growth & Income Fund		Mid-Cap Core Fund			Mid-Cap Growth Fund			Mid-Cap Value Fund			Quality Large-Cap Value Fund
Assets
Investment in securities at value(1)(2)	$	151,984	$	5,058		$	85,107		$	536,172		$	62,286
Deposits with broker for futures contracts		69		—			—			—			—
Receivables
Investment securities sold		—		—			1,685			—			—
Fund shares sold		10		4			—	(3)		1,166			2
Receivable from adviser		—		6			—			—			—
Dividends and interest receivable		148		2			55			691			75
Tax reclaims		6		—			—			—			—
Variation margin for futures contracts		100		—			—			—			—
Prepaid trustee retainer		1		—	(3)		—	(3)		4			—	(3)
Prepaid expenses		30		19			28			52			25
Total assets		152,348		5,089			86,875			538,085			62,388
Liabilities
Payables
Fund shares repurchased		186		6			30			1,608			57
Investment securities purchased		—		—			1,299			733			—
Collateral on securities loaned		1,735		—			—			13,665			—
Investment advisory fees		81		—			55			338			34
Distribution and service fees		48		1			21			113			16
Administration fees		16		1			9			55			7
Transfer agent fees and expenses		45		1			28			235			17
Professional fees		6		17			17			18			18
Other accrued expenses		11		3			8			27			5
Total liabilities		2,128		29			1,467			16,792			154
Net Assets	$	150,220	$	5,060		$	85,408		$	521,293		$	62,234
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	124,389	$	3,653		$	70,008		$	433,821		$	63,738
Accumulated undistributed net investment income (loss)		210		(12	)		(490	)		2,938			116
Accumulated undistributed net realized gain (loss)		11,531		151			1,548			(57,985	)		(23,192	)
Net unrealized appreciation (depreciation) on investments		14,090		1,268			14,342			142,519			21,572
Net Assets	$	150,220	$	5,060		$	85,408		$	521,293		$	62,234
Class A
Net asset value (net assets/shares outstanding) per share	$	20.83	$	20.54		$	20.94		$	36.69		$	14.55
Maximum offering price per share NAV/(1-5.75%)	$	22.10	$	21.79		$	22.22		$	38.93		$	15.44
Shares of beneficial interest outstanding, no par value, unlimited authorization		5,443,625		181,957			3,693,028			7,088,993			3,027,821
Net Assets	$	113,412	$	3,737		$	77,332		$	260,099		$	44,067
Class B
Net asset value (net assets/shares outstanding) and offering price per share	$	—	$	—		$	17.60		$	—		$	—
Shares of beneficial interest outstanding, no par value, unlimited authorization		—		—			34,198			—			—
Net Assets	$	—	$	—		$	602		$	—		$	—
Class C
Net asset value (net assets/shares outstanding) and offering price per share	$	19.44	$	19.86		$	17.61		$	35.12		$	14.24
Shares of beneficial interest outstanding, no par value, unlimited authorization		1,448,955		8,606			270,987			1,845,724			610,773
Net Assets	$	28,167	$	171		$	4,771		$	64,813		$	8,697
Class I
Net asset value (net assets/shares outstanding) and offering price per share	$	20.80	$	20.66		$	21.32		$	36.70		$	14.56
Shares of beneficial interest outstanding, no par value, unlimited authorization		415,525		55,752			126,740			5,351,391			650,503
Net Assets	$	8,641	$	1,152		$	2,703		$	196,381		$	9,470
(1) Investment in securities at cost	$	137,886	$	3,790		$	70,765		$	393,653		$	40,714
(2) Market value of securities on loan	$	1,697	$	—		$	—		$	13,339		$	—
(3) Amount is less than $500.

See Notes to Financial Statements

26

VIRTUS EQUITY TRUST

STATEMENTS OF ASSETS AND LIABILITIES (Continued)

SEPTEMBER 30, 2014 (Unaudited)

(Reported in thousands except shares and per share amounts)

	Quality Small-Cap Fund			Small-Cap Core Fund			Small-Cap Sustainable Growth Fund			Strategic Growth Fund			Tactical Allocation Fund
Assets
Investment in securities at value(1)(2)	$	246,335		$	369,344		$	109,417		$	422,358		$	193,939
Cash		—			—			—			—			89
Receivables
Investment securities sold		—			—			1,538			3,213			1,261
Fund shares sold		663			1,094			136			4			14
Dividends and interest receivable		66			55			17			200			1,034
Tax reclaims		—	(3)		—			—			1			8
Prepaid expenses		32			45			27			42			30
Prepaid trustee retainer		—			1			1			2			1
Total assets		247,096			370,539			111,136			425,820			196,376
Liabilities
Payables
Fund shares repurchased		577			651			955			82			106
Investment securities purchased		—			52			921			4,239			1,390
Collateral on securities loaned		—			—			—			—			2,190
Investment advisory fees		146			235			72			245			113
Distribution and service fees		38			41			26			92			43
Administration fees		26			38			12			43			21
Transfer agent fees and expenses		119			107			41			144			45
Professional fees		18			16			18			19			22
Other accrued expenses		13			27			9			30			21
Total liabilities		937			1,167			2,054			4,894			3,951
Net Assets	$	246,159		$	369,372		$	109,082		$	420,926		$	192,425
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	179,562		$	285,236		$	82,349		$	275,168		$	157,829
Accumulated undistributed net investment income (loss)		208			(103	)		(946	)		(698	)		68
Accumulated undistributed net realized gain (loss)		(440	)		5,556			4,838			11,731			4,323
Net unrealized appreciation (depreciation) on investments		66,829			78,683			22,841			134,725			30,205
Net Assets	$	246,159		$	369,372		$	109,082		$	420,926		$	192,425
Class A
Net asset value (net assets/shares outstanding) per share	$	15.30		$	23.42		$	15.72		$	13.26		$	9.77
Maximum offering price per share NAV/(1-5.75%)	$	16.23		$	24.85		$	16.68		$	14.07		$	10.37
Shares of beneficial interest outstanding, no par value, unlimited authorization		5,107,333			2,567,625			4,774,372			30,630,049			19,244,268
Net Assets	$	78,149		$	60,142		$	75,076		$	406,141		$	188,076
Class B
Net asset value (net assets/shares outstanding) and offering price per share	$	—		$	—		$	—		$	11.24		$	9.90
Shares of beneficial interest outstanding, no par value, unlimited authorization		—			—			—			211,159			44,999
Net Assets	$	—		$	—		$	—		$	2,374		$	446
Class C
Net asset value (net assets/shares outstanding) and offering price per share	$	15.18		$	21.14		$	14.75		$	11.24		$	9.99
Shares of beneficial interest outstanding, no par value, unlimited authorization		1,575,506			1,470,124			809,866			571,928			390,750
Net Assets	$	23,918		$	31,084		$	11,947		$	6,431		$	3,903
Class I
Net asset value (net assets/shares outstanding) and offering price per share	$	15.31		$	24.22		$	15.85		$	13.51		$	—
Shares of beneficial interest outstanding, no par value, unlimited authorization		9,412,171			11,486,466			1,391,447			442,526			—
Net Assets	$	144,092		$	278,146		$	22,059		$	5,980		$	—
(1) Investment in securities at cost	$	179,506		$	290,661		$	86,576		$	287,633		$	163,728
(2) Market value of securities on loan	$	—		$	—		$	—		$	—		$	2,143
(3) Amount is less than $500.

See Notes to Financial Statements

27

VIRTUS EQUITY TRUST

STATEMENTS OF OPERATIONS

SIX MONTHS ENDED SEPTEMBER 30, 2014 (Unaudited)

(Reported in thousands)

	Growth & Income Fund			Mid-Cap Core Fund			Mid-Cap Growth Fund			Mid-Cap Value Fund			Quality Large-Cap Value Fund
Investment Income
Dividends	$	1,288		$	20		$	342		$	7,327		$	621
Security lending		6			—			5			32			—
Foreign taxes withheld		(10	)		—	(1)		(1	)		—			—	(1)
Total investment income		1,284			20			346			7,359			621
Expenses
Investment advisory fees		560			19			343			1,937			233
Service fees, Class A		140			4			97			339			57
Distribution and service fees, Class B		—			—			3			—			—
Distribution and service fees, Class C		142			1			24			332			38
Administration fees		89			3			51			307			37
Transfer agent fees and expenses		119			6			74			526			52
Registration fees		25			26			29			32			25
Printing fees and expenses		11			1			7			30			5
Custodian fees		2			1			1			24			2
Professional fees		18			14			14			15			14
Trustees’ fees and expenses		3			—	(1)		2			9			1
Miscellaneous expenses		4			1			4			10			2
Total expenses		1,113			76			649			3,561			466
Less expenses reimbursed and/or waived by investment adviser		(85	)		(45	)		(10	)		—			(30	)
Net expenses		1,028			31			639			3,561			436
Net investment income (loss)		256			(11	)		(293	)		3,798			185
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		10,395			157			1,573			13,314			2,893
Net realized gain (loss) on futures		85			—			—			—			—
Net change in unrealized appreciation (depreciation) on investments		(5,263	)		112			(1,955	)		(23,498	)		18
Net change in unrealized appreciation (depreciation) on futures		(13	)		—			—			—			—
Net gain (loss) on investments		5,204			269			(382	)		(10,184	)		2,911
Net increase (decrease) in net assets resulting from operations	$	5,460		$	258		$	(675	)	$	(6,386	)	$	3,096

⁽¹⁾ Amount is less than $500.

See Notes to Financial Statements

28

VIRTUS EQUITY TRUST

STATEMENTS OF OPERATIONS (Continued)

SIX MONTHS ENDED SEPTEMBER 30, 2014 (Unaudited)

(Reported in thousands)

	Quality Small-Cap Fund			Small-Cap Core Fund			Small-Cap Sustainable Growth Fund			Strategic Growth Fund			Tactical Allocation Fund
Investment Income
Dividends	$	1,978		$	2,421		$	315		$	2,208		$	1,601
Interest		—			—			—			—			2,086
Security lending		—			—			—			—	(1)		26
Foreign taxes withheld		—			—			—			(5	)		(47	)
Total investment income		1,978			2,421			315			2,203			3,666
Expenses
Investment advisory fees		913			1,508			530			1,465			699
Service fees, Class A		149			157			107			505			244
Distribution and service fees, Class B		—			—			—			12			2
Distribution and service fees, Class C		129			163			64			32			19
Administration fees		155			240			71			249			129
Transfer agent fees and expenses		219			357			120			366			121
Registration fees		32			37			36			31			32
Printing fees and expenses		20			27			9			30			13
Custodian fees		2			4			2			3			37
Professional fees		15			13			15			15			19
Trustees’ fees and expenses		5			9			2			8			4
Miscellaneous expenses		7			10			4			12			8
Total expenses		1,646			2,525			960			2,728			1,327
Less expenses reimbursed and/or waived by investment adviser		—			—			(52	)		—			—
Total expenses		1,646			2,525			908			2,728			1,327
Net investment income (loss)		332			(104	)		(593	)		(525	)		2,339
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		13,549			13,627			6,163			19,111			4,782
Net realized gain (loss) on foreign currency transactions		—			—			—			—			2
Net change in unrealized appreciation (depreciation) on investments		(25,879	)		(13,240	)		(9,046	)		8,950			(5,056	)
Net change in unrealized appreciation (depreciation) on foreign currency translation		—			—			—			—			(7	)
Net gain (loss) on investments		(12,330	)		387			(2,883	)		28,061			(279	)
Net increase (decrease) in net assets resulting from operations	$	(11,998	)	$	283		$	(3,476	)	$	27,536		$	2,060

⁽¹⁾ Amount is less than $500.

See Notes to Financial Statements

29

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(Reported in thousands)

	Growth & Income Fund						Mid-Cap Core Fund
	Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
INCREASE/(DECREASE) IN NET ASSETS
From Operations
Net investment income (loss)	$	256		$	765		$	(11	)	$	(12	)
Net realized gain (loss)		10,480			38,826			157			110
Net change in unrealized appreciation (depreciation)		(5,276	)		(12,389	)		112			466
Increase (decrease) in net assets resulting from operations		5,460			27,202			258			564
From Distributions to Shareholders
Net investment income, Class A		(395	)		(552	)		—			—
Net investment income, Class B		—			—			—			—
Net investment income, Class C		(7	)		(20	)		—			—
Net investment income, Class I		(42	)		(88	)		—			—
Net realized short-term gains, Class A		—			—			(22	)		(1	)
Net realized short-term gains, Class C		—			—			(1	)		—	(1)
Net realized short-term gains, Class I		—			—			(7	)		(1	)
Net realized long-term gains, Class A		(9,336	)		(7,849	)		(31	)		(38	)
Net realized long-term gains, Class B		—			—			—			—
Net realized long-term gains, Class C		(2,535	)		(2,128	)		(2	)		(4	)
Net realized long-term gains, Class I		(740	)		(897	)		(10	)		(20	)
Decrease in net assets from distributions to shareholders		(13,055	)		(11,534	)		(73	)		(64	)
From Share Transactions (See Note 6)
Change in net assets from share transactions, Class A		7,918			(1,365	)		575			1,034
Change in net assets from share transactions, Class B		—			—			—			—
Change in net assets from share transactions, Class C		1,799			277			(43	)		(53	)
Change in net assets from share transactions, Class I		(2,197	)		(1,632	)		(71	)		(300	)
Increase (decrease) in net assets from share transactions		7,520			(2,720	)		461			681
Net increase (decrease) in net assets		(75	)		12,948			646			1,181
Net Assets
Beginning of period		150,295			137,347			4,414			3,233
End of period	$	150,220		$	150,295		$	5,060		$	4,414
Accumulated undistributed net investment income (loss) at end of period	$	210		$	398		$	(12	)	$	—

⁽¹⁾ Amount is less than $500.

See Notes to Financial Statements

30

Mid-Cap Growth Fund						Mid-Cap Value Fund						Quality Large-Cap Value Fund						Quality Small-Cap Fund
Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
$	(293	)	$	(693	)	$	3,798		$	1,909		$	185		$	548		$	332		$	634
	1,573			6,024			13,314			26,883			2,893			5,914			13,549			24,070
	(1,955	)		4,524			(23,498	)		62,708			18			4,474			(25,879	)		22,688
	(675	)		9,855			(6,386	)		91,500			3,096			10,936			(11,998	)		47,392
	—			—			(1,109	)		(629	)		(280	)		(401	)		(235	)		(422	)
	—			—			—			—			—			—			—			—
	—			—			(63	)		—			(44	)		(14	)		—			—
	—			—			(960	)		(578	)		(69	)		(226	)		(455	)		(438	)
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(806	)		—			—			—			—			—			(5,457	)		—
	(7	)		—			—			—			—			—			—			—
	(59	)		—			—			—			—			—			(1,063	)		—
	(23	)		—			—			—			—			—			(4,311	)		—
	(895	)		—			(2,132	)		(1,207	)		(393	)		(641	)		(11,521	)		(860	)
	(2,295	)		(7,521	)		12,217			(39,557	)		(7,180	)		(6,279	)		(48,097	)		(4,481	)
	(113	)		(501	)		—			—			—			—			—			—
	(336	)		(155	)		2,954			(3,446	)		4,562			(187	)		(862	)		(1,231	)
	417			142			55,289			8,839			(475	)		(23,210	)		49,860			(5,714	)
	(2,327	)		(8,035	)		70,460			(34,164	)		(3,093	)		(29,676	)		901			(11,426	)
	(3,897	)		1,820			61,942			56,129			(390	)		(19,381	)		(22,618	)		35,106
	89,305			87,485			459,351			403,222			62,624			82,005			268,777			233,671
$	85,408		$	89,305		$	521,293		$	459,351		$	62,234		$	62,624		$	246,159		$	268,777
$	(490	)	$	(197	)	$	2,938		$	1,272		$	116		$	324		$	208		$	566

See Notes to Financial Statements

31

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

(Reported in thousands)

	Small-Cap Core Fund						Small-Cap Sustainable Growth Fund
	Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
INCREASE/(DECREASE) IN NET ASSETS
From Operations
Net investment income (loss)	$	(104	)	$	8		$	(593	)	$	(1,067	)
Net realized gain (loss)		13,627			15,127			6,163			8,405
Net change in unrealized appreciation (depreciation)		(13,240	)		36,883			(9,046	)		8,309
Increase (decrease) in net assets resulting from operations		283			52,018			(3,476	)		15,647
From Distributions to Shareholders
Net investment income, Class A		—			(199	)		—			—
Net investment income, Class B		—			—			—			—
Net investment income, Class C		—			(1	)		—			—
Net investment income, Class I		—			(337	)		—			—
Net realized short-term gains, Class A		(1,325	)		(8	)		—			—
Net realized short-term gains Class B		—			—			—			—
Net realized short-term gains, Class C		(338	)		(1	)		—			—
Net realized short-term gains, Class I		(2,107	)		(11	)		—			—
Net realized long-term gains, Class A		(3,045	)		(43	)		(4,209	)		(2,418	)
Net realized long-term gains, Class B		—			—			—			—
Net realized long-term gains, Class C		(778	)		(8	)		(661	)		(310	)
Net realized long-term gains, Class I		(4,842	)		(51	)		(829	)		(435	)
Decrease in net assets from distributions to shareholders		(12,435	)		(659	)		(5,699	)		(3,163	)
From Share Transactions (See Note 6)
Change in net assets from share transactions, Class A		(99,270	)		(1,515	)		(13,278	)		14,856
Change in net assets from share transactions, Class B		—			—			—			—
Change in net assets from share transactions, Class C		(1,089	)		1,948			(290	)		4,749
Change in net assets from share transactions, Class I		43,743			50,930			2,940			9,107
Increase (decrease) in net assets from share transactions		(56,616	)		51,363			(10,628	)		28,712
Net increase (decrease) in net assets		(68,768	)		102,722			(19,803	)		41,196
Net Assets
Beginning of period		438,140			335,417			128,885			87,689
End of period	$	369,372		$	438,139		$	109,082		$	128,885
Accumulated undistributed net investment income (loss) at end of period	$	(103	)	$	—		$	(946	)	$	(353	)

See Notes to Financial Statements

32

Strategic Growth Fund						Tactical Allocation Fund
Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014			Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
$	(525	)	$	(493	)	$	2,339		$	4,220
	19,111			33,432			4,784			14,182
	8,950			37,737			(5,063	)		8,079
	27,536			70,676			2,060			26,481
	—			(1,077	)		(2,292	)		(3,950	)
	—			—			(4	)		(8	)
	—			—			(31	)		(45	)
	—			(31	)		—			—
	—			—			(2,150	)		—
	—			—			(5	)		—
	—			—			(41	)		—
	—			—			—			—
	—			—			(3,082	)		(17,785	)
	—			—			(8	)		(62	)
	—			—			(58	)		(312	)
	—			—			—			—
	—			(1,108	)		(7,671	)		(22,162	)
	(19,604	)		(40,885	)		(1,948	)		4,631
	(460	)		(1,062	)		(127	)		(229	)
	(290	)		(699	)		232			673
	70			(1,196	)		—			—
	(20,284	)		(43,842	)		(1,843	)		5,075
	7,252			25,726			(7,454	)		9,394
	413,674			387,948			199,879			190,485
												��
$	420,926		$	413,674		$	192,425		$	199,879
$	(698	)	$	(174	)	$	68		$	57

See Notes to Financial Statements

33

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)		Total from Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Growth & Income
Fund
Class A
4/1/14 to 9/30/14(15)		$	21.94		0.05			0.81		0.86		(0.08	)		(1.89	)		(1.97	)		(1.11	)		$	20.83		3.86	%(4)		$	113,412		1.25	%(3)		1.36	%(3)		0.47	%(3)		90	%(4)
4/1/13 to 3/31/14			19.51		0.14			4.02		4.16		(0.10	)		(1.63	)		(1.73	)		2.43				21.94		21.84				111,074		1.25			1.39			0.66			283
4/1/12 to 3/31/13			17.93		0.09			1.53		1.62		(0.04	)		—			(0.04	)		1.58				19.51		9.12				100,976		1.25			1.44			0.52			65
4/1/11 to 3/31/12			17.22		0.07			0.70		0.77		(0.06	)		—			(0.06	)		0.71				17.93		4.48				79,934		1.25			1.48			0.40			51
4/1/10 to 3/31/11			14.87		0.09			2.37		2.46		(0.11	)		—			(0.11	)		2.35				17.22		16.69				88,027		1.25			1.53			0.63			44
4/1/09 to 3/31/10			10.15		0.12			4.78		4.90		(0.18	)		—			(0.18	)		4.72				14.87		48.67				96,335		1.13	(9)		1.34			0.93			34
Class C
4/1/14 to 9/30/14(15)		$	20.60		(0.03	)		0.77		0.74		(0.01	)		(1.89	)		(1.90	)		(1.16	)		$	19.44		3.48	%(4)		$	28,167		2.00	%(3)		2.11	%(3)		(0.28	)%(3)		90	%(4)
4/1/13 to 3/31/14			18.46		(0.02	)		3.81		3.79		(0.02	)		(1.63	)		(1.65	)		2.14				20.60		20.93				27,930		2.00			2.14			(0.09	)		283
4/1/12 to 3/31/13			17.05		(0.04	)		1.45		1.41		—			—			—			1.41				18.46		8.27				24,782		2.00			2.19			(0.23	)		65
4/1/11 to 3/31/12			16.44		(0.05	)		0.66		0.61		—			—			—			0.61				17.05		3.71				25,978		2.00			2.23			(0.35	)		51
4/1/10 to 3/31/11			14.23		(0.02	)		2.26		2.24		(0.03	)		—			(0.03	)		2.21				16.44		15.84				28,944		2.00			2.28			(0.12	)		44
4/1/09 to 3/31/10			9.72		0.02			4.58		4.60		(0.09	)		—			(0.09	)		4.51				14.23		47.60				29,762		1.89	(9)		2.11			0.16			34
Class I
4/1/14 to 9/30/14(15)		$	21.90		0.07			0.83		0.90		(0.11	)		(1.89	)		(2.00	)		(1.10	)		$	20.80		4.04	%(4)		$	8,641		1.00	%(3)		1.11	%(3)		0.70	%(3)		90	%(4)
4/1/13 to 3/31/14			19.48		0.19			4.01		4.20		(0.15	)		(1.63	)		(1.78	)		2.42				21.90		22.12				11,291		1.00			1.14			0.90			283
4/1/12 to 3/31/13			17.91		0.14			1.51		1.65		(0.08	)		—			(0.08	)		1.57				19.48		9.28				11,589		1.00			1.17			0.78			65
4/1/11 to 3/31/12			17.21		0.11			0.69		0.80		(0.10	)		—			(0.10	)		0.70				17.91		4.75				6,167		1.00			1.23			0.66			51
4/1/10 to 3/31/11			14.85		0.13			2.37		2.50		(0.14	)		—			(0.14	)		2.36				17.21		17.09				5,719		1.00			1.28			0.90			44
4/1/09 to 3/31/10			10.14		0.15			4.77		4.92		(0.21	)		—			(0.21	)		4.71				14.85		49.00				9,270		0.91	(9)		1.13			1.16			34
Mid-Cap Core Fund
Class A
4/1/14 to 9/30/14(15)		$	19.80		(0.05	)		1.08		1.03		—			(0.29	)		(0.29	)		0.74			$	20.54		5.26	%(4)		$	3,737		1.35	%(3)		3.21	%(3)		(0.54	)%(3)		15	%(4)
4/1/13 to 3/31/14			17.49		(0.06	)		2.68		2.62		—			(0.31	)		(0.31	)		2.31				19.80		15.17				3,027		1.35			3.08			(0.31	)		30
4/1/12 to 3/31/13			15.80		0.19			1.86		2.05		(0.25	)		(0.11	)		(0.36	)		1.69				17.49		13.21				1,691		1.35			3.92			1.20			62
4/1/11 to 3/31/12			14.71		0.01			1.11		1.12		—			(0.03	)		(0.03	)		1.09				15.80		7.65				945		1.35			4.61			0.07			27
4/1/10 to 3/31/11			12.57		—	(5)		2.37		2.37		(0.04	)		(0.19	)		(0.23	)		2.14				14.71		19.12				669		1.35			10.37			(0.01	)		13
6/22/09(7) to 3/31/10			10.00		0.05			2.62		2.67		—			(0.10	)		(0.10	)		2.57				12.57		26.79	(4)			345		1.35	(3)		20.83	(3)		0.53	(3)		16	(4)
Class C
4/1/14 to 9/30/14(15)		$	19.23		(0.13	)		1.05		0.92		—			(0.29	)		(0.29	)		0.63			$	19.86		4.89	%(4)		$	171		2.10	%(3)		3.93	%(3)		(1.30	)%(3)		15	%(4)
4/1/13 to 3/31/14			17.12		(0.18	)		2.60		2.42		—			(0.31	)		(0.31	)		2.11				19.23		14.32				209		2.10			3.84			(1.01	)		30
4/1/12 to 3/31/13			15.50		0.06			1.83		1.89		(0.16	)		(0.11	)		(0.27	)		1.62				17.12		12.42				226		2.10			4.70			0.36			62
4/1/11 to 3/31/12			14.54		(0.09	)		1.08		0.99		—			(0.03	)		(0.03	)		0.96				15.50		6.78				211		2.10			5.41			(0.65	)		27
4/1/10 to 3/31/11			12.49		(0.10	)		2.34		2.24		—			(0.19	)		(0.19	)		2.05				14.54		18.18				189		2.10			11.15			(0.76	)		13
6/22/09(7) to 3/31/10			10.00		(0.02	)		2.61		2.59		—			(0.10	)		(0.10	)		2.49				12.49		25.99	(4)			126		2.10	(3)		23.95	(3)		(0.25	)(3)		16	(4)
Class I
4/1/14 to 9/30/14(15)		$	19.89		(0.03	)		1.09		1.06		—			(0.29	)		(0.29	)		0.77			$	20.66		5.38	%(4)		$	1,152		1.10	%(3)		2.94	%(3)		(0.30	)%(3)		15	%(4)
4/1/13 to 3/31/14			17.52		(0.01	)		2.69		2.68		—			(0.31	)		(0.31	)		2.37				19.89		15.48				1,178		1.10			2.85			(0.08	)		30
4/1/12 to 3/31/13			15.84		0.25			1.84		2.09		(0.30	)		(0.11	)		(0.41	)		1.68				17.52		13.50				1,316		1.10			3.65			1.56			62
4/1/11 to 3/31/12			14.72		0.05			1.10		1.15		—			(0.03	)		(0.03	)		1.12				15.84		7.85				1,271		1.10			4.41			0.37			27
4/1/10 to 3/31/11			12.59		0.04			2.35		2.39		(0.07	)		(0.19	)		(0.26	)		2.13				14.72		19.33				588		1.10			9.89			0.28			13
6/22/09(7) to 3/31/10			10.00		0.07			2.62		2.69		—			(0.10	)		(0.10	)		2.59				12.59		26.99	(4)			160		1.10	(3)		22.33	(3)		0.77	(3)		16	(4)

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

34

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Mid-Cap Growth
Fund
Class A
4/1/14 to 9/30/14(15)		$	21.30		(0.07	)		(0.07	)		(0.14	)		—			(0.22	)		(0.22	)		(0.36	)		$	20.94		(0.67	)%(4)		$	77,332		1.45	%(3)		1.47	%(3)		(0.64	)%(3)		14	%(4)
4/1/13 to 3/31/14			19.02		(0.15	)		2.43			2.28			—			—			—			2.28				21.30		11.99				81,016		1.45			1.44			(0.74	)		32
4/1/12 to 3/31/13			17.44		(0.08	)		1.66			1.58			—			—			—			1.58				19.02		9.06				79,561		1.45			1.51			(0.49	)		35
4/1/11 to 3/31/12			17.67		(0.10	)		(0.13	)		(0.23	)		—			—			—			(0.23	)			17.44		(1.30	)			78,925		1.49	(10)		1.56			(0.64	)		163
4/1/10 to 3/31/11			14.03		(0.13	)		3.77			3.64			—			—			—			3.64				17.67		25.94				88,784		1.45			1.57			(0.85	)		81
4/1/09 to 3/31/10			8.83		(0.06	)		5.26			5.20			—			—			—			5.20				14.03		58.89				79,547		1.45			1.59			(0.51	)		104
Class B
4/1/14 to 9/30/14(15)		$	18.01		(0.12	)		(0.07	)		(0.19	)		—			(0.22	)		(0.22	)		(0.41	)		$	17.60		(1.08	)%(4)		$	602		2.20	%(3)		2.22	%(3)		(1.40	)%(3)		14	%(4)
4/1/13 to 3/31/14			16.20		(0.25	)		2.06			1.81			—			—			—			1.81				18.01		11.17				732		2.20			2.20			(1.49	)		32
4/1/12 to 3/31/13			14.97		(0.18	)		1.41			1.23			—			—			—			1.23				16.20		8.22				1,142		2.20			2.26			(1.26	)		35
4/1/11 to 3/31/12			15.28		(0.19	)		(0.12	)		(0.31	)		—			—			—			(0.31	)			14.97		(2.03	)			1,495		2.24	(10)		2.31			(1.40	)		163
4/1/10 to 3/31/11			12.22		(0.19	)		3.25			3.06			—			—			—			3.06				15.28		25.04				2,185		2.20			2.32			(1.48	)		81
4/1/09 to 3/31/10			7.75		(0.13	)		4.60			4.47			—			—			—			4.47				12.22		57.68				3,291		2.20			2.34			(1.24	)		104
Class C
4/1/14 to 9/30/14(15)		$	18.01		(0.12	)		(0.06	)		(0.18	)		—			(0.22	)		(0.22	)		(0.40	)		$	17.61		(1.02	)%(4)		$	4,771		2.20	%(3)		2.22	%(3)		(1.40	)%(3)		14	%(4)
4/1/13 to 3/31/14			16.21		(0.26	)		2.06			1.80			—			—			—			1.80				18.01		11.10				5,233		2.20			2.19			(1.49	)		32
4/1/12 to 3/31/13			14.97		(0.18	)		1.42			1.24			—			—			—			1.24				16.21		8.28				4,850		2.20			2.26			(1.24	)		35
4/1/11 to 3/31/12			15.28		(0.19	)		(0.12	)		(0.31	)		—			—			—			(0.31	)			14.97		(2.03	)			4,849		2.24	(10)		2.31			(1.40	)		163
4/1/10 to 3/31/11			12.22		(0.21	)		3.27			3.06			—			—			—			3.06				15.28		25.04				5,389		2.20			2.32			(1.63	)		81
4/1/09 to 3/31/10			7.75		(0.14	)		4.61			4.47			—			—			—			4.47				12.22		57.68				4,775		2.20			2.34			(1.29	)		104
Class I
4/1/14 to 9/30/14(15)		$	21.66		(0.04	)		(0.08	)		(0.12	)		—			(0.22	)		(0.22	)		(0.34	)		$	21.32		(0.57	)%(4)		$	2,703		1.20	%(3)		1.22	%(3)		(0.39	)%(3)		14	%(4)
4/1/13 to 3/31/14			19.30		(0.10	)		2.46			2.36			—			—			—			2.36				21.66		12.23				2,324		1.20			1.19			(0.49	)		32
4/1/12 to 3/31/13			17.65		(0.04	)		1.69			1.65			—			—			—			1.65				19.30		9.35				1,932		1.20			1.26			(0.24	)		35
4/1/11 to 3/31/12			17.83		(0.06	)		(0.12	)		(0.18	)		—			—			—			(0.18	)			17.65		(1.01	)			1,831		1.24	(10)		1.31			(0.37	)		163
4/1/10 to 3/31/11			14.12		(0.09	)		3.80			3.71			—			—			—			3.71				17.83		26.27				1,519		1.20			1.32			(0.61	)		81
4/1/09 to 3/31/10			8.87		(0.03	)		5.28			5.25			—			—			—			5.25				14.12		59.19				1,332		1.20			1.34			(0.28	)		104
Mid-Cap Value
Fund
Class A
4/1/14 to 9/30/14(15)		$	37.12		0.29			(0.56	)		(0.27	)		(0.16	)		—			(0.16	)		(0.43	)		$	36.69		(0.75	)%(4)		$	260,099		1.37	%(3)		1.37	%(3)		1.50	%(3)		12	%(4)
4/1/13 to 3/31/14			29.97		0.16			7.07			7.23			(0.08	)		—			(0.08	)		7.15				37.12		24.20				251,498		1.39	(16)		1.39			0.51			15
4/1/12 to 3/31/13			26.21		0.10			3.72			3.82			(0.06	)		—			(0.06	)		3.76				29.97		14.64				240,250		1.41	(16)		1.41			0.38			19
4/1/11 to 3/31/12			24.69		0.06			1.49			1.55			(0.03	)		—			(0.03	)		1.52				26.21		6.27				260,849		1.46	(6)		1.45			0.27			22
4/1/10 to 3/31/11			20.47		0.06			4.29			4.35			(0.13	)		—			(0.13	)		4.22				24.69		21.42				280,485		1.48			1.49			0.29			11
4/1/09 to 3/31/10			12.44		0.12			8.04			8.16			(0.13	)		—			(0.13	)		8.03				20.47		66.04				309,899		1.47			1.47			0.71			15

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

35

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains		Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Mid-Cap Value
Fund (Continued)
Class C
4/1/14 to 9/30/14(15)		$	35.55		0.14			(0.54	)		(0.40	)		(0.03	)		—		(0.03	)		(0.43	)		$	35.12		(1.09	)%(4)		$	64,813		2.12	%(3)		2.12	%(3)		0.78	%(3)		12	%(4)
4/1/13 to 3/31/14			28.84		(0.07	)		6.78			6.71			—			—		—			6.71				35.55		23.23				62,738		2.14	(16)		2.14			(0.24	)		15
4/1/12 to 3/31/13			25.34		(0.09	)		3.59			3.50			—			—		—			3.50				28.84		13.81				54,236		2.16	(16)		2.16			(0.37	)		19
4/1/11 to 3/31/12			24.02		(0.11	)		1.43			1.32			—			—		—			1.32				25.34		5.50				56,287		2.21	(6)		2.20			(0.49	)		22
4/1/10 to 3/31/11			19.93		(0.09	)		4.18			4.09			—			—		—			4.09				24.02		20.52				62,174		2.23			2.24			(0.46	)		11
4/1/09 to 3/31/10			12.17		(0.01	)		7.85			7.84			(0.08	)		—		(0.08	)		7.76				19.93		64.71				67,799		2.22			2.22			(0.03	)		15
Class I
4/1/14 to 9/30/14(15)		$	37.11		0.32			(0.53	)		(0.21	)		(0.20	)		—		(0.20	)		(0.41	)		$	36.70		(0.61	)%(4)		$	196,381		1.12	%(3)		1.12	%(3)		1.68	%(3)		12	%(4)
4/1/13 to 3/31/14			29.97		0.25			7.05			7.30			(0.16	)		—		(0.16	)		7.14				37.11		24.52				145,115		1.14	(16)		1.14			0.77			15
4/1/12 to 3/31/13			26.25		0.17			3.71			3.88			(0.16	)		—		(0.16	)		3.72				29.97		14.89				108,736		1.16	(16)		1.16			0.63			19
4/1/11 to 3/31/12			24.72		0.12			1.50			1.62			(0.09	)		—		(0.09	)		1.53				26.25		6.56				68,764		1.21	(6)		1.20			0.50			22
4/1/10 to 3/31/11			20.49		0.11			4.30			4.41			(0.18	)		—		(0.18	)		4.23				24.72		21.74				54,919		1.23			1.24			0.53			11
4/1/09 to 3/31/10			12.44		0.15			8.05			8.20			(0.15	)		—		(0.15	)		8.05				20.49		66.39				36,070		1.23			1.23			0.87			15
Quality Large-Cap
Value Fund
Class A
4/1/14 to 9/30/14(15)		$	13.93		0.05			0.66			0.71			(0.09	)		—		(0.09	)		0.62			$	14.55		5.09	%(4)		$	44,067		1.35	%(3)		1.45	%(3)		0.63	%(3)		18	%(4)
4/1/13 to 3/31/14			11.96		0.10			1.98			2.08			(0.11	)		—		(0.11	)		1.97				13.93		17.50				49,275		1.35			1.43			0.81			23
4/1/12 to 3/31/13			10.76		0.13			1.18			1.31			(0.11	)		—		(0.11	)		1.20				11.96		12.36				48,193		1.35			1.47			1.19			32
4/1/11 to 3/31/12			10.36		0.12			0.37			0.49			(0.09	)		—		(0.09	)		0.40				10.76		4.84				40,936		1.35			1.53			1.19			17
4/1/10 to 3/31/11			9.18		0.09			1.21			1.30			(0.12	)		—		(0.12	)		1.18				10.36		14.40				44,331		1.35			1.58			0.96			29
4/1/09 to 3/31/10			6.32		0.10			2.87			2.97			(0.11	)		—		(0.11	)		2.86				9.18		47.40				43,612		1.35			1.52			1.22			165
Class C
4/1/14 to 9/30/14(15)		$	13.67		—			0.64			0.64			(0.07	)		—		(0.07	)		0.57			$	14.24		4.75	%(4)		$	8,697		2.10	%(3)		2.20	%(3)		(0.01	)%(3)		18	%(4)
4/1/13 to 3/31/14			11.77		0.01			1.94			1.95			(0.05	)		—		(0.05	)		1.90				13.67		16.56				3,803		2.10			2.18			0.05			23
4/1/12 to 3/31/13			10.60		0.04			1.18			1.22			(0.05	)		—		(0.05	)		1.17				11.77		11.57				3,452		2.10			2.23			0.42			32
4/1/11 to 3/31/12			10.21		0.04			0.37			0.41			(0.02	)		—		(0.02	)		0.39				10.60		4.06				3,186		2.10			2.28			0.43			17
4/1/10 to 3/31/11			9.05		0.02			1.20			1.22			(0.06	)		—		(0.06	)		1.16				10.21		13.56				3,819		2.10			2.33			0.20			29
4/1/09 to 3/31/10			6.24		0.04			2.82			2.86			(0.05	)		—		(0.05	)		2.81				9.05		46.15				3,925		2.10			2.28			0.48			165
Class I
4/1/14 to 9/30/14(15)		$	13.93		0.06			0.68			0.74			(0.11	)		—		(0.11	)		0.63			$	14.56		5.30	%(4)		$	9,470		1.10	%(3)		1.20	%(3)		0.89	%(3)		18	%(4)
4/1/13 to 3/31/14			11.97		0.13			1.97			2.10			(0.14	)		—		(0.14	)		1.96				13.93		17.70				9,546		1.10			1.18			0.99			23
4/1/12 to 3/31/13			10.76		0.20			1.15			1.35			(0.14	)		—		(0.14	)		1.21				11.97		12.73				30,360		1.10			1.12			1.73			32
4/1/11 to 3/31/12			10.36		0.15			0.37			0.52			(0.12	)		—		(0.12	)		0.40				10.76		5.11				1,398		1.10			1.28			1.46			17
4/1/10 to 3/31/11			9.18		0.12			1.20			1.32			(0.14	)		—		(0.14	)		1.18				10.36		14.67				522		1.10			1.33			1.27			29
4/1/09 to 3/31/10			6.32		0.14			2.85			2.99			(0.13	)		—		(0.13	)		2.86				9.18		47.74				343		1.10			1.29			1.67			165
6/6/08(7) to 3/31/09			11.04		0.11			(4.76	)		(4.65	)		(0.07	)		—		(0.07	)		(4.72	)			6.32		(42.22	)(4)			58		1.10	(3)		1.25	(3)		1.68	(3)		140	(4)

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

36

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Quality Small-Cap
Fund
Class A
4/1/14 to 9/30/14(15)		$	16.74		0.02			(0.76	)		(0.74	)		(0.03	)		(0.67	)		(0.70	)		(1.44	)		$	15.30		(4.62	)%(4)		$	78,148		1.30	%(3)		1.30	%(3)		0.20	%(3)		10	%(4)
4/1/13 to 3/31/14			13.91		0.04			2.84			2.88			(0.05	)		—			(0.05	)		2.83				16.74		20.78				137,496		1.32	(6)		1.32			0.24			24
4/1/12 to 3/31/13			13.22		0.16			0.78			0.94			(0.25	)		—			(0.25	)		0.69				13.91		7.37				118,376		1.42	(6)		1.34			1.29			16	(13)
4/1/11 to 3/31/12			12.38		0.18			0.77			0.95			(0.11	)		—			(0.11	)		0.84				13.22		7.73				120,962		1.42	(6)		1.34			1.45			19
4/1/10 to 3/31/11			9.98		0.16			2.38			2.54			(0.14	)		—			(0.14	)		2.40				12.38		25.72				105,975		1.48	(8)(10)		1.50			1.50			28
4/1/09 to 3/31/10			6.29		0.12			3.68			3.80			(0.11	)		—			(0.11	)		3.69				9.98		60.78				37,605		1.55			1.74			1.37			14
Class C
4/1/14 to 9/30/14(15)		$	16.65		(0.04	)		(0.76	)		(0.80	)		—			(0.67	)		(0.67	)		(1.47	)		$	15.18		(4.99	)%(4)		$	23,918		2.05	%(3)		2.05	%(3)		(0.53	)%(3)		10	%(4)
4/1/13 to 3/31/14			13.89		(0.08	)		2.84			2.76			—			—			—			2.76				16.65		19.87				27,132		2.07	(6)		2.07			(0.52	)		24
4/1/12 to 3/31/13			13.20		0.07			0.77			0.84			(0.15	)		—			(0.15	)		0.69				13.89		6.57				23,793		2.17	(6)		2.09			0.56			16	(13)
4/1/11 to 3/31/12			12.36		0.08			0.78			0.86			(0.02	)		—			(0.02	)		0.84				13.20		6.96				22,765		2.17	(6)		2.09			0.66			19
4/1/10 to 3/31/11			9.97		0.09			2.37			2.46			(0.07	)		—			(0.07	)		2.39				12.36		24.75				22,174		2.21	(8)(10)		2.22			0.83			28
4/1/09 to 3/31/10			6.28		0.05			3.69			3.74			(0.05	)		—			(0.05	)		3.69				9.97		59.74				3,407		2.30			2.48			0.64			14
Class I
4/1/14 to 9/30/14(15)		$	16.77		0.04			(0.76	)		(0.72	)		(0.07	)		(0.67	)		(0.74	)		(1.46	)		$	15.31		(4.49	)%(4)		$	144,093		1.05	%(3)		1.05	%(3)		0.48	%(3)		10	%(4)
4/1/13 to 3/31/14			13.92		0.08			2.84			2.92			(0.07	)		—			(0.07	)		2.85				16.77		21.06				104,149		1.07	(6)		1.07			0.49			24
4/1/12 to 3/31/13			13.23		0.15			0.82			0.97			(0.28	)		—			(0.28	)		0.69				13.92		7.64				91,502		1.17	(6)		1.10			1.19			16	(13)
4/1/11 to 3/31/12			12.38		0.22			0.77			0.99			(0.14	)		—			(0.14	)		0.85				13.23		8.08				200,302		1.17	(6)		1.09			1.77			19
4/1/10 to 3/31/11			9.99		0.18			2.38			2.56			(0.17	)		—			(0.17	)		2.39				12.38		25.89				143,333		1.23	(8)(10)		1.26			1.73			28
4/1/09 to 3/31/10			6.29		0.14			3.69			3.83			(0.13	)		—			(0.13	)		3.70				9.99		61.32				56,820		1.30			1.48			1.61			14
Small-Cap Core Fund
Class A
4/1/14 to 9/30/14(15)		$	24.19		(0.02	)		0.01			(0.01	)		—			(0.76	)		(0.76	)		(0.77	)		$	23.42		(0.13	)%(4)		$	60,142		1.35	%(3)		1.35	%(3)		(0.14	)%(3)		9	%(4)
4/1/13 to 3/31/14			21.41		(0.02	)		2.84			2.82			(0.03	)		(0.01	)		(0.04	)		2.78				24.19		13.17				162,302		1.39			1.39			(0.09	)		31
4/1/12 to 3/31/13			20.07		0.10			1.75			1.85			(0.18	)		(0.33	)		(0.51	)		1.34				21.41		9.64				143,293		1.37			1.37			0.52			15	(13)
4/1/11 to 3/31/12			18.82		0.20			1.66			1.86			(0.02	)		(0.59	)		(0.61	)		1.25				20.07		10.17				77,327		1.34			1.34			1.08			10
4/1/10 to 3/31/11			14.81		0.01			4.00			4.01			—			—			—			4.01				18.82		27.08				35,679		1.47	(10)		1.47			0.04			22
4/1/09 to 3/31/10			9.36		(0.04	)		5.49			5.45			—			—			—			5.45				14.81		58.23				15,167		1.62			1.62			(0.32	)		23
Class C
4/1/14 to 9/30/14(15)		$	21.99		(0.10	)		0.01			(0.09	)		—			(0.76	)		(0.76	)		(0.85	)		$	21.14		(0.51	)%(4)		$	31,084		2.10	%(3)		2.10	%(3)		(0.90	)%(3)		9	%(4)
4/1/13 to 3/31/14			19.58		(0.18	)		2.60			2.42			—	(5)		(0.01	)		(0.01	)		2.41				21.99		12.35				33,437		2.14			2.14			(0.84	)		31
4/1/12 to 3/31/13			18.38		(0.04	)		1.61			1.57			(0.04	)		(0.33	)		(0.37	)		1.20				19.58		8.84				27,641		2.12			2.12			(0.23	)		15	(13)
4/1/11 to 3/31/12			17.40		0.03			1.54			1.57			—			(0.59	)		(0.59	)		0.98				18.38		9.33				15,517		2.09			2.09			0.15			10
4/1/10 to 3/31/11			13.79		(0.11	)		3.72			3.61			—			—			—			3.61				17.40		26.18				10,067		2.24	(10)		2.24			(0.74	)		22
4/1/09 to 3/31/10			8.78		(0.13	)		5.14			5.01			—			—			—			5.01				13.79		57.06				5,989		2.37			2.37			(1.06	)		23
Class I
4/1/14 to 9/30/14(15)		$	24.95		0.01			0.02			0.03			—			(0.76	)		(0.76	)		(0.73	)		$	24.22		0.04	%(4)		$	278,146		1.10	%(3)		1.10	%(3)		0.11	%(3)		9	%(4)
4/1/13 to 3/31/14			22.04		0.04			2.92			2.96			(0.04	)		(0.01	)		(0.05	)		2.91				24.95		13.44				242,400		1.14			1.14			0.19			31
4/1/12 to 3/31/13			20.65		0.13			1.83			1.96			(0.24	)		(0.33	)		(0.57	)		1.39				22.04		9.92				164,483		1.12			1.12			0.63			15	(13)
4/1/11 to 3/31/12			19.33		0.21			1.75			1.96			(0.05	)		(0.59	)		(0.64	)		1.32				20.65		10.45				142,101		1.09			1.09			1.11			10
4/1/10 to 3/31/11			15.17		0.06			4.10			4.16			—			—			—			4.16				19.33		27.42				108,117		1.22	(10)		1.22			0.37			22
4/1/09 to 3/31/10			9.56		(0.01	)		5.62			5.61			—			—			—			5.61				15.17		58.68				31,810		1.37			1.37			(0.06	)		23

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

37

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Small-Cap Sustainable
Growth Fund
Class A
4/1/14 to 9/30/14(15)		$	16.97		(0.08	)		(0.37	)		(0.45	)		—			(0.80	)		(0.80	)		(1.25	)		$	15.72		(2.78	)%(4)		$	75,076		1.50	%(3)		1.59	%(3)		(0.97	)%(3)		16	%(4)
4/1/13 to 3/31/14			14.92		(0.15	)		2.68			2.53			—			(0.48	)		(0.48	)		2.05				16.97		17.15				94,902		1.50			1.56			(0.93	)		23
4/1/12 to 3/31/13			12.95		(0.03	)		2.00			1.97			—			—			—			1.97				14.92		15.21				70,107		1.61	(8)		1.67			(0.24	)		24
4/1/11 to 3/31/12			11.03		(0.10	)		2.06			1.96			(0.04	)		—			(0.04	)		1.92				12.95		17.83	(12)			77,384		1.65	(6)		1.65			(0.84	)		46
4/1/10 to 3/31/11			9.51		(0.02	)		1.54			1.52			—			—			—			1.52				11.03		15.98				55,662		1.67	(10)		1.91			(0.17	)		17
4/1/09 to 3/31/10			6.20		(0.06	)		3.37			3.31			—			—			—			3.31				9.51		53.39				1,180		1.65			2.27			(0.77	)		26
Class C
4/1/14 to 9/30/14(15)		$	16.03		(0.13	)		(0.35	)		(0.48	)		—			(0.80	)		(0.80	)		(1.28	)		$	14.75		(3.21	)%(4)		$	11,947		2.25	%(3)		2.34	%(3)		(1.71	)%(3)		16	%(4)
4/1/13 to 3/31/14			14.22		(0.26	)		2.55			2.29			—			(0.48	)		(0.48	)		1.81				16.03		16.29				13,298		2.25			2.31			(1.68	)		23
4/1/12 to 3/31/13			12.44		(0.12	)		1.90			1.78			—			—			—			1.78				14.22		14.31				7,555		2.36	(8)		2.42			(0.96	)		24
4/1/11 to 3/31/12			10.64		(0.18	)		1.98			1.80			—			—			—			1.80				12.44		16.92	(12)			7,490		2.40	(6)		2.40			(1.58	)		46
4/1/10 to 3/31/11			9.24		(0.09	)		1.49			1.40			—			—			—			1.40				10.64		15.15				5,981		2.42	(10)		2.67			(0.93	)		17
4/1/09 to 3/31/10			6.06		(0.11	)		3.29			3.18			—			—			—			3.18				9.24		52.48				359		2.40			3.18			(1.34	)		26
Class I
4/1/14 to 9/30/14(15)		$	17.08		(0.06	)		(0.37	)		(0.43	)		—			(0.80	)		(0.80	)		(1.23	)		$	15.85		(2.71	)%(4)		$	22,059		1.25	%(3)		1.34	%(3)		(0.71	)%(3)		16	%(4)
4/1/13 to 3/31/14			14.98		(0.11	)		2.69			2.58			—			(0.48	)		(0.48	)		2.10				17.08		17.42				20,685		1.25			1.30			(0.68	)		23
4/1/12 to 3/31/13			12.96		(0.01	)		2.03			2.02			—			—			—			2.02				14.98		15.59				10,026		1.36	(8)		1.42			(0.04	)		24
4/1/11 to 3/31/12			11.04		(0.06	)		2.05			1.99			(0.07	)		—			(0.07	)		1.92				12.96		18.03	(12)			9,698		1.40	(6)		1.40			(0.55	)		46
4/1/10 to 3/31/11			9.52		(0.01	)		1.56			1.55			(0.03	)		—			(0.03	)		1.52				11.04		16.26				3,195		1.42	(10)		1.88			(0.05	)		17
4/1/09 to 3/31/10			6.18		(0.04	)		3.38			3.34			—			—			—			3.34				9.52		54.05				4,098		1.40			2.10			(0.49	)		26
Strategic Growth Fund
Class A
4/1/14 to 9/30/14(15)		$	12.41		(0.02	)		0.87			0.85			—			—			—			0.85			$	13.26		6.85	%(4)		$	406,141		1.29	%(3)(14)		1.29	%(3)		(0.24	)%(3)		15	%(4)
4/1/13 to 3/31/14			10.45		(0.01	)		2.00			1.99			(0.03	)		—			(0.03	)		1.96				12.41		19.11				399,131		1.28	(16)		1.28			(0.11	)		26
4/1/12 to 3/31/13			10.05		0.03			0.37			0.40			—			—			—			0.40				10.45		3.98				373,069		1.34	(16)		1.34			0.31			20
4/1/11 to 3/31/12			9.79		(0.02	)		0.28			0.26			—			—			—			0.26				10.05		2.66				409,555		1.35	(16)		1.35			(0.25	)		115
4/1/10 to 3/31/11			8.48		(0.03	)		1.71			1.68			—			(0.37	)		(0.37	)		1.31				9.79		20.90				447,994		1.44	(8)		1.44			(0.34	)		82
4/1/09 to 3/31/10			5.78		(0.02	)		2.72			2.70			—			—			—			2.70				8.48		46.71				420,181		1.46			1.46			(0.31	)		52
Class B
4/1/14 to 9/30/14(15)		$	10.56		(0.05	)		0.73			0.68			—			—			—			0.68			$	11.24		6.44	%(4)		$	2,374		2.04	%(3)(14)		2.04	%(3)		(0.99	)%(3)		15	%(4)
4/1/13 to 3/31/14			8.93		(0.08	)		1.71			1.63			—			—			—			1.63				10.56		18.25				2,682		2.03	(16)		2.03			(0.86	)		26
4/1/12 to 3/31/13			8.66		(0.04	)		0.31			0.27			—			—			—			0.27				8.93		3.12				3,236		2.09	(16)		2.09			(0.46	)		20
4/1/11 to 3/31/12			8.49		(0.08	)		0.25			0.17			—			—			—			0.17				8.66		2.00				4,617		2.10	(16)		2.10			(1.01	)		115
4/1/10 to 3/31/11			7.46		(0.08	)		1.48			1.40			—			(0.37	)		(0.37	)		1.03				8.49		19.97				6,449		2.20	(8)		2.20			(1.09	)		82
4/1/09 to 3/31/10			5.12		(0.07	)		2.41			2.34			—			—			—			2.34				7.46		45.70				8,067		2.21			2.21			(1.07	)		52
Class C
4/1/14 to 9/30/14(15)		$	10.57		(0.05	)		0.72			0.67			—			—			—			0.67			$	11.24		6.34	%(4)		$	6,431		2.04	%(3)(14)		2.04	%(3)		(0.99	)%(3)		15	%(4)
4/1/13 to 3/31/14			8.94		(0.08	)		1.71			1.63			—			—			—			1.63				10.57		18.23				6,329		2.03	(16)		2.03			(0.86	)		26
4/1/12 to 3/31/13			8.66		(0.04	)		0.32			0.28			—			—			—			0.28				8.94		3.23				5,993		2.09	(16)		2.09			(0.44	)		20
4/1/11 to 3/31/12			8.50		(0.08	)		0.24			0.16			—			—			—			0.16				8.66		1.88				6,707		2.10	(16)		2.10			(1.00	)		115
4/1/10 to 3/31/11			7.46		(0.08	)		1.49			1.41			—			(0.37	)		(0.37	)		1.04				8.50		20.11				7,507		2.20	(8)		2.20			(1.09	)		82
4/1/09 to 3/31/10			5.12		(0.07	)		2.41			2.34			—			—			—			2.34				7.46		45.70				7,351		2.21			2.21			(1.08	)		52

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

38

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(2)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(1)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(11)			Ratio of Gross Expenses to Average     Net Assets (before waivers and reimbursements)(11)			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Strategic Growth Fund
(Continued)
Class I
4/1/14 to 9/30/14(15)		$	12.64		—			0.87			0.87		—			—			—			0.87			$	13.51		6.88	%(4)		$	5,980		1.04	%(3)(14)		1.04	%(3)		0.01	%(3)		15	%(4)
4/1/13 to 3/31/14			10.64		0.02			2.04			2.06		(0.06	)		—			(0.06	)		2.00				12.64		19.45				5,532		1.03	(16)		1.03			0.14			26
4/1/12 to 3/31/13			10.21		0.06			0.37			0.43		—			—			—			0.43				10.64		4.21				5,650		1.09	(16)		1.09			0.57			20
4/1/11 to 3/31/12			9.92		—			0.29			0.29		—			—			—			0.29				10.21		2.92				4,733		1.10	(16)		1.10			0.00			115
4/1/10 to 3/31/11			8.56		(0.01	)		1.74			1.73		—			(0.37	)		(0.37	)		1.36				9.92		21.29				4,350		1.20	(8)		1.19			(0.09	)		82
4/1/09 to 3/31/10			5.82		(0.01	)		2.75			2.74		—			—			—			2.74				8.56		47.08				3,802		1.22			1.22			(0.07	)		52
Tactical Allocation
Fund
Class A
4/1/14 to 9/30/14(15)		$	10.06		0.12			(0.01	)		0.11		(0.12	)		(0.28	)		(0.40	)		(0.29	)		$	9.77		0.95	%(4)		$	188,076		1.31	%(3)		1.31	%(3)		2.36	%(3)		25	%(4)
4/1/13 to 3/31/14			9.88		0.22			1.13			1.35		(0.21	)		(0.96	)		(1.17	)		0.18				10.06		14.84				195,509		1.29			1.29			2.22			61
4/1/12 to 3/31/13			9.47		0.21			0.53			0.74		(0.22	)		(0.11	)		(0.33	)		0.41				9.88		8.00				186,662		1.30			1.30			2.26			94
4/1/11 to 3/31/12			9.08		0.14			0.38			0.52		(0.13	)		—			(0.13	)		0.39				9.47		5.88				189,926		1.30			1.30			1.59			128
4/1/10 to 3/31/11			8.18		0.13			0.90			1.03		(0.13	)		—			(0.13	)		0.90				9.08		12.78				196,705		1.36			1.36			1.59			126
4/1/09 to 3/31/10			6.33		0.16			1.87			2.03		(0.18	)		—			(0.18	)		1.85				8.18		32.29				195,988		1.33			1.33			2.09			139
Class B
4/1/14 to 9/30/14(15)		$	10.18		0.08			—			0.08		(0.08	)		(0.28	)		(0.36	)		(0.28	)		$	9.90		0.63	%(4)		$	446		2.06	%(3)		2.06	%(3)		1.63	%(3)		25	%(4)
4/1/13 to 3/31/14			9.98		0.15			1.14			1.29		(0.13	)		(0.96	)		(1.09	)		0.20				10.18		13.87				585		2.04			2.04			1.48			61
4/1/12 to 3/31/13			9.56		0.14			0.54			0.68		(0.15	)		(0.11	)		(0.26	)		0.42				9.98		7.30				802		2.05			2.05			1.51			94
4/1/11 to 3/31/12			9.17		0.07			0.39			0.46		(0.07	)		—			(0.07	)		0.39				9.56		5.02				1,165		2.05			2.05			0.82			128
4/1/10 to 3/31/11			8.26		0.07			0.91			0.98		(0.07	)		—			(0.07	)		0.91				9.17		11.94				1,697		2.11			2.11			0.85			126
4/1/09 to 3/31/10			6.39		0.10			1.89			1.99		(0.12	)		—			(0.12	)		1.87				8.26		31.34				1,961		2.08			2.08			1.35			139
Class C
4/1/14 to 9/30/14(15)		$	10.27		0.08			—			0.08		(0.08	)		(0.28	)		(0.36	)		(0.28	)		$	9.99		0.67	%(4)		$	3,903		2.06	%(3)		2.06	%(3)		1.61	%(3)		25	%(4)
4/1/13 to 3/31/14			10.07		0.15			1.15			1.30		(0.14	)		(0.96	)		(1.10	)		0.20				10.27		13.90				3,785		2.04			2.04			1.46			61
4/1/12 to 3/31/13			9.65		0.15			0.53			0.68		(0.15	)		(0.11	)		(0.26	)		0.42				10.07		7.17				3,021		2.05			2.05			1.51			94
4/1/11 to 3/31/12			9.25		0.08			0.38			0.46		(0.06	)		—			(0.06	)		0.40				9.65		5.06				2,381		2.05			2.05			0.87			128
4/1/10 to 3/31/11			8.33		0.07			0.92			0.99		(0.07	)		—			(0.07	)		0.92				9.25		11.96				1,580		2.11			2.11			0.83			126
4/1/09 to 3/31/10			6.44		0.10			1.91			2.01		(0.12	)		—			(0.12	)		1.89				8.33		31.41				1,468		2.08			2.08			1.32			139

Footnote Legend:

⁽¹⁾  Sales charges, where applicable, are not reflected in the total return calculation.

⁽²⁾  Computed using average shares outstanding.

⁽³⁾  Annualized.

⁽⁴⁾  Not annualized.

⁽⁵⁾  Amount is less than $0.005.

⁽⁶⁾  See Note 3C in the Notes to Financial Statements for information on recapture of expenses previously waived.

⁽⁷⁾  Inception date.

⁽⁸⁾  Represents a blended ratio.

⁽⁹⁾  For the Growth & Income Fund, the ratio of net expenses to average net assets includes the effect of $265 (reported in 000’s) reimbursement of extraordinary legal expenses incurred during the fiscal years ended March 31, 2008 and August 31, 2007, along with an additional $96 (reported in 000’s) of extraordinary expenses incurred in the fiscal period ended March 31, 2010. If excluded, the net expense ratios for the period ended March 31, 2010 would have been as follows: Class A 1.25%, Class B 2.00%, Class C 2.00%, Class I 1.00%.

See Notes to Financial Statements

39

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

⁽¹⁰⁾  Net expense ratio includes extraordinary expenses.

⁽¹¹⁾  For Funds which may invest in other funds the annualized expense ratios do not reflect the fees and expenses associated with the underlying funds.

⁽¹²⁾  Includes the effect of a distribution from a Fair Fund settlement. Without this effect, the total return would have been 16.55% for Class A shares, 15.60% for Class C shares and 17.03% for Class I shares.

⁽¹³⁾  Portfolio turnover calculation excludes security transactions distributed as a result of a redemption-in-kind. See Note 14 in the Notes to Financial Statements.

⁽¹⁴⁾  The Fund is currently under its expense limitation.

⁽¹⁵⁾  Unaudited

See Notes to Financial Statements

40

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2014 (Unaudited)

Note 1. Organization

Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

As of the date of this report, 11 diversified funds of the Trust are offered for sale, of which ten (the “Funds”) are reported in this Semiannual report.

Each Fund has a distinct investment objective outlined below.

Funds	Each Fund Seeks to Provide
Growth & Income Fund	Capital appreciation and current income
Mid-Cap Core Fund	Long-term capital appreciation
Mid-Cap Growth Fund	Capital appreciation
Mid-Cap Value Fund	Long-term capital growth
Quality Large-Cap Value Fund	Long-term capital appreciation
Quality Small-Cap Fund	Long-term capital appreciation
Small-Cap Core Fund	Long-term capital appreciation with dividend income a secondary consideration
Small-Cap Sustainable Growth Fund	Long-term capital appreciation
Strategic Growth Fund	Long-term capital growth
Tactical Allocation Fund	Capital appreciation and income

All of the Funds offer Class A shares and Class C shares. All Funds with the exception of the Tactical Allocation Fund offer Class I shares. Class B shares are no longer available for purchase by new or existing shareholders, except by existing shareholders through Qualifying Transactions. For more information regarding Qualifying Transactions refer to the prospectus.

Class A shares are sold with a front-end sales charge of up to 5.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Funds when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which the CDSC applies for the Funds is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.

Class B shares are sold with a CDSC, which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a 1% CDSC applicable if redeemed within one year of purchase. Class I shares are sold without a front-end sales charge or CDSC.

Virtus Mutual Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectuses and/or statements of additional information. The fees collected will be used to offset certain expenses of the Funds.

Each Class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service fees under a Board-approved 12b-1 and/or shareholder service plan and has exclusive voting rights with respect to such plan. Class I shares are not subject to a 12b-1 plan. Income and other expenses and realized and unrealized gains and losses of each Fund are borne pro rata by the holders of each Class of shares.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates, and those differences could be significant.

A. Security Valuation

Security valuation procedures for each Fund, which include nightly price variance as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Trustees (the “Board” or the “Trustees”). All internally fair valued securities are approved by a valuation committee (the “Valuation Committee”) appointed by the Board. The Valuation Committee is comprised of certain members of management as identified by the Board, and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of the model inputs and any changes to the model. Fair valuations are reviewed by the Board at least quarterly.

Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

•    Level 1 – quoted prices in active markets for identical securities (security types generally include listed securities)

•    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•    Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments)

41

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

A description of the valuation techniques applied to a Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) at the close of regular trading on the New York Stock Exchange (“NYSE”) (generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases the Fund fair values non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, exchange traded funds, and certain indexes as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.

Listed derivatives, such as options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity, as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at NAV. Investments in closed-end mutual funds are valued as of the close of regular trading on the NYSE each business day. Both are categorized as Level 1 in the hierarchy.

Short-term notes having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market and are generally categorized as level 2 in the hierarchy.

A summary of the inputs used to value the Funds’ net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

B. Security Transactions and Investment Income

Security transactions are recorded on the trade date. Realized gains and losses from sales of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method.

Dividend income from REIT investments is recorded using Management’s estimate of the income included in distributions received from such investments; distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

C. Income Taxes

Each Fund is treated as a separate taxable entity. It is the intention of each Fund in the Trust to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.

Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.

Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. As of September 30, 2014, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2011 forward (with limited exceptions).

D. Distributions to Shareholders

Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest.

42

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

E. Expenses

Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each fund or an alternative allocation method can be more appropriately used.

In addition to the net annual operating expenses that a Fund bears directly, the shareholders of the fund indirectly bear the fund’s pro-rata expenses of any underlying mutual funds in which a fund invests.

F. Foreign Currency Translation

Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and paid is treated as a gain or loss on foreign currency. The Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

G. Derivative Financial Instruments

Enhanced disclosures about derivative instruments and hedging activities are intended to improve financial reporting for derivative instruments by better enabling investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund’s results of operations and financial position. Summarized below is a specific type of derivative instrument used by certain Funds.

Futures Contracts: A futures contract is an agreement between two parties to purchase (long) or sell (short) a security at a set price for delivery on a future date. Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or securities equal to the “initial margin” requirements of the futures exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund for financial statement purposes on a daily basis as unrealized gains or losses. When the contract expires or is closed, gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed is realized. This is presented in the Statement of Operations as net realized gain (loss) on futures contracts.

A Fund utilizes equity index futures to equitize residual cash balances, where possible, in order to reduce tracking error from the referenced index. The use of index futures contracts exposes the Fund to equity price risk. In addition to the following risks: 1) the use of futures may result in larger losses or smaller gains than the use of more traditional investments, 2) the prices of futures and the price movements of the securities that the future is intended to simulate may not correlate well, 3) the Fund’s success in using futures will be dependent upon the subadviser’s ability to correctly predict such price movements, 4) liquidity of futures can be adversely affected by market factors, and the prices of such securities may move in unexpected ways, and 5) if the Fund cannot close out a futures position, it may be compelled to continue to make daily cash payments to the broker to meet margin requirements, thus increasing transaction costs.

H. Loan Agreements

Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Loan agreements are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Loan agreements are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.

A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Loan agreements may involve foreign borrowers, and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.

The loan agreements have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR (London Interbank Offered Rate), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a loan agreement is purchased the Fund may pay an assignment fee. On an ongoing basis, the Funds may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

At September 30, 2014, all loan agreements held by the Funds are assignment loans.

I. Securities Lending

Certain Funds may loan securities to qualified brokers through an agreement with Brown Brothers Harriman (“BBH”), as a third party lending agent. Under the terms of the agreement, a Fund doing so is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned

43

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged by BBH for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.

At September 30, 2014, the following Funds had securities on loan ($ reported in thousands):

	Market Value		Cash Collateral
Growth & Income Fund	$	1,697	$	1,735
Mid-Cap Value Fund		13,339		13,665
Tactical Allocation Fund		2,143		2,190

Note 3. Investment Advisory Fees and Related Party Transactions

($ reported in thousands except as noted)

A. Adviser

Virtus Investment Advisers, Inc. (the “Adviser”), an indirect wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the adviser to the Trust. The Adviser manages the Funds’ investment program and general operations of the Funds, including oversight of the Funds’ subadvisers.

As compensation for its services to the Funds, the Adviser is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of each Fund:

Quality Small-Cap Fund	0.70	%
Small-Cap Core Fund	0.75

	First $1 Billion			$1+ Billion through $2 Billion			$2 + Billion
Growth & Income Fund		0.75	%		0.70	%		0.65	%
Mid-Cap Core Fund		0.80			0.75			0.70
Quality Large-Cap Value Fund*		0.75			0.70			0.65
Strategic Growth Fund		0.70			0.65			0.60
Tactical Allocation Fund		0.70			0.65			0.60

	First $400 Million	$400+ Million through $1 Billion	$1+ Billion
Small-Cap Sustainable Growth	0.90%	0.85%	0.80%
	First $500 Million	Over $500 Million
Mid-Cap Growth Fund	0.80%	0.70%
	First $1 Billion	Over $1 Billion
Mid-Cap Value Fund	0.75%	0.70%

B. Subadvisers

The subadvisers manage the investments of each Fund, for which they are paid a fee by the Adviser. A list of the subadvisers and the Funds they serve is as follows:

Fund	Subadviser	Fund	Subadviser
Growth & Income Fund	QS Investors, LLC	Small-Cap Core Fund	Kayne(1)(2)
Mid-Cap Core Fund	Kayne(1)(2)	Small-Cap Sustainable Growth Fund	Kayne(1)(2)
Mid-Cap Growth Fund	Kayne(1)(2)	Strategic Growth Fund	Kayne(1)(2)
Mid-Cap Value Fund	Sasco Capital, Inc.	Tactical Allocation Fund (Fixed Income Portfolio)	Newfleet Asset Management LLC(2)
Quality Large-Cap Value Fund	Kayne(1)(2)	Tactical Allocation Fund (Equity Portfolio)	Euclid Advisors LLC(2)
Quality Small-Cap Fund	Kayne(1)(2)

⁽¹⁾ Kayne Anderson Rudnick Investment Management, LLC.

⁽²⁾  An indirect wholly-owned subsidiary of Virtus.

C. Expense Limits and Fee Waivers

The Adviser has voluntarily agreed to limit certain Fund operating expenses (excluding interest, taxes, extraordinary expenses and acquired fund fees and expenses) so that such expenses do not exceed the following percentages of the average annual net asset values for the following Funds.

	Class A			Class B			Class C			Class I
Growth & Income Fund		1.25	%		N/A			2.00	%		1.00	%
Mid-Cap Core Fund		1.35			N/A			2.10			1.10
Mid-Cap Growth Fund		1.45			2.20	%		2.20			1.20
Mid-Cap Value Fund		1.48			N/A			2.23			1.23
Quality Large-Cap Value Fund		1.35			N/A			2.10			1.10
Quality Small-Cap Fund		1.42			N/A			2.17			1.17
Small-Cap Sustainable Growth Fund		1.50			N/A			2.25			1.25
Strategic Growth Fund		1.47			2.22			2.22			1.22

44

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

The Adviser may discontinue these voluntary expense caps at any time.

The Adviser may recapture operating expenses waived or reimbursed under this arrangement, within three fiscal years following the end of the fiscal year in which such waiver or reimbursement occurred. Each Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with applicable expense limitations. All or a portion of the following Adviser reimbursed expenses may be recaptured as follows:

	Fiscal Year Ended
	2014		2015		2016		Total
Growth & Income Fund	$	255	$	193	$	168	$	616
Mid-Cap Core Fund		70		72		69		211
Mid-Cap Growth Fund		56		52		—		108
Quality Large-Cap Value Fund		81		41		34		156
Small-Cap Sustainable Growth Fund		—		46		63		109

D. Distributor

VP Distributors, LLC (“VP Distributors”), an indirect wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the six-month period (the “period”) ended September 30, 2014, it retained net commissions of $46 Class A shares and deferred sales charges of $—⁽³⁾, $17 for Class B shares and Class C shares, respectively.

In addition, each Fund pays VP Distributors distribution and/or service fees under a Board-approved 12b-1 and/or shareholder service plans, as a percentage of the average daily net assets of each respective class at the annual rates as follows: Class A shares 0.25%; Class B shares 1.00%; Class C shares 1.00%; Class I shares are not subject to a 12b-1 plan.

Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV’s per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.

⁽³⁾  Amount is less than $500

E. Administrator and Transfer Agent

Virtus Fund Services, LLC, an indirect wholly-owned subsidiary of Virtus, serves as the Trust’s Administrator and Transfer Agent of the Trust.

For the period ended September 30, 2014, the Funds incurred administration fees totaling $1,069 which are included in the Statement of Operations.

For the period ended September 30, 2014, the Funds incurred transfer agent fees totaling $1,522 which are included in the Statements of Operations. A portion of these fees was paid to outside entities that also provide services to the Trust.

F. Affiliated Shareholders

($ reported in thousands except shares)

At September 30, 2014, Virtus, its affiliates, and the retirement plans of Virtus and its affiliates, held shares of certain Funds, which may be redeemed at any time, that aggregated the following:

	Shares		Aggregate Net Assets
Growth & Income Fund
Class I		5,172	$	108
Mid-Cap Value Fund
Class A		160		6
Quality Large-Cap Value Fund
Class A		9,726		142
Class I		3,992		58
Quality Small-Cap Fund
Class A		22,416		343
Small-Cap Core Fund
Class A		9,203		216
Tactical Allocation Fund
Class A		2,538		25

Note 4. Purchases and Sales of Securities

($ reported in thousands)

Purchases and sales of securities for all Funds (excluding U.S. Government and agency securities, futures contracts, written options, and short-term investments) during the period ended September 30, 2014, were as follows:

	Purchases		Sales
Growth & Income Fund	$	132,440	$	138,317
Mid-Cap Core Fund		895		684
Mid-Cap Growth Fund		11,989		15,282
Mid-Cap Value Fund		139,801		59,111
Quality Large-Cap Value Fund		11,346		14,407

45

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

	Purchases		Sales
Quality Small-Cap Fund	$	26,097	$	36,925
Small-Cap Core Fund		35,449		106,924
Small-Cap Sustainable Growth Fund		18,724		30,463
Strategic Growth Fund		62,527		82,814
Tactical Allocation Fund		48,211		54,953

Note 5. Derivative Transactions

($ reported in thousands)

Certain Funds invested in derivative instruments such as equity index futures contracts during the current reporting period. The primary type of risk associated with the futures contracts is equity price risk. The Growth and Income Fund utilizes equity index futures to equitize residual cash balances, where possible, in order to reduce tracking error from the S&P 500^® Index.

For additional information on the futures contracts in which the Fund was invested at the end of the reporting period, refer to the Schedule of Investments and Note 2G.

The following is a summary of the Trusts’ derivative instrument holdings categorized by primary risk exposure as of September 30, 2014:

Statements of Assets and Liabilities
	Growth & Income
Assets: Variation margin for futures contracts(1)	$	100
Liabilities: None		—
Net asset (liability) balance	$	100

Statements of Operations
	Growth & Income
Net realized gain (loss) on futures	$	85
Net change in unrealized appreciation (depreciation) on futures		(13	)
Total net realized and unrealized gain (loss)	$	72

⁽¹⁾  Variation margin shown on the Statement of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for open futures contracts.

For the period ended September 30, 2014, Growth & Income Fund’s average volume of futures activities is as follows:

Futures Contracts – Sold(2)
	$1,314

⁽²⁾  Notional Amount

Note 6. Capital Share Transactions

(reported in thousands)

Transactions in shares of capital stock, during the periods ended as indicated below, were as follows:

	Growth & Income Fund												Mid-Cap Core Fund
	Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014						Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		340		$	7,249			874		$	18,256			44		$	885			109		$	2,035
Reinvestment of distributions		424			8,896			367			7,643			3			51			2			38
Shares repurchased		(384	)		(8,227	)		(1,353	)		(27,264	)		(18	)		(361	)		(55	)		(1,039	)
Net Increase / (Decrease)		380		$	7,918			(112	)	$	(1,365	)		29		$	575			56		$	1,034
Class C
Sale of shares		63		$	1,251			107		$	2,077			1		$	11			11		$	201
Reinvestment of distributions		112			2,201			95			1,859			—	(1)		2			—	(1)		4
Shares repurchased		(82	)		(1,653	)		(187	)		(3,659	)		(3	)		(56	)		(14	)		(258	)
Net Increase / (Decrease)		93		$	1,799			15		$	277			(2	)	$	(43	)		(3	)	$	(53	)
Class I
Sale of shares		23		$	498			70		$	1,438			2		$	46			5		$	87
Reinvestment of distributions		33			692			31			643			1			16			1			19
Shares repurchased		(157	)		(3,387	)		(181	)		(3,713	)		(7	)		(133	)		(22	)		(406	)
Net Increase / (Decrease)		(101	)	$	(2,197	)		(80	)	$	(1,632	)		(4	)	$	(71	)		(16	)	$	(300	)

⁽¹⁾  Amount less than 500.

46

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

	Mid-Cap Growth Fund												Mid-Cap Value Fund
	Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014						Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		56		$	1,167			164		$	3,334			1,725		$	65,981			1,127		$	37,178
Reinvestment of distributions		36			747			—			—			24			919			18			527
Shares repurchased		(203	)		(4,209	)		(542	)		(10,855	)		(1,435	)		(54,683	)		(2,385	)		(77,262	)
Net Increase / (Decrease)		(111	)	$	(2,295	)		(378	)	$	(7,521	)		314		$	12,217			(1,240	)	$	(39,557	)
Class B
Sale of shares		1		$	10			—		$	—	(1)		—		$	—			—		$	—
Reinvestment of distributions		—	(1)		8			—			—			—			—			—			—
Shares repurchased		(7	)		(131	)		(30	)		(501	)		—			—			—			—
Net Increase / (Decrease)		(6	)	$	(113	)		(30	)	$	(501	)		—		$	—			—		$	—
Class C
Sale of shares		6		$	112			33		$	561			176		$	6,439			145		$	4,630
Reinvestment of distributions		3			51			—			—			1			49			—			—
Shares repurchased		(29	)	$	(499	)		(41	)		(716	)		(97	)		(3,534	)		(261	)		(8,076	)
Net Increase / (Decrease)		(20	)	$	(336	)		(8	)	$	(155	)		80		$	2,954			(116	)	$	(3,446	)
Class I
Sale of shares		26		$	557			15		$	292			2,147		$	81,996			1,388		$	44,685
Reinvestment of distributions		1			22			—			—			22			840			17			521
Shares repurchased		(8	)		(162	)		(7	)		(150	)		(727	)		(27,547	)		(1,123	)		(36,367	)
Net Increase / (Decrease)		19		$	417			8		$	142			1,442		$	55,289			282		$	8,839
	Quality Large-Cap Value Fund												Quality Small-Cap Fund
	Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014						Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		145		$	2,068			185		$	2,348			350		$	5,654			1,578		$	24,479
Reinvestment of distributions		16			242			25			309			333			5,359			28			389
Shares repurchased		(671	)		(9,490	)		(702	)		(8,936	)		(3,789	)		(59,110	)		(1,902	)		(29,349	)
Net Increase / (Decrease)		(510	)	$	(7,180	)		(492	)	$	(6,279	)		(3,106	)	$	(48,097	)		(296	)	$	(4,481	)
Class C
Sale of shares		360		$	4,951			46		$	585			35		$	562			151		$	2,367
Reinvestment of distributions		3			41			1			13			59			935			—			—
Shares repurchased		(31	)		(430	)		(62	)		(785	)		(148	)		(2,359	)		(234	)		(3,598	)
Net Increase / (Decrease)		332		$	4,562			(15	)	$	(187	)		(54	)	$	(862	)		(83	)	$	(1,231	)
Class I
Sale of shares		25		$	369			49		$	620			4,162		$	65,200			2,033		$	31,530
Reinvestment of distributions		5			66			14			176			207			3,331			22			298
Shares repurchased		(64	)		(910	)		(1,915	)		(24,006	)		(1,167	)		(18,671	)		(2,418	)		(37,542	)
Net Increase / (Decrease)		(34	)	$	(475	)		(1,852	)	$	(23,210	)		3,202		$	49,860			(363	)	$	(5,714	)

⁽¹⁾ Amount less than 500.

47

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

	Small-Cap Core Fund												Small-Cap Sustainable Growth Fund
	Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014						Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		306		$	7,338			2,997		$	67,656			280		$	4,592			1,560		$	25,926
Reinvestment of distributions		175			4,228			11			242			236			3,885			138			2,239
Shares repurchased		(4,623	)		(110,836	)		(2,991	)		(69,413	)		(1,333	)		(21,755	)		(804	)		(13,309	)
Net Increase / (Decrease)		(4,142	)	$	(99,270	)		17		$	(1,515	)		(817	)	$	(13,278	)		894		$	14,856
Class C
Sale of shares		60		$	1,294			465		$	9,565			59		$	914			425		$	6,726
Reinvestment of distributions		47			1,025			1			10			36			565			17			260
Shares repurchased		(157	)		(3,408	)		(356	)		(7,627	)		(115	)		(1,769	)		(143	)		(2,237	)
Net Increase / (Decrease)		(50	)	$	(1,089	)		110		$	1,948			(20	)	$	(290	)		299		$	4,749
Class I
Sale of shares		3,926		$	97,060			7,040		$	166,807			621		$	10,155			879		$	14,663
Reinvestment of distributions		217			5,400			10			215			41			685			19			313
Shares repurchased		(2,370	)		(58,717	)		(4,799	)		(116,092	)		(482	)		(7,900	)		(356	)		(5,869	)
Net Increase / (Decrease)		1,773		$	43,743			2,251		$	50,930			180		$	2,940			542		$	9,107
	Strategic Growth Fund												Tactical Allocation Fund
	Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014						Six Months Ended September 30, 2014 (Unaudited)						Year Ended March 31, 2014
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		191		$	2,426			397		$	4,550			232		$	2,327			669		$	6,590
Reinvestment of distributions		—			—			92			961			667			6,711			2,045			19,333
Shares repurchased		(1,713	)		(22,030	)		(4,040	)		(46,396	)		(1,089	)		(10,986	)		(2,171	)		(21,292	)
Net Increase / (Decrease)		(1,522	)	$	(19,604	)		(3,551	)	$	(40,885	)		(190	)	$	(1,948	)		543		$	4,631
Class B
Sale of shares		—		$	—			2		$	20			1		$	11			1		$	13
Reinvestment of distributions		—			—			—			—			2			16			7			69
Shares repurchased		(43	)		(460	)		(110	)		(1,082	)		(15	)		(154	)		(31	)		(311	)
Net Increase / (Decrease)		(43	)	$	(460	)		(108	)	$	(1,062	)		(12	)	$	(127	)		(23	)	$	(229	)
Class C
Sale of shares		13		$	146			31		$	301			95		$	981			127		$	1,273
Reinvestment of distributions		—			—			—			—			12			120			32			313
Shares repurchased		(40	)		(436	)		(102	)		(1,000	)		(84	)		(869	)		(91	)		(913	)
Net Increase / (Decrease)		(27	)	$	(290	)		(71	)	$	(699	)		23		$	232			68		$	673
Class I
Sale of shares		36		$	477			114		$	1,318			—		$	—			—		$	—
Reinvestment of distributions		—			—			3			28			—			—			—			—
Shares repurchased		(31	)		(407	)		(210	)		(2,542	)		—			—			—			—
Net Increase / (Decrease)		5		$	70			(93	)	$	(1,196	)		—		$	—			—		$	—

Note 7. 10% Shareholders

At September 30, 2014, certain Funds had individual shareholder accounts, and/or omnibus shareholder accounts, (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of each such Fund as detailed below:

	% of Shares			Number of Accounts
Quality Small-Cap Fund		21	%		1
Small-Cap Core Fund		37			2

48

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

Note 8. Indemnifications

Under the Trust’s organizational documents, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Funds. Each Trustee has entered into an indemnification agreement with the Trust. In addition, in the normal course of business, the Funds enter into contracts that provide a variety of indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds and that have not occurred. However, the Funds have not had prior claims or losses pursuant to these arrangements and expect the risk of loss to be remote.

Note 9. Federal Income Tax Information

($ reported in thousands)

At September 30, 2014, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Funds were as follows:

Fund	Federal Tax Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Growth & Income Fund		137,964		16,477		(2,457	)		14,020
Mid-Cap Core Fund		3,794		1,296		(32	)		1,264
Mid-Cap Growth Fund		70,810		15,959		(1,662	)		14,297
Mid-Cap Value Fund		394,213		149,277		(7,318	)		141,959
Quality Large-Cap Value Fund		40,759		21,881		(354	)		21,527
Quality Small-Cap Fund		179,506		70,572		(3,743	)		66,829
Small-Cap Core Fund		290,661		88,062		(9,379	)		78,683
Small-Cap Sustainable Growth Fund		86,576		23,870		(1,029	)		22,841
Strategic Growth Fund		287,829		139,603		(5,074	)		134,529
Tactical Allocation Fund		164,175		33,732		(3,968	)		29,764

Certain Funds have capital loss carryovers available to offset future realized capital gains, through the indicated expiration dates:

	Expiration Year
	2017		2018		2019		Total
Growth & Income Fund	$	1,478	$	—	$	—	$	1,478
Mid-Cap Value Fund		—		63,785		6,953		70,738
Quality Large-Cap Value Fund		17,583		8,385		—		25,968
Quality Small-Cap Fund		13,965		—		—		13,965
Small-Cap Core Fund		8,043		—		—		8,043
Small-Cap Sustainable Growth Fund		—		1,312		—		1,312
Strategic Growth Fund		1,137		5,952		—		7,089

The Trust may not realize the benefit of these losses to the extent each Fund does not realize gains on investments prior to the expiration of the capital loss carryovers. Growth & Income Fund’s, Quality Large-Cap Value Fund’s, Quality Small-Cap Fund’s, Small-Cap Core Fund’s, Small-Cap Sustainable Growth Fund’s and Strategic Growth Fund’s amounts include losses acquired in connection with prior year mergers. Utilization of these capital loss carryovers is subject to annual limitations.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for tax years beginning after December 22, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

Note 10. Illiquid and Restricted Securities

Investments are generally considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are noted as such at the end of each Fund’s Schedule of Investments where applicable. However, a portion of such footnoted securities could be liquid where the applicable subadviser determines that some, though not all of the position could be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund.

Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category, except where defined as illiquid.

At September 30, 2014, the Funds did not hold any securities that are both illiquid and restricted.

Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

Note 11. Credit Risk and Asset Concentrations

In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as a Fund’s ability to repatriate such amounts.

49

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or Subadvisers to accurately predict risk.

Certain Funds may invest a high percentage of their assets in specific sectors of the market in their pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on a Fund, positive or negative, than if a Fund did not concentrate its investments in such sectors.

At September 30, 2014, the Funds listed held securities issued by various companies in specific sectors as detailed below:

Fund	Sector	Percentage of Total Investments
Mid-Cap Growth Fund	Information Technology		26	%
Mid-Cap Value Fund	Materials		30	%
Quality Small-Cap Fund	Information Technology		27	%
Small-Cap Core Fund	Industrials		27	%
Small-Cap Sustainable Growth Fund	Information Technology		32	%
Strategic Growth Fund	Information Technology		33	%

Note 12. Subsequent Event Evaluations

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance, and has determined that the following subsequent events require disclosure in the financial statements.

Effective December 8, 2014, the Virtus Growth and Income Fund changed sub-advisors from QS Investors, LLC, to Rampart Investment Management, an indirect, wholly owned subsidiary of Virtus.

Effective November 12, 2014, the Virtus Mid Cap Value Fund was re-named the Virtus Contrarian Value Fund. There was no change to the Fund’s investment strategy, to seek long-term capital growth.

Effective November 12, 2014, Virtus Mid-Cap Value Fund (now Contrarian Value Fund) and Virtus Small-Cap Core Fund began offering Class R6 shares.

50

VIRTUS EQUITY TRUST

101 Munson Street

Greenfield, MA 01301-9668

Trustees

George R. Aylward

Leroy Keith, Jr.

Philip R. McLoughlin, Chairman

Geraldine M. McNamara

James M. Oates

Richard E. Segerson

Ferdinand L.J. Verdonck

Officers

George R. Aylward, President

Francis G. Waltman, Executive Vice President

Nancy J. Engberg, Vice President and Chief Compliance Officer

W. Patrick Bradley, Senior Vice President, Chief Financial Officer and Treasurer

Kevin J. Carr, Senior Vice President, Chief Legal Officer, Counsel and Secretary

Investment Adviser

Virtus Investment Advisers, Inc.

100 Pearl Street

Hartford, CT 06103-4506

Principal Underwriter

VP Distributors, LLC

100 Pearl Street

Hartford, CT 06103-4506

Administrator and Transfer Agent

Virtus Fund Services, LLC

100 Pearl Street

Hartford, CT 06103-4506

Custodian

JPMorgan Chase Bank NA

1 Chase Manhattan Plaza

New York, NY 10005-1401

How to Contact Us

Mutual Fund Services	1-800-243-1574
Adviser Consulting Group	1-800-243-4361
Telephone Orders	1-800-367-5877
Text Telephone	1-800-243-1926
Web site	Virtus.com

Important Notice to Shareholders

The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

P.O. Box 9874

Providence, RI 02940-8074

For more information about Virtus Mutual Funds,

please call your financial representative, or contact us

at 1-800-243-1574 or Virtus.com.

8029 11-14

SEMIANNUAL REPORT

Virtus Balanced Fund

September 30, 2014

TRUST NAME: VIRTUS EQUITY TRUST

Not FDIC Insured

No Bank Guarantee

May Lose Value

Table of Contents

Virtus Balanced Fund

(“Balanced Fund”)

Message to Shareholders	1
Key Investment Terms	2
Disclosure of Fund Expenses	3
Schedule of Investments	5
Statement of Assets and Liabilities	22
Statement of Operations	23
Statements of Changes in Net Assets	24
Financial Highlights	25
Notes to Financial Statements	26

PROXY VOTING PROCEDURES AND VOTING RECORD (FORM N-PX)

The subadviser votes proxies relating to portfolio securities in accordance with procedures that have been approved by the Trustees of the Trust (“Trustees,” or the “Board”). You may obtain a description of these procedures, along with information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

FORM N-Q INFORMATION

The Trust files a complete schedule of portfolio holdings for the Fund with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC’s Public Reference Room. Information on the operation of the SEC’s Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330.

This report is not authorized for distribution to prospective investors in the Virtus Balanced Fund unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, the Fund’s record and other pertinent information.

MESSAGE TO SHAREHOLDERS

Dear Fellow Shareholders of Virtus Mutual Funds:

I am pleased to present this semiannual report which highlights performance of your fund for the six months ended September 30, 2014. Market volatility increased over the six-month period, largely driven by geopolitical risks and a slowdown in the global economy. While the economies of Europe and China weakened, the U.S. economy accelerated and the U.S. dollar rallied strongly. Broad U.S. equity indexes registered moderate gains for the six months ended September 30, 2014. The S&P 500® Index returned 6.42%, the Dow Jones Industrial Average rose 4.76%, and the NASDAQ Composite Index® was up 7.67%. By comparison, international equity returns declined, including for both developed markets and emerging markets.

In mid-September, the Federal Reserve provided much needed assurance to investors by announcing that it intends to keep interest rates low for a “considerable time” after its bond buying program ends in October. Against this backdrop, the yield on the bellwether 10-year U.S. Treasury fluctuated widely over the six months, starting at 2.73% on March 31 and ending at 2.52% on September 30. The broader fixed income market, as measured by the Barclays U.S. Aggregate Bond Index, rose 2.21% for the six months. The uncertain state of the global economy is likely to remain a concern for markets in the months ahead. However, the health of the U.S. economy – including improving hiring, manufacturing, and housing data – gives investors reason for optimism. Future market direction will be determined largely by the ability of corporations to continue to produce robust earnings. Market volatility is an ever-present reminder of the importance of portfolio diversification. While diversification cannot guarantee a profit or prevent loss, owning a variety of asset classes may cushion your portfolio against inevitable market fluctuations. Your financial advisor can help you ensure that your portfolio is adequately diversified across asset classes and investment strategies. As always, thank you for entrusting Virtus with your assets. Should you have questions or require assistance, our customer service team is here to help at 1-866-270-7788. We appreciate your business and remain committed to your long-term financial success. Sincerely, George R. Aylward President, Virtus Mutual Funds October 2014 Whenever you have questions about your account or require additional information, please visit us on the Web at www.virtus.com or call our shareowner service group toll-free at 1-800-243-1574. Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.

1

VIRTUS BALANCED FUND

KEY INVESTMENT TERMS

ADR (American Depositary Receipt)

Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.

Barclays U.S. Aggregate Bond Index

The Barclays U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.

Dow Jones Industrial Average

A market indicator composed of 30 actively traded blue chip U.S. stocks. While the index attempts to be representative of the U.S. economy as a whole, it is somewhat heavily weighted toward industrials. It is a price-weighted average, which means that the price movement of each stock is weighted equally regardless of its market capitalization. The index is unmanaged, its returns do not reflect any fees, expenses or sales charges, and it is not available for direct investment.

Federal Reserve (the “Fed”)

The Central Bank of the United States, responsible for controlling the money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 branches and all national and state banks that are part of the system.

NASDAQ Composite Index^®

A market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. Unlike other market indexes, the NASDAQ composite is not limited to companies that have U.S. headquarters. The index is unmanaged, its returns do not reflect any fees, expenses or sales charges, and it is not available for direct investment.

Payment-in-Kind Security “PIK”

A bond which pays some or all interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock.

S&P 500^® Index

The S&P 500^® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment.

Sponsored ADR (American Depositary Receipt)

An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. These shares carry all the rights of the common share such as voting rights. ADRs must be sponsored to be able to trade on the New York Stock Exchange (NYSE).

2

VIRTUS BALANCED FUND

DISCLOSURE OF FUND EXPENSES (Unaudited)

FOR THE SIX-MONTH PERIOD OF APRIL 1, 2014 TO SEPTEMBER 30, 2014

We believe it is important for you to understand the impact of costs on your investments. All mutual funds have operating expenses. As a shareholder of the Virtus Balanced Fund (the “Fund”), you may incur two types of costs: (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class B and Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period. The following Expense Table illustrates the Fund’s costs in two ways.

Actual Expenses

The first section of the accompanying table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second section of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the accompanying table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the second section of the accompanying table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if those transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower depending on the amount of your investment and timing of any purchases or redemptions.

3

VIRTUS BALANCED FUND

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)

FOR THE SIX-MONTH PERIOD OF APRIL 1, 2014 TO SEPTEMBER 30, 2014

Expense Table
	Beginning Account Value April 1, 2014		Ending Account Value September 30, 2014		Annualized Expense Ratio			Expenses Paid During Period*
Actual
Class A	$	1,000.00	$	1,011.20		1.11	%	$	5.60
Class B		1,000.00		1,007.90		1.86			9.36
Class C		1,000.00		1,008.20		1.86			9.36
Hypothetical (5% return before expenses)
Class A		1,000.00		1,019.43		1.11			5.63
Class B		1,000.00		1,015.63		1.86			9.44
Class C		1,000.00		1,015.63		1.86			9.44

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

The Fund may invest in other funds, and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses were included, the expenses would have been higher.

You can find more information about the Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the prospectus.

4

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

Asset Allocations (Unaudited)
The following table presents the portfolio holdings within certain sectors as a percentage of total investments at September 30, 2014.
Common Stocks			57	%
Financials	11	%
Information Technology	10	%
Consumer Discretionary	9	%
Industrials	9	%
All Other Sectors in Common Stocks	18	%
Corporate Bonds and Notes			23	%
Mortgage-Backed Securities			8	%
Other (includes short-term investments and securities lending collateral)			12	%
Total			100	%

	PAR VALUE		VALUE
U.S. GOVERNMENT SECURITIES—1.1%
U.S. Treasury Note
0.375%, 4/30/16	$	1,500	$	1,499
0.500%, 6/30/16		5,000		5,003
TOTAL U.S. GOVERNMENT SECURITIES (Identified Cost $6,499)				6,502
MUNICIPAL BONDS—0.1%
Georgia—0.1%
Rockdale County Water & Sewerage Authority Revenue Taxable 3.060%, 7/1/24		600		593
New Jersey—0.0%
New Jersey Turnpike Authority Taxable Series B Prerefunded 1/1/15 @ 100 (AMBAC Insured) 4.252%, 1/1/16		5		5

	PAR VALUE			VALUE
Texas—0.0%
City of Houston Airport System Revenue United Airlines, Inc., Terminal E Project 4.750%, 7/1/24	$	200		$	210
TOTAL MUNICIPAL BONDS (Identified Cost $803)					808
FOREIGN GOVERNMENT SECURITIES—2.0%
Argentine Republic Series NY, 8.280%, 12/31/33(16)		911			788
Bolivarian Republic of Venezuela
RegS 8.250%, 10/13/24(5)		290			186
7.650%, 4/21/25		415			257
Commonwealth of Australia Series 130, 4.750%, 6/15/16		425	AUD		385
Commonwealth of New Zealand
Series 415, 6.000%, 4/15/15		275	NZD		218

See Notes to Financial Statements

5

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
FOREIGN GOVERNMENT SECURITIES (continued)
Series 1217, 6.000%, 12/15/17		275	NZD	$	228
Kingdom of Morocco 144A 4.250%, 12/11/22(4)	$	600			596
Mongolia 144A 5.125%, 12/5/22(4)		410			367
New South Wales, Australia Treasury Corp., Series 17 5.500%, 3/1/17		430	AUD		401
Republic of Chile 5.500%, 8/5/20		257,000	CLP		453
Republic of Colombia 4.375%, 3/21/23		1,085,000	COP		462
Republic of Costa Rica 144A 4.375%, 4/30/25(4)		265			242
Republic of Croatia 144A 6.375%, 3/24/21(4)		625			681
Republic of El Salvador 144A 6.375%, 1/18/27(4)		490			492
Republic of Indonesia
Series FR30, 10.750%, 5/15/16		4,700,000	IDR		404
Series FR63, 5.625%, 5/15/23		3,328,000	IDR		227
Republic of Peru GDN 144A 7.840%, 8/12/20(4)		1,265	PEN		498
Republic of Philippines 4.950%, 1/15/21		13,000	PHP		304
Republic of Romania 144A 4.875%, 1/22/24(4)		610			647
Republic of Slovak 144A 4.375%, 5/21/22(4)		550			586
Republic of Sri Lanka 144A 6.000%, 1/14/19(4)		475			502
Republic of Uruguay 4.375%, 12/15/28		9,700	UYU(10)		552
United Mexican States
Series M, 6.000%, 6/18/15		15,440	MXN		1,173
Series M, 6.500%, 6/9/22		4,590	MXN		354
4.750%, 3/8/44		905	MXN		896
TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $12,687)					11,899

	PAR VALUE		VALUE
MORTGAGE-BACKED SECURITIES—8.0%
Agency—2.6%
FHLMC
6.500%, 4/1/31	$	774	$	879
5.000%, 7/1/35		387		429
5.000%, 12/1/35		920		1,030
FNMA
6.000%, 5/1/17		18		19
4.000%, 7/1/19		13		14
6.000%, 12/1/32		78		89
6.000%, 11/1/34		728		829
5.500%, 4/1/36		11		12
5.500%, 9/1/36		338		379
6.500%, 5/1/37		590		668
6.000%, 6/1/37		526		604
6.000%, 9/1/37		19		22
6.000%, 1/1/38		29		34
5.000%, 2/1/38		309		344
6.000%, 2/1/38		27		31
5.000%, 3/1/38		328		368
5.000%, 3/1/38		291		324
6.000%, 3/1/38		104		118
5.000%, 4/1/38		684		762
5.500%, 4/1/38		257		287
5.500%, 6/1/38		394		444
6.000%, 7/1/38		262		300
6.000%, 8/1/38		53		60
6.000%, 8/1/38		157		178
5.000%, 6/1/39		1,300		1,442
6.000%, 8/1/39		1,200		1,355
5.000%, 9/1/39		399		442
5.500%, 9/1/39		1,953		2,189
4.500%, 9/1/40		787		862
3.500%, 8/1/42		1,123		1,150
				15,664
Non-Agency—5.4%
A-10 Securitization LLC 13-1, B 144A 4.120%, 11/15/25(4)		590		587
A-10 Term Asset Financing LLC 14-1, A1 144A 1.720%, 4/15/33(4)		365		365
Aventura Mall Trust 13-AVM, C 144A 3.867%, 12/5/32(3)(4)		480		489
Banc of America (Merrill Lynch) Commercial Mortgage, Inc. 05-2, B 5.298%, 7/10/43(3)		1,000		1,018

See Notes to Financial Statements

6

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
MORTGAGE-BACKED SECURITIES (continued)
Non-Agency (continued)
Banc of America (Merrill Lynch) Commercial Mortgage, Inc. 05-2, G 144A 5.523%, 7/10/43(3)(4)	$	220	$	224
Banc of America Funding Corp. 04-B, 2A1 5.429%, 11/20/34(3)		268		266
Banc of America Funding Trust 05-1, 1A1 5.500%, 2/25/35		497		515
Banc of America Mortgage Securities, Inc. 05-3, 1A15 5.500%, 4/25/35		337		352
Bank of America (Merrill Lynch – Countrywide) Home Loan Mortgage Pass-Through-Trust 04-6, 1A2 2.458%, 5/25/34(3)		798		800
Barclays (Lehman Brothers) – UBS Commercial Mortgage Trust 07-C7, A3 5.866%, 9/15/45(3)		1,483		1,641
Bayview Commercial Asset Trust 08-1, A2A 144A 1.155%, 1/25/38(3)(4)		341		338
BCAP LLC Trust 06-RR1, PE 5.000%, 11/25/36		1,096		1,119
Citigroup Commercial Mortgage Trust 07-6, A4 5.899%, 12/10/49(3)		650		713
Commercial Mortgage Pass-Through-Certificates 07-C9, A4 5.989%, 12/10/49(3)		830		914
Extended Stay America Trust 13-ESH7, A27 144A 2.958%, 12/5/31(4)		600		605
Goldman Sachs Mortgage Securities Trust II 07-GG10, A4 5.991%, 8/10/45(3)		1,859		2,030
Greenwich Capital Commercial Funding Corp. 07-GG9, A4 5.444%, 3/10/39		1,175		1,266

	PAR VALUE		VALUE
Non-Agency (continued)
JPMorgan Chase (Bear Stearns) Commercial Mortgage Securities, Inc.
06-PW13, AM 5.582%, 9/11/41(3)	$	500	$	534
07-T28, A3 5.793%, 9/11/42		820		819
07- PW17, A4 5.694%, 6/11/50(3)		2,050		2,241
JPMorgan Chase (WaMu) Mortgage Pass-Through Certificates 03-S11, 3A5 5.950%, 11/25/33		569		607
JPMorgan Chase Commercial Mortgage Securities Trust
10-CNTR, A2 144A 4.311%, 8/5/32(4)		1,225		1,324
06-LDP7, AM 6.058%, 4/15/45(3)		1,000		1,073
JPMorgan Chase Mortgage Trust
04-A4, 2A1 2.351%, 9/25/34(3)		727		741
14-1, 1A1 144A 4.000%, 1/25/44(3)(4)		552		571
Morgan Stanley Capital I Trust
07-T27, A4 5.831%, 6/11/42(3)		1,270		1,395
05-IQ10, A4B 5.284%, 9/15/42(3)		1,450		1,501
08-T29, A4 6.455%, 1/11/43(3)		1,805		2,034
07-IQ14, A4 5.692%, 4/15/49(3)		900		978
07-IQ14, AM 5.869%, 4/15/49(3)		466		488
Motel 6 Trust 12-MTL6 D 144A 3.781%, 10/5/25(4)		600		601
New Residential Mortgage Loan Trust 14-1A, A 144A 3.750%, 1/25/54(3)(4)		376		386
Residential Funding Mortgage Securities I, Inc. 05-S9, A9 5.500%, 12/25/35		525		521

See Notes to Financial Statements

7

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
MORTGAGE-BACKED SECURITIES (continued)
Non-Agency (continued)
Sequoia Mortgage Trust 14-2, A1 144A 4.000%, 6/25/44(3)(4)	$	510	$	528
Springleaf Mortgage Loan Trust 12-3A, A 144A 1.570%, 12/25/59(3)(4)		651		651
Wells Fargo (Wachovia Bank Commercial Mortgage Trust) 07-C30, A5 5.342%, 12/15/43		1,550		1,671
				31,906
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $46,440)				47,570
ASSET-BACKED SECURITIES—2.2%
American Home 4 Rent 14-SFR2, C 144A 4.705%, 10/17/36(4)		615		616
AmeriCredit Automobile Receivables Trust 12-3, C 2.420%, 5/8/18		1,035		1,053
Avis Budget Rental Car Funding LLC
(AESOP) 11-3A, A 144A 3.410%, 11/20/17(4)		1,195		1,244
(AESOP) 12-3A, A 144A 2.100%, 3/20/19(4)		840		841
Bank of America (Merrill Lynch – Countrywide) Asset-Backed Certificates 05-1 AF5A 5.374%, 7/25/35(3)		715		712
Centre Point Funding LLC 12-2A, 1 144A 2.610%, 8/20/21(4)		693		690
Drug Royalty LP II 14-1, A2 144A 3.484%, 7/15/23(4)		716		716
Fairway Outdoor Funding LLC 12-1A, A2 144A 4.212%, 10/15/42(4)		341		340
GSAA Home Equity Trust 05-12, AF3W 4.999%, 9/25/35(3)		380		387
MASTR Specialized Loan Trust 05-3, A2 144A 5.704%, 11/25/35(3)(4)		510		522

	PAR VALUE		VALUE
ASSET-BACKED SECURITIES (continued)
Santander Drive Auto Receivables Trust
12-4, C 2.940%, 12/15/17	$	510	$	520
12-2, D 3.870%, 2/15/18		1,200		1,244
12-3, C 3.010%, 4/16/18		1,180		1,204
13-1, D 2.270%, 1/15/19		480		481
Sierra Timeshare Receivables Funding LLC 12-3A, A 144A 1.870%, 8/20/29(4)		432		434
Silverleaf Finance XV LLC 12-D, A 144A 3.000%, 3/17/25(4)		234		237
TAL Advantage V LLC 13-1A A 144A 2.830%, 2/22/38(4)		800		789
Tidewater Auto Receivables Trust 12-AA, B 144A 2.430%, 4/15/19(4)		475		482
Westgate Resorts LLC 12-2A, A 144A 3.000%, 1/20/25(4)		297		299
TOTAL ASSET-BACKED SECURITIES (Identified Cost $12,714)				12,811
CORPORATE BONDS AND NOTES—22.7%
Consumer Discretionary—2.5%
Boyd Gaming Corp. 9.000%, 7/1/20		445		469
Brookfield Residential Properties, Inc.
144A 6.500%, 12/15/20(4)		480		500
144A 6.125%, 7/1/22(4)		335		338
Caesars Entertainment Operating Co., Inc. 9.000%, 2/15/20		210		163
Caesars Entertainment Resort Properties LLC 144A 8.000%, 10/1/20(4)		195		193
Caesars Growth Properties Holdings LLC 144A 9.375%, 5/1/22(4)		215		189
CCO Holdings LLC 5.250%, 9/30/22		255		250
Chrysler Group LLC 8.250%, 6/15/21		605		662

See Notes to Financial Statements

8

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
CORPORATE BONDS AND NOTES (continued)
Consumer Discretionary (continued)
Clear Channel Worldwide Holdings, Inc. Series B 7.625%, 3/15/20	$	795	$	829
Columbus International, Inc. 144A 7.375%, 3/30/21(4)		200		209
Guitar Center, Inc. 144A 9.625%, 4/15/20(4)		110		85
iHeartCommunications, Inc.
10.000%, 1/15/18		110		93
144A 9.000%, 9/15/22(4)		215		214
Intelsat Jackson Holdings SA 5.500%, 8/1/23		420		403
Isle of Capri Casinos, Inc. 5.875%, 3/15/21		490		499
JC Penney Corp., Inc. 8.125%, 10/1/19		120		118
Kohl’s Corp. 4.750%, 12/15/23		600		637
Landry’s, Inc. 144A 9.375%, 5/1/20(4)		395		420
Meritor, Inc. 6.750%, 6/15/21		435		455
MGM Resorts International 6.750%, 10/1/20		500		534
MHGE Parent LLC 144A 8.500%, 8/1/19(4)		365		346
Mohegan Tribal Gaming Authority 9.750%, 9/1/21		400		408
Numericable Group SA 144A 6.000%, 5/15/22(4)		485		489
Penn National Gaming, Inc. 5.875%, 11/1/21		295		273
Pinnacle Entertainment, Inc. 6.375%, 8/1/21		465		488
QVC, Inc. 4.375%, 3/15/23		600		599
Scientific Games International, Inc. 144A 6.625%, 5/15/21(4)		495		415
Seminole Hard Rock Entertainment, Inc. 144A 5.875%, 5/15/21(4)		155		150

	PAR VALUE		VALUE
Consumer Discretionary (continued)
Signet UK Finance plc 4.700%, 6/15/24	$	630	$	635
Sirius XM Radio, Inc. 144A 4.250%, 5/15/20(4)		485		466
Six Flags Entertainment Corp. 144A 5.250%, 1/15/21(4)		525		512
Station Casinos LLC 7.500%, 3/1/21		525		550
Taylor Morrison Communities, Inc. 144A 5.250%, 4/15/21(4)		605		593
Toll Brothers Finance Corp. 6.750%, 11/1/19		465		522
Viking Cruises Ltd. 144A 8.500%, 10/15/22(4)		480		524
VTR Finance B.V. 144A 6.875%, 1/15/24(4)		250		259
Wyndham Worldwide Corp. 5.625%, 3/1/21		545		605
				15,094
Consumer Staples—0.3%
Elizabeth Arden, Inc. 7.375%, 3/15/21		315		281
Flowers Foods, Inc. 4.375%, 4/1/22		600		635
Ingles Markets, Inc. 5.750%, 6/15/23		385		388
Reynolds American, Inc. 3.250%, 11/1/22		610		589
Whitewave Foods Co. (The) 5.375%, 10/1/22		165		167
				2,060
Energy—3.4%
Atlas Energy Holdings Operating Co. LLC 144A 7.750%, 1/15/21(4)		180		178
BreitBurn Energy Partners 7.875%, 4/15/22		340		346
California Resources Corp. 144A 6.000%, 11/15/24(4)		420		433
Calumet Specialty Products Partners LP 144A 6.500%, 4/15/21(4)		445		425
CHC Helicopter SA 9.250%, 10/15/20		324		347

See Notes to Financial Statements

9

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
CORPORATE BONDS AND NOTES (continued)
Energy (continued)
CITGO Petroleum Corp. 144A 6.250%, 8/15/22(4)	$	250	$	261
Compagnie Generale de Geophysique-Veritas 6.500%, 6/1/21		365		323
CONSOL Energy, Inc. 144A 5.875%, 4/15/22(4)		315		311
Denbury Resources, Inc. 5.500%, 5/1/22		480		477
El Paso Pipeline Partners Operating Co. LLC 7.500%, 11/15/40		1,155		1,468
Endeavor Energy Resources LP 144A 7.000%, 8/15/21(4)		265		274
Energy Transfer Partners LP
5.200%, 2/1/22		1,295		1,389
5.875%, 1/15/24		480		493
6.500%, 2/1/42		635		723
Energy XXI Gulf Coast, Inc. 144A 6.875%, 3/15/24(4)		630		594
EnQuest plc 144A 7.000%, 4/15/22(4)		490		463
Forest Oil Corp. 7.250%, 6/15/19		510		482
FTS International, Inc. 144A 6.250%, 5/1/22(4)		185		183
Gazprom Neft OAO (GPN Capital SA) 144A 6.000%, 11/27/23(4)(6)		200		189
Gulfmark Offshore, Inc. 6.375%, 3/15/22		465		451
Gulfport Energy Corp. 144A 7.750%, 11/1/20(4)		85		89
Kosmos Energy Ltd. 144A 7.875%, 8/1/21(4)		300		304
Linn Energy LLC 6.500%, 9/15/21		305		299
Lukoil OAO International Finance BV 144A 4.563%, 4/24/23(4)		620		556
MEG Energy Corp. 144A 7.000%, 3/31/24(4)		245		254
NGL Energy Partners LP (NGL Energy Finance Corp.) 144A 5.125%, 7/15/19(4)		255		251

	PAR VALUE			VALUE
Energy (continued)
Novatek OAO (Novatek Finance Ltd.) 144A 4.422%, 12/13/22(4)(6)	$	635		$	549
Pacific Rubiales Energy Corp. 144A 5.375%, 1/26/19(4)		600			610
Parker Drilling Co. (The) 7.500%, 8/1/20		485			509
Petrobras International Finance Co. 5.375%, 1/27/21		875			884
Petroleos Mexicanos
3.500%, 1/30/23		795			764
144A 4.875%, 1/18/24(4)		200			210
QGOG Constellation SA 144A 6.250%, 11/9/19(4)		480			481
Regency Energy Partners LP 5.875%, 3/1/22		425			445
Rosetta Resources, Inc. 5.875%, 6/1/24		490			482
Rowan Cos., Inc. 4.875%, 6/1/22		555			577
Transocean, Inc. 3.800%, 10/15/22		565			519
Tullow Oil plc 144A 6.000%, 11/1/20(4)		605			608
Weatherford International Ltd. 4.500%, 4/15/22		540			562
Williams Cos., Inc. (The)
3.700%, 1/15/23		950			898
4.550%, 6/24/24		205			203
					19,864
Financials—8.8%
Aircastle Ltd.
4.625%, 12/15/18		30			30
6.250%, 12/1/19		500			529
5.125%, 3/15/21		390			386
Akbank TAS 144A 7.500%, 2/5/18(4)		845	TRY		330
Allstate Corp. (The) 5.750%, 8/15/53(3)(8)		820			873
ALROSA Finance S.A. 144A 7.750%, 11/3/20(4)		525			543
Apollo Management Holdings LP 144A 4.000%, 5/30/24(4)		590			594

See Notes to Financial Statements

10

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
CORPORATE BONDS AND NOTES (continued)
Financials (continued)
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A 6.750%, 9/30/22(4)	$	530		$	594
Banco de Credito del Peru 144A 6.125%, 4/24/27(3)(4)		730			779
Banco de Credito e Inversiones 144A 4.000%, 2/11/23(4)		600			592
Banco Inbursa SA Institucion de Banca Multiple 144A 4.125%, 6/6/24(4)		490			474
Banco Internacional del Peru SAA 144A 6.625%, 3/19/29(3)(4)		925			1,004
Banco Santander Brasil SA 144A 8.000%, 3/18/16		300	BRL		117
Banco Santander Chile 144A 3.875%, 9/20/22(4)		900			887
Banco Votorantim S.A. 144A 7.375%, 1/21/20(4)		650			720
Bancolombia S.A. 5.125%, 9/11/22		580			582
Bank of America Corp.
5.750%, 8/15/16		1,155			1,248
5.625%, 7/1/20		715			808
4.200%, 8/26/24		475			470
Bank of Baroda 144A 4.875%, 7/23/19(4)		600			632
Bank of India
144A 3.250%, 4/18/18(4)		605			611
144A 3.625%, 9/21/18(4)		300			305
Barclays Bank plc 144A 6.050%, 12/4/17(4)		555			617
Braskem Finance Ltd. 6.450%, 2/3/24		600			624
Brazil Loan Trust 1 144A 5.477%, 7/24/23(4)		590			614
Caixa Economica Federal 144A 7.250%, 7/23/24(3)(4)		485			487
CareTrust Partnership LP 144A 5.875%, 6/1/21(4)		395			397
Carlyle Holdings Finance LLC 144A 3.875%, 2/1/23(4)		605			621
CCO Holdings LLC (CCO Holdings Capital Corp.) 5.250%, 3/15/21		235			231

	PAR VALUE		VALUE
Financials (continued)
Citigroup, Inc. 4.050%, 7/30/22	$	600	$	608
Continental Airlines Pass-Through-Trust 99-2, C2 AMBC 6.236%, 3/15/20		475		509
CorpGroup Banking S.A. 144A 6.750%, 3/15/23(4)		470		472
Corporate Office Properties LP 3.600%, 5/15/23		610		584
Developers Diversified Realty Corp.
7.875%, 9/1/20		475		591
3.500%, 1/15/21		385		388
Development Bank of Kazakhstan OJSC 144A 4.125%, 12/10/22(4)		640		605
Digital Realty Trust LP 5.250%, 3/15/21		540		586
Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21(4)		485		480
Excel Trust LP 4.625%, 5/15/24		255		259
First Cash Financial Services, Inc. 6.750%, 4/1/21		285		298
Ford Motor Credit Co. LLC 5.750%, 2/1/21		535		609
General Electric Capital Corp. 4.650%, 10/17/21		475		523
General Motors Financial Co., Inc. 4.750%, 8/15/17		1,165		1,229
Genworth Holdings, Inc. 4.900%, 8/15/23		825		850
GLP Capital LP (GLP Financing II, Inc.)
4.375%, 11/1/18		20		20
4.875%, 11/1/20		385		393
5.375%, 11/1/23		15		15
Goldman Sachs Group, Inc. (The)
Series D, 6.000%, 6/15/20		595		684
5.750%, 1/24/22		875		996

See Notes to Financial Statements

11

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
CORPORATE BONDS AND NOTES (continued)
Financials (continued)
Highwoods Realty LP 3.625%, 1/15/23	$	595	$	586
Hutchison Whampoa International Ltd. Series 12, 144A 6.000%(3)(4)(7)(8)		680		730
ICAHN Enterprises LP (ICAHN Enterprises Finance Corp.)
4.875%, 3/15/19		45		45
6.000%, 8/1/20		240		247
5.875%, 2/1/22		450		449
ICICI Bank Ltd. 144A 4.800%, 5/22/19(4)		600		635
Intesa San Paolo SpA 3.125%, 1/15/16		480		491
iStar Financial, Inc. 5.000%, 7/1/19		270		261
Itau Unibanco Holding S.A. 144A 5.125%, 5/13/23(4)		660		645
JPMorgan Chase & Co.
6.125%, 6/27/17		1,225		1,366
4.400%, 7/22/20		620		668
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42(4)		480		520
Korea Finance Corp. 4.625%, 11/16/21		430		468
Leucadia National Corp. 5.500%, 10/18/23		460		481
Level 3 Financing, Inc. 7.000%, 6/1/20		685		725
Liberty Mutual Group, Inc. 144A 4.250%, 6/15/23(4)		590		603
Lincoln National Corp. 4.200%, 3/15/22		915		965
Macquarie Bank Ltd. 144A 6.625%, 4/7/21(4)		34		39
Macquarie Group Ltd. 144A 6.250%, 1/14/21(4)		490		554
Morgan Stanley
5.550%, 4/27/17		570		624
5.500%, 7/28/21		300		338
6.375%, 7/24/42		610		762
Series H, 5.450%, 12/29/49(3)		75		75

	PAR VALUE		VALUE
Financials (continued)
MPT Operating Partnership LP 5.500%, 5/1/24	$	170	$	173
Nationstar Mortgage LLC
6.500%, 7/1/21		300		287
6.500%, 6/1/22		490		468
Navient LLC 5.500%, 1/25/23		500		481
Nordea Bank AB 144A 4.250%, 9/21/22(4)		600		617
Onex York Acquisition Corp. 144A 8.500%, 10/1/22(4)		290		289
PennantPark Investment Corp. 4.500%, 10/1/19		525		528
Phosagro OAO (Phosagro Bond Funding Ltd.) 144A 4.204%, 2/13/18(4)(6)		595		576
PKO Finance AB 144A 4.630%, 9/26/22(4)(6)		575		597
Prudential Financial, Inc.
5.875%, 9/15/42(3)		330		350
5.625%, 6/15/43(3)(8)		1,150		1,198
Regency Energy Partners LP 4.500%, 11/1/23		480		467
Teachers Insurance & Annuity Association of America 144A 4.375%, 9/15/54(3)(4)		510		514
Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22(4)		665		657
UBS AG 7.625%, 8/17/22		500		581
Ventas Realty LP (Ventas Capital Corp.)
4.250%, 3/1/22		310		323
3.250%, 8/15/22		280		272
Voya Financial, Inc. (f.k.a. ING (U.S.), Inc.) 5.650%, 5/15/53(3)		605		611
VTB Bank OJSC (VTB Capital SA) 144A 6.000%, 4/12/17(4)(6)		675		674
Walter Investment Management Corp. 144A 7.875%, 12/15/21(4)		640		634

See Notes to Financial Statements

12

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
CORPORATE BONDS AND NOTES (continued)
Financials (continued)
Wells Fargo & Co. 3.450%, 2/13/23	$	1,150	$	1,130
XL Group plc Series E, 6.500%, 12/29/49(3)		730		701
Yapi ve Kredi Bankasi AS 144A 4.000%, 1/22/20(4)		600		570
				52,373
Health Care—1.5%
Acadia Healthcare Co.,Inc. 5.125%, 7/1/22		200		196
Actavis, Inc. 3.250%, 10/1/22		640		618
Capsugel SA PIK Interest Capitalization 144A 7.000%, 5/15/19(4)(14)		105		105
Cardinal Health, Inc. 3.200%, 3/15/23		300		294
Catamaran Corp. 4.750%, 3/15/21		335		323
Centene Corp. 4.750%, 5/15/22		490		492
Community Health Systems, Inc. (CHS)
144A 5.125%, 8/1/21(4)		140		140
144A 6.875%, 2/1/22(4)		130		136
Crimson Merger Sub, Inc. 144A 6.625%, 5/15/22(4)		365		333
DaVita Healthcare Partners, Inc. 5.125%, 7/15/24		485		477
Forest Laboratories, Inc. 144A 4.875%, 2/15/21(4)		485		518
HCA, Inc. 6.500%, 2/15/20		560		613
IASIS Healthcare LLC 8.375%, 5/15/19		240		252
LifePoint Hospitals, Inc. 5.500%, 12/1/21		480		488
Mallinckrodt International Finance S.A. 144A 5.750%, 8/1/22(4)		190		192
MPH Acquisition Holdings LLC 144A 6.625%, 4/1/22(4)		345		349
Mylan, Inc. 144A 3.125%, 1/15/23(4)		730		698

	PAR VALUE		VALUE
Health Care (continued)
Owens & Minor, Inc. 3.875%, 9/15/21	$	110	$	110
Salix Pharmaceuticals Ltd. 144A 6.000%, 1/15/21(4)		85		92
Select Medical Corp. 6.375%, 6/1/21		615		618
Tenet Healthcare Corp.
144A 5.500%, 3/1/19(4)		260		262
4.500%, 4/1/21		765		749
8.125%, 4/1/22		580		638
Valeant Pharmaceuticals International, Inc. 144A 7.500%, 7/15/21(4)		60		65
				8,758
Industrials—1.8%
AAR Corp. 7.250%, 1/15/22		440		475
ADT Corp. (The) 6.250%, 10/15/21		705		732
AECOM Technology Corp. 144A 5.750%, 10/15/22(4)		195		197
Ahern Rentals, Inc. 144A 9.500%, 6/15/18(4)		370		397
Air Canada
144A 6.750%, 10/1/19(4)		685		725
Pass-Through-Trust, 13-1, B 144A 5.375%, 5/15/21(4)		214		219
Bombardier, Inc.
144A 4.750%, 4/15/19(4)		490		489
144A 6.125%, 1/15/23(4)		680		684
Carpenter Technology Corp. 4.450%, 3/1/23		560		575
Continental Airlines Pass-Through-Trust
99-1, A 6.545%, 2/2/19		864		958
00-1, A1 8.048%, 11/1/20		935		1,076
CPG Merger Sub LLC 144A 8.000%, 10/1/21(4)		185		188
Delta Air Lines Pass-Through-Trust 12-1, A 4.750%, 5/7/20		682		738
Masco Corp. 5.950%, 3/15/22		435		475
Norfolk Southern Corp. 2.903%, 2/15/23		600		580

See Notes to Financial Statements

13

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
CORPORATE BONDS AND NOTES (continued)
Industrials (continued)
Northwest Airlines Pass-Through-Trust 02-1, G2 6.264%, 11/20/21	$	590		$	638
Odebrecht Finance Ltd. 144A 8.250%, 4/25/18(4)		430	BRL		159
Rexel SA 144A 5.250%, 6/15/20(4)		485			490
Spirit AeroSystems, Inc. 144A 5.250%, 3/15/22(4)		140			140
TransDigm, Inc. 144A 6.000%, 7/15/22(4)		490			485
					10,420
Information Technology—0.6%
Ceridian LLC (Comdata, Inc.) 144A 8.125%, 11/15/17(4)		20			20
Dun & Bradstreet Corp. (The) 4.375%, 12/1/22		625			638
First Data Corp. 144A 8.250%, 1/15/21(4)		265			282
11.750%, 8/15/21		1,012			1,177
PIK Interest Capitalization, 144A 8.750%, 1/15/22(4)(14)		335			357
Infinity Acquisition LLC (Infinity Acquisition Finance Corp.) 144A 7.250%, 8/1/22(4)		380			369
Infor Software Parent LLC PIK Interest Capitalization, 144A 7.125%, 5/1/21(4)(14)		125			124
Interactive Data Corp. 144A 5.875%, 4/15/19(4)		370			365
QualityTech LP (QTS Finance Corp.) 144A 5.875%, 8/1/22(4)		50			49
Sanmina Corp. 144A 4.375%, 6/1/19(4)		20			20
Sungard Availability Services Capital, Inc. 144A 8.750%, 4/1/22(4)		260			195
					3,596

	PAR VALUE		VALUE
Materials—1.7%
Alpek SA de C.V. 144A 5.375%, 8/8/23(4)	$	810	$	838
Beverage Packaging Holdings Luxembourg II SA 144A 6.000%, 6/15/17(4)		500		494
Cemex SAB de CV 144A 9.500%, 6/15/18(4)		445		498
Eldorado Gold Corp. 144A 6.125%, 12/15/20(4)		210		210
EuroChem Mineral & Chemical Co. OJSC 144A 5.125%, 12/12/17(4)(6)		585		572
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20(4)		220		248
Gerdau Trade, Inc. 144A 4.750%, 4/15/23(4)		725		692
Hexion U.S. Finance Corp.
8.875%, 2/1/18		330		337
6.625%, 4/15/20		335		338
Ineos Finance plc 144A 8.375%, 2/15/19(4)		365		392
INEOS Group Holdings SA 144A 5.875%, 2/15/19(4)		250		247
Inversiones CMPC S.A. 144A 4.375%, 5/15/23(4)		850		825
NewMarket Corp. 4.100%, 12/15/22		649		651
PTT Global Chemical plc RegS 4.250%, 9/19/22(5)		475		481
Rayonier AM Products, Inc. 144A 5.500%, 6/1/24(4)		305		291
Reynolds Group Issuer, Inc. 8.250%, 2/15/21		365		388
Sappi Papier Holding GmbH 144A 6.625%, 4/15/21(4)		420		437
Tronox Finance LLC 6.375%, 8/15/20		355		359
United States Steel Corp. 6.875%, 4/1/21		605		647
Vale Overseas Ltd. 4.375%, 1/11/22		580		584
Vedanta Resources plc 144A 9.500%, 7/18/18(4)		480		552
				10,081

See Notes to Financial Statements

14

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
CORPORATE BONDS AND NOTES (continued)
Telecommunication Services—1.5%
America Movil SAB de C.V. Series 12 6.450%, 12/5/22		3,000	MXN	$	216
AT&T, Inc. 3.875%, 8/15/21	$	1,185			1,242
CenturyLink, Inc. Series S, 6.450%, 6/15/21		645			693
Cincinnati Bell, Inc. 8.375%, 10/15/20		485			514
Crown Castle Towers LLC 144A 4.883%, 8/15/20(4)		1,200			1,323
Digicel Group Ltd. 144A 8.250%, 9/30/20(4)		480			497
Empresa Nacional de Telecomunicaciones S.A. 144A 4.875%, 10/30/24(4)		240			246
Frontier Communications Corp. 6.250%, 9/15/21		275			274
Koninklijke KPN NV 144A 7.000%, 3/28/73(3)(4)(8)		485			503
Millicom International Cellular SA 144A 6.625%, 10/15/21(4)		200			209
Sprint Communications, Inc. 6.000%, 11/15/22		640			623
T-Mobile USA, Inc.
6.125%, 1/15/22		355			358
6.731%, 4/28/22		120			123
6.500%, 1/15/24		250			254
Telefonica Emisiones SAU 4.570%, 4/27/23		510			533
Wind Acquisition Finance S.A. 144A 4.750%, 7/15/20(4)		245			237
Windstream Corp. 7.750%, 10/15/20		720			761
					8,606
Utilities—0.6%
Abu Dhabi National Energy Co. 144A 2.500%, 1/12/18(4)		600			605

	PAR VALUE		VALUE
Utilities (continued)
Electricite de France SA 144A 5.250%(3)(4)(7)(8)	$	610	$	620
Enel SpA 144A 8.750%, 9/24/73(3)(4)(8)		245		285
FirstEnergy Transmission LLC 144A 4.350%, 1/15/25(4)		630		641
Israel Electric Corp. Ltd. 144A 5.625%, 6/21/18(4)		400		425
RJS Power Holdings LLC 144A 5.125%, 7/15/19(4)		275		274
State Grid Overseas Investment Ltd. 144A 4.125%, 5/7/24(4)		610		625
				3,475
TOTAL CORPORATE BONDS AND NOTES (Identified Cost $133,214)				134,327
CONVERTIBLE BONDS—0.1%
General Electric Capital Corp. Series A 7.125%, 12/15/49(3)		500		579
TOTAL CONVERTIBLE BONDS (Identified Cost $500)				579
LOAN AGREEMENTS—3.4%
Consumer Discretionary—0.7%
Brickman Group Ltd. LLC (The) Second Lien, 7.500%, 12/17/21		229		227
Caesars Entertainment Operating Co., Inc. Tranche B-7, 9.750%, 1/28/18		153		145
Caesars Growth Properties Holdings LLC Tranche B, First Lien 6.250%, 5/8/21		185		176
CBAC Borrower LLC Tranche B, 8.250%, 7/2/20		252		258
Charter Communications Operating LLC Tranche G, 4.250%, 9/10/21		115		115
Clear Channel Communications, Inc. Tranche D, 6.904%, 1/30/19		574		550

See Notes to Financial Statements

15

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
LOAN AGREEMENTS (continued)
Consumer Discretionary (continued)
Delta 2 (Lux) S.A.R.L. Second Lien, 0.000%, 7/29/22(9)	$	271	$	270
Key Safety Systems, Inc. 4.750%, 8/29/21		237		237
Leslie’s Poolmart Tranche B, 4.250%, 10/16/19		465		459
Marina District Finance Co., Inc. 6.750%, 8/15/18		388		389
Peppermill Casinos, Inc. Tranche B, 7.250%, 11/9/18		468		475
Shingle Springs Tribal Gaming Authority 6.250%, 8/29/19		291		298
TWCC Holding Corp. Second Lien, 7.000%, 6/26/20		612		601
				4,200
Consumer Staples—0.2%
Albertson’s LLC Tranche B-4 4.500%, 8/25/21		322		321
New Hostess Brand Acquisition LLC Tranche B, 6.750%, 4/9/20		404		415
Rite Aid Corp.
Tranche 1, Second Lien, 5.750%, 8/21/20		31		31
Tranche 2, 4.875%, 6/21/21		340		339
				1,106
Energy—0.4%
Arch Coal, Inc. 6.250%, 5/16/18		499		458
Chief Exploration & Development LLC Second Lien 7.500%, 5/16/21		356		357

	PAR VALUE		VALUE
Energy (continued)
Drillships Ocean Ventures, Inc. 5.500%, 7/25/21	$	271	$	263
Fieldwood Energy LLC Closing Date Loan, Second Lien, 8.375%, 9/30/20		480		483
Jonah Energy LLC Second Lien, 7.500%, 5/12/21		285		283
Templar Energy LLC Second Lien, 8.500%, 11/25/20		480		466
				2,310
Financials—0.3%
Altisource Solutions S.A.R.L. Tranche B, 4.500%, 12/9/20		520		496
Asurion LLC Second Lien, 8.500%, 3/3/21		365		370
Capital Automotive LP Second Lien, 6.000%, 4/30/20		206		209
Walter Investment Management Corp. Tranche B 4.750%, 12/18/20		560		538
				1,613
Health Care—0.5%
Ardent Medical Services, Inc.
First Lien, 6.750%, 7/2/18		143		143
Second Lien, 11.000%, 1/2/19		124		125
CRC Health Corp. Tranche B, First Lien, 5.250%, 3/29/21		116		116
Gentiva Health Services, Inc. Tranche B, 6.500%, 10/18/19		504		506
InVentiv Health, Inc. Tranche B-4 7.750%, 5/15/18		240		238
MMM Holdings, Inc. 9.750%, 12/12/17		125		125

See Notes to Financial Statements

16

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE		VALUE
LOAN AGREEMENTS (continued)
Health Care (continued)
MSO of Puerto Rico, Inc. 9.750%, 12/12/17	$	91	$	91
NVA Holdings, Inc. Second Lien 8.000%, 8/14/22		227		227
Regional Care, Inc. (RCHP, Inc.) First Lien, 6.000%, 4/23/19		217		218
Surgery Center Holdings, Inc.
First Lien, 6.000%, 4/11/19		263		264
Second Lien, 9.750%, 4/10/20		275		276
0.000%, 7/24/20(9)		63		63
Second Lien, 0.000%, 7/23/21(9)		190		188
United Surgical Partners Tranche B 4.750%, 4/3/19		178		178
				2,758
Industrials—0.4%
Alliance Laundry Systems LLC Second Lien, 9.500%, 12/10/19		54		55
American Airlines, Inc. Tranche B, 3.750%, 6/27/19		735		723
CHG Healthcare Services, Inc. Second Lien, 9.000%, 11/19/20		127		129
Filtration Group Corp. Second Lien, 8.250%, 11/22/21		480		482
Harland Clarke Holdings Corp.
Tranche B-3, 7.000%, 5/22/18		220		222
Tranche B-4, 6.000%, 8/4/19		94		95
International Equipment Solutions Global B.V. 6.750%, 8/16/19		233		233

	PAR VALUE		VALUE
Industrials (continued)
Landmark U.S. Member LLC (Landmark U.S. Corp Acquisition, Inc.) Second Lien, 8.250%, 10/26/20	$	365	$	366
Navistar, Inc. Tranche B, 5.750%, 8/17/17		330		332
U.S. Airways, Inc. Tranche B-1, 3.500%, 5/23/19		100		98
				2,735
Information Technology—0.5%
Allflex Holdings III, Inc. Second Lien, 8.000%, 7/19/21		255		254
Applied Systems, Inc. Second Lien, 7.500%, 1/24/22		11		11
Blue Coat Systems, Inc. Second Lien, 9.500%, 6/26/20		791		791
First Data Corp. 3.655%, 3/23/18		640		629
Infinity Acquisition Ltd. 4.250%, 8/6/21		238		233
Kronos, Inc. First Lien, 4.500%, 10/30/19		6		6
Second Lien, 9.750%, 4/30/20		389		402
Mitchell International, Inc. Second Lien, 8.500%, 10/11/21		334		334
RP Crown Parent LLC Second Lien, 11.250%, 12/21/19		235		225
Sungard Availability Services Capital, Inc. Tranche B, 6.000%, 3/29/19		319		296
				3,181
Materials—0.3%
Fortescue Metals Group (FMG) Resources Property Ltd. 3.750%, 6/30/19		627		615

See Notes to Financial Statements

17

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	PAR VALUE			VALUE
LOAN AGREEMENTS (continued)
Materials (continued)
Houghton International, Inc. Holding Corp.
First Lien, 4.000%, 12/20/19	$	481		$	477
Second Lien, 9.500%, 12/21/20		240			243
Maple Hill Acquisition LLC (Berlin Packaging LLC) Second Lien, 0.000%, 9/23/22(9)		37			37
Noranda Aluminum Acquisition Corp. Tranche B, 5.750%, 2/28/19		344			336
					1,708
Telecommunication Services—0.1%
Integra Telecom Holdings, Inc. Tranche B, 5.250%, 2/22/19		355			353
Utilities—0.0%
Atlantic Power LP 4.750%, 2/24/21		107			106
ExGen Renewables I LLC 5.250%, 2/6/21		124			125
					231
TOTAL LOAN AGREEMENTS (Identified Cost $20,374)					20,195
	SHARES
PREFERRED STOCKS—0.8%
Energy—0.1%
PTT Exploration & Production PCL, 144A, 4.875%(3)(4)		610	(11)		616
Financials—0.7%
General Electric Capital Corp. Series C, 5.250%(3)		600	(11)		601
Goldman Sachs Group, Inc. (The) Series L, 5.700%(3)		485	(11)		492

	SHARES			VALUE
Financials (continued)
JPMorgan Chase & Co. Series V, 5.000%(3)		535	(11)	$	521
JPMorgan Chase & Co., Series Q, 5.150%(3)		590	(11)		562
PNC Financial Services Group, Inc. (The) Series R, 4.850%(3)		490	(11)		464
Wells Fargo & Co. Series K, 7.980%(3)		730	(11)		799
Zions Bancorp, 6.950%(3)		23,200			618
					4,057
TOTAL PREFERRED STOCKS (Identified Cost $4,744)					4,673
COMMON STOCKS—57.4%
Consumer Discretionary—9.0%
Bridgestone Corp. Unsponsored ADR		149,550			2,462
Comcast Corp. Class A		95,000			5,109
Ford Motor Co.		313,000			4,629
Fuji Heavy Industries Ltd.		49,500			3,269
Goodyear Tire & Rubber Co. (The)		215,000			4,856
Las Vegas Sands Corp.		78,000			4,852
Lear Corp.		55,000			4,753
Li & Fung Ltd.		949,450			2,103
Macy’s, Inc.		87,000			5,062
Melco Crown Entertainment Ltd. ADR		78,050			2,052
Michael Kors Holdings Ltd.(2)		68,000			4,854
Tata Motors Ltd. Sponsored ADR		47,250			2,065
Time Warner, Inc.		70,000			5,265
Toyota Motor Corp. Sponsored ADR		18,700			2,198
					53,529
Consumer Staples—2.6%
Archer-Daniels-Midland Co.(The)		109,000			5,570
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR		44,200			1,927
Marine Harvest Asa ADR(12)		185,550			2,609
PepsiCo, Inc.		58,000			5,399
					15,505

See Notes to Financial Statements

18

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS (continued)
Energy—5.8%
Cameco Corp.		116,200	$	2,052
Canadian Natural Resources Ltd.		66,200		2,571
Continental Resources, Inc.(2)		74,000		4,920
Encana Corp.		122,550		2,599
Helmerich & Payne, Inc.		49,000		4,796
Royal Dutch Shell plc Class B ADR(12)		33,700		2,666
Schlumberger Ltd.		48,000		4,881
Suncor Energy, Inc.		135,000		4,880
Valero Energy Corp.		103,000		4,766
				34,131
Financials—10.9%
Aflac, Inc.		90,000		5,242
Aviva plc Sponsored ADR		152,950		2,591
Banco Bilbao Vizcaya Argentaria SA Sponsored ADR		188,622		2,263
BB&T Corp.		141,000		5,247
BlackRock, Inc.		16,400		5,384
Blackstone Group LP (The)		156,000		4,911
BNP Paribas ADR		75,350		2,481
Credit Agricole S.A.		400,250		2,984
Goldman Sachs Group, Inc. (The)		30,000		5,507
ING Groep N.V. ADR(2)		206,350		2,928
Intesa Sanpaolo Sponsored ADR		156,450		2,826
JPMorgan Chase & Co.		91,000		5,482
Lincoln National Corp.		100,000		5,358
ORIX Corp. Sponsored ADR		33,550		2,315
T. Rowe Price Group, Inc.		64,000		5,018
U.S. Bancorp		96,000		4,016
				64,553
Health Care—5.5%
Abbott Laboratories		130,000		5,407
Biogen Idec, Inc.(2)		15,600		5,161
H Lundbeck A/S Sponsored ADR		89,550		1,988
HCA Holdings, Inc.(2)		20,000		1,410
Novartis AG ADR		28,300		2,664
Shire plc ADR		10,950		2,837
UnitedHealth Group, Inc.		62,000		5,347
Valeant Pharmaceuticals International, Inc.(2)		21,450		2,814

	SHARES		VALUE
Health Care (continued)
Zimmer Holdings, Inc.		52,000	$	5,229
				32,857
Industrials—8.9%
Alaska Air Group, Inc.		114,000		4,964
Cummins, Inc.		36,000		4,751
Deere & Co.		65,000		5,329
Dover Corp.		60,000		4,820
Hitachi Ltd. ADR		35,300		2,700
Hutchison Whampoa Ltd. ADR(12)		96,750		2,325
L-3 Communications Holdings, Inc.		48,000		5,708
Nidec Corp. ADR		221,600		3,749
Parker Hannifin Corp.		45,000		5,137
Schneider Electric SA		145,700		2,221
Trinity Industries, Inc.		116,000		5,420
Union Pacific Corp.		50,000		5,421
				52,545
Information Technology—9.8%
Apple, Inc.		55,000		5,541
Cisco Systems, Inc.		214,000		5,386
EMC Corp.		184,000		5,384
Google, Inc. Class A(2)		4,900		2,883
Google, Inc. Class C(2)		4,900		2,829
Intel Corp.		161,000		5,606
Jabil Circuit, Inc.		252,000		5,083
MasterCard, Inc. Class A		73,000		5,396
NetApp, Inc.		129,000		5,542
NXP Semiconductor NV(2)		18,600		1,273
Oracle Corp.		132,000		5,053
QUALCOMM, Inc.		73,000		5,458
Taiwan Semiconductors Manufacturing Co., Ltd. Sponsored ADR		130,500		2,634
				58,068
Materials—2.4%
CF Industries Holdings, Inc.		21,100		5,891
Freeport-McMoRan Copper & Gold, Inc.		144,000		4,702
Newcrest Mining Ltd.(2)(12)		208,550		1,884
Syngenta AG ADR		27,200		1,724
				14,201

See Notes to Financial Statements

19

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS (continued)
Telecommunication Services—2.2%
KDDI Corp., ADR		146,100	$	2,189
Nippon Telegraph & Telephone Corp. ADR		107,150		3,333
Spark New Zealand Ltd.		182,250		2,118
Verizon Communications, Inc.		113,000		5,649
				13,289
Utilities—0.3%
GDF Suez		72,250		1,812
TOTAL COMMON STOCKS (Identified Cost $255,338)				340,490
EXCHANGE-TRADED FUNDS—0.5%
ProShares Ultrashort S&P500(2)		112,000		2,763
TOTAL EXCHANGE-TRADED FUNDS (Identified Cost $2,727)				2,763
TOTAL LONG-TERM INVESTMENTS—98.3%
(Identified Cost $496,040)				582,617	(15)
SHORT-TERM INVESTMENTS—1.5%
Money Market Mutual Funds—1.5%
Fidelity Money Market Portfolio – Institutional Shares (seven-day effective yield 0.080%)		9,068,017		9,068
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $9,068)				9,068
SECURITIES LENDING COLLATERAL—1.2%
INVESCO Trust Short-Term Investments Liquid Assets Portfolio (The) Institutional Shares (seven-day effective yield 0.060%)(13)		7,354,170		7,354
TOTAL SECURITIES LENDING COLLATERAL
(Identified Cost $7,354)				7,354
TOTAL INVESTMENTS—101.0% (Identified Cost $512,462)				599,039	(1)
Other assets and liabilities, net—(1.0)%				(6,163	)
NET ASSETS—100.0%			$	592,876

Abbreviations:

ADR American Depositary Receipt

AMBAC American Municipal Bond Assurance Corp.

FHLMC Federal Home Loan Mortgage Corporation (“Freddie Mac”).

FNMA Federal National Mortgage Association (“Fannie Mae”).

PIK Payment-in-Kind Security

Foreign Currencies

AUD Australian Dollar

BRL Brazilian Real

CLP Chilean Peso

COP Colombian Peso

IDR Indonesian Rupiah

MXN Mexican Peso

NZD New Zealand Dollar

PEN Peruvian Nuevo Sol

PHP Philippine Peso

TRY Turkish Lira

UYU Uruguayan Peso

FOOTNOTE LEGEND:

⁽¹⁾  Federal Income Tax Information: For tax information at September 30, 2014, see Note 8 Federal Income Tax Information in the Notes to Financial Statements.

⁽²⁾  Non-income producing.

⁽³⁾  Variable or step coupon security; interest rate shown reflects the rate in effect at September 30, 2014.

⁽⁴⁾  Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2014, these securities amounted to a value of $75,074 or 12.7% of net assets.

⁽⁵⁾  Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under rules 903 and 904 of the Securities Act of 1933.

⁽⁶⁾  This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁷⁾  No contractual maturity date

⁽⁸⁾  Interest payments may be deferred.

See Notes to Financial Statements

20

VIRTUS BALANCED FUND

SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

⁽⁹⁾  This loan will settle after September 30, 2014, at which time the interest rate, based on the London Interbank Offered Rate (“LIBOR”) and the agreed upon spread on trade date will be reflected.

⁽¹⁰⁾  Principal amount is adjusted according to local inflation index.

⁽¹¹⁾  Value shown as par value.

⁽¹²⁾  All or a portion of security is on loan.

⁽¹³⁾  Represents security purchased with cash collateral received for securities on loan.

⁽¹⁴⁾  100% of the income received was in cash.

⁽¹⁵⁾  All or a portion of the portfolio is segregated as collateral for a delayed delivery settlement.

⁽¹⁶⁾  Security in default.

Country Weightings†
United States	75	%
Canada	3
Japan	3
United Kingdom	3
France	2
Mexico	1
Switzerland	1
Other	12
Total	100	%

† % of total investments as of September 30, 2014

The following table provides a summary of inputs used to value the Fund’s investments as of September 30, 2014 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at September 30, 2014		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Debt Securities:
Asset-Backed Securities	$	12,811	$	—	$	12,811
Convertible Bonds		579		—		579
Corporate Bonds and Notes		134,327		—		134,327
Foreign Government Securities		11,899		—		11,899
Loan Agreements		20,195		—		20,195
Mortgage-Backed Securities		47,570		—		47,570
Municipal Bonds		808		—		808
U.S. Government Securities		6,502		—		6,502
Equity Securities:
Common Stocks		340,490		340,490		—
Exchange-traded Funds		2,763		2,763		—
Preferred Stocks		4,673		618		4,055
Securities Lending Collateral		7,354		7,354		—
Short-Term Investments		9,068		9,068		—
Total Investments	$	599,039	$	360,293	$	238,746

There are no Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 for the period.

See Notes to Financial Statements

21

VIRTUS BALANCED FUND

STATEMENT OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2014 (Unaudited)

(Reported in thousands except shares and per share amounts)

Assets
Investment in securities at value(1)(2)	$	599,039
Cash		163
Receivables
Investment securities sold		1,133
Fund shares sold		3
Dividends and interest receivable		2,854
Tax reclaims		112
Prepaid trustee retainer		4
Prepaid expenses		33
Total assets		603,341
Liabilities
Payables
Fund shares repurchased		240
Investment securities purchased		2,180
Collateral on securities loaned		7,354
Investment advisory fees		273
Distribution and service fees		150
Administration fees		62
Transfer agent fees and expenses		130
Professional fees		24
Other accrued expenses		52
Total liabilities		10,465
Net Assets	$	592,876
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	492,483
Accumulated undistributed net investment income (loss)		91
Accumulated undistributed net realized gain (loss)		13,730
Net unrealized appreciation (depreciation) on investments		86,572
Net Assets	$	592,876
Class A
Net asset value (net assets/shares outstanding) per share	$	15.17
Maximum offering price per share NAV/(1–5.75%)	$	16.10
Shares of beneficial interest outstanding, no par value, unlimited authorization		36,329,682
Net Assets	$	551,229
Class B
Net asset value (net assets/shares outstanding) and offering price per share	$	15.10
Shares of beneficial interest outstanding, no par value, unlimited authorization		66,055
Net Assets	$	997
Class C
Net asset value (net assets/shares outstanding) and offering price per share	$	15.07
Shares of beneficial interest outstanding, no par value, unlimited authorization		2,698,279
Net Assets	$	40,650
(1) Investment in securities at cost	$	512,462
(2) Market value of securities on loan		7,196

See Notes to Financial Statements

22

VIRTUS BALANCED FUND

STATEMENT OF OPERATIONS

SIX MONTHS ENDED SEPTEMBER 30, 2014 (Unaudited)

($ reported in thousands)

Investment Income
Dividends	$	4,754
Interest		5,558
Security lending		93
Foreign taxes withheld		(175	)
Total investment income		10,230
Expenses
Investment advisory fees		1,686
Service fees, Class A		713
Distribution and service fees, Class B		6
Distribution and service fees, Class C		210
Administration fees		375
Transfer agent fees and expenses		362
Registration fees		30
Printing fees and expenses		31
Custodian fees		112
Professional fees		20
Trustees’ fees and expenses		12
Miscellaneous expenses		18
Total expenses		3,575
Net investment income (loss)		6,655
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments		14,638
Net realized gain (loss) on foreign currency transactions		1
Net change in unrealized appreciation (depreciation) on investments		(14,008	)
Net change in unrealized appreciation (depreciation) on foreign currency translation		(7	)
Net gain (loss) on investments		624
Net increase (decrease) in net assets resulting from operations	$	7,279

See Notes to Financial Statements

23

VIRTUS BALANCED FUND

STATEMENTS OF CHANGES IN NET ASSETS

(Reported in thousands)

	Six Months Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase/(decrease) in net assets
From Operations
Net investment income (loss)	$	6,655		$	11,451
Net realized gain (loss)		14,639			40,985
Net change in unrealized appreciation (depreciation)		(14,015	)		24,582
Increase (decrease) in net assets resulting from operations		7,279			77,018
From Distributions to Shareholders
Net investment income, Class A		(6,323	)		(10,354	)
Net investment income, Class B		(8	)		(16	)
Net investment income, Class C		(314	)		(460	)
Net realized short-term gains, Class A		(5,048	)		(464	)
Net realized short-term gains, Class B		(10	)		(1	)
Net realized short-term gains, Class C		(375	)		(35	)
Net realized long-term gains, Class A		(8,654	)		(51,624	)
Net realized long-term gains, Class B		(17	)		(142	)
Net realized long-term gains, Class C		(643	)		(3,821	)
Decrease in net assets from distributions to shareholders		(21,392	)		(66,917	)
From Share Transactions
Sale of shares
Class A (273 and 958 shares, respectively)		4,246			14,323
Class B (—(1) and —(1) shares, respectively)		—	(1)		1
Class C (44 and 171 shares, respectively)		672			2,579
Reinvestment of distributions
Class A (1,189 and 3,952 shares, respectively)		18,497			57,792
Class B (2 and 10 shares, respectively)		33			148
Class C (75 and 256 shares, respectively)		1,155			3,747
Shares repurchased
Class A (1,874 and 4,653 shares, respectively)		(29,186	)		(70,749	)
Class B (18 and 52 shares, respectively)		(285	)		(708	)
Class C (124 and 317 shares, respectively)		(1,912	)		(6,179	)
Increase (decrease) in net assets from share transactions		(6,780	)		954
Net increase (decrease) in net assets		(20,893	)		11,055
Net Assets
Beginning of period		613,769			602,714
End of period	$	592,876		$	613,769
Accumulated undistributed net investment income (loss) at end of period	$	91		$	81

⁽¹⁾  Amount is less than 500.

See Notes to Financial Statements

24

VIRTUS BALANCED FUND

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)		Net Realized and Unrealized Gain (Loss)		Total from Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)			Net Assets, End of Period (000’s)			Ratio of Expenses to Average Net Assets(5)			Ratio of Net Investment Income     (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A
4/1/14 to 9/30/14(6)		$	15.54		0.17		0.02		0.19		(0.18	)		(0.38	)		(0.56	)		(0.37	)		$	15.17		1.12	%(4)		$	551,229		1.11	%(3)		2.22	%(3)		23	%(4)
4/1/13 to 3/31/14			15.35		0.30		1.65		1.95		(0.29	)		(1.47	)		(1.76	)		0.19				15.54		13.79				570,784		1.10			1.97			57
4/1/12 to 3/31/13			14.58		0.20		0.78		0.98		(0.21	)		—			(0.21	)		0.77				15.35		6.77				559,955		1.10			1.39			121
4/1/11 to 3/31/12			14.00		0.22		0.58		0.80		(0.22	)		—			(0.22	)		0.58				14.58		5.83				572,561		1.11			1.57			109
4/1/10 to 3/31/11			12.54		0.21		1.47		1.68		(0.22	)		—			(0.22	)		1.46				14.00		13.59				604,808		1.15			1.67			118
4/1/09 to 3/31/10			9.42		0.23		3.12		3.35		(0.23	)		—			(0.23	)		3.12				12.54		35.82				601,065		1.13			2.02			111
Class B
4/1/14 to 9/30/14(6)		$	15.46		0.12		0.01		0.13		(0.11	)		(0.38	)		(0.49	)		(0.36	)		$	15.10		0.79	%(4)		$	997		1.86	%(3)		1.48	%(3)		23	%(4)
4/1/13 to 3/31/14			15.28		0.18		1.64		1.82		(0.17	)		(1.47	)		(1.64	)		0.18				15.46		12.89				1,272		1.85			1.22			57
4/1/12 to 3/31/13			14.51		0.09		0.78		0.87		(0.10	)		—			(0.10	)		0.77				15.28		5.99				1,822		1.86			0.62			121
4/1/11 to 3/31/12			13.93		0.11		0.58		0.69		(0.11	)		—			(0.11	)		0.58				14.51		5.06				2,387		1.86			0.83			109
4/1/10 to 3/31/11			12.48		0.12		1.46		1.58		(0.13	)		—			(0.13	)		1.45				13.93		12.75				3,437		1.90			0.94			118
4/1/09 to 3/31/10			9.39		0.15		3.09		3.24		(0.15	)		—			(0.15	)		3.09				12.48		34.65				4,594		1.88			1.29			111
Class C
4/1/14 to 9/30/14(6)		$	15.43		0.11		0.03		0.14		(0.12	)		(0.38	)		(0.50	)		(0.36	)		$	15.07		0.82	%(4)		$	40,650		1.86	%(3)		1.47	%(3)		23	%(4)
4/1/13 to 3/31/14			15.26		0.18		1.63		1.81		(0.17	)		(1.47	)		(1.64	)		0.17				15.43		12.89				41,713		1.85			1.22			57
4/1/12 to 3/31/13			14.50		0.09		0.77		0.86		(0.10	)		—			(0.10	)		0.76				15.26		5.95				40,937		1.85			0.64			121
4/1/11 to 3/31/12			13.92		0.11		0.58		0.69		(0.11	)		—			(0.11	)		0.58				14.50		5.07				40,792		1.86			0.82			109
4/1/10 to 3/31/11			12.47		0.12		1.46		1.58		(0.13	)		—			(0.13	)		1.45				13.92		12.76				44,083		1.90			0.92			118
4/1/09 to 3/31/10			9.38		0.14		3.10		3.24		(0.15	)		—			(0.15	)		3.09				12.47		34.69				44,722		1.88			1.27			111

⁽¹⁾  Computed using average shares outstanding.

⁽²⁾  Sales charges, where applicable, are not reflected in total return calculation.

⁽³⁾  Annualized

⁽⁴⁾  Not annualized

⁽⁵⁾  The Fund may invest in other funds, and the annualized expense ratios do not reflect the fees and expenses associated with the underlying funds.

⁽⁶⁾  Unaudited

See Notes to Financial Statements

25

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2014 (Unaudited)

Note 1. Organization

Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

As of the date of this report, 11 diversified funds of the Trust are offered for sale, of which the Virtus Balanced Fund (the “Fund”) is reported in this annual report. The Fund has investment objectives of reasonable income, long-term capital growth and conservation of capital. There is no guarantee that the Fund will achieve its objectives.

The Fund offers Class A shares and Class C shares. Class B Shares of the Fund are no longer available for purchase by new or existing shareholders, except by existing shareholders through Qualifying Transactions (for information regarding Qualifying Transactions, refer to the Fund’s prospectus).

Class A shares are sold with a front-end sales charge of up to 5.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Fund when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which such CDSC applies for the Fund is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.

Class B shares are sold with a CDSC, which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a 1% CDSC, applicable if redeemed within one year of purchase.

Virtus Mutual Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectus and/or statement of additional information. The fees collected will be used to offset certain expenses of the Fund.

Each Class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears different distribution and/or service fees under a Board-approved 12b-1 and/or shareholder service plan, and has exclusive voting rights with respect to such plan. Income and other expenses and realized and unrealized gains and losses of the Fund are borne pro rata by the holders of each class of shares.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates, and those differences could be significant.

A. Security Valuation

Security valuation procedures for the Fund, which include nightly price variance as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Trustees (the “Board” or the

26

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

“Trustees”). All internally fair valued securities are approved by a valuation committee (the “Valuation Committee”) appointed by the Board. The Valuation Committee is comprised of certain members of management as identified by the Board, and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of any model inputs and any changes to the model. Fair valuations are reviewed by the Board at least quarterly.

•    Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities)

•    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•    Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments)

A description of the valuation techniques applied to a Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded, or if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (“NAV”) (at the close of regular trading on the New York Stock Exchange (“NYSE”) generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases the Fund fair values non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, exchange-traded funds (“ETFs”), and certain indexes as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the

27

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

hierarchy. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.

Listed derivatives, such as treasury futures and options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity, as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at their closing NAV determined as of the close of regular trading on the NYSE each business day and are categorized as Level 1 in the hierarchy.

Short-term notes having a remaining maturity of 60 days or less are valued at amortized cost, which approximates market and are generally categorized as Level 2 in the hierarchy.

A summary of the inputs used to value the Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for the Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

B. Security Transactions and Investment Income

Security transactions are recorded on the trade date. Realized gains and losses from sales of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method.

C. Income Taxes

The Fund is treated as a separate taxable entity. It is the intention of the Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.

The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each fund of the Trust will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.

Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. As of September 30, 2014, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2011 forward (with limited exceptions).

D. Distributions to Shareholders

Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences may include the treatment of non-taxable dividends, market premium

28

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

and discount, non-deductible expenses, expiring capital loss carryovers, foreign currency gain or loss, gain or loss on futures contracts, partnerships, operating losses and losses deferred due to wash sales. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid in on shares of beneficial interest.

E. Expenses

Expenses incurred together by the Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each fund or an alternative allocation method can be more appropriately used.

In addition to the net annual operating expenses that the Fund bears directly, the shareholders of the Fund indirectly bear the Fund’s pro/rata expenses of any underlying mutual funds in which the Fund invests.

F. Foreign Currency Translation

Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and paid is treated as a gain or loss on foreign currency. The Fund does not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations which from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

G. Derivative Financial Instruments

Enhanced disclosures about derivatives instruments and hedging activities are intended to improve financial reporting for derivative instruments by better enabling investors to understand how and why a fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a fund’s results of operations and financial position.

H. Loan Agreements

The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Loan agreements are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Loan agreements are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the

29

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.

A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Loan agreements may involve foreign borrowers, and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.

The loan agreements have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR (London Interbank Offered Rate), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a loan agreement is purchased the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

At September 30, 2014, all loan agreements held by the Fund are assignment loans.

I. When-issued and delayed delivery transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued and delayed delivery securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or delayed delivery basis begin earning interest on the settlement date.

J. Securities Lending

($ reported in thousands)

The Fund may loan securities to qualified brokers through an agreement with Brown Brothers Harriman (“BBH”), as a third party lending agent. Under the terms of the agreement, the Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged by BBH for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.

At September 30, 2014, the Fund had securities on loan with a market value of $7,196 and cash collateral of $7,354.

30

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

Note 3. Investment Advisory Fees and Related Party Transactions

($ reported in thousands except as noted)

A. Adviser

Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the adviser to the Fund. The Adviser manages the Fund’s investment program and general operations of the Fund, including oversight of the Fund’s subadvisers.

As compensation for its services to the Fund, the Adviser is entitled to a fee based upon the annual rate: 0.55% of the Fund’s first $1 billion of average daily net assets; 0.50% of the Funds $1+ billion through $2 billion of average daily net assets; and 0.45% of the Fund’s average daily net assets in excess of $2 billion.

B. Subadvisers

The Subadvisers manage the investments of the Fund, for which they are paid a fee by the Adviser.

Newfleet Asset Management, LLC, an indirect, wholly-owned subsidiary of Virtus, is the subadviser of the Fund’s Fixed Income Portfolio. Euclid Advisors LLC, an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s Equity Portfolio.

C. Distributor

VP Distributors, LLC (“VP Distributors”), an indirect wholly-owned subsidiary of Virtus, serves as the distributor of the Fund’s shares and has advised the Fund that for the six-month period (the “period”) ended September 30, 2014, it retained net commissions of $9 for Class A shares and deferred sales charges of $(81) and $103 for Class B shares and Class C shares, respectively.

In addition, the Fund pays VP Distributors distribution and/or service fees under a Board-approved 12b-1 and/or shareholder service plan, as a percentage of the average daily net assets of each respective class at the annual rates as follows: Class A shares 0.25%; Class B shares 1.00%; and Class C shares 1.00%.

Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV’s per share at the time of the exchange. On exchanges with share classes that carry a contingent deferred sales charge, the CDSC schedule of the original shares purchased continues to apply.

D. Administrator and Transfer Agent Services

Virtus Fund Services, LLC, an indirect wholly-owned subsidiary of Virtus, serves as the Trust’s Administrator and Transfer Agent of the Trust.

For the period ended September 30, 2014, the Fund incurred administration fees from the Trust totaling $295 which are included in the Statement of Operations.

For the period ended September 30, 2014, the Fund incurred transfer agent fees from the Trust totaling $226 which are included in the Statement of Operations. A portion of these fees was paid to outside entities that also provide services to the Fund.

31

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

Note 4. Purchases and Sales of Securities

($ reported in thousands)

Purchases and sales of securities (excluding U.S. Government and agency securities and short-term securities) during the period ended September 30, 2014, were as follows:

Purchases		Sales
$	130,896	$	152,005

Purchases or sales of long-term U.S. Government and agency securities during the six months ended September 30, 2014 were as follows:

Purchases		Sales
$	8,998	$	4,557

Note 6. Credit Risk and Asset Concentrations

In countries with limited or developing markets, investments may present greater risks than in more developed markets, and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as the Fund’s ability to repatriate such amounts.

High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or Subadvisers to accurately predict risk.

The Fund may invest a high percentage of its assets in specific sectors of the market in its pursuit of a greater investment return. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.

Note 7. Indemnifications

Under the Trust’s organizational documents, its trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Fund. Each Trustee has entered into an indemnification agreement with the Trust. In addition, in the normal course of business, the Fund enters into contracts that provide a variety of indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund and that have not occurred. However, the Fund has not had prior claims or losses pursuant to these arrangements and expects the risk of loss to be remote.

Note 8. Federal Income Tax Information

($ reported in thousands)

At September 30, 2014, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Fund were as follows:

Federal Tax Cost	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation (Depreciation)
$513,199	$96,363	$(10,523)	$85,840

32

VIRTUS BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Continued)

SEPTEMBER 30, 2014 (Unaudited)

Note 9. Illiquid and Restricted Securities

Investments generally are considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining liquidity; the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment. Illiquid securities are footnoted as such at the end of the Fund’s Schedule of Investments where applicable. However, a portion of such footnoted securities could be liquid where the applicable subadviser determines that some, though not all, of the position could be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund.

Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally 144A securities are excluded from this category, except where defined as illiquid.

The Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

At September 30, 2014, the Fund did not hold any securities that are both illiquid and restricted.

Note 10. Subsequent Event Evaluations

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available for issuance, and has determined that there are no subsequent events that require recognition or disclosure in the financial statements.

33

VIRTUS EQUITY TRUST

101 Munson Street

Greenfield, MA 01301-9668

Trustees

George R. Aylward

Leroy Keith, Jr.

Philip R. McLoughlin, Chairman

Geraldine M. McNamara

James M. Oates

Richard E. Segerson

Ferdinand L.J. Verdonck

Officers

George R. Aylward, President

Francis G. Waltman, Executive Vice President

Nancy J. Engberg, Vice President and Chief Compliance Officer

W. Patrick Bradley, Senior Vice President, Chief Financial Officer and Treasurer

Kevin J. Carr, Senior Vice President, Chief Legal Officer, Counsel and Secretary

Investment Adviser

Virtus Investment Advisers, Inc.

100 Pearl Street

Hartford, CT 06103-4506

Principal Underwriter

VP Distributors, LLC

100 Pearl Street

Hartford, CT 06103-4506

Administrator and Transfer Agent

Virtus Fund Services, LLC

100 Pearl Street

Hartford, CT 06103-4506

Custodian

JPMorgan Chase Bank NA

1 Chase Manhattan Plaza

New York, NY 10005-1401

How to Contact Us

Mutual Fund Services 1-800-243-1574

Adviser Consulting Group 1-800-243-4361

Telephone Orders 1-800-367-5877

Text Telephone 1-800-243-1926

Web site Virtus.com

Important Notice to Shareholders

The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

For more information about

Virtus Mutual Funds, please call

your financial representative, or

contact us at 1-800-243-1574

or Virtus.com

8027 11-14

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)                              Virtus Equity Trust

By (Signature and Title)*	/s/ George R. Aylward
	George R. Aylward, President
	(principal executive officer)

Date     December 5, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ George R. Aylward
	George R. Aylward, President
	(principal executive officer)

Date     December 5, 2014

By (Signature and Title)*	/s/ W. Patrick Bradley
	W. Patrick Bradley, Senior Vice President, Chief Financial Officer, and       Treasurer
	(principal financial officer)

Date     December 5, 2014

^* Print the name and title of each signing officer under his or her signature.