Fund Evaluator:

Virtus KAR Developing Markets I Overview

Virtus KAR Developing Markets I (VIDMX) is an actively managed International Equity Diversified Emerging Mkts fund. Virtus launched the fund in 2021.

The investment seeks capital appreciation. Under normal circumstances, the fund invests at least 80% of its assets in equity securities or equity-linked instruments of developing markets companies. The advisor intends to invest in various types of issuers and industries, and in a number of different countries. Equity securities in which the fund invests include common stocks, preferred stocks, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). The fund may invest in companies of all market capitalizations. Generally, the fund invests in approximately 30-60 securities at any given time. The fund is non-diversified.

About Virtus KAR Developing Markets I (VIDMX)

There are 3 members of the management team with an average tenure of 2.00 years: Hyung Kim (2021), David Forward (2026), Sean Pompa (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: MSCI EM NR USD index with a weighting of 100%. Virtus KAR Developing Markets I has 43 securities in its portfolio. The top 10 holdings constitute 43.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Virtus KAR Developing Markets I is part of the Equity global asset class and is within the International Equity fund group. Virtus KAR Developing Markets I has 92.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.3%. There is 92.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Virtus KAR Developing Markets I has 6.1% of the portfolio in cash.

Assets Under Management

The fund has $477 million in total assets, which is below the $1 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VIDMX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Virtus KAR Developing Markets I expense ratio is high compared to funds in the Diversified Emerging Mkts category. Virtus KAR Developing Markets I has an expense ratio of 1.08%, which is 7% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Virtus KAR Developing Markets I has a portfolio turnover rate of 33%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.

Recently, in the month of June 2026, Virtus KAR Developing Markets I returned 0.3%, which earned it a grade of C, as the Diversified Emerging Mkts category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Virtus KAR Developing Markets I has a trailing yield of 2.39%, which is above the 1.58% category average. The fund normally distributes its income semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Virtus KAR Developing Markets I Grades

Year to date, the fund has returned 6.7%, 19.0 percentage points worse than the category, which translates into a grade of F. The fund has returned 12.6% over the past year (grade of F), 15.0% over the past three years (grade of F) and 3.9% per year over the past five years (grade of F).

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