Virtus Investment Partners Reports Preliminary December 31, 2023 Assets Under Management

Rhea-AI Summary

Virtus Investment Partners, Inc. (NASDAQ: VRTS) reported preliminary assets under management of $172.3 billion as of December 31, 2023. The increase from September 30, 2023, primarily reflects market performance and net inflows in retail separate accounts, partially offset by net outflows in open-end funds and institutional accounts. In addition, the company provided services to $2.6 billion of other fee-earning assets, which are not included in assets under management.

Insights

Financial Analyst

The reported preliminary assets under management (AUM) by Virtus Investment Partners reflects a healthy growth trajectory, indicative of positive market performance and successful acquisition of net inflows in retail separate accounts. This uptick is a vital sign of investor confidence and the firm's capability to attract and retain capital, especially in the retail sector. However, the observed net outflows in open-end funds and institutional accounts could signal a need for closer examination of the product offerings and competitive positioning in these segments. The differentiation between fee-earning assets and AUM is crucial, as the former may contribute to the company's revenue without directly impacting the AUM.

From an investment standpoint, the shift in AUM across different product types and asset classes over the quarter is noteworthy. The increase in equity AUM suggests a market leaning towards risk assets, which might reflect broader economic optimism or sector-specific growth. The stability in fixed income and the growth in multi-asset and alternatives indicate a diversification trend among investors, seeking to balance risk and return in a volatile market environment.

Market Research Analyst

Analyzing the AUM distribution across product types and asset classes offers insights into current investor behavior and market trends. The growth in retail separate accounts and closed-end funds suggests a robust demand for personalized investment solutions and potentially higher-margin products. Conversely, the reduction in AUM for open-end funds and institutional accounts might point to competitive pressures or a shift in investor preference towards more agile or niche investment vehicles.

Furthermore, the allocation towards alternatives and multi-asset strategies underscores a strategic move by investors to hedge against market volatility and seek out non-correlated returns. This could reflect an industry-wide pivot towards innovative investment strategies designed to enhance portfolio robustness amidst uncertain economic conditions.

Economist

The reported figures by Virtus Investment Partners can be interpreted as a microcosm of the broader economic landscape. The increase in equity AUM aligns with an economy that may be experiencing growth or at least positive investor sentiment. In contrast, the stability in fixed income suggests a continued demand for safer investment avenues, potentially highlighting underlying concerns about market volatility or future economic uncertainty.

The role of multi-asset strategies and alternatives in portfolio construction is becoming increasingly significant, as they offer avenues for risk diversification and return enhancement in a low-interest-rate environment. These trends are reflective of adaptive investor strategies in response to global economic shifts, such as geopolitical tensions, monetary policy changes and technological advancements.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Investment Partners, Inc. (NASDAQ: VRTS) today reported preliminary assets under management of $172.3 billion as of December 31, 2023. The increase from September 30, 2023 primarily reflects market performance and net inflows in retail separate accounts, partially offset by net outflows in open-end funds and institutional accounts. In addition, the company provided services to $2.6 billion of other fee-earning assets, which are not included in assets under management.

Assets Under Management (unaudited)
($ in millions)
By Product Type:	December 31, 2023			November 30, 2023			September 30, 2023
Open-End Funds (1)	$	56,062		$	54,392		$	54,145
Closed-End Funds		10,026			9,810			9,472
Retail Separate Accounts		43,202			39,903			38,665
Institutional Accounts (2)		62,969			61,406			60,257
Total	$	172,259		$	165,511		$	162,539
By Asset Class:	December 31, 2023			November 30, 2023			September 30, 2023
Equity	$	96,703		$	90,862		$	87,984
Fixed Income		37,192			37,109			37,352
Multi-Asset (3)		21,411			20,661			19,937
Alternatives (4)		16,953			16,879			17,266
Total	$	172,259		$	165,511		$	162,539

(1)			Represents assets under management of U.S. retail funds, global funds, exchange-traded funds, and variable insurance funds
(2)			Represents assets under management of institutional separate and commingled accounts including structured products
(3)			Consists of strategies and client accounts with substantial holdings in at least two of the following asset classes: equity, fixed income, and alternatives
(4)			Consists of managed futures, event-driven, real estate securities, infrastructure, long/short, and other strategies

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240110486502/en/

Sean Rourke

(860) 263-4709

sean.rourke@virtus.com

Source: Virtus Investment Partners

FAQ

What are Virtus Investment Partners, Inc.'s preliminary assets under management as of December 31, 2023?

Virtus Investment Partners, Inc.'s preliminary assets under management were reported to be $172.3 billion as of December 31, 2023.

What factors contributed to the increase in assets under management from September 30, 2023?

The increase in assets under management primarily reflects market performance and net inflows in retail separate accounts, partially offset by net outflows in open-end funds and institutional accounts.

What other fee-earning assets did the company provide services to that are not included in assets under management?

The company provided services to $2.6 billion of other fee-earning assets, which are not included in assets under management.