Virtus Investment Partners Reports Preliminary December 31, 2024 Assets Under Management

Rhea-AI Summary

Virtus Investment Partners (NYSE: VRTS) reported preliminary assets under management (AUM) of $175.0 billion and other fee earning assets of $2.3 billion, totaling $177.3 billion in client assets as of December 31, 2024. The company experienced a decrease in AUM from September 30, 2024, attributed to net outflows in institutional accounts and open-end funds, along with negative market performance. This was partially offset by positive net flows in retail separate accounts.

A significant factor was a $3.3 billion partial redemption of a lower-fee institutional mandate. The preliminary average AUM for the quarter was $182.1 billion. By asset class, the portfolio comprised of: Equity ($100.8B), Fixed Income ($37.7B), Multi-Asset ($21.2B), and Alternatives ($15.3B).

Positive

• Positive net flows in retail separate accounts
• Diversified asset mix across multiple categories

Negative

• Net outflows in institutional accounts and open-end funds
• Significant $3.3B redemption from institutional mandate
• Negative market performance impact on AUM
• AUM decreased from $183.7B to $175.0B quarter-over-quarter

Insights

Financial Analyst

The latest AUM report reveals concerning trends for Virtus Investment Partners. Total AUM dropped to $175.0 billion, with a significant $3.3 billion institutional redemption from a lower-fee mandate. This represents a 4.8% decline from September's $183.7 billion. The equity segment saw the steepest decline, falling by 5.6% to $100.8 billion.

The outflows in institutional accounts and open-end funds, combined with negative market performance, paint a challenging picture. While retail separate accounts showed positive flows, it wasn't enough to offset the broader decline. The loss of the large institutional mandate, even at lower fees, could impact revenue stability. The $182.1 billion quarterly average AUM suggests the decline accelerated in December, indicating potential pressure on Q4 2024 earnings.

The shift in asset mix, with equity exposure declining more than fixed income, could affect the overall fee rate, as equity strategies typically command higher fees. The alternatives segment, often a higher-margin business, also saw a 6% decline to $15.3 billion, which could disproportionately impact profitability.

Market Research Analyst

The December AUM data reflects broader industry challenges facing asset managers. The substantial outflows, particularly in institutional accounts, align with the ongoing trend of fee compression and shift toward passive investments. The $3.3 billion mandate loss, while significant, being a lower-fee arrangement suggests a more modest revenue impact than the headline number implies.

The asset mix evolution shows defensive positioning, with fixed income holdings showing more resilience than equity assets. This defensive shift could indicate institutional clients' growing risk aversion amid market uncertainties. The 8.5% month-over-month decline in equity AUM between November and December ($110.2 billion to $100.8 billion) exceeds market performance, suggesting active outflows beyond market movements.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Investment Partners, Inc. (NYSE: VRTS) today reported preliminary assets under management (AUM) of $175.0 billion and other fee earning assets of $2.3 billion for total client assets of $177.3 billion as of December 31, 2024. The decrease in AUM from September 30, 2024 reflects net outflows in institutional accounts and open-end funds as well as negative market performance, partially offset by positive net flows in retail separate accounts. Institutional net outflows included a $3.3 billion partial redemption of a lower-fee mandate. Preliminary average AUM for the quarter was $182.1 billion.

Assets Under Management (unaudited)
($ in millions)
By Product Type:	December 31, 2024			November 30, 2024			September 30, 2024
Open-End Funds (1)	$	56,073		$	58,858		$	58,100
Closed-End Funds		10,225			10,830			10,432
Retail Separate Accounts (2)		49,536			52,280			50,610
Institutional Accounts (3)		59,167			64,808			64,600
Total Assets Under Management	$	175,001		$	186,776		$	183,742
By Asset Class:	December 31, 2024			November 30, 2024			September 30, 2024
Equity	$	100,792		$	110,162		$	106,784
Fixed Income		37,696			38,435			39,014
Multi-Asset (4)		21,174			22,231			21,619
Alternatives (5)		15,339			15,948			16,325
Total Assets Under Management	$	175,001		$	186,776		$	183,742

(1)		Represents assets under management of U.S. retail funds, global funds, exchange-traded funds, and variable insurance funds
(2)		Includes strategies for which investment models are provided to managed account sponsors
(3)		Represents assets under management of institutional separate and commingled accounts including structured products
(4)		Consists of multi-asset offerings not included in equity, fixed income, and alternatives
(5)		Consists of managed futures, event-driven, real estate securities, infrastructure, long/short, and other strategies

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: 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/20250113571131/en/

Sean Rourke

(860) 263-4709

sean.rourke@virtus.com

Source: Virtus Investment Partners

FAQ

What was Virtus Investment Partners' (VRTS) total AUM as of December 31, 2024?

Virtus Investment Partners reported total assets under management (AUM) of $175.0 billion as of December 31, 2024.

How much did VRTS lose in institutional mandate redemption in Q4 2024?

VRTS experienced a $3.3 billion partial redemption from a lower-fee institutional mandate during the quarter.

What was the breakdown of VRTS's assets under management by asset class in December 2024?

As of December 31, 2024, VRTS's AUM breakdown was: Equity ($100.8B), Fixed Income ($37.7B), Multi-Asset ($21.2B), and Alternatives ($15.3B).

How did VRTS's retail separate accounts perform in terms of flows in Q4 2024?

VRTS's retail separate accounts showed positive net flows during the quarter, partially offsetting outflows in other segments.

What was VRTS's average AUM for Q4 2024?

The preliminary average AUM for the quarter was $182.1 billion.