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

Rhea-AI Summary

Virtus Investment Partners, Inc. (NYSE: VRTS) reported preliminary assets under management of $179.3 billion as of March 31, 2024, showing an increase primarily due to market performance and net inflows in retail separate accounts. The company also provided services to $2.7 billion of other fee-earning assets. Assets under management by product type and asset class also saw positive growth.

Insights

Financial Analyst

The reported preliminary assets under management (AUM) by Virtus Investment Partners show a positive trajectory, which is indicative of the company's current growth momentum. A detailed examination of the AUM distribution across product types and asset classes reveals a strategic positioning that may appeal to diverse investor preferences. The uptick in retail separate accounts suggests a growing retail client base, which is often associated with higher margin products due to individualized management and potential for bespoke solutions.

While net outflows in institutional accounts and open-end funds might raise questions, it's important to consider the broader industry context. Institutional investors often rebalance portfolios at year-end, which can lead to temporary outflows. However, the overall AUM increase points towards successful market performance and asset appreciation. The presence of multi-asset and alternative investments in the portfolio mix indicates a response to investor demand for diversified risk management solutions, a trend that has been gaining traction in the face of volatile markets.

Market Research Analyst

An analysis of the asset class distribution within Virtus Investment Partners' AUM highlights a significant allocation towards equities. This concentration reflects investor confidence in the stock market's potential for higher returns despite inherent volatility. The equity allocation's growth could signal a bullish market sentiment or effective stock selection strategies by the firm.

In contrast, the fixed income segment has shown modest changes, suggesting stability in this traditionally defensive asset class. However, the slight decrease could also point to a shift in investor risk appetite, moving away from bonds in search of higher yields elsewhere. The alternatives category, including managed futures and real estate securities, demonstrates an innovative approach to asset management, catering to sophisticated investors seeking uncorrelated returns and portfolio diversification.

Economist

The data provided by Virtus Investment Partners serves as a microcosmic indicator of broader economic trends. AUM growth can be partially attributed to the market's recovery or expansion, reflecting economic stability or growth. The net inflows into retail separate accounts may suggest consumer confidence and disposable income levels conducive to investment. Conversely, the net outflows from institutional accounts could be a sign of strategic reallocations in response to economic forecasts or a pursuit of efficiency through cost management.

Additionally, the diversification across asset classes, especially with a substantial equity component, implies an optimistic economic outlook among investors. This optimism, however, must be tempered with caution as overexposure to equities could pose risks should market conditions deteriorate. The inclusion of multi-asset strategies and alternatives in the AUM composition is a prudent approach to hedge against such uncertainties.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Investment Partners, Inc. (NYSE: VRTS) today reported preliminary assets under management of $179.3 billion as of March 31, 2024. The increase from December 31, 2023 primarily reflects market performance and net inflows in retail separate accounts, partially offset by net outflows in institutional accounts and open-end funds. In addition, the company provided services to $2.7 billion of other fee-earning assets, which are not included in assets under management.

Assets Under Management (unaudited)
($ in millions)
By Product Type:	March 31, 2024			February 29, 2024			December 31, 2023
Open-End Funds (1)	$	57,818		$	56,984		$	56,062
Closed-End Funds		10,064			9,856			10,026
Retail Separate Accounts		46,816			45,327			43,202
Institutional Accounts (2)		64,613			63,939			62,969
Total	$	179,311		$	176,106		$	172,259
By Asset Class:	March 31, 2024			February 29, 2024			December 31, 2023
Equity	$	103,501		$	101,336		$	96,703
Fixed Income		37,037			36,712			37,192
Multi-Asset (3)		21,975			21,613			21,411
Alternatives (4)		16,798			16,445			16,953
Total	$	179,311		$	176,106		$	172,259

(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 (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/20240409459221/en/

Sean Rourke

(860) 263-4709

sean.rourke@virtus.com

Source: Virtus Investment Partners

FAQ

What are Virtus Investment Partners' (VRTS) preliminary assets under management as of March 31, 2024?

Virtus Investment Partners reported preliminary assets under management of $179.3 billion as of March 31, 2024.

What factors contributed to the increase in assets under management for Virtus Investment Partners (VRTS)?

The increase in assets under management for Virtus Investment Partners was primarily due to market performance and net inflows in retail separate accounts.

What types of accounts experienced net outflows for Virtus Investment Partners (VRTS) according to the PR?

Institutional accounts and open-end funds experienced net outflows for Virtus Investment Partners according to the press release.

What are the asset classes included in Virtus Investment Partners' (VRTS) assets under management?

The asset classes included in Virtus Investment Partners' assets under management are equity, fixed income, multi-asset, and alternatives.