Virtus Investment Partners Reports Preliminary September 30, 2024 Assets Under Management

Rhea-AI Summary

Virtus Investment Partners (NYSE: VRTS) reported preliminary assets under management (AUM) of $183.7 billion and other fee earning assets of $2.4 billion as of September 30, 2024. Total client assets reached $186.1 billion. The increase in AUM from June 30, 2024 was primarily due to market performance and positive net flows in retail separate accounts, partially offset by net outflows in institutional accounts and open-end funds.

Key AUM figures by product type as of September 30, 2024:

• Open-End Funds: $58.1 billion
• Closed-End Funds: $10.4 billion
• Retail Separate Accounts: $50.6 billion
• Institutional Accounts: $64.6 billion

AUM by asset class:

• Equity: $106.8 billion
• Fixed Income: $39.0 billion
• Multi-Asset: $21.6 billion
• Alternatives: $16.3 billion

The preliminary average AUM for the quarter was $176.0 billion.

Positive

• Total assets under management increased to $183.7 billion as of September 30, 2024, up from $173.6 billion on June 30, 2024
• Positive net flows in retail separate accounts contributed to AUM growth
• Market performance positively impacted AUM
• Retail Separate Accounts AUM grew to $50.6 billion from $45.7 billion in the previous quarter
• Equity AUM increased to $106.8 billion from $99.2 billion in the previous quarter

Negative

• Net outflows in institutional accounts and open-end funds partially offset AUM growth
• Alternatives AUM remained flat at $16.3 billion compared to the previous quarter

Insights

Financial Analyst

Virtus Investment Partners' latest AUM report shows positive momentum, with total AUM reaching $183.7 billion as of September 30, 2024, up from $173.6 billion at the end of Q2. This 5.8% quarter-over-quarter increase is primarily attributed to market performance and positive net flows in retail separate accounts.

Key observations:

• Retail separate accounts saw significant growth, increasing from $45.7 billion to $50.6 billion, a 10.7% jump.
• Open-end funds and institutional accounts also grew, but at a slower pace.
• Equity assets, the largest asset class, grew by 7.6% to $106.8 billion.
• Fixed income and multi-asset classes showed modest growth, while alternatives remained stable.

The growth in AUM is a positive indicator for Virtus' revenue potential, as higher AUM typically translates to increased management fees. However, the report also notes net outflows in institutional accounts and open-end funds, which could be a concern if the trend continues. The company's ability to attract and retain assets in a competitive market will be important for long-term growth.

Market Research Analyst

Virtus' AUM growth outpaced its market cap, which stands at $1.46 billion. This discrepancy suggests the market may not fully appreciate the company's recent performance. The 5.8% quarterly AUM increase, particularly in higher-margin retail separate accounts, could potentially lead to improved earnings in the coming quarters.

Industry context is important here:

• The S&P 500 gained about 3.7% in Q3 2024, indicating Virtus outperformed the broader market.
• The shift towards retail separate accounts aligns with industry trends favoring personalized investment solutions.
• The stability in alternatives ($16.3 billion) reflects ongoing investor interest in diversification strategies.

Virtus' diverse asset mix, with substantial equity exposure (58% of AUM), positions it well to benefit from market upswings. However, the company must address outflows in institutional accounts to ensure balanced growth across all segments. The upcoming earnings report will be critical in assessing whether this AUM growth translates into improved financial performance and market valuation.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Investment Partners, Inc. (NYSE: VRTS) today reported preliminary assets under management (AUM) of $183.7 billion and other fee earning assets of $2.4 billion for total client assets of $186.1 billion as of September 30, 2024. The increase in AUM from June 30, 2024 primarily reflects market performance and positive net flows in retail separate accounts, partially offset by net outflows in institutional accounts and open-end funds. Preliminary average AUM for the quarter was $176.0 billion.

Assets Under Management (unaudited)
($ in millions)
By Product Type:	September 30, 2024			August 31, 2024			June 30, 2024
Open-End Funds (1)	$	58,100		$	57,236		$	55,852
Closed-End Funds		10,432			10,435			9,915
Retail Separate Accounts (2)		50,610			48,993			45,672
Institutional Accounts (3)		64,600			63,816			62,146
Total Assets Under Management	$	183,742		$	180,480		$	173,585
By Asset Class:	September 30, 2024			August 31, 2024			June 30, 2024
Equity	$	106,784		$	104,778		$	99,224
Fixed Income		39,014			38,052			36,970
Multi-Asset (4)		21,619			21,319			21,060
Alternatives (5)		16,325			16,331			16,331
Total Assets Under Management	$	183,742		$	180,480		$	173,585

(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/20241010094729/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 September 30, 2024?

Virtus Investment Partners reported preliminary assets under management (AUM) of $183.7 billion as of September 30, 2024.

How much did Virtus Investment Partners' (VRTS) AUM increase from June 30, 2024 to September 30, 2024?

Virtus Investment Partners' AUM increased from $173.6 billion on June 30, 2024 to $183.7 billion on September 30, 2024, an increase of approximately $10.1 billion.

What factors contributed to the increase in Virtus Investment Partners' (VRTS) AUM in Q3 2024?

The increase in AUM was primarily due to market performance and positive net flows in retail separate accounts, partially offset by net outflows in institutional accounts and open-end funds.

What was the largest asset class in Virtus Investment Partners' (VRTS) AUM as of September 30, 2024?

The largest asset class in Virtus Investment Partners' AUM as of September 30, 2024 was Equity, with $106.8 billion under management.