Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers
    • Specialised investment funds: What investors should know about SEBI’s ₹10 lakh rule
    • Japanese bonds log weekly foreign outflows on BOJ policy caution
    • NRI Mutual Fund Taxation: All You Need To Know About TDS And Importance Of Transaction Date In FY25 | Business News
    • US Exchanges Ask SEC to Consider Rule Change to Speed Up Crypto ETFs
    • GL Supports Next-Gen SIP Testing and Emulation
    • What Are Bonds? A Beginner’s Guide (2025)
    • Sip smarter this summer: Discover the ‘Magic of Moderate Drinking’ with these simple tips
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Investments»Virtus Investment Partners Inc (VRTS) Q3 2024 Earnings Call Highlights: Strong Performance …
    Investments

    Virtus Investment Partners Inc (VRTS) Q3 2024 Earnings Call Highlights: Strong Performance …

    October 26, 2024


    • Total Assets Under Management (AUM): Increased 6% to $183.7 billion.

    • Net Outflows: Improved to $1.7 billion from $2.6 billion in the prior quarter.

    • Operating Margin: 34.4%, up from 32.5% in the previous quarter.

    • Earnings Per Share (Adjusted): $6.92, a 6% increase from the second quarter.

    • Share Buyback: Increased to $15 million.

    • Quarterly Dividend: Raised for the seventh consecutive year.

    • Net Debt Position: 0.1 times EBITDA.

    • Institutional Net Outflows: $1.1 billion, improved from $1.7 billion sequentially.

    • Retail Separate Accounts Net Flows: Positive $0.4 billion.

    • Investment Management Fees (Adjusted): $185.5 million, a 1% increase.

    • Employment Expenses (Adjusted): $102.5 million, decreased 1% sequentially.

    • Other Operating Expenses (Adjusted): $29.8 million, down 5% sequentially.

    • Net Income (Adjusted): $6.92 per diluted share, up from $6.53 in the second quarter.

    • Cash and Equivalents: Increased to $195.5 million from $183 million at June 30.

    Release Date: October 25, 2024

    For the complete transcript of the earnings call, please refer to the full earnings call transcript.

    • Virtus Investment Partners Inc (NYSE:VRTS) reported strong operating and financial performance in the third quarter, with higher sequential sales across all products.

    • The company achieved positive net flows in retail separate accounts, ETFs, and global funds, reflecting a favorable market environment.

    • Investment performance was strong, with 62% of assets outperforming peers in the third quarter, and 82% of equity assets outperforming peers.

    • The operating margin reached its highest level in two years at 34.4%, benefiting from higher revenues and disciplined expense management.

    • Virtus Investment Partners Inc (NYSE:VRTS) increased its quarterly dividend for the seventh consecutive year and maintained a modest net debt position, providing significant financial flexibility.

    • Despite improvements, the company experienced overall net outflows of $1.7 billion in the quarter.

    • Institutional net outflows were $1.1 billion, driven by redemptions of lower fee mandates.

    • Open-end fund net outflows were $1 billion, although improved from the previous quarter.

    • The company faces challenges in the open-end fund industry, particularly on the active side.

    • Known redemptions for the fourth quarter currently exceed known wins, potentially impacting revenue neutrality.

    Q: Can you provide more detail on what you’re seeing in the fourth quarter regarding flows, especially after the high sales in September? A: George Aylward, President and CEO: The last two months of the year can be volatile due to tax considerations and the election cycle. In October, we continue to see positive flows in retail separate accounts, ETFs, and global funds. The ETF business is gaining traction as products reach a three-year performance mark. Fixed income strategies are performing well, and we expect this trend to continue, though the end of the year could bring volatility.

    Q: Adjusted other operating expenses came in below the prior guidance. Is the $30 million level sustainable for the next quarters? A: Michael Angerthal, CFO: The current level is appropriate for modeling purposes. We’ve managed to keep costs stable despite inflationary pressures by streamlining investment support systems and data feeds. We will update our outlook if there are changes in the future.

    Q: How are you approaching inorganic growth and M&A opportunities? A: George Aylward, President and CEO: We focus on organic growth in retail separate accounts, ETFs, and global funds. For M&A, we look to add capabilities not currently in our portfolio, particularly in less correlated markets like private markets. We aim to expand offerings to include private market opportunities.

    Q: What is your strategy for capital allocation, particularly regarding dividends and new product introductions? A: George Aylward, President and CEO: We continue to see opportunities for new products, especially in ETFs and global funds. Our capital allocation strategy includes consistent dividend increases, balanced with stock buybacks and other investments. We aim to maintain a steady growth in dividends as part of our strategy.

    Q: Can you elaborate on the institutional pipeline and the challenges in achieving positive flows? A: George Aylward, President and CEO: Institutional outflows are often due to reallocations rather than mandate terminations. We are focusing on meeting institutional clients’ needs as they adjust their asset allocations. Our pipeline remains strong across managers, strategies, and geographies, but it’s a competitive space.

    For the complete transcript of the earnings call, please refer to the full earnings call transcript.

    This article first appeared on GuruFocus.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Kraft Heinz Earnings: Unwavering Brand Investments Should Serve Up Gains in Time

    July 30, 2025

    Sumitomo Mitsui Banking Corporation, Temasek Holdings show interest investments in AP

    July 30, 2025

    Fidelity Investments® Releases 2025 Retiree Health Care Cost Estimate, a Timely Reminder for All Generations to Begin Planning

    July 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers

    July 30, 2025

    Qu’est-ce qu’un green bond ?

    December 7, 2017

    les cat’ bonds deviennent incontournables

    September 5, 2018

    ETF : définition et intérêt des trackers

    May 15, 2019
    Don't Miss
    Mutual Funds

    Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers

    July 30, 2025

    Growing investor trust, enhanced transparency and stronger investor protection have made retirement mutual funds an…

    Specialised investment funds: What investors should know about SEBI’s ₹10 lakh rule

    July 30, 2025

    Japanese bonds log weekly foreign outflows on BOJ policy caution

    July 30, 2025

    NRI Mutual Fund Taxation: All You Need To Know About TDS And Importance Of Transaction Date In FY25 | Business News

    July 30, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Ramify lance Valhyr Capital et X Fund

    June 10, 2025

    Blackstone-backed ASK Asset & Wealth Management gets SEBI approval for mutual fund business

    March 28, 2025

    Are Your Bonds Green, Social or Sustainable? And Climate Resilient Too?

    October 21, 2024
    Our Picks

    Retirement mutual funds’ AUM jumps 226% in 5 years: Here are the top 10 performers

    July 30, 2025

    Specialised investment funds: What investors should know about SEBI’s ₹10 lakh rule

    July 30, 2025

    Japanese bonds log weekly foreign outflows on BOJ policy caution

    July 30, 2025
    Most Popular

    ₹10,000 monthly SIP in this debt mutual fund has grown to over ₹70 lakh in 23 years

    June 13, 2025

    ₹1 lakh investment in these 2 ELSS mutual funds at launch would have grown to over ₹5 lakh. Check details

    April 25, 2025

    ZIG, BUZZ, NANC, and KRUZ

    October 11, 2024
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.