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Total Assets Under Management (AUM): Increased 6% to $183.7 billion.
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Net Outflows: Improved to $1.7 billion from $2.6 billion in the prior quarter.
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Operating Margin: 34.4%, up from 32.5% in the previous quarter.
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Earnings Per Share (Adjusted): $6.92, a 6% increase from the second quarter.
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Share Buyback: Increased to $15 million.
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Quarterly Dividend: Raised for the seventh consecutive year.
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Net Debt Position: 0.1 times EBITDA.
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Institutional Net Outflows: $1.1 billion, improved from $1.7 billion sequentially.
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Retail Separate Accounts Net Flows: Positive $0.4 billion.
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Investment Management Fees (Adjusted): $185.5 million, a 1% increase.
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Employment Expenses (Adjusted): $102.5 million, decreased 1% sequentially.
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Other Operating Expenses (Adjusted): $29.8 million, down 5% sequentially.
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Net Income (Adjusted): $6.92 per diluted share, up from $6.53 in the second quarter.
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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.
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Virtus Investment Partners Inc (NYSE:VRTS) reported strong operating and financial performance in the third quarter, with higher sequential sales across all products.
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The company achieved positive net flows in retail separate accounts, ETFs, and global funds, reflecting a favorable market environment.
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Investment performance was strong, with 62% of assets outperforming peers in the third quarter, and 82% of equity assets outperforming peers.
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The operating margin reached its highest level in two years at 34.4%, benefiting from higher revenues and disciplined expense management.
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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.
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Despite improvements, the company experienced overall net outflows of $1.7 billion in the quarter.
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Institutional net outflows were $1.1 billion, driven by redemptions of lower fee mandates.
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Open-end fund net outflows were $1 billion, although improved from the previous quarter.
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The company faces challenges in the open-end fund industry, particularly on the active side.
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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.