Q3 2024 Virtus Investment Partners Inc Earnings Call Transcript
Key Points
- Virtus Investment Partners Inc (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 (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.
Good morning. My name is Dee Dee, and I will be your conference operator today. I would like to welcome everyone to the Virtus Investment Partners' quarterly conference call. The slide presentation for this call is available in the Investor Relations section of the Virtus website, www.virtus.com. This call is being recorded and will be available for replay on the Virtus website.
(Operator Instructions) I will now turn the conference to your host, Sean Rourke.
Thank you, Dee Dee, and good morning, everyone. On behalf of Virtus Investment Partners, I'd like to welcome you to the discussion of our operating and financial results for the third quarter of 2024. Our speakers today are George Aylward, President and CEO; and Mike Angerthal, Chief Financial Officer. Following their prepared remarks, we will have a Q&A period.
Before we begin, please note the disclosures on page 2 of the slide presentation
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