The following is a summary of the Virtus Investment Partners, Inc. (VRTS) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Total assets under management decreased to $174 billion, a decline of 3% attributed to market performance and net outflows, but increased 3% compared to the prior-year period.

• Earnings per share as adjusted increased by 20% over the comparable prior year period.

• Operating margin improved sequentially from 28.2% to 32.5% due to higher average AUM levels and the absence of prior quarter seasonal expenses.

Business Progress:

• Significant growth in ETF platform, achieving $2 billion in assets under management with consistent positive net flows.

• Retail Separate Accounts and Global Funds showed sustained growth and are considered primary drivers for future expansions.

• Introduction of new funds and products including solutions-oriented products and ETFs, demonstrating an ongoing focus on growth in strategic key areas.

Opportunities:

• The ETF platform reached a milestone surpassing $2 billion in assets under management with 45% organic growth indicating expanding client interest which presents future growth opportunities.

• Continued positive net flows in ETFs, Global Funds, and Retail Separate Accounts showing demand and potential in these areas.

Risks:

• Net outflows concentrated in the month of April, predominantly from larger outflows in Retail Funds, indicative of client rebalancing which could signal volatility in investor behavior.

• The dependency on favorable market conditions and investor demand in deriving profitability and asset management growth.

More details: Virtus Investment IR

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