Q4 2024 Virtus Investment Partners Inc Earnings Call Transcript
Key Points
- Virtus Investment Partners Inc (VRTS) reported strong financial and operating performance in the fourth quarter, with an operating margin at its highest level in 2.5 years.
- The company saw positive net flows in focus areas such as ETFs, global funds, and retail separate accounts, indicating growth in these segments.
- Virtus Investment Partners Inc (VRTS) introduced new products, including a new ETF from Sykes, and has several others in development, showcasing ongoing innovation.
- The company ended the year in a net cash position with significant financial flexibility, allowing for continued capital returns through share repurchases and dividends.
- Earnings per share as adjusted increased by 8% in the third quarter, reaching the highest level since the first quarter of 2022, and grew 20% for the full year.
- Total assets under management decreased sequentially from $183.7 billion to $175 billion due to net outflows and negative market performance.
- The company experienced total net outflows of $4.8 billion, largely due to a $3.3 billion partial institutional redemption.
- Open-end fund net outflows of $1.1 billion were essentially unchanged sequentially, consistent with market trends.
- Institutional net outflows of $3.8 billion were primarily due to a lower fee partial redemption, indicating challenges in retaining institutional clients.
- Despite positive flows in certain areas, the overall sales of $6.4 billion were down modestly from $6.6 billion in the prior quarter.
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 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 fourth 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. Certain
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