Virtus Investment Partners : Fourth Quarter 2024 Presentation & Financial Supplement
VRTS
FOURTH QUARTER EARNINGS PRESENTATION
January 31, 2025
George R. Aylward
President and Chief Executive Officer
Michael A. Angerthal
Executive Vice President and Chief Financial Officer
IMPORTANT DISCLOSURES
This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms.
Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this presentation only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.
Our business and our forward- looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2023 Annual Report on Form 10- K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) any reduction in our assets under management; (ii) inability to achieve expected benefits of strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) inability to attract and retain key personnel; (vii) challenges from competition; (viii) adverse developments related to unaffiliated subadvisers; (ix) negative changes in key distribution relationships; (x) interruptions, breaches, or failures of technology systems; (xi) loss on our investments; (xii) lack of sufficient capital on satisfactory terms; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or limitations; (xvii) inability to make common stock dividend payments; (xviii) impediments from certain corporate governance provisions; (xix) losses or costs not covered by insurance; (xx) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2023 Annual Report on Form 10-K and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.
Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company's periodic reports filed with the SEC and are available on our website at www.virtus.com under "Investor Relations." You are urged to carefully consider all such factors.
The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this presentation, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or impact any of the forward-looking statements contained in or accompanying this presentation, such statements or disclosures will be deemed to modify or supersede such statements in this presentation.
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AGENDA
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OVERVIEW OF QUARTER
FOURTH QUARTER 2024
OVERVIEW
Assets and Flows
Non-GAAP Financial Results
Capital Activities and Balance Sheet
All comparisons to prior quarter unless otherwise noted
See the financial supplement for U.S. GAAP to Non-GAAP ("as adjusted") reconciliations and related notes
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RESULTS
ASSETS UNDER MANAGEMENT
BROADLY DIVERSIFIED
Institutional Accounts
Closed-End Funds
U.S. Retail Funds
Retail Separate Accounts
Global Funds, ETFs, and Variable Insurance Funds
credit quality, and domicile
AUM by Asset Class
■ Non-U.S. clients represented 18% of
Equity
56.1%
57.7%
57.2%
58.1%
57.6%
AUM
Fixed Income
- Non-U.S. organic growth for full year 2024;
21.6%
20.7%
21.3%
21.2%
21.5%
third consecutive year
Multi-Asset1
12.5%
12.2%
12.1%
11.8%
12.1%
Alternatives2
9.8%
9.4%
9.4%
8.9%
8.8%
$ in billions
All comparisons to prior quarter unless otherwise noted
1
Consists of multi-asset offerings not included in equity, fixed income, and alternatives
2
Consists of managed futures, event-driven, real estate securities, infrastructure, long/short, and other strategies
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ASSET FLOWS
IMPACTED BY LARGE LOWER FEE REDEMPTION
$3.3B partial redemption
($11.3)
Metrics
Net Flows
($3.8)
($1.2)
($2.6)
($1.7)
($4.8)
($7.2)
($10.4)
Net Flow Rate1
(9.3%)
(2.9%)
(5.9%)
(4.0%)
(10.5%)
(4.8%)
(6.1%)
$ in billions
All comparisons to prior quarter unless otherwise noted
1 Annualized net flows divided by beginning-of-period total AUM
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INVESTMENT MANAGEMENT FEES, AS ADJUSTED
STABLE FEE RATE AND HIGHER AVERAGE ASSETS
Metrics
Revenues, as adjusted
$193.4
$200.2
$203.0
$205.1
$212.0
$758.3
$820.4
Fee Rate1 - BPS
42.6
41.9
42.2
41.9
42.0
42.2
42.0
Average AUM
$162.7
$173.4
$175.2
$176.0
$182.1
$161.5
$176.7
$ in millions, except AUM, which is in billions
All comparisons to prior quarter unless otherwise noted
1 Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude those of consolidated investment products and are reduced by revenue-related adjustments on specific agreements to reflect the portion passed through to third-party client intermediaries
See the financial supplement for U.S. GAAP to Non-GAAP ("as adjusted") reconciliations and related notes
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EMPLOYMENT EXPENSES, AS ADJUSTED
LOWER AS A PERCENTAGE OF REVENUES
50.0%
49.2%
51.4%
51.4%
$ in millions
All comparisons to prior quarter unless otherwise noted
See the financial supplement for U.S. GAAP to Non-GAAP ("as adjusted") reconciliations and related notes
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Disclaimer
Virtus Investment Partners Inc. published this content on January 31, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 31, 2025 at 12:08:03.892.