HARTFORD, Conn. - Virtus Investment Partners, Inc. (NYSE:VRTS), a distinguished partnership of boutique investment managers, has announced a rise in its assets under management (AUM) to $180.5 billion as of August 31, 2024. This figure marks an increase from $178.1 billion reported on July 31, 2024, attributed primarily to market performance and net inflows in retail separate accounts, though tempered by outflows in institutional accounts and open-end funds.
The company's preliminary average AUM for August stood at $175.6 billion. By product type, open-end funds saw a modest increase from $56.8 billion to $57.2 billion. Closed-end funds experienced growth from $10.2 billion to $10.4 billion, and retail separate accounts rose from $48 billion to $49 billion. Institutional accounts also saw an uptick from $63.1 billion to $63.8 billion.
In terms of asset classes, equity assets increased from $102.9 billion to $104.8 billion, and fixed income assets grew from $37.4 billion to $38.1 billion. Multi-asset and alternative asset classes saw slight changes, with multi-asset AUM slightly decreasing from $21.4 billion to $21.3 billion, and alternatives dipping from $16.5 billion to $16.3 billion.
Virtus Investment Partners is known for providing a variety of investment management products and services through its affiliated managers, each with unique investment styles and autonomous processes. The firm offers solutions across multiple disciplines and product types to accommodate a broad range of investor needs.
This reported financial information is based on a press release statement from Virtus Investment Partners and reflects the company's financial position as of the end of August 2024. The data presented in this report is unaudited and subject to change.
In other recent news, Virtus Investment Partners has shown strong financial performance with an increase in earnings per share to $6.53 and an improved operating margin of 32.5%. Despite a decrease in total assets to $174 billion due to market performance and net outflows, the firm reported significant growth in their ETF platform, which now manages over $2 billion in assets.
Further, Virtus has been actively pursuing growth through mergers and acquisitions, particularly in private markets. The company has also focused on expanding its offerings in ETFs, Retail Separate Accounts, and Global Funds.
In terms of analyst ratings, Piper Sandler maintained its Overweight rating on Virtus Investment Partners with a steady price target of $264, citing the company's stable financial outlook. In contrast, Barclays (LON:BARC) initiated coverage on Virtus shares with an Underweight rating and a price target of $206, noting the firm's limited exposure to high-growth sectors and limited capacity for stock buybacks.
In addition to these developments, Virtus announced an 18% increase in its quarterly common stock cash dividend, marking the seventh consecutive year of dividend growth. This indicates the firm's solid financial foundation and consistent generation of free cash flow. These are among the recent developments for Virtus Investment Partners.
InvestingPro Insights
Virtus Investment Partners (NYSE:VRTS) has demonstrated a resilient financial performance, with a notable increase in assets under management (AUM) as of August 31, 2024. Delving deeper into the company's financial health through InvestingPro's real-time data, we observe a market capitalization of $1.38 billion, reflecting the market's valuation of the firm. The company's price-to-earnings (P/E) ratio, which is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share, stands at a reasonable 12.85. Adjusted for the last twelve months as of Q2 2024, the P/E ratio shows even more favorable conditions at 12.12.
InvestingPro Tips highlight that Virtus Investment Partners has not only raised its dividend for 7 consecutive years but has also maintained dividend payments for 11 consecutive years. This consistent dividend track record is a testament to the company's commitment to shareholder returns, and it is supported by the fact that its liquid assets exceed short-term obligations, suggesting a solid liquidity position. Moreover, analysts are optimistic about the company's prospects, predicting profitability for the current year, which is corroborated by the company's profitability over the last twelve months.
Investors seeking additional insights will find a wealth of information on InvestingPro, including more InvestingPro Tips for Virtus Investment Partners. As of now, there are a total of 5 additional tips available on the platform, offering a more comprehensive understanding of the company's financial standing and future outlook.
It is also worth noting that the company's revenue growth for the last twelve months as of Q2 2024 was 7.35%, indicating a healthy expansion in its operations. This growth narrative aligns with the company's reported rise in AUM, suggesting that Virtus Investment Partners is effectively translating revenue growth into asset growth, an encouraging sign for investors and stakeholders alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.