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Jun 30, 2020
Virtus Q2 2020 Earnings Report
Virtus reported an increase in operating income and total AUM due to positive net flows and market appreciation, while revenues decreased due to lower average assets under management.
Key Takeaways
Virtus Investment Partners reported Q2 2020 results with diluted EPS of $1.43 and adjusted diluted EPS of $3.24. The company saw an increase in total sales and net flows, with long-term AUM reaching $107.1 billion and total AUM at $108.5 billion.
Diluted earnings per share were $1.43, while adjusted diluted earnings per share reached $3.24.
Total sales amounted to $9.1 billion, with net flows of $2.5 billion.
Long-term assets under management totaled $107.1 billion.
Total assets under management reached $108.5 billion.
Revenue by Segment
Forward Guidance
The company entered into a strategic partnership agreement with Allianz Global Investors (AllianzGI) whereby Virtus would become the investment adviser, distributor, and/or administrator of AllianzGI’s approximately $24 billion in open-end, closed-end, and retail separate account assets. The agreement is subject to the approval of the AllianzGI U.S. Funds Board and fund shareholders and is expected to close near year-end 2020.
Positive Outlook
- Virtus will become the investment adviser, distributor, and/or administrator of AllianzGI’s assets.
- The partnership is structured with an alignment of economic interests over time.
- The agreement involves approximately $24 billion in assets.
- No payments are required at closing.
- The deal is expected to close near year-end 2020.
Challenges Ahead
- The agreement is subject to the approval of the AllianzGI U.S. Funds Board.
- The agreement is subject to fund shareholders approval.
- Closing is not guaranteed and is subject to customary conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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