Virtus Investment's (VRTS) April AUM Down 6.7% Sequentially

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Virtus Investment Partners, Inc. VRTS recorded a sequential decrease in its preliminary assets under management (“AUM”) balance for April 2022 due to unfavorable market returns. The total AUM of $170.9 billion reflects a 6.7% fall from $183.3 billion recorded on Mar 31, 2022.

Excluded from the above-mentioned AUM balance is $3.2 billion of other fee-earning assets to which Virtus Investment had provided services.

At April end, Virtus Investment’s Open-End Funds balance fell 8% from March end to $67.3 billion. Retail Separate Accounts balances of $38.3 billion decreased 6% from the prior-month figure.

Further, Institutional Accounts balance decreased by 6% to $53.8 billion from March end. Also, sequentially, Closed-End Funds balance dipped 5.5% to $11.4 billion.

Virtus Investment’s high operating expenses and unsustainable capital deployment activities are concerning. Further, the Russia-Ukraine conflict has led to negative sentiments in the market, resulting in volatility and unfavorable returns. Nonetheless, its integrated multi-boutique business model in a rapidly growing industry might support its performance.

Virtus Investment stock’s loss of 32.1% has underperformed the industry’s fall of 29.1% over the past year.

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Currently, Virtus Investment carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other asset managers, Invesco IVZ and T. Rowe Price TROW are expected to release preliminary AUM results for April in the coming days. Over the past year, shares of IVZ have lost 33% while the TROW stock has declined 33.5%.

At present, IVZ carries a Zacks Rank #5 (Strong Sell) while T. Rowe Price has a Zacks Rank of 3 (Hold).

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