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Virtus Investment (VRTS) August AUM Down on Unfavorable Markets

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Virtus Investment Partners, Inc. (VRTS - Free Report) recorded a sequential decrease in its preliminary assets under management (AUM) balance for August 2023 on the back of unfavorable market returns. The company reported month-end AUM of $169.4 billion, which reflected a fall of 1.5% from the Jul 31 level.

Excluded from the above-mentioned AUM balance, other fee-earning assets were $2.6 billion, to which Virtus Investment provided services.

In August end, Virtus Investment’s open-end funds balance was $56.6 billion, which decreased 2.1% from the end of the previous month. Also, the closed-end funds balance decreased 3.7% to $9.9 billion.

Further, the Institutional accounts balance fell 1.2% to $62.5 billion. Retail separate accounts balance of $40.3 billion decreased marginally from the prior month.

Higher operating costs are expected to weigh on Virtus Investment's bottom line to an extent in the near term. However, its integrated multi-boutique business model in an rapidly growing industry is likely to support its performance.

Over the past three months, shares of Virtus Investment have declined 4.7% against the 3.7% upside of the industry it belongs to.

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Currently, Virtus Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Cohen & Steers, Inc. (CNS - Free Report) reported an AUM of $80 billion as of Aug 31, 2023, which reflected a decline of 2.8% from the prior-month level. Market depreciation of $2.2 billion and distributions of $157 million were partly offset by net inflows of $12 million.

CNS recorded total institutional accounts of $33.5 billion at the end of August 2023, declining 2.7% from the July-end level. Of the total institutional accounts, advisory accounts were $19 billion while the rest were sub-advisory.

Invesco (IVZ - Free Report) announced AUM for August 2023. The company’s month-end AUM of $1,527.7 billion reflected a decline of 2.7% from the previous month.

IVZ’s net long-term flows were break-even in the reported month. Non-management fee-earning net outflows were $4.8 billion, whereas money market net outflows were $9.4 billion. Unfavorable market returns decreased AUM by $23 billion and foreign exchange decreased AUM by $5.4 billion.

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