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Virtus Investment's October AUM Balance Dips, Stock Down 1%

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Virtus Investment Partners, Inc. (VRTS - Free Report) shares lost 1% in response to the announcement of a fall in assets under management (AUM) for October 2024. The company reported a month-end AUM of $179.41 billion, down 2.4% from the Sept. 30, 2024, level. The decline seems to be due to unfavorable market performance.

The company offered services to $2.3 billion of other fee-earning assets. This was excluded from the above-mentioned AUM balance.

Virtus Investment’s Performance Breakdown by Product Type

In October, Virtus Investment’s open-end fund balance decreased 2.6% from the prior month to $56.6 billion. Also, the closed-end fund balance declined 1.3% to $10.3 billion.

Further, the Institutional accounts balance fell 3% to $62.7 billion. Retail separate accounts balance of $49.8 billion dipped 1.6% from the prior month.

Our Take on VRTS

The company’s integrated multi-boutique business model in a rapidly growing industry is likely to support its performance. Yet, elevated operating expenses are expected to hurt Virtus Investment’s bottom line in the near term.

Over the past six months, shares of Virtus Investment have risen 4.1%, significantly underperforming the 30.1% growth of the industry.
 

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

Competitive Landscape

Franklin Resources, Inc. (BEN - Free Report) reported a preliminary month-end AUM of $1.63 trillion as of Oct. 31, 2024. This marked a 2.9% decrease from the prior month.

The decline in BEN’s AUM balance reflected unfavorable market returns and long-term net outflows of $18.5 billion. The outflows included the previously disclosed $17.8 billion of long-term net outflows at Western Asset Management.

Invesco’s (IVZ - Free Report) has announced preliminary AUM for October 2024. The company’s month-end AUM of $1.77 trillion represented a 1.3% decline from the previous month.

IVZ reported net long-term inflows of $2 billion for October. Non-management fee-earning net outflows were $0.2 billion, and money market net outflows totaled $1.8 billion. Further, Invesco’s AUM was unfavorably impacted by weak market returns, which lowered its AUM by $13 billion. Also, FX hurt the AUM balance by $10.5 billion.


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