Virtus Investment (VRTS) Rises 2.3% Despite a Fall in May AUM
Virtus Investment Partners, Inc. VRTS gained 2.3% this week, following the release of its preliminary assets under management (AUM) balance for May 2023. The company reported a month-end AUM of $160.9 billion, which reflected a marginal decline from Apr 30.
Excluded from the above-mentioned AUM balance are $2.6 billion of other fee-earning assets, to which Virtus Investment provided services.
At May end, Virtus Investment’s open-end funds balance decreased 2% from the end of the previous month to $55 billion. Retail separate accounts’ balances of $36.6 billion decreased 1.8% from the prior month. Also, the closed-end funds’ balance decreased 4.2% to around $10 billion.
Nonetheless, institutional accounts’ balance rose 1.6% to $59.3 billion.
Elevated operating expenses are expected to hurt Virtus Investment’s bottom line to an extent in the near term. Nonetheless, its integrated multi-boutique business model in a rapidly growing industry is likely to support its performance.
Shares of VRTS have gained 14.4% over the past six months compared with the industry's 1.6% rise.
Image Source: Zacks Investment Research
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
Franklin Resources, Inc. BEN reported a preliminary AUM balance of $1,404.2 billion for May 2023, reflecting a 1.2% decrease from $1,420.7 billion recorded as of Apr 30.
The decline in BEN's AUM balance was primarily due to the impact of weaker markets and slight long-term net outflows.
Invesco IVZ announced preliminary AUM for May 2023. The company’s month-end AUM of $1,487.6 billion represented a marginal increase from the previous month.
IVZ's AUM balance was not materially impacted by market returns. Money market net inflows were $9.1 billion and non-management fee-earning net inflows stood at $2.3 billion in May. The company experienced net long-term outflows of $2.2 billion. Owing to foreign exchange rate movements, AUM decreased $6.2 billion.
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