VIRTUS INVESTMENT PARTNERS, INC. Q4 FY2024 earnings call

• New Product Introductions: Actively launched ETFs (e.g., Sykes ETF in Dec, 20 ETFs total), 4 global funds, and developed SMA offerings across asset classes.
• Financial Results: Total AUM $175B, sales $6.4B in Q4, full-year sales $26.8B (+3%). Operating margin 35.1% (highest in 2.5 years). EPS adjusted $7.50, up 8% QoQ, 20% full-year.
• Capital and Balance Sheet: Ended year with net cash position $30M, repurchased shares, raised dividend 18%.

Total assets under management were $175 billion at Dec 31, down from $183.7 billion due to net outflows. Sales were $6.4 billion in Q4 vs $6.6 billion in Q3. For institutional, net outflows of $3.8 billion due to a $3.3 billion partial redemption, excluding which net outflows were $0.5 billion. Retail separate accounts had positive net flows of $0.1 billion, 4% organic growth. Open-end funds had net outflows of $1.1 billion. ETFs had $0.4 billion positive net flows, doubling in size over past year with $0.5 billion sales in Q4. Global funds had $0.1 billion positive net flows, up 40% from prior year.

• January Trends: U.S. retail funds similar to Q4, ETFs running ahead of Q4 average. Institutional redemptions in Q1 modestly exceed wins.
• Fee Rate: Anticipate 41-42 basis points, with performance fees adding 3-5 million. Employment expenses 49-51% of revenues. Other operating expenses $30-32 million quarterly.

• Market and economic uncertainties may cause actual results to differ materially from forward-looking statements.

Q: Ben Budish asks about year outlook, use of capital, M&A pipeline.

A: George talks about diversified offerings, fixed income flows, capital flexibility, M&A evaluation.

Q: Crispin Love asks about January flows, institutional redemption.

A: George says retail funds similar, ETFs ahead, institutional partial redemption as isolated.

Q: Bradley Hays asks about tax reporting, M&A.

A: George talks about tax shield transparency, M&A activity, transaction types.

Q: Mike Cyprys asks about M&A activity, technology investment.

A: George talks about M&A activity, technology use in investment engines.