Virtus Q3 AUM Drops 7% to $141.4B; $7B Mandate Termination Looms
VRTS is trading near its 52-week low of $121.605 (7.2% above the low).
Summary
Virtus reported preliminary Q3 AUM of $141.4B, down 7% from June 30, driven by market performance and net outflows across retail separate accounts, institutional accounts, U.S. retail funds, and global funds. The decline was partially offset by inflows into ETFs and tender offer funds. Additionally, an institutional subadvisory mandate covering approximately $7.0B in assets will terminate in October, though the revenue impact is expected to be meaningfully smaller due to lower fees on that mandate. This follows Q2's 10.9% YoY AUM decline to $152.2B, indicating continued outflow pressure. The termination of a $7B mandate, even at lower fees, adds to the negative AUM trajectory and may pressure future revenue.
At the time of this announcement, VRTS was trading at $130.32 on NYSE in the Finance sector, with a market capitalization of approximately $864.3M. The 52-week trading range was $121.61 to $195.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.