NEW YORK and HARTFORD,
Conn., July 7, 2020
/PRNewswire/ -- Allianz Global Investors (AllianzGI), a leading
global active asset manager, and Virtus Investment Partners,
Inc. (NASDAQ: VRTS), which operates a multi-boutique asset
management business, today announced they have agreed to a
strategic partnership that will focus on enhancing both firms'
growth opportunities with Virtus representing AllianzGI's
compelling investment strategies in the U.S. retail market to
existing and potentially new clients.
Central to the partnership, Virtus will become the investment
adviser, distributor and/or administrator of AllianzGI's
approximately $23 billion in
open-end, closed-end and retail separate account
assets1. AllianzGI teams will continue to manage the
strategies in a subadvisory capacity, providing continuity for
AllianzGI's U.S. retail clients. AllianzGI's Dallas-based Value Equity team, formerly known
as NFJ Investment Group, which manages approximately $7 billion of the assets, will join Virtus as an
affiliated manager. The partnership also provides for future joint
product development of investment solutions for retail clients in
The partnership will enhance Virtus' offerings, giving it access
to AllianzGI's deep, global investment expertise while expanding
AllianzGI's access and presence in the U.S retail markets.
AllianzGI will concentrate its U.S. distribution efforts on
building its institutional, insurance-related and non-resident
businesses while continuing to serve U.S. retail clients as a
"This new partnership with AllianzGI is strategically meaningful
for us in terms of scale, fit and growth potential," said
George R. Aylward, president and
chief executive officer of Virtus. "We look forward to bringing
AllianzGI's multi-asset, thematic equity, and alternative
strategies to our fund and separate account offerings, and the
opportunity to partner on joint product development underscores the
growth-oriented nature of the alliance."
"This partnership is truly complementary," said Tobias C. Pross, chief executive officer of
AllianzGI. "Combining AllianzGI's ongoing portfolio management
expertise with Virtus' strong, focused retail distribution and
administrative capabilities is a recipe for mutually beneficial
growth in U.S. funds and separate accounts. It will allow us to
focus our U.S. distribution efforts on the Institutional,
Insurance, Sub-Advisory and Non-Resident markets, which are more
closely aligned with our strengths in other markets."
Based on current asset levels, the partnership would increase
Virtus' mutual fund assets under management by approximately 40% to
$54 billion and its total AUM to
The companies did not disclose specific terms of the agreement
other than there are no payments at closing. The partnership was
structured with an alignment of economic interests over
time. The fund-related aspects of the relationship are subject
to the approval of the AllianzGI U.S. Funds Board and fund
shareholders and are expected to be completed near year-end.
AllianzGI was advised by Warren Enskat Group and Paul Hastings
LLP. Virtus was advised by Morgan
Lewis & Bockius LLP.
About Allianz Global Investors
Allianz Global Investors is a leading active asset manager with
over 780 investment professionals in 25 offices worldwide and
managing more than $590 billion in
assets for individuals, families and institutions1.
Active is the most important word in our vocabulary. Active is
how we create and share value with clients. We believe in solving,
not selling, and in adding value beyond pure economic gain. We
invest for the long term, employing our innovative investment
expertise and global resources. Our goal is to ensure a superior
experience for our clients, wherever they are based and whatever
their investment needs.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors.
The company provides investment management products and services
through its affiliated managers and select subadvisers, each with a
distinct investment style, autonomous investment process, and
individual brand. Virtus Investment Partners offers access to a
variety of investment styles across multiple disciplines to meet a
wide array of investor needs. Its affiliates include Ceredex Value
Advisors, Duff & Phelps Investment Management, Kayne Anderson
Rudnick Investment Management, Newfleet Asset Management, Rampart
Investment Management, Seix Investment Advisors, Silvant Capital
Management, Sustainable Growth Advisers, and Virtus ETF Solutions.
Additional information is available at virtus.com.
Forward-Looking Information Concerning Virtus Investment
This press release contains statements that are, or may be
considered to be, forward-looking statements. All statements that
are not historical facts, including statements about our beliefs or
expectations, are "forward-looking statements" within the meaning
of The Private Securities Litigation Reform Act of 1995, as
amended. These statements may be identified by such forward-looking
terminology as "expect," "estimate," "intent," "plan," "intend,"
"believe," "anticipate," "may," "will," "should," "could,"
"continue," "project," "opportunity," "predict," "would,"
"potential," "future," "forecast," "guarantee," "assume," "likely,"
"target" or similar statements or variations of such terms.
Our forward-looking statements are based on a series of
expectations, assumptions and projections about the company and the
markets in which we operate, are not guarantees of future results
or performance, and involve substantial risks and uncertainty
including assumptions and projections concerning our assets under
management, net asset inflows and outflows, operating cash flows,
business plans and ability to borrow, for all future periods. All
forward-looking statements are as of the date of this release only.
The company can give no assurance that such expectations or
forward-looking statements will prove to be correct. Actual results
may differ materially.
Our business and our forward-looking statements involve
substantial known and unknown risks and uncertainties, including
those discussed under "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
our 2019 Annual Report on Form 10-K, as well as the following risks
and uncertainties resulting from: (i) the on-going effects of the
COVID-19 pandemic and associated global economic disruption (ii)
general domestic and global economic, political and pandemic
conditions; (iii) any reduction in our assets under management;
(iv) withdrawal, renegotiation or termination of investment
advisory agreements; (v) damage to our reputation; (vi) failure to
comply with investment guidelines or other contractual
requirements; (vii) inability to satisfy financial covenants and
payments related to our indebtedness; (viii) inability to attract
and retain key personnel; (ix) challenges from the competition we
face in our business; (x) adverse regulatory and legal
developments; (xi) unfavorable changes in tax laws or limitations;
(xii) adverse developments related to unaffiliated subadvisers;
(xiii) negative implications of changes in key distribution
relationships; (xiv) interruptions in or failure to provide
critical technological service by us or third parties; (xv)
volatility associated with our common stock; (xvi) adverse civil
litigation and government investigations or proceedings; (xvii)
risk of loss on our investments; (xviii) inability to make
quarterly common stock dividends; (xix) lack of sufficient capital
on satisfactory terms; (xx) losses or costs not covered by
insurance; (xxi) impairment of goodwill or intangible assets;
(xxii) inability to achieve expected acquisition-related benefits;
and other risks and uncertainties. Any occurrence of, or any
material adverse change in, one or more risk factors or risks and
uncertainties referred to above, in our 2019 Annual Report on Form
10-K and our other periodic reports filed with the Securities and
Exchange Commission (the "SEC") could materially and adversely
affect our operations, financial results, cash flows, prospects and
Certain other factors that may impact our continuing operations,
prospects, financial results and liquidity, or that may cause
actual results to differ from such forward-looking statements, are
discussed or included in the company's periodic reports filed with
the SEC and are available on our website at www.virtus.com under
"Investor Relations." You are urged to carefully consider all such
The company does not undertake or plan to update or revise any
such forward-looking statements to reflect actual results, changes
in plans, assumptions, estimates or projections, or other
circumstances occurring after the date of this release, even if
such results, changes or circumstances make it clear that any
forward-looking information will not be realized. If there are any
future public statements or disclosures by us that modify or affect
any of the forward-looking statements contained in or accompanying
this release, such statements or disclosures will be deemed to
modify or supersede such statements in this release.
1 As of May 31,
2 Pro forma, using AUM as of May 31, 2020
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SOURCE Virtus Investment Partners, Inc.; Allianz Global