Financial Data and Key Metrics Changes - Assets under management (AUM) decreased to $159 billion from $169 billion due to net outflows and market performance [6][14] - Total sales were $5.3 billion, down from $6.3 billion in the previous quarter [6][15] - Net outflows totaled $8.1 billion, significantly higher than $3.9 billion in the prior quarter [7][16] - Earnings per share (EPS) adjusted was $6.50, a decline from $6.69 in the previous quarter [9][21] - Operating margin decreased to 32.4% from 33% in the prior quarter [9][20] Business Line Data and Key Metrics Changes - Equity net outflows were primarily driven by quality-oriented strategies, with institutional net outflows of $3 billion [7][16] - Fixed income net flows were modestly negative at $0.1 billion, but certain strategies saw positive flows [7] - ETFs generated $0.6 billion of positive net flows, continuing strong momentum [16] Market Data and Key Metrics Changes - The market environment favored momentum-driven stocks, leading to underperformance in quality-oriented equity strategies [3] - January sales showed improvement, reaching the highest level since June, indicating a potential shift in investor sentiment [8] Company Strategy and Development Direction - The company is focusing on broadening product offerings, including the introduction of new actively managed ETFs and expansion into private markets [4][5] - The acquisition of Keystone National Group aims to enhance private market offerings and provide differentiated strategies [12][13] - The company is also exploring opportunities for growth in non-U.S. markets and other distribution channels [29][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented equity strategies but expressed confidence in their long-term performance [3][10] - There are encouraging signs of broadening investor sentiment, with hopes for a recovery in quality strategies [8][41] - The company remains committed to balancing capital priorities, including investments in the business and returning capital to shareholders [11][54] Other Important Information - The company repurchased approximately 60,000 shares for $10 million in the quarter, totaling $60 million for the year [11][22] - The effective tax rate was 25.3%, expected to decrease to 23%-24% with the addition of Keystone [21] Q&A Session Summary Question: Can you elaborate on the fee rate compression in the quarter? - The fee rate was impacted by discrete expenses, particularly on the ETF side, but remained relatively stable [25][26] Question: What are the future transaction opportunities for diversification? - The company is considering both private markets and growth equity strategies for future transactions [28][29] Question: What is the software exposure across AUM? - The company is generally underweight in technology, which has affected the performance of quality-oriented equities [38][39] Question: What drove the acceleration in negative flows quarter to quarter? - The underperformance of quality-oriented strategies and seasonal tax loss harvesting contributed to increased outflows [40][41] Question: Can you discuss the growth opportunities with the Keystone transaction? - There is significant potential to leverage Keystone's capabilities in wealth management and institutional channels [48][50] Question: How will capital deployment priorities shift with recent transactions? - The company will maintain a balanced approach to capital allocation, emphasizing repurchases and dividends while considering new investments [52][54]

Financial Data and Key Metrics Changes - Assets under management (AUM) decreased to $159 billion from $169 billion due to net outflows and market performance [5][6] - Total sales were $5.3 billion, down from $6.3 billion in the previous quarter [5][15] - Net outflows totaled $8.1 billion, significantly higher than $3.9 billion in the prior quarter [6][16] - Earnings per share (EPS) declined to $6.50 from $6.69 in the previous quarter [9][20] - Operating margin decreased to 32.4% from 33% in the prior quarter [9][18] Business Line Data and Key Metrics Changes - Quality-oriented equity strategies, which represent half of AUM, faced increased net outflows due to market preference for momentum-driven stocks [3][6] - Fixed income strategies experienced modestly negative net flows of $0.1 billion, while certain fixed income strategies saw positive net flows [6][9] - ETFs generated $0.6 billion of positive net flows, continuing strong momentum with a 72% year-over-year increase in AUM [14][15] Market Data and Key Metrics Changes - The U.S. retail funds faced headwinds, but January sales were the highest since June, indicating a potential recovery in investor sentiment [8] - Institutional net outflows were primarily driven by redemptions in quality domestic and global large cap growth strategies [16] Company Strategy and Development Direction - The company is focusing on broadening its product offerings, including the introduction of new actively managed ETFs and expansion into private markets [4][5] - The acquisition of Keystone National Group aims to enhance private market offerings and provide differentiated strategies [12][13] - The company is also exploring opportunities for growth in non-U.S. markets and other distribution channels [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented equity strategies but expressed confidence in their long-term performance [3][10] - There are encouraging signs of broadening investor sentiment, with hopes for a recovery in quality-oriented strategies [8][41] - The company remains committed to maintaining financial flexibility while balancing capital priorities [10][11] Other Important Information - The company repurchased approximately 60,000 shares for $10 million in the quarter, totaling $60 million for the year [11][22] - The effective tax rate was 25.3%, expected to decrease to 23%-24% with the addition of Keystone [20][21] Q&A Session Summary Question: What was the driver of the fee rate compression in the quarter? - The fee rate was impacted by discrete expenses, particularly on the ETF side, but remained relatively stable [25][26] Question: Do you see future transactions as an avenue for additional diversification? - The company is focused on diversifying offerings and distribution channels, including potential M&A opportunities [28][29] Question: What is the software exposure across AUM? - The company is generally underweight in technology, which has affected the performance of some quality-oriented equities [36][37] Question: What drove the acceleration in negative flows quarter to quarter? - The underperformance of quality-oriented strategies and seasonal tax loss harvesting contributed to increased outflows [40][41] Question: Can you discuss the go-to-market opportunity with Keystone? - There is significant potential to leverage Keystone's existing capabilities in the wealth management channel and expand into institutional markets [47][49] Question: How might capital deployment priorities shift with recent transactions? - The company will maintain a balanced approach to capital allocation, emphasizing repurchases and dividends while considering strategic M&A opportunities [52][53]

Group 1: Economic Overview - The current job market is challenging, with recent data indicating a tough environment despite some positive productivity growth [3][4][7] - The economy is characterized by robust capital expenditures (capex) and consumption, primarily driven by wealthier older savers, which affects the effectiveness of interest rate tools [6][4] - The economy is more asset-oriented than labor-oriented, suggesting that it can continue to function despite a softening job market [7] Group 2: Impact of AI and Technology - AI is changing the nature of work, with implications for how education and skills are developed for future generations [10][11] - Companies that effectively exploit data and invest in capex are building stronger competitive advantages or "moats" against potential disruptions from AI [14][13] - The emergence of AI technologies is influencing market dynamics, particularly in sectors like financial analysis and legal services [8][10] Group 3: Investment Strategies - Recent adjustments in investment strategies include reducing exposure to credit and high-yield bonds while increasing allocations to mortgages [17] - The dollar is expected to remain stable, with favorable yield differentials between emerging markets and high-yield assets [18] - There is a strategic shift towards securitization markets, with a focus on incorporating more Asian assets into portfolios [19]

Core Insights - Virtus Investment Partners (VRTS) reported a revenue of $188.9 million for the quarter ended December 2025, reflecting a year-over-year decline of 10.9% [1] - The earnings per share (EPS) for the same period was $6.50, down from $7.50 a year ago, with a consensus EPS estimate of $6.41, resulting in a surprise of +1.35% [1] - The reported revenue fell short of the Zacks Consensus Estimate of $191.29 million, indicating a surprise of -1.25% [1] Financial Performance Metrics - Total Assets Under Management (AUM) stood at $159.49 billion, below the two-analyst average estimate of $162.72 billion [4] - Net flows were reported at $-8.1 billion, compared to the average estimate of $-7.44 billion based on two analysts [4] - Revenue from administration and shareholder service fees was $18.35 million, slightly below the average estimate of $18.43 million [4] - Revenue from other income and fees was $1.62 million, exceeding the two-analyst average estimate of $0.98 million [4] Stock Performance - Shares of Virtus have returned -11.9% over the past month, contrasting with the Zacks S&P 500 composite's -1.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

FOURTH QUARTER EARNINGS PRESENTATION February 6, 2026 George R. Aylward President and Chief Executive Officer Michael A. Angerthal Executive Vice President and Chief Financial Officer IMPORTANT DISCLOSURES This presentation 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 ...

Financial Data and Key Metrics Changes - 2025 was a record year for the company, with fee-related earnings (FRE) up 12% year-over-year, reaching a margin of 47% [5][17] - Total inflows amounted to $54 billion, significantly exceeding the original target of $40 billion, representing a 32% increase year-over-year [5][18] - Distributable earnings (DE) for 2025 were $1.7 billion, or $4.02 per share, an 11% increase from the previous year [16][19] - Total fee revenues reached a record $2.6 billion for the full year, reflecting a 10% organic growth rate [17] Business Line Data and Key Metrics Changes - Carlyle AlpInvest generated a record $274 million of FRE for the year, up nearly 60% [19][20] - Global Credit delivered a record $402 million of FRE for 2025, up 21% from the prior year [20][21] - Global Private Equity realized over $18 billion of proceeds in 2025, the highest level in the past three years [22] Market Data and Key Metrics Changes - The company was the number 1 private equity sponsor globally by IPO proceeds, generating approximately $10 billion of IPO issuance over the past two years [7][8] - The IPO of Medline raised more than $7 billion, marking it as the largest sponsor-backed IPO of all time [8][9] - CLO inflows of $7 billion in 2025 were up almost 20% from the prior year, with the company being the most active CLO manager for U.S. activity [11][20] Company Strategy and Development Direction - The company aims to continue building on its strategy of investment performance, disciplined capital allocation, and delivering long-term value for investors [14][23] - There is a strong focus on expanding the Global Wealth segment, with significant progress made in 2025 [12][14] - The company plans to host a shareholder update to share multi-year financial targets and insights into its strategic direction [15][23] Management's Comments on Operating Environment and Future Outlook - The macro environment in 2025 was resilient despite geopolitical concerns, with M&A and IPO activity accelerating [7][14] - Management expressed confidence in the economic engine, citing positive January data from their portfolio [29] - The company anticipates continued growth supported by a diversified fundraising pipeline and improving capital markets conditions [23] Other Important Information - The company returned a record $1.2 billion of capital to shareholders through dividends and share buybacks during 2025 [22] - The balance sheet remains strong, with $2 billion in cash and over $3 billion in investments [22] Q&A Session Summary Question: Sustainability of monetization momentum into 2026 - Management is optimistic about the economic engine and January data looks promising, but acknowledges market volatility [28][29] Question: State of play in direct lending and credit - Management feels well-positioned for growth in direct lending and has added key leaders to enhance origination [36][38] Question: Software exposure and CLO performance - The company has a low software exposure of 6% and CLO performance has been strong, with no expected impact from recent market volatility [40][60] Question: Capital raising and Fund 9 status - Management is confident in fundraising capabilities and will provide more insights in the upcoming shareholder update [56][57] Question: Outlook for CLOs in 2026 - The CLO market is expected to remain active, with the company well-positioned due to recent deal extensions [90] Question: Enhancements in credit originations - The company has built a strong origination team and achieved record originations in 2025, with plans for continued growth [95][96]

Core Viewpoint - Addentax Group Corp. has announced a proposed strategic acquisition of Riches Group's offshore wealth management and integrated cross-border service business, which is expected to enhance the company's global expansion strategy and contribute approximately HKD 300 million in annualized revenue if completed [1][2]. Group 1: Acquisition Details - The acquisition will provide access to Riches Group's diversified service ecosystem, including global wealth management, international education, immigration consulting, and cross-border healthcare services, which have historically generated monthly transaction volumes exceeding HKD 100 million [2]. - Riches Group's core business assets include a full suite of wealth management services, private banking, fund custody, global fixed-income products, and offshore/US dollar insurance [2]. - The acquisition will also encompass Riches Group's corporate and fiduciary services, supporting over 1,000 high-net-worth families and more than 10,000 households worldwide [2]. Group 2: Technological Integration - The proposed acquisition is expected to provide access to Riches Group's AI-enabled wealth advisory capabilities, enhancing data-driven asset allocation strategies and real-time risk assessments [3]. - Riches Group has developed proprietary algorithms that could improve the precision and efficiency of global wealth management services post-acquisition [3]. - The acquisition will also include access to regulated digital asset-related services, supporting compliant digital currency custody and investment solutions within Hong Kong's regulatory framework [3]. Group 3: Market Expansion - The acquisition aims to support the company's expansion in the global fintech sector, enhancing its presence in high-growth markets such as Southeast Asia, Europe, and North America [4]. - The integration of Riches Group's high-net-worth client base and strategic partnerships with over 100 international institutions is expected to strengthen the company's client network [4]. - The company anticipates benefiting from Riches Group's professional team of over 4,000 advisors and its AI and digital currency R&D capabilities, which could foster technological development and product innovation [4]. Group 4: Future Outlook - Following the acquisition, the company expects to leverage its Nasdaq-listed platform and Riches Group's operational capabilities to develop an integrated cross-border financial services platform [5]. - This combination is believed to enhance the company's ability to serve clients across multiple jurisdictions within the global financial technology sector [5]. - The CEO expressed excitement about the potential to accelerate expansion in the offshore financial market and create greater value for stakeholders if the acquisition is completed [6].

The Strategic Case for Private Credit in the Modern PortfolioETF Trends is now VettaFi. Read More --The term private credit is often reduced to its most literal meaning – lending money privately. While accurate, Chris Getter, managing director and portfolio manager at Simplify Asset Management, believes that definition does a disservice to the asset class. The real story is the influence on yields and returns. According to Getter, the private nature of these negotiated securities creates a yield profile tha ...

Core Insights - Active management in short-term bonds has historically delivered returns 25% higher than passive strategies, particularly in the context of geopolitical volatility and inflation concerns in 2026 [1] - The ICE/BAML Global 1-5 Year Investment Grade Index currently yields around 4.33%, suggesting potential annual returns exceeding 5% for actively managed strategies [1] - Active bond ETFs saw record inflows of $56 billion in January, with $27 billion going into active strategies, indicating a significant shift in investor preference towards active management [1] Active Management Advantages - Active managers can achieve superior returns through strategic sector selection and "roll-down" gains as bonds approach maturity [1] - The defensive quality of active management was highlighted in 2025, where the index returned 5.49% despite challenges faced by longer-term bonds [1] - Selectivity in investment is crucial in a volatile market, with active strategies avoiding sectors like auto companies and commercial real estate that are facing rising issues [1] ETF Market Dynamics - The structure of ETFs has evolved into the "default launch vehicle" for new strategies, with active ETF assets increasing from $255 billion in 2020 to $1.3 trillion today [1] - Credit-related bond ETFs attracted $11 billion in January, reflecting a preference for targeted exposure over broad index holdings [1] - If the current pace of active bond ETF inflows continues, total assets could exceed $2 trillion, indicating a long-term shift in investment strategy [1]

Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the po ...