Virtus Investment Partners, Inc. (NYSE:VRTS) reported on September 11 that preliminary ****** ets under management, or AUM, totaled $147.501 billion at August-end, compared with $148.874 billion at July-end. That represents a $1.373 billion decline, or approximately 0.9%.
Management identified net outflows in institutional accounts, retail separate accounts, U.S. retail funds and global funds, partly offset by positive flows into exchange-traded funds, or ETFs, and tender-offer funds.
Positive market performance partly offset net outflows. The $1.373 billion AUM decline therefore differs from net client withdrawals, which the announcement did not quantify. The underlying business question is whether products attracting new money can become large enough to stabilize the revenue base.
Virtus Investment Partners, Inc. (NYSE:VRTS) has identifiable sources of customer demand. Positive net flows into ETFs and tender-offer funds provide a route toward a more balanced product mix.
ETF demand also appeared in the second quarter, when these products attracted $0.3 billion of net inflows. August's positive flows suggest the opportunity extends beyond a single reporting period.

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