The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Crispin Love - Piper Sandler Companies - Analyst
: Thank you. Good morning, everyone. Just first off, broader markets for several quarters have been driven by the largest US stocks, especially in the
tech space as shown by just the S&P meaningfully outperforming the equal weight S&P year to date in the last year, et cetera.
But we've seen that some of that shift recently with the equal weight S&P actually outperforming. I know it's a recent shift here, but does this
dynamic change anything for you, what flows might look like, or new sales kind of in July relative to prior quarters? Or do you expect it to make
any differences over the near term?
Question: Crispin Love - Piper Sandler Companies - Analyst
: It does. I appreciate that, George. And then just one other for me. And I know institutional flows can be lumpy, but I'm curious, anything so far in
the third quarter that you expect over the course of the quarter that could drive flow trends specifically in institutional, if that's worth calling out.
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JULY 26, 2024 / 2:00PM, VRTS.N - Q2 2024 Virtus Investment Partners Inc Earnings Call
I think you mentioned some known wins over the next few quarters, but any way to kind of size that or time it? How you might expect it? And is it
looking more positive rather than negative as well? That's kind of the sense that I got from your comments, but curious if I'm thinking about that
correctly.
Question: Crispin Love - Piper Sandler Companies - Analyst
: Thank you. Appreciate the color, George and Mike.
Question: Bradley Hays - TD Cowen - Analyst
: Hi, good morning. It's Bradley Hays on for Bill Katz. Could you dig in a bit more on the M&A pipeline and perhaps give some color on what you're
seeing in the market in terms of both deal opportunities and the conversations you're having?
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JULY 26, 2024 / 2:00PM, VRTS.N - Q2 2024 Virtus Investment Partners Inc Earnings Call
Question: Bradley Hays - TD Cowen - Analyst
: Okay, great. Thank you. And then just following up on that, are there any particular verticals within liquid alts that you're looking at?
Question: Bradley Hays - TD Cowen - Analyst
: Okay, thank you. And then on fee rate and flows, you've pretty consistently maintained your fee rate within provided range. Could you maybe give
us some detail on how you're thinking about pricing versus attracting new flows?
Question: Bradley Hays - TD Cowen - Analyst
: Okay, thank you.
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great, thank you. Good morning. Just wanted to come back to your commentary on capital uses. I was hoping you could elaborate a bit on some
of these other product introductions that you were alluding to. How much would you anticipate allocating there, the seed book today? How do
you see that expanding, if at all? How are you thinking about recycling?
And then more broadly, if you could just talk a little bit about some of these opportunities that you see to introduce new products into the
marketplace. Where do you see some white space, and where might it make the most sense?
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Thank you for that. Maybe just to follow up on the capital return. I think it was about $12.5 million of buybacks in the quarter, debt pay down
around just under $6 million or so. Just curious how we should think about the cadence and pace of that over the next couple of quarters? Do you
think that this quarter is a good run rate? We do anticipate it accelerating as we look out from here or decelerating? How should we think about
the cadence and pace of buybacks and debt pay down? Thank you.
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Sorry, just one other if I could follow up on that $20 million minority purchase. Just if you could help us with the next couple of years, how
much do you anticipate in terms of other uses from a strategic angle like that? Any earnouts to be aware of to have on the radar screen?
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JULY 26, 2024 / 2:00PM, VRTS.N - Q2 2024 Virtus Investment Partners Inc Earnings Call
Question: Michael Cyprys - Morgan Stanley & Co. LLC - Analyst
: Great. Thanks so much.
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