AllianzGI and Virtus Investment Partners Announce Strategic Partnership in U.S. Retail Market
Allianz Global Investors and Virtus Investment Partners, Inc., which operates a multi-boutique asset management business, today announced they have agreed to a strategic partnership.
Virtus to assume responsibility for AllianzGI’s U.S. open- and closed-end funds;
AllianzGI’s Value Equity team to join Virtus
NEW YORK & HARTFORD, CT, July 7, 2020 – 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 U.S.
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 subadviser.
“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 $128 billion2 .
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.
Forward-Looking Information Concerning Virtus Investment Partners
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1) As of May 31, 2020
2) Pro forma, using AUM as of May 31, 2020
AllianzGI receives highest possible ESG Strategy & Governance score from PRI for fourth year in a row
Allianz Global Investors, one of the world’s leading active investment managers, has received an ‘A+’ from the PRI Association for its overarching approach to ESG Strategy and Governance for the fourth year in a row. This category encompasses environmental, social and governance (ESG) policies, objectives and memberships, and considers how the firm promotes its ESG efforts internally and externally.
AllianzGI awarded (A+) for its overarching approach to ESG Strategy and Governance
Achieves highest possible “A+” score for five categories and “A” for three categories
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