AllianzGI Gives Virtus A Big Opening in the U.S. Retail Market
Posted on 07/07/2020
Allianz Global Investors (AllianzGI), a global active asset manager and unit of Allianz SE, signed a strategic deal with Virtus Investment Partners, Inc., which operates a multi-boutique asset management business. Virtus Investment Partners will become the investment adviser, distributor, and/or administrator of AllianzGI’s approximately US$ 23 billion in open-end, closed-end, and retail separate account assets (as of May 31, 2020). 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 US$ 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 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.
In addition, the partnership will enhance Virtus’ offerings giving it access to AllianzGI’s 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.
Based on current asset levels, the partnership would increase Virtus’ mutual fund assets under management by approximately 40% to $54 billion and its total AUM to US$ 128 billion as of May 31, 2020.
Advisors
AllianzGI was advised by Warren Enskat Group and Paul Hastings LLP. Virtus was advised by Morgan Lewis & Bockius LLP.