Oct 22, 2022, 3:45 PM ET
Leading manager of liquid alternative strategies
HARTFORD, Conn., Oct. 22 , 2022 /PRNewswire/ — Virtus Investment Partners, Inc. (NASDAQ: VRTS ), which operates a multi-boutique wealth management business, announced today that it has entered into an agreement to acquire AlphaSimplex Group, LLC , a leading manager of liquid alternative investment solutions with $10.9 billion in assets under management 1 , from Natixis Investment Managers.
AlphaSimplex is a leading provider of systematic alternative investment solutions for institutional and private clients. The offering is designed to adapt to changing market dynamics and offers the potential for positive, uncorrelated investment returns even during the most challenging phases of the market. His strategies include his trend-following managed futures strategy, offered through the 5-Star Morningstar Rated™ $3.5 billion 2 AlphaSimplex Managed Futures Strategy Fund (ASFYX), the third-largest US mutual fund in its class.
has distinct alternative investment capabilities that complement our broad range of traditional and other liquid alternative strategies,” said George R. Aylward, Virtus ” AlphaSimplex ‘ President and Chief Executive Officer offers clients differentiated investment strategies that deliver strong, uncorrelated returns across market cycles Chief Executive Officer Duncan BE Wilkinson, Chief Investment Officer and Portfolio Manager Alexander D. Healy, Chief Research Strategist and Portfolio Manager Kathryn M. Kaminski and their team have a qualitative built a high-quality, customer-centric business and we welcome the opportunity to add AlphaSimplex as an affiliated manager.”
“We are very excited to begin this next chapter in our story and welcome the opportunity to continue delivering positive outcomes for our clients as part of Virtus, another organization that shares our commitment to the long-term success of investors,” said Wilkinson, “Our strong growth and performance is a testament to our team and process, and the important role that alternatives such as managed futures can play in a diversified portfolio, as today’s market environment clearly demonstrates.”
As a boutique subsidiary of Virtus, AlphaSimplex maintains autonomy over its investment processes, brand and culture without changes to investment strategies or management or investment teams, ensuring continuity for its clients and distributors. AlphaSimplex will benefit from Virtus’ strong marketing and sales capabilities in the retail and institutional sectors to expand its presence in the US retail, institutional and sub-advisory channels, as well as non- US markets , as well as shared business support Expand service model and product development capabilities.
Virtus will acquire 100% of AlphaSimplex from Natixis Investment Managers and seek to acquire the two US mutual funds managed by AlphaSimplex and, subject to regulatory approval, a Luxembourg -based UCITS fund. It was agreed not to disclose the terms of the transaction. Virtus assumes that the transaction will be financed with the available funds. The transaction is expected to close in late first quarter of 2023, subject to customary closing conditions, required regulatory, investment fund board and fund shareholder approvals.
Piper Sandler & Co. acted as financial advisor on the transaction and Morgan Lewis & Bockius LLP acted as legal counsel to Virtus. RBC Capital Markets, LLC acted as financial advisor and Ropes & Gray LLP acted as legal advisor to Natixis Investment Managers.
Information about the AlphaSimplex Group
AlphaSimplex Group is a Registered Investment Advisor committed to expanding the way the world invests with the power of diversification. We specialize in research and analysis of markets and behavior including volatility and risk. The company develops systematic investment strategies that adapt to changing market dynamics, using mainly liquid futures and forward transactions. Our goal is to achieve investment success and positively impact clients and colleagues by embracing a thoughtful culture of innovation, collaboration and excellence.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS ) is a unique partnership of boutique investment managers dedicated solely to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers , each with their own investment style and autonomous investment process, and selected sub-advisers. Investment solutions are available in different disciplines and product types to meet a wide range of investor needs. for more information about our company, our investment partners and strategies Visit virtus.com .
About Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients with the independent thinking and focused expertise of over 20 active managers. Natixis Investment Managers is one of the world’s largest wealth managers 3 with more than US$1.2 trillion under management 4 and offers a wide range of solutions across asset classes, styles and vehicles, including innovative environments , social and governance (ESG) strategies and products to promote sustainable finance. The firm works with clients to understand their unique needs and to provide insights and investment solutions tailored to their long-term goals. , Natixis Investment Managers Headquartered in Paris and Boston is part of the Global Financial Services division of Groupe BPCE, France’s second largest banking group, through the Banque Populaire and Caisse d’Epargne retail networks. For more information, visit the Natixis Investment Managers website at im.natixis.com .
Before investing, you should consider the fund’s investment objective, risks, charges and expenses. Visit im.natixis.com or call 800-225-5478 for a prospectus or summary prospectus containing this and other information. Read it carefully .
Investments in mutual funds involve risks. Capital losses are possible. Futures and forward transactions can involve a high level of risk and potentially unlimited losses. Because they depend on the performance of an underlying asset, they can be highly volatile and subject to market, credit and counterparty risks.
Morningstar Rating: Systematic Trend – Class Y (as of September 30, 2022)
Overall rating derived from the weighted average of 3-, 5- and 10-year (if applicable) Morningstar rating metrics; other ratings are based on risk-adjusted returns.
Total of 73 funds *****
Three years from 73 funds *****
Five years from 64 funds *****
Ten years of 33 funds *****
For each fund with a maturity of at least three years, Morningstar calculates a Morningstar Rating™, which ranks the fund relative to other funds in the same category. It is calculated based on a risk-adjusted Morningstar return measurement, which takes into account the variation in a fund’s monthly excess performance, with no adjustment for charges (front-end, deferred or exit fees), with a greater emphasis on downside swings and consistent performance being rewarded. ETFs and mutual funds are considered as a single population for comparison purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star (each Share class is counted as a fraction of a fund within this scale and valued separately which may result in slight variations in distribution percentages). Past performance is no guarantee of future results . © 2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is owned by Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) no guarantee is made as to its accuracy, completeness or timeliness. Neither Morningstar nor its content providers are responsible for any damage or loss resulting from any use of this information.
The AlphaSimplex Managed Futures Strategy Fund is distributed by Natixis Distribution, LLC, a limited purpose broker-dealer and distributor of various registered investment companies to which advisory services are provided by affiliates of Natixis Investment Managers. Natixis Distribution, LLC is located at 888 Boylston Street, Suite 800, Boston , MA 02199-8197. Member FINRA, SIPC. 800-225-5478 at.natixis.com .
This press release contains statements that are, or may be deemed 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 of 1995, as amended. These statements can be identified by forward-looking words such as “expect”, ” estimate”, “intend”, “plan”, “intend”, “believe”, “anticipate”, “may”, “will”, “should”, “could”, “continue”, “project”, “opportunity” , “predict,” “would,” “potential,” “future,” “forecast,” “guarantee,” “anticipate,” “likely,” “aim,” or similar statements or variations of such terms.
Our forward-looking statements are based on a number of expectations, assumptions and projections about the company and the markets in which we operate. There are no guarantees of future results or performance and they are subject to significant risks and uncertainties. These include assumptions and forecasts regarding our assets under management, net asset inflows and outflows, cash flows from operations, business plans and our borrowing capacity for any future period. All of our forward-looking statements speak only as of the date of this presentation. The Company cannot guarantee that any such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.
Our business and our forward-looking statements involve significant known and unknown risks and uncertainties, including those discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2021 Annual Report on Form 10-K, supplemented by our periodic filings with the Securities and Exchange Commission (the “SEC”), and the following risks and uncertainties arising from: (i) a decrease in our assets under management; ii) general domestic and global economic, political and pandemic conditions; (iii ) the inability to achieve the anticipated benefits of our strategic transactions; (iv) the ongoing impact of the COVID-19 pandemic and related global economic disruption; v) a rescission, renegotiation or termination of investment advisory agreements; (vi) damage to our reputation ; (vii) the inability it to meet financial obligations and payments related to our indebtedness; viii) inability to attract and retain key personnel; (ix) challenges from the competition we face in our business; x) adverse developments relating to unaffiliated Sub-Advisers; xi) adverse changes in key distribution relationships; (xii) interruptions or non-provision of critical technological services by us or third parties; (xiii) the risk of loss of our investments; xiv) lack of sufficient capital on satisfactory terms; xv) adverse regulatory and legal developments; xvi) failure to comply with investment guidelines or other contractual requirements; (xvii) adverse civil litigation and governmental investigations or proceedings; (xviii) unfavorable changes in tax laws or restrictions; (xix) volatility related to our common stock; (xx) inability to pay quarterly common stock dividends; (xxi) certain corporate governance provisions in our charter and articles of incorporation; xxii) any loss or expense not covered by insurance; (xxiii) an impairment of goodwill or intangible assets; and other risks and uncertainties. Any occurrence or material adverse change in one or more of the risk factors or risks and uncertainties referenced above in our 2021 Annual Report on Form 10-K and our other periodic reports filed with the SEC could affect our business, financial results, cash flows, prospects and liquidity significantly and adversely affect.
Certain other factors that may affect our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed in or included in the Company’s periodic reports to the SEC and are available on our website at www.virtus.com under “Investor Relations”. We urge you to consider all of these factors carefully.
The Company does not undertake and does not plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or forecasts or other circumstances occurring after the date of this press release, even if such results, changes or circumstances make it clear that the forward-looking statements will not materialize. If there are any future public statements or disclosures made by us that change or affect the forward-looking statements in or about this press release, such statements or disclosures are deemed to change or supersede those statements in this press release.
1 As of September 30, 2022. Assets under Management (AUM) includes the trade size (capital) of AlphaSimplex-managed separately managed accounts (excluding overlay accounts) that the client has elected to partially fund the strategy finance. This metric for assets under management is not in line with the regulatory AUM.
2 Overall rating derived from the weighted average of 3-, 5- and 10-year (if applicable) Morningstar rating metrics; other ratings based on risk-adjusted returns.
3 Cerulli Quantitative Update: Global Markets 2022 ranked Natixis Investment Managers as the eighteenth largest wealth manager in the world based on assets under management as of December 31, 2021.
4 Assets under management (“AUM”) of the current affiliates as of June 30, 2022 is US$1.2 trillion (€1.1 trillion). AUM may include notional assets, assets under management, gross assets, as reported , minority-owned affiliate assets and other types of non-regulatory managed or supervised assets managed or supervised by Natixis Investment Managers affiliates.
SOURCE Virtus Investment Partners, Inc.