Virtus Investments Inc.’s second-quarter net income plummeted in half as customers for the Hartford wealth-manager’s mutual-fund and other investment products withdrew funds faster than the pace of incoming deposits.
For three months ended June 30, Virtus said Friday its generally accepted accounting principles, or GAAP, net income fell to $9.8 million, or $1.08 a diluted share, down from its GAAP net of $19.5 million, or $2.05 a share, the same quarter last year.
Second-quarter GAAP revenues fell 12 percent to $99.7 million from $112.7 million a year ago.
Total assets under management at June 30 were $52.4 billion vs. $60.1 billion a year earlier. Virtus blamed most of the asset drop on net outflows and market depreciation.
“The second quarter results reflect net outflows in the former AlphaSector funds, which were significantly lower than the first quarter,” President and CEO George Aylward said. “These outflows overshadowed strength and positive flows in our other mutual funds and all additional product categories including institutional, high net worth and [exchange traded funds].”
