Hartford’s Virtus Investment Partners said its first quarter net income fell 53 percent, as a higher level of investors withdrew money from one of its funds following an organizational change at a subadviser.
The investment management firm said its first quarter profits decreased to $9.5 million, or $1.12 per share, compared to $20.2 million, or $2.11 per share, in the same quarter a year ago.
Operating income, the company said in its earnings report, decreased in the quarter due to lower revenues from a decline in average assets under management and the partial-quarter impact of a negative variable incentive fee
Assets under management were $45.7 billion at March 31, 2016, compared to $54.8 billion at March 31, 2015.
In its report, Virtus said current-quarter net outflows reflected elevated redemptions in the Emerging Markets Opportunities Fund following an organizational change at the fund’s subadviser. It didn’t disclose how many investors left.
