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Virtus Investment Partners Announces Financial Results For the Fourth Quarter and Full Year of 2012



Virtus Investment Partners Announces Financial Results For the Fourth Quarter
                            and Full Year of 2012

- Operating Income, as Adjusted, of $24.5 Million for the Fourth Quarter and
$81.5 Million for the Full Year Up 80 Percent and 86 Percent from 2011;
Operating Income Increases to $20.5 Million in Fourth Quarter and $60.4
Million for Full Year

- Total Sales Increase 46 Percent to $3.9 Billion for the Fourth Quarter and
29 Percent to $14.4 Billion for Full Year from 2011

- Long-Term Open-End Mutual Fund Sales Increase 44 Percent to $3.4 Billion in
the Fourth Quarter and 30 Percent to $12.3 Billion for Full Year

- Total Net Flows of $1.7 Billion for the Fourth Quarter and $6.7 Billion for
Full Year Up 113 Percent and 29 Percent from 2011

PR Newswire

HARTFORD, Conn., Jan. 29, 2013

HARTFORD, Conn., Jan. 29, 2013 /PRNewswire/ -- Virtus Investment Partners,
Inc. (NASDAQ: VRTS), which operates a multi-manager asset management business,
today reported fourth quarter and full year results that reflect substantial
growth in revenue, pre-tax earnings, and operating margin as a result of
record mutual fund sales and net flows.

(Logo: http://photos.prnewswire.com/prnh/20121031/NE03346LOGO )

Operating income, as adjusted, was $24.5 million for the quarter ended
December 31, 2012, an increase of 80 percent from $13.6 million in the fourth
quarter of 2011 and 12 percent from $21.8 million in the third quarter of
2012. Operating margin, as adjusted, was 41 percent in the fourth quarter of
2012, compared with 32 percent for the prior year quarter and 40 percent for
the prior quarter. Operating income, as adjusted, was $81.5 million for the
full year, an increase of 86% from $43.7 million in 2011, and the related
margin increased to 38% from 28% for 2011.

Operating income was $20.5 million for the fourth quarter and $60.4 million
for the full year, compared with $8.2 million in the fourth quarter of 2011,
$17.8 million in the third quarter of 2012, and $13.9 million for 2011.

Net income attributable to common stockholders of $12.2 million and $37.6
million, or $1.50 and $4.66 per diluted common share for the fourth quarter
and full year respectively, included incremental net non-cash deferred tax
expenses of $1.9 million and $2.6 million, or $0.23 and $0.32 per diluted
share for the respective periods, primarily related to a revision of the
company's estimated blended state tax rate.

In the prior year, net income attributable to common stockholders of $109.6
million or $16.35 per diluted share for the fourth quarter and $111.7 million,
or $16.34 per share for the full year, included a net benefit of $102.5
million, or $15.30 and $15.00 per diluted share attributable to common
stockholders for the respective periods, primarily related to the fourth
quarter release of a valuation allowance on certain deferred tax assets and
expenses related to the retired Series B Convertible Preferred Stock.

Assets under management were $45.5 billion at December 31, 2012, an increase
of 32 percent from December 31, 2011 and 9 percent from September 30, 2012.
Long-term assets under management were $43.5 billion at the end of the fourth
quarter, an increase of 35 percent from December 31, 2011 and 9 percent from
September 30, 2012.

Financial Highlights (Unaudited)
(Dollars in thousands, except per share data or as noted)

In evaluating its performance, the company considers certain non-GAAP
measures, including operating income, as adjusted, operating margin, as
adjusted, operating expenses, as adjusted, and revenue, as adjusted, that are
described and reconciled to GAAP-reported amounts in the table at the end of
the release. These non-GAAP measures net the distribution and administration
expenses against the related revenue and also exclude certain other cash and
non-cash items.

                                             Three

             Three Months Ended              Months             Twelve Months Ended

                                             Ended
             12/31/2012  12/31/2011  Change  9/30/2012  Change  12/31/2012  12/31/2011  Change
Ending
Assets Under $           $                   $                  $           $        
Management   45.5        34.6        32%     41.8       9%      45.5        34.6        32%
(in
billions)
Average
Assets Under $           $                   $                  $           $        
Management   44.0        34.2        29%     40.1       10%     39.6        33.0        20%
(in
billions)
Gross Sales  $           $                   $  
(in          3,850.7     2,629.2     46%     3,906.7    (1)%    $ 14,447.4  $ 11,223.8  29%
millions)
Net Flows(in $           $           113%    $          (5)%    $           $           29%
millions)    1,686.7      790.3              1,774.4            6,730.7     5,208.2
Revenue      $           $           40%     $          10%     $  280,086  $  204,652  37%
              78,919      56,172              71,951
Revenue, as  $           $           39%     $          9%      $  211,645  $  155,146  36%
adjusted (1)  59,151      42,690              54,061
Operating    $           $           22%     $          8%      $  219,641  $  190,749  15%
expenses      58,447      47,978              54,184
Operating    $           $                   $  
expenses, as  34,654      29,116     19%      32,253    7%      $  130,190  $  111,468  17%
adjusted (1)
Operating    $           $           150%    $          15%     $           $           N/M
income        20,472      8,194               17,767             60,445      13,903
Operating    $           $                   $                  $           $  
income, as    24,497      13,574     80%      21,808    12%      81,455      43,678     86%
adjusted(1)
Net income   $           $  140,665  (91)%   $          6%      $           $  145,420  (74)%
              12,314                          11,642             37,773
Net income
attributable $           $  109,554  (89)%   $          5%      $           $  111,678  (66)%
to common     12,213                          11,642             37,608
stockholders
Avg. shares
outstanding
- diluted    8,126       6,700       21%     8,117      0%      8,073       6,834       18%
(in
thousands)
Earnings per $           $                   $                  $           $    
share -      1.50         16.35      (91)%   1.43       5%      4.66         16.34      (71)%
diluted (2)
Operating    26%         15%                 25%                22%         7%
margin
Operating
margin, as   41%         32%                 40%                38%         28%
adjusted (1)
N/M - Not Meaningful
(1) See "Schedule of Non-GAAP Information"
at the end of the release
(2) For the three months and twelve months ended December 31, 2011, includes $15.30 and
$15.00, respectively, per share net benefit attributable to common stockholders primarily
related to a tax valuation release and expenses related to the retired Series B Convertible
Preferred Stock

Management Commentary

"The very strong results we delivered in the fourth quarter completed a year
that was highly successful by all financial and operating measures," said
George R. Aylward, president and chief executive officer. "2012 was our best
year for cash earnings, mutual fund sales, and positive net flows.  We also
completed initiatives that added new investment capabilities, further
expanding the company's opportunities for future growth."

Operating income, as adjusted, increased by 86 percent for the full year, and
Aylward attributed the growth to the cumulative benefit of continued strong
net flows, particularly from mutual funds. He noted that the company generated
double-digit organic growth in its funds at a time when low single-digit
growth has been the average for the industry. Assets under management grew by
32 percent as a result of positive net flows, market appreciation, and the
acquisition of a new affiliate.

"We have sustained a high level of mutual fund sales and net flows because of
the strong long-term investment performance of our funds, particularly in
asset classes that are in demand today, such as international equity and
taxable fixed-income strategies," Aylward said. Ninety-five percent of
Morningstar®-rated mutual fund assets were in 5-, 4- and 3-star funds at
year-end, and the manager of the company's largest international equity funds
was named Morningstar's top international equity portfolio manager for 2012.

"The continued strength of our mutual fund sales and flows also illustrates
the attractiveness of our distinctive strategies in highly rated funds, the
benefits of active product development efforts, and our ability to
successfully partner with financial advisors," Aylward added.

During the year the company expanded its investment capabilities by: launching
10 new open- and closed-end fund strategies; acquiring a firm that offers
options strategies; offering a new international equity strategy from an
affiliated manager; and creating a new majority-owned affiliate that offers
rules-based strategies using proprietary asset allocation models. "Our
multi-manager business model gives us the flexibility to continue to offer
clients a wide range of suitable investment products. We can provide investors
the building blocks for a well-diversified portfolio."

In addition to introducing new investment strategies, Virtus expanded its
successful retail distribution efforts in 2012 with a separate team of sales
consultants dedicated to the independent broker-dealer and registered
investment advisor (RIA) channels, which are fast-growing segments of the
financial intermediary market. "The expansion of our distribution resources
lets us broaden our access to financial advisors and bring our
institutional-quality investment strategies to more clients."

Aylward said the consistent strong fund sales and the completion of the growth
activities give the company a strong position to capitalize on future growth
opportunities.

"The top- and bottom-line growth we generated in 2012 was built on a platform
of distinctive products and effective distribution efforts, and we are well
positioned to continue our momentum in 2013 and deliver further value for our
shareholders."

Asset Flows and Assets Under Management

Consistently strong sales and net flows from long-term open-end mutual funds,
combined with an acquisition and market appreciation, resulted in a
significant increase in total and long-term assets under management.

  o Total sales increased 46 percent to $3.9 billion in the fourth quarter
    from $2.6 billion in the fourth quarter of 2011, and were consistent with
    the strong sales in the third quarter of 2012. Sales were $14.4 billion
    for the full year, an increase of 29 percent from $11.2 billion in 2011.
    Positive net flows were $1.7 billion in the fourth quarter, compared with
    $0.8 billion in the prior year quarter and $1.8 billion in the third
    quarter of 2012.
  o The company had its best quarter for sales and net flows of long-term
    open-end mutual funds, with sales of $3.4 billion, which increased 44
    percent from the fourth quarter of 2011 and 3 percent on a sequential
    basis. Sales for the full year of $12.3 billion, or 30 percent greater
    than $9.5 billion in 2011, represent an annual sales rate of 73 percent.
  o Long-term open-end funds generated $1.7 billion of positive net flows in
    the fourth quarter, or 61 percent greater than flows in the fourth quarter
    of 2011 and 9 percent higher on a sequential basis. For the full year,
    positive net flows were $6.4 billion, or 27 percent greater than 2011's
    net flows. The annual organic growth (net flows divided by
    beginning-of-period assets) continued to be among the highest in the
    industry at 38 percent.
  o Assets under management at December 31, 2012 increased by 32 percent to
    $45.5 billion from $34.6 billion at December 31, 2011 and by 9 percent
    from $41.8 billion at September 30, 2012. Positive net flows of $6.7
    billion and market appreciation of $3.8 billion were primarily responsible
    for the increase from the prior year. The completion of the Rampart
    Investment Management acquisition in October added $1.4 billion during the
    fourth quarter of 2012. Long-term assets increased to $43.5 billion at
    year-end 2012 as a result of both positive net flows and market
    appreciation.
  o Average assets under management, which correspond to the company's
    fee-earning asset levels, were $44.0 billion at December 31, 2012, up 29
    percent from $34.2 billion at December 31, 2011 and 10 percent from
    September 30, 2012.

Revenue

Quarterly and annual revenue increased from prior periods primarily as a
result of the substantial growth of open-end mutual funds, higher closed-end
fund assets, and the addition of a new affiliated manager.

  o Revenues of $78.9 million in the fourth quarter increased 40 percent from
    $56.2 million in the fourth quarter of 2011 and 10 percent on a sequential
    basis, primarily as a result of higher investment management fees from the
    company's growing asset base. For the year, total revenue increased 37
    percent to $280.1 million from $204.7 million.
  o Revenues, as adjusted, increased by 39 percent to $59.2 million in the
    fourth quarter from $42.7 million in the prior year quarter and by 9
    percent from $54.1 million in the third quarter. For the full year,
    revenues, as adjusted, increased 36 percent to $211.6 million from $155.1
    million as a result of the higher asset levels and an increase in the
    average net fee rate.
  o Investment management fees increased 41 percent to $53.2 million in the
    fourth quarter from $37.7 million in the fourth quarter of 2011,
    reflecting the 52 percent increase in average open-end fund assets; a 15
    percent increase in closed-end fund average assets that included the $205
    million initial offering of the Virtus Global Multi-Sector Income Fund and
    a rights offering that raised $229 million for the DNP Select Income Fund
    Inc.; and a 55 percent increase in average separately managed account
    (SMA) assets resulting from both organic growth and the addition of assets
    managed by Rampart.
  o Administration and transfer agent fees in the fourth quarter increased 47
    percent to $9.6 million from $6.5 million in the prior year and by 9
    percent from $8.8 million in the prior quarter and as a result of higher
    average long-term open-end mutual fund assets and the additional
    closed-end fund assets. For the full year, administration and transfer
    agent fees increased 41 percent to $33.8 million from $23.9 million in
    2011.

Expenses

The increases in operating expenses for the fourth quarter and the full year
reflect the growth of the company's business and the addition of new
investment strategies, including the acquisition of a new affiliate.

  o Total operating expenses were $58.4 million in the fourth quarter,
    compared with $48.0 million in fourth quarter of 2011 and $54.2 million in
    the third quarter of 2012, reflecting the higher distribution costs
    related to increased sales and assets under management, higher variable
    compensation costs, and an acquisition. Full year total operating expenses
    were $219.6 million in 2012, compared with $190.7 million in 2011.
  o Fourth quarter operating expenses, as adjusted, which exclude certain
    charges such as distribution and administration expenses, stock-based
    compensation, depreciation and amortization, and restructuring charges,
    were $34.7 million, compared with $29.1 million in the fourth quarter of
    2011 and $32.3 million in the third quarter of 2012.  Full year operating
    expenses, as adjusted, increased by 17 percent to $130.2 million in 2012
    from $111.5 million in the prior year.
  o Employment expenses were $27.8 million in the fourth quarter compared with
    $24.4 million in the fourth quarter of 2011 and $25.9 million in the third
    quarter of 2012, reflecting increases in variable incentive compensation
    and the October addition of Rampart Investment Management. For the full
    year, employment expenses were $105.6 million in 2012 compared with $92.5
    million in the prior year.
  o The year-over-year and sequential quarterly increases in distribution and
    administration expenses to $19.7 million in the fourth quarter of 2012
    from $13.5 million in the fourth quarter of 2011 and $17.8 million in the
    third quarter of 2012, primarily reflect the increase in mutual fund
    assets. For the full year, distribution and administration expenses were
    $72.2 million compared with $60.2 million in 2011.
  o Other operating expenses were $8.7 million in the fourth quarter, an
    increase of 18 percent from $7.4 million in the prior year quarter and 5
    percent from $8.3 million in the prior quarter, reflecting costs
    associated with the Rampart acquisition and other growth initiatives. For
    2012, other operating expenses were $34.0 million compared with $30.2
    million in the prior year.

New Products and Investment Capabilities

The company further expanded its offering of attractive investment products
with the launch of three new open-end mutual funds and the addition of new
investment capabilities from affiliated managers. During the quarter Virtus:

  o Completed the acquisition of Rampart Investment Management, a registered
    investment advisor with $1.3 billion under management at December 31,
    2012. Rampart offers customized options strategies for institutional and
    high-net-worth clients using systematic and disciplined options solutions
    to manage portfolio risk and provide additional yield from current equity
    allocations.
  o Established Newfound Investments, an investment adviser that uses
    proprietary research and asset allocation models from Newfound Research, a
    financial technology firm that has a minority interest in the new firm.
    Newfound Investments manages three new "Virtus Disciplined" mutual funds^1
    that were launched in December:

       o Virtus Disciplined Select Bond Fund (Class A:VDBAX) uses the Newfound
         Relative Exposure Model to tactically shift between six ETFs in three
         fixed-income asset classes;
       o Virtus Disciplined Equity Style Fund (Class A: VDEAX) uses the
         Newfound Relative Exposure Model to identify and capture relative
         outperformance trends between growth- and value-oriented stocks; and
       o Virtus Disciplined Select Country Fund (Class A: VDCAX) uses the
         Newfound Absolute Exposure Model to tactically allocate among ETFs
         that invest in 12 developed countries within the MSCI EAFE® index.

  o Introduced an international equity capability at its Euclid Advisors
    affiliate. The new strategy is a high conviction, core portfolio that has
    a bias towards value and quality, but is flexible in responding to market
    conditions based on its top-down, bottom-up approach.
  o Entered into an agreement to acquire a 24 percent interest in Kleinwort
    Benson Investors International, Ltd. (KBII), a U.S. registered investment
    adviser that subadvises the Virtus Emerging Markets Equity Income Fund, a
    mutual fund that was launched in September. KBII offers
    institutional-quality, income-oriented equity and resource strategies.

Investment Performance

The company's mutual funds continued to generate strong relative investment
performance, with 26 of the 31 funds eligible for rating – representing 95
percent of long-term open-end mutual fund assets – rated with 5, 4 or 3 stars
on an overall load-waived basis by Morningstar^2. Nineteen of those funds,
representing 88 percent of assets, were 5- and 4-star funds.

Among the company's 22 equity mutual funds that are eligible for Morningstar
ratings, 19 funds, representing 93 percent of equity assets, and seven of nine
fixed income funds, representing 98 percent of those assets, were rated as
either 5-, 4- or 3-star funds.

In January, Rajiv Jain of Vontobel Asset Management, the portfolio manager of
four Virtus international equity funds including the Virtus Foreign
Opportunities Fund (Class A: JVIAX) and Virtus Emerging Markets Opportunities
Fund (Class A: HEMZX), was named Morningstar's 2012 International-Stock Fund
Manager of the Year (U.S)^3.

Balance Sheet, Liquidity and Income Taxes

The company's working capital was $102.4 million at December 31, 2012, an
increase from $45.9 million at the end of 2011 and $81.8 million at September
30, 2012.  Working capital included cash and cash equivalents of $63.4
million, marketable securities of $15.0 million and seed capital invested in
new investment strategies of $40.4 million. Cash and cash equivalents were
$45.3 million at the end of 2011 and $42.3 million at September 30, 2012. The
sequential change was a result of the company's operating cash flows,
partially offset by the repurchase program and seeding of three funds launched
in December.

In the fourth quarter, the company used $5.9 million to repurchase 55,000
shares of common stock under its multi-year repurchase program. For the full
year, the company deployed $8.9 million to repurchase 90,000 shares. Since the
program began in 2010, Virtus has repurchased 245,000 shares, or approximately
3.0 percent of diluted average common shares outstanding at an average price
of $72.34.

The effective tax rates for the quarter and full year were 46 percent and 42
percent, respectively.  These tax rates include adjustments related to the
downward revision of the company's estimated effective tax rate to
approximately 38 percent, which resulted in a benefit from lower rates, and a
larger non-cash deferred tax expense related to the resulting reduction in the
deferred tax assets.  The net deferred tax assets available to offset future
tax obligations were $96.9 million at December 31, 2012.

Balance Sheet Highlights (Unaudited)
(Dollars in thousands)
                      As of                                 As of
                      12/31/2012     12/31/2011     Change  9/30/2012   Change
Cash and cash         $    63,446    $    45,267    40%     $           50%
equivalents                                                  42,288
Trading securities,   $    12,392    $    12,526    (1)%    $           (8)%
at fair value                                                13,473
Available-for-sale                                          $    
securities, at fair   $      2,656   $      2,469   8%       2,612      2%
value
Net assets of
consolidated
sponsored
     investment       $    40,397    $              N/M     $           13%
products (1)                           -                     35,611
Total deferred taxes, $    96,923    $              N/M     $  107,775  (10)%
net (2)                                -
Long-term debt        $    15,000    $    15,000    -       $           -
                                                             15,000
Convertible preferred $              $    35,217    N/M     $           0%
stock                   -                                       -
Stockholders' equity  $  244,471     $  183,155     33%     $  236,697  3%
Working capital (3)   $  102,415     $    45,938    123%    $           25%
                                                             81,828
Working capital less
redeemable            $    99,252    $    45,938    116%    $           22%
noncontrolling                                               81,593
interests
(1) Net assets of consolidated sponsored investment products comprise $43.9
million of total assets, $0.3 million of total liabilities and $3.2 million of
redeemable noncontrolling interests
(2) Includes both current and long-term
(3) Working capital is defined as current assets less
current liabilities
N/M - Not Meaningful

Conference Call

Virtus Investment Partners management will host an investor conference call on
Wednesday, January 30, at 11 a.m. Eastern to discuss these financial results
and related matters. The webcast of the call will be available live over the
Internet in the Investor Relations section of www.virtus.com. The call can
also be accessed by telephone at 800-920-8624 if calling from within the U.S.
or 617-597-5430 if calling from outside the U.S. (Passcode: 12164398). A
replay of the call will be available through February 28 in the Investor
Relations section of www.virtus.com or by telephone at 888-286-8010 if calling
from within the U.S. or 617-801-6888 if calling from outside the U.S.
(Passcode: 82421620). The presentation that will be reviewed as part of the
conference call will be available in the Investor Relations section of the
company's Web site.

About Virtus Investment Partners

Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of
boutique investment managers singularly committed to the long-term success of
individual and institutional investors. The company provides investment
management products and services through its affiliated managers and select
subadvisers, each with a distinct investment style, autonomous investment
process and individual brand. Virtus Investment Partners offers access to a
variety of investment styles across multiple disciplines to meet a wide array
of investor needs. Its affiliated managers include Duff & Phelps Investment
Management Co., Euclid Advisors LLC, Kayne Anderson Rudnick Investment
Management, LLC, Newfleet Asset Management, LLC, Newfound Investments, LLC,
Rampart Investment Management Co., LLC, and Zweig Advisers LLC. Additional
information can be found at www.virtus.com.

 

Consolidated
Statements of
Operations
(Dollars in
thousands,
except per
share data)
                                               Three

               Three Months Ended              Months             Twelve Months Ended

                                               Ended
               12/31/2012  12/31/2011  Change  9/30/2012  Change  12/31/2012  12/31/2011  Change
Revenues
Investment     $           $                   $  
management      53,165      37,698     41%      47,985    11%     $  187,875  $  135,063  39%
fees
Distribution
and service    15,897      11,497      38%     14,661     8%      56,866      43,792      30%
fees
Administration
and transfer   9,580       6,525       47%     8,774      9%      33,779      23,878      41%
agent fees
Other income   277         452         (39)%   531        (48)%   1,566       1,919       (18)%
and fees
     Total     78,919      56,172      40%     71,951     10%     280,086     204,652     37%
revenues
Operating
Expenses
Employment     27,847      24,398      14%     25,899     8%      105,571     92,543      14%
expenses
Distribution
and            19,727      13,482      46%     17,764     11%     72,210      60,176      20%
administration
expenses
Other
operating      8,743       7,435       18%     8,346      5%      34,017      30,157      13%
expenses
Other
operating
expenses of
consolidated
     sponsored
investment     161         -           N/M     154        5%      315         -           N/M
products
Restructuring  248         1,260       (80)%   555        (55)%   1,597       2,008       (20)%
and severance
Depreciation
and other      616         420         47%     435        42%     1,810       1,847       (2)%
amortization
Intangible
asset          1,105       983         12%     1,031      7%      4,121       4,018       3%
amortization
     Total
operating      58,447      47,978      22%     54,184     8%      219,641     190,749     15%
expenses
Operating      20,472      8,194       150%    17,767     15%     60,445      13,903      N/M
Income
Other Income
(Expense)
Realized and
unrealized
gains (loss)   252         481         (48)%   629        (60)%   1,891       (256)       N/M
on trading
securities,
net
Realized and
unrealized
gain on
investments
     of
consolidated
sponsored      1,531       -           N/M     541        183%    2,072       -           N/M
investment
products, net
Other income   (22)        14          N/M     (16)       (38)%   (38)        (194)       80%
(expense), net
     Total
other income   1,761       495         N/M     1,154      53%     3,925       (450)       N/M
(expense), net
Interest
Income
(Expense)
Interest       (183)       (190)       4%      (196)      7%      (854)       (782)       (9)%
expense
Interest and
dividend       335         129         160%    98         N/M     710         321         121%
income
Interest and
dividend
income of
investments
     of
consolidated
sponsored      479         -           N/M     98         N/M     577         -           N/M
investment
products
     Total
interest       631         (61)        N/M     -          N/M     433         (461)       N/M
income
(expense), net
Income Before  22,864      8,628       165%    18,921     21%     64,803      12,992      N/M
Income Taxes
Income tax
expense        10,550      (132,037)   N/M     7,279      45%     27,030      (132,428)   N/M
(benefit)
Net Income     12,314      140,665     (91)%   11,642     6%      37,773      145,420     (74)%
Noncontrolling (101)       -           N/M     -          N/M     (101)       -           N/M
interests
Preferred
stockholder    -           (7,369)     N/M     -          0%      -           (9,482)     N/M
dividends
Allocation of
earnings to    -           (23,742)    N/M     -          0%      (64)        (24,260)    100%
preferred
stockholders
Net Income
Attributable   $           $  109,554  (89)%   $          5%      $           $  111,678  (66)%
to Common       12,213                          11,642             37,608
Stockholders
Earnings Per   $           $           (91)%   $          5%      $           $           (73)%
Share - Basic  1.56         17.60              1.48               4.87         17.98
Earnings Per   $           $                   $                  $           $    
Share -        1.50         16.35      (91)%   1.43       5%      4.66         16.34      (71)%
Diluted
Weighted
Average Shares
Outstanding -  7,832       6,226               7,843              7,727       6,211
Basic

(in thousands)
Weighted
Average Shares
Outstanding -  8,126       6,700               8,117              8,073       6,834
Diluted

(in thousands)
N/M - Not
Meaningful

 

 

Assets Under Management - Product and Asset Class
(Dollars in millions)
               Three Months Ended
               Dec 31,    Sep 30,    Jun 30,    Mar 31,    Dec 31,
               2012       2012       2012       2012       2011
By product
(period end):
 Mutual Funds  $          $          $          $          $
 - Long-Term    25,827.1   23,615.7   21,126.1   19,955.1   16,896.6
 Open-End
 Mutual Funds  6,231.6    6,365.3    6,051.6    5,992.3    5,675.6
 - Closed-End
 Mutual Funds
 - Money       1,994.1    1,763.8    1,818.7    1,803.4    2,294.8
 Market
 Variable
 Insurance     1,295.7    1,311.9    1,295.9    1,395.8    1,308.6
 Funds
 Separately
 Managed       5,829.0    4,531.0    4,367.7    4,304.6    3,933.8
 Accounts (1)
 Institutional 4,359.5    4,212.7    4,178.9    4,590.7    4,478.2
 Products (1)
      Total    $          $          $          $          $
                45,537.0   41,800.4   38,838.9   38,041.9   34,587.6
By product
(average) (2)
 Mutual Funds  $          $          $          $          $
 - Long-Term    24,544.6   22,246.3   20,360.1   18,634.8   16,192.4
 Open-End
 Mutual Funds  6,257.7    6,114.2    5,924.8    5,763.0    5,454.7
 - Closed-End
 Mutual Funds
 - Money       1,792.7    1,805.6    1,787.0    1,997.6    2,320.8
 Market
 Variable
 Insurance     1,288.0    1,307.6    1,316.1    1,367.6    1,312.4
 Funds
 Separately
 Managed       5,737.8    4,367.7    4,304.6    3,933.8    3,692.0
 Accounts (1)
 Institutional 4,349.7    4,222.1    4,510.9    4,591.5    5,195.3
 Products (1)
      Total    $          $          $          $          $
                43,970.5   40,063.5   38,203.5   36,288.3   34,167.6
By asset class
(period end):
 Equity (1)    $          $          $          $          $
                26,925.5   24,143.4   22,296.8   21,940.9   18,978.5
 Fixed Income  16,581.7   15,846.5   14,680.1   14,249.2   13,187.9
 Cash          2,029.8    1,810.5    1,862.0    1,851.8    2,421.2
      Total    $          $          $          $          $
                45,537.0   41,800.4   38,838.9   38,041.9   34,587.6
Assets Under Management - Average Net Management Fees Earned (3)
(In basis points)
               Three Months Ended
               Dec 31,    Sep 30,    Jun 30,    Mar 31,    Dec 31,
               2012       2012       2012       2012       2011
 Mutual Funds
 - Long-Term   50.7       50.5       50.4       50.4       50.0
 Open-End (4)
 Mutual Funds
 - Closed-End  58.9       59.1       59.4       57.6       56.1
 (4)
 Mutual Funds
 - Money       4.5        4.4        4.6        3.3        2.2
 Market 
 Variable
 Insurance     52.7       47.3       45.4       48.2       47.2
 Funds (4)
 Separately
 Managed       49.3       51.1       51.3       51.5       47.7
 Accounts (1)
 Institutional 32.3       29.7       30.7       30.0       26.6
 Products (1)
      All      48.0       47.5       47.2       46.4       43.8
      Products
(1) Includes assets under management related to options strategies
(2) Averages are calculated as follows:
   - Mutual Funds and Variable Insurance Funds (VIF) - average daily
or weekly balances
   - Separately Managed Accounts - prior quarter ending balance (on
which the current quarter's fees are earned)
   - Institutional Products - average of month-end balances in
quarter
(3) Average fees earned is calculated as revenue earned by product
divided by average product assets, as described in note (2)
(4) Average fees earned for Mutual Funds and VIF are net of fees
paid to unaffiliated subadvisors, fund expense reimbursements and
advisory fee waivers. Excludes the impact of consolidated sponsored
investment products

 

^

 Assets Under Management - Asset Flows by Product
 (Dollars in millions)
                Three Months Ended                                       Twelve Months Ended
                12/31/2012  9/30/2012  6/30/2012  3/31/2012  12/31/2011  12/31/2012  12/31/2011
 Mutual Funds -
 Long-Term
 Open-End
 Beginning      $ 23,615.7  $          $          $          $ 14,952.0  $ 16,896.6  $ 11,801.2
 balance                    21,126.1   19,955.1   16,896.6
 Inflows        3,393.4     3,304.8    2,754.0    2,888.7    2,363.5     12,340.9    9,478.4
 Outflows       (1,646.7)   (1,708.9)  (1,363.1)  (1,203.0)  (1,276.3)   (5,921.7)   (4,424.0)
 Net flows      1,746.7     1,595.9    1,390.9    1,685.7    1,087.2     6,419.2     5,054.4
 Market
 appreciation   475.1       911.9      (253.3)    1,408.3    914.2       2,542.0     181.1
 (depreciation)
 Other (1)      (10.4)      (18.2)     33.4       (35.5)     (56.8)      (30.7)      (140.1)
 Ending balance $ 25,827.1  $          $          $          $ 16,896.6  $ 25,827.1  $ 16,896.6
                            23,615.7   21,126.1   19,955.1
 Mutual Funds -
 Closed-End
 Beginning      $           $          $          $          $           $           $  
 balance        6,365.3     6,051.6    5,992.3    5,675.6    5,318.7     5,675.6     4,321.2
 Inflows        -           229.2      9.6        205.4      -           444.2       817.1
 Outflows       -           -          -          -          -           -           -
 Net flows      -           229.2      9.6        205.4      -           444.2       817.1
 Market
 appreciation   (43.7)      181.5      135.7      89.2       341.6       362.7       514.5
 (depreciation)
 Other (1)      (90.0)      (97.0)     (86.0)     22.1       15.3        (250.9)     22.8
 Ending balance $           $          $          $          $           $           $  
                6,231.6     6,365.3    6,051.6    5,992.3    5,675.6     6,231.6     5,675.6
 Mutual Funds -
 Money Market
 Beginning      $           $          $          $          $           $           $  
 balance        1,763.8     1,818.7    1,803.4    2,294.8    2,407.8     2,294.8     2,915.5
 Other (1)      230.3       (54.9)     15.3       (491.4)    (113.0)     (300.7)     (620.7)
 Ending balance $           $          $          $          $           $           $  
                1,994.1     1,763.8    1,818.7    1,803.4    2,294.8     1,994.1     2,294.8
 Variable
 Insurance
 Funds
 Beginning      $           $          $          $          $           $           $  
 balance        1,311.9     1,295.9    1,395.8    1,308.6    1,244.7     1,308.6     1,538.5
 Inflows        15.5        13.5       8.3        10.7       6.3         48.0        25.8
 Outflows       (60.3)      (52.8)     (60.6)     (64.5)     (59.6)      (238.2)     (267.8)
 Net flows      (44.8)      (39.3)     (52.3)     (53.8)     (53.3)      (190.2)     (242.0)
 Market
 appreciation   28.6        55.3       (47.6)     141.0      117.2       177.3       11.1
 (depreciation)
 Other (1)      -           -          -          -          -           -           1.0
 Ending balance $           $          $          $          $           $           $  
                1,295.7     1,311.9    1,295.9    1,395.8    1,308.6     1,295.7     1,308.6
 Separately
 Managed
 Accounts (2)
 Beginning      $           $          $          $          $           $           $  
 balance        4,531.0     4,367.7    4,304.6    3,933.8    3,692.0     3,933.8     3,833.0
 Inflows        281.8       246.6      342.0      308.0      225.2       1,178.4     733.5
 Outflows       (285.7)     (211.1)    (231.6)    (252.3)    (262.8)     (980.7)     (779.5)
 Net flows      (3.9)       35.5       110.4      55.7       (37.6)      197.7       (46.0)
 Market
 appreciation   42.1        128.0      (42.3)     399.0      272.5       526.8       197.0
 (depreciation)
 Other (1)      1,259.8     (0.2)      (5.0)      (83.9)     6.9         1,170.7     (50.2)
 Ending balance $           $          $          $          $           $           $  
                5,829.0     4,531.0    4,367.7    4,304.6    3,933.8     5,829.0     3,933.8
 Institutional
 Products (2)
 (3)
 Beginning      $           $          $          $          $           $           $  
 balance        4,212.7     4,178.9    4,590.7    4,478.2    5,457.5     4,478.2     5,063.9
 Inflows        160.0       112.6      61.0       102.3      34.2        435.9       169.0
 Outflows       (171.3)     (159.5)    (126.7)    (118.6)    (240.2)     (576.1)     (544.3)
 Net flows      (11.3)      (46.9)     (65.7)     (16.3)     (206.0)     (140.2)     (375.3)
 Market
 appreciation   32.1        74.2       9.7        117.4      164.3       233.4       240.3
 (depreciation)
 Other (1)      126.0       6.5        (355.8)    11.4       (937.6)     (211.9)     (450.7)
 Ending balance $           $          $          $          $           $           $  
                4,359.5     4,212.7    4,178.9    4,590.7    4,478.2     4,359.5     4,478.2
 Total
 Beginning      $ 41,800.4  $          $          $          $ 33,072.7  $ 34,587.6  $ 29,473.3
 balance                    38,838.9   38,041.9   34,587.6
 Inflows        3,850.7     3,906.7    3,174.9    3,515.1    2,629.2     14,447.4    11,223.8
 Outflows       (2,164.0)   (2,132.3)  (1,782.0)  (1,638.4)  (1,838.9)   (7,716.7)   (6,015.6)
 Net flows      1,686.7     1,774.4    1,392.9    1,876.7    790.3       6,730.7     5,208.2
 Market
 appreciation   534.2       1,350.9    (197.8)    2,154.9    1,809.8     3,842.2     1,144.0
 (depreciation)
 Other (1)      1,515.7     (163.8)    (398.1)    (577.3)    (1,085.2)   376.5       (1,237.9)
 Ending balance $ 45,537.0  $          $          $          $ 34,587.6  $ 45,537.0  $ 34,587.6
                            41,800.4   38,838.9   38,041.9
 (1)  Comprised of open-end and closed-end mutual fund distributions, net flows of cash
 management strategies, net flows and market appreciation (depreciation) on structured
 products, and net flows from non-sales related activities such as asset acquisitions/
 (dispositions) and the impact of leverage on AUM.  For periods prior to March 31, 2012,
 closed-end mutual fund dividends distributed were previously included in market appreciation
 (depreciation) and have been reclassified to "Other" to conform with the current period
 classification
 (2) Includes assets under management related to options strategies
 (3) Institutional Products consists of Institutional Accounts and Structured Products

Schedule of Non-GAAP Information
(Dollars in thousands)
The company reports its financial results on a Generally Accepted Accounting
Principles (GAAP) basis; however management believes that evaluating the
company's ongoing operating results may be enhanced if investors have
additional non-GAAP financial measures.  Management reviews non-GAAP financial
measures to assess ongoing operations and considers them only to be additional
metrics for both management and investors to consider the company's financial
performance over time, as noted in the footnotes below.  Management does not
advocate that investors consider such non-GAAP financial measures in isolation
from, or as a substitute for, financial results prepared in accordance with
GAAP.
Reconciliation of Revenues, Operating Expenses and Operating Income on a GAAP
Basis to Revenues, Operating

Expenses and Operating Income, as Adjusted
                           Three Months Ended              Twelve Months Ended
                           Dec 31,    Dec 31,    Sep 30,   Dec 31,    Dec 31,
                           2012       2011       2012      2012       2011
Revenues, GAAP basis       $          $          $         $          $    
                           78,919     56,172      71,951   280,086    204,652
Less:
        Distribution and
        administration     19,727     13,482     17,764    68,274     50,563
        expenses
        Newfleet
        transition related -          -          -         -          (1,057)
        subadvisory fees
        (1)
        Consolidated
        sponsored          41         -          126       167        -
        investment
        products fees (2)
Revenues, as adjusted (3)  $          $          $         $          $    
                           59,151     42,690      54,061   211,645    155,146
Operating Expenses, GAAP   $          $          $         $          $    
basis                      58,447     47,978      54,184   219,641    190,749
Less:
        Distribution and
        administration     19,727     13,482     17,764    68,274     50,563
        expenses
        Depreciation and   1,721      1,403      1,466     5,931      5,865
        amortization
        Stock-based        1,407      1,336      1,463     6,063      4,926
        compensation (4)
        Restructuring and  248        1,260      555       1,597      2,008
        severance charges
        Newfleet
        transition related 529        1,381      529       2,806      5,152
        operating expenses
        (5)
        Consolidated
        sponsored          161        -          154       315        -
        investment product
        expenses (2)
        Closed-end fund    -          -          -         4,465      10,767
        launch costs (6)
Operating Expenses, as     $          $          $         $          $    
adjusted (7)               34,654     29,116      32,253   130,190    111,468
Operating Income, as       $          $          $         $          $      
adjusted (8)               24,497     13,574      21,808   81,455     43,678
Operating margin, GAAP     26%        15%        25%       22%        7%
basis
Operating margin, as       41%        32%        40%       38%        28%
adjusted (8)
(1) Reflects 30 days of fees payable under the termination provisions of the
subadvisory agreement with a former unaffiliated subadvisor of the
Multi-Sector assets. These subadvisory fees ended effective July 2, 2011. The
company records its management fees net of fees paid to unaffiliated
subadvisors.
(2) Revenues and expenses related to consolidated sponsored investment
products have been excluded to reflect revenues and expenses of the company
prior to the consolidation of these products. 
(3) Revenues, as adjusted, is a non-GAAP financial measure calculated by
netting distribution and administration expenses from GAAP revenues.
Management believes Revenues, as adjusted, provides useful information to
investors because distribution and administration expenses are costs that are
generally passed directly through to external parties. For the twelve months
ended December 31, 2012, Virtus incurred $72.2 million of distribution and
administration expenses that included $3.9 million of structuring fees related
to the closed-end fund launch. For the twelve months ended December 31, 2011,
Virtus incurred $60.2 million of distribution and administration expenses that
included $9.6 million of structuring fees related to the closed-end fund
launch.  For the purposes of calculating Revenues, as adjusted, for the twelve
months ended December 31, 2012 and December 31, 2011, structuring fees paid to
third-party distributors for the closed-end fund launch are excluded as they
do not have a related revenue offset.
(4) For the three months ended December 31, 2012, December 31, 2011 and
September 30, 2012, stock-based compensation expense includes $1.4, $1.0 and
$1.4 million, respectively, of equity issued under the company's annual
incentive and long-term plans. For the twelve months ended December 31, 2012
and December 31, 2011, stock-based compensation expense includes $5.7 and $3.6
million, respectively, of equity issued under the company's annual incentive
and long-term plans, and $0.6 and $0.4 million, respectively, related to the
annual board of directors grant.
(5) For the three months ended December 31, 2012, December 31, 2011 and
September 30, 2012, Newfleet transition-related operating expenses consist of
compensation expenses of $0.5 million, $1.4 million and $0.5 million,
respectively, incurred in conjunction with the addition of the Newfleet
Multi-Sector team, including $0.2 million, $0.3 million and $0.2 million,
respectively, of stock-based compensation.  For the twelve months ended
December 31, 2012 and December 31, 2011, Newfleet transition-related operating
expenses consist of compensation expenses of $2.8 million and $5.2 million,
respectively, including $0.9 million and $0.7 million, respectively, of
stock-based compensation.
(6) For the twelve months ended December 31, 2012 closed-end fund launch costs
comprise structuring fees of $3.9 million payable to underwriters, sales-based
incentive compensation of $0.4 million and unreimbursed offering costs of $0.2
million.  For the twelve months ended December 31, 2011 closed-end fund launch
costs comprise structuring fees of $9.6 million payable to underwriters and
sales-based incentive compensation of $1.2 million.
(7) Operating expenses, as adjusted, is a non-GAAP financial measure that
management believes provides investors with additional information because of
the nature of the specific excluded operating expenses. Specifically,
management adds back amortization attributable to acquisition-related
intangible assets as this may be useful to an investor to consider our
operating results with the results of other asset management firms that have
not engaged in significant acquisitions. In addition, we add back
restructuring and severance charges as we believe that operating expenses
exclusive of these costs will aid comparability of the information to prior
reporting periods. We believe that because of the variety of equity awards
used by companies and the varying methodologies for determining stock-based
compensation expense, excluding stock-based compensation enhances the ability
of management and investors to compare financial results over periods.
Distribution and administrative expenses are excluded for the reason set forth
above. 
(8) Operating income, as adjusted, and operating margin, as adjusted, are
calculated using the basis of revenues, as adjusted, and operating expenses,
as adjusted, as described above.
In the above release, we define "organic growth rate" as our annualized net
sales divided by beginning long-term open-end mutual fund assets under
management.
The above measures should not be considered as substitutes for any measures
derived in accordance with GAAP and may not be comparable to similarly titled
measures of other companies.  Exclusion of items in our non-GAAP presentation
should not be considered as an inference that these items are unusual,
infrequent or non-recurring.

^1 The funds mentioned involve the following risks:

Credit & Interest Risk: Debt securities are subject to various risks, the most
prominent of which are credit and interest rate risk. The issuer of a security
may fail to make payments in a timely manner. Values of debt securities may
rise and fall in response to changes in interest rates. This risk may be
enhanced with longer term maturities. Emerging Markets and Foreign Investing
Risk: Investing internationally, especially in emerging markets, involves
additional risks such as currency, political, accounting, economic and market
risk. Equity Securities Risk: The market price of equity securities may be
affected by financial market, industry, or issuer-specific events. Focus on a
particular style or on small- or medium-sized companies may enhance that risk.
Exchange-Traded Funds (ETFs) Risk: The value of an ETF will be more volatile
than the underlying portfolio of securities the ETF is designed to track. The
costs of owning an ETF may exceed the cost of investing directly in the
underlying securities. Geographic Concentration Risk: A fund that focuses its
investments in a particular geographic location will be highly sensitive to
financial, economic, political, and other development affecting the fiscal
stability of that location. High Yield Risk: There is a greater level of
credit risk, price volatility and trading illiquidity involved with high-yield
securities than with investment-grade securities. Industry/Sector
Concentration Risk: A fund that focuses its investments in a particular
industry or sector will be more sensitive to conditions that affect that
industry or sector than a non-concentrated fund. Market Volatility Risk: The
risk that the value of the securities in which the fund invests may go up or
down in response to the prospects of individual companies and/or general
economic conditions. Price changes may be temporary or may last for extended
periods. U.S. Government Securities Risk: U.S. government securities may be
subject to price fluctuations. An agency may default on an obligation not
backed by the United States. Any guarantee on U.S. government securities does
not apply to the value of the fund's shares.

^2 Additional Information on Virtus Funds rated by Morningstar (without load).
Period ending Dec. 31, 2012:

Description                    Overall 3 Year 5 Year 10 Year
Number of 5 or 4 star funds    19      19     14     7
Percentage of Assets           88%     86%    83%    84%
Number of 5, 4 or 3-star funds 26      27     21     15
Percentage of Assets           95%     95%    97%    95%
Total Funds                    31      31     26     20

Additional Information on Virtus Funds rated by Morningstar (with load).
Period ending Dec. 31, 2012:

Description                    Overall 3 Year 5 Year 10 Year
Number of 5 or 4 star funds    17      19     12     6
Percentage of Assets           80%     86%    80%    78%
Number of 5, 4 or 3-star funds 24      24     20     11
Percentage of Assets           92%     91%    95%    90%
Total Funds                    31      31     26     20

For each fund with at least a three-year history, Morningstar calculates a
Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that
accounts for variation in a fund's monthly performance (including the effect
of sales charges, loads, and redemption fees), placing more emphasis on
downward variation and rewarding consistent performance. 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. The Overall Morningstar Rating™ for a fund is derived from a weighted
average of performance figures associated with its three-, five- and ten-year
(if applicable) Morningstar Rating metrics. Ratings are for Class A shares as
shown only; other share classes bear different fees and expenses, which affect
performance. Load-waived star ratings do not include any front-end sales load
and are intended for those investors who have access to such terms (e.g., for
plan participants of a defined contribution plan).

©2013 Morningstar, Inc. All rights reserved. The information contained above
is (1) proprietary to Morningstar and/or its content providers; (2) may not be
copied or distributed; and (3) is not warranted to be accurate, complete, or
timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information.

Strong ratings are not indicative of positive fund performance. Absolute
performance for some funds was negative. For complete investment performance,
please visit www.virtus.com.

^3 Established in 1988, the Morningstar Fund Manager of the Year award
recognizes portfolio managers who demonstrate excellent investment skill and
the courage to differ from the consensus to benefit investors. To qualify for
the award, managers' funds must have not only posted impressive returns for
the year, but the managers also must have a record of delivering outstanding
long-term risk-adjusted performance and of aligning their interests with
shareholders'. Nominated funds must be Morningstar Medalists – a fund that has
garnered a Morningstar Analyst Rating of Gold, Silver, or Bronze. The Fund
Manager of the Year award winners are chosen based on Morningstar's
proprietary research and in-depth qualitative evaluation by its fund analysts.

Data quoted represents past performance. Past performance is no guarantee of
future results. Current performance may be lower or higher than the
performance data quoted.  Investing involves risk, including the possible loss
of principal. The value of your investment will fluctuate over time and you
may gain or lose money.

Please carefully consider a Fund's investment objectives, risks, charges, and
expenses before investing. For this and other information about the Virtus
Mutual Funds, call 1-800-243-4361 or visit www.Virtus.com for a prospectus.
Read it carefully before you invest or send money.

Virtus Mutual Funds are distributed by VP Distributors, LLC, member, FINRA and
subsidiary of Virtus Investment Partners, Inc.

Forward-Looking Information

This press release contains statements that are, or may be considered 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. These statements may be identified by such forward-looking
terminology as "expect," "estimate," "plan," "intend," "believe,"
"anticipate," "may," "will," "should," "could," "continue," "project," or
similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations,
assumptions and projections about our company, are not guarantees of future
results or performance, and involve substantial risks and uncertainty,
including assumptions and projections concerning our assets under management,
cash inflows and outflows, operating cash flows, our ability to expand
distribution and product offerings, and future credit facilities, for all
forward periods. All of our forward-looking statements are as of the date of
this release only. The company can give no assurance that such expectations or
forward-looking statements will prove to be correct. Actual results may differ
materially.

Our business and our forward-looking statements involve substantial known and
unknown risks and uncertainties, including the following: (a) the effects of
changes and volatility in political, economic or industry conditions, the
interest rate environment, or financial and capital markets; (b) any poor
relative investment performance of our asset management strategies and any
resulting outflows of assets; (c) mutual fund sales in any period may be
through a limited number of financial intermediaries, from a limited number of
investment strategies, and impacted by relative performance and the breadth
and type of investment products we offer; (d) any lack of availability of
additional and/or replacement financing, as may be needed, on satisfactory
terms or at all; (e) any inadequate performance of third-party relationships;
(f) the withdrawal of assets from under our management; (g) our ability to
attract and retain key personnel in a competitive environment; (h) the ability
of independent trustees of our mutual funds and closed-end funds, and other
clients, to terminate their relationships with us; (i) the possibility that
our goodwill or intangible assets could become impaired, requiring a charge to
earnings; (j) the competition we face in our business, including competition
related to investment products and fees; (k) potential adverse regulatory and
legal developments; (l) the difficulty of detecting misconduct by our
employees, subadvisers and distribution partners; (m) changes in accounting or
regulatory standards or rules; (n) the ability to satisfy the financial
covenants under existing debt agreements; and (o) certain other risks and
uncertainties described in our 2011 Annual Report on Form 10-K or in any of
our filings with the Securities and Exchange Commission ("SEC").

Certain other factors which may impact our continuing operations, prospects,
financial results and liquidity or which may cause actual results to differ
from such forward-looking statements are discussed or included in the
company's periodic reports filed with the SEC and are available on our website
at www.virtus.com under "Investor Relations." You are urged to carefully
consider all such factors.

The company does not undertake or plan to update or revise any such
forward-looking statements to reflect actual results, changes in plans,
assumptions, estimates or projections, or other circumstances occurring after
the date of this release, even if such results, changes or circumstances make
it clear that any forward-looking information will not be realized. If there
are any future public statements or disclosures by us which modify or impact
any of the forward-looking statements contained in or accompanying this
release, such statements or disclosures will be deemed to modify or supersede
such statements in this release.

SOURCE Virtus Investment Partners, Inc.

Website: http://www.virtus.com
Contact: Joe Fazzino, +1-860-263-4725, joe.fazzino@virtus.com
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