The partnership enables Virtus to represent AllianzGI’s investment strategies in the US retail market to existing and potentially new clients
Allianz Global Investors (AllianzGI), an investment management firm, has partnered with asset management firm Virtus Investment Partners, to enhance growth opportunities in the US market.
The companies have signed a partnership agreement, under which Virtus will represent AllianzGI’s investment strategies in the US retail market to existing and potentially new clients.
Under the partnership, Virtus will serve as the investment adviser, distributor and administrator for around $23bn open-end, closed-end and retail separate account assets of AllianzGI.
The partnership is expected to increase Virtus’ mutual fund assets under management by approximately 40% to $54bn and its total AUM to $128bn, based on current asset levels.
Virtus president and chief executive officer George R Aylward said: “This new partnership with AllianzGI is strategically meaningful for us in terms of scale, fit and growth potential.
“We look forward to bringing AllianzGI’s multi-asset, thematic equity, and alternative strategies to our fund and separate account offerings, and the opportunity to partner on joint product development underscores the growth-oriented nature of the alliance.”
AllianzGI teams will manage the strategies of Virtus as subadvisor in US
As part of the partnership, AllianzGI teams will continue to manage the strategies in a subadvisor role and provide continuity for its US retail clients.
AllianzGI’s Dallas-based Value Equity team will join Virtus as an affiliated manager. Formerly known as NFJ Investment Group, the team manages approximately $7bn of the assets.
In addition, the partnership will enable joint product development of investment solutions for retail clients in the US.
By enabling access to AllianzGI’s deep, global investment expertise, the partnership is expected to enhance Virtus’ offerings, while expanding AllianzGI’s access and footprint in the US retail markets.
Furthermore, the fund-related aspects of the partnership are subject to the approval of the AllianzGI US Funds Board and fund shareholders and are expected to be closed by the year-end of 2020.
AllianzGI chief executive officer Tobias C Pross said: “This partnership is truly complementary. Combining AllianzGI’s ongoing portfolio management expertise with Virtus’ strong, focused retail distribution and administrative capabilities is a recipe for mutually beneficial growth in U.S. funds and separate accounts.
“It will allow us to focus our US distribution efforts on the Institutional, Insurance, Sub-Advisory and Non-Resident markets, which are more closely aligned with our strengths in other markets.”