AllianzGI partners with Virtus on US retail client segment
German asset manager Allianz Global Investors (AllianzGI), the investment subsidiary of insurance group Allianz, has sealed a strategic partnership with multi-boutique asset manager Virtus Investment Partners. The transaction, whose financial details were not disclosed, aims at enhancing both firms' growth on the US retail market. Hence, AllianzGI will refocus its US distribution efforts on building its institutional, insurance-related and non-resident businesses while continuing to serve US retail clients as a subadviser.
Concretely, Virtus will become the investment advisor, distributor and/or administrator of AllianzGI’s approximately $23bn in open-end, closed-end and retail separate account assets. It is understood AllianzGI teams will continue to manage the strategies as subadvisors. Moreover, AllianzGI’s Dallas-based Value Equity team [ex-NFJ Investment Group, ed.], managing around $7bn of the assets, will join Virtus as an affiliated manager. The deal would increase Virtus’ mutual fund assets under management by approximately 40 percent to $54bn and its total AUM to $128bn (as of end May 2020). The partnership also provides for future joint product development of investment solutions for retail clients in the US.
A joint statement specifies that the partnership was structured with an alignment of economic interests over time and the fund-related aspects of the partnershipn being subject to the approval of the AllianzGI US Funds Board and fund shareholders, are expected to be completed near year-end.