Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Earnings Presentation (March 2024)
22 slides from Virtus Investment Partners's earnings presentation, Mar 31, 2024
Slide 1: Virtus Duff & Phelps Water Fund
VIRTUS DUFF & PHELPS WATER FUND March 31, 2024
Slide 2: Important Risk Considerations
IMPORTANT RISK CONSIDERATIONS Market Volatility The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recessio
Slide 3: Virtus Investment Partners Key Facts
VIRTUS INVESTMENT PARTNERS MULTI-ASSET MANAGER KEY FACTS $179.3 Billion in AUM 2 2 35 2 Funds Rated 4 or 5 Stars1 Past performance is not indicative of future results. As of 3/31/24. 1Based on institutional-class or I shares. Please see page 17 for additional Morningstar disclosure. Strong ratings a
Slide 4: Firm Overview
FIRM OVERVIEW A LEADER IN LISTED REAL ASSET INVESTING Reliable Partner DUFF & PHELPS ASSETS UNDER MANAGEMENT: $12.2 B Founded in 1932 as an investment research firm, Duff & Phelps began managing investment portfolios in 1979, and has been a Virtus partner Global since 19951. Real Estate Real Asset
Slide 5: Water Team
WATER TEAM COLLABORATIVE AND EXPERIENCED TEAM APPROACH Investment Years with Member Role Experience Duff & Phelps President, Chief Investment David Grumhaus, Jr. 31 years 10 years Officer, and Portfolio Manager 23 average years Portfolio Manager and investment experience Nick Holmes, CFA 14 years 1
Slide 6: Water Has Been a Compelling Investment
WATER HAS BEEN A COMPELLING INVESTMENT SECULAR GROWTH DRIVEN VALUE CREATION GROWTH OF $1,000 INVESTMENT $12,000 MSCI All Country World Index (ACWI) NR USD Standard & Poor (S&P) Global Water NR Standard & Poor (S&P) 500 TR USD $10,000 $9,839 $8,000 $7,122 $6,000 $5,057 $4,000 $2,000 $0 2001 2004 2007
Slide 7: The Global Water Crisis
THE GLOBAL WATER CRISIS INTENSIFYING WATER RISKS CALL FOR CHANGE Widespread global water stress1 Water challenges gap between global water supply and demand by 20301 of wastewater is untreated globally1 of businesses face substantial risk from water stresses2 Source: 1The UN world water development
Slide 8: The Global Water Crisis: Demand Outstripping Supply
THE GLOBAL WATER CRISIS DEMAND OUTSTRIPPING SUPPLY Current Future in 2050 69% of all water consumption is Food demand to increase by 60% used for agriculture 19% Global water demand for manufacturing of all water is used for will increase by 400% industrial purposes 12% Urban water demand to expand
Slide 9: The Global Water Crisis: Population Growth and Living Standards
THE GLOBAL WATER CRISIS RISING POPULATION GROWTH AND LIVING STANDARDS ARE KEY DRIVERS Population World population expected to increase to ~ 9.8 billion by 2050 growth1 3.6 billion people live in areas that are potentially water-scarce at least one month per year, which could increase to ~ 5.25 b
Slide 10: Three Dimensions to the Water Solution
THREE DIMENSIONS TO THE WATER SOLUTION 1) Water Supply 2) Water Quality 3) Water Efficiency Exploration, engineering, design Filtration Automation controls Wastewater treatment Monitoring and testing Smart meters Pumping stations and pipelines Disinfection chemicals Advanced irriga
Slide 11: Case Studies
CASE STUDIES INVESTMENTS ACROSS WATER SUPPLY, QUALITY AND EFFICIENCY Water Supply Water Quality Water Efficiency Solution: Digital Infrastructure Solution: Emerging Contaminants Solution: Advanced Irrigation One of the leading providers of digital High-end consulting and engineering One of the leadi
Slide 12: Investment Philosophy & Key Facts
VIRTUS DUFF & PHELPS WATER FUND INVESTMENT PHILOSOPHY & KEY FACTS PHILOSOPHY: Tickers A: AWTAX C: AWTCX Institutional: AWTIX Invest in companies P: AWTPX which actively address Benchmark S&P Global Water Index (net), MSCI ACWI Index (net) global water scarcity Fund Inception July 15, 2008 and qualit
Slide 13: Water Investment Process
DUFF & PHELPS WATER INVESTMENT PROCESS Universe Screening Refinement Portfolio Construction # of Stocks approx. 150 # of Stocks approx 75 # of Stocks 30 - 40 Screen for companies with Filter the investable universe Bottom-up research at all levels solutions across Water Supply, on the basis of
Slide 14: Water Investment Process
DUFF & PHELPS WATER INVESTMENT PROCESS Our analysis uncovers trends across water sectors, geographies and markets Multi-factor evaluation contributes to positioning Strategy favors market leaders, or those taking market share, in improving water supply, quality, and efficiency Top-down perspecti
Slide 15: Top Holdings and Characteristics
TOP HOLDINGS AND CHARACTERISTICS Virtus Duff & MSCI AC Phelps Water World Index Top Ten Holdings % of Fund Equity Characteristics Fund (net) Xylem Inc/NY 9.74 Average Weighted 28.13 466.67 Market Cap (bn) Essential Utilities Inc. 5.22 Severn Trent PLC 5.09 Median Market Cap (bn) 11.16 6.43 Ecolab In
Slide 16: Representative Sector & Regional Allocations
REPRESENTATIVE SECTOR & REGIONAL ALLOCATIONS TOP TEN SECTOR ALLOCATIONS 34.7% Virtus Duff & Phelps Water Fund S&P Global Water Index (net) 25.4%24.6% 22.2% 13.9% 11.3% 7.4% 6.9% 6.3% 4.2% 4.4% 5.1% 5.0% 4.4% 4.2% 3.1% 3.9% 2.3% 0.0% 0.0% Industrial Water Utilities Environmental & Trading Building Pr
Slide 17: Performance Review
PERFORMANCE REVIEW AS OF 3/31/24 (%) MORNINGSTAR RATINGSTM Natural 23.22 Institutional Share AWTIX Resources 15.42 Time Period # of Stars # of Funds 12.41 11.22 10.92 10.58 Overall ★★★★ 111 8.77 8.71 8.66 8.20 7.77 7.70 7.67 7.66 6.96 8.20 3 Year 111 7.70 ★★ 5.82 4.59 4.55 4.55 5 Year ★★★★ 105 10 Ye
Slide 18: Key Features
VIRTUS DUFF & PHELPS WATER FUND KEY FEATURES Precision exposure to Targets pure-play companies, committed to addressing water scarcity, sustainable water increasing water quality, and enhancing water efficiency. Investors may benefit fully from the secular growth trend that the water theme represent
Slide 19: Sustainable Development Goal (SDG) Exposure
SUSTAINABLE DEVELOPMENT GOAL (SDG) EXPOSURE NET EXPOSURE FOR EACH SDG WITH A FOCUS ON 6, 9, 11, & 12 Key ESG Metrics: Portfolio Net SDGs Exposure % ■ We have 82% net exposure to SDG 6 1 No Poverty 15% ■ 50% of our companies have disclosed stated SDG targets 2 Zero Hunger 0% 3 Good Health and Wellbei
Slide 20: Water Purity and Impact Measurement
WATER PURITY AND IMPACT MEASUREMENT AT LEAST TWO-THIRDS OF OUR COMPANIES ARE “PURE-PLAY” Purity Water purity is defined by measuring the percentage of cash flows derived from water-oriented businesses and the effect of addressing water scarcity. Very High Pure-play: 51-100% exposure Significant: 21-
Slide 21: Disclosures and Important Information
DISCLOSURES AND IMPORTANT INFORMATION The MSCI AC World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The S&P 500® Index is a
Slide 22: About Virtus
Virtus (NYSE: VRTS) is a distinctive partnership of boutique investment managers, singularly committed to the long-term success of individual and institutional investors. We are not constrained by a single investment approach; rather, we provide access to independent, specialized investment philos
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