Virtus Investment Partners, Inc. · NYSE:VRTS
Virtus Investment Partners — Investor Presentation (March 2016)
26 slides from Virtus Investment Partners's investor presentation, Mar 31, 2016
Slide 1: Euclid International ADR Equity Managed Account Strategy
Euclid International ADR Equity Managed Account Strategy March 31, 2016
Slide 2: Table of Contents
TABLE OF CONTENTS I. Organizational Overview II. Investment Principles, Objective, and Process III. Portfolio Construction IV. Performance and Characteristics V. Summary VI. Appendix OVERVIEW PAGE 2
Slide 3: Investment Partners
INVESTMENT PARTNERS Virtus * offers an array of distinctive capabilities * * from our investment partners * * * * * * *Virtus Investment Partners has an ownership interest in the firm. OVERVIEW PAGE 3
Slide 4: Virtus Investment Partners
VIRTUS INVESTMENT PARTNERS ► Virtus is an independent publicly traded asset management company(NASDAQ: VRTS) ► Disciplined, institutional-quality money management through wholly owned subsidiaries and select subadvisers, each with a distinct investment philosophy and style ► Investment products incl
Slide 5: Euclid Organizational Overview
EUCLID ORGANIZATIONAL OVERVIEW Euclid Advisors LLC ► Euclid Advisors is a New York City-based investment management boutique with a dedicated international equity team ► Affiliated manager of Virtus Investment Partners ► We have the benefit of being supported by the broader resources of Virtus while
Slide 6: Firm Overview
FIRM OVERVIEW Key Euclid International Team Members Frederick A. Brimberg John L. Creswell Senior Managing Director Senior Managing Director International Equity Portfolio Manager Business & Portfolio Management Investment Business Research Operations & Compliance Development & Trading Administratio
Slide 7: Investment Principles
INVESTMENT PRINCIPLES ► High conviction portfolio of International stocks ► Seeks to find the 30-40 “Best Ideas” in markets outside the U.S. ► Process is driven by bottom-up fundamental research with a focus on cash flow ► Style is opportunistic with a value and quality bias ► Invests primarily in m
Slide 8: Investment Process Overview
INVESTMENT PROCESS OVERVIEW 1. Idea Generation PORTFOLIO PRICE Quantitative Screens CONSTRUCTION Sector Analysis Street Research Professional Network 4. Portfolio Monitoring 2. Fundamental Research 30-40 names continuously Global-macro work Valuation supports and monitored for rebalance or sale Fina
Slide 9: Investment Approach – Bottom-Up Research
INVESTMENT APPROACH – BOTTOM-UP RESEARCH Four Essential Factors Drive Stock Selection 4. MANAGEMENT ABILITY 1. VALUATION 2. FINANCIAL STRENGTH 3. FRANCHISE QUALITY & ALIGNMENT Forward Looking Income Statement Competitive Advantages Management Track Record Perspective: Cash Flow Sales growt
Slide 10: Global Macro Research Approach
GLOBAL MACRO RESEARCH APPROACH Pragmatism dictates that we understand our environment Global and Regional Monetary policy Political uncertainty Government legislation Sector Geopolitical tensions Country Selection Direction of interest rates Economic growth Country Rule of Law Po
Slide 11: Fundamental Informed by Macro Views
FUNDAMENTAL INFORMED BY MACRO VIEWS How we bring bottom-up and top-down together During periods of structural instability, secular shifts, or uncompensated risk we give our top-down views more weight volatility “ W e are stock-pickers first and foremost but experience has taught us that there are ti
Slide 12: Portfolio Construction
PORTFOLIO CONSTRUCTION Characteristics Rationale Risk Typically 30-40 holdings Diversify portfolio while maintaining conviction Management Maximum weight of individual holding is 6% Protect against overconfidence Invest in companies with market cap over $3 billion Allows for ample liquid
Slide 13: Characteristics as of 3/31/16
CHARACTERISTICS AS OF 3/31/16 Euclid International ADR MSCI Strategy EAFE ® Index Weighted Average Market Cap ($bn) $44.4 $43.8 Weighted Median Market Cap ($bn) $31.0 $25.1 Forward Price-to-Earnings (Weighted Harmonic Average) 15.5x 15.0x Forward Price-to-Cash Flow (Weighted Harmonic Average) 9.3x 7
Slide 14: Sector Allocation as of 3/31/16
SECTOR ALLOCATION AS OF 3/31/16 (in %) 23.8 Euclid International ADR Strategy MSCI EAFE® 17.1 13.2 13.5 12.7 11.7 11.5 10.6 10.4 9.4 9.3 8.6 7.8 6.7 6.1 5.1 5.1 4.9 3.9 4.2 4.7 0.0 Consumer Telecom Technology Health Consumer Financials Materials Industrials Utilities Energy Cash Discretionary Care S
Slide 15: Regional Allocation as of 3/31/16
REGIONAL ALLOCATION AS OF 3/31/16 Euclid International Region Country ADR Strategy MSCI EAFE® Index Difference Europe Ex-UK Netherlands 8.7% 3.1% 5.6% Norway 5.6 0.6 5.0 Germany 3.1 9.2 -6.1 France 2.9 10.0 -7.1 Ireland 2.7 0.5 2.2 Israel 2.7 0.7 2.0 Italy 2.5 2.2 0.3 Austria 0.0 0.2 -0.2 Belgium 0.
Slide 16: Top Ten Holdings as of 3/31/16
TOP TEN HOLDINGS AS OF 3/31/16 Company % of Strategy Country Allergan PLC 4.4 United Kingdom KDDI Corp 3.6 Japan Marine Harvest ASA 3.5 Norway ORIX Corp 3.5 Japan Bridgestone Corp 3.5 Japan WPP PLC 3.4 United Kingdom Randgold Resources Ltd 3.3 United Kingdom Airbus Group SE 3.1 Netherlands SAP SE 3.
Slide 17: Strong Performance Across Market Cycles
STRONG PERFORMANCE ACROSS MARKET CYCLES UP/DOWN CAPTURE RATIO Euclid International ADR MSCI Strategy EAFE® Index 99.6% 100.0% 100.0% Alpha 79.8% 5.19% 0.00% Beta 0.85 1.00 Sharpe Ratio 0.47 0.17 Standard Deviation 16.55% 18.45% Upside Downside Euclid International ADR Strategy MSCI EAFE Data as of M
Slide 18: Euclid International ADR Strategy Performance Review
EUCLID INTERNATIONAL ADR STRATEGY P E R F O R M AN C E R E V I E W AS O F 3 / 3 1 / 1 6 ( i n %) Since QTD 1 Year 3 Year 5 Year Inception* Euclid International ADR Equity -3.66 -7.01 3.11 3.86 7.96 Managed Account Strategy (Gross) Euclid International ADR Equity -4.39 -9.78 0.07 0.80 4.78 Managed Ac
Slide 19: Why Euclid International ADR Strategy?
WHY EUCLID INTERNATIONAL ADR STRATEGY? 1. Searching International markets for a “Best Ideas” portfolio of 30-40 stocks 2. Disciplined process with a focus on Value and Quality 3. Favorable return profile combined with low standard deviation relative to our index and peer group 4. Dynamic macro resea
Slide 20: Team Professionals
TEAM PROFESSIONALS Frederick A. Brimberg, Senior Managing Director and International Portfolio Manager Frederick Brimberg is a senior managing director and international equity portfolio manager at Euclid Advisors, an investment management affiliate of Virtus Investment Partners. Mr. Brimberg’s care
Slide 21: Team Professionals
TEAM PROFESSIONALS Anthony D’Amore, Senior Equity Trader Anthony D’Amore is a senior equity trader with Euclid Advisors LLC, an investment management affiliate of Virtus Investment Partners. Mr. D’Amore has deep expertise in trading international stocks across all major markets around the world, inc
Slide 22: Team Professionals
TEAM PROFESSIONALS Rowena L. Harbour, Operations and Performance Manager Rowena Harbour is an Operations and Performance Manager at Euclid Advisors, an investment management affiliate of Virtus Investment Partners. Ms. Harbour has broad experience in asset management operations, performance reportin
Slide 23: Notes and Disclosures
NOTES AND DISCLOSURES It should not be assumed that securities identified were or will be profitable. Portfolio holdings information is based on a representative account and do not represent all of the securities held in client portfolios. The securities identified may no longer be held in client po
Slide 24: Performance Disclosure Euclid International ADR Equity Managed Account Composite
PERFORMANCE DISCLOSURE EUCLID INTERNATIONAL ADR EQUITY MANAGED ACCOUNT COMPOSITE Euclid Advisors LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Euclid Advisors LLC has been independently
Slide 25: Performance Disclosure Euclid International ADR Equity Managed Account Composite
PERFORMANCE DISCLOSURE EUCLID INTERNATIONAL ADR EQUITY MANAGED ACCOUNT COMPOSITE Total Total Accounts Percent of Gross Net MSCI Composite Benchmark Composite Year Firm Composite at Bundled Annual Annual EAFE 3 Year 3 Year Dispersion Assets Assets Year End Fee Return Return Index Standard Standard ($
Slide 26: 1540 Broadway, Suite 1630, New York
1540 BROADWAY, SUITE 1630, NEW YORK, NY 10036 contact@euclidadv.com 3176 (04-16) © 2016 Virtus Investment Partners, Inc.
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