Virtus Artificial Intelligence & Technology Opportunities Fund AIO

Competitive advantage analysis · financial-services

Asset Management Specialized
Overall moat score
73/100
Moderate

Ranked against 174 peers in Asset Management

Key strengths

  • High Return on Equity Return on equity ranks highly vs peers (score 0.83).
  • Conservative Leverage Leverage is conservative vs peers (score 0.76).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Fee Revenue Quality

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Signals, strengths and risks for Fee Revenue Quality

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Signals, strengths and risks for Client Retention & Revenue Stickiness

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Signals, strengths and risks for Compensation Discipline

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Earnings Quality & Cash Conversion

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Signals, strengths and risks for Balance Sheet Strength

Where AIO ranks in Asset Management

Virtus Artificial Intelligence & Technology Opportunities Fund ranks #5 of 173 scored companies in Asset Management by moat score — the top 3%. The widest moat in the group is Sound Point Meridian Capital Inc (SPMC) at 77/100.

# Company Moat score Rating
1 Sound Point Meridian Capital Inc SPMC 77/100 Strong
2 BlackRock Capital Allocation Term Trust BCAT 76/100 Strong
3 187480 BRW 74/100 Moderate
4 Blue Owl Capital Corporation OBDC 73/100 Moderate
5 Virtus Artificial Intelligence & Technology Opportunities Fund AIO 73/100 Moderate
6 StoneCastle Financial Corp BANX 72/100 Moderate
7 Northern Trust Corporation NTRS 72/100 Moderate
8 Highland Global Allocation Fund HGLB 72/100 Moderate
9 AllianceBernstein Holding L.P. AB 71/100 Moderate

See every Asset Management & Capital Markets company ranked by moat score →

How AIO scores on the Asset Management Specialized defenses

Fee Revenue Quality

Not measurable · 20% of the moat score

Fee revenue quality is the ability to charge above the industry's falling average and keep charging it.

Client Retention & Revenue Stickiness

Score 59 · 18% of the moat score

Assets under management leave far more easily than they arrive, and the fee leaves with them.

Compensation Discipline

Not measurable · 18% of the moat score

Compensation is the largest expense in asset management and the one that decides whether a good year ever reaches shareholders.

Capital Efficiency

Score 81 · 20% of the moat score

Asset managers are asset-light: with little capital employed, a healthy business should earn a very high return on equity, and a merely average one is a real warning.

Earnings Quality & Cash Conversion

Score 72 · 14% of the moat score

Reported profits here can be flattered by performance fees, seed-capital gains and consolidated fund accounting, none of which recur reliably.

Balance Sheet Strength

Score 81 · 10% of the moat score

Because the business needs so little capital, an asset manager carrying meaningful debt has usually borrowed to buy another manager or to fund distributions.

How each Asset Management Specialized defense is measured, in full →

Understanding AIO's moat

What is Virtus Artificial Intelligence & Technology Opportunities Fund's moat score?

Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #5 of 173 scored companies in Asset Management, the top 3%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 174 companies in Asset Management. Its strongest defense is Capital Efficiency (81/100) and its weakest is Client Retention & Revenue Stickiness (59/100).

How does Virtus Artificial Intelligence & Technology Opportunities Fund compare with other Asset Management companies?

Virtus Artificial Intelligence & Technology Opportunities Fund ranks #5 of 173 scored companies in Asset Management by moat score. The widest moat in Asset Management is Sound Point Meridian Capital Inc (SPMC) at 77/100. The companies ranked closest are Blue Owl Capital Corporation (OBDC) at 73 just above it and StoneCastle Financial Corp (BANX) at 72 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Asset Management Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 174 companies in Asset Management. The defenses are then weighted to produce the overall score out of 100.

Why is Virtus Artificial Intelligence & Technology Opportunities Fund scored with the Asset Management Specialized template?

An asset manager owns almost nothing. It charges a fee on someone else's money, pays much of that fee out in compensation, and keeps the remainder — so its economics turn on the fee rate it can defend, whether client money stays, and how much revenue survives the bonus pool. The Asset Management template scores those questions rather than the balance sheet, which in this industry is largely beside the point.

Which competitive defenses are measured for Virtus Artificial Intelligence & Technology Opportunities Fund?

The Asset Management Specialized template measures 6 defenses, and AIO scores: Fee Revenue Quality (not measurable), Client Retention & Revenue Stickiness (59), Compensation Discipline (not measurable), Capital Efficiency (81), Earnings Quality & Cash Conversion (72), Balance Sheet Strength (81). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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