Victory Capital Reports February 2024 Total Client Assets

Rhea-AI Summary

Victory Capital Holdings, Inc. (VCTR) reported Total Assets Under Management of $164.9 billion, Other Assets of $5.5 billion, and Total Client Assets of $170.3 billion as of February 29, 2024. The company's Average Total Assets Under Management for February were $162.8 billion. Victory Capital Holdings, Inc. detailed the breakdown of Total Client Assets by asset class, showing growth across various categories.

Insights

Market Research Analyst

The reported increase in Victory Capital Holdings' Total Assets Under Management (AUM) from $160.174 billion to $164.863 billion indicates a positive trend in the company's asset accumulation over the month. A rise in AUM is often seen as a sign of investor confidence and can lead to an increase in management fee revenue, a critical component of an asset management firm's earnings. Furthermore, the growth across various asset classes, particularly in 'Solutions' and 'U.S. Mid Cap Equity', suggests a diversification in the company's portfolio, which can be appealing to investors seeking balanced exposure.

Analyzing the distribution of assets by vehicle, the majority remains in Mutual Funds, which is consistent with the industry norm for retail investors. However, the growth in Exchange-Traded Funds (ETFs) is notable, as these products have been gaining popularity due to their lower costs and liquidity. The shift towards ETFs could signal a strategic response to changing market demands.

It is also important to recognize the restatement of 'Other Assets', which now includes low-fee institutional assets. This reclassification may affect the perceived revenue potential from these assets, given the lower fee structure. Stakeholders should monitor how this restatement impacts future earnings reports and whether it aligns with industry practices on reporting regulatory AUM.

Financial Analyst

The financial health of Victory Capital can be partially inferred from the reported AUM, as it directly impacts revenue through management fees. The reported month-over-month increase in AUM and Other Assets suggests a positive inflow or appreciation in asset values, which could translate to higher revenue in the upcoming quarters. For investors, this could potentially mean an improved earnings outlook for the company.

It is also critical to assess the Average Total AUM, which provides a more stable view of the company's performance, smoothing out short-term fluctuations. The reported average suggests that the company maintained a relatively steady asset base throughout the month, which could indicate stability in the underlying business model.

From a financial analysis standpoint, the key figures to watch in subsequent earnings reports will be the management fee margins derived from the AUM and the operating expenses associated with managing the increased asset base. Any significant deviation from expected margins or cost structures could impact the company's profitability.

Economist

The reported figures by Victory Capital reflect broader economic trends, such as market performance and investor sentiment. The increase in AUM suggests a favorable economic environment or effective company strategies that attract capital. The allocation of assets across different classes and vehicles also provides insight into current market trends, such as the preference for mid-cap equities, which may be perceived as a middle ground between the growth potential of small caps and the stability of large caps.

The company's performance in the context of economic indicators such as interest rates, inflation and GDP growth can also be significant. For example, fixed income assets may be influenced by interest rate changes, while equity classes respond to corporate earnings and economic forecasts. Understanding these relationships can help stakeholders anticipate how Victory Capital's AUM might be affected by economic shifts.

Long-term, the ability of Victory Capital to adapt to economic cycles and maintain AUM growth will be crucial for sustained success. The economic landscape will dictate the strategies the company must employ to continue attracting and managing investor assets effectively.

SAN ANTONIO--(BUSINESS WIRE)-- Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today reported Total Assets Under Management (AUM) of $164.9 billion, Other Assets of $5.5 billion, and Total Client Assets of $170.3 billion, as of February 29, 2024.

For the month of February, Average Total Assets Under Management was $162.8 billion, average Other Assets was $5.3 billion, and average Total Client Assets was $168.1 billion.

Victory Capital Holdings, Inc.
Total Client Assets (unaudited; in millions) 1
	As of:
By Asset Class	Feb 29, 2024			Jan 31, 2024
Solutions	$	56,356		$	54,610
Fixed Income		24,217			24,307
U.S. Mid Cap Equity		31,300			29,977
U.S. Small Cap Equity		15,699			15,249
U.S. Large Cap Equity		13,501			12,800
Global / Non-U.S. Equity		17,050			16,492
Alternative Investments		3,411			3,446
Total Long-Term Assets	$	161,533		$	156,881
Money Market / Short Term Assets		3,330			3,294
Total Assets Under Management2	$	164,863		$	160,174
By Vehicle
Mutual Funds3	$	110,832		$	107,923
Separate Accounts and Other Pooled Vehicles4		49,024			47,360
ETFs5		5,007			4,891
Total Assets Under Management	$	164,863		$	160,174
Other Assets6
Institutional	$	5,471		$	5,322
Total Other Assets	$	5,471		$	5,322
Total Client Assets
Total Assets Under Management	$	164,863		$	160,174
Total Other Assets		5,471			5,322
Total Client Assets	$	170,334		$	165,496

1Due to rounding, numbers presented in these tables may not add up precisely to the totals provided.

2Total AUM includes both discretionary asset under management and non-discretionary assets under advisement and excludes Other Assets.

3Includes institutional and retail share classes, money market and VIP funds.

4Includes wrap program accounts, CITs, UMAs, UCITS, private funds, and non-U.S. domiciled pooled vehicles.

5Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products.

6Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class and in Separate Accounts and Other Pooled Vehicles. Prior-period values have been restated accordingly. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1.

About Victory Capital

Victory Capital is a diversified global asset management firm with total assets under management of $164.9 billion, and $170.3 billion in total client assets, as of February 29, 2024. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.

Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit www.vcm.com or follow Victory Capital on Facebook, Twitter, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311761361/en/

Investors:

Matthew Dennis, CFA

Chief of Staff

Director, Investor Relations

216-898-2412

mdennis@vcm.com



Media:

Jessica Davila

Director of Global Communications

210-694-9693

Jessica_davila@vcm.com

Source: Victory Capital Holdings, Inc.

FAQ

What were Victory Capital Holdings, Inc.'s Total Assets Under Management as of February 29, 2024?

Victory Capital Holdings, Inc.'s Total Assets Under Management were $164.9 billion as of February 29, 2024.

What were Victory Capital Holdings, Inc.'s Total Client Assets as of February 29, 2024?

Victory Capital Holdings, Inc.'s Total Client Assets were $170.3 billion as of February 29, 2024.

How much were Victory Capital Holdings, Inc.'s Average Total Assets Under Management for February?

Victory Capital Holdings, Inc.'s Average Total Assets Under Management for February were $162.8 billion.

What asset classes were included in Victory Capital Holdings, Inc.'s Total Client Assets breakdown?

The asset classes included in Victory Capital Holdings, Inc.'s Total Client Assets breakdown were Solutions, Fixed Income, U.S. Mid Cap Equity, U.S. Small Cap Equity, U.S. Large Cap Equity, Global / Non-U.S. Equity, and Alternative Investments.

What types of vehicles were included in Victory Capital Holdings, Inc.'s Total Assets Under Management?

The types of vehicles included in Victory Capital Holdings, Inc.'s Total Assets Under Management were Mutual Funds, Separate Accounts and Other Pooled Vehicles, and ETFs.

What was the breakdown of Victory Capital Holdings, Inc.'s Other Assets?

Victory Capital Holdings, Inc.'s Other Assets included Institutional assets of $5.471 billion.

What was the restated category included in Victory Capital Holdings, Inc.'s Other Assets?

The restated category included in Victory Capital Holdings, Inc.'s Other Assets was low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class and in Separate Accounts and Other Pooled Vehicles.