Victory Capital Reports January 2024 Assets Under Management

Rhea-AI Summary

Victory Capital Holdings, Inc. (NASDAQ: VCTR) reported assets under management of $165.5 billion as of January 31, 2024, with a breakdown by asset class and vehicle. The total AUM includes mutual funds, separate accounts, ETFs, and various asset classes like Solutions, Fixed Income, and Equity.

Insights

Financial Analyst

The reported AUM of Victory Capital Holdings, Inc. offers a snapshot of the company's financial health and operational scale. The slight decrease in AUM from December 31, 2023, to January 31, 2024, suggests a contraction in the value of investments under management, potentially due to market movements or client redemptions. The diversification of assets across various classes such as Solutions, Fixed Income and U.S. Equity categories indicates a strategic spread of risk.

From an investment perspective, the stability in 'Solutions' and a marginal increase in 'U.S. Large Cap Equity' could reflect shifting investor preferences or market trends favoring these categories. However, the decline in 'U.S. Mid Cap Equity' and 'U.S. Small Cap Equity' warrants attention as it could imply underperformance or reduced investor confidence in these sectors. The consistency in 'Alternative Investments' suggests resilience in niche markets or effective hedging strategies.

For stakeholders, the composition of AUM by vehicle reveals investor behavior and product popularity. The slight dip in 'Mutual Funds' and 'ETFs' might indicate a preference shift or competitive pressure. This data is crucial for assessing the company's revenue potential, as management fees are often correlated with AUM volume and composition.

Market Research Analyst

Victory Capital's AUM distribution across different investment vehicles offers insights into broader market trends. The predominance of 'Mutual Funds' in the AUM composition aligns with industry norms where mutual funds often form the backbone of asset management firms. The figures for 'Separate Accounts and Other Pooled Vehicles' and 'ETFs' highlight the firm's presence in tailored investment solutions and the growing ETF market.

The data provided could serve as an indicator of the competitive landscape within the asset management industry. Victory Capital's performance relative to its peers can be inferred by analyzing shifts in AUM and comparing them to industry averages. Furthermore, the AUM figures may indirectly reflect the effectiveness of the company's sales and marketing strategies, as well as its ability to retain and attract clients.

Long-term implications for stakeholders include the potential for changes in strategic direction or product offerings to adapt to market dynamics. The AUM breakdown also enables an evaluation of the company's risk exposure to market volatility, given the varying sensitivities of different asset classes to economic changes.

Economist

The AUM figures reported by Victory Capital Holdings, Inc. serve as a microcosmic reflection of the broader economic environment. Fluctuations in AUM can be influenced by macroeconomic factors such as interest rates, inflation and geopolitical events. The stability in 'Fixed Income' suggests a steady demand for less volatile investments, possibly reflecting a cautious investor sentiment amid economic uncertainty.

Analysis of the AUM trends can also provide insights into capital flows within the economy. For instance, the shift towards 'U.S. Large Cap Equity' from 'U.S. Mid Cap Equity' and 'U.S. Small Cap Equity' might be interpreted as a flight to safety, where investors favor established companies during periods of market stress.

For long-term planning, understanding the economic underpinnings of AUM trends is essential. It allows stakeholders to anticipate potential shifts in investment patterns and to align the company's asset management strategies with projected economic cycles.

SAN ANTONIO--(BUSINESS WIRE)-- Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today reported assets under management (AUM) of $165.5 billion as of January 31, 2024, and average assets under management for January of $165.6 billion.

Victory Capital Holdings, Inc.
Assets Under Management1
(unaudited; in millions)
	As of:
By Asset Class	Jan 31, 2024			Dec 31, 2023
Solutions	$	59,931		$	59,585
Fixed Income		24,307			24,355
U.S. Mid Cap Equity		29,977			30,604
U.S. Small Cap Equity		15,249			15,959
U.S. Large Cap Equity		12,800			12,635
Global / Non-U.S. Equity		16,492			16,772
Alternative Investments		3,446			3,431
Total Long-Term Assets	$	162,202		$	163,340
Money Market / Short Term Assets		3,294			3,271
Total Assets Under Management	$	165,496		$	166,611
By Vehicle
Mutual Funds2	$	107,923		$	108,802
Separate Accounts and Other Pooled Vehicles3		52,682			52,840
ETFs4		4,891			4,970
Total Assets Under Management	$	165,496		$	166,611
1Total AUM includes both discretionary and non-discretionary client assets. Due to rounding, numbers presented in these tables may not add up precisely to the totals provided.
2Includes institutional and retail share classes, money market and VIP funds.
3Includes wrap program accounts, CITs, UMAs, UCITS, private funds, and non-U.S. domiciled pooled vehicles.
4Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products.

About Victory Capital

Victory Capital is a diversified global asset management firm with $165.5 billion in assets under management as of January 31, 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/20240212625187/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 is the ticker symbol for Victory Capital Holdings, Inc.?

The ticker symbol for Victory Capital Holdings, Inc. is VCTR.

What were the assets under management (AUM) reported by Victory Capital Holdings, Inc. as of January 31, 2024?

Victory Capital Holdings, Inc. reported assets under management of $165.5 billion as of January 31, 2024.

What are the different asset classes included in Victory Capital Holdings, Inc.'s AUM report?

The asset classes included in Victory Capital Holdings, Inc.'s AUM report are 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 vehicles are considered in Victory Capital Holdings, Inc.'s AUM calculation?

The vehicles considered in Victory Capital Holdings, Inc.'s AUM calculation are Mutual Funds, Separate Accounts and Other Pooled Vehicles, and ETFs.