Victory Capital Reports March 2024 Total Client Assets

Rhea-AI Summary

Victory Capital Holdings, Inc. (VCTR) reported Total Assets Under Management (AUM) of $170.3 billion as of March 31, 2024, with Total Client Assets reaching $175.5 billion. The company experienced long-term AUM net outflows of -$1.0 billion for the first quarter. Victory Capital will announce its first-quarter 2024 financial results on May 9, 2024, followed by a conference call on May 10, 2024.

Insights

Financial Analyst

The reported figures by Victory Capital Holdings, including Total Assets Under Management (AUM) and net flows, are pivotal metrics for evaluating the company's performance and potential growth trajectory. The slight increase in AUM from February to March 2024 suggests a positive market reception or effective asset accumulation strategies. However, the reported long-term AUM net outflows of $1.0 billion could indicate challenges in retaining long-term investment or a shift in investor sentiment. This outflow needs to be contextualized against industry benchmarks to assess its severity.

Furthermore, the distribution of assets across different classes and vehicles provides insight into the company's diversification and risk exposure. The growth in U.S. Mid Cap Equity and Global/Non-U.S. Equity could reflect a strategic allocation that resonates with current market trends. Investors should monitor the performance of these segments closely, as they could significantly influence the company's overall financial health.

Market Research Analyst

Victory Capital's announcement includes details that help in understanding the company's market positioning and investor behavior. The increase in Solutions and Fixed Income assets suggests a possible trend towards more conservative investment strategies, likely influenced by the broader economic environment. It's important to consider how macroeconomic factors, such as interest rates and geopolitical tensions, might be affecting investor decisions and, consequently, Victory Capital's asset composition.

The shift in Other Assets and the slight decrease in Money Market/Short Term Assets could reflect a change in institutional investor strategies or a response to market liquidity conditions. These shifts are worth noting as they can have implications for the company's revenue streams, given the different fee structures associated with various asset types and investment vehicles.

Economist

The report from Victory Capital Holdings provides a snapshot of the company's financial health within the broader context of the financial services industry. The data on AUM and client assets are indicators of the company's market share and competitive standing. While the company shows a modest AUM increase, the negative net flows raise questions about the sustainability of growth and the potential impact on future earnings. In a macroeconomic perspective, these figures could be reflecting broader market trends, such as shifts in risk tolerance among investors, or specific to the company's performance.

It's important to analyze these results in light of current economic conditions, including inflation rates, fiscal policies and market volatility, to forecast their potential impact on Victory Capital's operations. The company's ability to navigate these conditions and adjust its investment strategies accordingly will be essential for maintaining and growing its AUM.

Schedules First-Quarter Financial Results Conference Call for May 10

SAN ANTONIO--(BUSINESS WIRE)-- Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today reported Total Assets Under Management (AUM) of $170.3 billion, Other Assets of $5.1 billion, and Total Client Assets of $175.5 billion, as of March 31, 2024.

For the month of March, Average Total AUM was $167.6 billion, average Other Assets was $5.3 billion, and average Total Client Assets was $172.9 billion.

For the first quarter, the Company reported long-term AUM net flows of -$1.0 billion.

Victory Capital Holdings, Inc.
Total Client Assets (unaudited; in millions) 1
	As of:
By Asset Class	Mar 31, 2024			Feb 29, 2024
Solutions	$	57,833		$	56,356
Fixed Income		24,481			24,217
U.S. Mid Cap Equity		32,918			31,300
U.S. Small Cap Equity		16,297			15,699
U.S. Large Cap Equity		13,895			13,501
Global / Non-U.S. Equity		18,200			17,050
Alternative Investments		3,465			3,411
Total Long-Term Assets	$	167,089		$	161,533
Money Market / Short Term Assets		3,253			3,330
Total Assets Under Management2	$	170,342		$	164,863
By Vehicle
Mutual Funds3	$	113,897		$	110,832
Separate Accounts and Other Pooled Vehicles4		51,217			49,024
ETFs5		5,229			5,007
Total Assets Under Management	$	170,342		$	164,863
Other Assets6
Institutional	$	5,117		$	5,471
Total Other Assets	$	5,117		$	5,471
Total Client Assets
Total Assets Under Management	$	170,342		$	164,863
Total Other Assets		5,117			5,471
Total Client Assets	$	175,459		$	170,334

¹Due to rounding, numbers presented in these tables may not add up precisely to the totals provided.
²Total AUM includes both discretionary assets 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 and 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 within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1.

First-Quarter Conference Call and Webcast Details

Victory Capital will report first-quarter 2024 financial results after the market closes on Thursday, May 9, 2024. The Company will host a conference call the following morning, May 10, at 8:00 a.m. ET to discuss the results. Victory Capital’s earnings release and supplemental materials will be available on the investor relations section of the Company’s website at https://ir.vcm.com before the conference call begins.

To participate in the conference call, please call 1-888-330-3571 (domestic) or 1-646-960-0657 (international), shortly before 8:00 a.m. ET and reference the Victory Capital Conference Call. A live, listen-only webcast will also be available via the investor relations section of the Company’s website at https://ir.vcm.com. For anyone who is unable to join the live event, an archive of the webcast will be available for replay, at the same location, shortly after the call concludes.

About Victory Capital

Victory Capital is a diversified global asset management firm with total assets under management of $170.3 billion, and $175.5 billion in total client assets, as of March 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/20240409772555/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 (VCTR) Total Assets Under Management (AUM) as of March 31, 2024?

Victory Capital Holdings, Inc. (VCTR) reported Total Assets Under Management (AUM) of $170.3 billion as of March 31, 2024.

What were Victory Capital Holdings, Inc.'s (VCTR) Total Client Assets as of March 31, 2024?

Victory Capital Holdings, Inc. (VCTR) reported Total Client Assets of $175.5 billion as of March 31, 2024.

What were Victory Capital Holdings, Inc.'s (VCTR) long-term AUM net flows for the first quarter?

Victory Capital Holdings, Inc. (VCTR) reported long-term AUM net flows of -$1.0 billion for the first quarter.

When will Victory Capital Holdings, Inc. (VCTR) announce its first-quarter 2024 financial results?

Victory Capital Holdings, Inc. (VCTR) will announce its first-quarter 2024 financial results on May 9, 2024.

When is Victory Capital Holdings, Inc.'s (VCTR) conference call to discuss the first-quarter 2024 financial results?

Victory Capital Holdings, Inc.'s (VCTR) conference call to discuss the first-quarter 2024 financial results will be on May 10, 2024, at 8:00 a.m. ET.