8-K: Victory Capital Reports $173.8 Billion in Total Client Assets for June 2024, Schedules Q2 Earnings Call

Victory Capital announced total client assets of $173.8 billion as of June 30, 2024, and scheduled its second-quarter earnings call for August 2, 2024.

Summary

• Victory Capital reported total client assets of $173.8 billion as of June 30, 2024.
• This includes $168.7 billion in total assets under management (AUM) and $5.1 billion in other assets.
• The average total AUM for June was also $168.7 billion, with average other assets at $5.0 billion, and average total client assets at $173.8 billion.
• The company experienced net long-term AUM outflows of $1.7 billion during the second quarter.
• The company will release its second-quarter 2024 financial results on August 1, 2024, after market close.
• A conference call to discuss the results will be held on August 2, 2024, at 8:00 a.m. ET.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the reported net outflows, despite the large AUM. The upcoming earnings call will be important to understand the reasons for the outflows and the company's strategy.

Positives

• Total client assets reached $173.8 billion, indicating a substantial scale of operations.
• The company has a diversified asset base across various asset classes and investment vehicles.
• Victory Capital has scheduled a conference call to discuss the second-quarter results, demonstrating transparency.

Negatives

• The company experienced net long-term AUM outflows of $1.7 billion in the second quarter, which could indicate investor concerns or market challenges.

Risks

• The net long-term AUM outflows of $1.7 billion could signal potential challenges in attracting and retaining client assets.
• Market fluctuations could impact the value of assets under management and overall financial performance.

Future Outlook

The company will report second-quarter 2024 financial results on August 1, 2024, and host a conference call on August 2, 2024, to discuss the results.

Industry Context

This announcement is typical for asset management firms, providing a monthly update on assets under management and scheduling the quarterly earnings call. The net outflows are a point of concern and will likely be a focus of the earnings call.

Comparison to Industry Standards

• Victory Capital's AUM of $168.7 billion places it among mid-sized asset managers.
• Companies like T. Rowe Price and Franklin Resources have significantly larger AUM, while firms like Affiliated Managers Group have a similar business model but different AUM.
• The $1.7 billion net outflow is a negative trend, as many asset managers are experiencing inflows due to market conditions.

Stakeholder Impact

• Shareholders will be interested in the second-quarter financial results and the reasons for the net outflows.
• Clients will be monitoring the performance of their investments and the company's overall AUM.
• Employees will be impacted by the company's financial performance and strategic direction.

Next Steps

• Victory Capital will report second-quarter 2024 financial results on August 1, 2024.
• The company will host a conference call on August 2, 2024, to discuss the results.

Key Dates

Keywords

Assets Under Management, AUM, Client Assets, Financial Results, Earnings Call, Investment Management, Net Flows, Victory Capital