8-K: Victory Capital Reports $181.1 Billion in Total Client Assets for September 2024

Victory Capital announced total client assets of $181.1 billion as of September 30, 2024, along with a third-quarter earnings call scheduled for November 8.

Summary

• Victory Capital reported total client assets of $181.1 billion as of September 30, 2024.
• This includes $176.1 billion in total assets under management (AUM) and $5.0 billion in other assets.
• The average total AUM for September was $173.8 billion, with average other assets at $5.0 billion, and average total client assets at $178.7 billion.
• The company experienced net long-term AUM outflows of $2.6 billion during the third quarter.
• The company will release its third-quarter 2024 financial results on November 7, 2024, after market close.
• A conference call to discuss the results is scheduled for November 8, 2024, at 8:00 a.m. ET.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the reported net outflows in long-term AUM, despite the overall high level of client assets. The upcoming earnings call will be crucial.

Positives

• Total client assets reached $181.1 billion, indicating a substantial scale of operations.
• The company has a diversified asset base across various asset classes and investment vehicles.
• Victory Capital has a well-established platform with multiple investment franchises and a solutions business.

Negatives

• The company experienced net long-term AUM outflows of $2.6 billion in the third quarter, which could indicate investor concerns or market challenges.

Risks

• Net outflows in long-term AUM could negatively impact future revenue and profitability.
• Market fluctuations could affect the value of assets under management and client assets.
• The company's performance is subject to broader economic conditions and investor sentiment.

Future Outlook

The company will report third-quarter 2024 financial results on November 7, 2024, and host a conference call on November 8, 2024, to discuss the results.

Industry Context

The asset management industry is highly competitive, and firms are constantly vying for assets under management. Victory Capital's reported AUM and net flows are key indicators of its competitive position and ability to attract and retain client assets.

Comparison to Industry Standards

• Victory Capital's AUM of $176.1 billion places it among mid-sized asset managers, compared to industry giants like BlackRock or Vanguard which manage trillions in assets.
• The reported net outflows of $2.6 billion in long-term AUM are a concern, as many asset managers are experiencing inflows due to market conditions.
• Companies like T. Rowe Price and Franklin Resources, which also operate in the active management space, are often compared to Victory Capital in terms of performance and flows.

Stakeholder Impact

• Shareholders will be interested in the company's financial performance and AUM trends.
• Employees may be affected by the company's financial results and strategic direction.
• Clients will be concerned about the performance of their investments and the company's ability to generate returns.

Next Steps

• The company will release its third-quarter 2024 financial results on November 7, 2024.
• A conference call to discuss the results will be held on November 8, 2024.

Key Dates

Keywords

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