8-K: Victory Capital Reports December 2025 AUM Decline

Victory Capital Holdings, Inc. reported total client assets of $316.6 billion as of December 31, 2025, alongside negative long-term AUM net flows for the fourth quarter.

Summary

• Victory Capital Holdings, Inc. reported Total Client Assets (TCA) of $316.6 billion as of December 31, 2025, a decrease from $317.664 billion on November 30, 2025.
• Total Assets Under Management (AUM) stood at $313.8 billion on December 31, 2025, down from $314.846 billion in the prior month.
• The company experienced negative long-term AUM net flows of -$2,089 million for the fourth quarter of 2025.
• Average Total AUM for December was $314.5 billion, with average Total Client Assets at $317.3 billion.
• The Solutions asset class increased to $91,228 million from $90,131 million month-over-month.
• Global / Non-U.S. Equity assets grew to $30,680 million from $30,229 million.
• Alternative Investments saw a slight increase to $3,038 million from $2,993 million.
• ETFs increased to $15,049 million from $14,679 million.
• Other Assets, primarily institutional, increased to $2,846 million from $2,818 million.
• The company will release its fourth-quarter 2025 financial results on February 4, 2026, and host a conference call on February 5, 2026.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the overall decrease in Total Client Assets and Total Assets Under Management month-over-month, coupled with significant negative long-term AUM net flows for the quarter. While some asset classes showed growth, the aggregate trend indicates a contraction in managed assets.

Positives

• Solutions asset class experienced growth, increasing to $91,228 million as of December 31, 2025, from $90,131 million in November 2025.
• Global / Non-U.S. Equity assets showed an increase, reaching $30,680 million from $30,229 million month-over-month.
• Alternative Investments grew slightly to $3,038 million from $2,993 million.
• ETF assets increased to $15,049 million from $14,679 million.
• Other Assets, which are low-fee institutional assets, increased to $2,846 million from $2,818 million.

Negatives

• Total Client Assets decreased to $316.6 billion on December 31, 2025, from $317.664 billion on November 30, 2025.
• Total Assets Under Management (AUM) declined to $313.8 billion on December 31, 2025, from $314.846 billion in the previous month.
• The company reported negative long-term AUM net flows of -$2,089 million for the fourth quarter of 2025.
• Fixed Income assets decreased to $80,544 million from $80,827 million.
• U.S. Mid Cap Equity, U.S. Small Cap Equity, and U.S. Large Cap Equity all experienced declines month-over-month.
• Total Long-Term Assets decreased to $310,042 million from $311,070 million.
• Money Market / Short Term Assets decreased to $3,733 million from $3,777 million.
• Mutual Funds decreased to $172,203 million from $173,496 million.
• Separate Accounts and Other Pooled Vehicles decreased to $126,523 million from $126,671 million.
• U.S. regional client assets decreased to $261,821 million from $263,706 million.

Future Outlook

The filing does not provide a future outlook or guidance, but it schedules the release of fourth-quarter 2025 financial results for February 4, 2026, and a subsequent conference call on February 5, 2026, where such information may be discussed.

Industry Context

This announcement provides a snapshot of Victory Capital's asset levels at the close of 2025. The overall decline in AUM and negative long-term net flows could reflect broader market trends, investor sentiment shifts, or specific competitive pressures within the asset management industry during the fourth quarter. The performance across different asset classes (e.g., equity declines vs. growth in solutions and non-U.S. equity) suggests varying investor preferences or market conditions impacting different segments of the investment landscape.

Comparison to Industry Standards

• The reported negative long-term AUM net flows of -$2,089 million for Q4 2025 indicate outflows, which contrasts with some industry peers who may have experienced positive inflows during periods of market recovery or strong performance in specific asset classes. Without direct peer comparisons from the same reporting period, it is difficult to definitively assess if these flows are better or worse than industry averages.
• The month-over-month decline in total AUM and TCA suggests that Victory Capital may have faced headwinds in asset retention or new asset gathering compared to asset managers that reported AUM growth driven by market appreciation or strong sales.
• The growth in Solutions, Global/Non-U.S. Equity, and Alternative Investments, while positive, was not sufficient to offset declines in other significant asset classes like U.S. Equities and Fixed Income, which could indicate a mixed performance relative to diversified asset managers with different asset class exposures.

Stakeholder Impact

• Shareholders: The decline in AUM and negative net flows could impact future revenue and profitability, potentially affecting share price and dividend prospects.
• Employees: Sustained AUM declines could lead to pressure on operational efficiency and potentially impact staffing levels or compensation structures.
• Clients: While AUM figures are reported, the underlying investment performance that drives these flows is not detailed, which is a key factor for client retention and acquisition.

Next Steps

• Victory Capital will report fourth-quarter 2025 financial results after the market closes on Wednesday, February 4, 2026.
• The company will host a conference call on Thursday, February 5, 2026, at 8:00 a.m. ET to discuss the results.

Key Dates

Recommendation

The filing provides a factual update on Assets Under Management and client assets, showing a slight month-over-month decline and negative long-term net flows for the quarter. While some asset classes performed positively, the overall trend is a contraction. A definitive 'buy' or 'sell' recommendation cannot be made solely on AUM figures without the full financial results, including revenue, expenses, and earnings, which are scheduled for release in early February. Therefore, a 'hold' recommendation is appropriate, advising investors to await the comprehensive Q4 2025 financial report for a more complete picture of the company's performance and outlook.

Keywords

Assets Under Management, AUM, Total Client Assets, VCTR, Victory Capital, Asset Management, Financial Results, Investment Flows, Equity, Fixed Income, ETFs, Mutual Funds