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Updated on Thursday, September 30, 2021
Victory Capital is an asset management company with 10 independent franchises, plus its own brand of portfolio management. It’s headquartered in San Antonio, but has offices across the country. The firm’s more than 160 advisors solely offer investment management — they do not offer related services, such as financial planning.
The bottom line: Victory Capital Management provides portfolio management to individuals and institutions that invest a minimum of $500,000 for a private fund.
- Offers customized solutions and pre-designed funds
- Multiple franchises allow clients to choose from a variety of investment strategies
- Does not offer services other than investment management
|Assets under management (AUM): $153,457,429,732|
|Minimum investment: $500,000 for a private fund|
|Individual investor to advisor ratio: 11:1|
|Fee structure: A percentage of AUM, fixed fees and performance-based fees|
|Headquarters: 15935 La Cantera Parkway, San Antonio, TX 78256
All information included in this profile is accurate as of September 17, 2021. For more information, please consult Victory Capital Management’s website.
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Overview of Victory Capital Management firm
Originally known as Cleveland Trust, the firm was established over a century ago, on Dec. 1, 1894. After a series of mergers and acquisitions, Victory Capital Management became what it is today, an independent investment management firm with 10 autonomous investment franchises. Its current name was established in 2001. As of 2020, it had over $153 billion AUM, managed by a staff of nearly 440 individuals, more than 160 of which are advisors.
Victory Capital Management’s pros
- Standard fees: Industry average fees typically range from 0.59% to 1.18% of AUM, according to an AdvisoryHQ study. Victory Capital Management charges percentage fees between 0.10% and 1.25%, and annual flat fees between $25,000 and $62,500.
- Six awards in the last five years: The firm won three Refinitiv Lipper Fund Awards in 2021 and won three others in 2020, 2018 and 2016. It also ranked 7th in Barron’s 2019 Top Fund Families for the five-year period and ranked 10th for the 10-year period.
- Corporate social responsibility: In July 2020, Victory Capital Management became a signatory to the United Nations-supported Principles for Responsible Investment. It published its first corporate social responsibility report in the following year.
- Long history: The firm traces its history back over 127 years, to 1894, through predecessor firms.
Victory Capital Management’s cons
- Potential conflicts of interest: Advisors are incentivized to recommend proprietary investment products. In addition, third-party wrap program sponsors that complete transactions on non-discretionary investment services could cause conflict in the aggregations of orders, the selection of brokers and the timing of model deliveries.
- Potentially aggressive strategies: The firm charges performance-based fees: This means that brokers may take risks, aiming to achieve greater portfolio performance.
- Few services: Victory Capital Management doesn’t offer other services, such as tax, accounting or legal advice.
What types of clients does Victory Capital Management firm serve?
Victory Capital Management works with far more individual investors than high net worth individuals (the Securities and Exchange Commission (SEC) defines a person with high net worth as having at least $750,000 managed with the advisor or a total net worth of $1.5 million and up). Individual investors provide $3.3 billion to the firm’s AUM total; high net worth individuals provide only $300 million.
This may be due to the fairly typical minimum account requirement: $500,000 for a private fund. The minimums are significantly higher for Victory’s other funds: $5 million for an equity fund, and $10 million for a fixed income fund. The highest minimum is $50 million for a few specific fixed income funds. The largest source of assets that the firm manages comes from other investment companies, totalling $131.6 billion.
Services offered by Victory Capital Management
Victory Capital Management focuses on managing investments and giving investment advice. It provides:
- Portfolio planning services
- College savings services
- Discretionary investment guidance
- Non-discretionary investment guidance
It doesn’t provide any legal or accounting services that you may find available at other firms, such as financial planning, estate planning, trust planning, divorce services, 401(k) services, insurance planning, tax services or corporate executive services.
How Victory Capital Management invests your money
Composed of 10 independent franchises plus its own house, Victory Capital Management has a variety of investment strategies outlined in the table below. The firm aims to provide a boutique investment experience with the backing of a large, integrated organization.
Here are some definitions of the strategies that Victory Capital Management uses:
- Active investing requires hands-on attention from a person who will adjust the portfolio according to market conditions and the investor’s objectives.
- Fundamental analysis seeks out undervalued assets to purchase and liquidates them when it determines they are overpriced.
- Institutional strategies pool funds together and then diversify them into different asset classes and funds, such as mutual funds and exchange-traded funds (ETFs).
- Long-term capital gains are defined by the IRS as profit earned from holding an asset for over a year, but some strategies could aim to hold assets for a decade.
- Qualitative strategy bases investment choices off non-quantifiable data such as a business team’s leadership expertise.
- Quantitative methods use computer algorithms to buy and sell according to pre-set triggers.
|Victory Capital franchise||Investment strategy & focus|
|INCORE Capital Management||Strategy: Fundamental, quantitative and qualitative
Focus: Fixed income, total return and convertible securities; government- and mortgage-backed portfolios
|Integrity Asset Management||Strategy: Institutional and fundamental
Focus: Value-oriented equities; micro- to mid- cap
|Munder Capital Management||Strategy: Fundamental
Focus: Growth and core equity; multi-, mid- and small-cap
|NewBridge Asset Management||Strategy: Rigorous analysis
Focus: Large cap, high-conviction U.S. equity
|RS Investments||Strategy: Deep research and active management
Focus: Long-term strategies; growth, value and global equities
|Sophus Capital||Strategy: Fundamental and quantitative
Focus: Emerging market equities
|Sycamore Capital||Strategy: Long-term, risk averse
Focus: Mid- and small-cap value
|THB Asset Management||Strategy: Actively managed and mindful of environmental, social and governance (ESG) factors
Focus: Niche equity; U.S. micro-, small- and mid-cap, and international and global small-cap assets
|Trivalent Investments||Strategy: Fundamental and quantitative
Focus: International equity
|USAA Investments||Strategy: Fundamental
Focus: High-yield fixed income
|Victory Capital Solutions||The asset class, geography and investment approach is customized based on the client|
Fees Victory Capital Management charges for its services
By investing with Victory Capital Management, you may be subject to three types of fees: asset-based, performance-based and wrap fees or third-party fees.
Asset-based fees are determined primarily on the type of investment strategy and the type and size of the account. At the high end, Victory Capital charges a 1.25% fee, plus a flat fee of $62,500 for the first $50 million of some actively managed, domestic equity funds. Larger accounts have lower percentage fees. The lowest fee in the firm’s ADV is a 0.10% fee plus a flat $25,000 annual fee for some fixed income funds with account assets exceeding $100 million. Fees are negotiable in some circumstances based on account size, services being rendered and the client’s overall relationship with the firm. Accounts that require customized solutions or do not meet account minimums may be charged higher fees.
Performance-based fees can apply to certain accounts and funds, including the Victory Funds. The industry standard performance fees on hedge funds is “2 and 20,” where the firm charges 2% of AUM and then 20% of any gain above a set benchmark, such as performance of the S&P 500. The percentages and the benchmark can differ based on the fund. Any performance fees levied will be outlined in the investment management agreement that a client signs.
Wrap fees or third-party fees can be charged if a client invests in a pooled asset vehicle, such as a mutual fund or ETF. These fees are to cover the costs of taxes, registration, custodianship, interest expense, insurance and others. Different funds’ fees and expenses vary: As an example, the VictoryShares US 500 Volatility Wtd ETF charges annual fund operating expenses of 0.35%, not including any brokerage commissions or other fees to financial intermediaries.
Victory Capital Management disciplinary disclosures
The SEC requires all businesses of registered investment advisors to disclose any civil, regulatory or criminal actions that occurred within the last 10 years that could impact a client’s evaluation of the business or management. Victory Capital Management does not have any disciplinary disclosures to report.
For further information, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.
Victory Capital Management onboarding process
- Request an initial meeting. You can contact a relationship manager in your area by phone or email.
- Speak with an advisor. Ask how their services could suit you and give your objectives, ideal investment strategies and any restrictions, such as liquidity requirements.
- Review recommendations. Consider the guidance and approve, alter or reject the recommended portfolio.
- Communicate with your advisor. Speak with your advisor on any direct brokerage orders and review the quarterly and annual documents Victory Capital provides.
Where Victory Capital Management is located
Victory Capital Management can serve investors in most states, with physical offices in the following locations:
The firm also has investment professionals in London, Hong Kong and Singapore.
Is Victory Capital Management right for you?
With 10 independent franchises, Victory Capital has a diverse investment portfolio and assorted strategies to choose from. It has locations throughout the country and internationally, its fees are within industry standards and the firm is widely registered throughout the country.
That being said, Victory Capital only offers investment management — it doesn’t have financial planning, accounting or legal services. In addition, its advisors are incentivised to recommend proprietary investment services.
Victory Capital Management is best for investors who need only portfolio management and are willing to look at recommendations with a critical eye. If you’d like to compare more options before deciding on a financial advisor, check out the MagnifyMoney financial advisor search tool.
The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.