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Redefining asset management by building a client-focused integrated multi-boutique business.
At Victory Capital, our energy is focused on what matters most: helping our clients meet their investment goals.
To support that mission, we’ve built an innovative, integrated multi-boutique platform that aims to put investment excellence first and deliver real solutions in all market environments.
Since becoming an independent company in 2013, we have expanded by utilizing the specialized expertise of our nine investment franchises and through a series of strategic acquisitions. Today, we are a publicly traded company with $145.0 billion in assets under management ¹ and approximately 385 employees across 13 offices, in the U.S. and abroad. We’ve also built a rising ETF and solutions platform that we believe is unique in its approach to help advance client outcomes.
We’re proud of our progress and the industry is taking notice. In fact, Barron’s has named Victory Capital one of its 25 best fund families every year since 2014, and we have been recognized by eVestment over the last four years for our strong institutional brand awareness.
A key differentiator for us is that each of our franchises maintains its own investment process and independent voice. This is a deliberate decision that ensures investment autonomy and unique thinking among our investment franchises and empowers them to spend 100% of their time doing what they do best: managing money and serving clients. We surround those franchises with what we consider to be a best-in-class business and client service platform that is centralized, but not standardized.
Our model provides a diversified suite of products across asset classes, investment return streams, product types and business channels. When it comes to developing new products, we make those decisions based on client needs and the expertise of our investment professionals.
Our clients, which include institutions, retirement plans, financial advisors, individuals, and 529 college savings plan account holders, choose to work with us because we’re a specialist money manager that values independent decision-making, and we’re client-focused.
We take it seriously when our clients place their future in our hands. That’s why our current employees have personally invested over $100 million² in our investment products. Moreover, our employees are material owners of our business.
At Victory Capital we work hard, every day, to maintain the trust of our clients by pursuing investment excellence, delivering exceptional client service, and seeking better investment outcomes.
For more insights on our multi-boutique platform, I invite you to look around our website. Be sure to follow us on social media as well.
¹ Reflects AUM on a discretionary and non-discretionary basis. AUM figures are not adjusted for assets of proprietary funds in other funds or client accounts.
² Reflects amount invested by employees as of December 31, 2018.
Investing involves risk including loss of principal. Go to www.victorysharesliterature.com for ETF prospectuses or www.victoryfundliterature.com for mutual fund prospectuses. Mutual funds distributed by Victory Capital Advisers, Inc., member FINRA and SIPC, an affiliate of Victory Capital Management Inc. VictoryShares ETFs distributed by Foreside Fund Services, LLC. Victory Capital Management Inc. is the adviser to VictoryShares ETFs. Victory Capital is not affiliated with Foreside Fund Services, LLC.
Barron’s ranked Victory Capital 9th overall, 4th in the Mixed Asset category, and 5th in the Taxable Bond category out 57 fund families for the one-year period ended December 31, 2018; 10th overall and 2nd in the Mixed Asset category out 58 fund families for the one-year period ended December 31, 2017; 21st out of 61 firms for the one-year period ended December 31, 2016; 25th out of 67 firms for the one-year period ended December 31, 2015; and 15th out of 65 firms for the one-year period ended December 31, 2014.
How Barron’s Ranks the Fund Families
All mutual and exchange-traded funds are required to report their returns (to regulators as well as in advertising and marketing material) after fees are deducted, to better reflect what investors would actually experience. But our aim is to measure manager skill, independent of expenses beyond annual management fees. That’s why we calculate returns before any 12b-1 fees are deducted. Similarly, fund loads, or sales charges, aren’t included in our calculation of returns. Each fund’s performance is measured against all of the other funds in its Lipper category, with a percentile ranking of 100 being the highest and one the lowest. This result is then weighted by asset size, relative to the fund family’s other assets in its general classification. If a family’s biggest funds do well, that boosts its overall ranking; poor performance in its biggest funds hurts a firm’s ranking.
To be included in the ranking, a firm must have at least three funds in the general equity category, one world equity, one mixed equity (such as a balanced or target-date fund), two taxable bond funds, and one national tax-exempt bond fund.
We have historically excluded single-sector and country equity funds, but those are now factored into the rankings as general equity. We exclude all passive index funds, including pure index, enhanced index, and index-based, but include actively managed ETFs and so-called smart-beta ETFs, which are passively managed but created from active strategies. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results in 2018 were general equity, 34.8%; mixed asset, 21.3%; world equity, 17.1%; taxable bond, 22.4%; and tax-exempt bond, 4.4%.
The category weightings for the five-year results were general equity, 35.9%; mixed asset, 19.7%; world equity, 17.3%; taxable bond, 22.5%; and tax-exempt bond, 4.5%. For the 10-year list, they were general equity, 37.1%; mixed asset, 20%; world equity, 16.7%; taxable bond, 21.2%; and tax-exempt bond, 4.9%.
The scoring: Say a fund in the general U.S. equity category has $500 million in assets, accounting for half of the firm’s assets in that category, and its performance lands it in the 75th percentile for the category. The first calculation would be 75 times 0.5, which comes to 37.5. That score is then multiplied by 34.8%, general equity’s overall weighting in Lipper’s universe. So, it would be 37.5 times 0.348, which equals 13.05. Similar calculations are done for each fund in our study. Then the numbers are added for each category and overall. The shop with the highest total score wins. The same process is repeated to determine the five- and 10-year rankings.
Source: “Barron’s Fund Family Ranking: How the Best Active Managers Performed”, March 8, 2019.