Victory Capital February AUM Falls On Lower Equity Assets

Victory Capital Holdings (NASDAQ:VCTR) has announced assets under management (AUM) by its subsidiaries of $142.4 billion for February 2020. Results display a nearly 5% fall from $150.3 billion recorded as of Jan 31, 2020.

At the end of February, the company’s U.S. Mid Cap Equity AUM decreased 9.4% from January-end to $23.2 billion. Also, U.S. Small Cap Equity and Global / Non-U.S. Equity declined 9.6% and 7.4%, respectively. Further, U.S. Large Cap Equity AUM decreased 8.6% from January to $12.7 billion.

However, Fixed Income assets were $38.9 billion, almost stable sequentially. Victory Capital recorded $29.3 billion in Solutions, which were down 7% from $31.5 billion reported in January.

Other assets were down 11.8% to $179 million. Money Market Assets were $11.8 billion, up 1.7% on a sequential basis.

Sound positioning of Victory Capital’s integrated multi-boutique business model in a rapidly evolving industry and the effectiveness of its distribution platform might keep supporting its performance.

Shares of the company have lost 9% over the past six months compared with a 19.4% decline recorded by the industry.

Currently, Victory Capital carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Franklin Resources (NYSE:BEN) announced preliminary AUMby its subsidiaries of $656.5 billion for February 2020. Results displayed a 4.6% decrease from $688 billion recorded as of Jan 31, 2020. Net outflows and negative market returns led to the decline. Further, the reported figure dropped 8.1% year over year.

LPL Financial Holdings Inc.’s (NASDAQ:LPLA) total brokerage and advisory assets of $736.6 billion at the end of February 2020 declined 4% from the prior month but increased 9% year over year. Of the total brokerage and advisory assets, brokerage assets were $380.9 billion, while advisory assets totaled $355.7 billion.

Invesco’s (NYSE:IVZ) preliminary February-end AUM of $1,159.4 billion reflects a decline of 4.9% from the previous month. The decline was due to unfavorable market returns, net long-term outflows and net outflows in money market AUM, partly offset by net inflows in non-management fee earning AUM and reinvested distributions.

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